As artificial intelligence’s energy demands rise, natural gas is becoming a key player in powering data centers. Companies like Williams Companies (NYSE: WMB), Enterprise Products Partners (NYSE: EPD), and Energy Transfer (NYSE: ET) are leading this shift, with Williams building 400 megawatts of gas generation in New Albany, Ohio, and Microsoft partnering with Chevron for a 2.67-gigawatt project in Texas, set to deliver power by 2028.
Enterprise Products reported a record operational distributable cash flow of $2.3 billion, covering its quarterly distribution 1.9 times, while Energy Transfer’s distributable cash flow rose by 32%, resulting in a consecutive distribution increase. Williams, meanwhile, aims for an 11% annual EBITDA growth rate through 2030 following its acquisition of Momentum Midstream.
The landscape for energy infrastructure faces challenges like permitting delays and local opposition, but bipartisan efforts in Congress aim to streamline these processes. Investors are advised to monitor new contract announcements and distribution coverage as barometers for these companies’ performances.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
