Quick Win By The Algorithm: Rising Commodity and Consolidation Benefits WPZ

Quick Win By The Algorithm

On April 3, 2016, the I Know First algorithm had predicted a bullish forecast for Williams Parterns L.P. (WPZ). WPZ had a signal of 285.78 and a predictability of 0.71. Therefore, in accordance with the Quick Win By the Algorithm, the company reported gain of 128.70% in just 1 year.

quick win

Williams Partners L.P. operates as an energy infrastructure company. It operates through Central, Northeast G&P, Atlantic-Gulf, West, and Natural Gas Liquids (NGL) & Petchem Services segments. The Central segment provides gathering, treating, and compression services to producers in the Barnett shale region, the Eagle Ford shale region, the Haynesville shale region, and the Mid-Continent region. The Northeast G&P; segment engages in the natural gas gathering and processing. The Atlantic-Gulf segment engages in the interstate natural gas pipeline, natural gas gathering and processing, and crude oil production handling and transportation activities in the Gulf Coast region. The West segment engages in the natural gas gathering, processing, and treating operations. The company was founded in 2005 and is based in Tulsa, Oklahoma. Williams Partners L.P. operates as a subsidiary of Williams Companies, Inc.

quick win

Among the reasons WPZ stock has increased impressively are the rise in natural gas price. During the forecasts time period, the commodity price increased by over 50%.  The rise in commodity price helped contribute to a rise in revenue.  The company’s net income improved from positing a loss of $40 million by the end of its second quarter in the year of 2016 to $145 million in profit by the end of its fourth quarter for the same year.

In addition to favorable economic activity related to the commodity, WPZ is also operating its Geismar plant at a higher production level, thus increasing its market share in the industry.  Moreover, WPZ completed its Gulfstar One expansion project in the eastern deepwater Gulf of Mexico.

Furthermore, the company also sold its subsidiaries conducting operations in Canada on September 2016. With the sale of its operations in Canada and restructuring its contracts in the Barnett Shale and Mid-Continent region, the company improved its financial holding.  As a result, the company received over $800 million from renegotiating the contracts alone. In conclusion, these factors helped contribute to the stock’s rise.

This bullish forecast on WPZ was sent to the current i Know First subscribers on April 3, 2016.

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