Williams to Buy Bigger Stake in UEO Midstream
TULSA, Okla. – Williams Partners LP has agreed to acquire an additional 21% in equity interest in Utica East Ohio Midstream for $575 million, the company announced today.
The system includes a cryogenic processing plant in Kensington in Columbiana County, and a fractionation plant in Scio in Harrison County.
Williams said it would acquire the equity from a subsidiary of EV Energy Partners, who along with M3 Midstream and Access Midstream, created the UEO Midstream system to gather and process gas and natural gas-liquids drilled from the Utica shale in eastern Ohio.
Williams acquired a 49% stake in UEO when it merged with Access Midstream in February 2015.
Once completed, Williams will own a 70% stake in the system, the company said.
“Acquiring these cash-generating assets supports our strategy to grow out natural-gas midstream position in key basins,” said Alan Armstrong, CEO of the general partner of Williams Partners. “The fixed-fee business will be accretive to Williams Partners beginning in 2015 and the partnership has attractive growth opportunities as the Utica develops.”
M3 Midstream, the other partner in UEO Midstream, has the right to acquire a portion of EV Energy Partners’ in UEO for the same price. Should M3 exercise that right, Williams would acquire 13% and M3 would acquire 8% of EV Energy’s share, the company said.
Pictured: Utica East Ohio Midstream’s hub in Harrison County, Ohio.
Copyright 2017 The Business Journal, Youngstown, Ohio.
Published by The Business Journal, Youngstown, Ohio.
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