Williams Companies' Q3 Earnings Beat Estimates, Sales Rise Y/Y

Core Insights - The Williams Companies, Inc. (WMB) reported third-quarter 2024 adjusted earnings per share of 43 cents, exceeding the Zacks Consensus Estimate of 42 cents, although down from 45 cents in the same period last year due to weak performance in the Northeast G&P Segment [1][6] - Revenues for the quarter reached $2.7 billion, surpassing the Zacks Consensus Estimate by$6 million and increasing from $2.6 billion year-over-year, driven by higher service revenues [2][6] - Adjusted EBITDA for the quarter totaled$1.7 billion, reflecting a 3% year-over-year increase, supported by contributions from acquisitions and expansion projects [6][11] Project Developments - Significant progress was made on key projects, including the early completion of Transco's Regional Energy Access and the in-service placement of Mountain West's Uinta Basin expansion [3][4] - The company initiated construction on the Transco's Commonwealth Energy Connector and secured favorable rulings for the Louisiana Energy Gateway project, alongside starting two solar projects in the Northeast [4][5] Segment Performance - The Transmission & Gulf of Mexico segment reported an adjusted EBITDA of $830 million, up 10.1$330 million, a 4.8% increase from the previous year, driven by DJ Basin acquisitions and higher OPPL volumes [8] - The Northeast G&P segment saw a slight decline in adjusted EBITDA to $484 million, down 0.2$4 million from $16 million due to lower marketing margins [9] Financial Overview - Total costs and expenses for the quarter were$1.8 billion, marking a nearly 16% increase from the prior year [9][10] - Capital expenditures (CapEx) were also reported at $1.8 billion, with cash and cash equivalents of$762 million and long-term debt of $24.8 billion, resulting in a debt-to-capitalization ratio of 62.5$7 billion and $7.15 billion, with capital expenditure plans remaining intact [11] - For 2025, WMB anticipates adjusted EBITDA between$7.2 billion and $7.6 billion, with growth CapEx expected to range from$1.65 billion to $1.95 billion [12] - The leverage ratio for 2024 is projected to settle at a midpoint of 3.80x, and the company plans to increase its dividend by 6.1$1.90 per share [13]