Another Oils-Energy stock, which has outperformed the sector so far this year, is Williams Companies, Inc. (The) (WMB) . The stock has returned 7.6% year-to-date. For Williams Companies, Inc. (The), the consensus EPS estimate for the current year has increased 1.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy). Breaking things down more, Alliance Resource Partners, L.P. is a member of the Coal industry, which includes 8 individual companies and currently sits at #232 in the Zacks ...

Group 1 - The rising electricity consumption in the US is increasing the importance of natural gas as an energy source [1] - States like New York are committed to their stringent climate policies, posing challenges for companies in the natural gas sector [1] - The Williams Companies, Inc. faces significant challenges due to the conflicting dynamics of rising natural gas demand and strict climate regulations [1]

Core Viewpoint - The pipeline sector is positioned to offer high yields, predictable cash flows, and solid growth, particularly due to increasing natural gas demand from LNG exports and AI data centers. Company Summaries 1. Energy Transfer - Operates one of the largest midstream networks in the U.S. and is entering a growth phase with a capital expenditure budget increase from $3 billion to $5 billion focused on natural gas infrastructure in the Permian Basin [3][4] - Approximately 90% of EBITDA is tied to fee-based contracts, supporting a distribution yield of 7.2% with a target of 3% to 5% annual growth [5] 2. Enterprise Products Partners - Known for reliability, having raised distributions for 26 consecutive years, with 85% of revenue being fee-based and many contracts having take-or-pay terms [6][7] - Currently has $7.6 billion in projects under construction, with $6 billion expected to come online this year, focusing on high-return expansions in the NGL value chain [7] 3. Western Midstream - Offers a high yield of 9.5% with strong revenue visibility due to cost-of-service protections and minimum volume commitments in contracts [9][10] - Maintains conservative financial management with leverage below 3x and is investing in solid return projects like the $450 million Pathfinder produced-water pipeline [10][11] 4. Williams Companies - Yield is around 3.2%, but it has significant growth potential, particularly through its Transco pipeline system, which connects natural gas fields to growing markets [12][13] - Engaged in multiple expansion projects and a $1.6 billion investment in the Socrates project to serve data center demand [14] 5. Genesis Energy - Represents a turnaround story, having sold its soda ash business for $1.4 billion to reduce debt and improve cash flow [15][17] - Focused on growing its offshore pipeline system, with significant growth expected from upcoming deepwater projects and a marine segment on track for record earnings [18][19]

Core Insights - Williams Companies (WMB) has outperformed Enterprise Products Partners (EPD) in the past year, with a stock increase of 45.5% compared to EPD's 14.3% and the industry's 33.4% growth [1][3]. Company Performance - WMB is expanding its midstream operations through well-planned infrastructure projects like the Southeast Energy Connector and the Power Express Pipeline, which are either operational or in advanced stages [4]. - The Socrates project is a key initiative for WMB, designed to supply natural gas power to data centers, with a secured 10-year contract ensuring predictable income [5]. - WMB's projects are fully contracted before completion, reducing financial risk and ensuring stable cash flows [5]. Financial Strength - WMB has received credit upgrades, with S&P raising its rating to BBB+ and Moody's providing a positive outlook, reflecting strong profit margins and a solid business outlook [9][10]. - In contrast, EPD has not received recent upgrades or improved outlooks from credit agencies, indicating that WMB is currently viewed as financially stronger [10]. Valuation Metrics - WMB is trading at a trailing 12-month EV/EBITDA of 17.59x, which is a premium compared to the industry average of 13.95x and EPD's 10.03x [11]. - Despite WMB's positive long-term outlook, uncertainties in the energy business environment may affect investment decisions [12]. Earnings Estimates - EPD's outlook is less favorable, with its projects focused on gathering and processing fuel, which will take longer to generate profits compared to WMB [13]. - EPD has experienced downward revisions in earnings estimates for 2025 and 2026, indicating potential challenges ahead [13].

