Laser Northeast Agrees To Sell To Williams Partners For $750 Million

To acquire subsidiary 33 miles of 16-inch gas pipeline and gathering facilities in Susquehana Co., PA, Broome Co., NY, plus gathering assets in TX.

CLARKS SUMMIT, PA -- Delphi Midstream Partners LLC announced on Dec. 22 that it has entered into a definitive agreement to sell its Laser Northeast Gathering Company LLC in Pennsylvania and other gathering assets in Texas to Williams Partners for approximately $750 million.

Williams Partners plans to fund the purchase price of the acquisition with a combination of $300 million cash and approximately 7.5 million Williams Partners common units. Delphi Midstream Partners is owned by American Securities LLC and management.

Laser is a high-pressure gathering system currently comprised of 33 miles of 16-inch natural gas pipeline and associated gathering facilities in Susquehanna County, PA and Broome County, NY. The acquisition is supported by existing long-term gathering agreements that provide acreage dedications and volume commitments. When all phases are complete, the system will comprise over 75 miles of pipeline and total system capacity of 1.3 bcf/d.

"This is a great outcome for Laser and its employees. I am very pleased that our talented and professional team will join the leading company in the industry as valued employees," stated Thomas F. Karam, Chairman & CEO of Laser.

Matthew LeBaron, a managing director of American Securities, commented, "We are pleased to enter into this agreement between Delphi Midstream and Williams Partners. Tom Karam and the Laser management team have worked hard to build a world-class midstream company. This transaction reflects the value created by Delphi Midstream and we look forward to participating in Laser's continued success as Williams Partners shareholders."