Tulsa-based Williams announced Thursday it acquired the north-Texas based NorTex Midstream in a $423 million deal.
NorTex was an affiliate of Tailwater Capital and the acquisition, according to the announcement closed on August 31. The acquisition included 80 miles of natural gas transmission pipelines and 36 Bcf of natural gas storage in the Dallas-Fort Worth market.
Williams said the NorTex assets provide critical service to nearly 4 GW of gas fired power generation which enables Texas energy providers to meet peak demands.
In addition to providing critical gas supply to power generation in north Texas, these assets also position Williams to provide storage services for Permian gas directed toward growing Gulf Coast LNG demand.
“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 advisor to Williams, and Davis Polk and Wardwell LLP served as legal counsel to Williams. Wells Fargo Securities, LLC acted as exclusive financial advisor to Tailwater and NorTex, and Kirkland & Ellis served as legal counsel to Tailwater and NorTex.
Source: Williams press release