Natural Gas Ideas for Your Retirement Account Part 1

|
 |  Includes: CLNE, CRR, EPB, EPD, ETP, LNG, MDU, SE, SRE, SUG, WMB, XEC, XOM
by: Robert Weinstein

With oil prices persistently staying above $100 a barrel combined with relatively abundant and less expensive natural gas, could we be on the verge of transitioning large amounts of consumption from oil to natural gas? For Americans, it would appear to be in everyone's best interest to encourage the growth of consumption in natural gas at the expense of lowering oil and oil-related product consumption. Can an increase in natural gas use spell profits for related companies, and are any of these companies worth putting into a retirement account? We will take a look at a few selected natural gas-related companies and see if they might be a good fit

This is the next article in my series about stocks that may be appropriate for retirement investing. You may see my previous retirement related articles here, here, and here. I use a proprietary blend of technical analysis, financial crowd behavior, and fundamentals in my retirement account investments. The last component for entry is the ability to sell put options at or near the offer price. I want the best of it when I enter into a trade, and I will not start out by paying a spread unless it is less than five cents and/or < 1% of the option premium.

To do well in the market, you should know the stocks you track inside and out. After all, every journey begins with a single step, so let us start by considering some interesting companies, which will give you a starting point for possible stocks that you might buy for your retirement accounts. For selection as a long-term hold in my own retirement accounts, a stock should exhibit the following characteristics:

  • A dividend yield higher than I can earn in a bank account.
  • Rising revenue year-over-year.
  • Rising earnings year-over-year.
  • Rising EBITDA year-over-year.
  • Option trading available for the lowest risk entry possible.

I have searched for producers, pipelines that move the gas, in addition to some ETFs that provide different ways to diversify exposure. The list is in no particular order as they all live and die by natural gas. The list has been screened volume traded and for market cap in order to avoid the more volatile stocks.

Enterprise Products Partners LP (EPD) is a $34.99 billion market cap company. Enterprise Products Partners L.P. provides a range of services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, refined products, and petrochemicals in the continental United States, Canada, and Gulf of Mexico. The company’s NGL Pipelines & Services segment engages in natural gas processing and related NGL marketing activities Click to enlargeEnterprise Products Partners L.P. was founded in 1968 and is based in Houston, Texas. EPD reported 4th quarter 2010 earnings of $0.35 per share on 2/17/11. The next reporting quarter estimated mean earnings are $0.44 per share. The low estimate is $0.38 and the high is $0.47 per share. The current trailing twelve months P/E ratio is 35.85 (ttm) and the forward P/E ratio is 19.82. The last thing I think is important to look at is what options have the highest volume and offer the best opportunity. If everything else matches up as needed, I will be looking to short put options expiring in June at a strike price of $40, for a price of $0.80 or better.

Growth Rates % Company Industry S&P 500
Sales (quarter vs year ago quarter) 14.10 69.50 11.90
Net Income (YTD vs YTD) 73.60 9.40 20.50
Net Income (quarter vs year ago quarter) 108.10 -3.20 58.20
Sales (5-Year Annual Avg.) 22.45 14.20 7.93
Net Income (5-Year Annual Avg.) -1.88 5.02 8.00
Dividends (5-Year Annual Avg.) 6.88 10.65 5.26
Click to enlarge

Click to enlarge

  • Rising revenue year-over-year? Yes, $33.73 for 2010 vs. $25.51 billion for 2009.
  • Rising earnings year-over-year? Yes, $320.8 million for 2010 vs. $204.1 million for 2009.
  • Rising EBITDA year-over-year? Yes, $1.4 billion for 2010 vs. $1.16 billion for 2009.
  • A dividend yield higher than I can earn in a bank account? Yes, $2.39 is a current yield of 5.89%.
  • Option trading available for the lowest risk entry possible? Yes.

