US natural gas company Williams has completed two acquisitions, bolstering its position in the Denver-Julesburg (DJ) Basin.
With a combined value of $1.27bn, the deals were announced early last month in Williams’ third quarter financial documents.
First is the acquisition of Cureton Front Range from investment companies Tailwater Capital and Ares Management.
Cureton’s assets include long-term contracts from blue-chip operators encompassing more than 200,000 dedicated acres, more than 418km of low and high-pressure pipelines, 109 million cubic feet per day of natural gas processing capacity and 64,000 horsepower of compression capacity.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
The second deal includes the acquisition of the remaining 50% stake in Rocky Mountain Midstream Holdings (RMM) from KKR.
With the deal, Williams now owns a 100% stake in RMM.
Williams president and CEO Alan Armstrong said: “We remain committed to executing on acquisitions that progress our overall strategy to maintain top positions in the basins we serve.
“The combination of the Cureton and RMM assets will deliver tangible operational synergies that include increased volumes on our existing processing facilities, as well as increased revenues on our downstream NGL [natural gas liquids] transportation, fractionation and storage assets.”
Williams used $355m from the company’s recent sale of the Bayou Ethane Pipeline system and $533m in net proceeds from the $627m Energy Transfer legal judgement to help fund the acquisition.
In February this year, Williams reached an agreement with Chevron USA to promote the development of natural gas in the Haynesville basin and the deepwater Gulf of Mexico.
During the same month, the natural gas processing and transportation company completed the acquisition of MountainWest Pipelines Holding in a deal valued at $1.5bn.
MountainWest’s operations include around 3,218km of interstate natural gas pipelines, mostly spread throughout Utah, Wyoming and Colorado.