- Williams Companies’ adjusted EPS for Q2 is 43 cents.
- This beats last year’s EPS of 42 cents and the estimated 38 cents.
- Revenue is $2.34 billion, a 5.9% decline year-over-year, and below the estimated $2.45 billion.
- Adjusted EBITDA stands at $1.67 billion, up 3.5% year-over-year, surpassing the estimate of $1.64 billion.
- Transmission & Gulf of Mexico adjusted EBITDA reaches $812 million, up 8.6% year-over-year, exceeding the estimate of $804.7 million.
- Northeast G&P adjusted EBITDA is $479 million, a 7% decline year-over-year, but still above the estimate of $473.5 million.
- West adjusted EBITDA is $319 million, up 2.2% year-over-year, though slightly below the estimate of $322.3 million.
- Available funds from operations (AFFO) are $1.25 billion, a 2.9% increase year-over-year, and significantly above the estimated $1.07 billion.
- Capital expenditure is $579 million, a 5.1% decline year-over-year, lower than the estimated $682.9 million.
- CEO Armstrong states that Williams has seen consecutive year-over-year growth for more than a decade, and forecasts stronger future performance due to rising demand for natural gas.
- The stock has 10 buy ratings, 10 hold ratings, and 2 sell ratings from analysts.
Williams Cos on Smartkarma
Analyst Coverage of Williams Cos on Smartkarma
Analyst coverage of The Williams Companies Inc. on Smartkarma by Baptista Research reveals positive sentiments towards the company’s performance. In their report titled “The Williams Companies Inc.: How Will The Deepwater Growth Projects Impact Their Future Revenues? – Major Drivers,” Baptista Research highlights the company’s Q1 2024 results, emphasizing a robust quarter marked by operational, financial, and strategic achievements. Despite facing challenges like a decline in natural gas prices and milder winter weather, The Williams Companies showcased an impressive 8% year-over-year increase in EBITDA to $1.934 billion, demonstrating the company’s core business strength and resilience independent of commodity price fluctuations.
Continuing their optimistic outlook, Baptista Research‘s report “The Williams Companies Inc.: 6 Major Growth Drivers For Their Performance In 2024 & Beyond! – Major Drivers” underscores the company’s strong performance in the third quarter of 2023. The report highlights significant advancements in operational execution, project completion, and positive expansion achievements amidst a backdrop of low gas prices. Noteworthy progress includes the completion of the first half of Transco’s Regional Energy Access project aimed at increasing natural gas transportation from the Marcellus Shale to markets in Pennsylvania, New Jersey, and Maryland, with the second half expected to be finalized in the last quarter of 2024.
A look at Williams Cos Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
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, according to the Smartkarma Smart Scores, has a positive long-term outlook. With strong ratings in Dividend, Growth, and Momentum, the company appears well-positioned for future success. The company’s focus on energy infrastructure connecting key resources to growing markets showcases its potential for sustained growth and dividends for investors.
Despite lower scores in Value and Resilience, Williams Cos‘ overall ratings paint a promising picture for its future performance. As an energy infrastructure company with midstream assets and interstate pipelines, it is strategically positioned to capitalize on the demand for natural gas and NGLs. Investors may find Williams Cos an attractive prospect based on its solid fundamentals and growth potential in the energy sector.
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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