Coming off a robust 3Q despite dramatically lower natural gas prices, Tulsa-based Williams also made a significant asset sell down South that allowed the pipeline giant to further flex its gathering and processing muscle out West.
Reese Energy Consulting today is following the latest from Williams, which sold its Bayou Ethane system during the quarter to an undisclosed buyer for $348 million. The 270-mile pipeline, which was put into service in 2014, extends from Mont Belvieu to a petrochemical facility in La. The proceeds from that deal allowed the company to make two, under-the-radar pick ups in Colo., where Williams operates extensive natural gas and NGL assets in the D.J. Basin and the Piceance.
In a 50-50 joint venture with KKR in 2018, Williams acquired Discovery Midstream—renamed Rocky Mountain Midstream—for $1.2 billion. Covering more than 250,000 dedicated acres in the DJ, the natural gas gathering system included two processing plants with a combined 260 MMCFD of capacity. Williams has now purchased the other 50% of RMM for $710 million.
The company also announced its $560 million purchase of Denver-based Cureton Midstream (a REC client and friend), which operates 260 miles of gathering pipe across 225,000 dedicated acres also in the DJ, along with two processing plants and a combined capacity of 103 MMCFD.
Williams in 3Q reported $654 million in net income and adjusted EBITDA of $1.65 billion.