Williams closed on its acquisition of MountainWest Pipelines Holding Co., previously announced on Dec. 15, according to a press release on Feb. 14.
The company purchased the interstate natural gas pipeline systems from Southwest Gas Holdings Inc. for a total enterprise value of $1.5 billion - $1.07 billion cash, along with $0.43 billion of assumed debt.
"This acquisition enhances our position in the western U.S. and is complementary to our current footprint, providing us with infrastructure for natural gas deliveries across key demand markets," Williams president and CEO Alan Armstrong commented in the release.
Through the acquisition, Williams adds to its "infrastructure network and increases its business mix of FERC-regulated natural gas transmission and storage" with the addition of 2,000 miles of pipeline systems holding approximately 8 Bcf/d of transmission capacity spanning Utah, Wyoming and Colorado.
TD Securities and J.P. Morgan served as Williams' co-financial advisers, while Moelis & Co. and Lazard Freres & Co. LLC served as Southwest Gas Holdings' co-financial advisers. Davis Polk & Wardwell LLP provided representation to Williams, while Morrison & Foerster LLP represented Southwest.
"With the acquisition now complete, we look forward to welcoming MountainWest employees to Williams and bringing value to our shareholders by delivering safe and reliable services to both Williams and MountainWest customers as we increase the utilization of our existing large scale platforms," Armstrong continued.
Recommended Reading
Sinopec Brings West Sichuan Gas Field Onstream
2024-03-14 - The 100 Bcm sour gas onshore field, West Sichuan Gas Field, is expected to produce 2 Bcm per year.
Orange Basin Serves Up More Light Oil
2024-03-15 - Galp’s Mopane-2X exploration well offshore Namibia found a significant column of hydrocarbons, and the operator is assessing commerciality of the discovery.
Halliburton’s Low-key M&A Strategy Remains Unchanged
2024-04-23 - Halliburton CEO Jeff Miller says expected organic growth generates more shareholder value than following consolidation trends, such as chief rival SLB’s plans to buy ChampionX.
Chevron Hunts Upside for Oil Recovery, D&C Savings with Permian Pilots
2024-02-06 - New techniques and technologies being piloted by Chevron in the Permian Basin are improving drilling and completed cycle times. Executives at the California-based major hope to eventually improve overall resource recovery from its shale portfolio.
CNX, Appalachia Peers Defer Completions as NatGas Prices Languish
2024-04-25 - Henry Hub blues: CNX Resources and other Appalachia producers are slashing production and deferring well completions as natural gas spot prices hover near record lows.