Q2 2018 EBITDA estimates
Williams Companies (WMB) and its MLP subsidiary, Williams Partners (WPZ), are scheduled to release their Q2 2018 earnings on August 1. Midstream C corporation Kinder Morgan (KMI) announced its second-quarter results on July 18. For an in-depth review, read Analyzing Kinder Morgan’s Second-Quarter Earnings.
Analysts’ Q2 2018 EBITDA estimate for WPZ is $1.1146 billion, representing a 1.0% rise YoY (year-over-year) and a 0.7% sequential fall. The partnership beat its EBITDA estimate of $1.1192 billion marginally in Q1 2018, by 0.2%, posting adjusted EBITDA of $1.1220 billion.
Q2 2018 EBITDA drivers
Williams Partners’ Q2 2018 earnings may have been driven by the following factors:
- volume growth on the Transco system, driven by expansion projects placed into service in recent quarters and strong natural gas demand from power utilities and LNG (liquefied natural gas) exports
- higher NGL (natural gas liquids) throughput volumes
- higher gathering volumes in the Haynesville and Northeast regions, driven by strong drilling activity in the regions
- improved non-fee based margins due to higher crude oil prices
- asset divestitures, including the sale of its Canadian assets and the Geismar Plant
- lower contribution from the Discovery joint venture due to a decline in volumes from the Hadrian field
In this series, we’ll look at Williams Partners’ Q2 2018 operating drivers in depth, as well as its market performance, technical indicators, and analyst recommendations.