Replies to Post #8263 onKeeping It Simple

Replies to #8263 on Keeping It Simple

eastunder

07/23/14 3:40 PM

#8264 RE: eastunder #8263

WPZ Intraday

53.75 7/23

Intraday

eastunder

05/13/15 9:08 AM

#9206 RE: eastunder #8263

WMB buying Partner WPZ

1.115 shares WMB for 1 share WPZ Ratio exchange

Deal Values WPZ at $55.86
Closing price 5/12 $47.40

1000 (x2) shares wpz/merger with Access ratio exchange brought down position to 866 shares (866 & 866)

866 (x2) shares/to be acquired by WMB under ratio exchange = 965.59 shares (965.59 &965.59)

CP: 1732 ttl

eastunder

05/13/15 9:09 AM

#9207 RE: eastunder #8263

Pipeline giant Williams Cos. agreed to acquire Williams Partners L.P. in an all-equity transaction that values the latter at about $33 billion.

“This transaction simplifies our corporate structure, streamlines governance and positions Williams for strong investment-grade credit ratings,” Williams Chief Executive Alan Armstrong said. He added that the deal would result in lower capital costs and “improved tax benefits.”

Under the deal, Williams WMB, +5.39% will swap 1.115 shares for each unit of Williams Partners WPZ, +22.28% , of which Williams Cos. already owns 58%. In the aggregate, Williams will issue 275.4 million shares, which is about 27% of the total shares of the combined company.

Based on Williams Cos. closing price Tuesday, the deal values Williams Partners at $55.86, or an 18% premium to where Williams Partners finished Tuesday.

Shares of Williams Partners jumped 23% to $58.50 in premarket trading, while shares of Williams Cos. increased 7.3% to $53.74. The Oklahoma-based Williams also raised its third-quarter dividend.

Williams in February completed the merger of two master-limited partnerships it controls--William Partners and Access Midstream Partners--into one giant natural-gas pipeline system under the Williams Partners name. Williams Partners, a major pipeline company based in Tulsa, Okla., has sought to increase its presence in shale formations where drillers are using new technologies to produce more oil and natural gas.

eastunder

05/13/15 9:10 AM

#9208 RE: eastunder #8263

WPZ and WMB Daily

eastunder

05/13/15 10:02 AM

#9210 RE: eastunder #8263

WMB

5-12-15

50.10

Williams Companies, Inc. (NYSE: WMB)

SEC, nasdaq, yahoo

ShortSqueeze, Insider,

Finviz, StockTA, Stoxline,

Dividend History

eastunder

07/21/15 1:06 PM

#9332 RE: eastunder #8263

Williams Partners L.P. (NYSE: WPZ) today announced a regular quarterly cash distribution of $0.85 per unit for its common unitholders.
The board of directors of the partnership's general partner has approved the quarterly cash distribution, which is payable on Aug. 13, 2015, to common unitholders of record at the close of business on Aug. 6.
The cash distribution is consistent with the partnership’s previously announced guidance for a total 2015 annual distribution of $3.40 per unit.

eastunder

07/30/15 6:19 PM

#9364 RE: eastunder #8263

Energy Transfer isn’t giving up fight for Oklahoma pipeline giant

Jul 17, 2015, 5:21am CDT Updated Jul 17, 2015, 2:09pm CDT

Energy Transfer Equity announced late Thursday that it is agreeing to enter into an auction to pursue the purchase of Tulsa-based Williams Cos.

Energy Transfer Equity LP (NYSE: ETE) said earlier this week that it intends to continue to pursue its proposed purchase of Williams Cos. Inc.

To do so, the Dallas-based midstream giant confirmed late Thursday evening in a prepared statement that it has entered into a confidentiality agreement with Williams (NYSE: WMB) to pursue the Oklahoma pipeline company’s strategic alternatives process.

“ETE is looking forward to engaging with Williams and working towards a transaction that will deliver compelling value to both companies' stakeholders,” said Energy Transfer spokeswoman Vicki Granado.

Last month, Williams rejected an unsolicited bid from Energy Transfer valued at around $53 billion. The offer represented a 32 percent premium to Williams’ closing share price on June 19. But Williams said the offer for $64 a share “significantly undervalues” the midstream, which has 33,000 miles of pipeline from the Gulf of Mexico to Canada.

In response to the bid, Williams said that it was opening itself up to alternatives that could include a sale or merger. Another option would be for the Tulsa-based energy firm to move forward with its plan to purchase the remainder of its own master limited partnership, Williams Partners LP (NYSE:WPZ), to fold it into a single company.

eastunder

08/10/15 11:19 AM

#9417 RE: eastunder #8263

WPZ Notes:

Williams To Explore Strategic Alternatives

Sunday, June 21, 2015 6:16 pm EDT

TULSA, Okla.--(BUSINESS WIRE)--Williams (NYSE: 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. (NYSE: 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.

_________________

Williams: Heads I Win, Tails I Really Win

Aug. 7, 2015 1:19 PM ET

http://seekingalpha.com/article/3414936-williams-heads-i-win-tails-i-really-win

Summary
•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.

eastunder

08/22/15 6:54 PM

#9424 RE: eastunder #8263

Houston energy company reportedly bidding for all of Williams Cos.

Aug 19, 2015, 2:29pm CDT

The Williams Companies Inc. (NYSE: WMB) reportedly has a new suitor: Houston-based Spectra Energy Corp. (NYSE: SE).

People familiar with the matter told Reuters that Spectra is “bidding for the whole of Williams,” even though the Oklahoma-based company has a market capitalization about twice the size of Spectra’s.

Prospective bidders submitted an initial round of bids in late July, and final bids are due the last week of August, Reuters reports.

Williams and Spectra declined to comment to Reuters. Spectra is the 37th-largest public company in the Houston area, based on its 2014 revenue of $5.9 billion, according to Houston Business Journal research.

In June, Williams rejected an unsolicited bid from Dallas-based Energy Transfer Equity LP (NYSE: ETE) valued at around $53 billion, the Dallas Business Journal, a sister paper, reports. The offer represented a 32 percent premium to Williams’ closing share price on June 19. But Williams said the offer for $64 a share “significantly undervalues” the midstream, which has 33,000 miles of pipeline from the Gulf of Mexico to Canada.

After rejecting the offer, Williams said it would open itself up to strategic alternatives such as a sale, merger or moving forward with its plan to acquire the remainder of its master limited partnership, Williams Partners LP (NYSE: WPZ), creating a single company.

Earlier this month, Reuters reported that Energy Transfer made it to the second round of bidding for Williams. However, Energy Transfer wants to keep Williams and its master limited partnership as separate companies.