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Williams Partners (WPZ) Prices Senior Notes Worth $1.45B
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Energy infrastructure provider Williams Partners LP has announced the pricing of $1.45 billion worth of senior notes carrying an interest rate of 3.75%. The notes are expected to mature by 2027 and the offering will likely close by Jun 5, 2017.
The partnership has priced senior notes that are being offered to the public at 99.949% of par. It is to be noted that the net proceeds from the offering will be utilized to repay $1.4 billion senior notes set to mature by 2023 at an interest rate of 4.875%. The proceeds will also be allocated for other general partnership activities.
Williams Partners has been relying on debt capital to a significant extent for supporting its operations. Over the last six years, we have taken note of the increase in partnership’s debt load, making the balance sheet considerably unimpressive.
However, Williams Partners has been looking for ways to strengthen its balance sheet. In line with this, the partnership recently decided to offload the Geismar plant for $2.1 billion. The proceeds are expected to improve its cash reserves and lower its debt burden. The funds will also be used for financing growth projects.
In its financial outlook, Williams Partners mentioned that it will not rely only on the debt market for future growth projects. Instead, it will resort to its cash flow reserve, proceeds from asset sales and lower cost debt capital.
Based in Tulsa, OK, Williams Partners is a publicly traded master limited partnership with midstream infrastructure assets that are involved in transporting, gathering and processing natural gas and natural gas liquids.
We are optimistic about the partnership’s focus on stable fee-based natural gas transportation assets. Also, Williams Partners’ coverage ratio has been rising over the last three quarters, reflecting its improved ability to settle financial obligations.
Despite those positives, the partnership’s price chart shows considerable weaknesses. Over the last three months, Williams Partners lost 3.5%, comparing unfavorably with the 2.3% decline of the Zacks categorized Energy & Pipeline Mlp industry.
Williams Partners currently carries a Zacks Rank #3 (Hold). Better-ranked players in the energy sector include Canadian Natural Resources Limited (CNQ - Free Report) , McDermott International Inc. and W&T Offshore Inc. (WTI - Free Report) . Canadian Natural and McDermott sport a Zacks Rank #1 (Strong Buy), while W&T Offshore carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
We expect year-over-year earnings growth for Canadian Natural of 720% for 2017.
McDermott beat the Zacks Consensus Estimate in each of the trailing four quarters, the average positive surprise being 387.50%.
W&T Offshore had an average positive earnings surprise of 69.21% in the last four quarters.
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Williams Partners (WPZ) Prices Senior Notes Worth $1.45B
Energy infrastructure provider Williams Partners LP has announced the pricing of $1.45 billion worth of senior notes carrying an interest rate of 3.75%. The notes are expected to mature by 2027 and the offering will likely close by Jun 5, 2017.
The partnership has priced senior notes that are being offered to the public at 99.949% of par. It is to be noted that the net proceeds from the offering will be utilized to repay $1.4 billion senior notes set to mature by 2023 at an interest rate of 4.875%. The proceeds will also be allocated for other general partnership activities.
Williams Partners has been relying on debt capital to a significant extent for supporting its operations. Over the last six years, we have taken note of the increase in partnership’s debt load, making the balance sheet considerably unimpressive.
However, Williams Partners has been looking for ways to strengthen its balance sheet. In line with this, the partnership recently decided to offload the Geismar plant for $2.1 billion. The proceeds are expected to improve its cash reserves and lower its debt burden. The funds will also be used for financing growth projects.
In its financial outlook, Williams Partners mentioned that it will not rely only on the debt market for future growth projects. Instead, it will resort to its cash flow reserve, proceeds from asset sales and lower cost debt capital.
Based in Tulsa, OK, Williams Partners is a publicly traded master limited partnership with midstream infrastructure assets that are involved in transporting, gathering and processing natural gas and natural gas liquids.
We are optimistic about the partnership’s focus on stable fee-based natural gas transportation assets. Also, Williams Partners’ coverage ratio has been rising over the last three quarters, reflecting its improved ability to settle financial obligations.
Despite those positives, the partnership’s price chart shows considerable weaknesses. Over the last three months, Williams Partners lost 3.5%, comparing unfavorably with the 2.3% decline of the Zacks categorized Energy & Pipeline Mlp industry.
Williams Partners currently carries a Zacks Rank #3 (Hold). Better-ranked players in the energy sector include Canadian Natural Resources Limited (CNQ - Free Report) , McDermott International Inc. and W&T Offshore Inc. (WTI - Free Report) . Canadian Natural and McDermott sport a Zacks Rank #1 (Strong Buy), while W&T Offshore carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
We expect year-over-year earnings growth for Canadian Natural of 720% for 2017.
McDermott beat the Zacks Consensus Estimate in each of the trailing four quarters, the average positive surprise being 387.50%.
W&T Offshore had an average positive earnings surprise of 69.21% in the last four quarters.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
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