Williams Cos‘ Adjusted EPS for 1Q stood at 59c, which was higher than both last year’s 56c and the estimated 48c.
Revenue came in at $2.77 billion, a decline of 10% from last year, but it surpassed the estimate of $2.65 billion.
Adjusted Ebitda amounted to $1.93 billion, marking a 7.7% increase from last year and surpassing the $1.77 billion estimate.
The Adjusted Ebitda for Transmission & Gulf of Mexico was $839 million, reflecting a 15% increase from last year and exceeding the $810 million estimate.
The Northeast G&P Adjusted Ebitda stood at $504 million, a 7.2% increase from last year, surpassing the $478.4 million estimate.
West adjusted Ebitda amounted to $328 million, up 15% from last year, although slightly less than the $347.1 million estimate.
AFFO came in at $1.51 billion, reflecting a 4.3% year-over-year increase.
Capital expenditures amounted to $544 million, a slight 0.2% decrease from the prior year, but less than the estimated $633.3 million.
The strong 1Q performance leads to expectations that Adjusted EBITDA will be in the top half of its 2024 guidance range of $6.8 billion and $7.1 billion.
2024 growth capex is expected to be between $1.45 billion and $1.75 billion, with maintenance capex between $1.1 billion and $1.3 billion, inclusive of $350 million for emissions reduction and modernization initiatives.
Adjusted EBITDA for 2025 is projected to be between $7.2 billion and $7.6 billion, and growth capex between $1.65 billion and $1.95 billion, and maintenance capex between $750 million and $850 million, including $100 million for emissions reduction and modernization initiatives based on midpoint
The 8 percent rise in Adjusted EBITDA was due to the continued outperformance of transmission, storage, and gathering businesses, which delivered a 13 percent higher Adjusted EBITDA compared to last year.
Williams Cos on Smartkarma
On Smartkarma, independent analyst Baptista Research has provided insightful coverage on The Williams Companies Inc. Their report titled “6 Major Growth Drivers For Their Performance In 2024 & Beyond!” highlights the company’s strong performance in the third quarter of 2023. The report discusses significant advancements in operational execution, project completions, and positive expansion achievements. Despite a challenging environment with lower gas prices compared to the previous year, Williams Companies showed impressive growth, with the completion of the first half of Transco’s Regional Energy Access project boosting natural gas transportation.
In another report by Baptista Research titled “How They’re Thriving Despite Revenue Challenges!”, the analyst acknowledges Williams Companies’ ability to overcome hurdles. Although the recent quarter saw revenues below market expectations, the company outperformed in terms of earnings, showcasing resilience and strength. Despite facing challenges like lower natural gas prices impacting revenues, Williams Companies demonstrated notable growth in its core business segments, highlighting its ongoing success amidst industry challenges.
A look at Williams Cos Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 5 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Williams Cos, with a mixed bag of Smart Scores, presents an interesting long-term outlook. The company shines in areas of dividend and growth, boasting solid scores of 4 and 5 respectively. This suggests a promising future for investors looking for steady income and potential expansion. However, weaknesses in value and resilience, marked by scores of 3 and 2, imply some caution is warranted. Despite this, the momentum score of 4 indicates underlying strength and positive market sentiment.
As an energy infrastructure company with a focus on North America’s hydrocarbon resources, particularly natural gas and NGLs, Williams Cos operates in a crucial sector for the continent’s energy needs. With a mix of midstream assets and interstate pipelines, the company plays a vital role in connecting these resources to key markets. This strategic positioning underpins its growth potential and contribution to the energy value chain.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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