Williams details proposal to merge with Access Midstream

|About: Access Midstream Partners, ... (ACMP)|By:, SA News Editor

Williams Cos. (WMB +0.6%) completes its acquisition of the 50% general partner interest and 55.1M limited partner units in Access Midstream Partners (ACMP +1%).

WMB says the merged MLP would have a 2015 distribution increase of at least 25% above ACMP's current guidance of $2.79/unit, would have a best-in-class distribution growth rate of 10%-12% annually through 2017, and enjoy strong investment-grade ratings: WMB foresees distribution coverage of ~1.2x in 2015 and at or above 1.1x through 2017.

Howard Weil raises its target price for WMB to $68 from $43, noting that not only has ACMP been one of the fastest growing MLP's but the assets are essentially in all of the growing U.S. basins, with the largest drivers of growth in WMB's wheelhouse in the Northeast, the Gulf Coast and the Rockies (Briefing.com).