We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Williams (WMB) Earnings & Sales Beat to Log a Strong Q4
Read MoreHide Full Article
The Williams Companies, Inc. (WMB - Free Report) reported fourth-quarter 2021 adjusted earnings per share of 39 cents, beating the Zacks Consensus Estimate and surpassing the year-earlier period’s profit by 8 cents.
The outperformance could be tracked to higher-than-expected contributions from two major segments. Precisely, adjusted EBITDA from the Transmission & Gulf of Mexico and the Northeast G&P units totaled $685 million and $459 million, ahead of their respective Zacks Consensus Estimate of $643 million and $448 million.
Meanwhile, for the quarter ended Dec 31, the company’s revenues of $3.3 billion beat the Zacks Consensus Estimate of $2.8 billion and increased $1.2 billion from a year ago.
Williams Companies, Inc. The Price, Consensus and EPS Surprise
Adjusted EBITDA was $1.5 billion in the quarter under review, reflecting an increase of 11% from the corresponding period of 2020. Cash flow from operations totaled $1.1 billion, up 2.2% from the prior-year period. Favorable net working capital changes drove cash flow in the quarter.
Segmental Analysis
Transmission & Gulf of Mexico: Comprising Williams’ massive Transco pipeline system and Northwest Pipeline, the segment generated adjusted EBITDA of $685 million, rising 6.4% from the year-ago quarter. This unit’s performance was buoyed by service revenue gains from the expansion projects around Transco (the country's largest gas transmission system and Williams’ core initiative) being placed into service over the past few years. The positive factor was partially offset by an escalation in costs.
West: This segment includes gathering and processing assets in the Western region of the United States. It delivered adjusted EBITDA of $253 million, which is 8.7% lower than $277 million recorded in the year-earlier quarter. The deterioration in results were due to the absence of certain volume deficiency payments that was partly offset by rising volumes and rates.
Northeast G&P: Engaged in natural gas gathering and processing along with the NGL fractionation business in Marcellus and Utica shale regions, the segment generated adjusted EBITDA of $459 million, up 13.1% from the prior-year quarter’s $406 million. An uptick in gathering volumes and contribution from WMB’s increased ownership in Blue Racer Midstream drove the results.
Sequent: This is Williams’ newest unit following last year’s acquisition of wholesale gas trading enterprise Sequent Energy Management. The segment generated adjusted EBITDA of $169 million.
Costs, Capex & Balance Sheet
In the reported quarter, total costs and expenses increased 47.4% to $2.3 billion from $1.6 billion a year ago, primarily owing to spiraling product expenses.
Williams’ total capital expenditure was $371 million in the fourth quarter, down from $423 million a year ago. As of Dec 31, 2021, the company had cash and cash equivalents of $1.7 billion and a long-term debt of $21.7 billion with a debt-to-capitalization of 60.6%.
2022 Guidance
WMB guided full-year adjusted EBITDA in the band of $5.6-$6 billion with growth capital spending in the range of $1.25-$1.35 billion. Adjusted EPS for the year is expected in the range of $1.29 to $1.54. Further, Williams expects to grow its dividend at an annual rate of 4% and aims toward a dividend coverage ratio of 2.1x at the midpoint of its 2022 guidance.
Zacks Rank & Stock Picks
Williams currently carries a Zacks Rank #3 (Hold).
Vermilion Energy: Vermilion Energy is valued at around $2.8 billion. The Zacks Consensus Estimate for VET’s 2022 earnings has been revised 40% upward over the past 60 days.
Vermilion Energy delivered a four-quarter average earnings surprise of 54.4%, including a 100% beat in Q3. VET shares have gained around 180.7% in a year.
ConocoPhillips: ConocoPhillips is valued at around $116.5 billion. The consensus estimate for COP’s 2022 earnings has been revised 16.5% upward over the past 60 days.
COP beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 12.6%. ConocoPhillips has rallied around 77.2% in a year.
ExxonMobil: ExxonMobil has a projected earnings growth rate of 27.3% for this year. The Zacks Consensus Estimate for XOM’s 2022 earnings has been revised 15.1% upward over the past 60 days.
ExxonMobil beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 5.8%. XOM shares have gained around 48.3% in a year.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Williams (WMB) Earnings & Sales Beat to Log a Strong Q4
The Williams Companies, Inc. (WMB - Free Report) reported fourth-quarter 2021 adjusted earnings per share of 39 cents, beating the Zacks Consensus Estimate and surpassing the year-earlier period’s profit by 8 cents.
