Williams Companies offers utility-like fee-based cash flows with scarce gas corridors and an emerging AI-power growth engine, supporting an $82.39 weighted five-year target.
Overview
Williams Companies is a leading U.S. natural-gas infrastructure provider whose Transco and related assets connect major producing basins with utilities, power generators, industrial users, and LNG exporters. The company transports approximately one-third of U.S. natural gas and generates 97% to 98% of adjusted EBITDA from fee-based, largely take-or-pay contracts, creating utility-like cash-flow visibility. **The core investment case combines scarce infrastructure with secular LNG and data-center power demand.** Q2 2026 revenue rose 9.8% year over year to $3.053 billion, adjusted EBITDA increased 6% to $1.921 billion, and AFFO rose 10% to $1.450 billion. Net debt leverage was 3.67x, while dividend coverage improved to 2.26x. Management raised 2026 adjusted EBITDA guidance to $8.3-$8.5 billion and expects approximately 3.75x leverage after Momentum. The Blackstone-led $5.34 billion investment funds 49% of expected Power Innovation growth expenditures while WMB retains 51% control. Shares at $71.54 trade at 17.1x LTM EV/EBITDA and 29.56x forward P/E, a premium to peers, but the report views the premium as justified. The weighted five-year target is $82.39, with Momentum integration, project execution, and LNG/power demand as catalysts.