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Mar 31, 2024

Williams Q1 2024 Earnings Report

Williams announced strong first-quarter results, driven by solid execution on acquisitions and organic growth.

Key Takeaways

Williams reported a strong first quarter with increased adjusted EBITDA, driven by the outperformance of transmission, storage, and gathering businesses. The company is positioned to hit the top half of its 2024 financial guidance range, supported by recent acquisitions and project execution.

GAAP net income was $631 million, or $0.52 per diluted share.

Adjusted EBITDA increased by 8% to $1.934 billion compared to Q1 2023.

Cash flow from operations (CFFO) reached $1.234 billion.

Dividend coverage ratio was 2.60x (AFFO basis).

Total Revenue
$2.78B
Previous year: $3.08B
-9.8%
EPS
$0.59
Previous year: $0.56
+5.4%
Dividend coverage ratio
2.6
Previous year: 2.65
-1.9%
Adjusted EBITDA
$1.93B
Previous year: $1.8B
+7.7%
Cash flow from operations
$1.23B
Previous year: $1.51B
-18.5%
Gross Profit
$1.17B
Previous year: $1.51B
-22.1%
Cash and Equivalents
$667M
Previous year: $477M
+39.8%
Free Cash Flow
$690M
Previous year: $969M
-28.8%
Total Assets
$52.7B
Previous year: $48.9B
+7.8%

Williams

Williams

Williams Revenue by Segment

Forward Guidance

Williams expects Adjusted EBITDA at the top half of its 2024 guidance range of $6.8 billion and $7.1 billion.

Positive Outlook

  • Expects Adjusted EBITDA at the top half of its 2024 guidance range of $6.8 billion and $7.1 billion.
  • Continues to expect 2024 growth capex between $1.45 billion and $1.75 billion.
  • Continues to expect 2024 maintenance capex between $1.1 billion and $1.3 billion, including capital of $350 million for emissions reduction and modernization initiatives.
  • Continues to expect Adjusted EBITDA between $7.2 billion and $7.6 billion for 2025.
  • Anticipates a leverage ratio midpoint for 2024 of 3.85x and has increased the dividend by 6.1% on an annualized basis to $1.90 in 2024 from $1.79 in 2023.

Revenue & Expenses

Visualization of income flow from segment revenue to net income