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Highlights from Williams Companies’ Q4 Earnings

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Williams Companies 

Williams Companies (WMB) reported its fourth-quarter and fiscal 2018 earnings on February 13. The company reported an adjusted EBITDA of $1.20 billion, which missed the consensus estimates for the quarter ending December 31. In the same quarter in 2017, the company reported an EBITDA of $1.16 billion.

Williams Companies’ earnings were impacted positively by higher gathering volumes due to the Atlantic Sunrise Project. Williams Companies’ distributable cash flow increased to $748 million in the fourth quarter—an increase of ~19% compared to the fourth quarter of 2017. For fiscal 2018, the company’s adjusted EBITDA was $4.64 billion—an increase of 2.3% compared to 2017.

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Earnings highlights

Williams Companies’ Atlantic-Gulf segment includes the interstate natural gas pipeline and Transco, which operates primarily in the Gulf Coast region. The segment reported an adjusted EBITDA of $529 million in the fourth quarter—compared to $433 million in the fourth quarter of 2017. The improvement was mainly due to Transco expansion projects that came in-service during the quarter.

Williams Companies’ West segment reported an adjusted EBITDA of $358 million in the fourth quarter—compared to $481 million in the fourth quarter of 2017. The negative impact was the result of a decrease in service revenues due to the absence of the deconsolidation of interests in the Jackalope system, lower volumes, and lower commodity margins. Williams Companies’ West segment operates the Northwest pipeline, natural gas gathering and processing assets in Colorado and Wyoming, and the Barnett Shale in Texas.

Northeast G&P, which includes the natural gas gathering and processing, compression, and NGL fractionation businesses in the Marcellus Shale, reported an adjusted EBITDA of $304 million in the fourth quarter—compared to $238 million in the fourth quarter of 2017.

Williams Companies reaffirmed its adjusted EBITDA guidance range of $4.85 billion–$5.15 billion for 2019, which implies ~8% YoY growth.

Recently, Williams Companies stock has been on a solid uptrend. So far, the stock has risen ~23% in 2019, while the energy sector (XLE) has risen ~13% during the same period. Read How’s Williams Companies Stock Valued? to learn more.

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