Williams Energy Purchases Louisiana Crude Oil Facilities
Williams Energy Partners L.P. has purchased the crude oil storage and distribution assets of Geonet Gathering, Inc., for $20 million. The transaction became effective Oct. 31. The transaction is expected to be 7 cents to 9 cents per unit accretive to cash flow on an annualized basis and will be backed by a nine-year, 100 percent utilization agreement with Williams' energy marketing and trading unit.
Geonet is a privately-held Texas corporation that provides crude oil gathering, storage and distribution along the intracoastal waterway in southern Louisiana.
The partnership's purchase covers three pipelines in Louisiana's Terrebonne Parish that have a combined capacity to distribute up to 60,000 barrels per day of crude oil from a storage facility into pipeline interconnects. The acquisition also includes long-term lease agreements for 56,000 barrels of crude oil storage, two barge docks and a truck loading rack.
Phil Wright, president of Williams Energy Partners L.P. said, "This acquisition represents another example of how we can work with our general partner, Williams, to grow long-term, stable cash flows while minimizing the partnership's exposure to commodity prices."
Including the Geonet facilities, Williams Energy Partners has a total of five marine terminals. The partnership already has marine facilities in New Haven, Conn., Galena Park, Texas, Corpus Christi, Texas, and Marrero, La.