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Williams Partners, EV Energy Partners deal

Williams Partners to own 70% equity interest in Utica East Ohio Midstream.
Williams Partners, EV Energy Partners deal

Williams Partners is buying 21% equity interest in Utica East Ohio Midstream (UEO) from an unnamed subsidiary of EV Energy Partners for approximately $575 million.

Once complete, Williams will own a 70% equity interest in UEO, a natural gas midstream business in the Utica Shale in eastern Ohio. The gathering, processing, fractionation and storage assets are anchored by long-term, fee-based contracted commitments.

The unnamed member of UEO has the right to acquire a portion of EV Energy Partners’ interests in UEO for the same price. If the other member exercises this right, Williams Partners would acquire an approximate 13% interest and the other member would acquire approximately 8% interest.

In connection with the acquisition of the additional 21% interest, Williams has agreed to waive approximately $43 million of general partner incentive distribution rights for the three-year period 2015 through 2017. Williams Partners expects to finance the acquisition with a combination of equity and debt.

The transaction is expected to close by the mid-July, 2015.

 

(image by Williams Partners.)

 

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