Williams Wins Big in AI Infrastructure Buildout Over Energy Transfer

Energy Transfer and Williams Companies are two of the largest midstream companies in the US, transporting massive amounts of natural gas for powering data centers. While both companies benefit from the rapid growth of cloud infrastructure and AI markets, one has more exposure to the AI power build-out than the other.

Williams is a 'pure play' on natural gas, generating all its adjusted EBITDA from natural gas operations, whereas Energy Transfer's business is more diversified. Williams owns Transco, the largest natural gas pipeline system in the US, connecting the Gulf Coast to the Atlantic Seaboard and Northeast markets.

Williams transports about a third of all natural gas produced in the US, making it more of an AI infrastructure play than Energy Transfer. Williams trades at 14 times this year's adjusted EBITDA, while Energy Transfer looks cheaper at 7 times.