#5 - Williams Companies (NYSE:WMB)
The Williams Companies Inc. (NYSE: WMB) operates a network of pipelines and infrastructure solutions that help move natural gas and liquefied natural gas (LNG). Natural gas and LNG will play a key role as a bridge fuel in the world’s transition to renewable energy. The company’s network consists of more than 33,000 miles of pipelines that is backed by long-term contracts and regulated rate structures.
Williams has been aggressively growing its network in 2024 with $1.6 billion in expansion projects, and another approximately $1.8 billion in spending is forecast for 2025. A key metric for midstream companies is their adjusted funds from operations (FFO). In 2024, Williams expects to produce approximately $4.13 per share of FFO. That should easily sustain the company’s dividend, which has a yield of 4.29%.
Trading around $45 per share, WMB stock is near a 52-week high. However, the stock trades at just 11x its adjusted FFO.
About Williams Companies
The Williams Companies, Inc, together with its subsidiaries, operates as an energy infrastructure company primarily in the United States. It operates through Transmission & Gulf of Mexico, Northeast G&P, West, and Gas & NGL Marketing Services segments. The Transmission & Gulf of Mexico segment comprises natural gas pipelines; Transco, Northwest pipeline, MountainWest, and related natural gas storage facilities; and natural gas gathering and processing, and crude oil production handling and transportation assets in the Gulf Coast region.
Read More - Current Price
- $59.65
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 9 Buy Ratings, 6 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $51.54 (13.6% Downside)
