Williams Cos. Inc. and Williams Partners completed the sale of their Canadian businesses to Inter Pipeline Ltd. for CA$1.38 billion in combined cash proceeds, according to a Sept. 23 press release.
In connection with the sale, Williams agreed to waive US$150 million of incentive distribution rights in the quarter following closing regarding the value of inter-company contracts. After the waiver is taken into account, the division of the combined sales price between the entities is about US$839 million for Williams Partners and about US$220 million for Williams. The proceeds will reduce borrowings on credit facilities.
In accordance with the sale agreements, at closing, CA$105 million of Williams’ proceeds were placed in escrow pending the receipt of certain credits being pursued by the Canadian businesses.
In compliance with certain tax rules pertaining to a sale of Canadian assets by a foreign parent, 25% of the total proceeds were deposited with an escrow agent—after the withholding--pending receipt of Canadian Revenue Agency tax clearance, which is expected in late 2016 or early 2017.
TD Securities Inc. was the lead financial adviser and Barclays was a co-adviser to Williams.
Williams Cos. Inc. is based in Tulsa, Okla.
Recommended Reading
Oil Prices Ease as US Tariffs On Mexico Paused for a Month
2025-02-03 - WTI crude futures were down $0.04, or 0.01%, at $72.49 after climbing as much as 3.7% earlier in the session to reach their highest since Jan. 24 at $75.18.
Jet Fuel Took Record Share of ’24 US Refinery Output, EIA Says
2025-03-24 - In 2024, U.S. refineries produced a record 659.837 MMbbl of jet fuel, which accounted for about 11% of total refinery yields.
EIA: Tariff Chaos, OPEC Output Increases Spell $57/bbl WTI in 2026
2025-04-10 - Energy Information Administration price estimates for 2025 and 2026 are bad news for producers—if they come to pass—as breakeven prices for operators, even in the Permian Basin, require between $61/bbl and $62/bbl to remain profitable.
Kissler: Is it Time to Worry About Crude Prices?
2025-03-14 - Oil trends will hinge on China’s economy, plans to refill the SPR and how tariff threats play out.
What's Affecting Oil Prices This Week? (March 24, 2025)
2025-03-24 - Oil demand will be picking up as we move into warmer months for the northern hemisphere. For the upcoming week, Stratas Advisors think the price of Brent crude will move higher and will test $73.