Williams Partners to acquire Williams Cos. Canadian assets for $1.2B

Williams Partners (WPZ) agrees to acquire Williams Cos. (WMB) Canada operations for $1.2B.

Assets include an oil sands processing plant near Fort McMurray, ~260 miles of natural gas liquids and olefins pipelines, and an NGL/olefins fractionation facility and butylene/butane splitter facility at Redwater, where an expansion project also is underway.

WPZ says the acquisition is immediately accretive and expects the sale to contribute distributable cash flow of $135M-$160M during the remaining 10 months of 2014.

WPZ says it plans to fund the acquisition by issuing WMB 25.6M Class D payment-in-kind limited partner units, $25M in cash and an increase to the general partner's capital account to maintain WMB's 2% GP interest.

Comments (6)
  • ephud
    , contributor
    Comments (4696) | Send Message
    What does this mean to WMB shareholders?
    26 Feb 2014, 05:21 PM Reply Like
  • PalmDesertRat
    , contributor
    Comments (3838) | Send Message
    good question. Sounds like musical chairs, probably for tax reasons.
    26 Feb 2014, 05:48 PM Reply Like
  • glf4mny
    , contributor
    Comments (464) | Send Message
    I guess we will have to wait for one of the SA authors to explain all of this but in the meantime I suggest investors look at this:
    My post about these 2 NY JB shorters was deleted by SA claiming racism. Oh well, Here we go....!!
    26 Feb 2014, 07:27 PM Reply Like
  • 9000
    , contributor
    Comment (1) | Send Message
    we'll see. CEO pinched off $3M of shares yesterday. sweet timing if this drops on the news.
    26 Feb 2014, 08:42 PM Reply Like
  • jmantel02
    , contributor
    Comments (7) | Send Message
    It's an MLP drop-down
    26 Feb 2014, 11:38 PM Reply Like
  • jumpnjoey77
    , contributor
    Comments (1222) | Send Message
    This is like moving something from your right hand to your left hand. My spidey senses are tingling.
    27 Feb 2014, 01:59 AM Reply Like
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