NYSE$WMB

Williams Companies Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reported record results driven by natural gas focused strategy.

Williams announced record fourth-quarter and full-year 2021 results, driven by the strength of its natural gas-focused strategy. The company's adjusted EBITDA increased by 11% compared to the fourth quarter of 2020, and net income increased significantly.

  • GAAP net income of $621 million, or $0.51 per diluted share.
  • Adjusted net income of $476 million, or $0.39 per diluted share, up 25% and 26%, respectively, vs. 4Q 2020.
  • Adjusted EBITDA of $1.483 billion, up $147 million or 11% vs. 4Q 2020.
  • Dividend coverage ratio of 2.10x (AFFO basis).

Headline financials

Total Revenue

$3.26B

Previous: $2.09B+55.7%
EPS (adj)

$0.39

Previous: $0.31+25.8%
Dividend Coverage

2.1

Previous: 1.91+9.9%
Capital Expenditures

$282M

Previous: $301M-6.3%
Free Cash Flow

$857M

Previous: $813M+5.4%
Net Income

$621M

Previous: $208M+198.6%
Operating Income

$2.63B

Previous: $2.2B+19.5%
Gross Profit

$1.22B

Previous: $1.14B+6.8%
Cash & Equivalents

$1.68B

Previous: $142M+1083.1%
Total Assets

$47.6B

Previous: $44.2B+7.8%
Stock-Based Comp

$21M

Previous: $13M+61.5%

Revenue & EPS history

Williams · Revenue · Quarterly

$3.26B

Q4 2021+55.7%vs Q4 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Forward guidance

The company expects 2022 Adjusted EBITDA between $5.6 billion and $6 billion. The company also expects 2022 growth capex between $1.25 billion to $1.35 billion and maintenance capex between $650 million and $750 million, which includes capital for emissions reduction and modernization initiatives.

Tailwinds

  • Expects 3% growth in 2022 with Adjusted EBITDA guidance midpoint of $5.8 billion, yielding 6% CAGR over the last five years
  • Anticipates achieving a leverage ratio midpoint of 3.8x
  • Expectations to generate positive free cash flow (after capex and dividends)
  • Retain financial flexibility
  • Dividend guidance increased 3.7% on an annualized basis to $1.70 in 2022 from $1.64 in 2021.

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 Q4 2021

Historical avgQ4 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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