In a rare move, Williams Companies (WMB) has been forecasting substantial dividend growth through 2014. Typically management teams prefer to keep dividend increases under wraps in order to 'surprise' the market with increases and generally temper expectations.
The company has one of the leading energy infrastructures in North America. It owns interests in or operates 15,000 miles of interstate gas pipelines, 1,000 miles of NGL transportation pipelines, and more than 10,000 miles of oil and gas gathering pipelines. It owns more than 70% of Williams Partners L.P. (WPZ), one of the largest diversified energy master limited partnerships.
On Tuesday, the company announced a significant investment of $2.4B in Access Midstream Partners (ACMP). Access conversely announced plans to purchase pipeline assets from Chesapeake Energy (CHK) for $2.16B. These transactions could improve the dividend potential at Williams by 2014.
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