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Williams' Atlantic Sunrise Pipeline Seeks Final Nod From FERC

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Morgan Stanley (MS) is seeing favorable earnings estimate revision activity and has a positive Zacks Earnings ESP heading into earnings season.

Williams Companies, Inc. WMB recently reported the completion of construction of its major Atlantic Sunrise project. The production and pipeline operator has requested for the final approval of the project by Federal Energy Regulatory Commission (FERC), post which the pipeline will come into service.

Importantly, the Atlantic Sunrise natural gas pipeline, worth $3 billion, is an expansion of the company’s Transco pipeline, which is the largest-volume natural gas transmission system in the United States. Atlantic Sunrise will have a transportation capacity of around 1.7 billion cubic feet of gas per day (Bcf/d). It will transport Marcellus shale gas from Pennsylvania to the rest of the country. The project design includes 200 miles of new greenfield pipe, two compressor facilities in Pennsylvania along with other compressor station modifications in five states.

Notably, Atlantic Sunrise had received a Certificate of Public Convenience and Necessity from the FERC in February 2017 amid opposition from green campaigners, as the opponents of the pipeline could not gather satisfactory facts. The court ruled that the implementation of the measures proposed by the FERC and the company will reduce environmental hazards to significant levels and greenlighted it to proceed with the construction.

The company expects the pipeline to add value to its existing energy infrastructure, which will provide it with a steady flow of revenues in the future. This will also help citizens by providing them access to an affordable and clean energy source, as well as contribute to the economic growth of the country.

Importantly, in March 2018, Williams placed into service Phase 2 of the Garden State Expansion Project, which is another notable project of the Transco pipeline. The second phase of the Garden State Expansion Project has a transportation capacity of 180,000 dekatherms of gas per day to Burlington and Mercer counties, NJ.

In addition, Williams had bought online five other Transco expansion systems — namely Gulf Trace, Hillabee Phase 1, Virginia Southside II, Dalton, New York Bay — over a year. Meanwhile, the company’s other major Transco expansion projects, including North East Supply Enhancement and Gateway, are expected to become operational by next year.

Zacks Rank and Key Picks

Williams currently carries a Zacks Rank #3 (Hold).  

Williams Companies, Inc. (The) Price

 

Williams Companies, Inc. (The) Price | Williams Companies, Inc. (The) Quote

Some better-ranked players in the same sector are Petróleo Brasileiro S.A. PBR, Helix Energy Solutions Group, Inc. HLX and TC Pipelines, LP TCP, each flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Petrobras is the largest integrated energy firm in Brazil and one of the major players in Latin America. It pulled off an average positive earnings surprise of 10.4% in the last four quarters.

Helix Energy offers specialty services to the offshore energy industry. The company delivered an average positive earnings surprise of 66.7% in the trailing four quarters.

TC Pipelines purchases, owns and actively participates in the management of U.S.-based natural gas pipelines and related assets. The company delivered an average positive earnings surprise of 3.7% in the last four quarters.

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TC PipeLines, LP (TCP) : Free Stock Analysis Report
 
Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report
 
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