|Bid||22.10 x 900|
|Ask||22.20 x 3000|
|Day's Range||22.09 - 22.50|
|52 Week Range||21.90 - 29.55|
|Beta (5Y Monthly)||1.55|
|PE Ratio (TTM)||177.52|
|Earnings Date||Feb 10, 2020 - Feb 16, 2020|
|Forward Dividend & Yield||1.52 (6.71%)|
|Ex-Dividend Date||Dec 11, 2019|
|1y Target Est||27.46|
Williams Companies, Inc. (The) (WMB) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
Growth and dividends are the sure-fire ways to find profit in your investments. The hard part is finding stocks that combine the two. It’s not that they are necessarily incompatible – rather, it is just that the highest growth stocks tend to achieve their appreciation by plowing profits directly back into the company. Dividend payments dilute this, by paying some or all of the profits back to investors. Still, there are investment sectors where growth and dividends walk hand-in-hand.The natural place to look is in sectors with high cash flows and essential products. Energy comes to mind. Without energy, our modern digital economy will grind to a quick halt. Energy companies – whether they extract oil from the ground or generate electricity for commercial use – earn a profit buy fueling modern life. Investors can piggyback on that, drawing profits from the sector’s cash flow.Investment bank JPMorgan released a special report on the North American energy industry, emphasizing just these attributes – the rising production, the high cash flow, and the fundamental strength of the industry to survive a prolonged period of low prices. On US natural gas production, JPM “sees ~3% US onshore growth in 2020, driven largely by [Permian basin] production,” while noting that, for crude oil, “[Texas’] Midland remains the most economic shale play in the US as breakevens have drifted lower over the last year, largely due to increased oil pipeline capacity.”JPM’s final point, on increased pipeline capacity, brings us to the midstream sector, a vital component of the energy industry. Midstream companies move the oil and gas that extraction companies pull out of the ground; without the midstream segment, fuel would not reach the customers. JPMorgan sees room in midstream for investment activity, saying, “We believe yield-hungry investors will continue to gravitate towards quality midstreamers with strong business models and corporate governance.”In this article, we’ll look at three JPMorgan dividend stock recommendations from the energy sector. As you can see from the TipRanks Stock Comparison tool, all three offer excellent dividend yields, affordable cost of entry, and a genuine upside potential. Let's take a closer look.Plains All American Pipeline (PAA)Start with Plains All American, a pipeline company based in Houston, Texas. The company operates across much of North America, with oil pipelines across the US, natural gas storage facilities in Michigan and Louisiana, and liquid petroleum gas facilities in Canada. The company owns and operates over 17,000 miles of crude oil and gas pipelines, as well as rail, trucking, and river transport assets, along with 109 million barrels of storage capacity.In Q3 last year, the most recent quarterly report on record, PAA showed an adjusted EPS of 52 cents, beating the expectation by an impressive 33%. That number was also up 20% year-over-year. Revenues, at $7.89 billion, were in line with expectations, but down 10% year-over-year. The company’s Transportation, Facilities, and Supply and Logistics segments all showed yoy increases. Forward guidance predicts full year 2019 earnings at $2.35 – investors will have to wait until February 4 for the Q4 and full year numbers to find out.PAA does have an immediate treat for shareholders, however. The company pays out a dividend of 36 cents quarterly, or $1.44 annually per share. This translates to an impressive yield of 7.75%. Considering that the average dividend yield among S&P 500 listed companies is only 2%, this gives PAA shares a strong return on cash invested. The payout ratio, a comparison of the dividend with the earnings, stands at 69%, indicating that the dividend is easily sustainable at current rates.JPMorgan analyst Jeremy Tonet reviewed this stock and he's clearly bullish. In his comments, the 4-star analyst said, “We see PAA as well-positioned for pipe competition with lower leverage and S&L expectations, as well as JV strategic partner alignment. As such, we favor PAA's Permian torque & solid project backlog.”Tonet reiterated his Buy rating on PAA alongside a $25 price target, which indicates confidence in a 34% upside potential. (To watch Tonet’s track record, click here)PAA’s Strong Buy consensus rating is based