Williams, Williams Partners L.P., and Access Midstream Partners, L.P. announced that Williams Partners and Access Midstream Partners have reached and entered into a merger agreement; total transaction value is approximately $50 billion. Williams owns controlling interests in the two master limited partnerships (MLP). The merged MLP will feature large-scale positions across three key components of the midstream sector, including natural gas pipelines, gathering and processing and natural gas liquids and petrochemical services.
Natural Gas Pipelines. Transco, Northwest and Gulfstream represent the US’ premier interstate pipeline network. Transco is the nation’s largest and fastest-growing pipeline system.
Gathering and Processing. Large-scale positions in growing natural-gas supply areas in major shale and unconventional producing areas, including the Marcellus, Utica, Piceance, Four Corners, Wyoming, Eagle Ford, Haynesville, Barnett, Mid-continent and Niobrara. Additionally, the merged MLP’s business would include oil and natural gas gathering services in the deepwater Gulf of Mexico.
Natural Gas Liquids and Petrochemical Services. Unique downstream presence on the Gulf Coast and in western Canada provides differentiated long-term growth.
Upon completion of the merger, expected to occur by early 2015, the principals anticipate the merged MLP to be one of the largest and fastest growing MLPs with expected 2015 adjusted EBITDA of approximately $5 billion, industry-leading 10% to 12% annual limited partner unit distribution growth rate through the 2017 guidance period and with expected strong growth beyond.
This is another big step toward our goal of becoming the leading natural gas infrastructure provider in North America. The combination of Access Midstream Partners’ intense focus on natural gas gathering with Williams Partners’ broader service offerings along the value chain is yielding even more robust growth opportunities.—Williams’ CEO Alan Armstrong
Williams, headquartered in Tulsa, Okla., is one of the leading energy infrastructure companies in North America. Williams Partners L.P. owns and operates both on-shore and offshore assets of approximately 15,000 miles of natural gas gathering and transmission pipelines, 1,800 miles of NGL transportation pipelines, an additional 11,000 miles of oil and gas gathering pipelines and numerous other energy infrastructure assets. The partnership’s operated facilities have daily gas gathering capacity of approximately 11 billion cubic feet, processing capacity of approximately 7 billion cubic feet, NGL production of more than 400,000 barrels per day and domestic olefins production capacity of 1.35 billion pounds of ethylene and 90 million pounds of propylene per year.
Access Midstream Partners, L.P. owns and operates natural gas midstream assets across nine states, with an average net throughput of approximately 3.9 billion cubic feet per day and more than 6,495 miles of natural gas gathering pipelines.