Is WMB a good stock to buy? We came across a bullish thesis on The Williams Companies, Inc. on Rijnberk InvestInsights’s Substack by Daan | InvestInsights. In this article, we will summarize the bulls’ thesis on WMB. The Williams Companies, Inc.’s share was trading at $70.43 as of April 21st. WMB’s trailing and forward P/E were 33.14 and 30.03 respectively according to Yahoo Finance.
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The Williams Companies is presented as a rare, irreplaceable energy infrastructure monopoly, built on a vast pipeline network that is nearly impossible to replicate due to regulatory, capital, and land constraints. Operating over 33,000 miles of pipelines, including the critical Transco system, Williams transports roughly one-third of U.S. natural gas and about 30% of LNG export volumes, positioning it as a toll-road operator rather than a commodity-exposed energy company.
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Its business model is highly resilient, with around 95% of revenues derived from long-term, fee-based, take-or-pay contracts, ensuring predictable cash flows largely independent of gas prices. The company’s four segments—Transmission, Northeast and West gathering and processing, and marketing—collectively generate steady EBITDA growth, with transmission as the highest-quality contributor.
The investment thesis is driven by structural growth in natural gas demand, particularly from LNG exports and AI-driven power consumption. The U.S. is rapidly expanding LNG capacity, and Williams sits at the center of this value chain through pipelines, storage, and strategic partnerships, creating multi-decade contracted revenue streams. Simultaneously, surging electricity demand from data centers is expected to significantly increase natural gas consumption, with Williams uniquely positioned due to its proximity to key demand hubs.
Financially, the company has demonstrated consistent execution, delivering 13 consecutive years of EBITDA growth and strong cash flow generation, while maintaining disciplined capital allocation with high returns on invested capital. With a large backlog of fully contracted projects and visible growth runway, Williams is targeting 10%+ EBITDA growth, though its premium valuation suggests a more measured entry point despite its exceptional long-term outlook.
Previously, we covered a bullish thesis on Kinder Morgan, Inc. (KMI) by Gregg Jahnke in October 2024, which highlighted the company’s expanding project backlog driven by AI-linked demand, reshoring trends, and regulatory tailwinds tied to political outcomes. KMI’s stock price has appreciated by approximately 27.24% since our coverage. Daan shares a similar view but emphasizes on Williams’ monopoly-like infrastructure and contract-driven, long-duration cash flow visibility.
The Williams Companies, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 80 hedge fund portfolios held WMB at the end of the fourth quarter which was 73 in the previous quarter. While we acknowledge the risk and potential of WMB as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than WMB and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