on 14 reviews – including 11 Buys against just 3 Holds. The stock sells for an affordable price of $18.59, and the $22.79 average price target suggests an upside of 22%. (See Plains All American’s stock analysis at TipRanks)Targa Resources Corporation (TRGP)Targa is a midstream company, like PAA above. These are the companies that provide the infrastructure needed to get oil from the wellheads to markets. Targa operates mainly in the states Texas-New Mexico-Oklahoma-Louisiana, with over 28,000 miles of natural gas pipelines, moving over 3.9 trillion cubic feet of gas and 415,000 barrels of natural gas liquids.Late last year, Targa sold off its West Texas Permian oil gathering assets, in a move that allows the company to focus on pipeline operations. The move was intended to compensate for high overhead and somewhat disappointing Q3 earnings. TRGP missed badly on revenues, with the $1.9 billion reported coming in well below the $2.17 billion forecast. Worse, from an investor perspective, the company gave forward guidance on capex for 2020 of $1.3 billion, higher than expected.With all of that, however, TRGP maintained its hefty dividend. The yield, at over 9%, is 4.5x the average on the S&P, and the annual payment is $3.64. This comes out to 91 cents paid out per share quarterly. Targa has held that dividend steady since 2H15, providing investors with a reliable, high-yield income stream.JPMorgan's Jeremy Tonet, quoted above, also examined Targa in his energy industry report. Seeing the company as a Buy proposition, Tonet wrote, “Targa possesses top tier leverage to liquids rich production and downstream NGL logistics, with attractive exposure to the Permian. While TRGP's commodity price exposure represents a double-edged sword, we believe executing on the current portfolio of attractive NGL logistics projects will deliver the 'pig through the python' and drive de-leveraging and positive re-rating.”Tonet gave TRGP a $49 price target, implying an upside of 22%. (To watch Tonet’s track record, click here)Targa has received 10 recent analyst reviews, and the split reflects both the company’s strong position and worries over the Q3 revenues. The stock’s 4 Buys, 5 Holds, and 1 Sell rating combine to give a Moderate Buy consensus view. Shares are selling for $40.22, and the $42.44 average price target indicates a 5.5% upside potential. (See Targa’s stock analysis at TipRanks)Williams Companies (WMB)Tulsa-based Williams is a utility provider, dealing mainly in natural gas processing and transport. The company also owns assets in the petroleum industry and in electricity generation. Williams handles – through provision or transport – as much as 30% of the natural gas used daily in the US. Customers range from residential to commercial to power generation companies.WMB was showing mixed results in 2H19. For the third quarter, the company’s revenues missed the forecast by 4.3%, coming in at $2 billion. Worse, that performance was also 13% below the year-ago number. Earnings, however, rose, and the 26 cent EPS reported was 8.3% better than expected. And even better, for income-minded dividend investors, distributable cash flows rose 8% to $822 million.Williams uses its cash flow to fund a 6.6% dividend. That yield is impressive – it’s 3.3x the S&P average – even though the absolute number is low. The quarterly payment of 38 cents annualizes to $1.52 per share. The company has been slowly – but steadily – increasing the dividend since 2017.Once again, we have a review from Jeremy Tonet for this stock. Tonet says of WMB, “Williams owns one of the largest integrated natgas infrastructure positions in North America... We believe that WMB as a single security, IG-rated energy infrastructure c-corp with a strong yield will attract significant generalist investor interest.”Tonet’s Buy rating is backed by a $28 price target, suggesting a strong 22% upside potential. (To watch Tonet’s track record, click here)Overall, WMB shares have a Moderate Buy from the analyst consensus, based on 5 Buys and 3 Holds recently assigned. The stock sells for $23.01, and the $30.71 average price target indicates a premium potential of 33% from that selling price. (See Williams’ stock analysis at TipRanks)
Today we are going to look at The Williams Companies, Inc. (NYSE:WMB) to see whether it might be an attractive...
Investing.com - Here is a summary from the most important regulatory news releases from the London Stock Exchange ahead of the UK market open on Thursday 16 January. Please refresh for updates for UK market news from the LSE’s RNS on individual UK shares from FTSE 100, FTSE 250 and FTSE All-Share.
