Williams Completes $3.8 Billion Marcellus/Utica Joint Venture
(P&GJ) – Williams said it has completed of the formation of a $3.8 billion joint venture with Canada Pension Plan Investment Board (CPPIB) that includes the Ohio Valley Midstream system in the western Marcellus and Utica East Ohio Midstream system in eastern Ohio.
The agreement includes a CPPIB investment of approximately $1.33 billion for a 35% ownership stake in this long-term partnership. Williams retains 65% ownership, operates the combined business, and will consolidate the financial results of the joint venture in Williams’ financial statements.
Williams will use most of the cash proceeds from CPPIB to offset the costs of Williams’ already-completed acquisition of the remaining 38% ownership interest in the Utica East Ohio system from Momentum Midstream.
Williams said it expects to gain cost efficiencies through common ownership of the combined Ohio Valley and Utica East systems, including reduced operating and maintenance expenses.
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