2010-11-05-2010-10-28-2010-11-23

Acquired Colorado Piceance Basin gathering and processing assets, including Parachute plant complex, three treating facilities with a combined processing capacity of 1.2 Bcf/d and a gathering system with approximately 150 miles of pipeline.

Williams Partners LP, Tulsa, Okla., (NYSE: WPZ) has closed its purchase of the Colorado Piceance Basin gathering and processing assets of The Williams Cos. Inc., Tulsa, Okla., (NYSE: WMB) for $782 million.

Williams Partners paid $702 million in cash and $80 million in limited-partner and general-partner units.

The assets include the Parachute plant complex, three other treating facilities with a combined processing capacity of 1.2 billion cubic feet per day and a gathering system with approximately 150 miles of pipeline. More than 3,300 wells are connected to the gathering system, which includes pipelines ranging up to 30-inch trunk lines.

Williams Partners funded the cash portion of the acquisition with its revolving credit facility and debt.

Williams Partners general partner chief executive Steve Malcolm says, "This acquisition adds significant scale to our overall midstream business and makes Williams Partners the largest and most diverse midstream provider in the Piceance Basin. Furthermore, we have a long-term gathering agreement in place with Williams, which is the largest producer in the Piceance Basin."

He says the purchase also adds to the fee-based portion of Williams Partners' midstream business, as nearly 100% of revenue associated with these assets is fee-based.

Williams Partners expects the new assets to generate approximately $105 million in segment profit plus depletion, depreciation and amortization for its midstream business in 2011.