Latest news with #WMB
Yahoo
a day ago
- Business
- Yahoo
Wolfe Research Upgrades The Williams Companies (WMB) Stock
The Williams Companies, Inc. (NYSE:WMB) is one of the Top Energy and Utility Stocks Wall Street Analysts Are Talking About. On June 13, Wolfe Research upgraded the company's stock from 'Underperform' to 'Peer perform.' The change in the rating is mainly backed by rising evidence of a growth inflection, which aids the premium valuation. The upgrade demonstrates The Williams Companies, Inc. (NYSE:WMB)'s thematically appealing position, together with financial flexibility to finance a growing opportunity set, added Wolfe Research. A bird's-eye view of an oil & gas midstream platform in the Gulf of Mexico on a clear day. As per the firm's analysis, the company remains well-positioned to reap the opportunities available in the broader energy sector. The Williams Companies, Inc. (NYSE:WMB)'s strong pipeline network places it as a critical player in the movement of natural gas across North America. Because of a recent investment in Cogentrix Energy and the outperformance of its base business, The Williams Companies, Inc. (NYSE:WMB) raised its 2025 adjusted EBITDA guidance midpoint by $50 million to $7.7 billion. Overall, the company's track record of generating predictable, growing earnings in numerous economic cycles strengthens the value of the company as a stable, long-term investment possessing a strong dividend. The Williams Companies, Inc. (NYSE:WMB) projects its leverage ratio midpoint for 2025 to be 3.65x and has raised the dividend by 5.3% on an annualized basis to $2.00 in 2025 from $1.90 in 2024. Carillon Tower Advisers, an investment management company, released its Q4 2024 investor letter. Here is what the fund said: 'The Williams Companies, Inc. (NYSE:WMB) performed well because investors expect it to benefit from growing demand for natural gas over the next several years or even decades. Liquid natural gas exports, onshoring, and data center buildouts could place upward pressure on the company's volumes across its midstream portfolio. We believe that the company's share price continues to discount this future benefit due to a very challenging overall energy backdrop.' While we acknowledge the potential of WMB to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than WMB and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
2 days ago
- Business
- Globe and Mail
Is Enbridge Ready to Capitalize on Mounting Clean Energy Demand?
Enbridge Inc. ENB, a leading midstream energy player in North America, has made significant progress in expanding its asset base through disciplined and low-risk investments. In the March quarter of 2025, ENB secured accretive and low-risk projects worth C$3 billion. Thus, while providing affordable energy, the midstream energy giant has ensured stable cash flows. Many of ENB's investments are of a brownfield or utility-like nature. Therefore, these investments mainly involve expanding existing infrastructure or benefiting from regulated frameworks. A key focus for ENB in these investments is to capitalize on the increasing demand for natural gas by utilizing its extensive transportation and storage assets. The growth of data centers, rising exports of liquefied natural gas (LNG) and rapid shifts from coal to gas for power generation are driving up demand for clean energy. Investors should know that apart from aligning with energy demand growth for the long term, Enbridge has also structured these investments to generate stable and predictable cash flows through take-or-pay contracts with investment-grade counterparties. This strategy shows that Enbridge is focused on growing in a safe and steady way without taking big risks. At the same time, ENB is prudent with its finances, ensuring it remains financially strong and stable. Will EPD and WMB Follow in ENB's Footsteps? Enterprise Products Partners LP EPD and The Williams Companies Inc WMB are another two leading midstream energy players and are capitalizing on increasing clean energy demand. Enterprise Products is currently constructing big midstream projects worth $7.6 billion, and the biggest of these, roughly $6 