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Tulsa’s Williams Partners Makes $200 million Swap of Gathering Systems

In a $200 million dollar deal with three other firms, Tulsa-based Williams Partners L.P. has increased its holdings in two gathering systems.

Williams wrapped up the separate transactions this week with Western Gas Partners, LP, Anadarko Petroleum Corporation and Energy Transfer Partners, L.P. of Dallas.

The deal includes $200 million paid to Williams Partners and an increase in Williams ownership in two Marcellus Shale systems in exchange for Williams Partners’ assignment of interests in certain non-operated Delaware Basin assets.

The transaction with Western Gas allowed Williams Partners to increase its ownership stake in the Marcellus Shale natural gas gathering systems already operated by Williams Partners. In exchange, Western Gas and its affiliates got Williams Partners’ 50 percent ownership stake in certain gathering systems in the Delaware Basin in west Texas….systems already operated by Western Gas.

Under the deal, Williams Partners got Western Gas’ 33.75 percent ownership stake in the Rome and Liberty natural gas gathering systems in northern Pennsylvania and a cash payment of $155 million. The wrapup of the agreement boosts Williams Partners’ ownership to 67.5 percent in the two systems.

A separate transaction with Anadarko and Energy Transfer resulted in Williams Partners selling each half of its 33 and a third percent interest in Ranch Westex JV LLC, owner of the Bone Springs gas processing plant in the Delaware Basin. The deal included $45 million cash offered by Williams.