Williams Companies Inc

Companies in the midstream sector that are included in the XLE portfolio include Kinder Morgan, Oneok, the Williams Company, and Spectra Energy.

The Energy Select Sector SPDR ETF (XLE) fell 0.66% in the week ended September 11. XLE tracks a diverse group of 45 of the largest American energy stocks in the S&P 500 Index (SPX).

Enterprise Products Partners (EPD) is the largest company by market capitalization and enterprise value, or EV, among its closest peers. By market cap, Williams Companies (WMB) follows next.

Kinder Morgan is trading below its 50-day and 200-day moving average levels. The stock temporarily crossed above the 50-day moving average on September 25.

Williams Companies’ forward EV-EBITDA multiple, which is based on the current fiscal quarter’s EBITDA estimates, is 13.1x.

The one-year correlation coefficient between Energy Transfer Equity and crude oil was 0.49 as of July 11.

The US crude oil (USO) supply includes domestic production and imports. The supply gets consumed as inputs to refineries and exports.

Among the analysts covering Williams Companies’ stock, 53.0% of the analysts have recommended a “buy,” and the remaining 47.0% have recommended a “hold.”

Kinder Morgan (KMI) is currently trading at a forward EV-to-EBITDA multiple of nearly 11.4x. This is much lower than its five-year average multiple of nearly 17.4x.

Of the analysts surveyed by Reuters, 71% rated ONEOK (OKE) as a “hold.” Nearly 23% rated ONEOK as a “buy,” while 6% rated it as a “sell.”

Kinder Morgan (KMI) stock is trading 7% and 9% below its 50-day and 200-day moving averages, respectively.

Last week, Plains All American Pipeline (PAA), Williams Companies (WMB), and ONEOK (OKE) rose 2.5%, 2.3%, and 1.9%, respectively.

William Companies (WMB) has recovered slightly after a weak August 2017, and it has risen 2.4% since last week. WMB has fallen 3.3% since the beginning of 2017.

Top MLP and midstream stocks have performed strongly so far in 2019. Stocks surged across the board.

ONEOK (OKE) has generated total returns of 86% so far in 2016. In comparison, KMI, OKS, and WMB have generated total returns of 35%, 40%, and -0.2%, respectively.

Around 76% of Reuters-surveyed analysts have rated Kinder Morgan (KMI) as a “buy” or a “strong buy” as of April 9.

There were quite a few MLP merger announcements in the third quarter.

After a brief decline on Wednesday, the S&P 500 energy sector lost strength and fell on February 16. The rise in crude oil inventories dented the sentiment.

At a broad level, 50.0% of analysts rate Energy Transfer Equity as a “hold,” 41.7% rate it as a “buy,” and the remaining 8.3% rate it as a “sell.”

Magnetar raised its stake in Williams Companies during the fourth quarter by purchasing 1.5 million shares. It represents 2.59% of the fund’s 4Q14 portfolio.

On a broader level, 57.1% of analysts rate Williams Companies as a “buy,” 35.7% rate it as a “hold,” and 7.2% rate it as a “sell.”

In this article, we’ll look at the analyst recommendations for the four peers in this series. Let’s start with Energy Transfer Equity (ETE).

Williams Partners (WPZ) has returned -0.2% since the beginning of 2016. But it has rallied 55.9% in the past one month.

Access Midstream Partners LP (ACMP) is a master limited partnership that provides natural gas gathering and processing services under long-term fixed-fee contracts.

MPLX generated total returns, including distributions, of 17% in the last year. Its total returns over five years stand at 28%.

Credit Suisse gave a “neutral” rating to Magellan Midstream Partners (MMP), ONEOK (OKE), and Sunoco (SUN).

At a broader level, 60.0% of analysts rate Williams Companies (WMB) a “buy,” 26.7% rate it a “hold,” and the remaining 13.3% rate it a “sell.”

The Kayne Anderson MLP/Midstream Investment Company (KYN) has generated YTD returns of -3.5%.

Williams Partners (WPZ) was upgraded by Raymond James from “market perform” to “strong buy” last week.

TransCanada (TRP) reported its fourth-quarter results on February 14. The company reported 32% growth in its comparable earnings.

Williams Companies (WMB) has $30 billion in total committed and potential capital investments in Williams Partners (or WPZ) and Access Midstream Partners (or ACMP).

Plains GP Holdings (PAGP) was the most battered last month of the four in our peer group, witnessing a new YTD (year-to-date) low of $19.8 in August.

Kinder Morgan transports natural gas, refined petroleum, crude oil, condensate, CO2, and other products through its network of pipelines.

Energy Transfer Partners (ETP) has a capital budget of $3.9 billion for 2017, of which $1.7 billion was spent in the first half of the year.

