Further Consolidation in Pipelines: Energy Transfer Equity Makes Offer for Williams Cos

scott

This would be a large merger offer of around $50B.

All stock offer it seems and the deal seems to be contingent on Williams offer for Williams Partners not going through. If something does happen here, look to the possibility of further consolidation in the MLP space - not only general partners buying out partnerships (a la Kinder) but possibly the larger companies starting a land grab for other cos.

Williams has said no, but it's not an unreasonable offer and Williams is up significantly pre-market.

Long ETE.

http://ir.energytransfer.com/phoenix.zhtml?c=106094&p=irol-newsArticle&ID=2061168

Mark

I'm not surprised by the consolidation attempt, what surprises me is the suitor and the target. I had been thinking that Kinder Morgan, Enterprise Products or Plains would go after someone like Targa or lesser. Shows you how much I know. Could get interesting in the pipeline space where I am long in a bunch of them.

Ted

@ FYI: Oil & gas pipeline operators transport fuel through pipelines, often over great distances. Most of these companies are structured as Master Limited Partnerships (MLPs), which helps limit costs by passing tax obligations along to shareholders. Since MLPs are required to distribute the vast majority of their earnings to shareholders, these stocks usually offer very high dividend yields. Some of the best oil stocks and best natural gas stocks are those that return high levels of current income to their investors, many of which are listed here.
Regards,
Ted
Best Oil & Gas Piplines Dividend Stocks:
http://www.dividend.com/dividend-stocks/basic-materials/oil-and-gas-pipelines/