Williams

Chesapeake Energy | Energy Companies | Energy Services | Utica Shale | Williams

Credible Rumor: Chesapeake Shopping Utica Dry Gas Assets for $2B
September 16, 2015September 16, 2015

Did Chesapeake Energy take Williams to the cleaners? Chesapeake Energy has just cut a deal with Williams to shave 25 cents per Mcf off their natural gas gathering fees in the Utica Shale (see this Shale Daily story: Chesapeake Strikes Sweeter Haynesville, Utica Gathering Deals With Williams). In return for the price cut from Williams, Chesapeake agreed to bring more wells online and increase the volume of the gas they send through Williams’ pipes. But what’s this? Credible rumors are swirling that Chesapeake, after winning concessions from Williams, is now looking to dump their dry gas (not wet gas) Utica Shale assets in an effort to raise $2 BILLION. Sure looks to us like Chessy just enhanced the value of their assets in the Utica as a way to turn around and sell it…
Read More “Credible Rumor: Chesapeake Shopping Utica Dry Gas Assets for $2B”
Chesapeake Energy | Energy Companies | Energy Services | Industrywide Issues | Ohio | Pipelines | Statewide OH | Utica Shale | Williams

Williams/Chesapeake Ohio Utica Deal Adds 50K Acres & 20 Years
September 8, 2015September 8, 2015

Midstream giant Williams and drilling giant Chesapeake Energy are cuddling a little bit closer in the Ohio Utica Shale. Williams announced today they have signed an agreement with Chesapeake to run gathering pipelines in a new area of the dry gas Utica for Chesapeake in return for signing a contract that binds Chessy to using Williams until 2035. Williams was already gathering natural gas for Chessy on 140,000 acres of Utica Shale land in Ohio. This agreement extends the time on that 140,000 acres by adding another 20 years, and adds another 50,000 acres to the mix…
Read More “Williams/Chesapeake Ohio Utica Deal Adds 50K Acres & 20 Years”
Energy Services | Industrywide Issues | Pipelines | Regulation | Transco | Virginia | Williams

Williams Completes $300M Pipeline Expansion in Virginia on Time
September 2, 2015April 27, 2016

Click image for larger version

How in the world did this happen?! Williams, which operates the mighty Transco, the largest natural gas pipeline in the United States, has just completed and put into service the Virginia Southside Expansion project. The project, which was put into service to the day they predicted it would be (September 1st) as predicted in their original transmittal letter to the Federal Regulatory Energy Commission back in December 2012, consists of 91 miles of new Transco pipeline laid next to existing pipeline across Virginia (from Pittsylvania County to Brunswick County); 7 miles of new pipeline in Brunswick County; new compressor stations; and other assorted upgrades. The $300 million project will flow 270,000 dekatherms per day (dth/d) of new natgas supplies, enough gas to serve 1.6 million households, but primarily built for the purpose of fueling Dominion’s new 1,300 megawatt electric-power generating plant Brunswick County. The project will also serve increasing local distribution demand in nearby North Carolina. Aside from the fact that anti-fossil fuel nutters have been relatively silent about this project, the interesting thing to MDN is that some of the upgrades come outside of Virginia–in New Jersey and Pennsylvania where portions of the existing Transco mainline were upgraded to be bidirectional, meaning Pennsylvania Marcellus Shale gas will now be able to flow southward…
Read More “Williams Completes $300M Pipeline Expansion in Virginia on Time”
Energy Services | Energy Transfer Partners | Industrywide Issues | Kinder Morgan | M&A | Spectra Energy | Williams

More Suitors Line Up to Buy Williams – Spectra Energy Makes a Bid
August 19, 2015August 19, 2015

Early in the year, midstream giant Energy Transfer Equity began an attempt to woo another midstream giant Williams into a buyout. Williams resisted and the whole thing went public in June when ETE announced they would pursue a hostile takeover (see Energy Transfer Makes “Indecent Proposal” to Buy Williams for $48B). Williams has continued to spurn the overtures of ETE and has instead gone shopping for another suitor (see Williams Continues to Resist ET Offer, Talks with Other Suitors). We now know of one serious alternative suitor to ETE. Reuters published an exclusive, insider story revealing that Spectra Energy is now bidding to merge with/takeover Williams. Kinder Morgan is also interested and sniffing around, but at this point Spectra seems to be in the lead…
Read More “More Suitors Line Up to Buy Williams – Spectra Energy Makes a Bid”
Anti-Drilling/Fossil Fuel | Coterra Energy (Cabot O&G) | Energy Companies | Energy Services | Industrywide Issues | New York | Pipelines | Statewide NY | Williams

