Williams(WMB) - 2024 Q4 - Annual Results

Financial Performance - GAAP net income for 2024 was $2.222 billion, or$1.82 per diluted share, while adjusted net income was $2.347 billion, or$1.92 per diluted share[4]. - Full-year 2024 net income decreased by $1.051 billion compared to the prior year, primarily due to unfavorable changes in net unrealized gains/losses on commodity derivatives[12]. - Net income attributable to The Williams Companies, Inc. for 2024 was$2.225 billion, down from $3.179 billion in 2023[31]. - Basic earnings per common share for 2024 were$1.82, compared to $2.61 in 2023, reflecting a decrease of approximately 30$2,346 million, a decrease of 29% from $3,303 million in 2023[35]. - The company reported a net cash provided by operating activities of$5,938 million for 2023, with a forecast of $4,974 million for 2024[63]. - The company reported a net cash used by financing activities of$2,201 million in 2024, compared to a net cash provided of $49 million in 2023[35]. Revenue and EBITDA - Record Adjusted EBITDA reached$7.08 billion, an increase of $301 million or 4.4$7.628 billion, up from $7.026 billion in 2023, representing an increase of approximately 8.6$3,307 million, an increase of 11% from $2,982 million in 2023[36]. - Adjusted EBITDA for 2023 was$6,779 million, with a forecast of $7,080 million for 2024[61]. - Modified EBITDA for 2023 totaled$8,013 million, with a projected $6,656 million for 2024[61]. Capital Expenditures and Investments - 2025 growth capital expenditures are expected to be between$1.65 billion and $1.95 billion, with maintenance capital expenditures between$650 million and $750 million[25]. - Total capital expenditures in 2024 amounted to$2,573 million, compared to $2,516 million in 2023, representing an increase of 2$4,279 million, projected to rise to $4,950 million in 2024[50]. Debt and Equity - Long-term debt rose to$24.736 billion in 2024, up from $23.376 billion in 2023[32]. - The company reported a total stockholders' equity of$12.436 billion in 2024, slightly up from $12.402 billion in 2023[32]. - The company improved its leverage ratio midpoint for 2025 to 3.55x and increased the annualized dividend by 5.3$2.00 in 2025 from $1.90 in 2024[25]. Dividends - A dividend increase of 5.3$2.00, continuing a quarterly dividend since 1974[4]. - Total common dividends paid in 2023 were $2,179 million, projected to increase to$2,316 million in 2024[63]. Operational Highlights - Contracted transmission capacity reached a record 33.4 Bcf/d, up 3.4% from 2023, with significant contributions from Transco expansions[4]. - Six high-return transmission projects were announced in 2024, adding 885 MMcf/d of capacity to serve key demand centers[4]. - The company completed the acquisition of Rimrock's DJ gathering and processing system, enhancing its asset base in the DJ Basin[4]. - The company acquired the remaining 40% of Discovery Producer Services on August 1, 2024, enhancing its market position[38]. Market and Strategic Outlook - The company plans to continue expanding its market presence through strategic investments and acquisitions[50]. - The company plans to maintain a strong focus on market expansion and new technology development in the upcoming years[66]. - Key factors influencing future results include market demand, volatility of prices, and the ability to execute capital projects and investment opportunities[70]. - The company emphasizes the importance of cash flow from operations and the financial condition for future growth and expansion[69]. Risks and Challenges - The company faces risks related to financing, including restrictions from debt agreements and changes in credit ratings[74]. - The impact of geopolitical situations, such as the Russian invasion of Ukraine, is a significant risk factor for the company's operations[74]. - The company acknowledges the risks associated with climate change and the need for effective environmental, social, and governance practices[70].