- Cabot Oil & Gas (NYSE:COG) and Williams Cos. (NYSE:WMB) have sold off since late Thursday after the FERC said it would give landowners until Nov. 14 to comment on new route alternatives for parts of WMB's Atlantic Sunrise project in Pennsylvania.
- Both WMB and COG, a would-be shipper on the line, have dropped as the route evaluation raises questions about how soon the project would start, but several analysts see an opportunity to buy the shares on weakness.
- Piper Jaffray says long-term investors should buy COG on weakness, citing the quality of the company’s assets and ability to generate free cash flow.
- KeyBanc says a delay of a couple of months for the pipeline’s environmental impact statement should not be materially negative for COG.
- RBC Capital says a potential delay should be manageable since new routes involve less than two miles of pipe; the firm suggests buying WMB on weakness. since a short delay should not materially impact cash flow expectations.