Supermajor ExxonMobil (XOM) issued an update on its upcoming fourth-quarter earnings. Meanwhile, Core Labs (CLB) slashed its dividend by 55% and lowered fourth-quarter guidance.
With this project, Williams (WMB) will aid almost 280,000 households with daily residential home heating, warm water and cooking needs, thus prompting customers to shift from heating oil to natural gas.
Williams (NYSE: WMB) announced today that it has filed a comprehensive Stipulation and Agreement ("Settlement") with the Federal Energy Regulatory Commission ("FERC"), which would settle all aspects of the Transcontinental Gas Pipe Line Company, LLC ("Transco") rate case currently pending before the FERC. The company anticipates FERC approval of the Settlement during the second quarter of 2020. The Settlement provides rate certainty for customers while allowing Transco to recover its costs, safely and reliably operate its infrastructure, and expand to meet the needs of its customers.
Williams (NYSE: WMB) announced today that it has successfully placed into full service its Gateway Expansion Project – approximately 11 months ahead of schedule – to meet growing natural gas demand for New Jersey tri-state area consumers in time for the 2019-2020 winter heating season.
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The times, said Hart Energy's Paul Hart in opening the conference with a movie quote, are bad. But, he said, the Marcellus and Utica — one of the largest gas fields in the world — has all of the ingredients to take advantage when conditions get better.
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The energy sector was the only one of the S&P 500's 11 key sectors that gained ground Wednesday, as a jump in crude oil prices helped boost energy company stocks. The SPDR Energy Select Sector ETF hiked up 1.0%, as 25 of 28 components rose. Among the ETF's most active components, shares of Schlumberger Ltd. ran up 3.9%, Halliburton Co. hiked up 2.4%, Williams Companies gained 1.7%, Exxon Mobil Corp. edged up 0.3% and Occidental Petroleum Corp. tacked on 1.0%. Chesapeake Energy's stock isn't in the ETF, but it bounced 1.6% on 74.6 million shares traded, and was the most-active stock on major U.S. exchanges. The rally comes after the stock had plunged 20% over the past two sessions to close Tuesday at a 25-year low of 55.57 cents. Continuous crude oil futures surged 3.0% after data showing domestic crude supplies increased by less than expected.
Williams (WMB) is scheduled to host its 2019 Analyst Day event on Dec. 5, 2019. During the event, Williams' management will give in-depth presentations covering the company's natural gas infrastructure strategy that helps meet growing clean energy demands. Presentation slides along with a link to the live video webcast will be accessible at www.williams.com the morning of Dec. 5.
Moody's Investors Service (Moody's) has today placed the A3 issuer and senior unsecured ratings of The Brooklyn Union Gas Company (KEDNY) and KeySpan Gas East Corporation (KEDLI), on review for downgrade. The two regulated utilities, local gas distribution companies serving customers in "downstate" New York, are ultimately owned by National Grid plc (National Grid, Baa1 stable). A full list of affected ratings is provided towards the end of this press release.
The governor, in a statement, cited National Grid's imposition of a moratorium on new customers, failure to address supply issues and the neglect of the needs of customers. In May, National Grid announced a moratorium on new gas customers in New York City and Long Island after New York regulators rejected a pipeline that Williams Cos Inc wants to build that will provide gas to National Grid's downstate customers.
Investing.com – Gold is edging further away from the $1,500 mark, raising questions about the near-term bull case for the yellow metal, which is now at three-month lows.
Investing.com - Investors will be focusing on appearances by U.S. President Donald Trump and Federal Reserve Chairman Jerome Powell this week amid fresh doubts over the progress of trade talks between the U.S. and China.
The energy sector consists of stocks related to the production and supply of energy around the world. Among energy sector companies are upstream firms—those involved in the exploration and production of oil or gas reserves—like EOG Resources (EOG). Also in the sector are downstream companies that refine and process oil and gas products for delivery to consumers, including HollyFrontier (HFC).
Williams’ board of directors has approved a regular dividend of $0.38 per share, or $1.52 annualized, on the company’s common stock, payable on Dec. 30, 2019, to holders of record at the close of business on Dec.