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Williams Companies’ Q1 Earnings Rose 7%


May. 2 2019, Published 12:05 p.m. ET

Williams Companies

Williams Companies (WMB) reported its first-quarter earnings after the markets closed on May 1. The company reported an adjusted EBITDA of $1.21 billion, which missed the consensus estimates for the quarter ending March 31. In the first quarter of 2018, Williams Companies reported an EBITDA of $1.14 billion—growth of ~7% YoY (year-over-year). The distributable cash flow grew 8% YoY, while the dividend coverage ratio was 1.7x.

WMB ebitda

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So far, Williams Companies stock has been upbeat this year. The stock has rallied more than 25% and significantly beat the energy (XLE) sector at large.

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Earnings highlights

For the first quarter, Williams Companies reported total revenues of $2.05 billion—a drop of more than 2% YoY. Williams Companies’ cash flow from operations increased to $775.0 million in the first quarter—an increase of 12% compared to the first quarter of 2018. Williams Companies placed the Gulf Connector LNG supply project in-service in January, which had a positive impact on its cash flows.

With the help of asset sales in the last three years, Williams Companies’ leverage profile has improved. The company expects the leverage to come down below 4.6x in 2019 compared to the previous forecast of 4.75x.

Williams Companies lowered its capital investment guidance midpoint from $2.8 billion to $2.4 billion for 2019 due to its 50% stake sale in Jackalope Gas Gathering services last month. Williams Companies’ management increased its net income guidance range to $1.10 billion–$1.40 billion for 2019 from $1.05 billion–$1.35 billion earlier.

Enterprise Products Partners (EPD) released its quarterly earnings on May 1. The company’s adjusted EBITDA rose from $1.69 billion in the first quarter of 2018 to $1.99 billion in the first quarter. To learn more, read Enterprise Products’ Q1 Earnings Beat Estimates.


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