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Williams wants to be alone after ETE breakup, shares rise

Source: Williams Companies

Williams Cos.' shares popped nearly 6 percent on Tuesday after it announced that it wants to forge ahead as a stand-alone company and invested $1.7 billion in Williams Partners, its limited partnership affiliate.

The Tulsa, Oklahoma-based global energy and communications will slash dividends by 69 percent to 20 cents per share from 64 cents per share in the third quarter to finance the transaction according to a release. The news comes after the end of Williams' relationship with Energy Transfer Equity last month. A Delaware court approved ETE's wish to terminate the $33 billion merger agreement.

Williams Cos. reported second-quarter adjusted earnings of $1.065 billion on 19 cents per share, which is a $48 million increase from the year-earlier period, according to a release Monday.

"As we move forward, our organization is fully aligned, energized and focused on simplifying the way we operate and make decisions. We are committed to executing on our projects, lowering our overall risk, and driving stockholder value by delivering on our growth strategy and strengthening our balance sheet, " said Alan Armstrong, CEO of Williams Cos.

The company's stock closed just shy of $24 per share on Tuesday. Its shares have fallen more than 6 percent so far this year. On the other hand, Williams Partners is up more than 8.3 percent and has seen a 36 percent pop since the beginning of this year.

Williams Cos. year to date:

Correction: An earlier version misstated Williams Cos. earnings.