$WMB

Kimbell Royalty Partners (KRP) and The Williams Companies (WMB) are highlighted as energy dividend stocks with unique advantages. KRP owns mineral rights, generating steady cash from oil and gas production without capital expenditure, offering a 13% yield. WMB operates pipelines, benefiting from the AI boom and natural gas demand, with a 2.8% yield and strong growth prospects. Both companies are seen as reliable income generators with attractive valuations.

Williams Companies Inc completed a $5.5B acquisition of M6 Midstream LLC, expanding its Haynesville position. The deal includes pipelines, contracts, and infrastructure, enhancing Williams' natural gas strategy. Williams expects 2026 adjusted EBITDA of $8.3-8.5B and growth capital spending of $7.3-7.9B, with a leverage ratio midpoint of 3.75x. The acquisition supports Gulf Coast LNG demand growth.

Williams has completed its $5.5 billion acquisition of Momentum Midstream, adding 4,000 miles of pipeline and 1 million acres to its portfolio. The deal, valued at 8.5 times projected 2027 EBITDA, includes $3.5 billion in cash/debt and $2 billion in equity. Williams raised its 2026 adjusted EBITDA guidance by $200 million to $8.4 billion. The acquisition expands Williams' presence in the Haynesville basin, supporting LNG and industrial demand growth.

The Williams Companies (WMB) completed a $5.5B acquisition of Momentum Midstream, adding pipelines, acres, and capacity. The deal is expected to boost AFFO and EPS, valued at 8.5x 2027 EBITDA. WMB sees strong natural-gas demand from LNG exports and power generation, with 2Q 2026 EBITDA up 6% YoY to $1.92B.

Kinder Morgan (KMI) raised its dividend by 2% to $1.19 annually, while Williams Companies (WMB) increased its dividend by 5% to $2.10 annually, with a 52-year payout streak. WMB carries higher leverage but expects deleveraging by 2028. Both companies benefit from strong natural gas sector trends.

US natural gas exports to Mexico hit a record 7.9 Bcf/d in August 2026, driven by strong power and LNG demand. Texas flows set new records, with Mexico's electricity sector and LNG infrastructure supporting growth. Kinder Morgan and ONEOK are investing in pipeline and processing capacity. US LNG exports, led by Cheniere Energy, are also rising, competing for gas supplies. Wood Mackenzie forecasts significant power-sector gas demand growth in North America.

Midstream companies are expanding natural gas infrastructure due to increased production and demand. Key projects include new pipelines and processing plants, with a collective $160B backlog. Companies like Kinder Morgan, Energy Transfer, and Targa Resources are involved, raising financial guidance. Permian Basin's gas output is growing, driving infrastructure investments.

Goldman Sachs increased its natural gas demand forecast due to data center growth, citing a 10-11 bcf/d increase from 2025-2030. The bank sees value in midstream gas stocks after a 12% pullback. Williams (WMB) and Kinder Morgan (KMI) were highlighted for their exposure to this trend, with both companies reporting strong Q2 results. Kodiak Gas (KGS) was also mentioned as a potential beneficiary.

The Williams Companies (WMB) shares rose 5.1% today, driven by strong Q2 results, an improved 2026 EBITDA outlook, and strategic acquisitions. The company reported $1.921B in adjusted EBITDA and raised its 2026 guidance to $8.4B. Recent deals include a $5.5B acquisition and a $5.34B joint venture. The broader natural gas sector rally also contributed to the gains.

Morgan Stanley recommends investing in The Williams Companies (WMB) for AI infrastructure exposure, citing a 45% upside to $103. Shares have dropped 7% in 3 months, presenting an entry point. The company expects 20% ROI from data centers and new projects. 19 of 23 analysts rate WMB a buy.