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Williams MLP Buys Alberta Midstream Assets For $1.2 Billion

|Includes:Williams Partners L.P. (WPZ)

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:

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Stocks: WPZ