Williams Announces Agreement to Acquire All Public Equity of Williams Partners L.P.; Plans 3Q 2015 Dividend Increase to $0.64 or $2.56 on an Annualized Basis; Expects Dividend Growth of 10%-15% Annually Through 2020
Expect Transaction to be Meaningfully Accretive to Cash Available for Dividends with 2016-2018 Average Annual Accretion of over 10%; Coverage to Build from Over 1.1x in 2016 to Nearly 1.2x in 2018
Cash Flow Accretion and Extended Cash Tax Benefits Expected to Enable Extended Duration of 10-15% Dividend Growth Through 2020
Enhanced Growth Profile and Lack of Incentive Distribution Rights Expected to Significantly Lower Williams’ Cost of Capital for its Robust Portfolio of Natural Gas-Focused, Fee-Based Growth Projects as well as Potential M&A
Additional Transaction Benefits Anticipated: Simplified Corporate Structure, Governance and Synergies; Strong Investment-Grade Credit Ratings Consistent with Williams Partners’ Current Ratings and Outlook
$13.8 Billion Deal Structured as an All Stock-for-Unit Transaction, with Williams Partners Public Unitholders Receiving 1.115 Williams Shares for each Williams Partners Unit
Williams Partners’ Public Unitholders to Receive a 14.5% Premium to its 10-Trading Day Average Closing Price and a 12.6% Premium to its 20-Trading Day Average Closing Price
Williams Partners’ Public Unitholders Will Benefit from Enhanced Growth Prospects and Increased Equity Valuation of the Pro Forma Entity and Stronger Pro Forma Coverage Levels
Merger Expected to Close in the Fall of 2015 Following Regulatory Filings and a Successful Williams Shareholder Vote on Transaction
Williams Announces Planned 3Q 2015 Dividend Increase of 6.7% to $0.64 per Share, or $2.56 per Share on an Annualized Basis, and Expects Dividend Growth of 10%-15% Annually Through 2020
2016 Annual Dividend Expected to be $2.85 per Share, up 6.3% from the Previously Guided $2.68 per Share and Representing About 20% Increase from the Previous 2015 Dividend Guidance of $2.38 per Share
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