RBC Capital Downgrades Williams Partners LP (WPZ) to Sector Perform

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Williams Announces Agreement to Acquire All Public Equity of Williams Partners L.P.; Plans 3Q 2015 Dividend Increase to $0.64 or $2.56 on an Annualized Basis; Expects Dividend Growth of 10%-15% Annua

May 13, 2015 7:00 AM EDT

Expect Transaction to be Meaningfully Accretive to Cash Available for Dividends with 2016-2018 Average Annual Accretion of over 10%; Coverage to Build from Over 1.1x in 2016 to Nearly 1.2x in 2018 Cash Flow Accretion and Extended Cash Tax Benefits Expected to Enable Extended Duration of 10-15% Dividend Growth Through 2020 Enhanced Growth Profile and Lack of Incentive Distribution Rights Expected to Significantly Lower Williams Cost of Capital for its Robust Portfolio of Natural Gas-Focused, Fee-Based Growth Projects as well as Potential M&A Additional Transaction Benefits Anticipated: Simplified... More