Williams Companies Fuels Future Growth with $1.95B Natural Gas Storage Buyout
Portfolio Pulse from Lekha Gupta
Williams Companies Inc (NYSE:WMB) has agreed to purchase a portfolio of natural gas storage assets from an affiliate of Hartree Partners LP for $1.95 billion, approximately 10x the estimated 2024 EBITDA multiple. The acquisition includes six storage facilities in Louisiana and Mississippi with a total capacity of 115 Bcf, 230 miles of pipeline, and 30 interconnects. The deal is expected to close in January 2024 and is seen as a strategic move to meet growing demand for natural gas, especially as renewable energy adoption increases. WMB's stock showed a slight premarket decline.
December 27, 2023 | 2:11 pm
News sentiment analysis
Sort by:
Ascending
POSITIVE IMPACT
Williams Companies Inc's acquisition of natural gas storage assets for $1.95 billion is a strategic move to enhance its storage capacity and meet increasing demand, especially with the rise of renewables. The deal is expected to drive significant earnings growth.
The acquisition is a significant investment in infrastructure that is likely to enhance WMB's earnings and strategic positioning in the energy market. The purchase price is in line with industry multiples, and the assets acquired are substantial in terms of capacity and strategic location. The slight premarket decline in WMB's stock price may be due to market digestion of the news, but the long-term outlook based on the company's statement appears positive.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 100