Help me with my math please. Is that a whole dollar? Just about 1.5%? All analyses are off now, as everything is dependent on the Williams transaction. People are selling because they don't like the uncertainty hanging over. I own both ETE and ETP with the latter position substantially larger given the yield. In a week or two, most investors that are left will be on board as to managements intentions vis a vis Williams Partners. I think this current deck clearing are those uncomfortable going forward with the deal as rumored and outlined. If the Williams deal goes away, we will likely get back to normal. If it lingers, I think there is a hang-over for some time, as many (myself included) are skeptical of the structure of the deal as it relates to unit owners (not as it relates to the broader business plan). While the plan may be good for ETE in the long run, the current ETP unit holders could well get worked over as in "taking one for the team". It might make sense to sit it out and buy back into the new "C" company if or when it materializes.
Is this better in an IRA or regular account?
Why anyone would give this a thumbs-down is beyond me!
I just read a SA article that said WPZ would be integrated into ETP - transaction would probably be structured as an acquisition by ETP. Perhaps that explains the dip?
Not at all. Guess it's just sell anything ETE related. No one ever claims markets are rational as it's obvious in the oil & gas sector.
Yes, but they still need "currency" of some sort. Our current market cap is only $35B so we are trying to swallow something substantially bigger. What level of dilution do you think we are talking about?
They are issuing equity of purchase the WMB units, and they will be assuming the WMB debt. While there may be minor tweaks to that outline, they are not needing to raise cash to pay for WMB units since it is not a cash deal.
I just wanted to give you a thumbs up for your remarkable intuition and prescience!!!
Thanks for the response. I agree that it gets done (at a price higher than this one) but what is the short term pain from how we have to pay for it? Its likely 50 or 60 Billion dollars and that isn't laying around anymore. The borrowings just outlined were for a meager few billion.
I think it gets done. I'm guessing WMB won't find a better offer and that the large WMB shareholders want a chance to exit or to move forward with new management.
Wow. That came out of left field. Comments anyone? Do you think this is history based on the rejection or are we going to get it, just at a higher price later after the Williams people shop it around? Can anyone figure out what our short term hit is going to be? Long term, great move again I would think.
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• Energy Transfer Partners LP (NYSE:ETP) had its price target raised by analysts at JPMorgan Chase &
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Sentiment: Strong Buy
Here are the debt tranches. I too would like to know why you think this might indicate a merger/consolidation?
•$650 million of 2.500% senior notes due 2018
•$350 million of 4.150% senior notes due 2020
•$1.0 billion of 4.750% senior notes due 2026
•$1.0 billion of 6.125% senior notes due 2045
What's your vision here? ETP unit holder receives ETE units at a ratio that provides some premium to current level? Have you seen any other window dressing that looks like it might be for that reason? Appreciate any insight.
that's why one needs to hold these in a ROTH IRA