Williams Companies Outperformed AMLP Last Week: What’s Next?
Williams Companies’ weekly performance
Williams Companies (WMB) outperformed the sector ETF, the Alerian MLP ETF (AMLP), and the SPDR S&P 500 ETF (SPY) (SPX-INDEX) in the week ended May 12. WMB rose 0.2% last week. At the same time, AMLP was flat while SPY fell 0.2%. WMB forms 0.12% of SPY.
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Williams Companies’ outperformance relative to AMLP could be due to several positive upsides during the week. These factors include a rating upgrade, Williams Companies’ appeal to the White House to clear the blocked $925 million Constitution Pipeline, and the positive support received for the Atlantic Sunrise project from various communities.
Williams Companies’ YTD returns
WMB has lost 2.6% YTD (year-to-date). In comparison, WMB’s peers TransCanada Corporation (TRP) and Enterprise Products Partners (EPD) have gained 2.8% and 0.2%, respectively. AMLP has lost 2.9% in 2017.
Williams Companies’ weak YTD performance can be attributed to the sharp decline in its stock price following the financial reorganization announcement, which included removal of IDRs from Williams Partners’ (WPZ) capital structure, conversion of the economic GP (general partner) interest in WPZ to noneconomic GP interest, and WPZ’s distribution cut.
These measures are negative for Williams Companies in the short term. However, the company expects to benefit from it in the long term.
In this series, we’ll discover whether Williams Companies (WMB) can gain upward momentum from here. We’ll look into WMB’s technical indicators, including moving averages and implied volatility. We’ll also look into WMB’s valuation and analyst projections.