Williams Partners, a midstream MLP, announced that it has signed an agreement to acquire in-service Alberta midstream assets from Williams, which owns 64% of the company, for a total consideration of $1.2 billion. The deal is expected to close on 28-Feb-2014. Williams Partners plans to fund the acquisition with the issuance to Williams of 25.6 million Class D payment-in-kind limited-partner units, $25 million in cash and an increase to the general partner's capital account to maintain Williams' 2% general-partner interest.
The acquired assets include:
- Oil sands off-gas processing plant near Fort McMurray
- Approximately 260 miles of NGL and olefin pipelines
- NGL/olefins fractionation facility and butylene/butane splitter facility at Redwater, as well as an in-progress expansion project
The assets are expected to provide distributable cash flow of $135 million-$160 million for the remaining portion of 2014.
Other Midstream expected/completed transactions:
- Chevron Mulls Options for US Midstream Business
- Rice to Acquire Marcellus Gathering Assets for $110 Million
- Antero Files for IPO of Midstream Arm
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.