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
Showing posts with label Williams Companies. Show all posts
Showing posts with label Williams Companies. Show all posts
Tuesday, June 24, 2014
Monday, June 27, 2011
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.
To continue reading, click here:
http://stocks.investopedia.
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.
To continue reading, click here:
http://stocks.investopedia.
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