Williams

Energy Services | Energy Transfer Partners | Industrywide Issues | Litigation | M&A | Williams

Midstream Soap: ETE Sues to Walk Away from Williams Takeover Deal
May 31, 2016May 31, 2016

In last Thursday’s episode of “As the (Midstream) World Turns” (ATMWT) MDN told you that Williams still wants to marry Energy Transfer Equity (ETE), even though both companies are suing each other over the proposed merger (see As the M&A World Turns: Williams Still Wants to Marry ETE). Then we took a long weekend for Memorial Day and of course a lot has happened in the meantime. Let’s being with last Thursday: ETE sued to terminate the agreement to buyout Williams, and had the chutzpah to ask the court for a $1.48 billion breakup fee–after ETE themselves sought to change the terms of the merger throwing the deal into doubt! On Friday, sensing the deal is going south, Williams entered into private discussions with ETE about changing the terms of the merger–forgoing $6 billion in cash that was part of the deal, expressing their willingness to accept ETE stock insted. Here’s the latest episode of ATMWT…
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Energy Services | Energy Transfer Partners | Industrywide Issues | M&A | Regulation | Williams

As the M&A World Turns: Williams Still Wants to Marry ETE
May 26, 2016May 26, 2016

Both Energy Transfer Equity (ETE) and Williams yesterday issued statements about their proposed/impending merger that say Form S-4 filed with the Securities and Exchange Commission (SEC) has been ruled “effective.” As we so often point out, we’re not Wall Street wizards. From what we can determine, an S-4 is a filing between companies that propose to merge. The SEC is (we think) saying that the proposed stock swap between ETE and Williams can move forward, when and if the merger closes. That is, the SEC is cool with the proposed plan to merge. ETE points out there are still roadblocks to such a merger, and Williams continues to press several lawsuits to force ETE into the merger they (ETE) wanted in the first place. Below we have yesterday’s statement about the S-4 along with ETE’s continued “but but but” statement. We also include some interesting and insightful analysis from a writer on the Seeking Alpha investors website…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Lebanon County | Pennsylvania | Pipelines | Transco | Williams

Pipes Stacked & Ready to Go in Lebanon, PA for Atlantic Sunrise
May 24, 2016May 24, 2016

Atlantic Sunrise Pipeline map – click for larger version

Anti-drillers in Lebanon County, PA–virulently opposed to any new pipeline construction in the county–have their noses bent out of joint. Williams and their Transco pipeline have had the temerity to stack a bunch of pipe they intend to use when construction begins. This can’t stand!! It means (gasp) construction will soon begin. The pretend bubble these kooks live in has just been burst and they frankly don’t know how to handle it. They are “surprised and dismayed” by seeing the stacked pipes. It’s kind of amusing…
Read More “Pipes Stacked & Ready to Go in Lebanon, PA for Atlantic Sunrise”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | New York | Pipelines | Regulation | Statewide NY | Williams

NY AG’s Allegation of Tree Cutting by Constitution Pipe a Fraud
May 23, 2016May 23, 2016

NY’s arrogant AG – Eric Schneiderman

The Attorney General of New York State, Eric Schneiderman, has been caught in a lie and he’s furiously backpedaling, trying to cover it up. On May 13 Schneiderman tried to pull a fast one by filing a complaint with the Federal Energy Regulatory Commission (FERC) requesting FERC investigate the Constitution Pipeline for illegal felling of trees along the pipeline’s path in New York State (see NY Attorney General Asks FERC to Investigate Constitution Pipe). Guess what. Tree’s WERE cut along the path–but not by the Constitution. Landowners who wanted to realize the most money from trees that will eventually be cut were cutting the trees ON THEIR OWN, without the help, consent, assistance, nor any form of aide from the Constitution. Schneiderman’s pathetic response? The Constitution should have known those stupid farmers would cut the trees and should have done something to stop it. What breathtaking arrogance…
Read More “NY AG’s Allegation of Tree Cutting by Constitution Pipe a Fraud”
Energy Services | Industrywide Issues | Litigation | New York | Pipelines | Statewide NY | Williams

Williams Sues NY Over Constitution Pipe – DEC May Lose Authority
May 17, 2016May 22, 2016

