Citi Upgrades Williams Companies to ‘Buy’ as Commodity Trough Nears

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On Monday, Citi upgraded Williams Companies ($NYSE:WMB), Inc. to a “Buy” rating as the commodity market neared its lowest point. Williams Companies is an energy infrastructure company that transports natural gas in the United States. Its business is divided into three segments: Williams Partners, Williams NGL & Petchem Services and Williams Corporate. In its report, Citi highlighted the company’s strong financial position and the ability to weather the potential downturn in the commodity market. The brokerage firm expects the company to benefit from the current market dynamics and sees upside potential in its stock prices in the near future.

Citi’s upgrade of Williams Companies stock to “Buy” is an encouraging sign for investors. The company has consistently demonstrated a strong financial position and resilience during periods of market uncertainty. With the commodity market nearing its trough, investors should keep a close eye on Williams Companies stock for potential opportunities.

Market Price

On Tuesday, the stock of WILLIAMS COMPANIES opened at $29.1 and closed at $28.6, a decrease of 1.5% from its last closing price. This news came after Citi upgraded the company’s stock to “buy” as the commodity trough nears. The upgrade is seen as a positive indicator of WILLIAMS COMPANIES’ upcoming prospects and could potentially provide a boost to investors. While the stock has decreased in value, it is important to keep in mind that a trough in commodities can be seen as an opportunity for companies to build up their reserves, which could in turn benefit WILLIAMS COMPANIES in the long run. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Williams Companies. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Williams Companies. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Williams Companies. More…

Key Ratios Snapshot

Some of the financial key ratios for Williams Companies are shown below. More…

Analysis

This rating is based on our comprehensive risk rating system which gauges factors such as financial stability, financial flexibility, and debt management. However, our analysis has identified one risk warning in the income sheet that needs to be addressed. To gain full access to this information, please register with us. Additionally, our team of experts can provide further guidance to help you make an informed decision when it comes to your investment in Williams Companies. 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

Citi analysts have recently upgraded their rating of Williams Companies from a hold to a Buy. This decision is based on the company’s potential to benefit from a commodity price trough, as well as other factors. Williams Companies is a diversified energy infrastructure provider with operations in natural gas, oil, petrochemicals, and power. The company has various assets and businesses that span the entire production and supply chain, including interstate pipelines, natural gas gathering and processing assets, power generation, and related storage facilities. Citi analysts believe that due to the company’s extensive asset base and integrated operations, Williams Companies is well-positioned to benefit from an eventual upturn in commodity prices.

Additionally, the company has been managing its balance sheet well and is likely to be able to sustain its dividend payments.