Partners L.P. (NYSE:WPZ) today announced an update on its 47.5
percent interest in Caiman Energy II, which was established by Caiman
and its investors to develop midstream infrastructure serving oil and
gas producers in the Utica Shale. In addition to Williams Partners,
investors in Caiman Energy II include EnCap Flatrock Midstream of San
Antonio, Highstar Capital of New York and management.
Williams Partners plans to contribute approximately $380 million through
2014 to help fund Caiman Energy II's new Blue Racer Midstream venture.
EnCap Flatrock Midstream is expected to contribute up to $285 million
with Highstar contributing up to $95 million. Caiman and Dominion formed
Blue Racer, which will leverage Dominion's existing business in the
Utica with significant additional new capacity designed to meet producer
needs as the Utica Shale acreage is developed. Midstream services
offered will include gathering, processing, fractionation, and natural
gas liquids transportation and marketing.
"Through our interest in Caiman Energy II, Blue Racer Midstream gives us
additional exposure to the Utica Shale, which is one of the fastest
growing resource plays in North America," said Alan Armstrong, chief
executive officer of Williams Partners' general partner. "We believe
this venture has all the elements to be highly successful in delivering
timely, safe and reliable midstream services to producers in this
fast-growing area. We are excited to be partnering with Dominion, a well
established operator with well positioned assets in this region, and
Caiman who continues to demonstrate strong development capabilities."
The approximate $380 million that Williams Partners expects to invest in
Caiman Energy II was included in previous 2012-14 capital expenditure
guidance. The partnership expects growing cash distributions from its
investment in Caiman Energy II beginning with approximately $20 million
in 2014. Williams expects to account for its Caiman Energy II investment
using the equity method.
Williams Partners' current ownership interest in Caiman Energy II is
47.5 percent with EnCap Flatrock Midstream owning 35.6 percent, Highstar
Capital owning 11.5 percent and management owning 4 percent.
About Williams Partners L.P. (NYSE: WPZ)
Williams Partners L.P. is a leading diversified master limited
partnership focused on natural gas transportation; gathering, treating,
and processing; storage; natural gas liquid (NGL) fractionation; and oil
transportation. The partnership owns interests in three major interstate
natural gas pipelines that, combined, deliver 14 percent of the natural
gas consumed in the United States. The partnership's gathering and
processing assets include large-scale operations in the U.S. Rocky
Mountains and both onshore and offshore along the Gulf of Mexico. Williams
(NYSE: WMB) owns approximately 70 percent of Williams Partners,
including the general-partner interest. More information is available at www.williamslp.com,
where the partnership routinely posts important information.
Portions of this document may constitute "forward-looking statements"
as defined by federal law. Although the partnership 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 partnership's annual reports filed with
the Securities and Exchange Commission.
Williams Partners L.P.
Sharna Reingold, 918-573-2078