This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Williams Agrees To Invest Up To $2.4 Billion In Access Midstream Partners GP And LP; Expands Williams’ Scale, Basin Diversity, Fee-Based Earnings, Growth Opportunities; Affirms Guidance For 20% Annual Dividend Growth

Stocks in this article: WMB

Williams (NYSE:WMB) today announced it has agreed to acquire a 50 percent interest in privately held Access GP and approximately 25 percent of the limited partner units of Access Midstream Partners, LP (NYSE: ACMP) for approximately $2.4 billion. ACMP announced plans today to acquire most of Chesapeake Energy Corp.’s (NYSE:CHK) remaining natural gas and crude-oil gathering assets for $2.16 billion.

After closing, Williams and GIP each will own a 50 percent interest in Access GP, which holds a 2 percent general partner interest and incentive distribution rights. Williams and GIP have committed to invest up to $1.16 billion in newly issued ACMP limited partner units and will own approximately 25 percent and 43 percent, respectively, of the outstanding ACMP LP units at the time of the transaction closing (depending on certain capital-raising activities of ACMP).

This investment – together with ACMP’s planned acquisition of Chesapeake's remaining natural gas and crude-oil gathering assets – significantly expands Williams’ economic opportunities in 10 major shale and unconventional producing areas, including the Marcellus, Utica, Eagle Ford, Haynesville, Barnett, Permian, Granite Wash, Colony Wash, Mississippi Lime and Niobrara.

ACMP is an Oklahoma City-based, growth-oriented midstream natural gas services provider that, following its acquisition of Chesapeake’s remaining gathering business, will have an average throughput of approximately 3.9 billion cubic feet per day and more than 5,800 miles of gathering pipelines and 8.7 million acres under long-term dedication.

Transaction Detail

Williams has agreed to acquire GIP’s Fund I holdings in ACMP. Those holdings include GIP Fund I’s 50 percent interest in Access GP, which owns the 2 percent general partner interest and incentive distribution rights in ACMP, and approximately 34.5 million ACMP subordinated limited partner units for $1.823 billion.

Additionally, Williams and GIP’s Fund II each committed to acquire between approximately $350 million and $580 million (depending on certain capital-raising activities of ACMP) of Class B payment-in-kind (PIK) units, Class C subordinated units and potentially common units directly from ACMP to support ACMP’s acquisition of the Chesapeake assets. The Class B and C units are convertible at the option of the holder or ACMP into common units on the day after the record date for the distribution to common units for the fiscal quarters ending Dec. 31, 2014, and Dec. 31, 2013, respectively.

1 of 5

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,687.28 +330.41 1.90%
S&P 500 2,051.04 +38.15 1.90%
NASDAQ 4,732.5130 +88.2010 1.90%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs