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Jun 30, 2021
Williams Q2 2021 Earnings Report
Williams reported higher results across key metrics, exceeding expectations and trending toward the higher end of previously increased 2021 financial guidance.
Key Takeaways
Williams announced strong second-quarter results with a 6% increase in Adjusted EBITDA, driven by record quarterly gas gathering volumes and successful execution of Transco expansion projects. The company is trending towards the higher end of its previously increased 2021 financial guidance.
Net income of $304 million, or $0.25 per diluted share (EPS).
Adjusted EPS of $0.27 per diluted share – up 8% from 2Q 2020.
Adjusted EBITDA of $1.317 billion – up $77 million or 6% from 2Q 2020.
Achieved record quarterly gathering volumes of 13.79 Bcf/d.
Forward Guidance
The company expects 2021 Adjusted EBITDA at the higher end of the previously increased guidance range of $5.2 billion to $5.4 billion and Available Funds from Operations between $3.7 billion and $3.9 billion. Moreover, the leverage ratio is expected to be less than the 4.2x midpoint for year-end 2021; growth capex is reaffirmed at $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.
Positive Outlook
- Adjusted EBITDA expected at the higher end of the previously increased guidance range of $5.2 billion to $5.4 billion.
- Available Funds from Operations between $3.7 billion and $3.9 billion.
- Leverage ratio expected to be less than the 4.2x midpoint for year-end 2021.
- Growth capex reaffirmed at $1 billion to $1.2 billion.
- Expects to generate positive free cash flow after capital expenditures and dividends.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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