Cureton Front Range was acquired by the American energy infrastructure company from Tailwater Capital and a fund overseen by Ares Management’s private equity group while the remaining 50% stake in Rocky Mountain Midstream was acquired from KKR
Williams acquires Cureton Front Range and takes full ownership of Rocky Mountain Midstream in two separate deals. (Credit: Arul from Pixabay)
Williams has completed the previously announced acquisition of a 100% stake in Cureton Front Range and a 50% additional stake in Rocky Mountain Midstream (RMM) for a combined price of $1.27bn.
The two deals are said to help Williams become the third largest gatherer in the DJ Basin in the US.
Both acquisitions were announced by the American energy infrastructure company while releasing its Q3 2023 results last month.
According to Williams, the transactions were partially funded by proceeds of $355m from the recent sale of its Bayou Ethane Pipeline system, as well as $533m in net proceeds now received from the Energy Transfer legal judgment of $627 million.
Cureton Front Range was acquired from Tailwater Capital and a fund overseen by Ares Management’s private equity group for an undisclosed price.
Initially, Tailwater Capital and Ares Management invested in Cureton Front Range in 2017 with the aim of pursuing a greenfield midstream strategy anchored in the DJ Basin in Colorado.
By acquiring Cureton Front Range, Williams adds gas gathering pipelines and two processing plants that cater to producers across 225,500 dedicated acres. The assets include 418km long low and high pressure pipelines, 109 million cubic feet per day (MMcf/d) of natural gas processing capacity, and 64,000 horsepower of compression.
In Rocky Mountain Midstream, Williams acquired KKR’s 50% stake for an undisclosed price to gain full ownership.
Rocky Mountain Midstream provides natural gas gathering and processing services. Its operations cover more than 250,000 acres of Colorado land to deliver a local source of clean energy to customers along Colorado’s Front Range.
The business is said to produce enough natural gas to meet the annual needs of nearly 2.8 million households in Colorado.
Williams president and CEO Alan Armstrong said: “We remain committed to executing on acquisitions that progress our overall strategy to maintain top positions in the basins we serve.
“The combination of the Cureton and RMM assets will deliver tangible operational synergies that include increased volumes on our existing processing facilities, as well as increased revenues on our downstream NGL transportation, fractionation and storage assets.”