This Week in Energy: Apache, Chesapeake, Williams, Enterprise Products, and Oasis

Pipeline Merger Between Enterprise Products and Williams Not to Be At the Moment

Enterprise Products Partners L.P. (NYSE:EPD) isn’t interested in Williams Companies Inc (NYSE:WMB) anymore. According to a press release made by Enterprise Products this week, the company is no longer interested in a merger with Williams due to “recent news leaks, movements in the price of the partnership’s common units as well as questions from investors.” Enterprise Products further stated:

“As a result of rumors with respect to our proposals, as well as the lack of engagement by Williams, we have determined that there is no actionable path forward toward an agreement. We, therefore, have withdrawn our non-binding proposals.”

As is often the case with failed merger attempts, pricing may have had something to do with the failed marriage. According to CNBC Now, it turned out that Enterprise Product’s offer for Williams was less than 10% higher than its spot price. Some major investors in Williams are still in support of potentially reviving the Enterprise merger, however, so the fat lady hasn’t sung yet.

28 hedge funds in our database were long Enterprise Products Partners L.P. (NYSE:EPD) at the end of the second quarter, up by one from the end of the previous quarter. Comparatively, Williams Companies Inc (NYSE:WMB) was a little more popular, with 58 funds reporting stakes in it as of June 30, up by six from March 31.

Disclosure: None