Strong 3Q for Williams

 

The headline said it all—-“Williams Reports Strong Third-Quarter Results.”

Williams, in a release Wednesday of its quarterly financial report said its continued strength in base business delivers another quarter of solid financial results. What kind of results?

How about net income of $654 million or 54 cents per diluted share, an increase of 10% over the third quarter of 2022. Its adjusted net income was $547 million or 45 cents a diluted share and the adjusted EBITDA totaled $1.652 billion, up $15 million from a year earlier.

Third-quarter 2023 net income increased by $55 million compared to a year earlier and it reflected a $130 million gain on the sale of the Bayou Ethane system.

Cash flow from the Williams operations came to $1.234 billion and the company increased midpoint for full-year 2023 guidance to $6.7 billion adjusted EBITDA.

For year-to-date 2023, net income increased $749 million compared to the prior year reflecting a favorable change of $762 million in net unrealized gains/losses on commodity derivatives.

“Williams delivered another quarter of impressive accomplishments with Adjusted EBITDA up 9 percent year-to-date 2023, despite dramatically lower natural gas prices,” stated Alan Armstrong, President and CEO.

“We expect the strong performance to continue, providing confidence to raise our guidance midpoint by $100 million to $6.7 billion Adjusted EBITDA for 2023.”

Armonstrong cited a number of accomplishments during the third quarter.

  • Placed in-service phase one of Transco’s Regional Energy Access expansion Oct. 21 ahead of schedule
  • Signed precedent agreements on Transco’s Southeast Supply Enhancement
  • Signed anchor shipper precedent agreement on MountainWest Uinta Basin expansion project
  • Completed NorTex Wolf Hollow, South Mansfield and phase one of Northeast Cardinal Utica expansions
  • Sold non-core Bayou Ethane system for an attractive multiple greater than 14x
  • Delaware Supreme Court affirms previous rulings in long-standing suit; Energy Transfer ordered to pay $602 million plus additional interest accrued during the appeal to Williams for failed merger
  • Optimizing position in DJ Basin through Rocky Mountain Midstream and Cureton Front Range LLC acquisitions
  • Assuming operatorship of non-consolidated Blue Racer joint venture
  • Supporting two clean hydrogen hubs announced by U.S. Department of Energy

Armstrong indicated the company proved its ability to predictably grow through different commodity cycles and that its natural gas strategy is more relevant than ever as demand for natural gas continues to increase.

“Williams is well positioned to capture significant future growth and return value to our shareholders, while we reliably deliver the benefits of natural gas to the United States and abroad.”