- Williams Cos. (NYSE:WMB) finished at the bottom of the S&P 500 in today's trade, tumbling 10.7%, while Williams Partners (NYSE:WPZ) finished flat, following news of its plans to restructure its general partner interest in its MLP subsidiary.
- In analyst actions, Jefferies downgraded WMB to Hold from Buy, seeing the moves as under-appreciating WMB's incentive distribution rights and limiting its long-term upside potential, while Stifel upgraded WPZ to Buy from Hold, believing management has positioned WPZ for a sustainable future of growth.
- Raymond James analysts are "relatively constructive" on the revamped Williams' financial footing: WMB "is is giving up longer-term leveraged growth potential in exchange for longer-term stability and a shorter-term boost to its dividend, while [WPZ] is giving up some of its cash payout in exchange for a much more visible (and favorable) outlook from here on out."
- Besides addressing leverage, a simpler structure could lend itself to renewed M&A interest for WMB, Bloomberg's Liam Denning writes.