The outperformance could be tracked to higher-than-expected contributions from two major segments. Precisely, adjusted EBITDA from the Transmission & Gulf of Mexico and the Northeast G&P units totaled $685 million and $459 million, ahead of their respective Zacks Consensus Estimate of $643 million and $448 million.
Meanwhile, for the quarter ended Dec 31, the company’s revenues of $3.3 billion beat the Zacks Consensus Estimate of $2.8 billion and increased $1.2 billion from a year ago.
Williams Companies, Inc. The Price, Consensus and EPS Surprise
Williams Companies, Inc. The price-consensus-eps-surprise-chart | Williams Companies, Inc. The Quote
Key Takeaways
Adjusted EBITDA was $1.5 billion in the quarter under review, reflecting an increase of 11% from the corresponding period of 2020. Cash flow from operations totaled $1.1 billion, up 2.2% from the prior-year period. Favorable net working capital changes drove cash flow in the quarter.
Segmental Analysis
Transmission & Gulf of Mexico: Comprising Williams’ massive Transco pipeline system and Northwest Pipeline, the segment generated adjusted EBITDA of $685 million, rising 6.4% from the year-ago quarter. This unit’s performance was buoyed by service revenue gains from the expansion projects around Transco (the country's largest gas transmission system and Williams’ core initiative) being placed into service over the past few years. The positive factor was partially offset by an escalation in costs.
West: This segment includes gathering and processing assets in the Western region of the United States. It delivered adjusted EBITDA of $253 million, which is 8.7% lower than $277 million recorded in the year-earlier quarter. The deterioration in results were due to the absence of certain volume deficiency payments that was partly offset by rising volumes and rates.
Northeast G&P: Engaged in natural gas gathering and processing along with the NGL fractionation business in Marcellus and Utica shale regions, the segment generated adjusted EBITDA of $459 million, up 13.1% from the prior-year quarter’s $406 million. An uptick in gathering volumes and contribution from WMB’s increased ownership in Blue Racer Midstream drove the results.
Sequent: This is Williams’ newest unit following last year’s acquisition of wholesale gas trading enterprise Sequent Energy Management. The segment generated adjusted EBITDA of $169 million.
Costs, Capex & Balance Sheet
In the reported quarter, total costs and expenses increased 47.4% to $2.3 billion from $1.6 billion a year ago, primarily owing to spiraling product expenses.
Williams’ total capital expenditure was $371 million in the fourth quarter, down from $423 million a year ago. As of Dec 31, 2021, the company had cash and cash equivalents of $1.7 billion and a long-term debt of $21.7 billion with a debt-to-capitalization of 60.6%.
2022 Guidance
WMB guided full-year adjusted EBITDA in the band of $5.6-$6 billion with growth capital spending in the range of $1.25-$1.35 billion. Adjusted EPS for the year is expected in the range of $1.29 to $1.54. Further, Williams expects to grow its dividend at an annual rate of 4% and aims toward a dividend coverage ratio of 2.1x at the midpoint of its 2022 guidance.
Zacks Rank & Stock Picks
Williams currently carries a Zacks Rank #3 (Hold).
Investors interested in the energy space could look at better options like Vermilion Energy (VET - Free Report) , ConocoPhillips (COP - Free Report) and ExxonMobil (XOM - Free Report) . All the companies sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Vermilion Energy: Vermilion Energy is valued at around $2.8 billion. The Zacks Consensus Estimate for VET’s 2022 earnings has been revised 40% upward over the past 60 days.
Vermilion Energy delivered a four-quarter average earnings surprise of 54.4%, including a 100% beat in Q3. VET shares have gained around 180.7% in a year.
ConocoPhillips: ConocoPhillips is valued at around $116.5 billion. The consensus estimate for COP’s 2022 earnings has been revised 16.5% upward over the past 60 days.
COP beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 12.6%. ConocoPhillips has rallied around 77.2% in a year.
ExxonMobil: ExxonMobil has a projected earnings growth rate of 27.3% for this year. The Zacks Consensus Estimate for XOM’s 2022 earnings has been revised 15.1% upward over the past 60 days.
ExxonMobil beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 5.8%. XOM shares have gained around 48.3% in a year.