Williams Companies Stock Fair Value – Williams Companies Raises $2.1 Billion Through Debt Offering
January 5, 2024
🌧️Trending News
On Tuesday, the Williams Companies ($NYSE:WMB), a large energy infrastructure company, announced that it had issued a debt offering of $2.1 billion. This move brings the total debt obligations to a record high for the company, but is expected to help finance expansion and provide long-term stability. The Williams Companies is a publicly traded energy infrastructure company headquartered in Tulsa, Oklahoma. The company also provides energy services to customers in Canada, Mexico, and the Caribbean.
Share Price
On Wednesday, Williams Companies (WMB) stock opened at $35.5 and closed at $36.3, a 2.2% increase from the previous day’s closing price of 35.5. The company recently announced that it had successfully raised $2.1 billion by issuing debt to investors. The proceeds are expected to be used for general corporate purposes, including paying down existing debt and investing in new projects. The company’s debt offering was well-received by investors as the company was able to issue the bonds at a lower rate than initially anticipated.
This debt offering marks a milestone in Williams Companies’ ongoing efforts to strengthen its balance sheet and invest in new projects that will help the company generate returns for shareholders in the future. Investors have been encouraged by the company’s progress and are confident that this latest move will be beneficial for long-term growth. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Williams Companies. More…
| Total Revenues | Net Income | Net Margin |
| 11.05k | 2.71k | 24.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Williams Companies. More…
| Operations | Investing | Financing |
| 5.34k | -3.47k | -658 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Williams Companies. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 50.79k | 36.45k | 9.74 |
Key Ratios Snapshot
Some of the financial key ratios for Williams Companies are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 12.6% | 18.6% | 45.4% |
| FCF Margin | ROE | ROA |
| 24.0% | 26.6% | 6.2% |
Analysis – Williams Companies Stock Fair Value
At GoodWhale, we have conducted an analysis of WILLIAMS COMPANIES‘ fundamentals and determined that the fair value of WILLIAMS COMPANIES shares is around $31.7, calculated by our proprietary Valuation Line. Currently, WILLIAMS COMPANIES stock is traded at $36.3, indicating that the price is slightly overvalued by 14.6%. Therefore, we suggest that investors interested in WILLIAMS COMPANIES should be mindful of this overvaluation and consider potential downside risks associated with investing in the stock at this price. More…
Peers
The Williams Companies Inc is a publicly traded company that is engaged in energy transportation and infrastructure development. The company operates through its subsidiaries in three segments: Williams Partners, Williams NGL and Williams Midstream. The company’s headquarters are in Tulsa, Oklahoma.
The company’s main competitors are Kinder Morgan Inc, ONEOK Inc, Enterprise Products Partners LP. These companies are all engaged in the energy transportation and infrastructure development business.
– Kinder Morgan Inc ($NYSE:KMI)
Kinder Morgan Inc., together with its subsidiaries, operates as an energy infrastructure company in North America. The company operates in three segments: Natural Gas Pipelines, Products Pipelines, and Terminals. The Natural Gas Pipelines segment owns and operates natural gas pipelines and storage facilities. This segment also transports natural gas to electric power generation facilities, local distribution companies, direct industrial users, and natural gas marketers. The Products Pipelines segment owns and operates refined petroleum products pipelines and terminals. The Terminals segment owns and operates Terminals that provide storage, handling, and other services for petroleum products, chemicals, minerals, and other bulk materials. The company was founded in 1997 and is headquartered in Houston, Texas.
– ONEOK Inc ($NYSE:OKE)
ONEOK is one of the largest energy midstream service providers in the United States. The company has a market cap of $24.88B as of 2022 and a Return on Equity of 28.78%. ONEOK provides natural gas gathering, processing, storage, and transportation services to customers in the United States and Canada. The company also owns and operates natural gas liquids (NGL) gathering, processing, fractionation, and transportation systems.
– Enterprise Products Partners LP ($NYSE:EPD)
Enterprise Products Partners LP is a publicly traded partnership that owns, operates, develops, and acquires midstream energy assets in the United States. The company’s assets include natural gas pipelines, gathering and processing facilities, and storage terminals. Enterprise Products Partners LP is headquartered in Houston, Texas.
Summary
Williams Companies recently announced the pricing of its $2.1 billion debt offering, with the proceeds to be used for general corporate purposes. This debt offering received strong investor demand, with investors seeing Williams’ ability to remain competitive in its markets, as well as its solid balance sheet, as attractive features. With this new debt offering, Williams is likely to focus on its short-term objectives, such as repaying existing debt and making capital investments, while maintaining its commitment to long-term growth.
