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Snapshot: Valuing Williams Companies compared to its peers
Enterprise Products Partners (EPD) is the largest company by market capitalization and enterprise value, or EV, among its closest peers. By market cap, Williams Companies (WMB) follows next.
Williams Companies’ (WMB) overall capex is projected to stay low during 2014 to 2016. Many of the company’s expansion projects are scheduled to start operations in late 2016 and 2017.
Based on a variety of projects and income-accretive acquisitions, Williams Companies (WMB) projects a 20% dividend growth through 2016.
In 2014, Williams Companies (WMB) has significantly outperformed the industry and broader market. WMB’s stock has returned ~50% year-to-date (or YTD). On an annualized basis, this would turn out to be a ~79% return.
Williams Partners (WPZ) is building a gathering system in Northeast Pennsylvania to cater to increased production from the Marcellus Shale.
Following the accident that took place in the Geismar olefins plant in June 2013 and its consequent shutdown, Williams Companies (WMB) has been working to increase the plant’s capacity.
Williams Companies’ (WMB) NGL & Petchem Services segment consists primarily of Canadian midstream operations and certain domestic olefins pipeline assets.
Williams Partners L.P. (WPZ) accounts for a big chunk of Williams Companies’ (WMB) operations and profits. So deeper insight into WPZ’s performance is a must.
For 2Q14, Williams Companies (WMB) recorded $513 million in adjusted segment profit. This total is up 19% from the $431 million it recorded in 2Q13.
Williams Companies (WMB) released its 2Q14 earnings on July 30, 2014. The company recorded $1.68 billion in total revenues for 2Q14. This total was down 5.0% from the $1.76 billion recorded in 2Q13.
Williams Companies Inc. (WMB) mainly operates through its investments in master limited partnerships—or MLPs—Williams Partners LP (WPZ) and Access Midstream Partners (ACMP) as well as its Williams NGL & Petchem Services unit.
Williams Companies Inc. (WMB) is in the business of energy transport and processing infrastructure. Its diversified operations include interstate gas pipelines, local midstream operations, and olefins production.
Kinder Morgan Inc. (KMI) plans to consolidate Kinder Morgan Energy Partners (KMP), El Paso Pipeline (or EPB) and Kinder Morgan Management (or KMR) with itself. Of these, KMP and EPB are master limited partnerships (“MLPs”).
Kinder Morgan Management LLC (KMR)—formed in May 2001—is a limited partner in and manager of Kinder Morgan Energy Partners (KMP). So essentially, KMP is run by KMR, which in turn is run by Kinder Morgan Inc (KMI).
El Paso Pipeline Partners (EPB) is a master limited partnership (or MLP) that owns and operates natural gas transportation pipelines, storage, and other midstream assets.
Kinder Morgan Energy Partners (KMP) is one of the largest master limited partnerships (or MLPs) operating in the U.S. midstream energy space.
Kinder Morgan Inc. (KMI) was formed in 1997 when current CEO Richard Kinder, and former vice chairman William Morgan acquired the general partner of a small limited partnership—Enron Liquids Pipeline L.P.
The $71 billion deal that will see the Kinder Morgan group roll up into just one company will be the largest the energy industry has seen since Exxon purchased Mobil for $73.7 billion back in 1999.
The new simplified structure will unify the company’s assets under one stock, which can also subsequently be used as currency for future acquisitions.
This deal will make Kinder Morgan the largest energy infrastructure company in North America and the third-largest energy company in North America, following only Exxon Mobil and Chevron.