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Williams Companies Q1 Earnings Beat Estimates, Expenses Rise Y/Y
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The Williams Companies, Inc. (WMB - Free Report) reported first-quarter 2025 adjusted earnings per share of 60 cents, which beat the Zacks Consensus Estimate of 55 cents. The bottom line also increased from the year-ago period’s level of 59 cents per share. The outperformance can be attributed to the strong results delivered by the company’s Transmission & Gulf of America, Northeast G&P and West segments.
The Tulsa, OK-based oil and gas storage and transportation company’s revenues of $3 billion missed the Zacks Consensus Estimate by $93 million due to the weak performance of its Gas & NGL Marketing Services segment. However, the figure increased from the year-ago quarter’s reported number of $2.8 billion, driven by a year-over-year increase in service revenues and product sales.
Williams Companies, Inc. (The) Price, Consensus and EPS Surprise
During the quarter, Williams made significant progress with several key projects, including the Commercialization of Socrates, a $1.6 billion Power Innovation project to serve growing AI demand. The company announced an expansion project of Transco's Power Express to serve the Virginia market and acquired a 10% interest in Cogentrix Energy for enhanced gas supply opportunities. Two Transco expansion projects — the Louisiana Energy Pathway and Southeast Energy Connector — were placed into service on April 1, 2025. Work also began on the Alabama-Georgia Connector. In the MountainWest, WMB started construction on the Overthrust Westbound Expansion, and the Whale and the Ballymore projects were brought into service in the Deepwater.
WMB’s Key Takeaways
Adjusted EBITDA totaled $1.9 billion in the quarter under review, which was up 2.8% year over year. This was fueled by continued growth in natural gas demand, which can be attributed to the favorable net contributions from acquisitions, expansion projects and upstream results.
Cash flow from operations amounted to $1.4 billion, up 16% from the corresponding quarter of 2024.
(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
WMB’s Segmental Analysis
Transmission & Gulf of Mexico: The segment reported an adjusted EBITDA of $862 million, up 2.7% from the year-ago quarter’s level. This was driven by favorable net contributions from the Regional Energy Access, Southside Reliability Enhancement expansion projects and increased Gulf production. However, the figure was below the Zacks Consensus Estimate of $898 million due to higher costs.
West: This segment focuses on the gathering and processing of assets in the Western United States. Adjusted EBITDA for this segment totaled $354 million, up 7.9% from the prior-year quarter’s level of $328 million. This strong performance was driven by higher commodity margins and contributions from the Overland Pass Pipeline. However, the figure was below the Zacks Consensus Estimate of $366 million due to lower gathering volumes. Gathering volumes totaled 5.71 billion cubic feet per day (Bcf/d), compared to 5.75 Bcf/d a year ago and at par with the consensus mark of 5.71 Bcf/d.
Northeast G&P:This segment registered an adjusted EBITDA of $514 million, up about 2% from $504 million in the year-earlier quarter, beating the Zacks Consensus Estimate by 3.8%. The increase in adjusted EBITDA was fueled by higher rates and volumes at Ohio Valley Midstream and higher commodity-based rates at Laurel Mountain Midstream. The strong performance can also be attributed to the rising gathering volumes reported by the company. The gathering volumes in WMB’s Northeast G&P segment totaled 4.39 Bcf/d, increasing from the year-ago level of 4.33 Bcf/d. The figure also surpassed the Zacks Consensus Estimate of 4.31 Bcf/d.
Gas & NGL Marketing Services: The unit reported an adjusted EBITDA of $155 million, a decrease from $189 million in the prior-year quarter. This was due to lower natural gas marketing margins. However, the adjusted EBITDA beat the consensus mark of $119 million.
WMB’s Costs, Capex & Balance Sheet
In the reported quarter, total costs and expenses of $1.9 billion increased almost 11.1% from the year-ago quarter’s figure.
Total capital expenditure (Capex) was $1 billion. As of March 31, 2025, the company had cash and cash equivalents of $100 million and a long-term debt of $24.1 billion, with a debt-to-capitalization of 61.9%.
WMB’s 2025 Guidance
Williams has raised its expectations for 2025, forecasting adjusted EBITDA to $7.7 billion, indicating a $50 million rise to the guidance midpoint, within the range of $7.5 billion to $7.9 billion. The company also announced its 2025 capital expenditure plans, expecting growth Capex to range from $2.575 billion to $2.875 billion and maintenance Capex to fall between $650 million and $750 million. This excludes $150 million dedicated to emissions reduction and modernization projects.
