Once the deal closes, which is expected by July 15, Williams Partners of Tulsa will hold a 70% interest in the company. Utica East is a natural gas midstream business in eastern Ohio’s Utica shale region. The deal is expected to add to Williams’ earnings this year.
“Acquiring these cash-generating assets supports our strategy to grow our natural gas midstream position in key basins,” Williams Partners Chief Executive Alan Armstrong said, adding the assets being acquired have “attractive growth opportunities.”
Williams Partners, which waived $43 million of general partner incentive distribution rights from 2015-17, said it will finance the transaction through equity and debt, including revolver borrowings.