Mon, Jun. 22, 3:30 PM
- Williams Cos. (WMB +23.8%) must either show its ability to stand on its own merit or accept a better takeout offer, analysts say after the company rejected a $48B buyout bid from Energy Transfer Equity (ETE -3.8%).
- Analysts suggest that given the limited number of potential buyers, ETE stands a good chance of eventual success, perhaps after raising its offer; Raymond James analyst Darren Horowitz, for one, expects a higher offer to come in, since pipelines remain a coveted, high-value infrastructure that is attractive to own even though oil and gas prices have plunged.
- Jefferies' Christopher Sighinolfi says disclosing the bid was a "defensive move" by WMB, and says he is waiting to learn of WMB's timetable for completing its strategic review.
- Argus says WMB management has demonstrated its ability to create shareholder value through both acquisitions and divestitures; the firm believes that the rejection of ETE's all-stock offer is prudent, and that ETE will need to raise its offer if it wishes to pursue the deal (Briefing.com).
- While WMB surges, Williams Partners (WPZ -6.9%) is sharply lower, since ETE's offer was contingent on the termination of WMB's pending absorption of WPZ.
- Analysts say other companies that run big pipelines may be merger candidates, including Oneok (OKE, OKS) and regional specialists such as Targa Resources (TRGP, NGLS).
Wed, May 6, 5:40 PM
Dec. 10, 2014, 12:58 PM
- Energy stocks are slammed across the board as oil prices take another nosedive (I, II), with the losses heaviest on shares of small, U.S.-based oil and gas producers.
- “Financial leverage is being thrown out the window, and everything else is being purged as well,” says Simmons analyst Bill Herbert, who adds that cuts to production budgets in the coming year likely will mean more pain for oil service companies.
- Among the hardest-hit shares: TPLM -15.2%, CRK -12.4%, GDP -11.9%, NOG -9.5%, AREX -8.6%.
- Investors have been less quick to dump shares of integrated oil companies, but today they have been smacked too: XOM -2.8%, CVX -2.9%, COP -2.3%, BP -2%, RDS.A -2.2%, TOT -2.3%.
- Today's worst performers on the S&P 500 include OKE -8.2%, DNR -7.4%, NE -5.6%.
- Service companies also are down: SLB -2.6%, HAL -2.7%, WFT -6.6%, BHI -2%.
- ETFs: XLE, ERX, VDE, OIH, ERY, DIG, DUG, IYE, XES, IEZ, PXI, FENY, PXJ, RYE, FXN, DDG
Jun. 16, 2014, 8:58 AM
- Williams Cos. (WMB) +12.3% premarket after agreeing to buy Access Midstream Partners (ACMP) for $6B and is upgraded to Buy from Neutral at Jefferies with a $65 price target.
- Jefferies notes WMB's yield/dividend growth is now consistent with pure-play general partner peers; says Plains GP (PAGP), Targa Resources (TRGP) and ONEOK (OKE) trade with an average ~3.5% dividend yield, which would equate to a $71 price for WMB.
- Credit Suisse raises its WMB target price to $65 from $50, and believes a significant re-rating should ensue.
Feb. 3, 2014, 2:18 PM
- ONEOK (OKE -2.8%) completes the spinoff of its natural gas distribution business into a separate, publicly traded company to begin trading on the NYSE with the symbol OGS.
- The new company, One Gas, includes Kansas Gas Service, Oklahoma Natural Gas and Texas Gas Service.
- Current OKE shareholders will receive one share of the new company for every four shares of OKE they possess.
Feb. 3, 2014, 12:51 PM
Jul. 25, 2013, 2:58 PMONEOK (OKE +22.4%) is soaring in reaction to plans to spin off its natural gas distribution business into a stand-alone publicly traded company. Morgan Stanley sees still more upside ahead, upgrading shares to Overweight with a $64 price target; it believes OKE will pay a materially higher dividend with growth potential of 20% through 2015. | Comment!
Jul. 25, 2013, 9:15 AM
Jul. 25, 2013, 8:46 AMONEOK (OKE) plans to spin off its natural-gas distribution business into a standalone publicly traded company called ONE Gas, which will be headquartered in Tulsa, Oklahoma, and consist of Oklahoma Natural Gas Company, Kansas Gas Service and Texas Gas Service. Shareholders will receive an as yet unspecified number of shares in ONE Gas in a transaction that is expected to be tax-free. The new company will trade on the NYSE under the OGS ticker symbol. Shares +7.4%. (PR) | 1 Comment
Feb. 26, 2013, 12:21 PMONEOK Partners (OKS -4.4%) drops sharply after Credit Suisse downgrades OKS to Neutral and cut its target price to $58 from $67. OKS will have $4B-plus of fee-based projects placed in service over the next three years, but CS says it is a victim of weak natural gas liquids prices and collapsing spreads, undercutting prospects. Distribution growth/unit was cut by 850bp, to 2.8%, for 2013. | 2 Comments
Feb. 27, 2012, 5:45 PMOneok Partners (OKS), which made a new closing high today, falls 3.6% AH after announcing public and private stock offerings of 7M shares apiece, good for proceeds of $856.8M based on today's close. Oneok (OKE), which currently owns 42.8% of OKS, will be the sole buyer for the private offering. Oneok Partners says it will partly use the offering proceeds to pay down debt. | 3 Comments
Feb. 15, 2012, 6:15 PM
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