Shrill Opposition to Constitution Pipeline after Cabot Comment
August 3, 2015August 3, 2015

Flat-out, 100% lies is what best describes the claims being made by anti-pipeline groups like Stop the Pipeline in New York State in a letter sent to Gov. Andrew Cuomo, with respect to charges that the already-FERC-approved Constitution Pipeline would, if built, incite an environmental Holocaust in the state. These are the VERY SAME people who successfully pressured Cuomo into banning fracking in the state–so they’re hoping they can bully the pathetically weak Cuomo once again, this time to reject the Constitution Pipeline. The renewed and shrill campaign against the pipeline comes because last week Cabot Oil & Gas CEO Dan Dinges said he expects the NY Dept. of Environmental Conservation (DEC) to issue permits allowing the pipeline to cross streams and swamps (i.e. “wetlands”) any day now. The fact that this pipeline WILL get built is eating anti-drillers alive. They can’t stand it. So they whip up an email “letter” to Cuomo, and then get their sympathetic buddies at the Democrat Albany Times Union to run a story on their efforts, trying to manufacture the appearance that there is a groundswell of support against the pipeline–when there isn’t…
Read More “Shrill Opposition to Constitution Pipeline after Cabot Comment”
Energy Services | Williams

Williams 2Q15: Revenues Up Thx to the Marcellus/Utica
July 30, 2015July 30, 2015

Yesterday both Williams Partners and parent company Williams released their second quarter 2015 financial and operational updates. For our purposes of focusing on the northeast, Williams Partners is the company to focus on. Overall Williams Partners’ EBITDA (earnings before interest, taxes, depreciation and amortization) was up a healthy 41%, from $717 million in 2Q14 to $1.0 billion in 2Q15. When you peal back the onion, you find that Williams’ northeast operations are largely the reason for the increase. The 2Q15 numbers include revenue from Williams’ purchase of Access Midstream and largely explain the bump up in revenue, although both the Atlantic-Gulf pipeline division and the Northeast Gathering & Processing divisions also saw big increases year over year. So the financial picture for Williams is rosy largely because of the Marcellus/Utica. The quarterly update does mention the “indecent proposal” by Energy Transfer Equity (but not by name) and says Williams continues to evaluate all options (see Energy Transfer Makes “Indecent Proposal” to Buy Williams for $48B). Below is the Williams Partners 2Q15 update, along with a copy of the Williams quarterly “data book” with slides breaking down the particulars for each division…
Read More “Williams 2Q15: Revenues Up Thx to the Marcellus/Utica”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Lancaster County | Pennsylvania | Pipelines | Williams

Antis Plan to Protest Pipeline Talk Tonight in Lancaster County
July 28, 2015July 28, 2015

A small group of anti-fossil fuel protesters plans to disrupt an information meeting being hosted by the Chamber of Commerce in Lancaster County tonight. The event will feature representatives from Williams discussing and sharing information about their planned $3 billion Atlantic Coast Pipeline project–a project largely embraced by the public but opposed by a few small pockets of dedicated protesters, one such group being Lancaster Against Pipelines. The Atlantic Coast project will flow Marcellus Shale gas to Mid-Atlantic and southern states. Most of the protesters are too cheap to buy a $25 ticket to the event, so they’ll stand outside and make fools of themselves by chanting and hollering at those who enter the meeting. We encourage a contingent of pro-drillers to show up and stand outside to show support for the project. It’s time to show everyone that supporters far outnumber detractors…
Read More “Antis Plan to Protest Pipeline Talk Tonight in Lancaster County”
Coterra Energy (Cabot O&G) | Energy Companies | Energy Services | Industrywide Issues | New York | Pipelines | Regulation | Statewide NY | Williams

Cabot Says Constitution Pipeline Construction to Begin this Fall
July 27, 2015July 27, 2015

Last Friday during the Cabot Oil & Gas quarterly earnings call update with analysts, Cabot’s CEO Dan Dinges provided an important update on the Constitution Pipeline, a 125-mile pipeline that will stretch from the gas fields of Susquehanna County, PA into New York, to Schoharie County. It is a critically needed pipeline to get Cabot’s natural gas in Susquehanna County to markets throughout the northeast and New England. Although Williams is the lead company building the pipeline, Cabot is the other primary partner in the project. Currently the Constitution is 100% FERC authorized and they have 100% of the rights of way leases signed for the project. The only hold-up is the New York State Dept. of Environmental Conservation in granting 401 Water Quality Certificates that allows the Constitution to lay pipe through and under swamps, creeks and other bodies of water. According to Dinges, they expect NY to issue those permits any day now…
Read More “Cabot Says Constitution Pipeline Construction to Begin this Fall”
Energy Services | Industrywide Issues | New York | Pennsylvania | Pipelines | Statewide NY | Statewide PA | Williams

