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Williams Cos. (WMB -4.2%) is downgraded to Market Perform from Outperform at Wells Fargo, citing “a less attractive risk-reward balance when considering the potential outcomes” of the review process on which bid to accept among several potential acquirers.
eastunder
Maybe once it's figured out and if they remain as they currently are, they will announce a div?
I spoke with investor relations today and was told that in the last CC they said the dividend would be 64 cents, but the current silence is deafening. A dividend announcement is way overdue. We are at or past what should be the ex-dividend date.
Yes. I do.
Perhaps it is due to the fact they were in the middle of an auction?
Maybe once it's figured out and if they remain as they currently are, they will announce a div?
What is interesting is that the history for declaration has long passed. They declared Aug 21st in 2013 and 2014.... and 2015 they have gone silent?
http://www.dividendinvestor.com/historical.php?no=37950
Odd indeed.
Looks like they pay late September, so that's in our favor. There is plenty of time to declare and still pay out in this month keeping with the schedule.
Does anyone find it odd that nothing has been released regarding the next x-dividend date and payout date? It should be today or tomorrow and yet no word. Odd...
Williams Cos. (WMB +1.4%) renegotiated contracts with Chesapeake Energy (CHK +5.3%) are supposed to be positive for WMB's EBITDA, but Amey Stone at Barron's says several MLP contracts likely will be rewritten in the coming months resulting in tougher terms for the midstream MLPs that provide the storage and transportation.
Janney analyst Nathan Judge argues that such negotiations are healthy for the recovery of MLPs, saying the deals often will result in positive outcomes for the MLP and may be supportive for a recovery in the group as fears diminish.
The MLP usually has the upper hand in contract renegotiations, Judge believes, as customers that wish to renegotiate must make it economically attractive to the MLP to make changes; also, if the customer expects to grow, it will need to incentivize the MLP to invest, which was clear from the WMB-CHK deal.
I haven't seen any update yet.
Snooze! Where are we in the auction? I though end of Aug ended the bidding?
4 Things Williams Companies Inc. Wants You to Know
Williams Companies Inc. management team updates investors on its business.
http://www.fool.com/investing/general/2015/08/18/4-things-williams-companies-inc-wants-you-to-know.aspx?source=eogyholnk0000001
Williams Companies Inc. (NYSE:WMB) recently reported rather solid second-quarter results. Fueling those strong results was the company's growing supply of fee-based cash flow, which makes it largely immune to the impact of commodity prices. The company discussed that and other topics on its second-quarter conference call with analysts and investors. Here's are four key points the company made clear on that call.
1. We're still in the middle of our strategic review
Despite the strong quarter, one of the clouds currently hanging over Williams Companies is the fact that the company recently rejected a merger proposal from rival Energy Transfer Equity (NYSE:ETE). While it rejected Energy Transfer Equity's initial offer, it did not close the book on a potential deal with Energy Transfer Equity or any other company. Instead, its board opened up a process to review strategic alternatives.
CEO Alan Armstrong led off his prepared comments on the call by updating investors on this process. He said that the company is exploring a "range of strategic alternatives that could include among other things, a merger, a sales of Williams or continuing to pursue the company's existing operating and growth plan." He noted that it's a "robust competitive process" that the company's believes is "the best way to get the best options on the table and to maximize shareholder value." That said, the company has yet to reach a conclusion of this process and won't comment further on the process until it makes its final decision.
2. We still see a lot of growth if we remain independent
The reason remaining independent is still a viable option is because the company has "a strong trajectory of growth in front of us," according to Armstrong. In fact, the company has a backlog of growth totaling more than $30 billion in potential investment opportunities through 2020.
In addition to that, Armstrong also noted that "a tremendous amount of growth continues to come at us." He said that the $30 billion number is "very rapidly growing," but that the company simply hasn't updated the number in a while because it's already so big. Furthermore, he noted that they are seeing a lot of potential for smaller M&A bolt-on opportunities, which is expanding its growth potential. In other words, the company is very excited about its future should it remain independent.
3. Our current operations are very solid
One of the reasons why Energy Transfer Equity would like to buy Williams Companies is because of the aforementioned strong growth it can deliver in the future. However, it's also drawn to the company's current operations, which are really firing on all cylinders right now. Armstrong pointed this out by noting that the company's adjusted EBITDA rose 32% to $1.02 billion while its MLP, Williams Partners (NYSE:WPZ), set a record for distributable cash flow at $702 million. Driving this strength amid the commodity market turmoil is the fact that Williams Partners continues to grow its fee-based revenue, which was up 72% year over year thanks in part to the acquisition of another affiliated MLP. This focus on growing its fees has helped the company more than offset any weakness from the downturn in the commodity market.
4. Dividend growth guidance is affirmed
Until a final decision is made on a sale, Williams Companies continues to operate under the assumption that it will remain independent. That also means that the company still intends to complete its proposed transaction to acquire all of the units of Williams Partners it doesn't own and bring the MLP in-house. As a result of that assumption, Armstrong said that the company was "reaffirming our dividend of $0.64 per share in third quarter of 2015, or $2.56 annualized, and also our dividend of $2.85 in 2016 with 10% to 15% annual dividend growth coming through 2020." It's guidance that would change if the company is acquired by a rival, but despite the renewed weakness in commodities, Williams is still on track to deliver robust dividend growth if it remains independent.
Investor takeaway
Williams Companies continues to operate its business as if it will remain independent. While it's open to a buyout by Energy Transfer Equity or another suitor at a much higher price, it doesn't need a buyout to deliver a compelling return to investors. That's because it has its own growth plan in place that the company believes will deliver strong growth. This puts investors in a good position because even if the company doesn't like the offers it receives, it can stick with what it believes is a really solid plan.
Spectra Energy (NYSE:SE) is bidding for the whole of Williams Cos. (NYSE:WMB), despite its market cap being about half of the latter, Reuters reports.
They should take deal offered in my opinion.
It does seem to go all over the place.
Got to love this action.
Thank you i appreciate your wisdom
I'm fundamental investor looking for a long term annual return on my savings. I don't follow charts. To me, technicals are like driving you car looking in the rear view mirror.
WMB is down a little now because oil is much cheaper and because ETE share price has dropped.
Low oil and gas prices limits what they can demand to transport it. If and when prices come up a little, so will WMB. I see $60 share within 6 months if WTI goes back above $50 and natural gas rises. Those that might enter bidding also see the same thing.
If I was you, I would not worry too much about an entry point at this time. I would jump in with both feet and wade out to chest deep water. I see WMB as probably one of the best investments in the market today.
Tim - help me out here and bear with me
1) WMB wants to merger back with WPZ
2) ETE comes in with an offer of 64.00 a share, but requires WMB to drop the thought of merging back with WPZ
3) WMB refuses the 64.00 a share offer.
4) WMB seeks other offers and enters into an auction
5) WMB is now in the second round of that. Potential bidders, according to reuters and other sources, may be Kinder (although they say too large and could face regulatory issues, TransCanada,
Enterprise products, Phillips 66, and Marathon.
http://www.thestreet.com/story/13247652/1/williams-wmb-stock-down-as-auction-moves-to-second-round.html?puc=yahoo&cm_ven=YAHOO
So - we can assume (which we probably shouldn't assume) that WMB is after a higher price than 64 a share or perhaps WMB would like to see the offer, whatever it may be, include WPZ as well? That's a possibility.
