Energy Transfer Partners, L.P.NYSE
Yesterday, 10:03 AM
- Outrigger Energy, backed by P-E firm Denham Capital, is nearing a sale to a publicly traded oil and gas midstream services provider, with an affiliate of EnLink Midstream Partners (ENLK -0.5%) and EnLink Midstream LP (ENLC -0.3%) the most likely buyer, Forbes reports.
- Targa Resources (TRGP +0.1%) and Energy Transfer Partners (ETP -0.2%) also are potential acquirers, according to the report.
- Denver-based Outrigger owns oil and gas pipeline and processing assets in west Texas' Permian Basin, the Rockies and the Mid-Continent.
Tue, Nov. 22, 3:18 PM
- Energy Transfer Partners (ETP -3%) and Sunoco Logistics Partners (SXL -2.7%) are lower for a second straight session following yesterday's unit-for-unit merger deal (I, II), while Enbridge Energy Partners (EEP +2.8%) rises for a third consecutive day.
- Stifel downgrades ETP to Hold from Buy with a $37 price target, trimmed from $48, as the firm sees little upside at current valuations given that units now effectively track movements in the price of SXL, which the firm reiterates at Hold with a $24 target, cut from $29.
- Tudor Pickering says it would be buyers of SXL “despite investor fears of a forced SXL takeout bid materializing,” and adds that the deal cuts yield for ETP unitholders in exchange for no premium takeout, while SXL owners “have their asset base diluted to shore up ETP’s unsustainable payout."
Mon, Nov. 21, 3:18 PM
- Both Sunoco Logistics Partners (SXL -7.8%) and Energy Transfer Partners (ETP -7.9%) trade sharply lower on news of the plan for the much smaller SXL to purchase ETP that will result in a net implicit reduction in distribution yield for ETP unitholders.
- ETP investors will receive 1.5 units of SXL for each unit of ETP they own but their payouts will be reduced since SXL has a much lower dividend yield; CreditSights says the merger amounts to a “stealth distribution cut” that reduces the ETP cash payout by 29%.
- Bernstein Research notes CEO Kelcy Warren chose a path that protects Energy Transfer Equity (ETE +2.8%), the entity in the group of companies in which he holds more than 10% of shares outstanding.
- But analysts generally are pleased that the deal - if it is approved by unitholders - will simplify ETE's complex structure, which also includes Sunoco LP (SUN -3.6%) and PennTex Midstream Partners (PTXP +0.8%); Baird analyst Ethan Bellamy calls the deal "a major step in untangling... the most complex web of publicly traded partnerships."
- Seaport Global's Sunil Sibal calculates that the deal will lead to a distribution reduction of ~$1.22 per ETP unit, or $650M, but could turn out well in the long run, lowering the cost of capital through the Energy Transfer complex and positioning it for acquisitions as the industry continues to consolidate.
Mon, Nov. 21, 9:42 AM
- Sunoco Logistics Partners (SXL -1.6%) agrees to acquire Energy Transfer Partners (ETP -1%) in a unit-for-unit transaction.
- ETP unitholders will receive 1.5 common units of SXL for each common unit of ETP they own, which equates to a 10% premium to the volume weighted average pricing of ETP’s common units for the last 30 trading days.
- The companies say the combined partnership will offer increased scale and diversification across multiple producing basins and have greater opportunities to more closely integrate SXL's natural gas liquids business with ETP's natural gas gathering, processing and transportation business; the companies also anticipate more than $200M/year in commercial synergies and costs savings by 2019.
- Kelcy Warren, Chairman of parent company Energy Transfer Equity (ETE +10%), will be CEO of the combined company; ETE will continue to provide all incentive distribution right subsidies that are currently in effect for both partnerships.
Tue, Oct. 25, 8:33 AM
- Energy Transfer Partners (NYSE:ETP) agrees to acquire certain interests in PennTex Midstream Partners (NASDAQ:PTXP) for ~$640M in cash and stock.
- ETP will own 100% of PTXP’s general partner, with all of its incentive distribution rights, as well as 6.3M common units and all 20M subordinated units of PTXP, representing ~65% of the total limited partner interests in PTXP.
- ETP says the PTXP's complementary asset base positions the company for significant growth and value creation in northern Louisiana.
Mon, Sep. 26, 4:53 PM
- Sunoco Logistics Partners (NYSE:SXL) -3.3% AH after agreeing to acquire Vitol's Permian Basin crude oil unit for $760M plus working capital.