CARBO Ceramics Inc. (CRR) is a $3.43 billion market cap company. CARBO Ceramics Inc. manufactures and supplies ceramic proppants primarily used in the hydraulic fracturing of natural gas and oil wells in the United States and internationally. The company offers five ceramic proppants, including CARBOHSP and CARBOPROP designed for use in deep gas wells; CARBOLITE used in medium depth oil and gas wells; CARBOECONOPROP, a lightweight ceramic proppants; and CARBOHYDROPROP used to improve performance in slickwater fracture treatments.Click to enlargeThe company was founded in 1987 and is headquartered in Houston, Texas. CRR reported 1st quarter 2011 earnings of $1.30 per share on 4/28/11. The next reporting quarter estimated mean earnings are $1.20 per share. The low estimate is $0.99 and the high is $1.34 per share. The current trailing twelve months P/E ratio is 43.50 (ttm) and the forward P/E ratio is 22.68. The last thing I think is important to look at is what options have the highest volume and offer the best opportunity. If everything else matches up as needed, I will be looking to short put options expiring in June at a strike price of $140, for a price of $2.40 or better.

Growth Rates % Company Industry S&P 500
Sales (Quarter vs. year ago quarter) 22.20 111.00 11.90
Net Income (YTDvs.YTD) -20.10 27.50 20.50
Net Income (Quarter vs. year ago quarter) 59.80 48.40 58.20
Sales (5-Year Annual Avg.) 13.36 14.20 7.93
Net Income (5-Year Annual Avg.) 10.91 9.29 8.00
Click to enlarge
  • Rising revenue year-over-year? Yes, $473.08 for 2010 vs. $341.87 billion for 2009.
  • Rising earnings year-over-year? Yes, $78.72 million for 2010 vs. $52.81 million for 2009.
  • Rising EBITDA year-over-year? Yes, $119.35 million for 2010 vs. $79.79 million for 2009.
  • A dividend yield higher than I can earn in a bank account? No, $0.80 is a current yield of 0.54%.
  • Option trading available for the lowest risk entry possible? Yes.

Cheniere Energy, Inc. (LNG) is a $537.8 million market cap company. Cheniere Energy, Inc., through its subsidiaries, engages in the development, construction, ownership, and operation of onshore liquefied natural gas (NYSEMKT:LNG) receiving terminals and natural gas pipelines in the Gulf Coast of the United States.Click to enlargeThe company was founded in 1983 and is based in Houston, Texas. LNG reported 1st quarter 2011 earnings of $-0.60 per share on 5/6/11. The next reporting quarter estimated mean earnings are $-0.87 per share. The low estimate is $-0.87 and the high is $-0.87 per share. The current trailing twelve months P/E ratio is N/A (ttm) and the forward P/E ratio is N/A.

Growth Rates % Company Industry S&P 500
Sales (Quarter vs. year ago quarter) -11.80 31.70 11.90
Net Income (YTD vs.YTD) NA 33.50 20.50
Net Income (Quarter vs. year ago quarter) -271.30 2.80 58.20
Sales (5-Year Annual Avg.) 149.67 14.67 7.93
Net Income (5-Year Annual Avg.) NA 9.02 8.00
Dividends (5-Year Annual Avg.) NA 4.29 5.26
Click to enlarge

Click to enlarge

  • Rising revenue year-over-year? Yes, $291.51 for 2010 vs. $181.13 million for 2009.
  • Rising earnings year-over-year? Yes, $-76.2 million for 2010 vs. $-161.49 million for 2009.
  • Rising EBITDA year-over-year? Yes, $-78.39 million for 2010 vs. $-167.66 million for 2009.
  • A dividend yield higher than I can earn in a bank account? No, $0 is a current yield of 0%.
  • Option trading available for the lowest risk entry possible? Yes.