Friday WMB closed at 48.80
Original offer was 64.00 (bump up in chart shows offer day)
Difference is 15.20
Am I nuts or is that a trade in the making under the current circumstance and the retraction in PPS?
Monday I want to buy WMB (I already own WPZ) for trade purposes only. Buy the rumor - sell the news.
What risk am I not factoring in?
Can they change their minds on the Auction process if they don't get what they are after? That's a risk.
If so - Original plan was WMB and WPZ merging so if that is the case - nothing lost nothing gained. It would be what I was expecting and as shareholder with the partners and not the main - is neither here nor there for me.
What if the final offer price comes in lower than 64? Shareholder lawsuits, blah, blah but any offer higher than current PPS will move the stock up to that area or slightly below it. As a trade that's an easy buy the rumor sell the news result and the bump is a "It is what it is" Scenario
So - back to the question...
What risk am I not factoring in? Why shouldn't I buy a few shares of WMB next week?
Inquiring minds want to know. What are your thoughts?
You see this going any lower on the chart ? Looking to add.
Williams: Heads I Win, Tails I Really Win
http://seekingalpha.com/article/3414936-williams-heads-i-win-tails-i-really-win
Aug. 7, 2015 1:19 PM ET
Williams recently rejected an unsolicited takeover bid with a 30%-plus premium. In doing so, the share price increased dramatically, but has since retreated.
Today’s value proposition is predicated on the likelihood of another bid or else the company continuing on as it had planned.
On June 21st of 2015, Williams (NYSE:WMB) announced that it had rejected an unsolicited proposal to be acquired for $64 per share - which at the time represented a 32% premium. The company indicated that the offer "significantly undervalued" Williams and went on to announce that the board had authorized a process to "explore a range of strategic alternatives." The alternative options included actions such as a merger, sale or the continuation of current plan.
Which brings us to the basic coin flip scenario: either Williams is acquired/merged in the short-term or the current plan continues as outlined. Which one is more likely is hard to say, but as this article title suggests it seems to be a "win-win" type of situation. Let's explore both possibilities to get a better feel for each potential outcome.
Sale Or Merger Doesn't Happen
On May 13, 2015, Williams announced an agreement to acquire all of the public equity of MLP, Williams Partners L.P. (NYSE:WPZ). This deal paralleled the previous Kinder Morgan (NYSE:KMI) "roll up" and touted many of the same benefits including: higher dividend guidance, lower cost of capital, tax benefits and a simplified corporate structure.
Perhaps the most relevant piece of information for the income investor was the enhanced dividend guidance. Prior to the May acquisition announcement, here's what the prior guidance looked like:
2015 = $2.38
2016 = $2.68
2017 = $3.01
The new guidance is quite a bit more robust. Here's what the company expects to pay moving forward:
2015 = $2.47
2016 = $2.85
2017 = $3.21
2018 = $3.61
2019 = $4.06
2020 = $4.57
Note that this year's numbers are based on already made payments to go along with the expectation of paying $0.64 and $0.66 in the third and fourth quarters. Moving from 2015 through 2020 the company anticipates growing the payout by 10% to 15% per annum. The above numbers represent the midpoint of these anticipations. Moreover, these dividend expectations were reaffirmed during the most recent earnings release.
This situation would more or less represent a "bonanza" of both dividend and total returns. In the same presentation, the company suggested that 14% to 19% total returns per year through 2020 were quite possible. This sounds a bit lofty, but indeed could be the case in the above assumptions come to fruition.
Over the five and a half year period you might anticipate receiving $19.60 in dividend payments - representing roughly 40% of today's share price. Based on a 4.25% future dividend yield (a baseline provided by the company) this would indicate a future price of roughly $108. Expressed differently, based on the above dividends and today's price, you might anticipate total yearly returns around 19%. (With a 7% future yield, this would represent annual returns on the magnitude of 10% per year, so it's not as though things have to work out perfectly.)
Of course these assumptions may not hold, but it follows that there is at least a propensity to see outstanding results in the coming years. A high starting yield that grows quite fast tends to offer a solid value proposition.
Sale Or Merger Does Happen
On the other side of the coin, you still have the possibility of a sale and merger going through. In fact, recent news has suggested just that. For the second scenario, let's suggest that Williams receives another bid in the short term. Naturally the offer price would be presumably higher - if you already turned down $64 per share, happy to continue on with your original plan, it seems unlikely that a $60 bid would entice further action.
In this scenario you'd expect a higher price, call it $70 per share. It should be made clear that this isn't a prediction, merely a way to think about the process. Depending on the timeline involved, shares might quickly appreciate by 40%. This seems like a difficult thing to suspect, but it's important to remember that the share price already reacted this way on the mention of such a prospect.
So to begin, if Williams is acquired, you'd start out with a much higher share price in the short term. After that, you have a few options: you could continue to hold your shares until the transaction date and through the new company or you could elect to redeploy into similar or new securities. Similar securities might include companies like Kinder Morgan, Spectra Energy (NYSE:SE) or ONEOK (NYSE:OKE) - all of which have comparatively high starting yields to go along with robust dividend guidance. Even without much growth, solid returns could still be had.
To continue with the illustration, perchance you chose to reinvest into a blend of three above pipelines. Your new starting yield would be roughly 6% with a collective expected dividend growth rate of about 8% per year.
This is indeed an interesting situation. On every dollar invested in Williams today you'd expect to collect about five cents or so in dividends. If you suddenly saw a much higher price (call it 40% higher) and were able to reinvest at a 6% yield, that same dollar invested would be generating about 8.4 cents in dividends. This exceptional increase in anticipated income makes a large difference.
With $10,000 invested, it would mean that you would go from expecting to collect about $500 to $840. In turn, you'd anticipate that $840 to grow by roughly 8% over the years. Over a five-year period you might go on to collect $1,200 per year in half a decade. The future dividend yield is hard to anticipate, but at a 5.5% future yield, for example, this would mean that your principal would double over the period.
Here's what that looks like in Williams share terms: buy at ~$49, price goes to $70, reinvest at 6% yield, expect that payment to grow by 8% annually. In this scenario your total returns would be on the magnitude of 20% per year. Now once again you have the caveat of nothing being guaranteed: perhaps the buyout doesn't happen, perchance you can't reinvest at that rate, and it's conceivable that pipeline companies won't provide their anticipated dividend growth. Yet it remains that there is once more the propensity for spectacular returns moving forward.
Those are the two basic sides of the Williams "investment coin." The first scenario being that the company just keeps moving on: Williams already declined a takeover bid, and it could very well do so again. In this case, the company is anticipating exceptional dividend growth. In turn, this growth could generate quite impressive total returns. According to the company's own presentation, this could be on the magnitude of 14% to 19% annually. This is indeed a very solid baseline.
