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Williams (WMB) Acquires NorTex Midstream Assets for $423M

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The Williams Companies (WMB - Free Report) recently announced that it has concluded the $423-million deal to acquire Houston-based NorTex Midstream, a fully contracted natural gas pipeline and storage asset, from the private equity firm Tailwater Capital’s affiliate.

As part of the contract, the Tulsa, OK-based pipeline operator will take over NorTex assets. These include roughly about 80 miles of natural gas transmission pipelines along with 36 billion cubic feet of natural gas storage in the Dallas-Fort Worth market.

Per WMB, NorTex assets offer crucial service to almost 4 GW of gas-fired power generation, allowing Texas energy providers to meet peak demand effectively. The assets also enable Williams to provide storage services for the Permian gas directed toward the rising Gulf Coast LNG demand.

Williams president and CEO Alan Armstrong mentioned that the acquired natural gas infrastructure is critical in narrowing the limited supply and high demand gap at one of the United States’ fastest-growing population centers. "We see significant upside to integrating these assets, especially when combined with our existing transmission and storage capabilities," he further added.

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 NexTier Oilfield Solutions (NEX - Free Report) , Marathon Petroleum (MPC - Free Report) and RPC (RES - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for NexTier’s 2022 earnings stands at $1.35 per share, indicating an increase of about 414% from the year-ago loss of 43 cents.

NEX beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being around 269.5%.

The Zacks Consensus Estimate for Marathon Petroleum’s 2022 earnings stands at $21.11 per share, indicating an increase of approximately 761.6% from the year-ago earnings of $2.45.

MPC beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being around 56.7%.

The Zacks Consensus Estimate for RPC’s 2022 earnings is pegged at 55 cents per share, suggesting an increase of 1733% from the year-ago earnings of 3 cents.

RES beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being around 80%.

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