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Dec 31, 2021
Williams Q4 2021 Earnings Report
Reported record results driven by natural gas focused strategy.
Key Takeaways
Williams announced record fourth-quarter and full-year 2021 results, driven by the strength of its natural gas-focused strategy. The company's adjusted EBITDA increased by 11% compared to the fourth quarter of 2020, and net income increased significantly.
GAAP net income of $621 million, or $0.51 per diluted share.
Adjusted net income of $476 million, or $0.39 per diluted share, up 25% and 26%, respectively, vs. 4Q 2020.
Adjusted EBITDA of $1.483 billion, up $147 million or 11% vs. 4Q 2020.
Dividend coverage ratio of 2.10x (AFFO basis).
Forward Guidance
The company expects 2022 Adjusted EBITDA between $5.6 billion and $6 billion. The company also expects 2022 growth capex between $1.25 billion to $1.35 billion and maintenance capex between $650 million and $750 million, which includes capital for emissions reduction and modernization initiatives.
Positive Outlook
- Expects 3% growth in 2022 with Adjusted EBITDA guidance midpoint of $5.8 billion, yielding 6% CAGR over the last five years
- Anticipates achieving a leverage ratio midpoint of 3.8x
- Expectations to generate positive free cash flow (after capex and dividends)
- Retain financial flexibility
- Dividend guidance increased 3.7% on an annualized basis to $1.70 in 2022 from $1.64 in 2021.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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