The Williams Cos. has acquired NorTex Midstream, a fully contracted natural gas pipeline and storage asset in north Texas, the company said on Sept. 8.
The $423 million transaction with an affiliate of Tailwater Capital, which closed on Aug. 31, includes about 80 miles of natural gas transmission pipelines and 36 Bcf of natural gas storage in the Dallas-Fort Worth market. The assets provide service to about 4 GW of gas-fired power generation. They also position Williams to provide storage services for Permian gas directed toward growing Gulf Coast LNG demand.
Tailwater acquired NorTex in February 2021, shortly after Winter Storm Uri hit Texas. As one of the only operational natural gas storage facilities supplying the North Texas region during the storm, NorTex played a pivotal role supporting natural gas power generators and utilities. The company delivered more than 5 Bcf of natural gas to its customers and provided enough natural gas to heat and power approximately 380,000 homes, saving customers more than $800 million or the equivalent of over $2,100 per household.
“Serving one the fastest growing population centers in the United States, this irreplaceable natural gas infrastructure is critical to bridging the gap between limited supplies and periods of peak demand, while supporting the viability of intermittent renewables like solar and wind,” said Williams President and CEO Alan Armstrong. “During the extreme cold of Winter Storm Uri, the NorTex pipeline and storage facilities reliably provided gas to residential customers and electric power plants throughout the entire storm. We see significant upside to integrating these assets, especially when combined with our existing transmission and storage capabilities.”
BofA Securities acted as exclusive financial adviser to Williams, and Davis Polk and Wardwell LLP served as legal counsel to Williams. Wells Fargo Securities LLC acted as exclusive financial adviser to Tailwater and NorTex, and Kirkland & Ellis served as legal counsel to Tailwater and NorTex.
Recommended Reading
Diversified Bolts-On Appalachia Gas Production, Midstream Assets
2025-01-06 - Diversified Energy will buy Summit Natural Resources’ assets, including producing wells and coal mine methane wells, in the southern part of the Appalachian Basin.
Orion Acquires SCOOP/STACK Interests, Pursuing Permian Deals
2024-11-11 - Orion Diversified Holding Co. is pursuing negotiations with several oil companies in the Permian Basin to acquire oil and gas assets, the company’s CEO said.
Shell, Equinor JV to Create UK’s Largest Independent Oil, Gas E&P
2024-12-05 - The joint venture will produce more than 140,000 boe/d in 2025, Shell said. In the U.K., Equinor currently averages 38,000 boe/d and Shell 100,000 boe/d.
Investment Firm Aethon Explores Options for $10B US Natgas Assets, Sources Say
2024-11-13 - U.S. energy-focused investment firm Aethon Energy Management is exploring options for its natural gas production and midstream assets that include a sale or an initial public offering at a valuation of about $10 billion, including debt, people familiar with the matter said on Nov. 12.
ONEOK’s Acquisitions Pay Off with Increased Earnings
2024-10-31 - ONEOK Inc. also announced the completion of its $2.6 billion Medallion Midstream deal.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.