Spectra Energy Corp. (SE) is a $18.16 billion market cap company. Spectra Energy Corp, through its subsidiaries and equity affiliates, engages in the ownership and operation of a portfolio of complementary natural gas-related energy assets. The company operates in four segments: U.S. Transmission, Distribution, Western Canada Transmission and Processing, and Field Services.Click to enlargeSpectra Energy Corp. is headquartered in Houston, Texas. Spectra Energy Corp. operates independently of Duke Energy Corp. as of January 2, 2007. SE reported 1st quarter 2011 earnings of $0.54 per share on 5/3/11. The next reporting quarter estimated mean earnings are $0.38 per share. The low estimate is $0.3 and the high is $0.45 per share. The current trailing twelve months P/E ratio is 17.41 (ttm) and the forward P/E ratio is 15.06. The last thing I think is important to look at is what options have the highest volume and offer the best opportunity. If everything else matches up as needed, I will be looking to short put options expiring in June at a strike price of $25, for a price of $0.20 or better.

Growth Rates %

Company Industry S&P 500
Sales (quarter vs year ago quarter) 8.90 9.40 11.90
Net Income (YTD vs YTD) -48.80 1.80 20.50
Net Income (quarter vs year ago quarter) 2.30 133.50 58.20
Sales (5-Year Annual Avg.) -12.16 9.44 7.93
Net Income (5-Year Annual Avg.) -5.84 8.07 8.00

Dividends (5-Year Annual Avg.)

NA 3.61 5.26
Click to enlarge
  • Rising revenue year-over-year? Yes, $4.78 for 2010 vs. $4.4 billion for 2009.
  • Rising earnings year-over-year? Yes, $1.04 million for 2010 vs. $.843 million for 2009.
  • Rising EBITDA year-over-year? Yes, $1.5 million for 2010 vs. $1.27 million for 2009.
  • A dividend yield higher than I can earn in a bank account? Yes, $1.04 is a current yield of 3.76%.
  • Option trading available for the lowest risk entry possible? Yes.

Clean Energy Fuels Corp. (CLNE) is a $1.08 billion market cap company. Clean Energy Fuels Corp., together with its subsidiaries, provides natural gas as an alternative fuel for vehicle fleets in the United States and Canada. It designs, builds, finances, and operates fueling stations; and supplies compressed and liquefied natural gas. The company was incorporated in 2001 and is headquartered in Seal Beach, California. CLNE reported 4th quarter 2010 earnings of $0.18 per share on 3/10/11. The next reporting quarter estimated mean earnings are $-0.09 per share. The low estimate is $-0.11 and the high is $-0.06 per share. The current trailing twelve months P/E ratio is N/A (ttm) and the forward P/E ratio is 77.15.

Growth Rates % Company Industry S&P 500
Sales (Quarter vs. year ago quarter) 97.00 9.90 11.90
Net Income (YTD vs.YTD) NA -2.50 20.50
Net Income (Quarter vs. year ago quarter) 818.90 -19.10 58.20
Sales (5-Year Annual Avg.) 22.13 6.21 7.93
Net Income (5-Year Annual Avg.) NA 4.01 8.00
Dividends (5-Year Annual Avg.) NA 6.04 5.26
Click to enlarge
  • Rising revenue year-over-year? Yes, $211.83 for 2010 vs. $131.5 million for 2009.
  • Rising earnings year-over-year? Yes, $-2.51 million for 2010 vs. $-33.25 million for 2009.
  • Rising EBITDA year-over-year? Yes, $-4.21 million for 2010 vs. $-33.38 million for 2009.
  • A dividend yield higher than I can earn in a bank account? No, $0 is a current yield of 0%.
  • Option trading available for the lowest risk entry possible? Yes.

