NYSE$WMB

Williams Companies Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Williams delivered another year of record results, with strong performance driven by its natural gas-focused strategy and strategic acquisitions.

Williams announced unaudited financial results for Q4 and the year ended December 31, 2023, showcasing continued strength in its base business. The company reported GAAP net income of $1.146 billion, or $0.94 per diluted share, and adjusted EBITDA of $1.721 billion for the quarter. For the full year, Williams achieved record results, with adjusted EBITDA up 6% year-over-year.

  • GAAP net income was $1.146 billion, or $0.94 per diluted share.
  • Adjusted EBITDA was $1.721 billion.
  • Dividend coverage ratio of 2.43x (AFFO basis).
  • Completed Cardinal and Susquehanna gathering & processing expansions in 4Q 2023.

Headline financials

Total Revenue

$2.78B

Previous: $2.93B-5.0%
EPS (adj)

$0.48

Previous: $0.53-9.4%
Dividend Coverage

2.43

Previous: 2.62-7.3%
Capital Expenditures

-$806M

Previous: $806M-200.0%
Net Income

$1.15B

Previous: $668M+71.6%
Operating Income

$4.31B

Previous: $3.02B+42.8%
Gross Profit

$1.81B

Previous: $1.25B+45.1%
Stock-Based Comp

$18M

Previous: $15M+20.0%

Revenue & EPS history

Williams · Revenue · Quarterly

$2.78B

Q4 2023-5%vs Q4 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

The company expects 2024 Adjusted EBITDA between $6.8 billion and $7.1 billion. For 2025, the company expects Adjusted EBITDA between $7.2 billion and $7.6 billion. Williams anticipates a leverage ratio midpoint for 2024 of 3.85x and has increased the dividend by 6.1% on an annualized basis to $1.90 in 2024 from $1.79 in 2023.

Tailwinds

  • Adjusted EBITDA guidance range of $6.8 billion to $7.1 billion in 2024.
  • Adjusted EBITDA guidance range of $7.2 billion to $7.6 billion in 2025.
  • Expects 2024 growth capex between $1.45 billion and $1.75 billion
  • Expects 2024 maintenance capex between $1.1 billion and $1.3 billion, which includes capital of $350 million based on midpoint for emissions reduction and modernization initiatives.
  • Increased the dividend by 6.1% on an annualized basis to $1.90 in 2024 from $1.79 in 2023.

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 2023

Historical avgQ4 2023

+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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