TULSA, Okla., July 23, 2002 — Williams announced recently that it is considering selling its natural gas processing and liquids extraction operations in Western Canada to continue to strengthen the company’s financial flexibility.
Terms of a potential sale are not known at this time.
Phil Wright, president and chief executive officer of Williams’ energy services unit, said, “We have received unsolicited expressions of interest in these assets. In light of our balance sheet strengthening plan, we believe we must consider selling them to parties for whom they may be a better strategic fit.”
The Western Canadian assets, acquired from TransCanada in October 2000, represent a total of approximately 6 billion cubic feet per day of gas processing capacity, around 225,000 barrels per day of natural gas liquids production capacity, a natural gas liquids pipeline system and more than 5 million barrels of natural gas liquids storage capacity.
“A sale would allow us to concentrate our resources on our core midstream positions in Wyoming, Colorado, New Mexico and the deepwater Gulf of Mexico,” said Wright. “While the growth prospects for the Western Canadian basin have proven even better than our original perspective two years ago, our midstream interests in the United States are more integrated and more complementary to other Williams assets.”
Williams recently completed a new offshore platform and two new pipelines in the Gulf of Mexico serving deepwater oil and gas producers. These investments provide new physical volumes for existing downstream assets such as the Transco gas pipeline system.
Williams moves, manages and markets a variety of energy products, including natural gas, liquid hydrocarbons, petroleum and electricity. Based in Tulsa, Okla., Williams’ operations span the energy value chain from wellhead to burner tip. Company information is available at www.williams.com.