$424 million sale leaves each entity with 50% ownership

TULSA, Okla. – Master limited partnership ONEOK Partners LP (NYSE: OKS) has completed a transaction to sell 49% of its ownership of Overland Pass Pipeline Co. LLC to Williams Partners LP (NYSE: WPZ) for $424 million at closing.

ONEOK Partners will use the proceeds to repay short-term debt and to fund capital projects.

ONEOK Partners and Williams Partners each now owns 50% of Overland Pass Pipeline Co. LLC. Previously, ONEOK Partners owned 99% of the joint venture and Williams Partners owned the remaining 1%.

In July, ONEOK Partners announced it had received notification from Williams Partners of its election to exercise its option to increase its ownership of Overland Pass Pipeline. The company also announced its plans to spend $35 million to $40 million for related capacity expansions for its interest in the Overland Pass Pipeline to transport the additional unfractionated NGL volumes from the new Bakken Pipeline.

As long as Williams Partners owns at least 50% of Overland Pass Pipeline Co., Williams Partners will have the option to become the operator by providing ONEOK Partners at least 30 days notice.

This transaction is not expected to affect ONEOK Partners' 2010 net income guidance of $450 million to $490 million. Earnings from Overland Pass Pipeline Co. will be accounted for prospectively as equity earnings from investments, beginning in September 2010.

Overland Pass Pipeline
The joint-venture company was established in May 2006 to build the Overland Pass Pipeline, a 760-mile natural gas liquids (NGL) pipeline from Opal, Wyo., to the Mid-Continent natural gas liquids market center in Conway, Kan., one of the nation's primary NGL distribution and storage hubs.

The pipeline, which went into service in November 2008, can transport approximately 140,000 barrels per day with the ability to expand capacity to 255,000 barrels per day with additional pump facilities.

Overland Pass Pipeline Company LLC also includes the Piceance Lateral Pipeline, a 150-mile pipeline connecting the Piceance Basin to the Overland Pass Pipeline, and the D-J Basin Lateral Pipeline, a 125-mile pipeline connecting the Denver-Julesberg Basin with the Overland Pass Pipeline. ONEOK Partners, through its subsidiaries, managed the construction projects and is the operator of the pipelines. 

Source:  ONEOK Partners