Williams is improving its leverage ratio for 2025 to settle at a midpoint of 3.65x and has also raised its dividend by 5.3%, increasing the figure to $2 per share for 2025, up from $1.90 in 2024.
While we have discussed WMB’s first-quarter results in detail, let us take a look at three other key reports in this space.
Oil and gas equipment and services provider TechnipFMC plc (FTI - Free Report) reported first-quarter 2025 adjusted earnings of 33 cents per share, which missed the Zacks Consensus Estimate of 36 cents, primarily due to a 4.8% year-over-year increase in costs and expenses. However, the bottom line increased from the year-ago quarter’s reported profit of 22 cents, driven by improved performance in the Subsea segment.
The company’s revenues of $2.2 billion missed the Zacks Consensus Estimate by 1.1%. However, the top line increased from the year-ago quarter’s reported figure of $2 billion.
As of March 31, FTI had cash and cash equivalents worth $1.2 billion and long-term debt of $410.8 million, with a debt-to-capitalization of 11.8%.
Another oil and gas equipment and services provider, Core Laboratories Inc. (CLB - Free Report) , reported first-quarter 2025 adjusted earnings of 8 cents per share, which missed the Zacks Consensus Estimate of 15 cents. The bottom line also underperformed the year-ago quarter’s reported figure of 13 cents. This can be attributed to the underperformance of the Reservoir Description segment.
The company reported operating revenues of $124 million, in line with the Zacks Consensus Estimate. However, the top line decreased 4.6% from the year-ago quarter’s $130 million due to the recent imposition of sanctions and operational inefficiencies.
As of March 31, 2025, the company had cash and cash equivalents of $22.1 million and long-term debt of $124.4 million. CLB’s debt-to-capitalization was 32.4%.
Houston, TX-based oil and gas equipment and services provider Baker Hughes (BKR - Free Report) reported first-quarter 2025 adjusted earnings of 51 cents per share, which beat the Zacks Consensus Estimate of 47 cents. The bottom line also improved from the year-ago level of 43 cents.
As of March 31, 2025, Baker had cash and cash equivalents of $3,277 million. Baker had a long-term debt of $5,969 million at the end of the reported quarter, with a debt-to-capitalization of 25.9%.
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Williams Companies Q1 Earnings Beat Estimates, Expenses Rise Y/Y
The Williams Companies, Inc. (WMB - Free Report) reported first-quarter 2025 adjusted earnings per share of 60 cents, which beat the Zacks Consensus Estimate of 55 cents. The bottom line also increased from the year-ago period’s level of 59 cents per share. The outperformance can be attributed to the strong results delivered by the company’s Transmission & Gulf of America, Northeast G&P and West segments.
The Tulsa, OK-based oil and gas storage and transportation company’s revenues of $3 billion missed the Zacks Consensus Estimate by $93 million due to the weak performance of its Gas & NGL Marketing Services segment. However, the figure increased from the year-ago quarter’s reported number of $2.8 billion, driven by a year-over-year increase in service revenues and product sales.
Williams Companies, Inc. (The) Price, Consensus and EPS Surprise
Williams Companies, Inc. (The) price-consensus-eps-surprise-chart | Williams Companies, Inc. (The) Quote
During the quarter, Williams made significant progress with several key projects, including the Commercialization of Socrates, a $1.6 billion Power Innovation project to serve growing AI demand. The company announced an expansion project of Transco's Power Express to serve the Virginia market and acquired a 10% interest in Cogentrix Energy for enhanced gas supply opportunities. Two Transco expansion projects — the Louisiana Energy Pathway and Southeast Energy Connector — were placed into service on April 1, 2025. Work also began on the Alabama-Georgia Connector. In the MountainWest, WMB started construction on the Overthrust Westbound Expansion, and the Whale and the Ballymore projects were brought into service in the Deepwater.
WMB’s Key Takeaways
Adjusted EBITDA totaled $1.9 billion in the quarter under review, which was up 2.8% year over year. This was fueled by continued growth in natural gas demand, which can be attributed to the favorable net contributions from acquisitions, expansion projects and upstream results.
Cash flow from operations amounted to $1.4 billion, up 16% from the corresponding quarter of 2024.
(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
WMB’s Segmental Analysis
Transmission & Gulf of Mexico: The segment reported an adjusted EBITDA of $862 million, up 2.7% from the year-ago quarter’s level. This was driven by favorable net contributions from the Regional Energy Access, Southside Reliability Enhancement expansion projects and increased Gulf production. However, the figure was below the Zacks Consensus Estimate of $898 million due to higher costs.
