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Sep 30, 2022

Williams Q3 2022 Earnings Report

Williams reported higher third-quarter earnings driven by strong business fundamentals and natural gas demand.

Key Takeaways

Williams reported a strong third quarter with a 15% increase in Adjusted EBITDA, driven by increased demand for their services and strategic positioning in the natural gas market. The company is progressing with several growth projects and clean energy initiatives, expecting continued earnings growth and value creation for shareholders.

GAAP net income of $599 million, or $0.49 per diluted share

Adjusted net income of $592 million, or $0.48 per diluted share (Adjusted EPS)

Adjusted EBITDA of $1.637 billion – up $217 million or 15% vs. 3Q 2021

Cash flow from operations (CFFO) of $1.490 billion – up $656 million or 79% vs. 3Q 2021

Total Revenue
$3.02B
Previous year: $2.48B
+22.1%
EPS
$0.48
Previous year: $0.34
+41.2%
Dividend coverage ratio
2.4
Previous year: 2.17
+10.6%
Adjusted EBITDA
$1.64B
Previous year: $1.42B
+15.3%
Gross Profit
$1.02B
Previous year: $508M
+100.0%
Cash and Equivalents
$859M
Previous year: $214M
+301.4%
Free Cash Flow
$649M
Previous year: $562M
+15.5%
Total Assets
$48.7B
Previous year: $46B
+5.8%

Williams

Williams

Williams Revenue by Segment

Forward Guidance

The company continues to expect 2022 Adjusted EBITDA near the high end of its previously announced guidance range of $6.1 billion and $6.4 billion. The company is also maintaining guidance for 2022 growth capital expenditures between $1.25 billion to $1.35 billion, which excludes approximately $1.5 billion in total acquisitions and follow-on expenditures for Trace Midstream and NorTex Midstream assets. Williams anticipates achieving a leverage ratio (net debt-to-Adjusted EBITDA) of approximately 3.6x, below the original guidance of 3.8x.

Revenue & Expenses

Visualization of income flow from segment revenue to net income