On the other side of the coin you have the real possibility of a winning takeover bid. In suggesting that the company will "explore strategic alternatives" it's not the process that the board has objected to, but merely the price. As such, a higher bid in the short-term is a real possibility.
If either of these two events occurs, as illustrated above, today's investor would be quite happy in the years to come. Granted there are certainly more possibilities: not as fast of growth, a different deal, the possibility of dividend cut, bankruptcy, all of it. It's always prudent to keep the potential outcomes in mind. Not only that, but it's always important to develop your own expectations. Personally I would contend that the two most likely outcomes are the ones outlined above, or they at least provide a baseline train of investment thought. If this turns out to be correct, an investment in Williams could indeed turn out to be a "heads I win, tails I really win" situation.
Williams (WMB) Stock Down as Auction Moves to Second Round
http://www.thestreet.com/story/13247652/1/williams-wmb-stock-down-as-auction-moves-to-second-round.html?puc=yahoo&cm_ven=YAHOO
08/06/15 - 03:16 PM EDT
By Amanda Gomez
NEW YORK (TheStreet) -- Williams Cos. (WMB - Get Report) stock is falling by 1.28% to $48.53 in afternoon trading on Thursday, following reports suggesting Energy Transfer Equity (ETE) advanced to the second round of bidding for the oil transportation company, sources told Reuters.
Energy Transfer offered $53.1 billion for an all-stock acquisition of Williams, but the company rejected the deal in favor of an auction.
Other buyers are interested in Williams, but it is not known which ones made it to the second round, Reuters sources said.
Kinder Morgan (KMI) and Spectra Energy (SE) have shown interest in acquiring Williams, but Kinder Morgan's market share may be too large to receive regulatory approval.
Industry sources said other bidders may include TransCanada (TRP), Enbridge (EEP), Enterprise Products (EPD), Phillips 66 (PSX) and Marathon Petroleum (MPC), Reuters added.
Additionally, TheStreet's Jim Cramer, Portfolio Manager of the Action Alerts PLUS Charitable Trust Portfolio said Williams stock "is really a buy here" because it is "very, very cheap."
Separately, TheStreet Ratings team rates WILLIAMS COS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate WILLIAMS COS INC (WMB) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
Net operating cash flow has significantly increased by 50.00% to $669.00 million when compared to the same quarter last year. In addition, WILLIAMS COS INC has also vastly surpassed the industry average cash flow growth rate of -53.49%.
The gross profit margin for WILLIAMS COS INC is rather high; currently it is at 50.52%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of 4.07% trails the industry average.
The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. In comparison to other companies in the Oil, Gas & Consumable Fuels industry and the overall market on the basis of return on equity, WILLIAMS COS INC has underperformed in comparison with the industry average, but has greatly exceeded that of the S&P 500.
Despite the weak revenue results, WMB has significantly outperformed against the industry average of 38.8%. Since the same quarter one year prior, revenues slightly dropped by 1.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
WILLIAMS COS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, WILLIAMS COS INC increased its bottom line by earning $2.82 versus $0.64 in the prior year. For the next year, the market is expecting a contraction of 66.7% in earnings ($0.94 versus $2.82).
Williams Cos. (NYSE:WMB) +2.6% AH despite reporting Q2 earnings that missed analyst estimates and included reduced full-year guidance, citing a decline in commodity prices.
Energy Transfer Equity (ETE, ETP) discloses it has signed a confidentiality agreement to participate in an auction for Williams Cos. (WMB, WPZ), which turned down ETE's $48B takeover offer last month.
Williams Companies Could Soon Be Facing a Hostile Takeover, and That's Not a Bad Thing
http://www.fool.com/investing/general/2015/07/10/williams-companies-could-soon-be-facing-a-hostile.aspx?source=eptadnlnk0000002
Energy Transfer Equity's proposed $53 billion buyout of Williams Companies is taking a nasty turn. Find out what it means for dividend investors.
The MLP industry usually isn't known for high-stakes drama, but Energy Transfer Equity's (NYSE:ETE) $53 billion attempted buyout of Williams Companies (NYSE:WMB) is taking an interesting and unusual turn -- one that could have massive ramifications for all investors involved.
Energy Transfer is potentially ready to launch a hostile takeover bid
Bloomberg Business is reporting that Energy Transfer Equity's Chairman Kelcy Warren is balking at a request by Williams that any potential acquirer agree to a "standstill" clause -- which would prevent it from buying Williams shares or lobbying its investors -- as a condition to look at its books.
Energy Transfer was none too pleased that Williams made public its offer, which the two companies had been negotiating in secret for six months. According to Bloomberg, as soon as Williams Companies rejected the $64/share bid -- which valued Williams at a 32.4% premium to its June 19 share price -- it began shopping itself to other potential buyers.
In fact, Williams has now approached 15 potential acquirers -- two of which were interested enough to agree to the "standstill" clause -- in an effort to garner a higher buyout price.
On Tuesday, July 7 Energy Transfer announced that while it prefers its acquisition of Williams proceed on friendly terms -- it's offered Williams unfettered access to its books with no strings attached -- it remains fully committed to "taking the necessary steps to implement the proposed transaction with Williams (including soliciting against the Williams and Williams Partners L.P. (NYSE:WPZ) merger)."
In other words, Energy Transfer is willing to try to buy Williams even if it has to launch a hostile takeover, something that has become increasingly rare in the MLP industry over the last decade. Let's take a look at why Energy Transfer is so eager to snap up Williams Companies, and more importantly, whether or not the deal actually benefits long-term investors.
What's at stake for Energy Transfer Equity
Energy Transfer wants Williams because the combined company would become the world's fifth largest energy company by enterprise value and dominate America's natural gas and oil pipeline industry.
Source: Energy Transfer Equity investor presentation.
As this map shows, most of Energy Transfer's existing pipelines are concentrated in the South and Midwest, while Williams has a strong presence in the West, South, and North East. Analysts expect the relatively small amount of overlap between the two company's existing pipeline systems would help it gain regulatory approval.
However, Energy Transfer wants to add Williams to its assets for a more important reason than merely an ego-stroking exercise in empire building -- it's also because Energy Transfer Equity's business model is based on collecting incentive distribution rights, or IDR fees, from its assorted MLPs.
Source: Energy Transfer Equity investor presentation.
As you can see, by merging with Williams, Energy Transfer Equity would grow the amount of cash received from its MLPs by 120%, greatly increasing the chances that it can achieve analysts' projected five-year dividend growth estimates of 24% CAGR.
Such impressive dividend growth, when combined with an already generous 3.1% yield, might help Energy Transfer Equity outdo its impressive historic market-thumping performance.
ETE Dividend data by YCharts.
What this means for Williams investors
Williams Companies rejected Energy Transfer's offer on the basis that it undervalued its shares, an argument that is hard to justify given the extremely generous premium the $64/share bid represents.
In fact, on an enterprise value/EBITDA basis, Williams is arguably being offered an absurdly high price for its shares -- meaning management may be foolish to expect anyone else to make a higher offer.
Company/MLP EV/EBITDA
Williams Companies 28.0
Energy Transfer Equity 14.3
Kinder Morgan 19.3
Magellan Midstream Partners 19.3
Stand alone so it would continue on independently. I'm not sure about any inter-company arrangements without further DD.
