Tulsa, OK-based energy firm
Williams Companies Inc
) interstate natural gas transmission unit - Transcontinental Gas
Pipe Line Company LLC (or Transco) - said that it hopes to finish
working on planned maintenance on its Central Louisiana Lateral
natural gas pipeline near Kaplan, Louisiana, on March 11. Transco
had initially mentioned March 5 as the completion deadline.
Transco is a 10,200-mile conduit system that carries natural gas
to markets all over the northeastern and southeastern U.S.
Following a host of expansions, the total system capacity has
been boosted to approximately 9.9 billion cubic feet per day,
which allows Williams to continue meeting the region's growing
energy needs by providing clean-burning natural gas in time for
the winter heating season.
Williams Companies is a premier energy infrastructure provider in
North America. The company's core operations include finding,
producing, gathering, processing and transportation of natural
Williams Companies' midstream assets, which are less sensitive to
commodity prices, help the company to maintain a steady stream of
revenues and cash flow even if
stay low. Furthermore, Williams Companies is poised to benefit
from the rebound in industrial activity, which will include
increased natural gas demand in the form of natural gas liquids.
Williams Companies, after the volatile and capital-intensive
WPX Energy Inc.
) spin-off in 2011, has transformed itself into a pure play
midstream conglomerate with operations spanning from the Canadian
oil sands to deepwater fields in the Gulf of Mexico.
However, Williams Companies' extensive natural gas exposure
raises its sensitivity to the commodity's price, which continues
to be volatile. This translates into an uncertain near- to
medium-term outlook for the company.
Additionally, we remain concerned about Williams Companies' high
debt levels, which leave it vulnerable to an extended drop in
commodity prices. As of Dec 31, 2013, Williams Companies had
long-term debt of $11.4 billion, representing a
debt-to-capitalization ratio of 70.4%.
Williams Companies currently holds a Rank #3 (Hold), implying
that it is expected to perform in line with the broader U.S.
equity market over the next one to three months.
Some better-ranked stocks in the energy sector include
Warren Resources Inc.
Range Resources Corp.
). Both these domestic upstream players, with a Zacks Rank #1
(Strong Buy), have seen solid secular growth and harbor the
potential to rise significantly from the current levels.
RANGE RESOURCES (RRC): Free Stock Analysis
WILLIAMS COS (WMB): Free Stock Analysis
WPX ENERGY INC (WPX): Free Stock Analysis
WARREN RSRCS (WRES): Free Stock Analysis
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