Williams Closes Acquisition of Major Natural Gas Storage Portfolio
03 Enero 2024 - 3:15PM
Business Wire
Williams (NYSE: WMB) today announced that it has closed its
acquisition of 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.
“Demand for natural gas has greatly outpaced natural gas storage
capacity since 2010, demonstrating the intrinsic value this
well-connected and strategically located Gulf Coast storage
portfolio brings to our transportation network as we serve growing
demand driven by LNG exports and power generation,” said Williams
President and Chief Executive Officer Alan Armstrong. “With the
acquisition now complete, we look forward to welcoming the Hartree
team to Williams and integrating this premier storage platform into
our suite of natural gas transportation and marketing services,
while delivering additional value to our shareholders.”
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.
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 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
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