Sempra Energy (SRE) is a $13.18 billion market cap company. Sempra Energy, together with its subsidiaries, engages in the development of energy infrastructure, operation of utilities, and provision of energy-related products and services worldwide. It operates through two divisions, Sempra Utilities and

Sempra Global.Click to enlargeThe company was founded in 1998 and is headquartered in San Diego, California. SRE reported 4th quarter 2010 earnings of $1.18 per share on 2/24/11. The next reporting quarter estimated mean earnings are $0.99 per share. The low estimate is $0.99 and the high is $0.99 per share. The current trailing twelve months P/E ratio is 18.40 (ttm) and the forward P/E ratio is 12.21. The last thing I think is important to look at is what options have the highest volume and offer the best opportunity. If everything else matches up as needed, I will be looking to short put options expiring in June at a strike price of $52.50, for a price of $0.60 or better.

Growth Rates % Company Industry S&P 500
Sales (Quarter vs. year ago quarter) -4.50 9.90 11.90
Net Income (YTD vs.YTD) -34.00 -2.50 20.50
Net Income (Quarter vs. year ago quarter) -2.80 -19.10 58.20
Sales (5-Year Annual Avg.) -4.80 6.21 7.93
Net Income (5-Year Annual Avg.) -4.14 4.01 8.00
Dividends (5-Year Annual Avg.) 6.10 6.04 5.26
Click to enlarge
  • Rising revenue year-over-year? Yes, $9.0 for 2010 vs. $8.1 billion for 2009.
  • Rising earnings year-over-year? No, $749 million for 2010 vs. $1129 million for 2009.
  • Rising EBITDA year-over-year? No, $786 million for 2010 vs. $1476 million for 2009.
  • A dividend yield higher than I can earn in a bank account? Yes, $1.92 is a current yield of 3.53%.
  • Option trading available for the lowest risk entry possible? Yes.

El Paso Pipeline Partners, L.P. (EPB) is a $6.39 billion market cap company. El Paso Pipeline Partners, L.P. engages in the ownership and operation of natural gas transportation pipelines and storage assets in the United States. The company holds a 100% interest in Wyoming Interstate Company, Ltd. (WIC), an interstate pipeline transportation company located in Wyoming, Utah, and Colorado. It operates approximately 800-mile WIC interstate natural gas pipeline system with a design capacity of approximately 3.5 billion cubic feet per day.Click to enlargeThe company was founded in 2007 and is based in Houston, Texas. El Paso Pipeline Partners, L.P. is a subsidiary of El Paso Pipeline LP Holdings, L.L.C. EPB reported 1st quarter 2011 earnings of $0.57 per share on 5/5/11. The next reporting quarter estimated mean earnings are $0.55 per share. The low estimate is $0.46 and the high is $0.85 per share. The current trailing twelve months P/E ratio is 14.29 (ttm) and the forward P/E ratio is 14.8. The last thing I think is important to look at is what options have the highest volume and offer the best opportunity. If everything else matches up as needed, I will be looking to short options expiring in June at a strike price of $35, for a price of $0.70 or better.

Growth Rates %

Company Industry S&P 500
Sales (quarter vs year ago quarter) 12.30 9.40 11.90
Net Income (YTD vs YTD) 190.70 1.80 20.50
Net Income (quarter vs year ago quarter) 42.90 133.50 58.20
Sales (5-Year Annual Avg.) 75.38 9.44 7.93
Net Income (5-Year Annual Avg.) 49.29 8.07 8.00
Dividends (5-Year Annual Avg.) NA 3.61 5.26
Click to enlarge

Click to enlarge

  • Rising revenue year-over-year? Yes, $1.34 for 2010 vs. $1.11 billion for 2009.
  • Rising earnings year-over-year? Yes, $378.5 million for 2010 vs. $317.6 million for 2009.
  • Rising EBITDA year-over-year? Yes, $607.5 million for 2010 vs. $518.4 million for 2009.
  • A dividend yield higher than I can earn in a bank account? Yes, $1.84 is a current yield of 5.24%.
  • Option trading available for the lowest risk entry possible? Yes.

