Williams-Crestwood to restructure Powder River gas deal with Chesapeake

|About: Williams Partners L.P. (WPZ)|By:, SA News Editor

Joint venture partners Williams Partners (NYSE:WPZ) and Crestwood Equity Partners (NYSE:CEQP) announce an agreement with Chesapeake Energy (NYSE:CHK) to restructure natural gas gathering and processing services in Wyoming’s Powder River Basin.

The companies say the restructured services will replace the current cost-of-service arrangement and improve economics to support a ramp-up in near-term development and production activity and incentivize long-term development across an expanded area of dedication in the region.

The restructured terms of service are expected to include minimum annual revenue guarantees that support the transition to a new fixed-fee structure over the next 5-7 years.