10 Best Infrastructure Stocks To Buy Now

8. The Williams Companies, Inc. (NYSE:WMB)

Number of Hedge Fund Holders In Q2 2024: 37

The Williams Companies, Inc. (NYSE:WMB) is a diversified energy infrastructure firm that lays out transmission lines, gas pipelines, and other projects. Since it depends on natural gas demand for its facilities to a large extent, higher demand leads to more revenue and vice versa. Natural gas futures are priced at $2.36 while gas is currently trading for $2.30, The Williams Companies, Inc. (NYSE:WMB) can see catalysts from this as gas buyers seek to purchase now and store the commodity for future use. The firm is also currently busy expanding its gas transmission network, and it plans to have replaced 112 gas compressors by 2024 end. These can allow The Williams Companies, Inc. (NYSE:WMB) to benefit from increased capacity and allow it to utilize favored rates. It has also partnered up with Chevron for the oil giant’s Deepwater project in the Gulf of Mexico, through which The Williams Companies, Inc. (NYSE:WMB) will serve as Chevron’s gas gathering partner. Once the project starts operations, the firm could see additional revenue tailwinds.

The Williams Companies, Inc. (NYSE:WMB)’s management touted its strong financial performance during the Q2 2024 earnings call over the years as one reason for investors to be faithful:

“We are the most natural gas-centric large-scale midstream company around today, and our natural gas-focused strategy continues to deliver growth on top of growth quarter after quarter. And to that point, we’ve now seen 11 consecutive years of adjusted EBITDA growth and an 8% compound annual growth rate of our adjusted EBITDA since 2018. In addition, we have realized a 19.5% return on our invested capital during the last 4 years, and our steadfast project execution led to record contracted transmission capacity and will continue to drive per share growth in 2024 and beyond. In fact, our current projects in execution have higher returns than this prior 4 years. So in closing, we’ve built a business that is delivering record profitability and strong financial returns in the present, but is positioned for even faster — for an even faster-growing future.”