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Actionable news in WMB: WILLIAMS COMPANIES Inc,

Buckling Under The Williams Companies Deal Uncertainty


The Williams Companies and Energy Transfer Equity merger remains grossly uncertain.

There’s the June 28 deadline approaching, but new issues keep creeping up.

The logic approach is for two sides will try to renegotiate the terms, but it appears Energy Transfer would rather just walk away.

Either way, there’s just too much uncertainty to stay strapped in for the ride.

As a follow up to my post last month, detailing my dumping of Williams Companies (NYSE:WMB), I'm now taking a closer look at Energy Transfer Equity (NYSE:ETE) - which I still own. I decided to cut most of the losses, albeit small, on Williams given the uncertainty of the Energy Transfer merger (still own a small part of WMB).

Energy Transfer, on the surface, looks much more enticing; positioned to negotiate the Williams deal or walk away and still be a great play on midstream oil and gas. However, I'm still not convinced on holding Energy Transfer through the summer - or at least until the Williams-Energy Transfer deal deadline of June 28th.

Still, Energy Transfer is up nicely over the last couple months, thanks in large part to a rebound in oil prices. But still down 60% over the last twelve months.

Where We're At

Energy Transfer pursued Williams for close to a year before getting the company to agree to a merger in September. But over the last two years, the bottom has fallen out of oil prices. Energy Transfer is now left trying to get...