Three cheers for Williams. Hip hip horray! Williams announced yesterday a two-pronged legal challenge against New York State and its decision to deny stream crossing permits for the federally-approved Constitution Pipeline project (see NY Gov. Cuomo Refuses to Grant Permits for Constitution Pipeline). The first prong is a lawsuit filed in the U.S. Circuit Court of Appeals for the Second Circuit–challenging the decision itself as “arbitrary and capricious.” The second prong is a lawsuit filed in the U.S. District Court for the Northern District of New York–seeking recognition by the court that New York doesn’t even have jurisdiction over the project. It is this second case that should have Cuomo, the DEC and the antis VERY worried. If the case goes against them, it means that New York will forever be cut out of decision-making with regard to any FERC-approved projects. Properly so. NY has shown itself to be motivated by politics and not by science and certainly not by common sense. It’s time to remove NY from the equation. Staffers at the state Dept. of Environmental Conservation (DEC) feared this might happen and counseled Cuomo to approve the Constitution project–sage advice he ignored…
Read More “Williams Sues NY Over Constitution Pipe – DEC May Lose Authority”
Energy Services | Industrywide Issues | New York | Pipelines | Regulation | Statewide NY | Williams

NY Attorney General Asks FERC to Investigate Constitution Pipe
May 17, 2016May 17, 2016

NY AG Eric Scheniderman

Apparently the lawless attorney general of New York State, Eric Schneiderman, suspected Williams would sue the state over the Constitution Pipeline (see today’s lead story). In anticipation of such a lawsuit, last Friday Schneiderman sought to provide the corrupt Gov. Cuomo and his corrupt Dept. of Environmental Conservation (DEC) with political cover by demanding a federal investigation into the Constitution Pipeline. Schneiderman petitioned the Federal Energy Regulatory Commission (FERC) accusing Williams of (gasp) cutting down some trees along the pipeline route before New York’s dictatorial governor granted his “Mother, May I?” permission to do so. The petition/request is a not-so-transparent attempt to smear the Constitution project and deflect attention away from the lawless way in which the state has acted in not allowing this federally-approved project from advancing. In this case the feds trump the state–and that very issue will now play out in court…
Read More “NY Attorney General Asks FERC to Investigate Constitution Pipe”
Energy Services | Industrywide Issues | Pipelines | Williams

Williams Announces Open Season for Northeast Supply Enhancement
May 17, 2016May 17, 2016

Transco Northeast Supply Enhanacement Project map – click for larger version

Last week MDN brought you the news that Williams has pre-filed an application with the Federal Energy Regulatory Commission for the the Northeast Supply Enhancement project–a project to expand the Transco pipeline to increase pipeline capacity and flows heading into northeastern markets (see Williams Pre-Files with FERC to Expand Tranco Pipeline in PA, NY). Yesterday Williams announced an official, “binding” open season for the project–to sign customers to long-term contracts to use the expanded capacity…
Read More “Williams Announces Open Season for Northeast Supply Enhancement”
Energy Services | Energy Transfer Partners | Industrywide Issues | Litigation | M&A | Williams

Williams Files 3rd Lawsuit Against ETE to Force Merger by June 28
May 16, 2016May 16, 2016

Energy Transfer Equity (ETE) pushed and prodded and poked and cajoled and insisted, and finally with the help of an inside corporate raider, forced Williams to agree to a buyout/merger (see Williams Accepts ETE’s “Indecent Proposal” – Price Went Down $10B). Then the bottom dropped out of the price of natural gas and drillers scaled back drilling and consequently midstream (i.e. pipeline) companies like ETE and Williams got pinched. And ETE got cold feet (see ETE Wants Out of Williams Merger/Takeover, Offering $2B Breakup Fee). Williams said “not so fast, you wanted us, you’ll be taking us” and consequently sued ETE to force the merger to happen (see Merger Turns Sour: Williams Sues ETE/CEO Kelcy Warren). On Friday, Williams filed their third lawsuit to force ETE to complete the merger. ETE’s CEO Kelsey Warren says Williams is “meritless” and will “lead to delays” in the merger. What in the world is going on?…
Read More “Williams Files 3rd Lawsuit Against ETE to Force Merger by June 28”
Energy Services | Industrywide Issues | Lancaster County | New York | Pennsylvania | Pipelines | Regulation | Statewide NY | Transco | Williams

Williams Pre-Files with FERC to Expand Transco Pipeline in PA, NY
May 13, 2016March 28, 2017

Transco Northeast Supply Enhanacement Project map – click for larger version

Williams’ Transcontinental Gas Pipe Line Company (Transco) has asked the Federal Energy Regulatory Commission for permission to begin the pre-filing process on a new project, called the Northeast Supply Enhancement project. The new project is meant to increase pipeline capacity and flows heading into northeastern markets. In particular, Transco wants to provide more natural gas to utility giant National Grid beginning with the 2019-2020 heating season. National Grid operates in New York City, Rhode Island and Massachusetts. The Northeast Supply Enhancement project would build 10 miles of new pipeline in Lancaster County, PA (laid next to three existing pipelines, in the same corridor). It would also require 22 miles of new offshore pipeline located in New York Bay. A new compressor station would be built in Somerset County, NJ along with other upgrades, including an added compressor unit at a plant in Chester County, PA…
Read More “Williams Pre-Files with FERC to Expand Transco Pipeline in PA, NY”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Statewide PA | Williams

