Key Takeaways
- Williams Companies (WMB), a major pipeline operator, projects that liquefied natural gas (LNG) will account for over 25% of the U.S. gas market within the next decade, a significant increase from its current 15% share. The company also reported a substantial rise in its second-quarter profit.
- A group of minority creditors to Ardagh Group SA, the global packaging giant, is challenging a comprehensive restructuring deal that would see most debtholders assume control of the company from Irish billionaire Paul Coulson.
- U.S. Special Envoy Steve Witkoff is scheduled to meet with Russian leadership in Moscow on Wednesday, ahead of a U.S. deadline for Russia to demonstrate progress in ending the conflict in Ukraine or face increased sanctions.
- The United Nations has expressed deep alarm over reports of potential expanded Israeli military operations in Gaza, warning of further civilian casualties and destruction.
U.S. pipeline operator Williams Companies (WMB) is forecasting a significant expansion in the role of liquefied natural gas (LNG) in the domestic energy landscape. The company projects that LNG will grow to represent more than 25% of the U.S. gas market over the next ten years, up from approximately 15% currently. This outlook is supported by expectations of a doubling of U.S. LNG production within the same timeframe, according to CEO Chad Zamarin.
The positive outlook for LNG comes as Williams Companies (WMB) reported a strong second quarter. The company's profit surged to $546 million, or 45 cents per share, for the quarter ended June 30, an increase from $401 million, or 33 cents per share, in the same period last year. This rise in profitability was driven by higher service revenues, which climbed to $2.04 billion from $1.84 billion year-over-year, alongside gains from expansion projects. The company's Transcontinental Gas Pipe Line (Transco) system saw average daily transportation volumes increase to 14 million dekatherms (MMdth) of natural gas per day in the second quarter, up from 12.9 MMdth per day.
In corporate restructuring news, Ardagh Group SA, the parent company of Ardagh Metal Packaging (AMBP), faces opposition from a cohort of minority creditors regarding a recently agreed-upon restructuring deal. These payment-in-kind (PIK) bondholders are pushing back against the agreement, which would transfer control of the packaging company from current shareholder and Irish billionaire Paul Coulson to unsecured and PIK creditors.
The comprehensive recapitalization transaction aims to reduce Ardagh Group's $4.3 billion debt through a debt-for-equity swap and inject $1.5 billion in new capital. As part of the deal, Paul Coulson is set to exit the company with a $300 million payment. The transaction, anticipated to close by September 30, 2025, is expected to result in unsecured note (SUN) holders becoming majority shareholders with 92.5% equity, while PIK note holders will receive 7.5% equity. Notably, the recapitalization will not impact the public listing or capital structure of its subsidiary, Ardagh Metal Packaging (AMBP).
On the geopolitical front, U.S. Special Envoy Steve Witkoff is scheduled to visit Moscow on Wednesday to engage with Russian leadership. This meeting comes days before a Friday deadline set by U.S. President Donald Trump for Russia to demonstrate progress in de-escalating the war in Ukraine, or face the prospect of increased U.S. sanctions. President Trump has stated his desire for a "deal where people stop getting killed." The Kremlin has indicated its openness to discussions, describing potential talks with Witkoff as "important, substantive and very useful."
Meanwhile, the United Nations has voiced profound concern over recent reports indicating Israel's intentions to expand its military operations and prolong its presence in Gaza. A spokesperson for UN Secretary-General Antonio Guterres stated that such actions would "inevitably lead to countless more civilians killed and the further destruction of Gaza." The UN reiterated its call for an immediate and permanent ceasefire and the unconditional release of hostages, emphasizing that Gaza "is, and must remain, an integral part of a future Palestinian State." These warnings follow reports that Israel's Security Cabinet has approved an "operational plan" to "conquer Gaza and hold the territory under its control."
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.