Williams Companies Inc. (NYSE: WMB) and Williams Partners L.P. (NYSE: WPZ) announced Monday morning that the 2016 capital spending budget for Williams Partners is expected to total $2 billion, a decline of about a third from the 2015 capex budget. The drop reflects project deferrals, delays and cancellations caused by “the current commodity price environment.”
Williams Partners also has announced that the board of directors of its general partner has approved a quarterly cash distribution of $0.85 per common unit for the fourth quarter. The distribution cash coverage is expected to be approximately 1.0x, excluding a $209 million waiver of incentive distribution rights related to the cancellation of the proposed merger between Williams and Williams Partners. That combination was cancelled as part of a merger deal with Energy Transfer Equity L.P. (NYSE: ETE).
The capital budget includes $1.3 billion to expand the Transco pipeline and other interstate pipeline growth projects the company says are fully contracted with investment-grade customers. Growth outside the interstate pipeline operations will total about $700 million for improvements to gathering and processing assets.
Williams remains committed to its merger with Energy Transfer Equity, but said only that it expects the merger to be completed “as expeditiously as possible.” The merger is still subject to approval by Williams stockholders and other customary closing conditions.
Williams and Energy Transfer Equity received approval for the merger from the Federal Energy Regulatory Commission (FERC) in early January. The Federal Trade Commission (FTC) and Williams shareholders have yet to weigh in. A timing agreement among the companies and the FTC has set a date of March 18 as the earliest that the deal can close.
Williams shares traded up more than 10% early Monday to $21.77. The stock’s 52-week range is $12.77 to $61.38.
Williams Partners was up about 13% to $24.11. The 52-week trading range is $15.70 to $59.44.
Energy Transfer Equity was trading up more than 13% to $10.93, in a 52-week range of $6.60 to $35.44.
The #1 Thing to Do Before You Claim Social Security (Sponsor)
Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.
A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