- SXL says the acquisition will provide a ~2M-barrel crude oil terminal in Midland, Tex., a crude oil gathering and mainline pipeline system in the Midland Basin, including a significant acreage dedication, and crude oil inventories related to Vitol’s crude oil purchasing and marketing business in west Texas.
- In connection with the deal, Energy Transfer Partners (NYSE:ETP) and Energy Transfer Equity (NYSE:ETE), as the owners of SXL general partner Sunoco Partners, will reduce incentive distributions by $60M over a two-year period.
- To help fund the deal, SXL announces a 21M-unit public offering, with an underwriters option to purchase up to 3.15M additional common units.
Thu, May 5, 12:38 PM
- "We can't close this deal," Energy Transfer Equity (ETE +6.4%) CEO Kelcy Warren says of the takeover of Williams Cos. (WMB +3.9%) without the tax opinion that would deem the transaction an exchange that frees shareholders from tax liabilities.
- "Absent a substantial restructuring of this transaction, which Energy Transfer has been very willing and actually desiring to do, absent that, we don't have a deal," Warren said in today's earnings conference call, adding that ETE would be open to a deal that would remove the cash portion of its cash-and-stock bid for WMB.
- ETE general counsel Thomas Mason said on the call that adviser Latham & Watkins had looked for a solution to the tax problem but had failed to find one, and legal advisers reached the same conclusion; he said either party could walk away from the deal after a June 28 deadline, but that ETE is "not focused" on that right now.
- Also: ETP +8.9%, WPZ +3.4%.
- Now read Energy Transfer nixes Williams proposals to resolve tax issues
Tue, Apr. 19, 12:34 PM
- Research firm CreditSights thinks now is "a great entry point" to buy Williams Partners (WPZ +4.9%) bonds even as the merger plans of parent company Williams Cos. (WMB +4.2%) and Energy Transfer Equity (ETE +5.4%) appear to become more remote.
- CreditSights upgrades WPZ bonds to Outperform from Market Perform, liking the bonds whether or not the merger closes and believing that WMB has the balance sheet and the incentive to keep its MLP subsidiary investment grade; if the merger does go through, the firm says the just-filed S4 on the deal gives new disclosure that ETE will eliminate its dividend entirely in order to support investment grade ratings at Energy Transfer Partners (ETP +2.8%) and WPZ.
- The firm believes ETE is hoping WMB shareholders will vote against the merger, and that recent negative disclosures are part of that effort.
- Now read Williams is worth owning even if the Energy Transfer Equity merger fails
Mon, Apr. 18, 3:12 PM
- Energy Transfer Equity (ETE +9.5%) discloses that its lawyers may not be able to deliver a tax opinion for its takeover of rival Williams Cos. (WMB -4.6%).
- ETE and WMB need a “721 Opinion” to complete their merger, and the law firm has told ETE that it be unable to deliver the opinion if the deal’s closing were to occur at the present date, according to an SEC filing.
- ETE says in the filing that WMB disagrees with its position on the tax issue, and that the two companies are in talks on the impact this could have on the closing of the deal.
- Related tickers: ETP +4.3%, WPZ -2.9%.
- Now read Energy Transfer Equity's merger with Williams is crumbling
Thu, Apr. 7, 6:56 PM
- Williams Cos. (NYSE:WMB) and Energy Transfer Equity (NYSE:ETE) have enjoyed strong gains since WMB announced yesterday that it was suing ETE over private shares that were issued to help finance their $32.5B merger, as investors bet that the deal is falling apart.
- "Market participants look at the move as a potential step toward blowing up the deal, and the securities of all the involved entities have benefited from that possibility," Reorg Research writes, adding that ETE may have violated one of the terms of their agreement, and that If WMB kills the merger because of ETE’s breach, ETE may have to reimburse WMB's fees and expenses up to $100M.
- “I’ve never seen anything like this - a board that hates what the management team is doing enough to sue, but still wants to do the deal,” says Hinds Howard, an MLP portfolio manager at CBRE Clarion Securities.
- In the past two trading days: ETE +9.6%, WPZ +31.7%, WMB +6%, ETP +4.4%.
- Now read Energy Transfer Equity paints a dire picture of the Williams merger
Wed, Apr. 6, 9:59 AM
- Williams Companies (WMB +0.5%) says it is suing Energy Transfer Equity (ETE +3.7%) and Chairman Kelcy Warren to block a private preferred share offering disclosed last month, saying it was a breach of their merger agreement and provides certain ETE investors preferential treatment on its distributions.
