Williams Companies offers investors exposure to growth in midstream infrastructure demand, particularly in the Utica and Marcellus shales.
Acquiring GIP's interest in Access Midstream Partners and merging with Williams Partners creates a more stable, diversified MLP holding and one with significant growth projects contemplated over the next decade.
Williams Companies seems ready for a decade where distributable cash flow could grow more than 10% a year, supporting a fair value in the mid-$60s.
Kodiak Oil & Gas (KOG +5.3%) and Williams (WMB +4%) open higher after Kinder Morgan (KMI +7.2%) and El Paso's (EP +23.8%) merger announcement boosts hopes of further consolidation among U.S. natural gas firms.
Williams Cos. (WMB +1.6%) will spend up to $400M to expand its Louisiana production facility, as an overwhelming supply of cheap natural gas continues to give incentive for investment in U.S. petrochemical production.
Williams Cos. (WMB +4.3%) is higher this morning after raising its quarterly dividend by 25% and detailing plans to spin off its upstream exploration and production business. The company also said it plans to pay out all of the distributions it receives from Williams Partners L.P.
Southern Union (SUG) says it will enter into negotiations with Williams Cos. (WMB), which just upped its bid for the natural gas pipeline operator to $44/share. SUG's board still recommends Energy Transfer's (ETE) earlier bid, and its decision to provide non-public information does not mean the revised Williams proposal is superior.
Williams (WMB -1%) raises its bid for Southern Union (SUG), offering $44/share in cash. Energy Transfer (ETE) previously bid $40/share, while Williams had originally proposed $39/share. SUG +4.3% to $43.37. (PR)
Williams Cos. (WMB -2.3%) seems likely to move ahead with an offer to top Energy Transfer's (ETE +0.1%) latest $40/share offer for Southern Union (SUG -0.3%) after its board meets this weekend, CNBC's David Faber reports. The proposal probably would include a “hell or high water” provision where the buyer takes the risk if the plan doesn’t work.
In an amended merger agreement, Energy Transfer Equity (ETE) has increased its bid for Southern Union (SUG) to $8.9B, or $40/share, from its original offer of $7.9B. The new proposal tops Williams' (WMB) $8.7B ($39/share) bid. SUG closed at $40.37 on Friday.
Energy Transfer Equity (ETE) warns takeover target Southern Union (SUG) that talking to rival suitor Williams Cos. (WMB) would be a "willful" breach of their $4.2B merger agreement. Although Southern's sharing of information with Williams wouldn't cause a merger cancellation, it "could materially damage the business that Energy Transfer will be acquiring," ETE says.
Southern Union (SUG -0.2%) has begun the process of giving confidential business information to takeover suitor Williams Cos. (WMB +2.8%), according to an SEC filing, despite a warning from existing acquisition partner Energy Transfer Equity (ETE +0.6%) not to do so. Last week, Williams offered ~$5B to upset Southern Union’s sale to ETE.