30-04-2012

Williams Partners acquires Caiman Eastern

Williams  Partners L.P. has completed its previously announced acquisition of Caiman Energy's wholly owned subsidiary, Caiman Eastern  Midstream, LLC. The acquisition provides Williams Partners with a  significant footprint and growth potential in the natural gas  liquids-rich portion of the Marcellus Shale.

Williams owns approximately 68 percent of Williams Partners, including the general-partner interest.

"With the completion of this major acquisition, we're well on our way to  become the leading provider of gathering, processing and transportation  solutions for producers in the Marcellus Shale," said Alan  Armstrong, chief executive officer of Williams Partners' general  partner.

The acquisition establishes Williams Partners' new Ohio Valley Midstream business. The operation area is northern West Virginia, southwestern  Pennsylvania and eastern Ohio. Work is under way to expand the existing physical assets, which include a gathering system and a processing  facility. In addition, construction is underway on fractionation and  additional processing facilities and there are plans to construct  natural gas liquid (NGL) pipelines.

The new business is anchored by long-term contracts, including gathering dedications totaling 236,000 acres from 10 producers. In addition, there  are processing commitments in place for 100 million cubic feet per day.

Williams Partners plans to operate its Ohio Valley Midstream business from West Virginia. The partnership has put an experienced management  team in place, along with approximately 50 former Caiman Eastern employees, to facilitate continued operations and expansions. It plans  to continue to add staff locally.

Williams Partners and the owners of Caiman Energy are continuing work to  create a joint venture to develop midstream infrastructure in the NGL-  and oil-rich areas of the Utica Shale, primarily in Ohio and northwest Pennsylvania. Caiman Energy's private-equity backers include EnCap  Flatrock Midstream, EnCap Investments L.P. and Highstar Capital.

Williams Partners funded the approximate $2.4 billion purchase price of the Caiman Eastern acquisition with a combination of approximately $1.72  billion in cash, net of purchase price adjustments, and the issuance to Caiman of approximately 11.8 million Williams Partners common units.