For Natural Gas Investors Only: Not (Really) Related to the Bakken - WMB

This is one of the reasons I enjoy the blog experience. A few folks send me links that send me in interesting directions.

This was sent to me, from a posting on the DNR board. I do not hold shares in DNR. Denbury recently bought Encore, a fairly big player in the Bakken. But that has nothing to do with the following, a comment found on the DNR Yahoo!Message boards. You should read the full message at the link, but these are the data points, as expressed by "Harold," who has a history of great posts:

• WMB offers a compelling opportunity for those who desire an inexpensive exposure to natural gas
• There is currently a natural gas glut, but like all gluts, it will end sometime
• WMB owns 84% of Williams Partners, WPZ
• WPZ will increase its distribution to about $3 next year (about 6% yield)
• Market value of WPZ will be about $13 billion; WMB's share is worth $19/share
• WMB's distribution from WPZ is worth about $6/share
• Therefore: WMB has about a $25/share value just for WPZ

• WMB has another $2/share of pipeline, midstream assets not in the partnership
• WMB has net debt of about $1/share
• Therefore, WMB value is about $26/share and is trading for $18.50

 But, it's probably worth much more. For the rest of the comments, go to the link.

I hold WMB for the long term, and continue to add to it.