Williams revealed its fourth-quarter financial report on Monday showing the quarter and the full-year to have record results, driven largely by the strength of natural gas focused strategy.
The Tulsa-based company stated that fourth-quarter 2021 net income soared $506 million to $621 million or 51 cents a diluted year compared to the previous year. Williams said it reflected $66 million of increased earnings from its new upstream operations.
Its adjusted net income was $476 million for the quarter or 39 cents a diluted share, up 25% and 26% respectively compared to the fourth quarter of 2020. Williams’ EBITDA for the quarter was $1.483 billion, an increase of 11% or $147 million over a year earlier.
The company’s full-year 2021 results included $1.514 billion in net income or $1.24 per diluted share. Adjusted net income was $1.658 billion or $1.36 a share. Full-year adjusted EBITDA was $5.635 billion, up $530 million or 10% compared to 2020.
The company’s cash flow for 2021 also grew, increasing 13% to $3.945 billion.
“Williams broke records in contracted transmission capacity, natural gas gathering volumes and financial results in 2021, including 10% higher Adjusted EBITDA for the year, reflecting growth across our three major business segments as well as strong contributions from our upstream JV operations,” said Alan Armstrong, Williams’ President and chief executive officer.
He said Williams surpassed its financial guidance even after raising it twice during the year.
“In addition to record financial and operational success in 2021, we received top ESG rankings for the midstream sector and won a prestigious award for industry leadership,” added Armstrong.
In announcing the financial results, the company admitted the severe winter weather impact of February 2021 and the associated effect on commodity prices had a net favorable impact on its pre-tax results of nearly $77 million.
The company expects 2022 Adjusted EBITDA between $5.6 billion and $6 billion. The company also expects 2022 growth capex between $1.25 billion to $1.35 billion and maintenance capex between $650 million and $750 million, which includes capital for emissions reduction and modernization initiatives.
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