Williams Companies, Inc. WMB recently suffered a legal setback regarding its Regional Energy Access expansion project. The project, planned by Transcontinental Gas Pipeline, a unit of Williams, had received approval from the Federal Energy Regulatory Commission (“FERC”). However, the D.C. Court of Appeals invalidated FERC’s approval for the project.
The natural gas pipeline project, valued at approximately $1 billion, was slated to run through five mid-Atlantic states and serve nearly 3 million consumers. The proposed pipeline project was intended to deliver gas, mostly to customers in New Jersey and some parts of Delaware, Maryland, New York and Pennsylvania.
The U.S. appeals court consisted of a three-judge panel that stated that the FERC did not adequately consider the risk of significant greenhouse gas emissions from the project and the measures that the Williams unit would take to reduce it.
The court further argued that FERC did not pay proper heed to the public interest while evaluating the project. It also stated that the regulatory body did not adequately assess if the state required additional capacity and failed to review New Jersey's laws aimed at promoting clean energy. The D.C. Court of Appeals cited two sources that affirmed that the current capacity of the state would be enough beyond 2030.
Many environmental groups, including the New Jersey Conservation Foundation and Sierra Club, viewed the FERC approval as a formality. The court nullified the FERC approval with its decision, citing that the regulatory body relied on a flawed rationale that private contracts for additional capacity demonstrate that the public needs another gas project.
The FERC declined to comment on the matter, per a Reuters report. The FERC was opposed by eight states, led by New Jersey and Washington, who emphasized the need for reducing greenhouse gas emissions and upholding clean energy laws.
Williams acknowledged the court's decision and stated that it plans to address the court’s concerns. However, the decision will not delay the deployment of the project, which will provide access to clean and reliable natural gas for its consumers in the Northeast.
Zacks Rank and Key Picks
Currently, WMB carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the energy sector are SM Energy SM, VAALCO Energy EGY and Energy Transfer LP ET. SM Energy presently sports a Zacks Rank #1 (Strong Buy), while VAALCO and Energy Transfer carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
SM Energy is an upstream energy firm operating in the prolific Midland Basin and the South Texas regions. For 2024, the company expects its production to increase from the prior-year reported figure, signaling a bright production outlook.
VAALCO Energyis an independent energy company involved in upstream operation business with a diversified presence in Africa and Canada. Having a large inventory of drilling locations in premium Canadian Acreage, the company’s production outlook seems bright.
Energy Transfer is a midstream player that owns and operates one of the most diversified portfolios of energy assets in the United States. Boasting a pipeline network extending more than 125,000 miles, its network spans over 44 states. With a presence in all the major U.S. production basins, the company’s outlook seems positive.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners UpWilliams Companies, Inc. (The) (WMB) : Free Stock Analysis Report
SM Energy Company (SM) : Free Stock Analysis Report
Vaalco Energy Inc (EGY) : Free Stock Analysis Report
Energy Transfer LP (ET) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