- ETE issued convertible units to certain investors, including Warren, last month to raise funds to help cover the $6B it will owe WMB investors when the deal closes.
- WMB says it has commenced litigation to protect the interests of its stockholders while remaining committed to working with ETE to ensure the financial strength of the combined company.
- ETP +3.3%, WPZ +2.3%.
- Now read Energy Transfer Partners cut to Hold at Stifel, citing "looming challenges"
Thu, Mar. 24, 11:16 AM
- Energy Transfer Equity (ETE -4.9%) drastically cuts expectations for its takeover of Williams Cos. (WMB -7.2%), due in part to lower oil prices and the increased cost of capital.
- ETE now says it expects the base case for EBITDA from commercial synergies from the deal to total ~$170M/year by 2020, compared with previous forecasts of more than $2B; EBITDA from commercial synergies could total ~$590M/year if oil prices recovery to the $53.97-$64.26/bbl range in 2020, but that still would be far below previous forecasts.
- ETE also says it plans to grant awards under a long-term incentive plan that will dilute WMB stockholders' position in Energy Transfer Corp., the vehicle ETE is launching to buy WMB; the company also says it likely would need to significantly reduce its presence in WMB's home state of Oklahoma.
- Also: ETP -1.3%, WPZ -4.4%.
Thu, Mar. 10, 2:39 PM
- Williams Cos. (WMB -9.3%) shares have dropped as much as 17% today thanks to Energy Transfer Equity's (ETE -6.8%) dilutive effort to raise cash to help fund its $14B-plus takeover of the company.
- ETE disclosed the private offering in a filing after yesterday's close and said it had intended to offer the units to all of its shareholders, but WMB would not give its consent.
- WMB says it has offered to work with ETE to find a solution to financing a deal that is more beneficial for both companies’ investors, and remains open to working collaboratively to improve the financial profile of both companies.
- The spread between WMB's share price and the per share value of ETE's bid for WMB also widened significantly to ~19%, suggesting investor skepticism that the companies would be able to close the deal.
- WPZ -2.4%, ETP -0.1%.
Fri, Feb. 26, 10:58 AM
- CNBC's David Faber reports that Energy Transfer Equity (ETE +2.5%) likely will take the Williams (WMB +1.2%) merger proposal to a shareholder vote, and says his sources indicate there has not been any conversation or contemplation of paying $2B to get out of deal.
- Faber notes that the merger contract is so tight that it will be very difficult for ETE to get out.
- A NY Times article yesterday said ETE had considered but never presented an offer of a one-time payment of more than $2B to WMB to walk away.
- Faber also says the market is focused on whether ETE will try to access the capital markets to bolster its ability to finance activities, based on remarks from yesterday's Energy Transfer Partners (ETP +2.1%) earnings conference call.
- Also: WPZ +4.3%.
Thu, Feb. 25, 2:55 PM
- Williams Cos. (WMB -5.4%) plummets 10% before trading is halted, then bounces slightly, following a NY Times report that Energy Transfer Equity (ETE +0.7%) is considering pulling out of their planned merger.
- ETE execs are "suffering from a giant case of buyer’s remorse," and are "frantically" searching for a way to pull out of the deal, according to the report, which says ETE considered but never presented an offer of a one-time payment more than $2B to WMB to walk away.
- Shares of both companies have plunged more than 60% and shed a combined $37B in market value in the five months since the takeover was closed, and the value of the deal lost another ~$1B today after ETE announced disappointing Q4 earnings and the stock dropped to its lowest level since 2009.
- Also: ETP -10.1%, WPZ -6.9%.
Mon, Feb. 22, 6:35 PM
- Some analysts believe the merger of Williams Cos. (WMB, WPZ) and Energy Transfer Equity (ETE, ETP) is inching closer to fruition, after WMB said last week that it remains committed to the much-maligned deal.
- Raymond James analyst Darren Horowitz believes the highest probability outcome remains that WMB and ETE continue with the previously agreed-upon merger terms, and that it is in management’s best interest to provide as much deal-related transparency as legally possible.
- Rob Thummel, portfolio manager at Tortoise Capital, thinks more encouragement came from some reassurance on WMB's earnings conference call that the company is not overly exposed to the risk that Chesapeake Energy (NYSE:CHK), which provides about 18% of WMB's cash flow, could go bankrupt and stop making payments.
- However, CTFN reports that January's $1B private placement of debt by WMB subsidiary Transcontinental Gas Pipe Line has led an investor to question the "limitation of guarantees” covenant as it may relate to the merger.