That's the thing. ETE wants WMB but doesn't want WPZ.
Where's that leave WPZ if they do derail that merger?
"ETE says it will take any steps necessary to make its proposal a reality, including trying to derail WMB's plan to streamline its own corporate structure by buying WPZ."
Confusing indeed but I like the direction it's headed.
It WILL be interesting.
I own the partners. That's the most confusing part of the situation for me. What will WMB do with WPZ and the proposed merger? Cancel the idea? Move forward with it? Sell WMB. Keep WPZ? Sell WMB and sell WPZ?
Whaaaattttt is going on? ;) LOL
I wasn't sure I was behind owning WMB, now I have adjusted to the idea, and here I sit not knowing whether it will even happen.
Interesting to see what happens?
Indeed.
Interesting to see what happens.
ETE says to proceed with Williams offer despite rejection
http://finance.yahoo.com/news/ete-says-proceed-williams-offer-112330674.html
Reuters
4 hours ago
July 8 (Reuters) - Pipeline company Energy Transfer Equity LP said it planned to proceed with its proposal to buy rival Williams Companies Inc despite being rebuffed, indicating it may go hostile with the offer.
Energy Transfer offered $48 billion in stock in June but Williams rejected the proposal, saying it was too low. The all-stock offer is now worth $44.6 billion as Energy Transfer's shares have fallen since then.
Energy Transfer said on Tuesday it would take any steps necessary to acquire the natural gas pipeline company, including soliciting against Williams' plan to buy its unit Williams Partners LP.
Williams said last month it would explore a range of strategic alternatives and retained Barclays and Lazard as advisors.
"Despite comments made by Williams management ... ETE continues to be open to engaging in the strategic alternatives process announced by Williams, but only if it is fair and evenhanded ...," Energy Transfer said in a statement.
Great articles. Personally I think it's a good deal. Whoever most offers are being rejected in this climate to explore "strategic alternatives" in order to maximize their upside. The market has overly discounted most names out there in the sector so I understand that thinking but consolidation is a good idea of equity is retained in my opinion. Will be interesting to see what happens.
What Happens to Williams Partners Now?
By Paul Ausick June 23, 2015 8:05 am EDT
http://247wallst.com/energy-business/2015/06/23/what-happens-to-williams-partners-now/
One part of the rejected $53 billion offer for Williams Companies Inc. (NYSE: WMB) from natural gas pipeline MLP Energy Transfer Equity L.P. (NYSE: ETE) that may turn out worse for investors than the rejection itself is the fate of Williams Partners L.P. (NYSE: WPZ), the MLP that Williams controls and has offered to buy completely for about $13.8 billion in parent company stock.
Energy Transfer’s offer explicitly required the termination of Williams’s (WMB) bid to acquire its midstream partner, and shares of Williams Partners (WPZ) have dropped more than 6% in Monday trading. It is difficult to see how any bid for WMB will permit the deal for WPZ to go through.
The WMB offer for WPZ adds about $11 billion in long-term debt to any deal, and if WMB wants to remain independent all it has to do is complete the deal for Williams Partners. No buyer will surface for quite some time.
So what else could happen to Williams Partners? The obvious answer is that it gets picked up by another MLP. The question remains, “At what price?” Very likely not the $57 or so per share price implied in the offer from WMB. The only buyers left for WPZ will be midstream MLPs looking to expand.
Remember, too, that pipeline MLPs must grow or die. One report indicated that WMB might be trying to tease out a bid for WPZ out of Kinder Morgan Inc. (NYSE: KMI) or some other huge pipeline company. Among WPZ’s assets is the 10,500-mile Transco pipeline system that hauls natural gas from the Gulf Coast region to Northeastern and Southeastern states. WPZ also has pipeline and gathering assets in the Eagle Ford and Marcellus shale plays, among others. These are valuable assets and WMB may not be able to get maximum value for WPZ if other potential acquirers take the same position as Energy Transfer.
That is probably why WPZ stock dropped 7.6% on Monday to close at $49.10, in a 52-week range of $44.87 to $62.95. The consensus price target on the stock is $55.
WMB stock closed up nearly 26% on Monday at $60.86, after posting a new 52-week high of $61.38. The 52-week low is $40.07.
Energy Transfer started out with a gain on Monday, but shares closed the day down nearly 5% at $65.06, in a 52-week range of $45.88 to $70.88.
By Paul Ausick
http://247wallst.com/energy-business/2015/06/23/what-happens-to-williams-partners-now/
Is Williams' Price Worth It for Energy Transfer?
By Investopedia | June 24, 2015
http://www.investopedia.com/stock-analysis/062415/williams-price-worth-it-energy-transfer-ete-wmb.aspx?partner=YahooSA
Earlier this week, Energy Transfer Equity (NYSE: ETE) made an unsolicited offer to buy out Williams Cos. (NYSE: WMB) for $48 billion, or about $64 per share for the pipeline company's existing shares. If you look at Williams' current financials, this is an extremely generous offer. Yet Williams' management said it actually undervalues the company. Is the company really worth more than this generous premium? And why is Energy Transfer willing to pay such a high premium for Williams' assets in the first place? Let's look at what Energy Transfer was thinking by offering so much for Williams, and whether it's worth upping the bid now that its target has rebuffed the offer.
Any which way but cheap
The $64-a-share proposal to Williams was a pretty significant premium to what the company was getting on the open market. Last week, prior to the announcement, Williams shares were trading at less than $49, so the Energy Transfer offer was close to a 33% premium on Williams' market value. When you look at it from a valuation standpoint, though, it looks like Energy Transfer was prepared to pay a king's ransom to get Williams compared to the valuations of similar master limited partnerships in the space. The table below is a comparison of Williams' valuation at Energy Transfer's offer price versus the current valuation of similar midstream companies
Company TEV/EBITDA Price/Book Value
Williams Companies 28.2x 5.82x
Energy Transfer Equity 18.1x 49.5x
Energy Transfer Partners 14.2x 1.4x
Spectra Energy 13.6x 2.9x
Enterprise Products Partners 16.3x 3.1x
Plains All American Pipeline 10.9x 2.1x
ONEOK Partners 12.4x 1.7x
Pipeline Giants Merger Still Possible After First Bid Fails
http://finance.yahoo.com/news/pipeline-giants-merger-still-possible-210516767.html
By Andy Tully
June 24, 2015 5:05 PM
The Williams Companies may have rejected a $53.1 billion buyout bid from Energy Transfer Equity [ETE], but the potential buyer’s boss says this is just the beginning of the effort to merge the two fuel transport giants.
“I believe that a combination of Williams’ assets with ETE will create substantial value that would not be realized otherwise,” Kelcey Warren, the CEO of Dallas-based ETE, said in a statement. “I am truly excited at the prospect of bringing together these two businesses under a common platform and creating additional value for every stakeholder.”
Warren said a merger would greatly enhance the new company’s cash flow, creditworthiness and growth flexibility, and that the current shareholders in Williams would immediately enjoy higher dividends.
