Tulsa-based pipeline giant Williams said Thursday it has sold some pipeline systems in the Gulf Coast area to Easton Energy LLC for $177 million.
The 31-mile Texas Belle Pipeline, which transports natural gas liquids from Mont Belvieu near Houston to customers along the Houston Ship Channel, is included in this transaction, which was completed late last month.
Also sold were the Purity Pipeline System, assets in the Live Oak Pipeline System and additional idle pipelines along the Gulf Coast.
“We continue to assess and execute on opportunities to optimize our portfolio,” said Senior Vice President Chad Zamarin, who oversees corporate strategic development. The Gulf Coast assets sold “were not core to our business strategy,” and the proceeds can be used as “a source for growth capital and a driver for improved credit metrics.”
After the transaction, Williams’ Atlantic-Gulf business segment would include 506 miles of purity product NGL pipelines.
Proceeds are being used to fund Williams’ extensive portfolio, which stretches across the U.S. onshore into the deepwater Gulf of Mexico. The previous 2019 guidance was not impacted by the transaction, management said.
Credit Suisse Securities (USA) LLC served as the lead financial adviser.