Williams Partners LP, which gathers, processes and transports natural gas, said Thursday it has agreed to buy an additional 20 percent interest in Discovery Producer Services LLC from its general partner Williams Cos. for $78 million.
Williams Partners currently owns a 40 percent interest in Discovery, which provides gathering, processing and other services to producers operating in the Gulf of Mexico.
The transaction is expected to add immediately to Williams Partners' distributable cash flow on a per-unit basis.
Williams Partners said the equity earnings attributable to a 20 percent interest in Discovery were $5.4 million for the 12 months ended March 31. Distributable cash flow attributable to a 20 percent interest in Discovery was $10.3 million for the same period.
Williams Partners plans to fund the acquisition with cash on hand. The transaction, which is subject to standard closing conditions, is expected to be completed before the end of the month. Williams' board has approved the deal.
Questions or comments about this story should be directed to Kristen A. Lee at 212-621-7190.
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