Williams Partners Set to Acquire Stake in Four Corners

Williams Partners has agreed to acquire a 25.1 percent interest in parent company Williams' Four Corners subsidiary, which at closing will own gathering, processing, and treating assets in the Four Corners area in the U.S. Southwest.

Williams Partners plans to finance its payment of the $360-million cash purchase price through a combination of debt and equity. The transaction, subject to standard closing conditions, is expected to close in the second quarter.

"Situated in the prolific San Juan Basin, the Four Corners system is one of the largest integrated natural gas gathering systems in the country," said Alan Armstrong, CEO of Williams Part ers. "This planned acquisition of these proven assets, which consistently have generated significant free cash flow for Williams' Midstream business unit, will grow and diversify the partnership's sources of cash flow."

The Four Corners system assets include:

  • a 3,500-mile natural gas gathering system in the San Juan Basin in New Mexico and Colorado with a 2 billion cubic feet per day capacity
  • the Ignacio natural gas processing plant in Colorado and the Kutz and Lybrook natural gas processing plants in New Mexico, which have a combined processing capacity of 760 million cubic feet per day
  • the Milagro and Esperanza natural gas treating plants in New Mexico, which are designed to remove carbon dioxide from up to 750 million cubic feet of natural gas per day.

"Contributing assets to our master limited partnership in this way helps drive value-creating growth at Williams," said Steve Malcolm, Williams' chairman, president, and CEO. "A transaction like this provides capital to Williams for reinvestment in attractive growth areas, such as the deepwater Gulf of Mexico and Rocky Mountain region."