Energy Transfer Partners L.P. (ETP) is a $9.79 billion market cap company. Energy Transfer Partners, L.P. engages in the natural gas midstream, and intrastate transportation and storage businesses in the United States. The company’s Midstream segment focuses on the gathering, compression, treating, blending, processing, and marketing of natural gas in the Austin Chalk trend and Eagle Ford Shale in South and Southeast Texas;Click to enlargeEnergy Transfer Partners, L.P. was founded in 2002 and is based in Dallas, Texas. ETP reported 1st quarter 2011 earnings of $0.70 per share on 5/4/11 The next reporting quarter estimated mean earnings are $0.34 per share. The low estimate is $0.16 and the high is $0.50 per share. The current trailing twelve months P/E ratio is 42.51 (ttm) and the forward P/E ratio is 17.75. The last thing I think is important to look at is what options have the highest volume and offer the best opportunity. If everything else matches up as needed, I will be looking to short options expiring in June at a strike price of $50, for a price of $1.05 or better.

Growth Rates % Company Industry S&P 500
Sales (quarter vs year ago quarter) -3.40 9.40 11.90
Net Income (YTD vs YTD) -43.00 1.80 20.50
Net Income (quarter vs year ago quarter) -22.70 133.50 58.20
Sales (5-Year Annual Avg.) NA 9.44 7.93
Net Income (5-Year Annual Avg.) NA 8.07 8.00
Dividends (5-Year Annual Avg.) NA 3.61 5.26
Click to enlarge

Click to enlarge

  • Rising revenue year-over-year? Yes, $5.77 for 2010 vs. $5.3 billion for 2009.
  • Rising earnings year-over-year? No, $617.22 million for 2010 vs. $791.54 million for 2009.
  • Rising EBITDA year-over-year? No, $632.76 million for 2010 vs. $804.32 million for 2009.
  • A dividend yield higher than I can earn in a bank account? Yes, $3.57 is a current yield of 7.17%.
  • Option trading available for the lowest risk entry possible? Yes.

MDU Resources Group Inc. (MDU) is a $4.36 billion market cap company. MDU Resources Group Inc. operates as a natural resource company in the United States. The company provides electric retail, natural gas distribution, and natural gas transportation services. As of December 31, 2009, it served approximately 122,000 residential, commercial, industrial, and municipal electric customers in 177 communities; and approximately 829,000 residential, commercial, and industrial natural gas customers in 333 communities, as well as had approximately 17,000 miles distribution systems.Click to enlargeThe company was founded in 1924 and is based in Bismarck, North Dakota. MDU reported 1st quarter 2011 earnings of $0.22 per share on 5/2/11. The next reporting quarter estimated mean earnings are $0.25 per share. The low estimate is $0.23 and the high is $0.28 per share. The current trailing twelve months P/E ratio is 18.15 (ttm) and the forward P/E ratio is 15.50. The last thing I think is important to look at is what options have the highest volume and offer the best opportunity. If everything else matches up as needed, I will be looking to short put options expiring in July at a strike price of $20, for a price of $0.45 or better.

Growth Rates % Company Industry S&P 500
Sales (quarter vs year ago quarter) 8.00 11.90 11.90
Net Income (YTD vs YTD) NA -1.90 20.50
Net Income (quarter vs year ago quarter) 1.70 108.80 58.20
Sales (5-Year Annual Avg.) 2.81 1.26 7.93
Net Income (5-Year Annual Avg.) -1.66 -0.66 8.00
Dividends (5-Year Annual Avg.) 5.18 0.58 5.26
Click to enlarge

Click to enlarge

  • Rising revenue year-over-year? No, $3.9 for 2010 vs. $4.1 billion for 2009.
  • Rising earnings year-over-year? Yes, $244.02 million for 2010 vs. $-123.27 million for 2009.
  • Rising EBITDA year-over-year? Yes, $366.55 million for 2010 vs. $-219.37 million for 2009.
  • A dividend yield higher than I can earn in a bank account? Yes, $0.65 is a current yield of 2.83%.
  • Option trading available for the lowest risk entry possible? Yes.

