Williams to Enter Marcellus Shale in Midstream Joint Venture With Atlas Pipeline Partners L.P.
Posted on: Wednesday, 1 April 2009, 08:00 CDT
- Joint Venture to Own Atlas' Appalachian Basin Gathering System
- Williams to Own 51% of Joint Venture, Operate Gathering System
The new venture will own Atlas Pipeline Partners' existing Appalachian Basin gathering system, which includes approximately 1,800 miles of intrastate natural gas gathering lines servicing 6,900 wells. The system now has an average throughput currently in excess of 100 million cubic feet per day (MMcfd). The Marcellus production growth of Atlas Energy Resources, LLC (NYSE: ATN), an Atlas Pipeline Partners affiliate, has driven a 30-percent increase in the gathering system's throughput in the past year.
Williams will contribute, subject to certain post-closing adjustments,
"This venture is an ideal midstream growth opportunity for Williams, providing a strategic entry point into one of the largest emerging natural gas plays in
"The Marcellus is a developing production area where a number of the largest natural gas producers, including Atlas, hold significant positions," Malcolm said. "Our long experience operating large-scale, reliable midstream assets in areas such as the Rocky Mountains and
The joint venture's anchor customer will be Atlas Energy Resources, which holds a significant acreage position in the Marcellus with more than 550,000 acres, including 274,000 acres in the high-potential southwest
In addition to the anchor-tenant relationship with Atlas Energy, the emerging potential throughout the Appalachian Basin will offer substantial opportunity to service other producers in the future with large scale, highly reliable systems that the joint venture intends to rapidly expand.
The existing southwest
Conclusion of the agreement is subject to Hart-Scott-Rodino and other appropriate regulatory approvals.
Citi acted as exclusive financial advisor to Williams in connection with this transaction.
About Williams (NYSE: WMB)
Williams, through its subsidiaries, finds, produces, gathers, processes and transports natural gas. Williams' operations are concentrated in the Pacific Northwest, Rocky Mountains, Gulf Coast, and Eastern Seaboard. More information is available at http://www.williams.com. Go to http://www.b2i.us/irpass.asp?BzID=630&to=ea&s=0 to join our e-mail list.
Contact: Jeff Pounds Williams (media relations) (918) 573-3332 Richard George Williams (investor relations) (918) 573-3679Portions of this document may constitute "forward-looking statements" as defined by federal law. Although the company believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. Any such statements are made in reliance on the "safe harbor" protections provided under the Private Securities Reform Act of 1995. Additional information about issues that could lead to material changes in performance is contained in the company's annual reports filed with the Securities and Exchange Commission.
SOURCE Williams
Source: PR Newswire
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