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
Exxon Mobil, Chevron See Profits Fall in 1Q Earnings
2024-04-26 - Chevron and Exxon Mobil are feeling the pinch of weak energy prices, particularly natural gas, and fuels margins that have cooled in the last year.
Marathon Oil Declares 1Q Dividend
2024-04-26 - Marathon Oil’s first quarter 2024 dividend is payable on June 10.
Talos Energy Expands Leadership Team After $1.29B QuarterNorth Deal
2024-04-25 - Talos Energy President and CEO Tim Duncan said the company has expanded its leadership team as the company integrates its QuarterNorth Energy acquisition.
Energy Transfer Ups Quarterly Cash Distribution
2024-04-25 - Energy Transfer will increase its dividend by about 3%.
From Restructuring to Reinvention, Weatherford Upbeat on Upcycle
2024-02-11 - Weatherford CEO Girish Saligram charts course for growth as the company looks to enter the third year of what appears to be a long upcycle.