WPX Energy files paperwork for IPO

TULSA, Okla. - Natural gas and oil explorer WPX Energy Inc. filed documents on April 29 detailing plans for an initial public offering (IPO) in the third quarter.

In February, Tulsa-based Williams Cos. announced it would split into separate companies - WPX for exploration and production - and the other to operate its natural gas pipelines. The move was aimed at boosting each segment's growth by allowing for more flexibility in making operational decisions.

WPX's business will center on developing natural gas and oil reserves at sites in Colorado, North Dakota, Pennsylvania and elsewhere. Williams has said that WPX will be one of the largest independent producers of natural gas in the U.S.

The company did not indicate how many shares the offering would include, nor how much they might cost. Total proceeds of $750 million were calculated solely to estimate the company's registration fee and are likely to change.

Williams Partners to acquire Williams' Piceance assets

TULSA, Okla. - Williams Partners L.P. (NYSE: WPZ) announced on Oct. 28 that it has agreed to acquire Williams' (NYSE: WMB) gathering and processing assets in Colorado's Piceance Basin for $782 million.

Williams Partners' total consideration for the assets will include $702 million in cash and $80 million in WPZ limited-partner and general-partner units.

The assets include the Parachute Plant Complex, three other treating facilities with a combined processing capacity of 1.2 billion cubic feet per day (Bcf/d), and a gathering system with approximately 150 miles of pipeline.

There are more than 3,300 wells connected to the gathering system, which includes pipelines ranging up to 30-inch trunk lines.

Williams Partners plans to fund the cash portion of the acquisition, which is expected to close next month, with its revolving credit facility and/or debt. The transaction is expected to be immediately accretive to distributable cash flow for Williams Partners, on a per-unit basis for the partnership's unitholders.

"This acquisition adds significant scale to our overall midstream business and makes Williams Partners the largest and most diverse midstream provider in the Piceance Basin," said Steve Malcolm, chief executive officer of the general partner of Williams Partners. "Furthermore, we have a long-term gathering agreement in place with Williams, which is the largest producer in the Piceance Basin.

"It also adds to the fee-based portion of our midstream business, as nearly 100 percent of the revenue associated with these assets is fee-based," Malcolm said.

Williams Partners expects the new assets will generate approximately $105 million in segment profit plus depletion, depreciation and amortization (DD&A) for its midstream business in 2011.

Williams gets FERC approval to expand natural gas pipeline to Southeast

TULSA, Okla. - Natural gas producer Williams Companies, Inc., on Sept. 9 revealed the Federal Energy Regulatory Commission's approval for the proposed expansion of its Transco natural gas pipeline by 308,500 dekatherms per day to serve markets in the southeastern United States.
The expansion will be conducted in two phases. Construction of the first phase will begin this fall, while the second is expected to get underway next summer.
In the first phase of pipeline expansion, the Tulsa -based Williams expects to increase capacity by 90,000 dekatherms per day and in the second phase by 218,500 dekatherms per day.
The company also expects the 85 North project to require construction of approximately 22 miles of 42-inch pipeline for the proposed expansion, in addition to a new 20,500 horsepower compressor facility in Anderson with modifications to existing compressor facilities. Project facilities are expected to cost nearly $248 million.
The Transco pipeline is a 10,500-mile pipeline system that transports natural gas to markets throughout the northeastern and southeastern United State. With the current expansion, the total system capacity is expected to increase nearly 8.5 billion cubic feet per day.