Williams (WMB) to Acquire Trace Midstream's Assets for $950M

Source: www.gulfoilandgas.com 3/18/2022, Location: North America

Tulsa, OK-based pipeline operator, The Williams Companies, Inc. WMB, stated that it signed an agreement to buy Trace Midstream’s Haynesville gathering and processing assets in a deal valued at $950 million. This transaction with Trace, which is a portfolio company of Quantum Energy Partners, is done to enlarge Williams’ footprint in Louisiana’s Haynesville Shale.

The company mentioned that this development increases its gathering capacity in Haynesville to more than 4 billion cubic feet a day (Bcf/d) from 1.8 Bcf/d. WMB anticipates the purchase to result in an investment value of roughly six times the 2023 EBITDA.

Per the agreement, Rockcliff Energy, Trace’s customer and Quantum’s associate, agreed to a long-term capacity assurance in support of Williams' Louisiana Energy Gateway (LEG) project. The project is designed to gather about 2 Bcf/d natural gas produced in Haynesville and link it to premium Transco markets, as well as liquefied natural gas export terminals, and industrial consumers situated on the Gulf Coast.

Williams further declared that it signed a Memorandum of Understanding with Quantum to create a joint venture that will allow Quantum to become an equity investor and partner in the LEG project. This partnership will combine Williams’ proficiency as a top developer and operator of a clean energy setup with Quantum’s skills as a prominent global supplier of private capital to the responsibly sourced energy and energy transition and decarbonization sectors.

Founded in 1908, The Williams Companies, Inc. is a premier energy infrastructure provider in North America. WMB’s core operations include finding, producing, gathering, processing and transporting natural gas and natural gas liquids. Boasting of a widespread pipeline system of more than 33,000 miles of pipelines, Williams is one of the largest domestic transporters of natural gas by volume. The company, whose peers include Pembina Pipeline PBA, Expro Group Holdings XPRO and Plains Group PAGP, has its facilities — gas wells, pipelines and midstream services — concentrated in the Northwest, Rocky Mountains, Gulf Coast and Eastern Seaboard.

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