The FCA assets acquired by Harvest comprise 3

Williams has closed the transaction to sell its Four Corners Area business (FCA) assets in New Mexico and Colorado, US, to Hilcorp Energy’s affiliate Harvest Midstream Company for a total consideration of $1.125bn.

Williams agreed to divest the assets in August when the company, along with KKR, also signed an agreement to acquire Discovery Denver-Julesburg (DJ) Services from TPG Growth for $1.17bn.

Located in the San Juan and Rio Arriba Counties in New Mexico and in La Plata County in Colorado, the FCA assets acquired by Harvest comprise 3,700 miles of pipeline, two gas processing plants, and one CO2 treating facility.

“Completing both the FCA transaction and the Discovery DJ Services acquisition follows our strategy to connect the best supplies to the best markets.”

Williams president and CEO Alan Armstrong said: “Completing both the FCA transaction and the Discovery DJ Services acquisition follows our strategy to connect the best supplies to the best markets.

“We have divested a business from a maturing basin at an attractive multiple and redeployed a portion of that capital to a higher-growth basin where our newly named ‘Rocky Mountain Midstream’ business presents strong future-growth opportunities, including sites with permitting underway for greater than one billion cubic feet per day of gas processing.”

Morgan Stanley acted as Williams’ lead financial adviser for the FCA transaction, while Davis Polk served as legal counsel.

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The cash proceeds from the sale will be used to fund the company’s growth capital and investment expenditures, including the Discovery DJ Services joint venture, which has now been renamed as Rocky Mountain Midstream.

Williams operates the DJ Basin assets with a 40% ownership stake in the JV. The company’s share of the total acquisition price stands at $469m.