Oil & Gas Stock Roundup: WMB's AI Power Push, Eni's FLNG Lead

It was a week when oil prices fell to their lowest in four months, while natural gas continued to climb.  Headlines this week were dominated by The Williams Companies WMB announcing multi-billion-dollar investments in two power projects, while Italy’s Eni S.p.A E approved a new floating LNG unit. Updates from Transocean RIG and GeoPark GPRK also drew investor interest.Overall, it was a mixed seven-day period for the sector. West Texas Intermediate (WTI) crude futures decreased 7.4% to close at $60.88 per barrel, but natural gas prices gained some 3.7% to end at $3.324 per million British thermal units (MMBtu).The drop in oil realization could be attributed to growing concerns about a global economic slowdown and potential oversupply, as investors weigh weaker demand prospects against the possible disruptions in Russian supply. Meanwhile, the natural gas prices rose due to a small weekly build, combined with firm LNG demand and steady industrial use.Recap of the Week’s Most Important Stories1.    Energy infrastructure provider The Williams Companies has announced plans to invest about $3.1 billion in two power projects designed to support the surging energy needs of U.S. data centers. With this move, the total capital dedicated to “power innovation” initiatives is now $5 billion. The projects underscore the company’s strategy to align with the exponential rise in demand for electricity fueled by artificial intelligence technologies.Williams recently diversified into “power innovation projects,” with projects like Socrates in hand and upcoming behind-the-meter facilities targeting data centers and AI-driven demand. These projects will provide exposure to the surging digital economy while leveraging existing pipeline infrastructure. With potential gigawatt-scale projects targeted for 2027 and beyond, WMB is positioning itself at the intersection of energy and technology, creating additional high-return growth avenues beyond traditional midstream operations.The fixed-price projects are agreed upon for a period of 10 years, with an option to extend them for a few more years by the customer. Williams' business model is largely fee-based, with about 90% of its EBITDA derived from fixed contracts, which insulates it from commodity price swings. (Williams to Invest $3.1B in Power Projects for Data Centers)2.    Eni, an Italian integrated energy company, stated that it has reached a final investment decision (FID) alongside its partners to move forward with the Coral North floating liquefied natural gas (FLNG) platform in Mozambique. The project is being developed by a joint venture consisting of operator Eni, with a 50% stake; China National Petroleum Company, holding a 20% stake; and Korea Gas, ENH and XRG, each holding a 10% stake.The FLNG project will extract and produce gas from the northern part of the Area 4 Coral gas reservoir in the Rovuma Basin, offshore Mozambique. Gas production will be supported by an advanced floating LNG facility with a processing capacity of 3.6 million tons per annum (mtpa). The Coral North FLNG project is Eni’s second development in Mozambique, followed by Coral South. These two FLNG facilities are expected to take the total LNG production from Mozambique to more than 7 mtpa, positioning the country as the third-largest LNG producer in Africa.Eni mentioned that the Coral North project will leverage Mozambique’s significant gas resources and its strategic geographic location. The development of this project is expected to enhance the country’s contribution to global energy security and support its economic and industrial growth. The company will utilize the knowledge and experience gained from Coral South and apply it to the development of Coral North. This should help Eni fast-track the development of Coral North, optimizing costs and making the project more reliable and efficient. It should also reduce execution risks associated with the project. The company has targeted the delivery of this project by 2028. (Eni & Partners Greenlight Second FLNG Development in Mozambique)3.    Transocean, a leader in offshore drilling, has secured major new contracts for two of its ultra-deepwater drillships. These deals represent a key step forward in the company’s growth and operational stability, contributing an estimated $243 million to its backlog. These include a contract in the U.S. Gulf of America, with BP plc and another one in Brazil with Petrobras, highlighting RIG's strong position in the global offshore drilling market.  Transocean's deepwater drillship, the Deepwater Atlas, has secured a 365-day extension with BP, a London-based integrated oil and gas company, in the U.S. Gulf of America. This contract is a direct continuation of the previous firm agreement, which reflects the strong working relationship between the two companies. The extension is projected to contribute approximately $232 million in backlog, providing RIG with a steady revenue stream for the upcoming year. RIG's Deepwater Mykonos drillship has secured a 30-day option extension with Petrobras, a Brazilian company and one of the world's largest oil and gas producers. This contract extension is a direct continuation of the firm program and expected to contribute an additional $11 million to RIG's backlog. (Transocean Expands $243M Backlog With BP and Petrobras Deals)4.    GeoPark, an independent oil and gas firm with primary operations across Latin America, announced that it has signed an agreement with Pluspetrol S.A. to acquire the Loma Jarillosa Este and Puesto Silva Oeste blocks in the prolific Vaca Muerta shale in Argentina. Per the terms of the agreement, GeoPark will acquire a 100% working interest and assume operatorship of these blocks. The Zacks Rank #2 (Buy) company is focused on developing the black oil reserves in the Vaca Muerta shale, located in Neuquen Province, Argentina.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The deal is expected to strengthen GeoPark’s footprint in the Vaca Muerta shale, a prolific, world-class, unconventional oil and gas play in Latin America. The acquisition provides the company with more than 12,300 gross acres in the black oil window of Vaca Muerta. The acreage is estimated to hold recoverable resources of 60 million gross barrels of oil under long-term concessions of over 30 years. These blocks are currently producing approximately 1,700-2,000 barrels of oil equivalent per day (boe/d). The production from the blocks is anticipated to raise GPRK’s pro forma output to nearly 30,000 boe/d for 2025. The transaction involves a payment of $115 million, which GeoPark plans to finance using its available cash balance. Furthermore, GPRK paid a security deposit of $22.7 million on the day the two companies signed the agreement. The acquisition is expected to conclude before year-end 2025. (GeoPark to Acquire Vaca Muerta Assets from Pluspetrol for $115M)Price PerformanceThe following table shows the price movement of some major oil and gas players over the past week and during the last six months.Company    Last Week    Last 6 MonthsXOM             -3.4%              +13.8%CVX              -4.2%             +12.2%COP             -4.4%              +14%OXY             -5.5%              +24.8%SLB              -3.8%              +6.7%RIG              +5.8%              +56.2%VLO             -8.7%               +55.4%MPC            -2.8%               +60%With oil moving down for the week, stocks were mostly southbound. The Energy Select Sector SPDR — a popular benchmark for energy companies — slipped 3.4% last week. But over the past six months, the sector fund has climbed about 17.1%.What’s Next in the Energy World?Market participants will keep a close eye on regular data releases to gauge the direction of commodities. U.S. government statistics on oil and natural gas, one of the most reliable indicators, will be a key focus for energy traders. Fuel demand and stock drawdowns in the coming weeks will shape commodity price trends. Additionally, Baker Hughes' rig count data, a critical indicator of U.S. crude and natural gas production trends, is also closely monitored. Tariff-related developments will also be a key factor in determining price trends. Finally, there will be close attention on the potential effects of the continued U.S. government shutdown, as a prolonged closure could slow economic activity and weigh on overall energy demand.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Williams Companies, Inc. (The) (WMB): Free Stock Analysis Report Transocean Ltd. (RIG): Free Stock Analysis Report Eni SpA (E): Free Stock Analysis Report Geopark Ltd (GPRK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks