10-07-2012

Williams Partners, Caiman Energy II to develop Utica shale infrastructure

Williams  Partners L.P. today announced it will be a funding  partner in a joint venture with Caiman Energy II to develop midstream infrastructure serving oil and gas producers in the Utica Shale.

Williams Partners, EnCap Flatrock Midstream of San Antonio, Highstar  Capital of New York, and Caiman management anticipate investing  approximately $800 million to develop natural gas, natural gas liquid and crude oil gathering and processing infrastructure. The area of focus will be the natural gas liquid-and oil-rich areas of the Utica Shale in Ohio and northwest Pennsylvania. Williams Partners' anticipated share of the $800 million in potential development is approximately $380 million over the next several years.

"This new midstream venture can leverage the commercial relationships and success of Caiman's management and investors, along with Williams Partners' long experience in successfully constructing and reliably operating large-scale midstream infrastructure," said Alan Armstrong, chief executive officer of Williams Partners' general partner.

"Our producer customers will benefit from introducing the kind of  comprehensive large-scale midstream solutions to the area that will make their positions in  the liquids-and oil-rich Utica Shale even more valuable," Armstrong said.

Jack Lafield, chairman and chief executive officer of Caiman Energy,  LLC, made the following comments:
"We couldn't be more pleased to work with such a well-respected company.  Together with our other equity partners, Williams' financial strength  and experience allows Caiman Energy to continue to provide our producer  customers with the best possible midstream solutions as they develop  drilling locations in this exciting play. We see great opportunities in  the Utica Shale and with the successful completion of this equity transaction, we believe we are well-positioned to expand into the Utica and elsewhere."

The new Utica Shale joint venture will also benefit from close proximity  to Williams Partners' new Ohio Valley Midstream business. The Ohio Valley Midstream area of operation is northern West Virginia, southwestern Pennsylvania and eastern Ohio. Work is under way to expand 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 NGL pipelines.