TULSA, Okla.--(BUSINESS WIRE)--Williams Partners L.P. (NYSE: WPZ) today announced it has completed the execution of a new gas gathering agreement with Total’s U.S. affiliates (“Total”), the successor to Chesapeake Energy’s (NYSE: CHK) properties in the Barnett Shale.
The Barnett agreement with Total follows a previously announced agreement with Chesapeake Energy that provides accelerated upfront cash payments to Williams Partners totaling $754 million ($334 million from Chesapeake and $420 million from Total), as well as new terms and conditions under which Williams Partners will provide gas gathering services to Total through 2029.
The closing of the new agreement with Total also marks the official termination of Williams Partners’ Barnett Shale gas gathering agreement with Chesapeake Energy. It is expected that Williams Partners’ existing gathering agreement, including MVC obligations with Total, will remain unchanged through mid-2019.
About Williams Partners
Williams Partners (NYSE: WPZ) is an industry-leading, large-cap natural gas infrastructure master limited partnership with a strong growth outlook and major positions in key U.S. supply basins. Williams Partners has operations across the natural gas value chain from gathering, processing and interstate transportation of natural gas and natural gas liquids to petchem production of ethylene, propylene and other olefins. Williams Partners owns and operates more than 33,000 miles of pipelines system wide – including the nation’s largest volume and fastest growing pipeline – providing natural gas for clean-power generation, heating and industrial use. Williams Partners’ operations touch approximately 30 percent of U.S. natural gas. Tulsa, Okla.-based Williams (NYSE: WMB), a premier provider of large-scale U.S. natural gas infrastructure, owns 60 percent of Williams Partners, including all of the 2 percent general-partner interest. www.williams.com
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. Additional information about issues that could lead to material changes in performance is contained in the partnership’s annual and quarterly reports filed with the Securities and Exchange Commission.