Midstream Outshines Upstream: Why Williams Beats Oxy in September

Williams Companies (WMB) is a steady midstream pipeline stock that's more reliable than upstream oil and gas companies like Occidental Petroleum (OXY). This is because midstream companies build pipelines that transport crude oil, natural gas, and other resources, generating stable profits and cash flows regardless of commodity prices.

Williams has a forward dividend yield of 2.8%, higher than Oxy's 1.9%, but lower than many other midstream companies. The company is also growing faster than its industry peers because it's more exposed to the cloud and AI markets, primarily delivering natural gas through its Transco pipelines.

Williams' focus on natural gas and behind-the-meter (BTM) systems makes it a great infrastructure play for the AI boom. Its BTM systems provide hyperscalers with a steady supply of natural gas that bypasses utility company bottlenecks, making it an attractive investment in September.