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Dec 31, 2024

Williams Q4 2024 Earnings Report

Key Takeaways

Williams reported a significant decline in net income due to the absence of a large litigation gain from the previous year and unfavorable changes in unrealized commodity derivatives. However, Adjusted EBITDA saw a modest increase, driven by higher service revenues from acquisitions and expansion projects.

Total Revenue
$2.74B
Previous year: $2.78B
-1.5%
EPS
$0.47
Previous year: $0.48
-2.1%
Dividend coverage ratio
2.31
Previous year: 2.43
-4.9%
Adjusted EBITDA
$1.78B
Cash flow from operations
$1.22B
Gross Profit
$990M
Previous year: $1.81B
-45.2%
Cash and Equivalents
$60M
Previous year: $2.15B
-97.2%
Free Cash Flow
$345M
Previous year: $1.12B
-69.3%
Total Assets
$54.5B
Previous year: $52.6B
+3.6%

Williams

Williams

Williams Revenue by Segment

Forward Guidance

Williams raised its 2025 Adjusted EBITDA guidance midpoint by 3%, expecting continued growth driven by key infrastructure projects and expansions.

Positive Outlook

  • Raised 2025 Adjusted EBITDA guidance to $7.45B - $7.85B.
  • Transco’s Southeast Supply Enhancement project to add 1.6 Bcf/d capacity.
  • Dividend increased by 5.3% to $2.00 annualized.
  • Expansion in Gulf Coast Storage to meet growing LNG demand.
  • Continued momentum from strategic acquisitions and project completions.

Challenges Ahead

  • Potential continued impact from lower gas and NGL marketing margins.
  • Higher operating costs and depreciation from recent acquisitions.
  • Exposure to volatility in commodity derivative markets.
  • Potential regulatory challenges in key pipeline projects.
  • Macroeconomic uncertainty could impact demand growth projections.

Revenue & Expenses

Visualization of income flow from segment revenue to net income