Southern Union Co. (SUG) is a $3.54 billion market cap company. Southern Union Company, together with its subsidiaries, engages in the gathering, processing, transportation, storage, and distribution of natural gas in the United States. It operates in three segments: Transportation and Storage, Gathering and Processing, and Distribution.Click to enlargeThe company was founded in 1932 and is based in Houston, Texas. SUG reported 4th quarter 2010 earnings of $0.53 per share on 2/25/11. The next reporting quarter estimated mean earnings are $0.50 per share. The low estimate is $0.47 and the high is $0.55 per share. The current trailing twelve months P/E ratio is 6.44 (ttm) and the forward P/E ratio is 13.63. The last thing I think is important to look at is what options have the highest volume and offer the best opportunity. If everything else matches up as needed, I will be looking to short options expiring in June at a strike price of $25, for a price of $1.00 or better.

Growth Rates % Company Industry S&P 500
Sales (quarter vs year ago quarter) 11.00 9.90 11.90
Net Income (YTD vs YTD) 39.00 -2.50 20.50
Net Income (quarter vs year ago quarter) 45.20 -19.10 58.20
Sales (5-Year Annual Avg.) 14.47 6.21 7.93
Net Income (5-Year Annual Avg.) 11.85 4.01 8.00
Dividends (5-Year Annual Avg.) NA 6.04 5.26
Click to enlarge

Click to enlarge

  • Rising revenue year-over-year? Yes, $2.48 for 2010 vs. $2.17 billion for 2009.
  • Rising earnings year-over-year? Yes, $242.65 million for 2010 vs. $179.58 million for 2009.
  • Rising EBITDA year-over-year? Yes, $349.68 million for 2010 vs. $251.48 million for 2009.
  • A dividend yield higher than I can earn in a bank account? Yes, $0.60 is a current yield of 2.14%.
  • Option trading available for the lowest risk entry possible? Yes.

Exxon Mobil Corporation (XOM) is a $410.03 billion market cap company. Exxon Mobil Corporation engages in the exploration and production of crude oil and natural gas, and manufacture of petroleum products, as well as transportation and sale of crude oil, natural gas, and petroleum products.Click to enlargeExxon Mobil Corporation was founded in 1870 and is based in Irving, Texas. XOM reported 1st quarter 2011 earnings of $2.14 per share on 4/28/11. The next reporting quarter estimated mean earnings are $2.23 per share. The low estimate is $1.62 and the high is $2.64 per share. The current trailing twelve months P/E ratio is 11.78 (ttm) and the forward P/E ratio is 9.23. The last thing I think is important to look at is what options have the highest volume and offer the best opportunity. If everything else matches up as needed, I will be looking to short options expiring in June at a strike price of $80, for a price of $1.53 or better.

Growth Rates % Company Industry S&P 500
Sales (quarter vs year ago quarter) 17.10 23.00 11.90
Net Income (YTD vs YTD) 58.00 95.60 20.50
Net Income (quarter vs year ago quarter) 52.90 32.50 58.20
Sales (5-Year Annual Avg.) 0.67 7.50 7.93
Net Income (5-Year Annual Avg.) -3.36 1.53 8.00
Dividends (5-Year Annual Avg.) 8.83 8.32 5.26
Click to enlarge

Click to enlarge

  • Rising revenue year-over-year? Yes, $370.12 for 2010 vs. $01.5 billion for 2009.
  • Rising earnings year-over-year? Yes, $30.46 million for 2010 vs. $19.28 million for 2009.
  • Rising EBITDA year-over-year? Yes, $52.95 billion for 2010 vs. $34.7 billion for 2009.
  • A dividend yield higher than I can earn in a bank account? Yes, $1.88 is a current yield of 2.27%.
  • Option trading available for the lowest risk entry possible? Yes.

