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Mar 31, 2021

Williams Q1 2021 Earnings Report

Reported strong first-quarter results and record volumes, and raised 2021 guidance.

Key Takeaways

Williams announced strong first-quarter results, exceeding expectations across key metrics. Net income was $425 million, with adjusted EPS up 35% from 1Q 2020. The company also raised its 2021 guidance for Adjusted EBITDA and AFFO by $100 million.

Net income of $425 million, or $0.35 per diluted share (EPS).

Adjusted EPS of $0.35 per diluted share, up 35% from 1Q 2020.

Cash flow from operations (CFFO) of $915 million, up $128 million or 16% from 1Q 2020.

Adjusted EBITDA of $1.415 billion, up 12% from 1Q 2020.

Total Revenue
$2.61B
Previous year: $1.91B
+36.5%
EPS
$0.35
Previous year: $0.26
+34.6%
Dividend coverage ratio
2.07
Previous year: 1.78
+16.3%
Adjusted EBITDA
$1.42B
Previous year: $1.26B
+12.1%
Cash flow from operations
$915M
Previous year: $787M
+16.3%
Gross Profit
$861M
Previous year: $738M
+16.7%
Cash and Equivalents
$1.13B
Previous year: $400M
+181.5%
Free Cash Flow
$655M
Previous year: $481M
+36.2%
Total Assets
$45.3B
Previous year: $44.6B
+1.4%

Williams

Williams

Forward Guidance

The company now expects 2021 Adjusted EBITDA between $5.2 billion and $5.4 billion and Available Funds from Operations between $3.7 billion and $3.9 billion, both a $100 million midpoint increase from guidance originally issued in February 2021. As well, the leverage ratio midpoint has been updated to ~4.2x versus ~4.25x prior for year-end 2021. The company is keeping intact 2021 growth capex guidance between $1 billion to $1.2 billion. Importantly, Williams expects to generate positive free cash flow (after capital expenditures and dividends), allowing it to retain financial flexibility.