Williams acquires MountainVest natural gas transmission and storage operations from Southwest Gas Holdings, Inc. | Daily News Byte

Williams acquires MountainVest natural gas transmission and storage operations from Southwest Gas Holdings, Inc.

 | Daily News Byte

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  • The turnkey acquisition expands Williams’ infrastructure footprint while growing its FERC-regulated natural gas transportation and storage business mix

  • Expands service in key demand markets of the Rockies by providing natural gas delivery to Salt Lake City and other demand markets not currently served by Williams

  • Highly contracted revenues based on long-term customers that attract demand with the ability to provide additional services such as next-generation natural gas through an expanded footprint

TULSA, Oklahoma, December 15, 2022—(BUSINESS WIRE)–Williams (NYSE: VMB) today announced that it has reached an agreement to acquire MountainVest Pipelines Holding Company (MountainVest) from Southwest Gas Holdings, Inc. (NISE: SVKS), in a transaction that included $1.07 billion in cash and $0.43 billion in assumed debt, for an enterprise value of $1.5 billion. MountainVest includes approximately 2,000 miles of interstate natural gas pipeline systems located primarily through Utah, Wyoming and Colorado, totaling approximately 8 Bcf/d of transmission capacity. MountainVest also owns 56 Bcf of total storage capacity, including the Clay Basin underground storage tank, which provides valuable service to western markets. The acquisition price represents approximately 8k estimated 2023 EBITDA multiples.

“Our strategy focused on natural gas is predicated on having the right assets in the right places to meet our nation’s growing demand for clean, affordable and abundant natural gas.” “MountainVest is complementary to our existing footprint, providing us with natural gas delivery infrastructure across key demand markets, including 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 next-generation natural gas flow paths that could create additional market optionality for our shippers.”

The transaction is expected to close in 2023, subject to the satisfaction of customary closing conditions, including regulatory approvals and the expiration or termination of any applicable waiting period under the Hart-Scott-Rodino Antitrust Amendments of 1976.

For additional resources on this announcement, please visit Williams’ Investor Relations website.

Advisors

TD Securities and JP Morgan served as co-financing advisors to Williams; Moelis & Company and Lazard Freres & Co. LLC served as co-financing advisors to Southwest Gas Holdings. Williams was represented by Davis Polk & Wardwell LLP; Southwest Gas Holdings was represented by Morrison & Foerster LLP.

About Williams

Williams (NISE: VMB) is committed to being a leader in providing infrastructure that safely delivers natural gas products to reliably power the clean energy economy. Headquartered in Tulsa, Oklahoma, Williams is a leading investment-grade C-Corp company with operations across the natural gas value chain, including gathering, processing, interstate transportation and storage of natural gas and natural gas liquids. With major positions in America’s leading supply basins, Williams connects the best supply with the growing demand for clean energy. Williams owns and operates more than 30,000 miles of pipeline system – including Transco, the nation’s largest and fastest growing natural gas pipeline – and manages about 30 percent of the natural gas in the United States used daily for clean energy generation, heating and industrial use.

About Southwest Gas Holdings, Inc.

Southwest Gas Holdings, Inc. (NISE: SVKS), through its subsidiaries, engages in the business of purchasing, distributing and transporting natural gas and providing comprehensive utility infrastructure services throughout North America. Southwest Gas Corporation, a wholly owned subsidiary, safely and reliably delivers natural gas to over two million customers in Arizona, California and Nevada. The company’s MountainVest subsidiary provides natural gas storage and interstate pipeline services in the Rocky Mountain region.

Portions of this document may constitute “forward-looking statements” as defined by federal law. Although the company believes that all such statements are based on reasonable assumptions, there can be no assurance that actual outcomes will not be materially different. All such statements are made in reliance on the “safe harbor” protections provided by the Private Securities Reform Act of 1995. Additional information on matters that could result in material changes in performance is contained in the company’s annual and quarterly reports filed with the Securities and Exchange Commission. values ​​and the Exchange Commission.

See the original version on businesswire.com: https://www.businessvire.com/nevs/home/20221215005232/en/

Contacts

THE MEDIA:
media@williams.com
800-945-8723

INVESTOR CONTACT:
Danilo Juvane
918-573-5075

Grace Scott
918-573-1092

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