NYSE$WMB

Williams Companies Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Williams reported higher results across key metrics, exceeding expectations and trending toward the higher end of previously increased 2021 financial guidance.

Williams announced strong second-quarter results with a 6% increase in Adjusted EBITDA, driven by record quarterly gas gathering volumes and successful execution of Transco expansion projects. The company is trending towards the higher end of its previously increased 2021 financial guidance.

  • Net income of $304 million, or $0.25 per diluted share (EPS).
  • Adjusted EPS of $0.27 per diluted share – up 8% from 2Q 2020.
  • Adjusted EBITDA of $1.317 billion – up $77 million or 6% from 2Q 2020.
  • Achieved record quarterly gathering volumes of 13.79 Bcf/d.

Headline financials

Total Revenue

$2.28B

Previous: $1.78B+28.2%
EPS (adj)

$0.27

Previous: $0.25+8.0%
Adjusted EBITDA

$1.32B

Previous: $1.24B+6.2%
Cash Flow from Ops

$1.06B

Previous: $1.14B-7.5%
Dividend Coverage

1.85

Previous: 1.64+12.8%
Capital Expenditures

-$685M

Previous: -$613M-11.7%
Free Cash Flow

-$381M

Previous: -$310M-22.9%
Net Income

$304M

Previous: $303M+0.3%
Operating Income

$600M

Previous: $612M-2.0%
Gross Profit

$1.9B

Previous: $1.46B+30.3%
Cash & Equivalents

$1.2B

Previous: $1.13B+6.0%
Total Assets

$45.5B

Previous: $45.3B+0.4%
Stock-Based Comp

$19M

Previous: $15M+26.7%

Revenue & EPS history

Williams · Revenue · Quarterly

$2.28B

Q2 2021+28.2%vs Q2 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Forward guidance

The company expects 2021 Adjusted EBITDA at the higher end of the previously increased guidance range of $5.2 billion to $5.4 billion and Available Funds from Operations between $3.7 billion and $3.9 billion. Moreover, the leverage ratio is expected to be less than the 4.2x midpoint for year-end 2021; growth capex is reaffirmed at $1 billion to $1.2 billion. Importantly, Williams expects to generate positive free cash flow (after capital expenditures and dividends), allowing it to retain financial flexibility.

Tailwinds

  • Adjusted EBITDA expected at the higher end of the previously increased guidance range of $5.2 billion to $5.4 billion.
  • Available Funds from Operations between $3.7 billion and $3.9 billion.
  • Leverage ratio expected to be less than the 4.2x midpoint for year-end 2021.
  • Growth capex reaffirmed at $1 billion to $1.2 billion.
  • Expects to generate positive free cash flow after capital expenditures and dividends.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+0.5%

Avg return

Earnings day

+1.0%

Avg return

5 days after

+1.7%

Avg return

30 days after

56%

41 / 73 earnings

Positive

+11.6%

Q2 2020

Best reaction

-10.0%

Q2 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.0%-4.7%-4.5%
Q4 2025+1.5%+6.5%+8.4%
Q3 2025-4.3%+0.9%+7.8%
Q2 2025-2.1%-3.9%-4.4%
Q1 2025-2.6%-4.2%+0.6%
Q4 2024+4.8%+5.4%+4.5%
Q3 2024+4.5%+7.3%+7.2%
Q2 2024+1.5%+2.5%+5.3%
Q1 2024+1.1%+2.5%+7.5%
Q4 2023+0.4%+0.8%+8.7%
Q3 2023+4.0%+3.9%+8.4%
Q2 2023+1.0%+1.1%+1.7%
Q1 2023-0.7%+0.9%+3.2%
Q4 2022-1.5%-0.3%-8.4%
Q3 2022+2.4%+2.7%+6.2%
Q2 2022-3.6%-5.5%-0.2%
Q1 2022+3.0%+6.9%+9.2%
Q4 2021-0.4%+3.6%+10.4%
Q3 2021+1.1%+1.7%-5.2%
Q2 2021+0.3%+0.0%-1.6%
Q1 2021+0.9%+3.9%+12.0%
Q4 2020+5.3%+0.9%+3.8%
Q3 2020-1.1%-4.8%+12.8%
Q2 2020+11.6%+9.0%+11.2%
Q1 2020+2.4%+5.0%+11.4%
Q4 2019+2.6%-5.1%-46.3%
Q3 2019-3.9%+0.5%-2.2%
Q2 2019+2.0%-5.0%-5.7%
Q1 2019-3.1%-3.4%-6.9%
Q4 2018+0.5%+2.0%+3.1%
Q3 2018+6.4%+6.3%+4.6%
Q2 2018+4.1%+5.3%-0.5%
Q1 2018+0.5%+1.2%+2.8%
Q4 2017+0.7%-2.9%-8.6%
Q3 2017-1.4%+1.0%+2.8%
Q2 2017-2.1%-2.2%-5.2%
Q1 2017-2.6%+1.0%-4.8%
Q4 2016-3.1%-2.4%-1.1%
Q3 2016-3.7%-3.6%+3.5%
Q2 2016-0.0%+6.9%+16.6%
Q1 2016+6.1%
Q4 2015+6.1%
Q3 2015+2.2%
Q2 2015-0.2%
Q1 2015-1.4%
Q4 2014-0.5%
Q3 2014+1.8%
Q2 2014-2.5%
Q1 2014+2.5%
Q4 2013+3.6%
Q3 2013-4.2%
Q2 2013+6.8%
Q1 2013-4.6%
Q4 2012-3.9%
Q3 2012-3.2%
Q2 2012-2.7%
Q1 2012+4.9%
Q4 2011+2.6%
Q3 2011+5.7%
Q2 2011-10.0%
Q1 2011-0.5%
Q4 2007+2.1%
Q4 2010+2.1%
Q3 2010+3.9%
Q2 2010-0.1%
Q1 2009-9.8%
Q1 2010+1.1%
Q4 2009+1.5%
Q3 2009+3.3%
Q3 2008+3.3%
Q4 2008-2.7%
Q2 2009-2.7%
Q2 2008-2.7%

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