Seeking Alpha: Williams Companies Offers Growth, Upside, And Risk

Williams Companies (WMB) isn't quite as complicated as Energy Transfer Equity (ETE), but this company too has turned to a model that prioritizes holding GP interests and stimulating MLP growth through drop-downs and growth-oriented capex. Key holding Williams Partners (WPZ) has had its challenges with the erratic progress in the Marcellus and Utica shales, but the combination with Access Midstream Partners (ACMP) should de-risk the cash flow that moves on to Williams Companies, while a slew of growth-oriented projects raise the prospect of double-digit dividend growth across the next decade.

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Williams Companies Offers Growth, Upside, And Risk

Seeking Alpha: Energy Transfer Partners And Equity Offer Complicated Value

If you like complex, convoluted investing stories, Energy Transfer Partners, LP (ETP) and Energy Transfer Equity, LP (ETE) could be right up your alley. Energy Transfer Partners is one of the largest energy MLPs in the country, and a major player in natural gas transportation/storage, along with significant assets in midstream, natural gas liquids, and fuel distribution. Energy Transfer Equity is not only the owner of the general partner interest in ETP, but also the incentive distribution rights and about 52.5 million units, as well as the owner of additional GP/IDR interests in other partnerships.

MLPs are not for every investor, as they are subject to meaningfully different tax treatment. Nevertheless, both ETP and ETE look interesting at these levels. ETP offers a higher yield and substantially less growth, while ETE could be looking at high-teens distribution growth for multiple years and significant upside to an LNG export project in Louisiana.

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Energy Transfer Partners And Equity Offer Complicated Value

Investopedia: Energy Transfer Equity Mastering The MLP Space

Investors certainly have plenty of choices when it comes to energy master limited partnerships (MLPs). One of the more interesting options these days may well be Energy Transfer Equity (NYSE:ETE). Not only is the company on track to complete its acquisition of Southern Union, but the company also holds the general partner interest and incentive distribution rights for two other MLPs - Energy Transfer Partners (NYSE:ETP) and Regency Energy Partners (NYSE:RGP). With those incentive rights and the potential for cash flow growth at both partnerships, ETE unit holders could look forward to some fairly significant distribution growth in the coming years.

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http://stocks.investopedia.com/stock-analysis/2012/Energy-Transfer-Equity-Mastering-The-MLP-Space-ETP-ETE-RGP-EPD0322.aspx

Investopedia: Can A Change In Priorities Drive Better Distributions From ETP?

A well-run energy MLP can be a beautiful thing for an investor whose inclinations run towards income. With the largest gas pipeline network in Texas and a growing focus on natural gas liquids (NGL), quality of assets is not an issue with Energy Transfer Partners (NYSE:ETP). The issue for shareholders, though, is whether this is the best play on these assets and whether the aggressive asset growth plans will translate into better distribution growth in the near future.

Q4 Results Not All That Great  
Although Energy Transfer Partners did report 17% year-on-year growth in EBITDA for the fourth quarter that was nevertheless about 4% below consensus expectations. That's admittedly not a big miss, but small percentages matter more with energy MLPs and investors' moods were not improved by the below-expectation distributions that the company announced. (For related reading, see EBITDA: Challenging The Calculation.)

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http://stocks.investopedia.com/stock-analysis/2012/Can-A-Change-In-Priorities-Drive-Better-Distributions-From-ETP--ETP-ETE-APU-TGRP-EPD0321.aspx

Investopedia: Southern Union Now A Hot Property

The world of pipelines, gas gathering and midstream assets is usually a pretty sleepy place that offers a lot more in terms of income than in headlines and excitement. With at least two bidders now fighting for Southern Union (NYSE:SUG), though, this quiet patch of the income world has gotten a lot more interesting. (To learn more about he oil and gas industry, check out Oil And Gas Industry Primer.)



Williams Companies Brings the Cash
While Southern Union and Energy Transfer Equity (NYSE:ETE) had previously come together on a somewhat convoluted merger agreement, at $33 a share (for Southern Union), Williams Companies (NYSE:WMB) has shaken things up with an all-cash bid of its own that values Southern Union at $39 per share. Now let the squabbling via press release begin!

When Energy Transfer Equity made its original offer, it was a reasonable premium to the recent trading price of Southern Union, but still a rather good bargain for ETE. Making matters worse, it was a convoluted offering - Southern Union shareholders would receive Series B units that would yield at least 8.25%, but there was a somewhat complicated decision tree that could result in shareholders eventually getting cash, ETE common, Energy Transfer Partners (NYSE:ETP) common, or continuing to hold those Series B units. Some of these permutations would give SUG shareholders a tax-free acquisition premium.


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http://stocks.investopedia.com/stock-analysis/2011/Southern-Union-Now-A-Hot-Property-SUG-WMB-ETE-KMI-OKE0627.aspx