02:47 PM EST, 03/04/2025 (MT Newswires) -- Williams' (WMB) latest power generation-related project could be the first of many similar projects that can contribute to long-term growth for the company, RBC Capital Markets said in a Tuesday note.

Williams said in a regulatory filing late Monday it struck an agreement with an undisclosed investment-grade company to provide onsite natural gas and power infrastructure, backed by a 10-year power purchase agreement. The company expects startup in H2 2026 and a total project cost of $1.6 billion.

RBC analysts also mentioned other projects including the $325 million bolt-on acquisition of DJ Basin gathering and processing assets, a $307 million consolidation of its Wamsutter joint venture interests, and two Northwest pipeline projects set to operate in Q4 2026 and Q4 2028, respectively.

The analysts said they were increasing their estimates for the company's adjusted EBITDA and adjusted funds from operations for 2025 and 2026. They also increased the company's price target on higher earnings estimates and outlook for longer-term growth, partially offset by higher capital expenditure estimates.

RBC reiterated its outperform rating on the company's stock and increased the price target to $63 from $62.

Price: 57.21, Change: -0.39, Percent Change: -0.68