NEW YORK (TheStreet) -- Shares of Williams Companies (WMB) - Get Report are down by 6.61% to $38.98 in mid-morning trading on Monday, after the energy infrastructure company announced it will merge with Energy Transfer Equity (ETE) in $37.7 billion deal.

Additionally, Williams also announced this morning that it is terminating its merger agreement with pipeline affiliate Williams Partners.

Energy Transfer Equity will acquire Williams for $43.50 per share in a transaction that includes debt and other liabilities.

"After a comprehensive evaluation of strategic alternatives, including extensive discussions with numerous parties, the Williams board of directors concluded that a merger with Energy Transfer Equity is in the best interests of Williams' stockholders and all of our other stakeholders. The merger provides Williams' stockholders with compelling value today as well as the opportunity to benefit from enhanced growth projects," Williams' Chairman Frank Maclnnis said.

The deal is expected to be completed in the first half of next year.

Separately, TheStreet Ratings team rates WILLIAMS COS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

We rate WILLIAMS COS INC (WMB) a BUY. This is driven by a number of 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 revenue growth, notable return on equity, expanding profit margins, good cash flow from operations and increase in net income. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

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

  • The revenue growth greatly exceeded the industry average of 34.6%. Since the same quarter one year prior, revenues slightly increased by 9.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • 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. When compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, WILLIAMS COS INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
  • 49.37% is the gross profit margin for WILLIAMS COS INC which we consider to be strong. It has increased significantly from the same period last year. Along with this, the net profit margin of 6.19% is above that of the industry average.
  • Net operating cash flow has significantly increased by 160.06% to $814.00 million when compared to the same quarter last year. In addition, WILLIAMS COS INC has also vastly surpassed the industry average cash flow growth rate of -19.71%.
  • 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 10.7% when compared to the same quarter one year prior, going from $103.00 million to $114.00 million.
  • You can view the full analysis from the report here: WMB