Why Shares of Williams Companies, Inc. Popped Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of energy infrastructure company Williams Companies  (NYSE: WMB  ) jumped as much as 26% today after announcing an acquisition.

So what: Williams is buying Global Infrastructure Partners' 50% general partner interest in Access Midstream Partners (NYSE: ACMP  ) and 55.1 million units in the limited partnership for $6 billion in cash. After the transaction closes, Williams will own 100% of the general partner and 50% of the limited partner. 

Now what: The goal long term is to merge Williams' MLP with Access Midstream's, creating one of the largest and fastest-growing MLPs in the industry. As investors have looked for access to a booming U.S. energy market, they've looked at the tax advantages of MLPs as a preferred investment vehicle and companies have responded by pushing more assets down to them. Clearly, investors like this large MLP's potential, particularly after Williams said it will increase its payout 32% to $0.56 per share.

Do you know this energy tax "loophole"?
You already know record oil and natural gas production is changing the lives of millions of Americans. But what you probably haven't heard is that the IRS is encouraging investors to support our growing energy renaissance, offering you a tax loophole to invest in some of America's greatest energy companies. Take advantage of this profitable opportunity by grabbing your brand-new special report, "The IRS Is Daring You to Make This Investment Now!," and you'll learn about the simple strategy to take advantage of a little-known IRS rule. Don't miss out on advice that could help you cut taxes for decades to come. Click here to learn more.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2995830, ~/Articles/ArticleHandler.aspx, 11/27/2014 11:12:30 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement