Williams (WMB) continues to layer on growth projects, including its Neo power innovation project, and estimates a compound annual growth rate of 9% for sanctioned projects through 2030 while still targeting 10%, RBC Capital Markets said in a note Wednesday.
The company anticipates a 5x build multiple on the $2.3 billion Neo project cost, implying about $460 million of annual EBITDA generation, while Atlas includes a new 13-year agreement to provide a pipeline capacity of 164 million cubic feet per day to a data center in the Northeast which is expected to be in service by year-end, according to the note.
Management expects to be in the top half of its 2026 adjusted EBITDA guidance range of $8.05 billion to $8.35 billion, supported by a strong Q1 and outlook for the rest of the year, the brokerage said.
Analysts now forecast 2026 and 2027 adjusted EBITDA of $8.39 billion and $9.29 billion, respectively, and available funds from operations of $6.36 billion and $7.15 billion, respectively.
RBC Capital Markets kept an outperform rating on Williams and raised the price target to $83 from $82.
Shares of Williams were down 1.8% in Thursday trading.
Price: $72.45, Change: $-1.32, Percent Change: -1.78%