Top midstream stocks including Kinder Morgan (KMI), Williams Companies (WMB), and ONEOK (OKE) fell last week.

About 78.0% of analysts rate Williams Companies (WMB) a “buy,” while the remaining 22.0% rate it a “hold” as of August 21, 2017.

ONEOK reported its third-quarter results on October 30 after the markets closed. The company’s EPS of $0.75 beat the consensus estimates.

ONEOK (OKE) stock has risen ~21% so far in 2018, outperforming its peers in the midstream sector.

Williams Companies (WMB) and its MLP subsidiary, Williams Partners (WPZ), are scheduled to release their 1Q18 earnings on May 2.

Of the analysts covering Williams Companies (WMB) on September 5, 2017, 78.0% rated it as a “buy,” and the remaining 22.0% rated it as a “hold.”

August WTI oil futures contracts fell 0.7% in early morning trading on July 18. Brent and WTI crude oil futures rose ~0.5% and ~0.03% on July 17.

Williams Partners (WMB) has a growing fee-based business model.

Enterprise Products Partners plans to spend ~$2.7 billion–$3.0 billion in growth capital projects and nearly $250 million in maintenance capital in 2017. That’s flat compared to its 2016 capex.

The company recorded $12.5 billion in total revenues for 2Q14, up 12.3% from the $11.1 billion recorded in 2Q13. The increase was primarily due to higher volumes in the crude oil marketing and NGL marketing businesses.

Williams Companies (WMB) has lost 1.4% since the beginning of 2017. In comparison, Williams Partners (WPZ) has gained 6.0% in 2017 year-to-date.

Kinder Morgan Inc. (KMI) was formed in 1997 when current CEO Richard Kinder, and former vice chairman William Morgan acquired the general partner of a small limited partnership—Enron Liquids Pipeline L.P.

Williams Companies (WMB) is currently trading 1.4% above its 50-day SMA (simple moving average) and 2.6% above its 200-day SMA.

Williams Partners (WPZ) recently declared a distribution of $0.60 per unit for 2Q17—a 29% decrease from its distribution per unit of $0.85 in 2Q16.

Enterprise Products Partners (EPD) has spent $2.6 billion in capital expenditures in the first nine months of 2016. It spent $6.4 billion in 2015.

Energy Transfer Equities is interested in diversifying its operations and wringing out synergies between the two companies. Synergies (both cost and revenue) are the primary driver of the Williams–Energy Transfer merger.

Short interest in Williams Companies (WMB) as a percentage of shares outstanding has fallen to 1.4%. That’s lower than the 2016 average of 2.8%.

The number of holders in WMB has fallen to 921 as of February 20, 2017, compared to 1,215 at the end of 2015.

Williams Companies stock has recovered slightly. However, the energy stock is still trading at a 20% discount to its 52-week high of close to $30.

Energy Transfer (ET) stock had a weak run despite strong earnings growth in 2019. Here’s a look into how analysts think ET will perform in 2020.

Midstream MLPs have recovered after hitting multiyear lows early this month. The ALPS Alerian MLP ETF (AMLP) is up more than 10% in the last two weeks.

The analyst ratings are based on rigorous analysis of fundamentals. Let’s take a look at these ratings and price targets for top energy stocks.

NGL Pipelines & Services’ revenue came down 35% versus 32.7%. The Petrochemicals & Refined Products Services segment’s revenues increased 12.7% versus 15%.

Williams Companies (WMB) released its 3Q14 earnings on October 29, 2014. Between 3Q12 and 3Q14, WMB’s adjusted earnings per share (or EPS) decreased ~40%.

This year, ONEOK (OKE) stock has risen roughly 32%, while peers Kinder Morgan (KMI) and Williams Companies (WMB) are up 26% and 3%, respectively.

Despite solid earnings growth this year, Energy Transfer stock fell close to its multiyear lows recently. Could this weakness be seen as an opportunity?

Williams Companies stock fell for the seventh consecutive day on Wednesday and closed almost at an 11-month low. Midstream stocks are trading weak.

Energy Transfer stock fell below $12 yesterday. Once again, the company’s strong earnings results, released November 6, didn’t boost the stock.

Energy Transfer (ET) plans to report its Q3 earnings today after the bell. ET has reported significant earnings growth in the last several quarters.

Despite stable earnings and dividend growth, MLP stocks are depressed. We look at the top midstream energy stocks’ performance in the past 12 months.

Kinder Morgan (KMI) currently trades at an attractive yield of about 5%. It expects to raise its dividends by 25% in 2020.

Let’s take a look at three C-corp dividend stocks in the midstream sector that offer attractive total return potential, with very attractive yields.

