Higher earnings for Williams Cos. in 1Q

Former directors blast Williams CEO after failed merger


Williams recorded higher earnings in the first quarter of the year with a 37% increase over a year ago in adjusted net income as it reached $684 million or 56 cents a diluted share.

The Tulsa-based company reported net income of $926 million or 76 cents a diluted share—a 144% gain over the first quarter of 2022. Adjusted EBITDA was $1.795 billion which was $284 million or 19% stronger than a year earlier.

As a result, available funds from the company operations reached $1.445 billion, also an increase of 21% in the past year.

The company also had a record gathering volume of 17.85 Bcf a day which was 18% higher than the first quarter of 2022.

“Williams experienced record natural gas gathering volumes and contracted capacity in the first quarter, driving higher earnings across all four core business segments compared to first quarter 2022, with Adjusted EBITDA up nearly 20 percent,” said Alan Armstrong, president and chief executive officer.

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“These results proved without question that our core business is performing as designed amid volatile price cycles. Our fee-based revenues continued to grow even without including the strong contributions from recent acquisitions.”

He explained the company remains focused on its natural gas-focused strategy and it has a list of fully contracted projects to contribute to the long-term adjusted EBITDA growth rate target of 5% to 7%.

Armstrong anticipates that Regional Energy Access will be brought into service ahead of schedule and will unlock more of the company’s Northeast gas gathering and processing volumes.

First-quarter 2023 net income increased by $547 million compared to the prior year reflecting a favorable change of $450 million in net unrealized gains/losses on commodity derivatives, the benefit of higher service revenues driven by contributions from recent acquisitions and increased volumes at Ohio Valley Midstream, as well as higher commodity marketing margins.

These improvements were partially offset by higher operating and administrative expenses, including the impact from recent acquisitions. The tax provision increased primarily due to higher pretax income.

Rising Natural Gas Demand Should Boost Williams Companies Stock

First-quarter 2023 Adjusted EBITDA increased by $284 million over the prior year, driven by the previously described benefits from service revenues and commodity marketing margins, partially offset by higher operating and administrative expenses.

First-quarter 2023 Adjusted Net Income improved by $185 million over the prior year, driven by the previously described impacts to net income, adjusted primarily to remove the effects of net unrealized gains/losses on commodity derivatives and amortization of certain assets from the Sequent acquisition.

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