Williams Companies Files Lawsuit to Protect Pipeline Project

Core Viewpoint - The Williams Companies, Inc. (WMB) has initiated a lawsuit against Energy Transfer LP (ET) over alleged obstructions that have delayed WMB's Louisiana Energy Gateway (LEG) pipeline project, which is crucial for enhancing gas supply for future LNG export terminals [1][2] Group 1: Dispute Details - The LEG pipeline is designed to transport 1.8 billion cubic feet of gas per day and is significant for WMB's strategy to support upcoming LNG export terminals [2] - Energy Transfer has raised objections regarding the LEG pipeline crossing under its Tiger pipeline, citing concerns over excessive crossings, while WMB contends that these objections are more about market control than technical issues [2] - Energy Transfer attempted to persuade federal regulators to classify the LEG as an interstate transmission line, which would impose stricter regulations, but this request was denied by the Federal Energy Regulatory Commission in September 2024 [3] Group 2: Legal and Operational Implications - WMB's lawsuit aims to establish a precedent for cooperative practices within the pipeline industry, promoting healthy competition among companies [4] - Despite securing necessary permits and winning several legal battles, WMB has faced significant delays, pushing the in-service date of the LEG pipeline from late 2024 to the latter half of 2025 due to ongoing litigation [4] Group 3: Company Rankings and Alternatives - WMB currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook [5] - Investors may consider alternative stocks in the energy sector, such as Flotek Industries, Inc. (FTK) and Nine Energy Service, Inc. (NINE), both of which have better rankings with Zacks Rank 2 (Buy) [5] - Flotek Industries is projected to achieve a 125% year-over-year growth in earnings for 2024, while Nine Energy Service anticipates a 33.33% EPS growth rate for the current quarter, surpassing the industry growth rate of 9.93% [6][7]