Williams Announces New Upgrades to Transco Pipeline into NYC
July 13, 2015July 13, 2015

More yummy Marcellus Shale gas will be flowing to 500,000 additional New York City residents by the 2017/2018 heating season if an application just filed by Williams with the Federal Energy Regulatory Commission (FERC) gets approved. Last week Williams filed an application with FERC for the New York Bay Expansion Project. The $130 million project will expand capacity on the mighty Transco pipeline by installing new compressor station equipment, replacing a quarter mile of pipeline (in New Jersey), and upgrading meter and regulator stations at several locations in NJ, PA and NY. All work will be done in existing rights-of-way and at existing facilities–no new building or greenfield construction necessary. But that won’t stop the crazies from opposing it…
Read More “Williams Announces New Upgrades to Transco Pipeline into NYC”
Energy Services | Energy Transfer Partners | Industrywide Issues | M&A | Williams

Williams Continues to Resist ET Offer, Talks with Other Suitors
July 6, 2015July 6, 2015

An update on the potentially hostile takeover of Williams Companies by Energy Transfer Equity (see Energy Transfer Makes “Indecent Proposal” to Buy Williams for $48B). Williams is trying to get Energy Transfer CEO Kelcy Warren to sign a “standstill” clause before giving Warren access to Williams’ books. Such a clause would restrict Warren from buying shares of stock in Williams, lobbying investors and nominating his own candidates to the Williams board of directors–at least until a deal is cut. Warren is, so far, resisting and keeping up the pressure that he will move in a hostile manner to take over the company if they don’t cut a deal with him asap. This just in: Williams is now actively shopping itself and has “reached out” to more than 15 potential buyers, two of which have signed the standstill agreement and are, right now, poring over Williams’ books…
Read More “Williams Continues to Resist ET Offer, Talks with Other Suitors”
Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Statewide PA | Williams

More Pipeline Payola: Williams Doles Out $2.5M in PA Grants
June 30, 2015June 30, 2015

We won’t harp yet again about how we feel about paying local (very worthy) groups and organizations money to support your pipeline project BEFORE it’s approved and built (cough *borderline sleazy* cough). We’ll just bring you the news that Williams has seen fit to dole out $2.5 million to 17 Conservation Fund projects in Pennsylvania. A spoonful of $ugar to help the Atlantic Sunrise Pipeline medicine go down–in a most delightful way. (Note that we think the Atlantic Sunrise is a great project and worthy on its own, without need for corporate bribes to hush up local opposition.) Here’s the details of which projects in PA got funded, and where…
Read More “More Pipeline Payola: Williams Doles Out $2.5M in PA Grants”
Energy Services | Energy Transfer Partners | Industrywide Issues | M&A | Williams

Q: Why is ETE Making a Play to Buy Williams? A: Marcellus/Utica
June 24, 2015June 24, 2015

On Monday, MDN brought you what has to be the biggest midstream news in the Marcellus/Utica for 2015: a proposed hostile takeover of Williams by Energy Transfer Equity (see Energy Transfer Makes “Indecent Proposal” to Buy Williams for $48B). We’re a bit dubious about the benefits of a proposed takeover/merger because the market loses competition with such mega mergers. But Wall Street loves these kinds of deals. We see jobs lost due to consolidation and price increases due to less competition. Wall Street sees fatter profits from “economies of scale” and other euphemisms they use for lost jobs and less competition. We spotted a Reuters article that evaluates the proposed ETE deal from the perspective of what it means (for ETE) in the Marcellus/Utica. The story says the primary motivator on the part of ETE in pursuing a takeover/merger with Williams is that it would give ETE a “dominant position” in the Marcellus/Utica…
Read More “Q: Why is ETE Making a Play to Buy Williams? A: Marcellus/Utica”
Energy Services | Williams

Williams Appoints New Top Attorney
June 23, 2015June 23, 2015

Clarification: The new Williams lawyer, Sarah Miller, was not hired specifically to fend off the hostile takeover bid from ETE. Our original headline and lead sentence for this story may have left that impression (since updated). Ms. Miller, as we point out in the article, has worked for Williams for the past 15 years. Her appointment, according to a Williams official, was already in the works long before the ETE bid. However, we maintain that Ms. Miller will be very busy in the coming weeks and months because of the ETE bid.

