Williams Companies, Inc. (NYSE:WMB) On Consolidation Spree


Dallas, Texas 03/14/2014 (FINANCIALSTRENDS) – Tulsa-based Williams Companies, Inc.(NYSE:WMB) offers a wide-range of energy infrastructure, bringing produce of from resource plays to markets. The infrastructure it provides is the hydrocarbon producers in North America to regional markets consuming natural gas, natural gas liquids as well as olefins. The operations, of this company are extensive from – deep water Gulf of Mexico to the Canadian Oil sands.

In the past few weeks, the company has been on a consolidation mode and has been successfully acquiring its Canada based operations.

WMB acquired

In a press release the company has noted that Williams Partners LP (NYSE:WPZ) has completely acquired Williams Companies, Inc.(NYSE:WMB) for a value of $1.2 billion. The company has announced that the agreement of partnership has been in effect since Feb 26. As part of the takeover, such assets as the Fort McMurray processing plant which will include oil sands, off-gas processing plant will hold approximately 260 miles of NGL as well as olefins pipelines. These are NGL/Olefins facilities which carry out fractionation. These facilities are also involved in the splitting of butylene as well as butane.

By expanding the fractionation business, it is clear that Williams Partners will develop off gas processing at the CNRL Horizon facility upgrading which remains a part of Williams.

Holds promise

Williams Companies, Inc.(NYSE:WMB) holds operational promise as the competitive advantage for it, is in long-term contracts. The expectation for the additional assets as well as acquisition comes from the creation of accretive as well as distributable cash flow on a per-unit partnership basis.

Following the rapid consolidation processes in WMB, analysts have restated their ratings for the company. Most continue to issue Neutral rating for the company, with the price target at $45.00.

The reason for the neutral rating is seen in the short-term generation of visible cash flow as well as dividend growth, for the next years.

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