Thursday, April 2, 2009

Williams in Marcellus Shale joint venture with Atlas Pipeline Partners

TULSA, Okla. - Williams announced on April 1 that it will enter the Marcellus Shale through a newly formed midstream joint venture with Atlas Pipeline Partners L.P.
The new venture will own Atlas Pipeline Partners' existing Appalachian Basin gathering system, which includes approximately 1,800 miles of intrastate natural gas gathering lines servicing 6,900 wells. The system has an average throughput currently in excess of 100 million cubic feet per day (MMcfd). The Marcellus production growth of Atlas Energy Resources, LLC, an Atlas Pipeline Partners affiliate, has driven a 30-percent increase in the gathering system's throughput in the past year.
Williams will contribute, subject to certain post-closing adjustments, $102 million and issue a $25.5 million note payable to a newly formed joint venture, Laurel Mountain Midstream LLC, in exchange for a 51-percent ownership interest in the joint venture. In addition to its ownership interest, Williams will operate the gathering system.

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