billion worth, are expected to start working in 2025. Notably, a significant portion of this investments is focused on natural gas and associated infrastructure with EPD lining up many of those projects with customers. Coming to WMB's story, Socrates is its standout project, designed to deliver natural gas power to meet the growing demand from data centers. Williams Companies has already locked in a 10-year contract for it, thereby securing predictable income for years ahead. What makes these projects of WMB special is that they're fully contracted even before completion, which lowers financial risk and ensures stable cash flows. ENB's Price Performance, Valuation & Estimates Shares of Enbridge have gained 34.3% over the past year, surpassing the 34.1% rally of the composite stocks belonging to the industry. Image Source: Zacks Investment Research From a valuation standpoint, ENB trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 14.95X. This is above the broader industry average of 13.95X. The Zacks Consensus Estimate for ENB's 2025 earnings hasn't been revised over the past seven days. ENB currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Research Chief Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months. Free: See Our Top Stock And 4 Runners Up Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Williams Companies, Inc. (The) (WMB): Free Stock Analysis Report Enbridge Inc (ENB): Free Stock Analysis Report
Globe and Mail
20-06-2025
- Business
- Globe and Mail
Enbridge's Dividend Payment: A 30-Year Promise That Keeps Paying
Enbridge Inc. ENB, a leading midstream energy player in North America, has a strong track record of returning capital to shareholders through dividend payments. For 30 consecutive years, the midstream energy giant has increased its dividends to reward shareholders, earning a prestigious position among the few dividend aristocrats in the energy space. Unlike most energy companies, which are susceptible to oil and gas price volatility, Enbridge is consistently rewarding shareholders. This reflects a solid business model with predictable cash flows. This steady income allows ENB, which operates an extensive crude oil and liquids transportation network spanning 18,085 miles, to return a portion of its earnings to shareholders through regular dividend payments, even during volatile market conditions. Underscoring the strength of ENB's midstream operations, its pipelines transport 20% of the total natural gas consumed in the United States. Looking ahead, Enbridge believes it could achieve approximately 5% annual business growth through the end of 2030. This solidifies ENB's strong business outlook, thereby securing incremental cash flows. Thus, long-term shareholders can expect steady and handsome dividends from the midstream major. Are KMI & WMB Also Rewarding Investors Handsomely? Kinder Morgan KMI and Williams WMB are also leading midstream energy players, thereby are less vulnerable to oil and gas price volatility. Despite their stable business models, both KMI and WMB currently reward investors with lower dividend yields than the industry's composite stocks. Kinder Morgan's current dividend yield is 4.24%, lower than the industry's 5.24% yield. Williams' current dividend yield is 3.38%. ENB's Price Performance, Valuation & Estimates Shares of Enbridge have gained 38% over the past year, outpacing the 35.1% rally of the composite stocks belonging to the industry. From a valuation standpoint, ENB trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 15.04X. This is above the broader industry average of 13.89X. The Zacks Consensus Estimate for ENB's 2025 earnings hasn't been revised over the past seven days. ENB currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks Names #1 Semiconductor Stock It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028. See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Williams Companies, Inc. (The) (WMB): Free Stock Analysis Report Enbridge Inc (ENB): Free Stock Analysis Report Kinder Morgan, Inc. (KMI): Free Stock Analysis Report
Yahoo
30-05-2025
- Business
- Yahoo
Data Center & Natural Gas Link Grows: Will WMB, ENB, KMI Stocks Gain?
