William Companies Inc (NYSE:WMB) Plans On Exploiting The Stressed Situation Of Canadian’s Natural Gas Market In Order To Make Profits

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It is the first time in ages that William Companies Inc (NYSE:WMB) has seen this opportunity to build a support infrastructure for the super cycle of natural gas industry.  However, the cycle is not moving as predicted, for the supply in a lot of regions is far greater than the demand. That said, it is no doubt creating some unique opportunities for the suppliers to capture some value while they are disconnected from the market.

William Companies sees a great opportunity in the region of Canada. The supply of propane gas is in excess in that particular country, thus bringing the selling price to quite low levels. Let’s have a look as to how the company will be extracting profits from such a distressed situation.

The chief financial officer of William Companies Inc (NYSE:WMB), Don Chappel, in a recent earnings call meeting, went over the growth opportunity that the company had witnessed over that horizon. While doing so, the CFO mentioned that the company will be looking forward to starting its operations in the country of Canada; for the company has a strategic asset holding there that it wants to explore.

The CFO further mentioned that operations in Canada would include Olefins Pipeline, NGL and gas processing activities from the region of Edmonton market to Fort McMurray. William Companies Inc (NYSE:WMB) has already sealed a contract with Nova over the sales of ethane. It is important to mention here that the contract is of long-term nature, and it provides the company some upside.

William Companies Inc (NYSE:WMB) has a huge asset base, and Canada is not a very significant part of that base. However, the company still expects to gain some opportunities in order to leverage its footprints and to exploit the prospects available in the Canadian market. The company plans on building a PDH (Propane Dehydrogenation) facility there.

The chief financial officer mentioned that the country of Canada is under great stress due to the excess supply of propane. William Companies Inc (NYSE:WMB) plans to take advantage of that situation and build a PDH facility in order to refine the gas and turn it into a high value product, thus making lots of profits.

William Companies Inc (NYSE:WMB) is planning on exploiting the disconnect that exists between the average price of propane and the high value natural gas products in the country of Canada. For this purpose, William Companies is looking for a partner in the Canadian region. Market experts are of the view that the company can gain a lot if it plays its cards right.

Coming to the stock price of William Companies Inc (NYSE:WMB), the company, during the last trading session of December 23, 2014, started its stocks at a price of $45.98 and closed at a price of $45.73, after hitting the highest price of $46.06. The company’s total market capitalization stands at a value of $33.5 billion.

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