Williams Energy Ventures Completes Purchase of Pekin Energy Company

Strategic Insights -

Williams Energy Ventures, a subsidiary of The Williams Companies, Inc., has completed the purchase of Pekin Energy Company from a partnership of Texaco Inc., CPC International Inc., and Enzyme Bio-Systems Ltd. The facility produces 100 million gallons of fuel-grade and industrial ethanol annually and is expected to contribute to Williams' earnings immediately. The purchase price was $167 million, and the deal was subject to regulatory approval.

Pekin Energy employs about 220 people, with no significant changes to the workforce planned. The company's executive level will also remain unchanged. Williams Energy Ventures owns two-thirds of Nebraska Energy L.L.C., which is constructing a 30-million-gallon-a-year fuel ethanol plant at Aurora, Neb. The new plant is expected to begin production this fall. In addition, Williams Energy Ventures plans to nearly double its ethanol sales volume this year, reaching 4.8 million gallons.

Williams' companies consist of a diverse range of businesses, including natural gas pipelines, natural gas gathering and processing, energy marketing and trading, petroleum products pipelines, telecommunications equipment sales and service, and fiber-optic video services.

Key Takeaways:

  • Williams Energy Ventures has completed the purchase of Pekin Energy Company, a fuel-grade and industrial ethanol producer, for $167 million.
  • The facility produces 100 million gallons of ethanol annually and is expected to contribute to Williams' earnings immediately.
  • Pekin Energy employs about 220 people, with no significant changes to the workforce planned.
  • Williams Energy Ventures owns two-thirds of Nebraska Energy L.L.C., which is constructing a 30-million-gallon-a-year fuel ethanol plant at Aurora, Neb.
  • The new plant is expected to begin production this fall and will be operated by Williams Energy Ventures.
  • Williams Energy Ventures plans to nearly double its ethanol sales volume this year, reaching 4.8 million gallons.

Sources:

  • PR Newswire
  • The Williams Companies, Inc. (NYSE: WMB)
  • Texaco Inc. (NYSE: CPC)
  • CPC International Inc. (NYSE: CPC)
  • Enzyme Bio-Systems Ltd.

Statistics:

  • The facility produces 100 million gallons of fuel-grade and industrial ethanol annually.
  • The purchase price was $167 million.
  • Pekin Energy employs about 220 people.
  • Williams Energy Ventures plans to nearly double its ethanol sales volume this year, reaching 4.8 million gallons (with a 1994 volume of 2.4 million gallons).
  • Nebraska Energy L.L.C. is constructing a 30-million-gallon-a-year fuel ethanol plant at Aurora, Neb.