Williams Partners announced that its subsidiary Utica Gas Services has successfully completed the previously announced acquisition of approximately 13% of additional equity interest in Utica East Ohio Midstream (UEO) from a subsidiary of EV Energy Partners, for approximately $357 million.
With this acquisition, Williams Partners has increased its equity interest in UEO from 49% to 62%. UEO is a substantial natural gas midstream business in the Utica Shale in eastern Ohio. Williams Partners, along with another equity owner, operates the infrastructure complex which consists of natural gas gathering and compression facilities, four processing plants with a total capacity of 800 MMcf/d, a 135,000 b/d natural gas liquid (NGL) fractionation facility, approximately 600,000 bbl of NGL storage capacity and other ancillary assets, including loading and terminal facilities that are operated by the partner. The gathering, processing, fractionation and storage assets are anchored by long-term, fee-based contracted commitments. These assets earn a fixed fee that escalates annually within a specified range.
Simultaneous with the Williams Partners transaction, the other member of UEO acquired approximately 8% of additional equity interest in UEO.
Image: natural gas processing facility/istock