NEW YORK (TheStreet) -- Energy Transfer Equity (ETE) stock is falling by 4.13% to $22.96 on heavy trading volume after reports suggested the Williams Cos. (WMB) board will consider Energy Transfer's acquisition offer, sources told Reuters.

Williams stock is also declining, down by 3.79% to $40.86 this afternoon.

Energy Transfer is altering its all-stock offer, which was valued at $48 billion in June, to include about 15% of the deal's value in cash, according to Reuters.

Williams, however, is now valued at $34 billion due to falling oil prices, Reuters noted.

Oil companies are increasingly turning to mergers and acquisition to deal with the decline in oil prices.

With this offer, Energy Transfer is proposing to become a C-corporation from its current master limited partnership structure leading to an increase in cash flows and maximizing tax advantages, Reuters added.

Dallas-based Energy Transfer and Tulsa, Okla.-based Williams provide oil and gas infrastructure for the energy industry.

Separately, TheStreet Ratings team rates ENERGY TRANSFER EQUITY LP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate ENERGY TRANSFER EQUITY LP (ETE) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and notable return on equity. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • ENERGY TRANSFER EQUITY LP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, ENERGY TRANSFER EQUITY LP increased its bottom line by earning $0.52 versus $0.15 in the prior year. This year, the market expects an improvement in earnings ($1.05 versus $0.52).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 81.7% when compared to the same quarter one year prior, rising from $164.00 million to $298.00 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, ENERGY TRANSFER EQUITY LP's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Despite the weak revenue results, ETE has outperformed against the industry average of 34.6%. Since the same quarter one year prior, revenues fell by 20.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The gross profit margin for ENERGY TRANSFER EQUITY LP is currently extremely low, coming in at 14.71%. Regardless of ETE's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 2.75% trails the industry average.
  • You can view the full analysis from the report here: ETE