This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Williams Partners, Williams To Pursue Agreement For Partnership To Acquire Williams’ 83.3% Interest In Geismar Olefins-Production Facility

Williams Partners (NYSE:WPZ) and Williams (NYSE:WMB) today announced their intent to pursue an agreement for Williams Partners to acquire Williams’ 83.3 percent interest and operatorship of the olefins-production facility in Geismar, La.

Williams Partners expects that the addition of olefins production to its business via this acquisition would be accretive to distributable cash flow, on a per-unit basis for the partnership’s unitholders. As contemplated, Williams Partners would fund the transaction largely with the issuance of limited-partner units to Williams.

The partnership expects the addition of olefins production to its business would bring more certainty to cash flows that today are exposed to the market for ethane, which is projected to experience periods of volatility as demand infrastructure lags new supplies from shale-gas production. Ethylene demand is expected to remain strong as ethylene is and is expected to be significantly less expensive than crude-oil based feedstock.

Williams owns 68 percent of Williams Partners, including the general-partner interest.

Located south of Baton Rouge, La., the Geismar facility is a light-end natural gas liquid (NGL) cracker with current volumes of 37,000 barrels per day (bpd) of ethane and 3,000 bpd of propane and annual production of 1.35 billion pounds of ethylene. With the benefit of a $350-$400 million expansion under way and scheduled for completion by late 2013, the facility’s annual ethylene production capacity will grow by 600 million pounds to 1.95 billion pounds.

“Adding the Geismar olefins-production facilities to Williams Partners’ portfolio would immediately reduce the partnership’s exposure to the ethane market by nearly 70 percent; and it would nearly eliminate it by 2014,” said Alan Armstrong, chief executive officer of the general partner of Williams Partners. “The business is highly desirable because it would create greater consistency in our earnings and cash flows. It provides strong support of our plans for continued growth in the cash distributions we pay unitholders.”

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs