Monday, June 23, 2014

A Fracking Good Deal for Williams Gone Too Far


On the back of a nearly 25% gain following the (NYSE: WMB  ) proposed deal to acquire parts of Access Midstream Partners L.P. (NYSE: ACMP  ) it doesn't already own and merge them with Williams Partners L.P. (NYSE: WPZ  ) , Williams Companies  (NYSE: WMB  ) investors have to wonder if the deal was really that good.

The deal is naturally interesting in that it provides Williams with access to the rapidly growing infrastructure needs in most of the primary shale plays. On the back of the deal, Williams proposes increasing the third quarter dividend by an astonishing 32% to an annualized rate of $2.24, providing the impetus for the stock gains. The company quickly rushed out to sell stock to pay for the deal, further suggesting that its stock rose too fast.

Read the full article here.


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