Core Viewpoint - The Williams Companies, Inc. has seen a 4.1% increase in shares over the past month, but this performance is below that of the S&P 500, raising questions about future trends leading up to the next earnings release [1]. Group 1: Earnings Report and Stock Performance - A month has passed since the last earnings report, during which the stock has underperformed compared to the S&P 500 [1]. - Recent estimates for the company have trended downward over the past month [2]. Group 2: VGM Scores and Investment Strategy - The Williams Companies has an average Growth Score of C and a Momentum Score of B, but a low Value Score of D, placing it in the bottom 40% for this investment strategy [3]. - The overall aggregate VGM Score for the stock is D, indicating a lack of focus on a single investment strategy [3]. Group 3: Outlook and Future Expectations - Estimates for the stock have been broadly trending downward, with the magnitude of revisions being net zero [4]. - The Williams Companies holds a Zacks Rank of 3 (Hold), suggesting an expectation of in-line returns in the coming months [4].

Core Viewpoint - The Williams Companies, Inc. (WMB) is actively working to revive two previously canceled natural gas pipeline projects, the Northeast Supply Enhancement (NESE) and the Constitution Pipeline, due to changing regulatory support and environmental discussions [1][4]. Regulatory Landscape - WMB is collaborating with federal and state regulatory agencies to reinstate the NESE and Constitution Pipeline projects, which were canceled after prolonged permit battles [2][4]. - The company has reached out to the Federal Energy Regulatory Commission to reinstate the necessary certificate for the NESE project, which is essential for interstate pipeline construction and operation [3]. Environmental Considerations - WMB is in discussions with environmental regulators in New Jersey, Pennsylvania, and New York to secure the necessary permits for the pipeline projects, emphasizing that these projects are crucial for addressing natural gas supply issues in the Northeast [4]. - The company argues that the supply constraints lead to higher energy costs for consumers and increased demand for higher-emission fuels [4]. Political Context - The decision to revive these projects aligns with the Trump administration's recent support for natural gas initiatives, including the withdrawal of a stop-work order on Equinor's Empire Wind project [5]. - New York Governor Kathy Hochul has indicated a willingness to cooperate on new energy projects that comply with state laws, although she has not explicitly endorsed new pipelines [5]. Company Rankings and Comparisons - WMB currently holds a Zacks Rank of 3 (Hold), while other energy sector stocks like Flotek Industries (Rank 1), Energy Transfer (Rank 2), and RPC, Inc. (Rank 2) are noted for their stronger performance [6].

Industry Overview - The Zacks Oil & Gas – Production & Pipelines industry is crucial for the U.S. energy security and economic stability, relying on an extensive pipeline network to transport hydrocarbons from major production regions to consumers [1] - The long-term investment outlook for the industry is positive due to steady domestic energy consumption, growth in liquefied natural gas (LNG) exports, and a shift from coal to natural gas by utilities [1] Regulatory and Market Position - The pipeline industry is well-positioned to benefit from regulatory support, modernization efforts, and innovations that enhance efficiency and reduce emissions [2] - U.S. pipeline infrastructure has gained strategic importance amid global energy uncertainty, particularly for supporting allies abroad [2] Company Profiles - **Energy Transfer (ET)**: A diversified midstream company with operations in crude oil, NGLs, refined products, and natural gas pipelines, along with storage and processing facilities. It has a strong presence in the Permian Basin and operates the Dakota Access Pipeline [3] - **The Williams Companies (WMB)**: A leading natural gas infrastructure provider in North America, known for its strategic assets and stable fee-based revenues, connecting major production basins to growing domestic and export markets [4] Earnings Growth Projections - The Zacks Consensus Estimate for WMB's 2025 earnings has remained unchanged, while 2026 earnings have declined by 2.03% over the past 60 days [6] - For Energy Transfer, the Zacks Consensus Estimate for 2025 and 2026 earnings has increased by 2.86% and 4.26%, respectively, in the same timeframe [10] Financial Metrics - WMB's current Return on Equity (ROE) is 15.95%, outperforming ET's ROE of 11.47% and the sector's average of 14.67% [13] - ET's debt to capital ratio is 56.43%, while WMB's is higher at 64.84%, indicating WMB has a greater debt burden [14] Capital Expenditure Plans - Energy Transfer expects growth capital expenditures of nearly $5 billion and maintenance capital expenditures of approximately $1.1 billion for 2025 [15] - WMB's maintenance capital expenditure for 2025 is estimated to be between $800 million and $900 million [16] Valuation and Price Performance - Energy Transfer is trading at a Price/Earnings (P/E) ratio of 12.2X, compared to WMB's 26.88X, indicating ET is currently undervalued [17] - In the last month, Energy Transfer's units gained 6.9%, while WMB's units increased by 2.5% [18] Conclusion - Energy Transfer has a more diversified midstream portfolio and is expected to benefit from higher fee-based earnings and systematic investments [19] - The Williams Companies is positioned to benefit from rising natural gas demand driven by AI and data centers [19]

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 op ...

