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Williams (WMB) to Boost NC Supply Capacity via Transco Pipe

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The Tulsa, OK-based pipeline operator, The Williams Companies, Inc. (WMB - Free Report) , intends to spend about $212.5 million to upgrade its Transco pipeline, which is situated in North Carolina, to augment supplies to Piedmont Natural Gas by around 423,400 dekatherms a day by the end of 2024.

Last month, the company filed an application with the Federal Energy Regulatory Commission for Southside Reliability Enhancement to increase its capacity along the Transco pipeline. The upgrade will not require additional pipeline construction but will need the bettering of compressor stations and other necessary infrastructures to expand the amount of gas that can be transported to parts of North Carolina.

Piedmont will be the only customer of the gas to come out as a result of the development. However, the amount that Piedmont will be paying for the increased capacity is not disclosed.

Williams’ spokesperson, Meghan Miles, mentioned that the new capacity will largely firm up (capacity from) a prevailing path from Transco’s interconnection with the Pine Needle LNG Co. LLC’s storage facility to Piedmont’s existing metering facilities in Iredell County. “The remainder of the capacity provides additional firm service to serve eastern N.C. and will be connected to Piedmont’s existing pipeline system in that region,” she ended.

Founded in 1908, The Williams Companies, Inc. is a premier energy infrastructure provider in North America. WMB’s core operations include finding, producing, gathering, processing and transporting natural gas and natural gas liquids. Boasting a widespread pipeline system of more than 33,000 miles of pipelines, Williams is one of the largest domestic transporters of natural gas by volume.

Williams currently has a Zacks Rank #3 (Hold). Some better-ranked stocks from the energy space that warrant a look include PDC Energy , Imperial Oil (IMO - Free Report) and SilverBow Resources , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

PDC Energy’s stock price has increased 70.8% in a year. The Zacks Consensus Estimate for PDC Energy’s 2022 earnings has been revised about 27% upward over the past 60 days from $14.75 per share to $18.73.

The Zacks Consensus Estimate for PDCE’s 2022 earnings is pegged at $18.73 per share, up 134.4% from the projected year-ago earnings of $7.99.

The Zacks Consensus Estimate for Imperial Oil’s 2022 earnings has been revised about 28% upward over the past 60 days from $5.57 per share to $7.11.

The Zacks Consensus Estimate for Imperial Oil’s 2022 earnings is projected at $7.11 per share, up approximately 155.8% from the projected year-ago earnings of $2.78. IMO shares have gone up 59.5% in a year.

SilverBow stock has gone up 66.4% in a year. The Zacks Consensus estimate for Silverbow’s 2022 earnings has been revised 67% upward over the past 60 days.

The Zacks Consensus Estimate for SBOW’s 2022 earnings is projected at $12.69 per share, up about 97.6% from the projected year-ago earnings of $6.42.


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