Williams Companies: A Thriving Natural Gas Transportation Play With A Solid Yield

Image Source: UnsplashThe federal government recently released the first-quarter gross output (GO) data, with mixed results. Meanwhile, natural gas distributor The Williams Companies Inc. (WMB) is doing great, up approximately 25% year-to-date, highlights Mark Skousen, editor of Forecasts & Strategies.Real GO rose 2.5% faster than gross domestic product (GDP), thanks largely to robust consumer spending. But business (B2B) spending continues to lag and, in fact, declined slightly for the second quarter in a row.It suggests stagflation into 2024. But I’m still optimistic about the economy for the rest of the 2020s, especially after the Supreme Court ruled twice against government agencies such as the Environment Protection Agency (EPA) — the Chevron case — and the Securities & Exchange Commission (SEC).The Supreme Court ruled that these bureaucracies must follow Congressional guidance to limit their powers and can’t rely on their own courts to defend their often draconian regulations, and excessive fees and fines.As for Williams Companies, UBS recently released a report suggesting “strong long-term prospects” for the company. Earnings are expected to grow nearly 14% this year, and even more thereafter, since the federal government approved natural gas deliveries by Transco across a 10,000-mile network from South Texas to New York.As one of the largest domestic transporters of natural gas by volume, The Williams Companies owns Transco. This interconnection will likely increase the volume of natural gas transported through Transco, boosting Williams’ revenues and indirectly benefiting its stock price.My recommended action would be to consider buying shares of The Williams Companies.

About the Author
Mark Skousen is known as “America’s Economist,” having recently been named one of the top 20 living economists in the world. Dr. Skousen has taught economics and finance at Columbia Business School and was recently appointed the first Doti-Spogli Endowed Chair of Free Enterprise at Chapman University in California.He is the editor of the award-winning investment newsletter, Forecasts & Strategies, the author of The Maxims of Wall Street, and has the unique distinction of having worked three careers—working for the government (the CIA), non-profits (president of FEE), and for-profit corporations (consultant to IBM, and producer of FreedomFest).More By This Author:Tesla: Jumping On Deliveries News Now, And Maybe AI Moves Later
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