Core Insights - Blackstone's total market value of holdings reached $24.1 billion for Q1 2025, up from $22.0 billion in the previous quarter, representing a 9% increase [1][2] - The investment portfolio included 47 new stocks, 36 stocks were increased, 25 stocks were reduced, and 39 stocks were completely sold out [1][2] - The top ten holdings accounted for 68.8% of the total market value [1][2] Holdings Overview - The largest holding is Cheniere Energy Partners (CQP.US) with approximately 102 million shares valued at about $6.759 billion, making up 28.07% of the portfolio, unchanged from the previous quarter [2][3] - Corebridge Financial Inc. (CRBG.US) is the second-largest holding with around 61.96 million shares valued at approximately $1.956 billion, also unchanged [2][3] - Williams (WMB.US) ranks third with about 20.08 million shares valued at approximately $1.200 billion, reflecting a 5.94% increase in holdings [3][4] Sector Focus - The portfolio shows a strong inclination towards energy stocks, with significant positions in companies like Targa Resources (TRGP.US), Energy Transfer Equity LP (ET.US), and MPLX LP (MPLX.US) [3][4] - The top five purchases included SPDR S&P 500 ETF put options, CoreWeave (CRWV.US), Kinder Morgan (KMI.US), Hess Midstream (HESM.US), and Enbridge (ENB.US) [4][5] - The top five sales included Expand Energy, First Industrial Realty (FR.US), Western Midstream (WES.US), Energy Transfer (ET.US), and NextEra Energy (NEE.US) [5][6]

Core Insights - The Williams Companies, Inc. (WMB) reported first-quarter 2025 adjusted earnings per share of 60 cents, exceeding the Zacks Consensus Estimate of 55 cents and increasing from 59 cents in the prior year [1] - Revenues for the quarter were $3 billion, missing the Zacks Consensus Estimate by $93 million, but up from $2.8 billion year-over-year, driven by increased service revenues and product sales [2] - Adjusted EBITDA for the quarter totaled $1.9 billion, reflecting a 2.8% year-over-year increase, supported by growth in natural gas demand and contributions from acquisitions and expansion projects [4] Segment Performance - Transmission & Gulf of Mexico segment reported adjusted EBITDA of $862 million, up 2.7% year-over-year, but below the Zacks Consensus Estimate of $898 million due to higher costs [5] - West segment's adjusted EBITDA was $354 million, a 7.9% increase from $328 million in the prior year, but below the consensus estimate of $366 million due to lower gathering volumes [6] - Northeast G&P segment achieved adjusted EBITDA of $514 million, up about 2% from $504 million, beating the Zacks Consensus Estimate by 3.8% due to higher rates and volumes [7] - Gas & NGL Marketing Services reported adjusted EBITDA of $155 million, down from $189 million year-over-year, but above the consensus mark of $119 million [8] Financial Overview - Total costs and expenses for the quarter were $1.9 billion, an increase of nearly 11.1% from the previous year [10] - Total capital expenditure (Capex) was $1 billion, with cash and cash equivalents of $100 million and long-term debt of $24.1 billion, resulting in a debt-to-capitalization ratio of 61.9% [10] Future Guidance - The company raised its 2025 adjusted EBITDA forecast to $7.7 billion, indicating a $50 million increase to the guidance midpoint [11] - Capital expenditure plans for 2025 include growth Capex ranging from $2.575 billion to $2.875 billion and maintenance Capex between $650 million and $750 million [11] - The company improved its leverage ratio for 2025 to a midpoint of 3.65x and raised its dividend by 5.3% to $2 per share for 2025 [12]