Alan Armstrong, the CEO of Tulsa-based Williams, countered in a statement that ETE’s offer “significantly undervalues” the company. “Our board and management team remain committed to acting in the best interests of shareholders, and in light of the unsolicited proposal, our board believes it is in the best interest of shareholders to conduct a thorough evaluation of strategic alternatives.”
Williams announced its rejection of the ETE bid on June 21, without disclosing which company was interested in buying it. In fact, ETE had been pursuing Williams quietly for months, and only after the rejection announcement did ETE identify itself as the suitor, though it added that it was “disappointed” that it couldn’t continue the negotiations out of the public eye.
Why? A public pursuit “will certainly make it more contentious,” Jeff Schmidt, the associate of equity research for Tudor Pickering Holt & Co. of Houston, told the Dallas Business Journal. “That’s my gut instinct.”
And Ethan Bellamy, an analyst at the financial services company Robert W. Baird, said the leadership at Williams believes the company may be able to get a better offer from a rival of ETE, such as the Houston-based energy company Kinder Morgan, just as Armstrong's statement indicated.
“Williams board members know that they have a strong asset base, a good growth plan and good management,” Bellamy said. “Williams shareholders should go for the best deal from the highest bidder, not necessarily this one, though that might end up being the case.”
Some analysts say the ETE offer for Williams is a prime example of expected consolidation in the business of transferring fuels such as gas and oil. Companies that operate pipelines have largely been spared the pain of the sharp decline of oil prices during the past year, but many observers say enlarging their operations through mergers would be profitable regardless of the price of oil.
One of those is Williams, who built up ETE into a fuel transportation giant over the years by moving both gas and oil through a pipeline network totaling about 71,000 miles. He also beat out Williams in a bidding war for Southern Union Co. at a total cost of $5.7 billion.
And now he wants to buy out his biggest competitor altogether.
Energy Transfer may have to sweeten the $53B pot to buy The Williams Companies
http://www.bizjournals.com/dallas/news/2015/06/24/energy-transfer-may-have-to-sweeten-the-53-pot-to.html?ana=yahoo
Jun 24, 2015,
Kelcy Warren, chairman of Energy Transfer Equity, made a $53 billion offer for The Williams Companies that was publicly rejected.
Kelcy Warren, chairman of Energy Transfer Equity, made a $53 billion offer for The… more
Energy Transfer Equity will likely have to increase its $53.1 billion offer for The Williams Companies if it wants the deal to happen, Darren Horowitz, an analyst for Raymond James, wrote this week.
Dallas-based Energy Transfer (NYSE: ETE) originally offered $64 a share for Tulsa, Oklahoma-based Williams (NYSE: WMB). Williams rejected the offer.
Assuming $200 million in synergies in 2016, Horowitz suggests upping the deal to $74 a share.
“While this doesn’t necessarily mean we believe ETE will offer $74/share, there appears to be ample room for ETE/WMB to work out a deal,” Horowitz said in his report. “Stay tuned.”
This means there will be consolidation — duplicate jobs could be cut — if this deal happens, just as there was when Energy Transfer Partners (NYSE: ETP) merged with Regency Energy Partners earlier this year. That $18 billion deal was expected to net $160 to $225 million in savings.
That implies that the $200 million in savings for the Williams deal could be conservative, Horowitz said. Williams employs about 1,000 people in Tulsa and has its headquarters in the BOK Tower, the tallest building in downtown.
Williams has ties to Dallas midstream, including the $2.5 billion purchase of Caiman Eastern Midstream in 2012.
Should Kinder Morgan Bid for Williams Companies?
June 23, 2015
http://www.investopedia.com/stock-analysis/062315/should-kinder-morgan-bid-williams-companies-kmi-wmb-wpz.aspx?partner=YahooSA
I haven't understood that either. Could be the selection of assets as it fits their model. I can see why Williams would want it consolidated though instead, sort of a greater sum of the parts. Will be interesting to see what happens next.
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%).
Aside from this part
The unsolicited proposal was contingent on the termination of Williams’ pending acquisition of Williams Partners L.P
I kinda think it's strange that they would want them to terminate bringing home a subsidiary. (Do you even call the partners a subsidiary?) I would have thought they would want that as well.
All of it.
Why have a condition that stops that? That confuses me.
Find this very interesting thought it was a reasonable offer.
And that brings us up to date as to why this is going to happen...
(Wait for it - as chart will update after opening bell :)
Williams Companies, Inc. (The) (WMB) Pre-Market Trading at time of posting
WMB $61.85 + $13.51 + 27.95%
http://www.nasdaq.com/symbol/wmb/premarket
WMB will be up and it looks like WPZ will be down.
Williams Partners LP (WPZ) Pre-Market Trading at time of posting
WPZ $49.25 - $3.89 - 7.32%
http://www.nasdaq.com/symbol/wpz/premarket
WMB
WPZ
Does Williams Rejecting a $53 Billion Buyout Benefit Stockholders?
By Paul Ausick June 22, 2015 8:22 am EDT
http://247wallst.com/energy-business/2015/06/22/does-williams-rejecting-a-53-billion-buyout-benefit-stockholders/
Barely a month after announcing a major acquisition of its own, The Williams Companies Inc. (NYSE: WMB) has rejected an all-equity buyout made from Energy Transfer Equity LP (NYSE: ETE) valued at about $53 billion, including debt. Energy Transfer offered to pay $64 per share for all of Williams’s outstanding shares.
Williams rejected the offer late Sunday saying it “significantly undervalues Williams and would not deliver value commensurate with what Williams expects to achieve on a standalone basis….” Williams also noted that Energy Transfer’s offer includes termination of Williams’s pending acquisition of Williams Partners LP (NYSE: WPZ) for around $13.8 billion in a stock-for-common unit transaction that was announced on May 13th.
While rejecting the Energy Transfer offer is a standard response to an unsolicited offer, what isn’t standard is that Williams also said that its board of directors has authorized the company to “explore a range of strategic alternatives” following the Energy Transfer offer.
Williams could have a tough time convincing its shareholders that turning down this deal is a good choice. As we noted when the Williams Partners deal was announced, unitholders in the company are almost certainly facing a (large) tax bill many may not have been expecting. The MLP structure does not eliminate taxes, it merely defers them until the common units are sold or exchanged. Even worse, it’s likely that the taxes will be assessed at the ordinary income rate, not the capital gains rate. When Kinder Morgan Inc. (NYSE: KMI) executed the same sort of transaction late last year, one analyst figured that unitholders in Kinder Morgan Energy Partners (KMP) effectively lost 4% on the deal.
That whole equity-exchange deal between Williams and Williams Partners is not something Energy Transfer wants to pay for. And who can blame them? Think about who stands to gain the most in the near-term from the Williams-Williams Partners deal? Not the common unitholders of Williams Partners, that’s for sure, and certainly not an acquirer like Energy Transfer.
Williams’s stock has jumped nearly 28% in Monday’s pre-market trading to $61.75, a new 52-week high if it holds into the regular trading session. The stock closed at $48.34 on Friday and the current 52-week range is $40.07 to $59.77.
