Profile: Williams Companies Inc (WMB.N)
23 Sep 2016
The Williams Companies, Inc., incorporated on February 3, 1987, is an energy infrastructure company focused on connecting North America’s hydrocarbon resource plays to markets for natural gas, natural gas liquids (NGLs), and olefins. The Company’s operations are located in the United States, but span from the deepwater Gulf of Mexico to the Canadian oil sands. The Company operates through three segments: Williams Partners, Access Midstream, and Williams NGL and Petchem Services. The Company’s Williams Partners comprised of its consolidated partnership Pre-merger WPZ (Williams Partners L.P.), which includes gas pipeline and midstream businesses. The Access Midstream comprised of its consolidated master limited partnership ACMP (Access Midstream Partners, L.P.), which includes certain domestic midstream businesses that provide gathering, treating, and compression services to producers under long-term, fee-based contracts. The Williams NGL and Petchem Services comprised of certain other domestic olefins pipeline assets and certain Canadian growth projects under development, including a propane dehydrogenation facility and a liquids extraction plant. Other is comprised of corporate operations and its Canadian construction services company.
The Company’s gas pipeline businesses consist of Transco and Northwest Pipeline. The Company’s gas pipeline business also holds interests in joint venture interstate and intrastate natural gas pipeline systems, including a 50 % interest in Gulfstream and a 41 % interest in Constitution. Transco and Northwest Pipeline owns and operates a combined total of approximately 13,600 miles of pipelines with a total annual throughput of approximately 3,870 TBtu (trillion British thermal unit) of natural gas and peak-day delivery capacity of approximately 14 MMdth (million decatherms) of natural gas.
Transco is an interstate natural gas transmission company that owns and operates a 9,600-mile natural gas pipeline system extending from Texas, Louisiana, Mississippi and the offshore Gulf of Mexico through Alabama, Georgia, South Carolina, North Carolina, Virginia, Maryland, Delaware, Pennsylvania and New Jersey to the New York City metropolitan area. As of December 31, 2014, Transco’s system had a delivery capacity of approximately 6.2 MMdth of natural gas per day from its production areas to its markets, including delivery capacity from the mainline to locations on its Mobile Bay Lateral. Transco’s natural gas transportation customers are public utilities and municipalities that provide service to residential, commercial, industrial and electric generation end users. Shippers on Transco’s system include public utilities, municipalities, intrastate pipelines, direct industrial users, electrical generators, gas marketers and producers. Transco has natural gas storage capacity in four underground storage fields located on or near its pipeline system or market areas and operates two of these storage fields. As of December 31, 2014, its customers had stored in its facilities approximately 140 Bcf of natural gas. In addition, wholly owned subsidiaries of Transco operate and hold a 35 % ownership interest in Pine Needle LNG Company, LLC, a LNG storage facility with 4 Bcf of storage capacity.
The Company’s Northwest Pipeline is an interstate natural gas transmission company that owns and operates a natural gas pipeline system extending from the San Juan basin in northwestern New Mexico and southwestern Colorado through Colorado, Utah, Wyoming, Idaho, Oregon, and Washington to a point on the Canadian border near Sumas, Washington. Northwest Pipeline provides services for markets in Washington, Oregon, Idaho, Wyoming, Nevada, Utah, Colorado, New Mexico, California, and Arizona directly or indirectly through interconnections with other pipelines. As of December 31, 2014, Northwest Pipeline’s system, has long-term firm transportation and storage redelivery agreements of approximately 3.9 MMdth/d, was composed of approximately 3,900 miles of mainline and lateral transmission pipelines and 41 transmission compressor stations having a combined sea level-rated capacity of approximately 472,000 horsepower. Northwest Pipeline transports and stores natural gas for customers, including local natural gas distribution companies, municipal utilities, direct industrial users, electric power generators and natural gas marketers and producers. Gulfstream is an interstate natural gas pipeline system extending from the Mobile Bay area in Alabama to markets in Florida. Williams Partners owns, through a subsidiary, a 50 % interest in Gulfstream. Spectra Energy Corporation, through its subsidiary, Spectra Energy Partners, LP, owns the other 50 % interest.
