Why Williams Companies Stock Slumped 12% in July
Shares of Williams Companies (NYSE: WMB) declined by 12.2% in July, according to data provided by S&P Global Market Intelligence. Weaker natural gas prices weighed on the company last month.
The price of natural gas tumbled to a three-year low in late July. That slump came even though gas demand from power plants surged as they generated record amounts of electricity to power air conditioners amid the summer heat. Those weaker gas prices led analysts to believe that drillers will slow their growth rate in places like the Marcellus Shale.
Those lower prices won't directly impact Williams Companies since it has minimal direct exposure to commodity prices. However, it could result in less volume flowing through its gathering systems in that region if drillers slow their pace. That potential slowdown put pressure on its stock last month.
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