Sunday, September 13, 2015

Williams: Negative Implications Of Chesapeake Deal

  • Williams agrees to fee cuts for higher volumes from Chesapeake Energy.
  • The auction process for the company remains in limbo placing the positive merger with Williams Partners and the promised higher dividends on hold.
  • The uncertainty around Williams makes the stock difficult to own despite the collapsing price.



In possibly a somewhat surprising move, Williams Cos. (NYSE:WMB) subsidiary Williams Partners L.P. (NYSE:WPZ) agreed to lower the gathering and processing costs for Chesapeake Energy (NYSE:CHK) for higher future volumes. The move is rare for the MLP sector and has some troubling implications despite the signaling by Williams that the move is a win-win for both parties.

Read the full article on Seeking Alpha.


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1 comment:

James M said...

Worst bullet point article I've seen in awhile
•Williams agrees to fee cuts for higher volumes from Chesapeake Energy.
yes....increased production and fixed rates ....helps CHK

•The auction process for the company remains in limbo placing the positive merger with Williams Partners and the promised higher dividends on hold.
Increased dividend announced Friday?

•The uncertainty around Williams makes the stock difficult to own despite the collapsing price.
Stock has already been beaten to death .....now its difficult to own?