An email has been sent to your address with instructions for changing your password.
There is no user registered with this email.
Sign Up
To create a free account, please fill out the form below.
Thank you for signing up!
A confirmation email has been sent to your email address. Please check your email and follow the instructions in the message to complete the registration process. If you do not receive the email, please check your spam folder or contact us for assistance.
Welcome to our platform!
Oops!
Something went wrong while trying to create your new account. Please try again and if the problem persist, Email Us to receive support.
Williams (NYSE: WMB) has acquired NorTex Midstream for $423 million, closing on August 31, 2022. This acquisition includes 80 miles of natural gas transmission pipelines and 36 Bcf of natural gas storage in the Dallas-Fort Worth market. These assets support approximately 4 GW of power generation, essential for Texas's energy reliability. The acquisition enhances Williams' strategy in the natural gas pipeline sector and positions it to meet increasing Gulf Coast LNG demand.
Positive
Acquisition of NorTex Midstream for $423 million strengthens Williams' natural gas pipeline and storage portfolio.
The assets support approximately 4 GW of gas-fired power generation, vital for Texas energy reliability.
Fully contracted natural gas pipeline transmission and storage assets with strong market fundamentals
Includes 80 miles of natural gas transmission pipelines and 36 Bcf of natural gas storage
Critical infrastructure for Texas power grid reliability with gas storage and supply for 4 gigawatts (GW) of power generation
Well positioned to store Permian supply directed towards growing Gulf Coast LNG demand
Enhances Williams’ core natural gas pipeline and storage strategy
TULSA, Okla.--(BUSINESS WIRE)--
Williams (NYSE: WMB) today announced that it has acquired NorTex Midstream, a fully contracted natural gas pipeline and storage asset located in north Texas, from an affiliate of Tailwater Capital. The $423 million transaction, which closed on August 31, 2022, includes approximately 80 miles of natural gas transmission pipelines and 36 Bcf of natural gas storage in the Dallas-Fort Worth market. The NorTex assets provide critical service to approximately 4 GW of gas fired power generation, enabling Texas energy providers to successfully meet peak demands. In addition to providing critical gas supply to power generation in north Texas, these assets also position Williams to provide storage services for Permian gas directed toward growing Gulf Coast LNG demand.
“Serving one the fastest growing population centers in the United States, this irreplaceable natural gas infrastructure is critical to bridging the gap between limited supplies and periods of peak demand, while supporting the viability of intermittent renewables like solar and wind,” said Williams President and CEO Alan Armstrong. “During the extreme cold of Winter Storm Uri, the NorTex pipeline and storage facilities reliably provided gas to residential customers and electric power plants throughout the entire storm. We see significant upside to integrating these assets, especially when combined with our existing transmission and storage capabilities.”
Advisors
BofA Securities acted as exclusive financial advisor to Williams, and Davis Polk and Wardwell LLP served as legal counsel to Williams. Wells Fargo Securities, LLC acted as exclusive financial advisor to Tailwater and NorTex, and Kirkland & Ellis served as legal counsel to Tailwater and NorTex.
About Williams
As the world demands reliable, low-cost, low-carbon energy, Williams (NYSE: WMB) will be there with the best transport, storage and delivery solutions to reliably fuel the clean energy economy. Headquartered in Tulsa, Oklahoma, Williams is an industry-leading, investment grade C-Corp with operations across the natural gas value chain including gathering, processing, interstate transportation, storage, wholesale marketing and trading of natural gas and natural gas liquids. With major positions in top U.S. supply basins, Williams connects the best supplies with the growing demand for clean energy. Williams owns and operates more than 30,000 miles of pipelines system wide – including Transco, the nation’s largest volume and fastest growing pipeline – and handles approximately 30 percent of the natural gas in the United States that is used every day for clean-power generation, heating and industrial use. Learn how the company is leveraging its nationwide footprint to incorporate clean hydrogen, next generation gas and other innovations at www.williams.com.
Portions of this document may constitute “forward-looking statements” as defined by federal law. Although the company believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. Any such statements are made in reliance on the “safe harbor” protections provided under the Private Securities Reform Act of 1995. Additional information about issues that could lead to material changes in performance is contained in the company’s annual and quarterly reports filed with the Securities and Exchange Commission.
What are the details of Williams' acquisition of NorTex Midstream?
Williams acquired NorTex Midstream for $423 million on August 31, 2022. The acquisition includes 80 miles of gas transmission pipelines and 36 Bcf of storage.
How does the NorTex acquisition impact Williams' operations?
The acquisition enhances Williams' natural gas pipeline and storage strategy, supporting energy reliability in Texas.
What is the significance of the acquired assets for Texas energy?
The NorTex assets are critical for supporting 4 GW of power generation, helping Texas meet peak demands.
Will the acquisition help Williams meet LNG demand?
Yes, it positions Williams to effectively store Permian supply directed towards growing Gulf Coast LNG demand.
