Natural Gas Is Hot, Williams Partners L.p. (NYSE:WPZ) Is Attracting Smart Money


Natural gas had a tough 2016, but as we head into the first quarter of 2017 (and indeed, based on the final month of 2016) the sector seems to be rebounding. We’re seeing this demonstrated by the flurry of institutional capital heading into the space. Here’s a look at the latest round, and what it means for the company in question.

In a just published Form 13, filed with the US Securities and Exchange Commission (SEC), Williams Partners L.p. (NYSE:WPZ) reported that Williams Companies Inc. has picked up 660,201,988 of common stock as of 2017-01-10.

The acquisition brings the aggregate amount owned by Williams Companies Inc. to a total of 660,201,988 representing a 72.3% stake in the company.

For those not familiar with the company, Williams Partners L.P., formerly Access Midstream Partners, L.P, is an energy infrastructure master limited partnership with operations across the natural gas value chain. The Company’s segments include Central, Northeast G&P, Atlantic-Gulf, West, and NGL & Petchem Services. Its Central segment provides domestic gathering, treating, and compression services to producers under long-term, fixed fee contracts. Northeast G&P segment includes natural gas gathering and processing, and NGL fractionation businesses in the Marcellus shale region primarily in Pennsylvania, New York, and West Virginia and Utica shale region of eastern Ohio.

A glance at Williams Partners L.p. (NYSE:WPZ)’s key stats reveals a current market capitalization of 23.28 billion based on 595.92 million shares outstanding and a price at last close of $38.66 per share.

Looking at insider activity, there are a few transactions worth noting.

Specifically, on 2015-12-07, Armstrong picked up 15,000 at a purchase price of $21.05. This brings their total holding to 15,000 as of the date of the filing.

On the sell side, the most recent transaction saw Seldenrust unload 9,023 shares at a sale price of $37.67. This brings their total holding to 53,998.

It’s possible to gauge a company’s potential by tracking the activity of its major holders, as well as checking in on insider activity such as those transactions listed above. We’ll be keeping an eye on Williams Partners L.p. (NYSE:WPZ) as things move forward to see if its progress aligns with these transactions.

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