Williams has reached an agreement to acquire MountainWest Pipelines Holding Co. from Southwest Gas Holdings, in a transaction including $1.07 billion of cash and $430 million of assumed debt, for an enterprise value of $1.5 billion.
MountainWest comprises roughly 2,000 miles of interstate natural gas pipeline systems primarily located across Utah, Wyoming and Colorado, totaling about 8 billion cubic feet per day of transmission capacity. MountainWest also holds 56 billion cubic feet of total storage capacity, including the Clay Basin underground storage reservoir, providing valuable service to Western markets. The acquisition price represents an approximate 8x estimated 2023 EBITDA multiple.
“Our natural gas-focused strategy is anchored in having the right assets in the right places to serve our nation’s growing demand for clean, affordable and abundant natural gas. MountainWest is complementary to our current footprint, providing us with infrastructure for natural
