Williams Announces Acquisition of Strategic Gulf Coast Natural Gas Storage Portfolio with Direct Access to LNG Export Facilities and Interstate Pipelines
27 Diciembre 2023 - 7:15AM
Business Wire
- Six natural gas storage facilities with total capacity of 115
Bcf across Louisiana and Mississippi
- Highly contracted business with diverse customer base including
investment-grade utilities, interstate pipelines, LNG terminals and
natural gas marketers
- Strategically located to take advantage of strong LNG and power
demand fundamentals that are forecasted to drive earnings
growth
Williams (NYSE: WMB) today announced that it has reached an
agreement to acquire a portfolio of natural gas storage assets from
an affiliate of Hartree Partners LP for $1.95 billion. The
transaction includes six underground natural gas storage facilities
located in Louisiana and Mississippi with total capacity of 115
billion cubic feet (Bcf), as well as 230 miles of gas transmission
pipeline and 30 pipeline interconnects to attractive markets,
including LNG markets, and connections to Transco, the nation’s
largest natural gas transmission pipeline. The acquisition price
represents an approximate 10x estimated 2024 EBITDA multiple.
“This premier natural gas storage platform on the Gulf Coast
fits squarely within our strategy to own and operate the best
assets connected to the best markets to serve growing demand driven
by LNG exports and power generation,” said Williams President and
Chief Executive Officer Alan Armstrong. “These assets better
position Williams’ natural gas storage operations to serve Gulf
Coast LNG demand and growing electrification loads from data
centers along the Transco corridor. Importantly, this storage will
also allow us to provide value to customers in markets with growing
renewables adoption as daily peaks for natural gas increases the
need for storage. Since 2010, U.S. demand for natural gas has grown
by 56% while gas storage capacity has only increased 12%. We expect
the increasing demand for high deliverability storage to drive
significant earnings growth across these assets.”
The six natural gas storage facilities include four salt domes
with combined capacity of 92 Bcf and two depleted reservoirs with
combined capacity of 23 Bcf. The facilities have injection capacity
of 5 Bcf/d and withdrawal capacity of 7.9 Bcf/d, among the highest
of any natural gas storage platform in the United States. Two of
the facilities, Pine Prairie and Southern Pines, are directly
connected with Transco and are well positioned for expansions.
The transaction is expected to close in January 2024, following
satisfaction of customary closing conditions, including the
expiration or termination of any applicable waiting period under
the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
Advisors
BofA Securities served as financial advisor to Williams; Davis
Polk & Wardwell LLP served as legal advisor to Williams.
Evercore served as lead financial advisor and Wells Fargo
Securities, LLC served as financial advisor to Hartree; Milbank LLP
served as legal advisor to Hartree.
About Williams
Williams (NYSE: WMB) is a trusted energy industry leader
committed to safely, reliably, and responsibly meeting growing
energy demand. We use our 33,000-mile pipeline infrastructure to
move a third of the nation’s natural gas to where it's needed most,
supplying the energy used to heat our homes, cook our food and
generate low-carbon electricity. For over a century, we’ve been
driven by a passion for doing things the right way. Today, our team
of problem solvers is leading the charge into the clean energy
future – by powering the global economy while delivering immediate
emissions reductions within our natural gas network and investing
in new energy technologies. Learn more at www.williams.com.
Portions of this document may constitute “forward-looking
statements” as defined by federal law. Although Williams 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 Williams’ annual
and quarterly reports filed with the SEC.
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MEDIA: media@williams.com (800) 945-8723
INVESTOR CONTACT: Danilo Juvane (918) 573-5075
Caroline Sardella (918) 230-9992
Williams Companies (NYSE:WMB)
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