Williams Seeks Simpler Structure, Absorbing Related MLP as KMI Did

摘要

Tulsa-based pipeline giant Williams is buying its 58%-owned master limited partnership Williams Partners in a stock-for-unit transaction valued at $13.8 billion. "This strategic transaction will provide immediate benefits to Williams and Williams Partners investors. We continue to see an expanding portfolio of projects to connect the best supplies of natural gas and natural gas products to the best markets," said Alan Armstrong, chief executive of both companies. Last week's transaction also simplifies Williams' corporate structure, streamlines governance and positions the company for strong investment-grade credit ratings. Armstrong said Williams anticipates significant market valuation upside and lower cost of capital for new fee-based growth projects along with incremental growth through mergers and acquisitions.