Williams Completes Acquisition of Sequent Energy Management

Rhea-AI Summary

Williams (NYSE: WMB) has successfully acquired Sequent Energy Management, L.P. and Sequent Energy Canada, Corp. from Southern Company Gas. This acquisition enhances Williams' natural gas pipeline and storage capabilities, increasing its marketing footprint to over 8 Bcf/d. It positions the company to tap into new markets for gas-fired power generation, LNG exports, and renewable natural gas. CEO Alan Armstrong emphasized the strategic importance of this deal in supporting a clean energy future and expanding operational reach in North America.

Positive

• Acquisition boosts marketing footprint to over 8 Bcf/d.
• Enhances pipeline and storage optimization capabilities.
• Expands into new markets for gas-fired power and LNG exports.
• Strengthens position in renewable natural gas opportunities.

Negative

• None.

Williams (NYSE: WMB) today announced it has completed its acquisition of Sequent Energy Management, L.P. and Sequent Energy Canada, Corp. from Southern Company Gas. The acquisition, announced in May, accelerates Williams’ natural gas pipeline and storage optimization and marketing growth and increases Williams’ gas pipeline marketing footprint to over 8 Bcf/d, with expansions into new markets to reach incremental gas-fired power generation, liquified natural gas (LNG) exports and future renewable natural gas (RNG) and other emerging opportunities.

“The addition of Sequent Energy Management, including its talented workforce and industry leading platform, complements the current geographic footprint of our core pipeline transportation and storage business,” said Alan Armstrong, president and chief executive officer of Williams. “As we continue to take a leadership role towards a clean energy future, Williams sees significant opportunity to better source and deliver responsibly produced, low carbon supplies to domestic natural gas and international LNG customers. Sequent’s operational footprint in the U.S. and Canada provides Williams with an enhanced North American perspective of natural gas markets, in turn bolstering the company’s natural gas focused strategy, and I’m excited to welcome the Sequent employees to the Williams family.”

Sequent moves gas to markets through transportation and storage agreements on strategically positioned assets, including along Williams’ Transco system. The company focuses on asset management and the wholesale marketing, trading, storage and transportation of natural gas for a diverse set of natural gas utilities and producers.

About Williams

Williams (NYSE: WMB) is committed to being the leader in providing infrastructure that safely delivers natural gas products 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 and storage 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. 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210701005581/en/

FAQ

What is the significance of Williams' acquisition of Sequent Energy Management?

The acquisition enhances Williams' natural gas pipeline and storage operations, increasing its marketing footprint and expanding into new markets.

How will the acquisition impact Williams' growth strategy?

It positions Williams to better source and deliver low carbon supplies, supporting its goal of leading in the clean energy sector.

What are the expected benefits of the acquisition for WMB shareholders?

Shareholders can expect growth in gas pipeline capacity, potential revenue increases, and strengthened market presence.

When was the acquisition of Sequent Energy Management announced?

The acquisition was initially announced in May before its completion by Williams.