“Midstream pipeline companies are in vogue. They are in line with what the market wants,” said Dollarhide, CEO of Longbow Asset Management Co. in Tulsa. “Many funds that invest in energy have replaced exploration and production companies with pipeline companies because
Williams has identified $25 billion worth of investment opportunities through 2017, he said.
The company already has pipeline and gathering system investments in many of the largest oil and natural gas production areas in the country, including the Bakken in North Dakota and the Marcellus in the Pennsylvania area.
The company announced in September that it has signed a long-term natural gas processing agreement with a producer in Canada's oil sands.
The focus on pipeline infrastructure also makes Williams less affected by volatile fuel prices.
“Today, we're more exposed to volume than price,” Armstrong said. “Whether gas prices go up or down, we don't really care as long as the volume moves. Almost all of the investments we're making today are investments away from price risk.”