ETE confirms $48 bln bid for reluctant Williams Co
Reuters
5 hours ago
http://finance.yahoo.com/news/ete-confirms-48-bln-bid-071128407.html
June 22 (Reuters) - Energy Transfer Equity LP confirmed it had made a $48 billion unsolicited bid for natural gas pipeline company Williams Companies Inc, hours after Williams rejected the offer as significantly too low.
Energy Transfer Equity (ETE), an energy assets portfolio company, said its all-stock offer of 0.9358 shares per Williams' share represented a 32 percent premium to the stock's closing price of $48.34 on June 19.
Williams said in a statement on Sunday that the unsolicited proposal had prompted it to launch a review of strategic alternatives, with the assistance of Barclays and Lazard, but the current offer "significantly undervalues" the company.
ETE said its offer is contingent on the termination of Williams' pending purchase of Williams Partners, which gathers, processes and transports natural gas.
ETE made multiple attempts over almost six months to talk to senior management at Williams about a merger and made an initial offer on May 19, six days after the pipeline company said it would buy Williams Partners for $13.8 billion.
The deal is valued at $53.1 billion, including debt and other liabilities, and would be tax-free to Williams' stockholders, ETE said in a statement.
The deal value of $48 billion is based on the number of Williams' shares outstanding as of April 27.
Williams could not be reached for comment outside regular U.S. business hours.
A person familiar with the matter confirmed to Reuters on Sunday that ETE was behind the offer for Williams Co.
Shares of ETE closed at $68.39 on the New York Stock Exchange on Friday, having risen 19.2 percent this year.
Williams shares were up about 7 percent this year, as of Friday's close.
Williams Co rejects $48 bln unsolicited offer
Reuters
11 hours ago
http://finance.yahoo.com/news/williams-co-rejects-48-bln-010250998.html
(Updates with source identifying bidder)
June 21 (Reuters) - Natural gas pipeline company Williams Companies Inc said on Sunday it is exploring strategic options after it received an unsolicited takeover proposal for $64 per share or $48 billion.
Williams did not name the party who made the offer but it said its board determined the proposal "significantly undervalues" the company.
Energy Transfer Equity LP, a portfolio company that owns energy assets, is the bidder referred to in Williams' announcement on Sunday, according to a person familiar with the matter.
A spokeswoman for Energy Transfer Equity could not immediately be reached for comment.
Williams said it will continue with its definitive agreement to acquire all of the public outstanding shares of Williams Partners, which gathers, processes and transports natural gas.
The company said that the offer from the unnamed party was contingent on termination of Williams' pending acquisition of Williams Partners.
"In light of the unsolicited proposal, our board believes it is in the best interest of shareholders to conduct a thorough evaluation of strategic alternatives," Alan Armstrong, president and chief executive of Williams, said in a statement.
Williams retained Barclays and Lazard to assist with the strategic review.
Its shares closed Friday ay $48.34.
Bloomberg and the FT reported earlier that Energy Transfer Equity was the bidder.
Williams To Explore Strategic Alternatives
http://finance.yahoo.com/news/williams-explore-strategic-alternatives-221600903.html
Business Wire
Williams
14 hours ago
TULSA, Okla.--(BUSINESS WIRE)--
Williams (WMB) today announced that its Board of Directors has authorized a process to explore a range of strategic alternatives following receipt of an unsolicited proposal to acquire Williams in an all-equity transaction at a stated per share price of $64.00. The unsolicited proposal was contingent on the termination of Williams’ pending acquisition of Williams Partners L.P. (WPZ). With the assistance of its outside financial and legal advisors, the Williams Board carefully considered the unsolicited proposal and determined that it significantly undervalues Williams and would not deliver value commensurate with what Williams expects to achieve on a standalone basis and through other growth initiatives, including the pending acquisition of WPZ.
As previously announced on May 13, 2015, Williams and WPZ have signed a definitive agreement under which Williams will acquire all of the public outstanding common units of WPZ in an all stock-for-unit transaction at a 1.115 ratio of Williams common shares per unit of WPZ. During its strategic review process, Williams will continue to work towards the completion of the WPZ transaction.
Williams has retained Barclays and Lazard to assist in its review of strategic alternatives, which could include, among other things, a merger, a sale of Williams or continuing to pursue the Company’s existing operating and growth plan.
“Our Board and management team remain committed to acting in the best interests of shareholders, and in light of the unsolicited proposal, our Board believes it is in the best interest of shareholders to conduct a thorough evaluation of strategic alternatives,” said Alan Armstrong, President and Chief Executive Officer of Williams. “Williams’ premier infrastructure connects the best natural gas supplies to the best markets, and our strategy has provided substantial shareholder value allowing us to deliver a compound annual dividend growth rate of approximately 30% since we embarked on our strategy in 2012. In addition, we expect the growth of our business and the benefits from the WPZ transaction to enable 10-15% dividend growth through 2020. We are confident in our strategic plan and the significant value that will be created through the acquisition of WPZ and our large portfolio of growth projects. At the same time, we are open minded and committed to ensuring that Williams is maximizing value for shareholders.”
There can be no assurance regarding the results of Williams’ review of strategic alternatives. Williams undertakes no obligation to make any further announcements regarding the exploration of strategic alternatives unless and until final decisions are made.
Barclays and Lazard are serving as financial advisors to Williams. Cravath, Swaine & Moore LLP and Gibson, Dunn & Crutcher LLP are serving as legal advisors to Williams.
About Williams
Williams (WMB) is a premier provider of large-scale infrastructure to connect North American natural gas and natural gas products to growing demand for cleaner fuel and feedstocks. Headquartered in Tulsa, Okla., Williams owns approximately 60 percent of Williams Partners L.P. (WPZ), including all of the 2 percent general-partner interest. Williams Partners is an industry-leading, large-cap master limited partnership with operations across the natural gas value chain from gathering, processing and interstate transportation of natural gas and natural gas liquids to petchem production of ethylene, propylene and other olefins. With major positions in top U.S. supply basins and also in Canada, Williams Partners owns and operates more than 33,000 miles of pipelines system wide – including the nation’s largest volume and fastest growing pipeline – providing natural gas for clean-power generation, heating and industrial use. Williams Partners’ operations touch approximately 30 percent of U.S. natural gas. www.williams.com
Good example of the positive consolidation going on in the market. I'm long here.
Williams Companies' $13.8 Billion Kinder Style Merger: 3 Things Dividend Investors Need to Know
By Adam Galas | More Articles
May 22, 2015 | Comments (0)
Williams Companies (NYSE: WMB ) just made another huge acquisition with a Kinder Morgan (NYSE: KMI ) style $13.8 billion acquisition of its MLP Williams Partners (NYSE: WPZ ) . Find out three reasons why this deal is a huge win for dividend investors and what it means for the future of one of America's largest pipeline operators.
Terms of the deal
Lets start with the meat and potatoes of this $13.8 billion all stock deal. Williams Partners investors will get 1.115 shares of Williams Cos stock, which represents around a 13% premium from Williams Partners' May 13 closing price.
The deal, which still needs shareholder and regulatory approval, is expected to close in the fall of 2015 and will generate an additional 275.4 million shares of Williams -- representing 37% dilution for current Williams Cos investors.
