Williams (WMB) Expects Completion of Two Gas Pipe Projects in Q4
The Williams Companies, Inc.’s (WMB) CEO Alan Armstrong told Reuters (at the Reuters Global Energy Transition conference) that the company is on schedule to complete two natural gas pipeline projects in New Jersey and Louisiana by the end of 2024.
According to Armstrong, the first phase of the 0.83 billion cubic feet per day Regional Energy Access expansion in New Jersey, Pennsylvania and Maryland is expected to supply nearly half of the project's gas in the fourth quarter of 2023. He added that the second phase was on schedule and is likely to go into service late 2024.The total cost of Regional Energy Access is projected at approximately $1 billion.
In the words of the CEO, WMB is also on schedule to complete the Louisiana Energy Gateway project in Louisiana and Texas in the fourth quarter of 2024. As a result of this project, producers in the Haynesville shale in Texas, Louisiana and Arkansas will have better access to the increasing number of liquid natural gas export plants on the American Gulf Coast.
Additionally, Armstrong claimed that several WMB customers wish to enter the Europe and Asia markets, wherein natural gas is being sold for around $8 per million British thermal units compared with about $2 at the U.S. Henry Hub benchmark.
At the same conference, Armstrong denounced the sluggish rate at which the natural gas infrastructure is being developed in the United States and termed it a “recipe for disaster.”
Zacks Rank & Key Picks
Currently, Williams carries a Zack Rank #3 (Hold).
Some better-ranked stocks for investors interested in the energy sector are Sunoco LP SUN, Eni SpAE and RGC Resources Inc. RGCO. While Sunoco sports a Zacks Rank #1 (Strong Buy), both Eni SpA and RGC Resources carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sunoco, a distributor of motor fuel to approximately 10,000 convenience stores, has a stable business model with sustainable and predictable cash flows. For this year, SUN has witnessed an upward earnings estimate revision in the past 30 days.
Eni SpA is a leading integrated energy major, which operates primarily through three business segments — Exploration & Production (E&P), Gas & Power, and Refining & Marketing and Chemicals. E has witnessed an upward earnings estimate revision for 2023 and 2024, in the past 30 days.
RGC Resources is a holding company that offers energy and associated products and services through its operational subsidiaries — Roanoke Gas Company and RGC Midstream, LLC. RGCO has thousands of customers through its natural gas distribution companies that serve the Roanoke Valley and Bluefield, Virginia and West Virginia areas.
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Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report
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