Dela. Riverkeeper Launches Lawsuit Against Atlantic Sunrise Project
May 13, 2016May 13, 2016

It’s time to sue THE Delaware Riverkeeper out of existence. The group is a litigious nuisance and anti-American. It is led by Maya van Rossum and fed by money from the Heinz Endowments and William Penn Foundation. Even with repeated calls the IRS has refused to investigate violations of the group’s non-profit status. The latest outrage from this group of virulent radicals is to launch a lawsuit to try and stop Williams’ Atlantic Sunrise Pipeline project through southeastern PA. Just last week Williams received a favorable Environmental Assessment (EA) from the Federal Energy Regulatory Commission (see Williams’ Atlantic Sunrise Pipeline Gets Positive EIS from FERC). That was all it took. The writing is on the wall that FERC will approve the project and Williams will build it. This is a last-ditch effort by van Rossum and other radicals to shut down the project…
Read More “Dela. Riverkeeper Launches Lawsuit Against Atlantic Sunrise Project”
Energy Services | Williams

Williams 1Q16: Lost $65M; Constitution, Atlantic Sunrise Updates
May 9, 2016May 9, 2016

Last week midstream giant Williams issued its first quarter 2016 update. The company reported a net loss of $65 million in 1Q16, compared to making $70 million in 1Q15. The company said the difference was because of higher interest expenses and due to a change in internal accounting practices–not because of lost business. Along with the update Williams’ top brass held an analyst/earnings call. Notably on the call they refused to take any questions dealing with the impending merger/takeover by Energy Transfer Equity (ETE). Williams has sued ETE over that plan and apparently Williams’ lawyers put the fear of God into management that they could not talk about the case or the merger during the phone call–which is disappointing given that ETE did talk about it on their call (see ETE CEO Kelsey Warren Says Williams Merger “Can’t Close”). Below is the update and select portions of the phone call with updates on a number of northeastern pipeline projects, including the Constitution Pipeline, Atlantic Sunrise, and others…
Read More “Williams 1Q16: Lost $65M; Constitution, Atlantic Sunrise Updates”
Energy Services | Energy Transfer Partners | Industrywide Issues | M&A | Williams

ETE CEO Kelsey Warren Says Williams Merger “Can’t Close”
May 6, 2016May 6, 2016

Last year midstream giant Energy Transfer Equity and its CEO Kelsy Warren pursued Williams, for months, and finally got Williams to agree to a deal to sell itself to Warren for $38 billion (see Williams Accepts ETE’s “Indecent Proposal” – Price Went Down $10B). Over the following months, the gas market tanked price-wise, and Warren got cold feet (see ETE Wants Out of Williams Merger/Takeover, Offering $2B Breakup Fee). Then he wanted to change the deal, making it an all stock-swap deal instead of having to pony up billions in cash–because of tax implications. Along the way Warren got his board to issue a sweetheart stock deal to himself and other top managers/investors as a hedge against the deal, which enraged Williams (see Merger Turns Sour: Williams Sues ETE/CEO Kelcy Warren). On a quarterly earnings call yesterday, ETE’s top brass addressed the Williams merger controversy. CEO Kelsy Warren said point blank: “I’d like to be really direct about this. We can’t close. We don’t have a transaction that can close. So I want to be very clear: We can’t close this transaction … So, absent a substantial restructuring of this transaction — which Energy Transfer has … been very willing and … actually desiring to do — absent that, we don’t have a deal.” Apparently the deal as proposed by Warren, with a cash component, will be taxable in ways he didn’t plan–so he either wants Williams to accept a stock swap, or bail from the deal. Here’s what was said on yesterday’s phone conference…
Read More “ETE CEO Kelsey Warren Says Williams Merger “Can’t Close””
Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Regulation | Statewide PA | Williams

Williams’ Atlantic Sunrise Pipeline Gets Positive EIS from FERC
May 6, 2016May 6, 2016

