We came across a bullish thesis on The Williams Companies, Inc. on X.com by @MoneyShow. In this article, we will summarize the bulls’ thesis on WMB. The Williams Companies, Inc.’s share was trading at $74.77 as of February 26th. WMB’s trailing and forward P/E were 32.35 and 26.88 respectively according to Yahoo Finance.
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Williams Companies Inc. (WMB) provides investors with steady exposure to U.S. natural gas infrastructure through its extensive transmission, gathering, processing, and storage operations. The company operates the Transco and Northwest pipeline systems, which transport roughly 30% of the nation’s natural gas from the Gulf Coast to densely populated areas along the East Coast, giving it a near-monopoly in its regions and limiting competitive pressure on pricing. As a fee-based midstream business, WMB earns revenue primarily from transporting, storing, and processing gas rather than from commodity price swings, creating predictable and resilient cash flows.
These revenues are further supported by long-term contracts with automatic inflation adjustments, insulating earnings from short-term market volatility. Natural gas demand, driven by power generation and LNG exports, underpins WMB’s long-term stability, while natural gas remains the fastest-growing and cleanest-burning fossil fuel in the U.S., reinforcing the strategic relevance of its assets. The company’s business model benefits from growing volumes across the country, allowing consistent cash generation even amid fluctuations in commodity markets.
Williams currently pays a $2 per share annual dividend, equating to a 3.2% yield, and has increased its payout for nine consecutive years, highlighting a strong commitment to returning capital to shareholders. With its dominant position, predictable fee-based cash flows, inflation-protected contracts, and essential infrastructure exposure, WMB offers a compelling risk-adjusted opportunity for investors seeking income and long-term stability. The combination of growth in natural gas demand, resilient contract structures, and consistent dividend policy supports a “Buy” recommendation at the current price.
Previously, we covered a bullish thesis on Kinder Morgan, Inc. (KMI) by Gregg Jahnke in October 2024, which highlighted the company’s project backlog growth driven by AI-related industrial demand and U.S. manufacturing reshoring. KMI’s stock price has appreciated by approximately 33.25% since our coverage. @MoneyShow shares a similar view but emphasizes Williams Companies, Inc. (WMB)’s fee-based natural gas cash flows, inflation-protected contracts, and steady dividend growth.
The Williams Companies, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 73 hedge fund portfolios held WMB at the end of the third quarter which was 78 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.
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Disclosure: None.