With the demand for data processing increasing due to the rapid expansion of artificial intelligence (AI) applications, data centers are facing unprecedented energy challenges. Natural gas is emerging as a pivotal solution in the power strategies of these facilities, offering the reliability, scalability and economic viability needed to support continuous and intensive data processing operations. Integrating natural gas with renewable energy sources allows data centers to balance sustainability goals with operational efficiency, positioning natural gas as a cornerstone of the future energy landscape for this sector. Analysts and investors have noted that leading natural gas and oil pipeline companies are already addressing the rising electricity demand driven by AI-powered data centers on their recent earnings calls. Major energy companies like The Williams Companies Inc. WMB, Enbridge Inc. ENB and Kinder Morgan Inc. KMI are well-positioned to benefit from this AI-driven trend. AI data centers have become significant electricity consumers due to several key factors. Firstly, deep learning and other AI workloads require immense computational power. High-performance processors, such as graphics processing units and tensor processing units, are essential to handle the billions of calculations needed for training large neural networks. This computational intensity drives up electricity usage substantially. Secondly, data storage systems, particularly those designed for high-speed access and redundancy, represent another major source of energy consumption. These storage systems are critical for rapidly retrieving and processing large datasets, but they also require substantial power to operate efficiently. Finally, the heat generated by high-performance processors necessitates robust cooling systems to maintain optimal operating temperatures and avoid hardware damage. These cooling systems, while essential, add another layer of electricity consumption, further contributing to the overall energy demands of AI data centers. As the adoption of AI data centers accelerates, the electricity demand is expected to grow substantially, putting considerable pressure on existing transmission grids. To accommodate this rising demand, utilities may be compelled to invest in new natural gas power plants, which would increase the need for midstream infrastructure, such as expanded pipeline networks, to ensure a reliable supply of natural gas to these facilities. This dynamic could create new opportunities for investment in both power generation assets and the associated midstream infrastructure needed to support this growing energy consumption. Three midstream energy majors that investors should keep an eye on are The Williams Companies, Enbridge and Kinder Morgan. All the stocks currently carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. WMB Expands Gas Network to Meet Data Center-Power Demand The Williams Companies is focused on the expansion of its natural gas infrastructure to meet heightened energy demand from data centers. The Transco Power Express Pipeline is among the key projects that will be designed to transport 950 million cubic feet of natural gas daily to Virginia, a state known for increasing electricity demand for rapidly growing data centers. Moreover, WMB is planning similar expansions in the Northwest and Mountain West, especially in places like Idaho and Salt Lake City, where demand for power from new data centers is increasing. Data Center Boom Powers KMI's Growing Project Backlog Kinder Morgan is experiencing a notable rise in natural gas demand, fueled by the expansion of data centers and AI applications. In the first quarter of 2025, KMI included $900 million in its project backlog, raising its total backlog to $8.8 billion. Of the total $900 million, KMI mentioned that more than 70% of this additional backlog is associated with meeting power demand, a proportion of which should be coming from the data centers. ENB's Strong Investment Opportunities to Power Data Center Enbridge expects strong growth opportunities from the rising demand for power from data centers. On the recent earnings call, ENB mentioned the identification of more than 35 individual projects or initiatives that will create demand for roughly 11 billion cubic feet per day of incremental natural gas. The company expects several billion dollars in capital investment opportunities for the projects through 2032. ENB, whose pipelines transport 20% of the total natural gas consumed in the United States, is expecting attractive returns from the initiatives. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report Enbridge Inc (ENB) : Free Stock Analysis Report Kinder Morgan, Inc. (KMI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
30-05-2025
- Business
- Yahoo
RBC Keeps Outperform Rating on Williams Companies (WMB) Stock
On Tuesday, May 27, RBC Capital Markets maintained an 'Outperform rating' on The Williams Companies, Inc. (NYSE:WMB) with a price target of $63. This decision came after insights from the EIC Conference. RBC analysts are more confident in the company as it is expected to announce new projects that lead to improved financial estimates. Aerial view of a power plant near a lake lit up at night, showing off the company's expansive electricity generation capabilities. The Williams Companies, Inc. (NYSE:WMB) expects to see steady progress, even as Chad Zamarin becomes the new CEO. One key project is the development of Socrates, which is a fully integrated infrastructure project that will serve as the power solution for a connected data center. The Williams Companies, Inc. (NYSE:WMB) has signed a 10-year contract for Socrates, which includes a provision for commercial reassessment at the end of the term. The company believes that if the equipment from Socrates is used as backup power after the 10-year contract, the price will be set based on the cost of replacement. According to The Williams Companies, Inc. (NYSE:WMB), this will bring a good deal. The Socrates project is also seen as a strong venture, boasting a five times build multiple under the contract terms. RBC's reiterated positive outlook reflects the belief that these new projects and strategic developments will help The Williams Companies, Inc. (NYSE:WMB) grow and improve its financial performance. The Williams Companies, Inc. (NYSE:WMB) is an American energy company that specializes in natural gas processing and transportation. The company also has petroleum and electricity generation assets and invests in new energy technologies. While we acknowledge the potential of WMB as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than WMB and that has a 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: 11 Stocks That Will Bounce Back According To Analysts and 11 Best Stocks Under $15 to Buy According to Hedge Funds. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
