Williams acquires strategic assets in DJ Basin to become third largest gatherer
Williams (NYSE: WMB) has announced the successful closure of two strategic transactions, positioning the company as the third-largest gatherer in the DJ Basin. The first acquisition involves Cureton Front Range LLC, whose assets include gas gathering pipelines and two processing plants covering 225,500 dedicated acres. The second transaction is the purchase of KKR’s 50 percent ownership interest in Rocky Mountain Midstream Holdings LLC (RMM), giving Williams complete ownership of RMM.
Alan Armstrong, president and CEO of Williams, emphasized the company’s commitment to strategic acquisitions that enhance their position in key basins. “The combination of the Cureton and RMM assets will deliver operational synergies, including increased volumes on our existing processing facilities and increased revenues on our downstream NGL transportation, fractionation, and storage assets,” Armstrong stated.
These acquisitions, first announced during the company’s third-quarter earnings, have a combined value of $1.27 billion, with a blended multiple of approximately 7x 2024 Adjusted EBITDA. The transactions were partially funded by $355 million from the sale of Williams’ Bayou Ethane Pipeline system and $533 million in net proceeds from the Energy Transfer legal judgment of $627 million.
The Cureton and RMM transactions represent significant expansions for Williams in the DJ Basin. Cureton Front Range LLC’s assets, including gas gathering pipelines and processing plants, enhance Williams’ operational capabilities. The full ownership of Rocky Mountain Midstream Holdings LLC bolsters Williams’ presence and infrastructure in the region.
These strategic moves by Williams are part of its broader strategy to maintain and strengthen its positions in the energy sector, particularly in gas gathering and processing. The acquisitions also reflect the company’s focus on generating increased volumes and revenues through integrated operations in the energy market.