NEW YORK (TheStreet) -- Energy Transfer Equity (ETE) stock is gaining by 5.09% to $11.57 in mid-afternoon trading on Friday, as the pipeline company has filed a counterclaim to Williams Cos.'s (WMB) lawsuit alleging that Energy Transfer breached their merger agreement. 

Energy Transfer's counterclaim argues that it was instead Williams Cos. that breached the merger agreement by, among other things, refusing to cooperate with its attempts to finance the merger and failing to use "reasonable best efforts" to complete it, according to a company statement. 

Energy Transfer seeks to terminate the deal, which was valued at $32.9 billion when it was announced in September.

If the merger fails to close, Williams would owe Energy Transfer a $1.48 billion termination fee.

Additionally, a Dallas judge has approved a motion to dismiss Williams Cos.'s lawsuit against Energy Transfer CEO Kelcy Warren.

Williams Cos. alleged that Warren wrongfully interfered with the companies' merger when Energy Transfer issued special preferred shares to company insiders, consequently shielding them from a dividend cut.

Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C.

Energy Transfer's strengths such as its increase in net income and impressive record of earnings per share growth are countered by weaknesses including a generally disappointing performance in the stock itself and poor profit margins.

You can view the full analysis from the report here: ETE

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.

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