A stronger 2Q for Williams


Despite a drop in natural gas prices and reports of other energy firms recording falling revenues, Tulsa’s Williams Companies reported a strong second quarter seeing a 36% increase in net income from a year ago.

Net income totaled $547 million or 45 cents a share while adjusted net income was $515 million or 42 cents a diluted share, an increase of 5% from the second quarter of 2022.

Adjuted EBITDA was $1.611 billion, up $115 million or 8% from a year ago. The company stated its cash flow from operations increased 25% or $279 million from a year earlier, reaching $1.377 billion.

How did Williams accomplish a strong quarter? The firm credited the increase of $147 million in second quarter net income because of the benefit of higher service revenues driven by contributions from recent acquisitions and increased volumes and rates.

“Our natural gas-centric strategy continues to prove its resiliency in a low gas price environment with second-quarter Adjusted EBITDA up 8 percent over the same period last year driven by strong earnings growth across our base business,” said Alan Armstrong, president and chief executive officer.

He said Williams benefited from its first full quarter of contributions from the MountainWest Pipelilne transmission and storage assets.

““On the project execution front, we are in full construction on the Regional Energy Access expansion, and expect to bring half of the project in service ahead of schedule this winter to begin moving additional Northeast gas to nearby markets.”

The company continues to expect 2023 Adjusted EBITDA between $6.4 billion and $6.8 billion with 2023 growth capex between $1.6 billion to $1.9 billion. Importantly, Williams anticipates a leverage ratio midpoint of 3.65x, which will allow it to retain financial flexibility. The dividend was increased by 5.3% on an annualized basis to $1.79 in 2023 from $1.70 in 2022.