Williams has a new top lawyer who will help defend the company in a hostile takeover bid from Kelcy Warren, CEO of Enterprise Transfer Equity. Yesterday MDN shared the news that Warren, after six months of unsuccessfully trying to woo Williams into a merger deal, has dropped that effort and begun a new effort–a hostile takeover of the company (see Energy Transfer Makes “Indecent Proposal” to Buy Williams for $48B). We don’t read much into the retirement of the previous top attorney at Williams–Craig Rainey. The press release says he retired. Since he was somewhere around 63 years old by our calculations, it’s not surprising Rainey retired. Replacing him is Sarah Miller who has worked for Williams for the past 15 years in various legal roles. Miller has been the “acting” top attorney at the company since March. Miller now has her hands full with an unwanted effort to take over the company…
Read More “Williams Appoints New Top Attorney”
Energy Services | Energy Transfer Partners | Industrywide Issues | M&A | Williams

Energy Transfer Makes “Indecent Proposal” to Buy Williams for $48B
June 22, 2015June 22, 2015

Sunday evening MDN spotted what has to be THE biggest midstream story of 2015: Somebody wants to buy out and take over Williams Companies. The biggest midstream story of 2014 was the buyout of Access Midstream (the former Chesapeake Midstream) by Williams, creating a company that is nearly the size and certainly a worthy rival of the country’s biggest pipeline company Kinder Morgan (see Big News: Williams Partners Buying Access Midstream for $6B). Williams said at the time the “total transaction value” (or TTV) would create a combined company worth nearly $50 billion (see Deal Details for Williams/Access Midstream Merger – TTV of $50B!). Sunday evening Williams said, in a pair of prepared press releases, that somebody (they wouldn’t name who) has made an “unsolicited proposal” (almost sounding like an indecent proposal) to buy Williams for $64 per share, or a total deal worth $48 billion. Williams has rebuffed the offering, hiring some high-powered bankers to help them out of this mess. The guy and company making the offer, it has since been revealed, is none other than Kelcy Warren, CEO of both Energy Transfer Partners and Energy Transfer Equity, the main shareholder of ETP. ETP is very active in the Marcellus/Utica. We have as much as we can gather on Warren, background on ETP/ETE, his indecent proposal to Williams, and what Williams–one of if not THE largest midstream companies in the northeast–is doing in response to Warren’s proposal…
Read More “Energy Transfer Makes “Indecent Proposal” to Buy Williams for $48B”
Energy Services | Energy Transfer Partners | Industrywide Issues | M&A | Williams

ETE Says Shareholders Big Winners in Potential Williams Merger
June 22, 2015June 22, 2015

Energy Transfer Equity is offering their side of the story in the proposed merger/takeover of Williams. MDN’s lead story today is about that merger. On Sunday, Williams issued a pair of press releases refusing to name who the suitor is, but essentially said that somebody (ETE) is making an offer to buy them (see Energy Transfer Makes “Indecent Proposal” to Buy Williams for $48B). As you know, there’s always two sides to a story. ETE, the main investor in Energy Transfer Partners, is offering their side of the story. ETE’s version is much more lengthy than Williams and includes the claim that the ETE proposal offers a 32.4% premium to Williams stockholders “with a high degree of transaction certainty”…
Read More “ETE Says Shareholders Big Winners in Potential Williams Merger”
Broome County | Energy Companies | Energy Services | Hilcorp Energy | Industrywide Issues | Lawrence County | New York | Pennsylvania | Pipelines | Williams

Tackling a Tough Issue: Compressor Stations Near Populated Areas
June 12, 2015June 12, 2015

There’s no denying that compressor stations located in populated neighborhoods create problems. We have two examples to share–one from Lawrence County, PA, and one from Broome County, NY (MDN’s backyard). The usual complaint about compressor stations–required to compress natural gas and send it on its way through a pipeline system–is the noise. Noise seems to be the chief issue with a compressor station in Lawrence County, PA where landowners, many of them (most? all?) have signed leases with Hilcorp, the company that owns the compressor station in Mahoning Township, a township that borders Ohio. Although noise has also been an issue at the compressor station in the Town of Windsor, NY (Windsor borders Pennsylvania)–about five miles from the border of the City of Binghamton–noise at the Williams compressor station is now largely mitigated. In the case of the Williams compressor, the concerns by those who live closest to it are regular releases of mercaptan and constant truck traffic to and from the station…
Read More “Tackling a Tough Issue: Compressor Stations Near Populated Areas”