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Dec 31, 2020

Williams Q4 2020 Earnings Report

Williams reported stable Q4 2020 results despite external volatility, with adjusted EPS up 29% year-over-year.

Key Takeaways

Williams announced its Q4 2020 financial results, demonstrating stability despite ongoing external volatility. Adjusted EPS increased by 29% compared to Q4 2019, and cash flow from operations rose by 12%. The company also provided 2021 financial guidance, expecting Adjusted EBITDA between $5.05 billion and $5.35 billion.

Net income of $115 million, or $0.09 per diluted share, which includes net non-cash impairment impact of ($245 million), or ($0.20) per diluted share

Adjusted EPS of $0.31 per diluted share - up 29% vs. 4Q '19

CFFO of $1.114 billion - up $123 million or 12% over 4Q '19

Adjusted EBITDA of $1.336 billion - up $52 million or 4% over 4Q '19

Total Revenue
$2.09B
Previous year: $2.11B
-0.7%
EPS
$0.31
Previous year: $0.24
+29.2%
Dividend coverage ratio
1.91
Previous year: 1.8
+6.1%
Gross Profit
$1.14B
Previous year: $1.13B
+1.1%
Cash and Equivalents
$142M
Previous year: $289M
-50.9%
Free Cash Flow
$813M
Previous year: $587M
+38.5%
Total Assets
$44.2B
Previous year: $46B
-4.1%

Williams

Williams

Williams Revenue by Segment

Forward Guidance

The company expects 2021 Adjusted EBITDA between $5.05 billion and $5.35 billion. The company also expects 2021 growth capex between $1 billion to $1.2 billion and leverage ratio of 4.25x, providing visibility to the company’s 4.20x leverage metric objective. Importantly, Williams also anticipates it will generate positive free cash flow (after capex and dividends), allowing it to retain financial flexibility.

Revenue & Expenses

Visualization of income flow from segment revenue to net income