Fourth quarter and 2024 earnings for Tulsa’s Williams Cos. came in lower, according to an earnings report released by the company.
Williams had $2.2 billion in net income for all of its 2024 operations. While that sounds like impressive numbers, the income decreased by $1.051 billion compared to the previous year. The company explained the decline reflected an unfavorable change of $1.027 billion in net unrealized gains/losses on ccommodity derivatives.
The $2.222 billion represented earnings of $1.82 per share. Its adjusted net income was $2.347 billion and $1.92 per share. In turn, adjusted EBITDA came to $7.08 billion which was $301 million or 4.4% more compared to 2023.
Its cash flow from operations were $4.974 billion and available funds from operations came to $5.378 billion, up $165 million or 3.2% from 2023. Because of improved total 2024 revenue, Williams raised its 2025 adjusted EBITDA guidance midpoint by 3% to between $7.45 billion and $7.85 billion.
Fourth-quarter 2024 net income decreased by $661 million compared to the prior year primarily reflecting the absence of a $534 million gain in 2023 related to the net cash received from the favorable resolution of litigation with Energy Transfer and an unfavorable change of $384 million in net unrealized gains/losses on commodity derivatives, partially offset by $161 million of higher service revenues driven by acquisitions and expansion projects.
Williams CEO and President Alan Armstrong still felt the earnings were impressive.
“Our natural gas-focused strategy delivered outstanding financial results in 2024, with Adjusted EBITDA and contracted transmission capacity reaching record levels due to the continued growth in natural gas demand driven by the abundance of low-cost U.S. natural gas,” expressed Armstrong.
“As we maintain our strong track record of project execution and completion, we fully expect this growth to accelerate in 2025.”
Williams saw key expansions in the Mountain West, Marcellus South gathering system and the Deepwater Gulf. It also increased its Gulf coast Storage inegration to serve growing LNG exports and power generation demand. And Armstrong expects the company’s growth to continue.
“As we maintain our strong track record of project execution and completion, we fully expect this growth to accelerate in 2025. Consequently, we are raising our Adjusted EBITDA guidance midpoint by 3% to $7.65 billion.”
Armstrong added, “For the last several years we’ve been implementing our long-term strategy to bring Williams to where we are today with a healthy balance sheet and a clear line of sight to a full portfolio of high-return projects. During these early years of what is shaping up to be the golden age of natural gas, our strategy is taking hold in a powerful way that is delivering robust growth and compounding returns for our shareholders.”