West: This segment focuses on the gathering and processing of assets in the Western United States. Adjusted EBITDA for this segment totaled $354 million, up 7.9% from the prior-year quarter’s level of $328 million. This strong performance was driven by higher commodity margins and contributions from the Overland Pass Pipeline. However, the figure was below the Zacks Consensus Estimate of $366 million due to lower gathering volumes. Gathering volumes totaled 5.71 billion cubic feet per day (Bcf/d), compared to 5.75 Bcf/d a year ago and at par with the consensus mark of 5.71 Bcf/d.
Northeast G&P:This segment registered an adjusted EBITDA of $514 million, up about 2% from $504 million in the year-earlier quarter, beating the Zacks Consensus Estimate by 3.8%. The increase in adjusted EBITDA was fueled by higher rates and volumes at Ohio Valley Midstream and higher commodity-based rates at Laurel Mountain Midstream. The strong performance can also be attributed to the rising gathering volumes reported by the company. The gathering volumes in WMB’s Northeast G&P segment totaled 4.39 Bcf/d, increasing from the year-ago level of 4.33 Bcf/d. The figure also surpassed the Zacks Consensus Estimate of 4.31 Bcf/d.
Gas & NGL Marketing Services: The unit reported an adjusted EBITDA of $155 million, a decrease from $189 million in the prior-year quarter. This was due to lower natural gas marketing margins. However, the adjusted EBITDA beat the consensus mark of $119 million.
WMB’s Costs, Capex & Balance Sheet
In the reported quarter, total costs and expenses of $1.9 billion increased almost 11.1% from the year-ago quarter’s figure.
Total capital expenditure (Capex) was $1 billion. As of March 31, 2025, the company had cash and cash equivalents of $100 million and a long-term debt of $24.1 billion, with a debt-to-capitalization of 61.9%.
WMB’s 2025 Guidance
Williams has raised its expectations for 2025, forecasting adjusted EBITDA to $7.7 billion, indicating a $50 million rise to the guidance midpoint, within the range of $7.5 billion to $7.9 billion. The company also announced its 2025 capital expenditure plans, expecting growth Capex to range from $2.575 billion to $2.875 billion and maintenance Capex to fall between $650 million and $750 million. This excludes $150 million dedicated to emissions reduction and modernization projects.
Williams is improving its leverage ratio for 2025 to settle at a midpoint of 3.65x and has also raised its dividend by 5.3%, increasing the figure to $2 per share for 2025, up from $1.90 in 2024.
Williams Companies’ Zacks Rank
WMB currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Important Earnings at a Glance
While we have discussed WMB’s first-quarter results in detail, let us take a look at three other key reports in this space.
Oil and gas equipment and services provider TechnipFMC plc (FTI - Free Report) reported first-quarter 2025 adjusted earnings of 33 cents per share, which missed the Zacks Consensus Estimate of 36 cents, primarily due to a 4.8% year-over-year increase in costs and expenses. However, the bottom line increased from the year-ago quarter’s reported profit of 22 cents, driven by improved performance in the Subsea segment.
The company’s revenues of $2.2 billion missed the Zacks Consensus Estimate by 1.1%. However, the top line increased from the year-ago quarter’s reported figure of $2 billion.
As of March 31, FTI had cash and cash equivalents worth $1.2 billion and long-term debt of $410.8 million, with a debt-to-capitalization of 11.8%.
Another oil and gas equipment and services provider, Core Laboratories Inc. (CLB - Free Report) , reported first-quarter 2025 adjusted earnings of 8 cents per share, which missed the Zacks Consensus Estimate of 15 cents. The bottom line also underperformed the year-ago quarter’s reported figure of 13 cents. This can be attributed to the underperformance of the Reservoir Description segment.
The company reported operating revenues of $124 million, in line with the Zacks Consensus Estimate. However, the top line decreased 4.6% from the year-ago quarter’s $130 million due to the recent imposition of sanctions and operational inefficiencies.
As of March 31, 2025, the company had cash and cash equivalents of $22.1 million and long-term debt of $124.4 million. CLB’s debt-to-capitalization was 32.4%.
Houston, TX-based oil and gas equipment and services provider Baker Hughes (BKR - Free Report) reported first-quarter 2025 adjusted earnings of 51 cents per share, which beat the Zacks Consensus Estimate of 47 cents. The bottom line also improved from the year-ago level of 43 cents.
As of March 31, 2025, Baker had cash and cash equivalents of $3,277 million. Baker had a long-term debt of $5,969 million at the end of the reported quarter, with a debt-to-capitalization of 25.9%.