Morningstar - Williams Partners L.P. (A14NDQ) New Fair Value Estimate for Williams Companies for Simplification Transaction and Updated Outlook

Report

Morningstar

Mark Hanson

EUR 98.48 For Business Accounts Only

New Fair Value Estimate for Williams Companies for Simplification Transaction and Updated Outlook

Following the first-quarter simplification transaction between Williams Companies and Williams Partners, we are updating our fair value estimates for both entities. Our prior fair value estimates for Williams Companies and Williams Partners of $21/share and $32/unit, respectively, reflected continued drag from high GP cash flow requirements and high leverage ratios constraining growth prospects. We see the simplified structure and recent asset monetizations putting both companies in good stead t...

10/05/2017 11 EN

Underlying

Williams Partners L.P.

Williams Partners is an energy infrastructure company that engaged in the gathering, processing and interstate transportation of natural gas and natural gas liquids. The company operates in four business segments: Northeast G&P, which include natural gas gathering, compression, processing and NGL fractionation business in the Marcellus and Utica Shale regions; Atlantic-Gulf, which includes the Transco interstate natural gas pipeline that extends from the Gulf of Mexico to the eastern seaboard; West, which includes the Northwest Pipeline interstate natural gas pipeline; and natural gas liquids & Petchem Services, which operates an ethylene storage hub.

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US96949L1052 United States

Provider

Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

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Analysts

Mark Hanson

Other Reports on these Companies

Morningstar

Morningstar | Williams Reports Decent Quarter; Ups Capital Expenditure Guidance Due to DJ Basin/Four Corners

Williams reported a decent quarter, reflective of its steady progress toward executing on a profitable list of pipeline and gathering and processing investments. We plan to maintain our fair value estimates and narrow moat ratings ahead of the shareholder meeting on Aug. 9 where we expect the merger of Williams and Williams Partners to be approved and close shortly thereafter. Adjusted EBITDA of $1.1 billion was up about 6% from last year's results excluding asset sales already completed, driven primarily by Transco expansion projects brought online. Similarly, distributable cash flow of $705 ...

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August 1, 2018 August 1, 2018 13 EN

Morningstar

Williams Reports Decent Quarter; Ups Capital Expenditure Guidance Due to DJ Basin/Four Corners

EUR 100.00

August 1, 2018 August 1, 2018 16 EN

Morningstar

Morningstar | Williams Acquires DJ Basin Assets With Substantial Upside; FVE Unchanged Due to Small Size of Deals

We think Williams' portfolio repositioning is generally intelligent capital allocation, and garnering a foothold in the more attractive DJ Basin is a plus, in our view. Williams has acquired $1.2 billion of DJ Basin assets as part of a joint venture with KKR from TPG, while selling its Four Corners assets (San Juan and other New Mexico assets) for $1.1 billion to Harvest. We plan to maintain our fair value estimates and narrow moat ratings for the Williams entities as the transactions are too small to move the needle on our valuations. Interestingly enough, the transactions essentially modestl...

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July 30, 2018 July 30, 2018 13 EN

Business as Usual for No-Moat Lonza; Specialty Ingredients Carve-Out on Track for 2020

Contract manufacturer Lonza reported solid half-year results, with over CHF 2.9 billion in total sales year to date, up about 6.4% from last year and boosted by foreign exchange tailwinds. Core EBITDA margin expanded 30 basis points from last year to about 27.8%, helped slightly by new accounting standards. Management indicated that it continues to expect mid- to high-single-digit sales growth in 2019. We are maintaining our fair value estimate of CHF 210 per share and our no-moat rating. The ph...

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No-moat Sasol provided an update on its full-year fiscal 2019 production metrics that included relatively stable liquids production. For the full year ended June 30, Sasol produced 1,470 thousand barrels of crude oil and condensate a day compared with 1,469 mboe/d in the year-ago period. However, declines continued with the companyâ€™s natural gas production, down 4% to 130.3 billion cubic feet compared with the period ended June 30, 2018. Sasol also reported flat refined products of 31.4 mmboe/d ...

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Astra Posts Solid 2Q, Driven by Strong Cancer Drug Sales and Moving Away From One-Time Divestments

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New Fair Value Estimate for Williams Companies for Simplification Transaction and Updated Outlook

Morningstar | Williams Reports Decent Quarter; Ups Capital Expenditure Guidance Due to DJ Basin/Four Corners

Williams Reports Decent Quarter; Ups Capital Expenditure Guidance Due to DJ Basin/Four Corners

Morningstar | Williams Acquires DJ Basin Assets With Substantial Upside; FVE Unchanged Due to Small Size of Deals

Business as Usual for No-Moat Lonza; Specialty Ingredients Carve-Out on Track for 2020

Sasol Provides Full-Year Production Update

Astra Posts Solid 2Q, Driven by Strong Cancer Drug Sales and Moving Away From One-Time Divestments

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