Atlantic Sunrise Pipeline map – click for larger version

The sun continues to rise on on Williams’ Transco Atlantic Sunrise pipeline project. It seems like we’ve covered the story of Atlantic Sunrise forever–a $2.1 billion project consisting of compression and looping of the Transco Leidy Line in Pennsylvania along with a greenfield (brand new) pipeline segment of 178 miles, called the Central Penn Line, connecting the northeastern Marcellus producing region to the Transco mainline near Station 195 in southeastern Pennsylvania (see Atlantic Sunrise Will Pump $1.6B into Economy, Create 8K Jobs). There’s been some opposition from wackos and nutjobs–but for all their bluster, they are relatively few in number. In April 2015 Williams filed an official application with the Federal Energy Regulatory Commission (see It’s Official: Williams Files with FERC for Atlantic Sunrise Pipeline). A major step in the approval process is to receive a favorable environmental impact statement (EIS) from FERC. That happened yesterday. FERC says that although there are “some impacts on the environment,” those impacts “would be reduced to less-than-significant levels” with proposed mitigation by Williams. This is really terrific news–an indication that FERC will grant final approval later this year or early next year…
Read More “Williams’ Atlantic Sunrise Pipeline Gets Positive EIS from FERC”
Energy Services | Industrywide Issues | New York | Pipelines | Regulation | Statewide NY | Williams

Analyst Says Check Your History, Constitution Pipe Won’t Get Built
May 6, 2016May 6, 2016

Constitution Pipeline map – click for larger version

An analyst with a Washington, D.C. policy and research firm believes that Gov. Andrew Cuomo’s recent action in denying Williams stream crossing permits for the Constitution Pipeline means that project is dead. He cites another pipeline project from a decade ago–the Islander East project–that faced a similar situation. In the end, Islander East didn’t get built. He believes the same fate is in store for the Constitution. We sincerely hope he’s wrong and that FERC (Federal Energy Regulatory Commission) will “grow a pair” and not let Gov. Cuomo bully them. At its heart this is a battle over the trampling of federal authority. We find it curious that Obama and his sycophants throughout the government are hellbent on expanding federal authority over every aspect of our lives–from health care, to what we eat, to what forms of power we can use. And yet these same people stand by and are silent when a federal agency like FERC is emasculated by a state like NY. Of course it should be the opposite. This is one time when the federal government Constitutionally has the authority to act, and that authority has been illegally co-opted by a state. FERC needs to force the issue in court to overrule NY’s abuse of power. The analyst, however, doesn’t see it that way…
Read More “Analyst Says Check Your History, Constitution Pipe Won’t Get Built”
Energy Services | Energy Transfer Partners | Industrywide Issues | M&A | Williams

Carl Icahn Protege Gets Burned from Meddling in ETE/Williams Deal
April 27, 2016April 27, 2016

We knew that corporate raider Carl Icahn’s protege, Keith “Mini-Me” Meister, had been meddling in Williams since 2013 (see Bad News: Corporate Raiders Take Aim at Williams and Evil Corporate Raiders Double Investment (& Control) in Williams). What we didn’t know, until now, is that Mini-Me Meister was the puppet-master behind Williams’ decision to cave and accept Energy Transfer Equity’s “indecent proposal” (see Williams Accepts ETE’s “Indecent Proposal” – Price Went Down $10B). It seems that Mini-Me Meister doesn’t have quite the same touch that Godfather Carl does, because the ETE/Williams deal is falling apart and Mini-Me Meister has gotten burned on his investment in Williams. He’s lost a LOT of money…
Read More “Carl Icahn Protege Gets Burned from Meddling in ETE/Williams Deal”
Coterra Energy (Cabot O&G) | Energy Companies | Energy Services | Industrywide Issues | Litigation | New York | Pipelines | Regulation | Statewide NY | Williams

Cabot/Williams to NY: You Lied Re Constitution Pipe, We’re Suing
April 26, 2016April 26, 2016

The partners in the Constitution Pipeline, including Williams and Cabot Oil & Gas, have come roaring back against Gov. Cuomo and his pusillanimous Dept. of Environmental Conservation (DEC) after the DEC lied last Friday in announcing they would not grant stream crossing permits for the pipeline project. Yesterday Cabot, along with Williams, issued a STRONGLY worded rebuttal that says, in part that the DEC’s “stated rationale for the denial includes flagrant misstatements and inaccurate allegations, and appears to be driven more by New York State politics than by environmental science.” Flagrant misstatements is another way of saying the DEC lied, which is exactly what we said yesterday (see NY Gov. Cuomo Refuses to Grant Permits for Constitution Pipeline). The new statement also says the Constitution worked closely with the DEC for three years and bent over backwards, forwards and in every other possible direction to meet the DEC’s requests and requirements. The statement says “The project sponsors will pursue all available options to challenge the legality and appropriateness of New York’s decision.” In other words, we’re suing to force this project through. Good! About time!! Here’s the full statement (take time to read it)…
Read More “Cabot/Williams to NY: You Lied Re Constitution Pipe, We’re Suing”