ETE coverage ratio as calculated by WFA head analyst Blum, is 1.5X for 2016 and 1.7X for 2017. Seems relatively solid to me, not many MLPs with numbers even approaching that.
WMB stock down, and WPZ distribution cut coming. Smarter play might have been to renegotiate deal that eliminated cash component.
But hey, I love the smell of napalm in the morning.
Williams does not believe ETE had a right to terminate the Merger Agreement because ETE breached the Merger Agreement by (among other reasons) failing to cooperate and use necessary efforts to satisfy the conditions to closing, including delivery of Latham & Watkins LLP’s Section 721(a) tax opinion. Accordingly, on June 27, 2016, Williams filed an appeal with the Delaware Supreme Court in connection with the Delaware Court of Chancery's June 24, 2016 ruling relating to the Merger Agreement between Williams and ETE.
Williams recognizes the practical fact that ETE has refused to close the merger. Williams has concluded that it is in the best interests of its stockholders to seek, among other remedies, monetary damages from ETE for its breaches. So, while taking appropriate actions to enforce its rights and deliver benefits of the Merger Agreement to its stockholders, Williams will renew its focus on connecting the best natural gas supplies to the best markets.
In my humble but lovable opinion, there will be no settlement. Williams is not entitled to one, and the appeal is unlikely to get very far. Costs of legal defense is all I see at this juncture.
Appellate courts almost always give a huge amount of deference to court of original jurisdiction on findings of fact. So unless Glasscock misapplied the law somehow, the appeal is a huge waste of time and funds, and its seems to me Williams could put those funds to a better use for a lot of things. Did you read the opinion? 58 pages and seems to be well reasoned and documented. I would not be surprised to see a quick dismissal of the appeal as being no misapplication of law. Glasscock is an experienced judge, he does not like to get overturned on appeal and will have considered all of this in formulating his opinion.