However management is highly confident that the deal will be immediately accretive and beneficial to all parties involved.
Why management wants this deal
"This strategic transaction will provide immediate benefits to Williams and Williams Partners investors. ... The lower cost of capital and improved tax benefits expected from this transaction increase our confidence in extending the duration of our expected 10 percent to 15 percent dividend growth rate through 2020. ...This transaction simplifies our corporate structure, streamlines governance, and positions Williams for strong investment-grade credit ratings." -- Alan Armstrong, Williams Companies' president and CEO
According to Armstrong the benefits of the deal can be broken down into two components.
First, on an operational level it eliminates the incentive distribution rights or IDRs that Williams Partners had to pay its general partner and that slowed down distribution growth.
The elimination of IDRs means a lower cost of capital which will immensely help the company execute on its hyper-ambitious growth plan in the coming years. For example, Williams has a current backlog of $30 billion in growth projects it plans on investing in through 2020. To put that into perspective, Williams has an enterprise value 32% smaller than Kinder Morgan's yet its official current backlog is 67% larger.
Another benefit is with its larger scale of the new Williams will help improve the company's access to cheap credit which should help it fund its backlog execution faster.
In addition the simplified corporate structure might make Williams Cos shares more attractive currency for future mergers and acquisitions because the merger should improve Williams Cos profitability and increase the value of its shares..
Finally, as was seen with the Kinder Morgan merger, Williams Companies should have enormous tax benefits from this acquisition for two main reasons.
First, pipelines generate enormous tax deferments due to heavy depreciation. Previously these benefits went to Williams Partners investors due to its MLP "pass through" structure. Now Williams Cos will be able to retain those deferments.
Second, Williams will be able to reset the value of Williams Partners' assets to the higher purchase price it is paying, which under an accelerated depreciation tax schedule can generate billions in long-term tax deferments. While the company will eventually have to pay those taxes, by pushing off this tax bill by several years Williams will be able to use that money to fund its expansion plans faster.
For example, Kinder Morgan will, over the next 14 years, be able to garner $55 billion in tax deferements from its buyout of its MLPs, cash that can help it fund new investment and acquisitions. Should Williams be able to secure a similar scale of depreciation deferments that could mean several billion that could do the same over the next few years.
Faster, safer, and longer dividend growth
This brings up the second benefit, faster, longer, and sustainable dividend growth. Before the merger announcement Williams Cos was guiding for 10%-15% dividend growth through 2017 with a long-term targeted dividend coverage ratio or DCR of 1.1. Now management believes it can grow the payout at this rate through 2020 and achieve a stronger 1.2 DCR by 2018.
What's more, management claims that the deal would allow it to beat its previous short-term forecast for Williams Cos 2015 and 2016 dividend guidance, by 20% and 6.3%, respectively.
Tax implications for Williams Partners investors
After the Kinder Morgan merger a lot of investors had questions based on the tax implications of that deal. While I'm not qualified to provide you with any personalized tax advice -- Certified Personal Accountants with MLP experience are needed for that -- Kinder's merger might be able to clarify some broader questions.
For example, this merger could trigger a taxable event that could partially or even completely offset the premium Williams Partners are receiving.
The extent of that offset will most likely be based on the adjusted purchase price of Williams Partners units and whether or not you've owned them for more than a year -- meaning short term versus long term capital gains. Keep in mind that a large part -- shown on the annual K-1 form investors received from the MLP -- of Williams Partners' distributions have been return of capital which needs to subtracted from the initial purchase price.
This tax complexity is why every investor's tax implications will be different and why only a qualified CPA, armed with your previous K-1 statements, can give you personalized tax guidance.
Takeaway: Williams Cos merger with its MLP means a win for dividend investors
William Cos merger with its MLP is likely to have many beneficial aspects that should mean longer, stronger, and more sustainable dividend growth in the years to come.
$WMB recent news/filings
bullish
quick trade
also a double bottom pattern there
## source: finance.yahoo.com
Mon, 06 Apr 2015 12:00:00 GMT ~ Williams Partners Agrees to Acquire Additional Interest in Utica East Ohio Midstream Partnership
[Business Wire] - Williams Partners L.P. , which, through its subsidiary Utica Gas Services, currently owns 49 percent equity interest in Utica East Ohio Midstream LLC , today announced it has agreed to acquire an additional 21 percent equity interest in UEO from a subsidiary of EV Energy Partners, L.P.
read full: http://finance.yahoo.com/news/williams-partners-agrees-acquire-additional-120000335.html
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Thu, 02 Apr 2015 21:21:00 GMT ~ 4 Reasons MLP Investors Shouldn't Worry About New Iran Supply
read full: http://blogs.barrons.com/incomeinvesting/2015/04/02/4-reasons-mlp-investors-shouldnt-worry-about-new-iran-supply/?mod=yahoobarrons&ru=yahoo
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Tue, 31 Mar 2015 13:43:00 GMT ~ Williams Seeks FERC Approval for Atlantic Sunrise Pipeline Expansion to Serve Growing Demand for Natural Gas in Mid-Atlantic and Southeastern U.S.
[Business Wire] - Williams announced today that Transco has filed an application with the Federal Energy Regulatory Commission seeking authorization for its Atlantic Sunrise expan
read full: http://finance.yahoo.com/news/williams-seeks-ferc-approval-atlantic-134300631.html
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Mon, 30 Mar 2015 20:30:00 GMT ~ Williams, Williams Partners to Report First-Quarter Financial Results on April 29
[Business Wire] - Williams and Williams Partners L.P. plan to announce their first-quarter 2015 financial results after the market closes on Wednesday, April 29.
