Goldman Sachs Stays Positive on Gas Pipeline firms After Q3 Updates

 Natural gas pipeline companies are well placed, Goldman Sachs said, as third-quarter 2026 earnings updates showed utilities and large data-center operators are more willing to support gas projects.

The brokerage highlighted pipeline operators Williams Companies and TC Energy, both rated "buy".

Goldman expects Williams’ earnings before interest, taxes, depreciation and amortization (EBITDA) to grow about 12% a year from 2025 to 2030. 

That forecast reflects only modest new project wins, with projects already approved accounting for growth of about 11% a year, it said. Goldman continues to expect final investment decisions on power projects at WMB before year-end.

For TC Energy, Goldman cited a strong third-quarter update and a new power opportunity in Canada.

Goldman’s pipeline coverage has returned -5% over the past six months, versus -1% for AMZ.

It said the sector is less exposed to swings in overall gas demand growth and has a high share of contracted business, with little earnings from projects awaiting final approval in near- to medium-term estimates.

Progress toward permitting reform in Washington could also improve returns and lower execution risk, Goldman said.

Goldman flagged new risks to projects awaiting final approval after the recent elections, and a debate over the outlook for data center power growth.

The stocks began 2026 at relatively high valuations, it said.

Goldman also rates Kinder Morgan "buy" ahead of upcoming project announcements, and upgraded DT Midstream to "neutral" from "sell" after recent underperformance and a reset in 2030 EBITDA expectations.