North American energy firm Williams Companies Inc. (WMB) declared that it has distributed record volumes of natural gas through Transco interstate gas pipeline to meet a high space heating demand created by frigid temperatures across the U.S Eastern Seaboard. Transco is owned by Williams Partners LP (WPZ), of which Williams Companies is the general partner and controlling stake owner.
Williams Companies recently increased the transportation capacity of Transco – the largest pipeline system in the U.S. in terms of volumes − by roughly 315,000 dekatherms per day.
On Jan 7, Transco supplied as much as 12.6 million dekatherms (MMdt) of natural gas to the market region that stretches from Mississippi to New York City. The amount is higher than the record volume of 11.9 MMdt of natural gas delivered on the same date a year ago.
Williams Companies believes that the day’s natural gas supply was enough to meet room heating demand from 50 million households in the US. The company added that it expects considerably higher natural gas deliveries through the Transco pipeline as planned projects come online over the years.
Tulsa, OK-based 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 gas. Boasting a widespread pipeline system, Williams Companies is one of the largest domestic transporters of natural gas by volume.
However, we remain concerned about Williams Companies’ high debt levels, which leave it vulnerable to an extended drop in commodity prices. As of Sep 30, 2014, Williams Companies had long-term debt of almost $20.0 billion, representing a debt-to-capitalization ratio of 69.6%.
The company currently carries a Zacks Rank #3 (Hold), implying that the stock is expected to perform in line with the broader U.S. equity market over the next one to three months.
Meanwhile, better-ranked players in the energy sector include Seadrill Partners LLC (SDLP) and Cheniere Energy Partners LP (CQP). Both stocks sport a Zacks Rank #1 (Strong Buy).
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