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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (38939)	5/24/2011 11:37:13 AM
From: E_K_S	Respond to of 78673

Williams Companies, Inc. (The)(NYSE: WMB) El Paso Corporation Common Stoc(NYSE: EP) It looks like EP is going the way of WMB and spin off its pipeline business from its E&P division. El Paso rallies after setting spinoff plans Energy specialist to separate into pipeline, production firms marketwatch.com Shares of El Paso Corp. rallied as much as 7% Tuesday after the company said it will split into two publicly traded companies by the end of 2011, as it ramps up efforts to boost domestic oil and gas production. From the article:"...The company said E&P Co.’s future growth will be fueled by more than 10 years of low-risk, repeatable drilling inventory, including positions in the Eagle Ford and Wolfcamp shales in Texas and the Altamont field in Utah. These and other properties “are expected to provide a profitable and rapidly growing oil-production profile,” El Paso said. El Paso said it expects the E&P Co.’s adjusted earnings before interest, taxes, depreciation and amortization to grow by about 20% in 2012. ..." finance.yahoo.com ----------------------------------------------------------------------- Disclosure : I own both EP (@ $7.94 7/2003) and WMB (@ $18.25 9/2009). I already peeled off some EP shares and put proceeds into a few small E&P companies. Both companies are still value investment holds for me. I am looking for %35.00/share in WMB before I peel off some shares and around $28.00/share in EP after their announced spin off. EKS

To: Spekulatius who wrote (38939)	10/16/2011 4:03:24 PM
From: E_K_S	Respond to of 78673

Hi Clownbuck I loaded up on EP shares in 2003 but over time peeled off a few shares to buy WMB. EP has good assets but still carried a lot of debt which is now going to be assumed by KM in the transaction. I think it shows that these NG pipeline assets are worth more than the market is currently pricing them at. I am now wondering if there may be a bidding war for several of the other pipeline assets that are held as subsidiary companies in companies like AGL, D, MDU or even WMB if they spinn off their E&P division. I also wonder if any of the smaller MLP's might be in play including SEP, TCLP or even EPD. Kinder Morgan to Buy El Paso for $38 Billion Including Debt bloomberg.com From the article:"...Kinder Morgan Inc. agreed to buy El Paso Corp. (EP) for about $38 billion in cash, stock and assumed debt, creating the largest U.S. natural gas pipeline network. The offer is valued at $26.87 per El Paso share, or 37 percent more than their Oct. 14 closing price, Houston-based Kinder Morgan said in a statement today. The offer is comprised of $14.65 in cash, 0.4187 shares of Kinder Morgan, and 0.64 Kinder Morgan warrants, the statement said...." ============================================================ EKS