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Williams Cos. adds core infrastructure for LNG buildout following Gulf Coast storage acquisition – BofA By Investing.com

Williams Cos. adds core infrastructure for LNG buildout following Gulf Coast storage acquisition – BofA By Investing.com


© Reuters. Williams Cos. (WMB) Adds Baseline Infrastructure for LNG Construction Following Gulf Coast Storage Acquisition – BofA

BofA analysts maintained a $41 price target and a buy rating on Williams Cos. (WMB) in a note released Friday, saying the acquisition of $2 billion in Gulf Coast storage adds basic infrastructure for LNG construction.

Before the market opened Wednesday, WMB announced it had entered into an agreement to acquire a portfolio of natural gas storage assets from an affiliate of Hartree Partners LP for $1.95 billion.

BofA analysts, who led the note, explained that the deal includes six regulated underground natural gas storage facilities in Louisiana and Mississippi, increasing WMB’s storage capacity by 115 billion cubic feet. (up from 290 billion cubic feet) and adds 230 miles of natural gas pipelines with 30 connections. points to its Louisiana GC network systems as well as new markets.

The deal is expected to close in January 2024.

“In our opinion, the multiple is reasonable when considering similar transactions such as DTM/Millennium (~10x), WMB/Nortex (“<10x”) and KMI/Stagecoach (~11x),” the analysts concluded from BofA.



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