read full: http://finance.yahoo.com/news/williams-williams-partners-report-first-203000477.html
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Mon, 30 Mar 2015 20:22:15 GMT ~ Microsoft Corporation (MSFT), McDonald’s Corporation (MCD) and Johnson & Johnson (JNJ) Among Top 5 Stable Dividend Picks
read full: http://www.insidermonkey.com/blog/microsoft-corporation-msft-mcdonalds-corporation-mcd-and-johnson-johnson-jnj-among-top-5-stable-dividend-picks-341691/
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$WMB charts
basic chart ## source: stockcharts.com
basic chart ## source: stockscores.com
big daily chart ## source: stockcharts.com
big weekly chart ## source: stockcharts.com
$WMB company information
## source: otcmarkets.com
Link: http://www.otcmarkets.com/stock/WMB/company-info
Ticker: $WMB
OTC Market Place: Not Available
CIK code: 0000107263
Company name: Williams Companies, Inc. (The)
Company website: http://www.williams.com
Incorporated In: DE, USA
Business Description:
$WMB share structure
## source: otcmarkets.com
Market Value: $37,619,192,793 a/o Apr 06, 2015
Shares Outstanding: 747,896,477 a/o Feb 23, 2015
Float: Not Available
Authorized Shares: Not Available
Par Value: 1
$WMB extra dd links
Company name: Williams Companies, Inc. (The)
Company website: http://www.williams.com
## STOCK DETAILS ##
After Hours Quote (nasdaq.com): http://www.nasdaq.com/symbol/WMB/after-hours
Option Chain (nasdaq.com): http://www.nasdaq.com/symbol/WMB/option-chain
Historical Prices (yahoo.com): http://finance.yahoo.com/q/hp?s=WMB+Historical+Prices
Company Profile (yahoo.com): http://finance.yahoo.com/q/pr?s=WMB+Profile
Industry (yahoo.com): http://finance.yahoo.com/q/in?s=WMB+Industry
## COMPANY NEWS ##
Market Stream (nasdaq.com): http://www.nasdaq.com/symbol/WMB/stream
Latest news (otcmarkets.com): http://www.otcmarkets.com/stock/WMB/news - http://finance.yahoo.com/q/h?s=WMB+Headlines
## STOCK ANALYSIS ##
Analyst Research (nasdaq.com): http://www.nasdaq.com/symbol/WMB/analyst-research
Guru Analysis (nasdaq.com): http://www.nasdaq.com/symbol/WMB/guru-analysis
Stock Report (nasdaq.com): http://www.nasdaq.com/symbol/WMB/stock-report
Competitors (nasdaq.com): http://www.nasdaq.com/symbol/WMB/competitors
Stock Consultant (nasdaq.com): http://www.nasdaq.com/symbol/WMB/stock-consultant
Stock Comparison (nasdaq.com): http://www.nasdaq.com/symbol/WMB/stock-comparison
Investopedia (investopedia.com): http://www.investopedia.com/markets/stocks/WMB/?wa=0
Research Reports (otcmarkets.com): http://www.otcmarkets.com/stock/WMB/research
Basic Tech. Analysis (yahoo.com): http://finance.yahoo.com/q/ta?s=WMB+Basic+Tech.+Analysis
Barchart (barchart.com): http://www.barchart.com/quotes/stocks/WMB
DTCC (dtcc.com): http://search2.dtcc.com/?q=Williams+Companies%2C+Inc.+%28The%29&x=10&y=8&sp_p=all&sp_f=ISO-8859-1
Spoke company information (spoke.com): http://www.spoke.com/search?utf8=%E2%9C%93&q=Williams+Companies%2C+Inc.+%28The%29
Corporation WIKI (corporationwiki.com): http://www.corporationwiki.com/search/results?term=Williams+Companies%2C+Inc.+%28The%29&x=0&y=0
WHOIS (domaintools.com): http://whois.domaintools.com/http://www.williams.com
Alexa (alexa.com): http://www.alexa.com/siteinfo/http://www.williams.com#
Corporate website internet archive (archive.org): http://web.archive.org/web/*/http://www.williams.com
## FUNDAMENTALS ##
Call Transcripts (nasdaq.com): http://www.nasdaq.com/symbol/WMB/call-transcripts
Annual Report (companyspotlight.com): http://www.companyspotlight.com/library/companies/keyword/WMB
Income Statement (nasdaq.com): http://www.nasdaq.com/symbol/WMB/financials?query=income-statement
Revenue/EPS (nasdaq.com): http://www.nasdaq.com/symbol/WMB/revenue-eps
SEC Filings (nasdaq.com): http://www.nasdaq.com/symbol/WMB/sec-filings
Edgar filings (sec.gov): http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000107263&owner=exclude&count=40
Latest filings (otcmarkets.com): http://www.otcmarkets.com/stock/WMB/filings
Latest financials (otcmarkets.com): http://www.otcmarkets.com/stock/WMB/financials
Short Interest (nasdaq.com): http://www.nasdaq.com/symbol/WMB/short-interest
Dividend History (nasdaq.com): http://www.nasdaq.com/symbol/WMB/dividend-history
RegSho (regsho.com): http://www.regsho.com/tools/symbol_stats.php?sym=WMB&search=search
OTC Short Report (otcshortreport.com): http://otcshortreport.com/index.php?index=WMB
Short Sales (otcmarkets.com): http://www.otcmarkets.com/stock/WMB/short-sales
Key Statistics (yahoo.com): http://finance.yahoo.com/q/ks?s=WMB+Key+Statistics
Insider Roster (yahoo.com): http://finance.yahoo.com/q/ir?s=WMB+Insider+Roster
Income Statement (yahoo.com): http://finance.yahoo.com/q/is?s=WMB
Balance Sheet (yahoo.com): http://finance.yahoo.com/q/bs?s=WMB
Cash Flow (yahoo.com): http://finance.yahoo.com/q/cf?s=WMB+Cash+Flow&annual
## HOLDINGS ##
Major holdings (cnbc.com): http://data.cnbc.com/quotes/WMB/tab/8.1
Insider transactions (yahoo.com): http://finance.yahoo.com/q/it?s=WMB+Insider+Transactions
Insider transactions (secform4.com): http://www.secform4.com/insider-trading/WMB.htm
Insider transactions (insidercrow.com): http://www.insidercow.com/history/company.jsp?company=WMB
Ownership Summary (nasdaq.com): http://www.nasdaq.com/symbol/WMB/ownership-summary
Institutional Holdings (nasdaq.com): http://www.nasdaq.com/symbol/WMB/institutional-holdings
Insiders (SEC Form 4) (nasdaq.com): http://www.nasdaq.com/symbol/WMB/insider-trades
Insider Disclosure (otcmarkets.com): http://www.otcmarkets.com/stock/WMB/insider-transactions
## SOCIAL MEDIA AND OTHER VARIOUS SOURCES ##
PST (pennystocktweets.com): http://www.pennystocktweets.com/stocks/profile/WMB
Market Watch (marketwatch.com): http://www.marketwatch.com/investing/stock/WMB
Bloomberg (bloomberg.com): http://www.bloomberg.com/quote/WMB:US
Morningstar (morningstar.com): http://quotes.morningstar.com/stock/s?t=WMB
Bussinessweek (businessweek.com): http://investing.businessweek.com/research/stocks/snapshot/snapshot_article.asp?ticker=WMB
$WMB DD Notes ~ http://www.ddnotesmaker.com/WMB
Williams is trading 5% below its 52-week high and has 1% upside based on the consensus mean target price of $36.08 for the company. Williams was trading Monday for $35.85, up over 2% for the day.
Fundamentally, Williams has some positives but looks richly valued. Williams is trading nearly 8 times book value. Williams has a net profit margin of 12.64% and a forward P/E of 25.61. The stock trades with a PEG ratio of over 2 which is considered overvalued.
Technically, the stock has been in a well-defined uptrend and has pulled back to the 20-day sma recently. The stock is trading 7% above the 50-day sma. The technical signs are bullish, but I would avoid this stock based on the fundamentals.
This stock has become overvalued at current levels. I would take profits at this time or avoid the stock if not in it yet.
Williams Co.
Williams Co.
Ticker: WMB
Price Target: $37
Location: Tulsa, OK
Specialty: Infrastructure
Comments: "WMB is a principal beneficiary of long-term demand in natural gas and liquids infrastructure and gas processing."
Source: Morgan Stanley
Read more: http://www.businessinsider.com/morgan-stanleys-natural-gas-playbook-2012-7?op=1#ixzz217bbXiEt
UBS analysts move WMB from hold to buy with target of $36.00.
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