Of the top midstream companies we’ve discussed in this series, only ONEOK (OKE) and Cheniere Energy (LNG) have met analysts’ mean price targets from a year ago.

Kinder Morgan (KMI) reported its first-quarter results after the markets closed yesterday.

Kinder Morgan (KMI) is expected to report its earnings results for the first quarter of 2019 on April 16.

Around 74% of the Reuters-surveyed analysts have rated Enbridge as a “buy” or “strong buy,” while the remaining analysts rate it as a “hold.”

Enbridge has paid dividends for more than 64 years. Enbridge has increased its dividends for 24 consecutive years.

Crude oil prices rose ~32% in the first quarter. The strength in crude oil prices and strong fourth-quarter performances drove midstream stocks.

US natural gas production continues to surge. It rose by 11% in 2018, the highest ever annual increase.

So far, midstream stocks Kinder Morgan (KMI), ONEOK (OKE), and Williams Companies (WMB) have each risen ~30% in 2019.

As investors, it can be difficult to escape from the lure of high yields. The idea of high and regular income looks attractive.

Midstream stocks and MLPs broadly outperformed the broader markets last week. The Alerian MLP Index was flat while the S&P 500 Index fell 2.2% for the week.

On March 1, Stifel raised its target price for ONEOK from $58 to $69. On February 27, Mizuho raised its target price from $70 to $73.

Kinder Morgan (KMI) and Williams Companies (WMB) have each risen ~24% in 2019. In comparison, ONEOK (OKE) has risen ~27%.

Williams Companies (WMB) is scheduled to release its fourth quarter and fiscal 2018 earnings on February 13.

MLPs fell marginally in the week ending January 25. The Alerian MLP Index fell 0.6% last week.

On January 16, Barclays raised its rating for Williams Companies (WMB) from “equal weight” to “overweight.”

Midstream stocks and MLPs continued to gain in the third week of 2019. The Alerian MLP Index rose 1.9% in the week ending January 18.

With simplified structures and greater financial discipline, MLPs look better-equipped to perform in the volatile commodity price environment.

Williams Companies (WMB) stock has fallen more than 15% in the last two months and is currently trading at a 52-week low.

In the United States, the monthly natural gas production rose from 1.78 trillion cubic feet in January 2009 to 2.43 trillion cubic feet in June 2018.

US natural gas demand is expected to grow 40% from 80 Bcfpd (billion cubic feet per day) to 112 Bcfpd.

Energy Transfer Partners (ETP) has agreed to merge with the wholly owned subsidiary of Energy Transfer Equity in an all-stock deal.

Williams Companies (WMB) and Williams Partners (WPZ) reported their second-quarter earnings on August 1 after the market closed.

Of the 18 analysts covering Williams Companies (WMB), seven recommend “strong buy,” seven recommend “buy,” and four recommend “hold.”

In Q1 2018, hedge funds increased their aggregate holdings in Cimarex Energy, Williams Companies, and Concho Resources by 12.66%, 22.73%, and 71.02%, respectively.

Pipeline projects under construction that cater to Northeastern US natural gas producers include Energy Transfer Partners’ (ETP) Rover Pipeline Project.

The number of institutional holders of Williams Companies (WMB) stock fell to 938 in the first quarter compared to 955 in the previous quarter.

Williams Partners (WPZ) rallied 7% early yesterday following a merger announcement with its GP, Williams Companies (WMB).

William Companies (WMB) recently saw a 52-week low of $24.10 and has lost ~17.5% since the start of 2018. WMB has recovered since then.

Midstream companies such as Kinder Morgan (KMI), Targa Resource (TRGP), and ONEOK (OKE) are taxed as C-corps, so the revised policy doesn’t apply to them.

Energy Transfer Equity continued to have the highest leverage among its peers with net debt-to-adjusted EBITDA ratio at 5.9x by the end of 4Q17.

Of the analysts surveyed by Reuters, 50% rated Kinder Morgan (KMI) a “hold.”

Williams Companies (WMB) has had a massive start to the year. It’s risen nearly 9% in seven trading sessions in 2018. Overall, the C corporation GP (general partner) has risen ~14% since the start of December 2017.

Magellan’s history Magellan Midstream Partners (MMP), which began trading in 2001, has grown through various asset acquisitions and expansion projects over the years. Magellan was formerly a part of Williams Companies (WMB). The company started trading as Williams Energy Partners in 2001, and changed its name to Magellan Midstream Partners in 2003. In 2004, the […]

Takeaway capacity in Appalachia As we’ve learned so far in this series, rising natural gas production in the Appalachian region has created the need for new midstream infrastructure, including natural gas processing plants (see the previous article) and pipelines. Several new pipeline projects are being developed to increase takeaway capacities from the Marcellus and Utica supply […]