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Williams (WMB) Prevails in $495M Dispute With Energy Transfer
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The Williams Companies, Inc. (WMB - Free Report) emerged victorious on Tuesday in its dispute over the failed $33-billion merger with Energy Transfer LP (ET - Free Report) after a prolonged seven-year legal struggle. The Delaware Supreme Court delivered a verdict, affirming WMB's $495-million court victory and dismissing Energy Transfer's challenge.
The court's decision sided with Williams and endorsed a string of earlier judgments that placed the responsibility for the collapsed merger on Energy Transfer, which walked away from the agreement in 2016.
Justice N. Christopher Griffiths upheld Glasscock's rulings from the Delaware Chancery Court, which granted Williams $410 million in damages and $85 million in legal fees. Additionally, the state's highest court supported Glasscock's dismissal of Energy Transfer's $1.48 billion breakup fee proposal.
The decision was concurred by chief justice Collins J. Seitz Jr. and justices Abigail M. LeGrow, Karen L. Valihura and Gary F. Traynor. Williams was represented by Morris, Nichols, Arsht & Tunnell LLP and Cravath, Swaine & Moore LLP, while Energy Transfer was represented by Young Conaway Stargatt & Taylor LLP and Clement & Murphy PLLC.
This landmark judgment not only brings closure to a protracted legal battle but also solidifies WMB's position in the energy sector. Both Williams and Energy Transfer have yet to release official statements regarding the court's final ruling, but the impact of this decision is expected to have far-reaching implications in the corporate landscape.
Zacks Rank & Key Picks
Currently, Williams carries a Zack Rank #3 (Hold).
Matador Resources is among the leading oil and gas explorers in the shale and unconventional resources in the United States. The company’s prime intention is to create more value for shareholders and generate lucrative returns from the capital invested in unconventional plays. MTDR has witnessed upward earnings estimate revisions for 2023 and 2024 over the past seven days.
Pioneer Natural Resources is a leading upstream energy firm with primary operations in the Permian basin, which is among the lucrative oil shale plays in the United States with fewer risks. Its total holding of more than 1 million net acres in the Permian basin will support long-term oil production growth. PXD has witnessed upward earnings estimate revisions for 2023 and 2024 in the past seven days.
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Williams (WMB) Prevails in $495M Dispute With Energy Transfer
The Williams Companies, Inc. (WMB - Free Report) emerged victorious on Tuesday in its dispute over the failed $33-billion merger with Energy Transfer LP (ET - Free Report) after a prolonged seven-year legal struggle. The Delaware Supreme Court delivered a verdict, affirming WMB's $495-million court victory and dismissing Energy Transfer's challenge.
The court's decision sided with Williams and endorsed a string of earlier judgments that placed the responsibility for the collapsed merger on Energy Transfer, which walked away from the agreement in 2016.
Justice N. Christopher Griffiths upheld Glasscock's rulings from the Delaware Chancery Court, which granted Williams $410 million in damages and $85 million in legal fees. Additionally, the state's highest court supported Glasscock's dismissal of Energy Transfer's $1.48 billion breakup fee proposal.
The decision was concurred by chief justice Collins J. Seitz Jr. and justices Abigail M. LeGrow, Karen L. Valihura and Gary F. Traynor. Williams was represented by Morris, Nichols, Arsht & Tunnell LLP and Cravath, Swaine & Moore LLP, while Energy Transfer was represented by Young Conaway Stargatt & Taylor LLP and Clement & Murphy PLLC.
This landmark judgment not only brings closure to a protracted legal battle but also solidifies WMB's position in the energy sector. Both Williams and Energy Transfer have yet to release official statements regarding the court's final ruling, but the impact of this decision is expected to have far-reaching implications in the corporate landscape.
Zacks Rank & Key Picks
Currently, Williams carries a Zack Rank #3 (Hold).
A couple of better-ranked stocks in the energy sector are Matador Resources Company (MTDR - Free Report) and Pioneer Natural Resources Company (PXD - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Matador Resources is among the leading oil and gas explorers in the shale and unconventional resources in the United States. The company’s prime intention is to create more value for shareholders and generate lucrative returns from the capital invested in unconventional plays. MTDR has witnessed upward earnings estimate revisions for 2023 and 2024 over the past seven days.
Pioneer Natural Resources is a leading upstream energy firm with primary operations in the Permian basin, which is among the lucrative oil shale plays in the United States with fewer risks. Its total holding of more than 1 million net acres in the Permian basin will support long-term oil production growth. PXD has witnessed upward earnings estimate revisions for 2023 and 2024 in the past seven days.