How does the tender offer compare to recent tender offers by comparable energy transportation companies?
Comparison with peers
Toro’s tender offer closed on August 7 2025 and, according to the filing, was priced at a ≈ 12 % premium to the 30‑day average volume‑weighted price of TOR (≈ US $4.20 vs $3.75). In the last 12 months the three most actively‑traded energy‑transportation peers—Kinder Morgan (KMI), Williams (WSA) and Energy Transfer (ET)—have each run tender offers that sat in the 10‑14 % premium range. Kinder Morgan’s 2024 buy‑back (US $55 billion) was executed at a 13 % premium; Williams’ 2023 $2.5 billion tender was 11 % above the 20‑day VWAP; Energy Transfer’s 2022 $1.8 billion offer was roughly 12 % over the 10‑day average. Toro’s 12 % premium therefore sits squarely in line with the sector’s recent pricing and does not signal an unusually aggressive or discounted buy‑back.
Trading implications
Because the premium is comparable to the “sweet‑spot” used by peers, the market is likely to view Toro’s offer as fair‑value rather than a catalyst for a material re‑rating. The stock’s price action since the tender announcement has already reflected the premium (up ~9 % on the day of the press release), and the subsequent low‑volatility, modest‑volume close on August 7 suggests limited upside left in the equity. For short‑term traders, the key signal is the completion risk—the offer was fully subscribed, but the tender expires at 5 p.m. ET, so any post‑tender “green‑shoe” or over‑allotment would be the only remaining upside driver. A tight‑range, low‑beta play is appropriate: consider a short‑duration, low‑risk position (e.g., a 1‑2 day put spread or a small‑size short) if the price drifts above the tender price ($4.20) after the offer expires. Longer‑term investors should focus on Toro’s fundamentals (pipeline utilization, fee‑‑run contracts) rather than the tender, as the deal does not materially alter the company’s balance sheet or earnings outlook.