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Wells Fargo raised its price target on the stock to $90 from $89 while keeping its overweight rating, which means they expect it to perform better than the broader market. This small adjustment follows a quarter where the company raised its full-year profit outlook. It suggests that analysts see the current price as a fair entry point for a business that is successfully growing its natural gas pipeline network.
Source: Wells Fargo
Williams reported solid results for the second quarter, with adjusted profit of $0.50 per share roughly matching what analysts expected. The company brought in $3.05 billion in revenue, which was higher than the $2.83 billion forecast. Because the business is performing well, management raised its 2026 outlook for adjusted EBITDA, a measure of core operational profit.
Alongside the results, the company announced it is buying Momentum Midstream for up to $5.5 billion. This deal adds more pipelines and processing plants to its network, specifically connecting natural gas supplies in Louisiana to the Gulf Coast. This is a clear move to capture more of the growing demand for natural gas used in power plants and for export as liquefied natural gas.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
The board approved a dividend of $0.525 per share, which works out to $2.10 for the full year. This payment is consistent with the company's recent history of returning cash to shareholders. For a pipeline company like Williams, steady dividends are a primary reason people own the stock, as the business generates predictable cash from long-term contracts to move natural gas.
Source: Business Wire
The company has a very consistent track record, meeting or slightly beating expectations in almost every quarter. Management is reliable and sets bars they know they can clear.
| Expectation | |
|---|---|
| EPS | $0.56 |
| Revenue | $2.96B |
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