Williams Partners LP will increase its ownership in the Rome and Liberty gathering systems, which it operates, in exchange for Western Gas Partners LP and certain affiliates receiving its 50% stake in Delaware Basin JV Gathering LLC, which Western Gas operates. The companies entered an agreement.
Williams Partners’ interest in Rome and Liberty will increase to 67.5%, subject to joint venture partners’ rights. The Bradford Supply Hub in the Northeast gathering and processing segment is included. Rome and Liberty’s current throughput is about 1.6 billion cubic feet per day.
Williams Partners will also receive $155 million in cash.
Additionally, Williams Partners will sell its 33.33% interest in the Ranch Westex gas processing plant in the Delaware Basin for $45 million in cash, through a separate agreement entered into with Anadarko Petroleum Corp. (NYSE: APC).
Alan Armstrong, CEO of Williams Partners’ general partner, said the Bradford Supply Hub is the company’s largest Marcellus gathering franchise. The aggregate cash consideration that is part of both transactions will support general partnership purposes including growth capital, Williams Partners said.
The two transactions are expected to close in late first-quarter or early second-quarter 2017, subject to closing conditions including expiration of the waiting period under the HSR Act.
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