Williams Partners Provides Update on Investment in Utica Shale Joint Venture; Caiman Energy II JV to Partner with Dominion

TULSA, Okla.--(BUSINESS WIRE)--

Williams Partners L.P. WPZ today announced an update on its 47.5 percent interest in Caiman Energy II, which was established by Caiman and its investors to develop midstream infrastructure serving oil and gas producers in the Utica Shale. In addition to Williams Partners, investors in Caiman Energy II include EnCap Flatrock Midstream of San Antonio, Highstar Capital of New York and management.

Williams Partners plans to contribute approximately $380 million through 2014 to help fund Caiman Energy II's new Blue Racer Midstream venture. EnCap Flatrock Midstream is expected to contribute up to $285 million with Highstar contributing up to $95 million. Caiman and Dominion formed Blue Racer, which will leverage Dominion's existing business in the Utica with significant additional new capacity designed to meet producer needs as the Utica Shale acreage is developed. Midstream services offered will include gathering, processing, fractionation, and natural gas liquids transportation and marketing.

“Through our interest in Caiman Energy II, Blue Racer Midstream gives us additional exposure to the Utica Shale, which is one of the fastest growing resource plays in North America,” said Alan Armstrong, chief executive officer of Williams Partners' general partner. “We believe this venture has all the elements to be highly successful in delivering timely, safe and reliable midstream services to producers in this fast-growing area. We are excited to be partnering with Dominion, a well established operator with well positioned assets in this region, and Caiman who continues to demonstrate strong development capabilities.”

The approximate $380 million that Williams Partners expects to invest in Caiman Energy II was included in previous 2012-14 capital expenditure guidance. The partnership expects growing cash distributions from its investment in Caiman Energy II beginning with approximately $20 million in 2014. Williams expects to account for its Caiman Energy II investment using the equity method.

Williams Partners' current ownership interest in Caiman Energy II is 47.5 percent with EnCap Flatrock Midstream owning 35.6 percent, Highstar Capital owning 11.5 percent and management owning 4 percent.

About Williams Partners L.P. WPZ

Williams Partners L.P. is a leading diversified master limited partnership focused on natural gas transportation; gathering, treating, and processing; storage; natural gas liquid (NGL) fractionation; and oil transportation. The partnership owns interests in three major interstate natural gas pipelines that, combined, deliver 14 percent of the natural gas consumed in the United States. The partnership's gathering and processing assets include large-scale operations in the U.S. Rocky Mountains and both onshore and offshore along the Gulf of Mexico. Williams WMB owns approximately 70 percent of Williams Partners, including the general-partner interest. More information is available at www.williamslp.com, where the partnership routinely posts important information.

Portions of this document may constitute “forward-looking statements” as defined by federal law. Although the partnership believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. Any such statements are made in reliance on the “safe harbor” protections provided under the Private Securities Reform Act of 1995. Additional information about issues that could lead to material changes in performance is contained in the partnership's annual reports filed with the Securities and Exchange Commission.