Williams Pipeline Partners makes stock debut

By Don Mecoy Published: January 18, 2008
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TULSA — Oklahoma's latest publicly traded company, Williams Pipeline Partners, will debut today on the New York Stock Exchange.

Tulsa-based Williams Pipeline Partners will offer 16.25 million common units at $20 per unit. The unit will trade under the ticker symbol "WMZ.”

The company expects to clear about $304.3 million through the initial public offering after some fees and underwriting expenses. The partnership will use the proceeds to buy a 15.9 percent general partnership interest in Northwest Pipeline, which moves natural gas from the Rockies to the Pacific Northwest.

The company anticipates distributing $1.15 per unit per year to unit holders through quarterly distributions. Master limited partnerships such as Williams Pipeline Partners are attractive to investors seeking dividends because the company's distribute all their cash on hand quarterly.

Williams Pipeline Partners is the second master limited partnership launched by Tulsa natural gas giant Williams Cos. Inc., Oklahoma's second-largest publicly traded company. The units of the previous issue, Williams Partners LLC, have gained 74 percent since launching in 2005 at $21.50 per unit, closing Thursday at $37.48.

The new issue follows a recent trend demonstrating the strength of the state's energy sector.