Williams Partners L.P. to Increase Ownership in Overland Pass

TULSA, Okla., July 22 /PRNewswire-FirstCall/ -- Williams Partners L.P. (NYSE: WPZ) announced today that it has notified ONEOK Partners, L.P. (NYSE: OKS) that it is exercising its option to increase its ownership of Overland Pass Pipeline Company, LLC to 50 percent.  

Williams Partners currently owns 1 percent of the joint venture, while ONEOK Partners owns the remaining 99 percent.

The option price is estimated to be approximately $425 million, an amount equal to 50 percent of the total project cost, less depreciation to-date.  Subject to regulatory approvals, Williams Partners expects to close the transaction in the third quarter with an effective date of June 30, 2010. Williams Partners plans to fund the purchase price with a combination of cash on hand and borrowings from its existing credit facility.

Overland Pass Pipeline Company is a joint venture that ONEOK Partners and Williams (NYSE: WMB)  established in May 2006 to build the Overland Pass Pipeline, a 760-mile natural gas liquids (NGL) pipeline from Opal, Wyo., to the Mid-Continent NGL market center in Conway, Kan.  The Mid-Continent market center in Conway is one of the nation's primary NGL distribution and storage hubs.  

The pipeline, which went into service in November 2008, can transport approximately 140,000 barrels per day with the ability to expand capacity to 255,000 barrels per day with additional pump facilities.

"This transaction provides an ideal strategic growth opportunity for Williams Partners," said Steve Malcolm, chief executive officer of the general partner of Williams Partners.  "Overland Pass already has significant capacity to move NGLs from key producing areas in the Rockies and is also positioned for further expansion to provide even more organic growth in the future."

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.  As long as Williams Partners owns at least 50 percent of Overland Pass Pipeline Company, it will have the option to become the operator by providing ONEOK Partners at least 30 days notice.

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 84 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=1296&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 company 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 company's annual reports filed with the Securities and Exchange Commission.

SOURCE Williams Partners L.P.

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