Yahoo Finance Williams (WMB) & Chevron Collaborate to Boost Gas Production
Williams Company, Inc. WMB and Chevron (CVX) have collaborated to increase natural gas production in the deepwater Gulf of Mexico and the Haynesville Basin. This partnership is aimed at providing affordable, reliable, and cleaner energy in the United States and abroad.
Under the agreement, Williams will offer natural gas gathering services to Chevron's Haynesville dedication. In turn, Chevron has made a long-term capacity commitment on Williams' Louisiana Energy Gateway (“LEG”) project. Williams will also use its existing infrastructure to support Chevron's increased production from the Blind Faith platform in the Gulf of Mexico.
Williams plans to build a greenfield gathering system to support Chevron's Haynesville dedication pertaining its LEG project. This project is designed to facilitate the transportation of natural gas to premium markets. It will be a part of Williams' strategy to reduce emissions, lower costs, and supply secure and reliable energy in the United States and abroad. The LEG project, which is expected to begin operations in 2024, is strategically positioned to incorporate carbon capture and storage for reducing harmful emissions in the growing Haynesville Basin.
Chevron is an energy company with more than 75 years of experience in the Gulf of Mexico, specializing in deepwater exploration and production using advanced drilling technology, and successful natural gas projects.
Chevron is currently developing the Ballymore tieback project in the deepwater Gulf of Mexico. This project involves connecting three production wells via one flowline to the nearby Blind Faith facility and is designed to have a capacity of 75,000 barrels of crude oil per day. Williams will provide offshore natural gas gathering and crude oil transportation services, as well as onshore natural gas processing services for the production.
Chevron is the operator of the Ballymore project and holds a 60% working interest, while its co-owner TotalEnergies E&P USA, Inc. has a 40% working interest. The partnership between Chevron and Williams is a significant step toward achieving their shared goal of delivering affordable, reliable, and cleaner energy.
Williams, founded in 1908 and based in Oklahoma, is a leading energy infrastructure provider in North America, with core operations in natural gas and liquids. It has a vast pipeline system spanning more than 33,000 miles, and facilities concentrated in several regions of the United States.
Zacks Rank and Key Picks
Currently, Williams carries a Zacks Rank #3 (Hold). Meanwhile, investors interested in the energy sector might look at stocks like ProPetro Holding PUMP sporting a Zacks Rank #1 (Strong Buy) and Helmerich & Payne (HP) holding a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
ProPetro Holding: PUMP currently has a forward P/E ratio of 4.49. In comparison, its industry has an average forward P/E of 25.60, which means PUMP is trading at a discount to the group.
ProPetro Holding is worth approximately $1.07 billion. Its shares have declined 23.2% in the past year.
Helmerich & Payne: Helmerich & Payne is valued at around $4.43 billion. Headquartered in Tulsa, OK, the company has a trailing four-quarter earnings surprise of roughly 130.98% on average.
Over the past 60 days, the Zacks Consensus Estimate for HP's fiscal 2023 earnings has been revised by 18.8%. In the past year, HP stock has increased by 26.1%.
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Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report
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