Williams increases DJ basin gas gathering, processing assets through closed deals
Williams, Tulsa, Okla., closed two transactions that now position the company as the third largest gatherer in the Denver-Julesburg (DJ) basin, the company said in a release Nov. 30. The acquisitions have a combined value of $1.27 billion.
In one transaction, Williams acquired Cureton Front Range LLC, whose assets include gas gathering pipelines and two processing plants serving producers across 225,500 dedicated acres.
In a separate deal, Williams purchased KKR’s 50% ownership interest in Rocky Mountain Midstream Holdings LLC (RMM). Williams now holds 100% ownership of RMM.
“We remain committed to executing on acquisitions that progress our overall strategy to maintain top positions in the basins we serve,” said Alan Armstrong, president and chief executive officer of Williams. “The combination of the Cureton and RMM assets will deliver tangible operational synergies that include increased volumes on our existing processing facilities, as well as increased revenues on our downstream NGL transportation, fractionation and storage assets.”
The deals were first announced in third-quarter 2023 earnings materials (OGJ Online, Nov. 2, 2023).
Proceeds of $355 million from Williams’ recent sale of its Bayou Ethane Pipeline system along with $533 million in net proceeds now received from the Energy Transfer legal judgment of $627 million (which included legal fees owed to others) partially funded the transactions, the company said.
