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$1B Deal: Williams Buys Out Houston-based Midstream in Haynesville Basin

Earlier this month, Williams announced that it has reached an agreement to purchase the gathering and processing assets of Trace Midstream, a portfolio company of Quantum Energy Partners, in a $950 million deal.

By adding the Trace system to Williams' existing footprint, the company gains expanded capacity in one of the nation's largest growth basins, bringing its Haynesville gathering capacity to over 4 Bcf/d — more than 200% growth. Following this merge, It is anticipated that Williams will invest at around 6 times 2023 EBITDA, with minimal expansion capital required and significant growth forecasted, thus helping the company's credit metrics to stay afloat.

This deal highlights Williams’s commitment to being the leader in providing infrastructure that safely delivers natural gas products to reliably fuel the clean energy economy.

The agreement also includes a long-term capacity commitment from Trace customer and Quantum affiliate Rockcliff Energy to support Williams' Louisiana Energy Gateway project (LEG). By connecting to premium Transco markets, the LEG project will gather the responsibly sourced natural gas produced in Haynesville. It will deliver it to industrial and LNG export markets along the Texas and Louisiana Gulf Coast

The LEG project was further strengthened with the signing of a Memorandum of Understanding between Williams and Quantum to establish a joint venture that will enable Quantum to become a partner and equity investor in the project. Williams will bring its expertise as a leading developer and operator of clean energy infrastructure together with Quantum's capacity as a global provider of private capital for responsible sourcing of energy and the transition to a low carbon economy.

For Williams, the opportunity to support Rockcliff's success and enable them to access growing markets represents a unique way to demonstrate how natural gas plays an essential role in reducing emissions, lowering costs, and providing reliable, secure energy to the US and around the world.

This partnership is also welcomed by Quantum, since working with exceptional entrepreneurs such as those from Trace and Rockcliff, who developed a strategic infrastructure platform with high ESG standards, has been at the foundation of Quantum’s success. This makes the Williams-Haynesville LEG partnership a crucial link between responsibly sourced Haynesville natural gas and the Gulf Coast's premium LNG markets.

If all regulatory approvals are received, the transaction should close by the end of the second quarter. RBC Capital Markets served as lead financial advisor to Williams; Citi served as lead financial advisor to Trace. Williams was represented by Davis Polk & Wardwell LLP; Trace was represented by Vinson & Elkins LLP.

Naturally, such large movements in the market are difficult to visualize without the appropriate resources, but for this, you can always contact us. If you are interested in finding out more about possible pipeline routes as well as the current level of different basins development, please, reach out to our Houston sales office or SCHEDULE A DEMO to learn how Rextag can help you leverage energy data for your business.

Tel. +1 713-203-3128

Email: treitmeier@hartenergy.com

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$690 Million Deal Moves Ahead: Crescent Energy to Complete Purchase of EP Energy's Uinta Assets

Crescent Energy closed the acquisition of Uinta Basin assets in Utah that were previously owned by EP Energy for $690 million, a few hundred million dollars below the original price. The accretive deal increases Crescent's Rockies position and adds significant cash flow and a portfolio of high-quality oil-weighted undeveloped sites. In addition to its acquired Uinta assets, Crescent's pro forma year-end 2021 provided reserves totaled 598 million boe, of which 83% was developed, 55% was liquid, and its provided PV-10 was $6.2 billion.

In light of the conflict in Ukraine, buyout firms are currently scurrying to make cash from the U.S. crudeprices reaching their highest level since 2008. And one of the largest privately-owned US-based oilproducers may be up for sale. EnCap Investments looks to sell its portfolio company Ameredev II for over $4 billion including debt. It’s important to note, however, that both EnCap and Ameredev II alike are staying tight-lipped on the matter.

In order to sell its part of the sprawling Eagle Ford Shale acreage, Chesapeake Energy Corp. on January 18 concluded an agreement to trade its Brazos Valley region assets to WildFire Energy I LLC for $1.425 billion.

On January 6, Phillips 66 announced that it plans to acquire more than 43% of DCP Midstream LP for $3.8 billion, expanding the business in the oil & gas business.

On January 5 Northern Oil & Gas (NOG) concluded a deal to acquire working interests in Midland-Petro D.C. Partners LLC (MPDC)'s Mascot Project in the Midland Basin, according to a January 9 press release. Firstly estimated at $330 million in cash, the deal was signed with an additional 3.25% working interest added to the 36.7% agreed upon when the transaction was announced on October 19. NOG paid $29 million more for the additional interests, which now totalled 39.958%. Finally, the deal closed for $320 million in cash and $43 million in debt at signing in October with the finance of Minnetonka, Minn.-based NOG with cash on hand, operating free cash flow, and assistance from its revolving credit facility.

2023 blog posts