Wednesday, January 14, 2015

Added Williams Partners

Added shares (units) of Williams Partners LP (NYSE: WPZ) this morning. Happy to pick up more of this great partnership. Williams is the owner and operator of the Transco Pipeline, a bi-directional pipeline between the Gulf Coast and eastern seaboard. Gas can flow from Appalachia to New York or to the Gulf Coast, or from the traditional Gulf Coast - East Coast like it has been for so long..

Anyways I'm rambling. Fantastic 9% yield. That's going to fall as Williams merges with ACMP. However, I think we can expect a 4.5%-5% yield at this price with 10%-12% growth. I'll take it. 

Little commodity exposure, really. The Marcellus is in dire need of pipelines to better markets, and once those Marcellus producers get a good pipeline connection, they have a cost advantage over pretty much everyone. 

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