Williams is worth $30 per share and will probably exceed ETE's performance over the next few years. And ETE has a debt problem with ETP. Will probably reduce their dist. You are clueless.
I don't think so, my calc is the return. But whatever. Why don't we just call a truce. These boards are supposed to be about small investors helping each other. And I appreciate lots of different opinions, and over time, my position may morph into something else because of someone's comment. I've owned WMB for over a decade, since the Enron days, and will own it for more years to come. ETE has been owned for 6 years, ETP longer. I don't trust Warren, I don't think what he has done is in the best interest of his owners or Williams. And I don't like what the Williams board has done. If the deal if forced, I will probably give it a couple of years and it could end up being a terrific investment. The time I traded KMP for EPD over a decade ago, which I regretted initially turned out to be a much better investment. I own many MLPs and will own them years from now. I was a supporter of the deal initially but don't anymore. Just state what you position is and why and we will all learn. You don't need to attack just because someone else has a different opinion.
Faber reports "sources", ETE/WMB not in talks about deal. Interesting that ETE traded down after the report. This will probably go to the court date, really don't think either side wants the court to determine the outcome.
That's illogical, the deal is approved, Warren refuses to close and he probably has a good reason in the tax opinion and what damages are there. Still think voting no is best for WMB owners but is probably academic as the institutions will approve it. If Warren is forced to close, the merged co has $6 billion of add'l debt, not good for either side. Again the couple of dollars of premium evaporates.
Wouldn't be surprised if the activists try to garner support from others to make a run at ousting the board. The criticism of Armstrong, they've been on board since 14, curious they take no responsibility. Armstrong is ok, WMB has great assets in core areas. Speculating that this move could run the stock up even if they aren't successful. I wouldn't vote for them and would guess they would not have the influence anymore. Or they could partner with someone else? WMB needs to name a strong Chairman quickly and at least a couple of new directors. I believe the activists were not good for the co. With gas back to $3 and oil continuing to strengthen, activity should come back, 11 rigs up yesterday.
That is a good question, this guy has been touted as tax guru of the MLP industry but it does seem they may have the right position. ETE is way too complicated, a reason to not merger, further complication.
pj, spread is 40%. I viewed yesterday as positive for WMB, I don't want the merger. I don't think WMB is trading based on long term value with the lawsuit, deal uncertainty. WMB has not really given us guidance and couldn't talk up their prospects standalone. Could be wrong, but think their prospects are fairly good with recovery of comm prices. WPZ coverage was 102% last quarter and prices have improved a bunch. Traveling for next couple of days so can't keep up with the machinations, and I've decided to hold for long term so not much to do but wait it out.
Still think a few years out, WMB will do very well, assets, Transco, will prevail.
If the midstream industry were to see a wave of consolidation right now, companies including Spectra Energy Corp. and Enterprise Products Partners LP are in a better position to buy up assets, Thummel said.
“You’ve got companies out there positioning themselves, or already positioned, that have a lower cost of capital than you do,” Thummel said.
By abandoning the Williams deal over his financial concerns, Warren passed up on "the crown jewel" of U.S. gas pipelines, Thummel said, pointing at a map and making reference to the Transco pipeline. “If you asked Kelcy where he wished he was, he’s missing out on an opportunity right here.”
You truly don't have a clue about much of anything, everything they said is realistic and you should want the deal to be rejected, and it's what Warren has been saying. ETE will be much more valuable without the deal, as will WMB. I thought you said previously that WMB trying to force the merger was desperate. But we do appreciate the copy and pastes even if you only read the headlines.
He is the sole owner of the general partner of ETE which owns the general partner of the LPs under it, and as such controls the assets of ETE and the LPs it owns. The merger didn't require a vote by owners since he has that control. ETE is a partnership and owners have limited control. An opp for abuse. He can pretty much do anything he wants to, consider the conv pref plan or paying his chief legal officer a multi $mm bonus to cover his margin call. There aren't the corporation safeguards that apply to partnerships. Buyer beware.
Midstream cos undervalued, $$70 oil and $3.50 gas next year. More importantly 1.6% 10 yr T note, rates probably say low for few years.
Like your id, fitting, lame. Even your attempts at humor are the same, lame.
My guess is this never gets to a vote, down to the wire, agreement to terminate or all equity, more probability for first outcome.
The deal if I remember correctly, ETE did not make FTC changes a deal killer, they would accept the FTC ruling and close. Most were expecting this so no surprise.
WMB owes something like $50mm for cash costs in deal max if voted down. I'm fairly bullish on WMB after they shed this deal. They will still have what Warren wanted, Transco and the NE assets.
Pj, this has been a mess, was just looking at the COB's background, I think we have a light weight board. If ETE had not come along, they would have merged WPZ, wasn't real wild about that with the tax hit, but WMB would probably be $40 today. Warren definitely out maneuvered them and got lucky but I didn't really want to be partnered with him. Would like to get the last move over and look at what their guidance is for the next couple of years, they do have things they can sell that are valuable. I do think they need a new board after this mess. I read a report that thinks the NGL demand will be so strong that the NE won't be able to keep up. The fundamentals look good.
I agree completely. We need some guidance, agree that the div cut will be a good thing. I would expect a modest dip and recover to a new level after the guidance and cut. I don't things are nearly as bad as some imagine. WMB's issue is they have growth and they cost of equity is too high currently and the balance sheet is maxed out. Too much growth is a much better situation than no growth or a declining sector and too much debt. Believe somewhere in this mess, there were exploring the sale of Canada, a good business but not good synergy with rest of assets. ETE has the same problem, how do you grow ETP when the cost of equity is 10% plus. Do think part of the problem will be solved as comm prices come back and yields for MLPs drop as people realize the cash flows are still intact, WMB has 90% fee based rev, CHK should do a lot better next year at $3.50 gas, the bk risk is almost gone. The 10 yr T note at 1.4% vs an MLP with a 10% yield, that's a disconnect. You get WPZ back to maybe 5% growth and the current dist of $3.40 should be priced at 5% yield, that's a $68 unit price and WMB owns 60%. This is going to take a couple of years but a patient investor will be rewarded imo. And you have to have a bullish position for nat gas, I do.