The Company’s midstream business is the natural gas gatherers and processors, has primary service areas concentrated in producing basins in Colorado, New Mexico, Wyoming, the Gulf of Mexico, Louisiana, Pennsylvania, West Virginia, New York, and Ohio. The primary businesses are natural gas gathering, treating, and processing; NGL fractionation, storage and transportation; oil transportation, and olefins production. The Company’s gathering systems receive natural gas from producers’ oil and natural gas wells and gather these volumes to gas processing, treating or redelivery facilities. The Williams Partners’ treating facilities remove water vapor, carbon dioxide, and other contaminants and collect condensate, but do not extract NGLs. The Company’s gas processing services generate revenues primarily from fee-based contracts, keep-whole contracts and percent-of-liquids contracts. Williams Partners owns and operates gas gathering, processing and treating assets within the states of Wyoming, Colorado, New Mexico, Pennsylvania, West Virginia, New York, and Ohio. It also owns and operates gas gathering and processing assets and pipelines within the onshore, offshore shelf, and deepwater areas in and around the Gulf Coast states of Texas, Louisiana, Mississippi, and Alabama.
The Company owns and operates several natural gas treating facilities in New Mexico, Colorado, Texas and Louisiana. At its Milagro treating facility, the Company also uses gas-driven turbines to produce approximately 60 mega-watts per day of electricity, which it primarily sells into the local electrical grid. It also owns and operates fractionation facilities at Moundsville, de-ethanization and condensate facilities at its Oak Grove processing plant, another condensate stabilization facility near its Oak Grove plant, and an ethane transportation pipeline. In addition to its natural gas assets, it owns and operates four deepwater crude oil pipelines and own production platforms serving the deepwater in the Gulf of Mexico. Its offshore floating production platforms provide centralized services to deepwater producers, such as compression, separation, production handling, water removal, and pipeline landings.
The Company’s Canadian operations include an oil sands offgas processing plant located near Fort McMurray, Alberta, and an NGL/olefin fractionation facility and B/B Splitter facility, both of which are located at Redwater, Alberta, which is near Edmonton, Alberta, and the Boreal Pipeline, which transports NGLs and olefins from its Fort McMurray plant to its Redwater fractionation facility. The Fort McMurray extraction plant has processing capacity of 121 MMcf/d with the ability to recover 26 Mbbls/d of olefin and NGL products. Its Redwater fractionator has a liquids handling capacity of 26 Mbbls/d. The Company’s olefins business also operates an ethylene storage hub at Mont Belvieu using leased third-party underground storage caverns. Its olefins production facility has a total production capacity of 1.95 billion pounds of ethylene and 114 million pounds of propylene per year. Its refinery grade propylene splitter has a production capacity of approximately 500 million pounds per year of propylene.
The Company markets NGL products to a wide range of users in the energy and petrochemical industries. It also owns interests in and/or operates NGL fractionation and storage assets. These assets include a 50 % interest in an NGL fractionation facility near Conway, Kansas, with capacity of slightly more than 100 Mbbls/d and a 31.5 % interest in another fractionation facility in Baton Rouge, Louisiana, with a capacity of 60 Mbbls/d. It also own approximately 115 miles of pipelines in the Houston Ship Channel area, which transport a variety of products, including ethane, propane, ammonia, tertiary butyl alcohol, and other industrial products used in the petrochemical industry.
The Access Midstream segment provides gathering, treating, and compression services to producers under long-term, fee-based contracts in Pennsylvania, West Virginia, Ohio, Louisiana, Texas, Arkansas, Oklahoma, Kansas, and Wyoming. The Company owns a non-operated 50 % interest in the Delaware Basin gas gathering system in the Mid-Continent region. The system is comprised of 242 miles of gathering pipeline, located in west Texas. The Utica East Ohio Midstream (UEOM) is a joint project to develop infrastructure for the gathering, processing and fractionation of natural gas and NGLs in the Utica Shale play in Eastern Ohio. The Company along with other equity owners, operates the infrastructure complex, which consists of natural gas gathering and compression facilities, four processing plants with a total capacity of 800 MMcf per day, a 135,000 barrel per day NGL fractionation facility, approximately 600,000 barrels of NGL storage capacity and other ancillary assets, including loading and terminal facilities that are operated by its partner. The Company through its wholly owned subsidiary Appalachia Midstream operates 100 % of and owns an approximate average 45 % interest in 11 natural gas gathering systems that consist of approximately 906 miles of gathering pipeline in the Marcellus Shale region.
Williams NGL and Petchem Services
The Williams NGL and Petchem Services segment consists of certain domestic olefins pipeline assets, certain Canadian growth projects under development, including a propane dehydrogenation facility and a liquids extraction plant. The segment is comprised of projects under development and there are no operating revenues.
Williams Companies Inc
1 One Williams Ctr
TULSA OK 74172-0140