WMB
Williams Companies Inc.
Utilities, Energy
10/31/2014
Presented
| Date | 10/27/2014 |
| Price | $53.42 |
| Market Cap | $39.90B |
| Ent Value | $59.41B |
| P/E Ratio | 18.58x |
| Book Value | $12.22 |
| Div Yield | 4.7% |
| Shares O/S | 747.31M |
| Ave Daily Vol | 6,500,000 |
| Short Int | 2.18% |
Current
| Price | $50.90 |
| Market Cap | $62.04B |
| The Williams Companies, Inc. operates as an energy infrastructure company. The company’s Williams Partners segment owns and operates natural gas pipeline system extending from Texas, Louisiana, Mississippi, and the offshore Gulf of Mexico through Alabama, Georgia, South Carolina, North Carolina, Virginia, Maryland, Delaware, Pennsylvania, and New Jersey to the New York City metropolitan area. This segment also owns and operates a natural gas pipeline system extending from the San Juan basin in northwestern New Mexico and southwestern Colorado through Colorado, Utah, Wyoming, Idaho, Oregon, and Washington to a point on the Canadian border near Sumas, Washington; gulfstream natural gas pipeline system extending from the Mobile Bay area in Alabama to markets in Florida; and constitution pipeline that connects its gathering system in Susquehanna County, Pennsylvania to the Iroquois Gas Transmission and Tennessee Gas Pipeline systems. In addition, this segment gathers, treats, and processes natural gas; produces, fractionates, stores, markets, and transports natural gas liquids (NGL); and offers deepwater production handling and crude oil transportation services, as well as transports and stores natural gas to local natural gas distribution companies, municipal utilities, direct industrial users, electric power generators, and natural gas marketers and producers. Its Williams NGL & Petchem Services segment extracts, fractionates, treats, stores, and sells propane, propylene, normal butane, isobutane/butylene, and condensate to users in energy and petrochemical industries. The company’s Access Midstream Partners segment offers gathering, treating, and compression services to other producers. As of August 26, 2014, it owned interests in or operates 15,000 miles of natural gas pipelines; 1,800 miles of NGL transportation pipelines; and approximately 10,000 miles of oil and gas gathering pipelines. The company was founded in 1908 and is headquartered in Tulsa, Oklahoma. |
Publicly traded companies mentioned herein: Williams Companies Inc (WMB), Williams Partners LP (WPZ), Access Midstream Partners (ACMP)
Highlights
Following a series of delays and cost overruns, Williams Companies’ (WMB) Geismar remains off line. The presenter said it is difficult to know how much longer it will take to restart the plant, but investors already know this and he believes it is priced into the stock at current levels (~$53). In his opinion, shareholders of WMB are likely to benefit if the low interest rate, low growth environment persists. To the extent the company can deliver on its backlog, investors can expect a 15% dividend CAGR over the next two-to-three years and “it is highly unlikely shares will be trading at a 5% yield in the out years.”
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