Williams, Williams Partners Sell Canadian Operations

Williams Cos. and Williams Partners LP agreed to sell their Canadian operations to Inter Pipeline Ltd. for a total of 1.35 billion Canadian dollars (US$1.03 billion).

Excluding certain items, Williams Partners is expected to receive roughly $817 million, while Williams is expected to receive $209 million from the deal, which is expected to close this year.

Chief Executive Alan Armstrong said the move marks progress on the pipeline giant's 2016 capital and financing plan released in January.

Williams and Williams Partners last week said they expected the sale of the Canadian business would further reduce the need to access capital markets to raise funds.

Last week Williams also said it was slashing its dividend by 69% so it can reinvest roughly $1.7 billion into affiliate Williams Partners, which needs greater financial flexibility between now and the end of 2017. The cut came in the wake of a failed $33 billion merger with Energy Transfer Equity LP, an oil-and-gas pipeline company based in Dallas.

Mr. Armstrong last week said Williams plans to remain focused on expanding its extensive network of gas pipelines-many of which move fuel from the Gulf Coast to the Eastern Seaboard-a strategy it has followed since spinning off its oil and gas production business several years ago.

Write to Tess Stynes at [e-mail]

(END) Dow Jones Newswires

August 08, 2016 19:05 ET (23:05 GMT)

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