Latest news with #WMB
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
CNBC
29-05-2025
- Business
- CNBC
This energy stock could see a 'big base breakout' to the upside, according to the charts
While energy has become a chronic underperformer in 2025, there are several infrastructure plays within the sector that are demonstrating much more constructive technical configurations as we near the end of May. Today we'll examine how Williams Companies (WMB) may be preparing for a "big base breakout" pattern with significant upside potential. The daily chart of WMB shows how the stock was in a clear accumulation phase for most of 2024, rising from a February 2024 low around $35 to reach just over $60 by November. From that point on, the chart settled into a consolidation phase with support around $52 and resistance in the $60-$62 area. With the price in a clear equilibrium for the past six months, we've been waiting patiently for a big base breakout pattern. After trending sideways for an extended period, the price finally exits the range and makes new high above the well-established resistance level. We can use the height of the basing pattern to project a minimum upside objective post-breakout. Based on the recent setup, that would imply a bullish target of around $72 if and only if WMB can power to a new all-time high above $62. What gives us confidence that the big base breakout pattern will be completed? Volume indicators suggest that even though the price has been in a consolidation phase, there has been more bullish than bearish volume in 2025. The bottom indicator, Chaikin Money Flow, weights the daily volume readings based on where the stock closes every day within its daily range. If a stock closes near the highs of the day, then that day's volume is considered mostly bullish volume. A close near the lows would imply that most of the day's volume was more selling pressure. The Chaikin Money Flow has been above the zero line since December 2024, suggesting that even though the price has been in a sideways trend, there has been more buying power demonstrated versus selling pressure. If we can confirm a breakout above price resistance with improving Money Flow readings, that would confirm that the bulls are firmly in control. Finally, let's dig into some relative strength measures that show Williams has performed relative to other areas of the equity markets. First, we can see that WMB has outperformed the S & P 500 over the past 12 months, with the relative line again turning higher in recent weeks. Next, we're showing the relative performance of the energy stocks as a whole to confirm that this sector has indeed been one of the worst relative performers in 2025. In fact, the sector is close to making a new 12-month relative low this week. In the next two panels, we can see that WMB has been outperforming other pipeline companies in 2025, and that pipelines have been a strong relative performer over other energy stocks during the last year. Overall, we can confirm that the strength in Williams is not only a thematic play on energy infrastructure but also represents an individual stock that has differentiated itself within the industry. I was taught that the best approach is to find winning stocks in leading industries and then follow those uptrends as long as possible. Given a potential upside breakout for WMB, investors may be rewarded for following the latest signs of a strong uptrend phase. -David Keller, CMT DISCLOSURES: None. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
Yahoo
05-05-2025
- Business
- Yahoo
How To Earn $500 A Month From Williams Companies Stock Ahead Of Q1 Earnings
The Williams Companies, Inc. (NYSE:WMB) will release earnings results for the first quarter, after the closing bell on Monday, May 5. Analysts expect the Tulsa, Oklahoma-based company to report quarterly earnings at 55 cents per share, down from 59 cents per share in the year-ago period. Williams projects to report quarterly revenue at $2.94 billion, compared to $2.77 billion a year earlier, according to data from Benzinga Pro. On April 29, Williams raised its quarterly dividend by 5.3% to 50 cents per share. With the recent buzz around Williams, some investors may be eyeing potential gains from the company's dividends too. As of now, Williams offers an annual dividend yield of 3.33%, which is a quarterly dividend amount of 50 cents per share ($2.00 a year). So, how can investors exploit its dividend yield to pocket a regular $500 monthly? To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $180,000 or around 3,000 shares. For a more modest $100 per month or $1,200 per year, you would need $36,000 or around 600 shares. To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($2.00 in this case). So, $6,000 / $2.00 = 3,000 ($500 per month), and $1,200 / $2.00 = 600 shares ($100 per month). View more earnings on WMB Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time. How that works: The dividend yield is computed by dividing the annual dividend payment by the stock's current price. For example, if a stock pays an annual dividend of $2 and is currently priced at $50, the dividend yield would be 4% ($2/$50). However, if the stock price increases to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield rises to 5% ($2/$40). Similarly, changes in the dividend payment can impact the yield. If a company increases its dividend, the yield will also increase, provided the stock price stays the same. Conversely, if the dividend payment decreases, so will the yield. WMB Price Action: Shares of Williams gained 2% to close at $60.00 on More: Image: Logo courtesy of Williams Companies UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? WILLIAMS COMPANIES (WMB): Free Stock Analysis Report This article How To Earn $500 A Month From Williams Companies Stock Ahead Of Q1 Earnings originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
Business Insider
03-05-2025
- Business
- Business Insider
Williams Co (WMB) Receives a Hold from Seaport Global
In a report released today, Laurie Havener from Seaport Global maintained a Hold rating on Williams Co (WMB – Research Report). The company's shares closed yesterday at $60.00. Protect Your Portfolio Against Market Uncertainty Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. According to TipRanks, Havener is ranked #1777 out of 9371 analysts. Williams Co has an analyst consensus of Moderate Buy, with a price target consensus of $61.69. WMB market cap is currently $73.24B and has a P/E ratio of 33.02. Based on the recent corporate insider activity of 54 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of WMB in relation to earlier this year. Most recently, in March 2025, Larry C Larsen, the SVP of WMB sold 8,000.00 shares for a total of $455,520.00.
