Pipeline to refinery
Williams announced the sale of certain pipeline systems located in the Gulf Coast area to Easton Energy LLC for $177 million in cash. The sale closed on Nov. 30, 2018.
The 31-mile Texas Belle Pipeline, which transports natural gas liquids from Mont Belvieu to customers along the Houston Ship Channel is included in this transaction as are the Purity Pipeline System, certain assets in the Live Oak Pipeline System and additional idle pipelines located along the Gulf Coast.
Proceeds from the transaction will contribute to funding Williams’ extensive portfolio of attractive growth capital and investment opportunities. Williams’ previous 2019 guidance is not impacted by this transaction.
“We continue to assess and execute on opportunities to optimize our portfolio,” said Williams Senior Vice President for Corporate Strategic Development, Chad Zamarin. “We’re pleased to be able to leverage these assets, which were not core to our business strategy, into a source for growth capital and a driver for improved credit metrics.”
Post this transaction, Williams’ Atlantic-Gulf business segment still includes 506 miles of purity product pipelines.
Credit Suisse Securities (USA) LLC served as the lead financial adviser to Williams for this transaction.
