Williams to acquire MountainWest natural gas transmission and storage business
Published by Sara Simper,
Editorial Assistant
World Pipelines,
Williams has announced that it has reached an agreement to acquire MountainWest Pipelines Holding Company from Southwest Gas Holdings, Inc., in a transaction including US$1.07 billion of cash and US$0.43 billion of assumed debt, for an enterprise value of US$1.5 billion. MountainWest comprises roughly 2000 miles of interstate natural gas pipeline systems primarily located across Utah, Wyoming and Colorado, totalling approximately 8 billion ft3/d of transmission capacity. MountainWest also holds 56 billion ft3 of total storage capacity, including the Clay Basin underground storage reservoir, providing valuable service to western markets. The acquisition price represents an approximate 8x estimated 2023 EBITDA multiple.
“Our natural gas focused strategy is anchored in having the right assets in the right places to serve our nation’s growing demand for clean, affordable, and abundant natural gas. MountainWest is complementary to our current footprint, providing us with infrastructure for natural gas deliveries across key demand markets, including into Salt Lake City,” said Alan Armstrong, Williams President and CEO. “We also see this acquisition as an opportunity to bring value to both Williams and MountainWest customers as we integrate business processes and systems, allowing us to potentially offer new flow paths for next generation natural gas that could create additional market optionality for our shippers.”
The transaction is expected to close in 2023, following satisfaction of customary closing conditions, including regulatory approvals and the expiration or termination of any applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
Read the article online at: https://www.worldpipelines.com/business-news/31122022/williams-to-acquire-mountainwest-natural-gas-transmission-and-storage-business/
You might also like
DORIS, ROSEN and SPIECAPAG announce the Pipeline Transition Alliance
DORIS, ROSEN and SPIECAPAG announce the Pipeline Transition Alliance, providing full services capability to re-purpose natural gas infrastructure to hydrogen service.