Mon, Sep. 28, 11:39 AM
- Investors are balking at Energy Transfer Equity's (ETE -8.9%) just-announced merger with Williams Cos. (WMB -8.6%), as shares in the two oil and gas pipeline companies sell off sharply.
- WMB appears not to have needed to do much to sweeten its offer: "At first glance, it seems as if the bid matches ETE’s original offer made in June,” Raymond James analysts say - since both companies’ shares have fallen since the potential deal first became public, the headline deal number is now much lower than the $48B value announced in June.
- While plunging oil and natural gas prices have not hit pipeline operators as hard as other energy companies, analysts say the group is facing pressure to merge; prices also have fallen for fuels such as ethane and propane, which has hurt companies like WMB, which processes natural gas.
- Despite the immediate negative reaction, ETE claims the merger will enable it to capture $2.4B or more in commercial and cost-saving synergies over the next few years.
- Kinder Morgan (KMI -3.8%) and Spectra Energy (SE -3.4%) were among the other companies reportedly interested in acquiring WMB.
- Also: WPZ -7.7%, ETP -6.1%.
Wed, Aug. 5, 2:45 PM
- Energy Transfer Equity (ETE -2.9%) has progressed to the second round of bidding for Williams Cos. (WMB -1.7%), a key milestone in its efforts to clinch a friendly takeover, Reuters reports.
- WMB decided to put itself on the auction block after it rejected an acquisition proposal from ETE in June worth ~$53B at the time including the assumption of debt, aimed at disrupting WMB's plans to acquire its pipeline subsidiary Williams Partners (WPZ -3.6%).
- WMB reportedly has attracted other bidders, although it is not yet clear which other companies made it through to the second round; Kinder Morgan (KMI -3.5%) and Spectra Energy (SE +0.4%) reportedly have expressed interest in WMB, but KMI could face significant antitrust hurdles because of its size.
Feb. 4, 2014, 11:44 AM
- Spectra Energy (SE +2.2%) is higher after reporting its Q4 earnings rose 11% Y/Y as it completed the sale of its U.S. operations to Spectra Energy Partners (SEP +0.7%) and boosted revenue in its remaining segments.
- Overall operating revenue jumped 16% to $1.57B, while overall operating expenses increased 11% to $1.09B.
- Operating revenue in its western Canada transmission and processing segment rose 22% to $533M as its Empress NGL business posted stronger earnings due to higher propane sales prices, lower costs and improved contracting structures.
- Distribution revenue rose 12% on higher approved rates and colder weather but was weighed by a lower Canadian dollar and higher operating and fuel costs.
- SEP's Texas Eastern subsidiary files with the FERC to build a ~$468M pipeline extension that would allow it to move natural gas from Ohio to the Gulf Coast.
Oct. 28, 2013, 10:53 AM
- Sandell Asset Management is urging Spectra Energy (SE +0.3%) to present to the market a road map for value creation by the end of the year, Reuters reports.
- One way to unlock shareholder value, the activist investor says, is to swap its 50% interest in DCP Midstream Partners (DPM -0.2%) for equity in Phillips 66's MLP (PSXP +3%) in a deal that could improve the valuation of both companies.
- Sandell reportedly said in an Oct. 2 letter that it believes DCP's assets are a better fit with Phillips 66 Partners; it had pressed SE for changes in a June letter, when it said it believes SE is undervalued and should trade at ~$48//share.
Aug. 6, 2013, 3:45 PM
- Spectra Energy (SE -1.6%) rejects calls from activist shareholder Sandell to sell or spin off its western Canadian pipelines or its stake in DCP Midstream (DPM); selling shares in the Canadian unit would create tax problems and DCP’s rising cash flow will boost SE’s stock price, CEO Greg Ebel says.
- Sandell said last month it considered a sale of assets to the partnership - which SE valued today at ~$9.68B - about a third of its plan for Spectra.
Jun. 12, 2013, 2:54 PMThe action at Spectra Energy may not end with its MLP dropdown news; the company could come under pressure to do more after activist investor Sandell Asset Management says it has amassed a 2.3M-share stake. The hedge fund has told SE to explore alternatives for its Canadian business, including going public, and cut operating costs to return more to shareholders. SE +10.7%, SEP +4.6%. | Jun. 12, 2013, 2:54 PM | Comment!
Jun. 12, 2013, 12:45 PM
Jun. 12, 2013, 9:09 AMSpectra Energy (SE) +9.3% premarket, enjoying at least three analyst upgrades after dropping down its legacy natural gas pipeline and storage assets into Spectra Energy Partners (SEP). Deutsche Bank lifts shares to Buy from Hold, noting SE will receive 50% of the incremental cash flow from the drop-downs, boosting the percentage of its cash flows from its MLP from 8% to 50%-plus. | Jun. 12, 2013, 9:09 AM | Comment!
Jun. 12, 2013, 7:47 AMSpectra Energy (SE) +9% premarket on plans to drop down its remaining U.S. transmission and storage assets to Spectra Energy Partners (SEP) by the end of the year, a move that will allow both companies to increase their dividends. SEP +0.7%. (video: CEO Gregory Ebel talks with Jim Cramer) | Jun. 12, 2013, 7:47 AM | Comment!
Apr. 2, 2013, 4:22 PM
Dec. 24, 2012, 2:57 PM
Dec. 11, 2012, 8:54 AMKinder Morgan Partners (KMP) -2.4% premarket after its $380M sale of the Express-Platte pipeline system to Spectra Energy (SE). "There’s a whiff of desperation about this deal," 24/7's Paul Ausick writes. "The sale seems to be an admission that Kinder Morgan needs cash and this is an attractive property that it can easily convert into cash." | Dec. 11, 2012, 8:54 AM | 10 Comments
Oct. 24, 2012, 10:06 AMSpectra Energy Partners (SEP +1.8%) moves higher after agreeing to acquire a 38.76% interest in Maritimes & Northeast Pipeline from Spectra Energy (SE +0.6%) in a $375M deal. M&N owns a 338-mile mainline interstate natural gas transportation system in the northeast U.S., with a delivery capability of ~0.8B cf/day. | Oct. 24, 2012, 10:06 AM | Comment!
Aug. 31, 2012, 2:56 PMSpectra Energy (SE -0.9%) is downgraded to Equal Weight by Barclays, which cuts its NGL price forecast. The firm now expects an EPS CAGR of 5.4% for the three years ending 2014; combined with a 3.9% yield, it estimates a total return proposition of 9.3%. SE trades at a 2013E P/E multiple of 16.8x and 9x EV/EBITDA, more in line with a reduced rating. | Aug. 31, 2012, 2:56 PM | Comment!
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