Cimarex Energy Co. (XEC) is a $8.15 billion market cap company. Cimarex Energy Co. operates as an oil and gas exploration and production company. The company has operations primarily in the Mid-Continent region, which consists of Oklahoma, the Texas Panhandle, and southwest Kansas; the Permian Basin encompassing west Texas and southeast New Mexico; Gulf Coast areas of southeast Texas and offshore Louisiana; and Wyoming.Click to enlargeThe company was founded in 2002 and is headquartered in Denver, Colorado. Cimarex Energy Co. operates independently of Helmerich & Payne Inc. as of September 30, 2002. XEC reported 1st quarter2011 earnings of $1.52 per share on 5/6/11. The next reporting quarter estimated mean earnings are $1.74 per share. The low estimate is $1.51 and the high is $2.15 per share. The current trailing twelve months P/E ratio is 14.22 (ttm) and the forward P/E ratio is 10.89. The last thing I think is important to look at is what options have the highest volume and offer the best opportunity. If everything else matches up as needed, I will be looking to short options expiring in June at a strike price of $90, for a price of $2.75 or better.

Growth Rates % Company Industry S&P 500
Sales (quarter vs year ago quarter) 24.10 69.50 11.90
Net Income (YTD vs YTD) NA 9.40 20.50
Net Income (quarter vs year ago quarter) 11.30 -3.20 58.20
Sales (5-Year Annual Avg.) 7.60 14.20 7.93
Net Income (5-Year Annual Avg.) 10.77 5.02 8.00
Dividends (5-Year Annual Avg.) NA 10.65 5.26
Click to enlarge

Click to enlarge

  • Rising revenue year-over-year? Yes, $1.61 for 2010 vs. $1.0 billion for 2009.
  • Rising earnings year-over-year? Yes, $574.70 million for 2010 vs. $-311.94 million for 2009.
  • Rising EBITDA year-over-year? No, $913.73 million for 2010 vs. $1451.65 million for 2009.
  • A dividend yield higher than I can earn in a bank account? No, $0.40 is a current yield of 0.41%.
  • Option trading available for the lowest risk entry possible? Yes.

Williams Companies, Inc. (WMB) is a $18.08 billion market cap company. The Williams Companies, Inc., through its subsidiaries, engages in finding, producing, gathering, processing, and transporting natural gas primarily in the United States. The company’s Williams Partners segment owns and operates a 10,000-mile natural gas pipeline system extending from Texas, Louisiana, Mississippi, and the offshore Gulf of Mexico through Alabama, Georgia, South Carolina, North Carolina, Virginia, Maryland, Pennsylvania, and New Jersey to the New York City metropolitan area.Click to enlargeThe Williams Companies, Inc. was founded in 1908 and is based in Tulsa, Oklahoma. WMB reported 1st quarter 2011 earnings of $0.36 per share on 5/4/11. The next reporting quarter estimated mean earnings are $0.36 per share. The low estimate is $0.20 and the high is $0.44 per share. The current trailing twelve months P/E ratio is N/A (ttm) and the forward P/E ratio is 17.94.

Growth Rates % Company Industry S&P 500
Sales (quarter vs year ago quarter) 4.20 9.40 11.90
Net Income (YTD vs YTD) NA 1.80 20.50
Net Income (quarter vs year ago quarter) 71.60 133.50 58.20
Sales (5-Year Annual Avg.) -0.34 9.44 7.93
Net Income (5-Year Annual Avg.) NA 8.07 8.00
Dividends (5-Year Annual Avg.) 14.17 3.61 5.26
Click to enlarge

Click to enlarge

  • Rising revenue year-over-year? Yes, $9.75 for 2010 vs. $8.28 billion for 2009.
  • Rising earnings year-over-year? No, $-1091 million for 2010 vs. $438 million for 2009.
  • Rising EBITDA year-over-year? No, $-946 million for 2010 vs. $943 million for 2009.
  • A dividend yield higher than I can earn in a bank account? Yes, $0.80 is a current yield of 2.6%.
  • Option trading available for the lowest risk entry possible? Yes.

Click here for part 2.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.