WPZ Quick Win: 19.62% Gain In 4 Days

WPZ Quick Win

Williams Partners L.P. (WPZ) is an energy infrastructure company focused on connecting North America’s hydrocarbon resource plays to growing markets for natural gas and natural gas liquids. The stock was included in the Top 20 Stocks forecast from May 10th. Williams Partners had a signal strength of 143.98 for the 1-year time horizon, which is exceptionally strong.

wpz quick win

Since that time, the stock price has increased 19.62%. The stock price jumped in after hours trading on May 12th after it was announced that the energy infrastructure company would be absorbed by William Cos. (WMB) in a deal worth $13.8 billion.

wpz quick win

Williams Partners is a subsidiary of Williams Cos., and this is the latest example of one energy company absorbing a limited partnership. This model has been used to raise millions of dollars in the past few years, but energy companies are turning away from it recently. The partnership was set up in 2005 to hold pipelines and natural-gas processing facilities.

Under the deal, Williams Cos. is offering 1.115 of its own shares for each share of Williams Partners. This works out to roughly $55.86 per share, which is a premium of 18% to where the stock was trading at the close of the market on May 12th. The stock price quickly jumped in after-hours trading, as investors looked to take advantage of the investing opportunity.

Williams Cos. Chief Executive Office said that the transaction will simplify the company’s corporate structure, streamline its governance, and position the company to have better investment-grade credit ratings in the future. It should also provide some tax benefits for the Williams Cos. Williams Partners had previously been attempting to increase its presence in shale formations where fracking occurs.