Williams today announced that it has reached an agreement to acquire MountainWest Pipelines Holding Company from Southwest Gas Holdings, Inc. in a transaction including $1.07 billion of cash and $0.43 billion of assumed debt, for an enterprise value of $1.5 billion. MountainWest comprises roughly 2,000-miles of interstate natural gas pipeline systems primarily located across Utah, Wyoming and Colorado, totaling approximately 8 Bcf/d of transmission capacity.
MountainWest also holds 56 Bcf of total storage capacity, including the Clay Basin underground storage reservoir, providing valuable service to western markets. The acquisition price represents an approximate 8x estimated 2023 EBITDA multiple.
“Our natural gas focused strategy is anchored in having the right assets in the right places to serve our nation’s growing demand for clean, affordable and abundant natural gas. MountainWest is complementary to our current footprint, providing us with infrastructure for natural gas deliveries across key demand markets, including into Salt Lake City,” said Alan Armstrong, Williams president and Chief Executive Officer. “We also see this acquisition as an opportunity to bring value to both Williams and MountainWest customers as we integrate business processes and systems, allowing us to potentially offer new flow paths for next generation natural gas that could create additional market optionality for our shippers.”
The transaction is expected to close in 2023, following satisfaction of customary closing conditions, including regulatory approvals and the expiration or termination of any applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
- Bolt-on acquisition expands Williams’ midstream infrastructure footprint while increasing business mix of FERC-regulated natural gas transmission and storage
- Expands services to major Rockies demand markets by providing natural gas delivery into Salt Lake City and other demand markets not currently served by Williams
- Highly contracted revenues anchored by long-term demand-pull customers with opportunity to provide incremental service offerings such as next generation natural gas through the expanded footprint
For more information visit www.investor.williams.com
