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Dec 31, 2022

Williams Q4 2022 Earnings Report

Announced higher fourth quarter and full-year 2022 results, demonstrating financial stability and growth.

Key Takeaways

Williams reported strong Q4 2022 results, with a 20% increase in Adjusted EBITDA driven by the core business, upstream JVs, and the commodity marketing segment. The company's natural gas-focused strategy led to record performance in 2022, exceeding financial guidance despite macroeconomic challenges.

GAAP net income of $668 million, or $0.55 per diluted share.

Adjusted net income of $653 million, or $0.53 per diluted share (Adjusted EPS) – up 37% and 36%, respectively, vs. 4Q 2021.

Adjusted EBITDA of $1.774 billion – up $291 million or 20% vs. 4Q 2021.

Dividend coverage ratio of 2.62x (AFFO basis).

Total Revenue
$2.93B
Previous year: $3.26B
-10.0%
EPS
$0.53
Previous year: $0.39
+35.9%
Dividend coverage ratio
2.62
Previous year: 2.1
+24.8%
Adjusted EBITDA
$1.77B
Cash flow from operations
$1.22B
Gross Profit
$1.25B
Previous year: $1.22B
+2.3%
Cash and Equivalents
$152M
Previous year: $1.68B
-91.0%
Free Cash Flow
$4.92B
Previous year: $857M
+473.9%
Total Assets
$48.4B
Previous year: $47.6B
+1.7%

Williams

Williams

Williams Revenue by Segment

Forward Guidance

The company expects 2023 Adjusted EBITDA between $6.4 billion and $6.8 billion. The company also expects 2023 growth capex between $1.4 billion to $1.7 billion and maintenance capex between $750 million and $850 million, which includes capital of $250 million for emissions reduction and modernization initiatives. Importantly, Williams anticipates a leverage ratio midpoint of 3.65x, which will allow it to retain financial flexibility. The dividend has been increased by 5.3% on an annualized basis to $1.79 in 2023 from $1.70 in 2022.

Revenue & Expenses

Visualization of income flow from segment revenue to net income