Williams Partners L.P. Completes Overland Pass Transaction
TULSA, Okla., Sept. 9 /PRNewswire-FirstCall/ -- Williams Partners L.P. (NYSE: WPZ) announced today it has completed the transaction with ONEOK Partners, L.P. (NYSE: OKS) that increases its ownership of Overland Pass Pipeline Company, LLC to 50 percent.
The option price, including closing adjustments, was approximately $424 million. Williams Partners funded the transaction with a combination of cash on hand and borrowings from its existing credit facility. Williams Partners announced the transaction on July 22.
Overland Pass Pipeline Company is a joint venture that ONEOK Partners and Williams (NYSE: WMB) established in May 2006. The Overland Pass Pipeline includes a 760-mile NGL pipeline from Opal, Wyo., to the Mid-Continent NGL market center in Conway, Kan., along with 150- and 125-mile extensions into the Piceance and Denver-Julesberg Basins in Colorado, respectively.
Williams Partners' equity NGL volumes from its two Wyoming plants and its Willow Creek facility in Colorado are dedicated for transport on Overland Pass Pipeline under a long-term shipping agreement.
Williams Partners has notified ONEOK Partners that it intends to operate Overland Pass Pipeline Company, given its 50-percent ownership interest. The partnership plans to work closely with ONEOK Partners to enable a smooth transition of the operations. The two partnerships will work together to facilitate expansion opportunities due to increased demand for service on Overland Pass Pipeline.
About Williams Partners L.P. (NYSE: WPZ)
Williams Partners L.P. is a leading diversified master limited partnership focused on natural gas transportation; gathering, treating, and processing; storage; natural gas liquid (NGL) fractionation; and oil transportation. The partnership owns interests in three major interstate natural gas pipelines that, combined, deliver 12 percent of the natural gas consumed in the United States. The partnership's gathering and processing assets include large-scale operations in the U.S. Rocky Mountains and both onshore and offshore along the Gulf of Mexico. Williams (NYSE: WMB) owns approximately 80 percent of Williams Partners, including the general-partner interest. More information is available at www.williamslp.com. Go to http://www.b2i.us/irpass.asp?BzID=1296&to=ea&s=0 or http://www.b2i.us/irpass.asp?BzID=630&to=ea&s=0 to join our email list.
Portions of this document may constitute "forward-looking statements" as defined by federal law. Although the partnership believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. Any such statements are made in reliance on the "safe harbor" protections provided under the Private Securities Reform Act of 1995. Additional information about issues that could lead to material changes in performance is contained in the partnership's annual reports filed with the Securities and Exchange Commission.
MEDIA CONTACT: |
INVESTOR CONTACT: |
|
SOURCE Williams Partners L.P.
Share this article