Alerian Explains: Williams (WMB)

Alerian Explains highlights the major announcements of a company with a noteworthy trading history over the past 12 months. Sometimes these events will have a significant and immediate impact on the stock price, but not always. We’d like to give a shout out to the fine folks at ETF.com and their monthly publication, ETF Report, from which this idea originated.

1. 
   July 31, 2013. Dividend Guidance Affirmed. Despite continued distribution coverage challenges at its MLP, Williams Partners (WPZ), Williams affirms its dividend guidance of 20% growth per year in each of 2013, 2014, and 2015. Williams also reported second quarter results, with adjusted EBITDA beating Street estimates on higher volumes across its business segments.


2. 
   December 11, 2013. Comments from OSHA Received. Williams confirms receipt of OSHA analysis and findings related to the June 13 explosion at its Geismar olefins plant. Williams notes that it is also conducting its own internal incident investigation. The company expects the rebuilt and expanded plant to be online by April.


3. 
   February 19, 2014. Year-End Results Reported. Williams announces a two-month delay in the startup of its Geismar olefins plant and pushes back its in-service date for the Bluegrass Pipeline project. Both postponements were largely expected by investors, who were encouraged by successful contracting of a Transco expansion (Atlantic Sunrise) and maintained guidance.


4. 
   February 25, 2014. Board Members Appointed. Williams appoints Soroban’s Eric Mandelblatt and Corvex’s Keith Meister to its Board of Directors. Both Soroban and Corvex are major WMB shareholders. Notably, Soroban also has significant positions in CNP, LNG, PAGP, and SEMG, all of which are MLP sponsors.


5. 
   April 30, 2014. Bluegrass Write-Off Announced. Williams records an $86 million impairment in connection with the Bluegrass Pipeline project, the suspension of which was announced two days prior.


6. 
   June 15, 2014. GP Interest Acquired, Merger Proposed. Williams agrees to acquire the 50% of Access Midstream Partners’ (ACMP) general partner that it doesn’t already own and proposes a merger between WPZ and ACMP, which would create one of the largest MLPs.