Williams(US:WMB)2024-08-05 20:16Financial Performance - GAAP net income for Q2 2024 was $401 million, or $0.33 per diluted share, a decrease of $146 million compared to Q2 2023[6] - Adjusted EBITDA reached a record $1.667 billion, up $56 million or 3% from Q2 2023[2] - Cash flow from operations (CFFO) totaled $1.279 billion, reflecting a decrease from $1.377 billion in Q2 2023[5] - Available funds from operations (AFFO) increased to $1.250 billion, up $35 million or 3% year-over-year[2] - The company reported a year-to-date net income decrease of $441 million, primarily due to unfavorable changes in commodity derivatives and higher operating costs[6] - Total revenues for the three months ended June 30, 2024, were $2.336 billion, compared to $2.483 billion for the same period in 2023, reflecting a decrease of approximately 5.9%[25] - Net income attributable to The Williams Companies, Inc. for the three months ended June 30, 2024, was $401 million, compared to $460 million in 2023, a decrease of approximately 12.8%[25] - Basic earnings per share from continuing operations for the three months ended June 30, 2024, were $0.33, down from $0.45 in 2023, a decline of about 26.7%[25] - Operating income for the three months ended June 30, 2024, was $696 million, compared to $870 million in 2023, a decrease of approximately 20%[25] - Net income for the six months ended June 30, 2024, was $1,088 million, compared to $1,451 million for the same period in 2023, representing a decrease of about 25%[27] Capital Expenditures and Investments - Adjusted EBITDA for 2024 is expected to be between $6.8 billion and $7.1 billion, with a growth capex of $1.45 billion to $1.75 billion[19] - For 2025, Adjusted EBITDA is projected to be between $7.2 billion and $7.6 billion, with growth capex between $1.65 billion and $1.95 billion[19] - The company anticipates a leverage ratio midpoint of 3.85x for 2024 and has increased the dividend by 6.1% to $1.90 from $1.79 in 2023[19] - Total capital expenditures for the year amounted to $2,516 million, with the fourth quarter alone contributing $671 million[40] - The total capital investments for the year reached $4,279 million, with significant contributions from property, plant, and equipment[40] - The company made purchases of businesses net of cash acquired totaling $1,568 million for the year[40] Cash Flow and Liquidity - Cash provided by operating activities was $2,513 million for the six months ended June 30, 2024, down from $2,891 million in 2023, a reduction of approximately 13%[27] - Cash and cash equivalents at the end of the period were $55 million, down from $551 million at the end of June 30, 2023, a decrease of about 90%[27] - The dividend coverage ratio was 2.16x on an AFFO basis, slightly down from 2.23x in Q2 2023[5] - Common dividends paid increased from $1,091 million in 2023 to $1,158 million in 2024, an increase of approximately 6%[27] Operational Highlights - Williams exited its Aux Sable joint venture for $160 million and consolidated ownership of the Gulf of Mexico Discovery system, enhancing operational efficiency[17][18] - Construction activities have commenced on the Louisiana Energy Gateway project and Transco's Texas to Louisiana Energy Pathway expansion[4] - Significant emissions reductions were achieved by replacing 57 compressor units across Transco and Northwest Pipeline[2] Future Outlook - The company is on track to achieve the top half of its 2024 financial guidance, with a projected five-year compound annual growth rate of over 12% for Adjusted EPS from 2020 to 2025[3] - The company expects net income for Q4 2023 to be approximately $1,168 million, reflecting a positive outlook for the upcoming quarter[48] - Net income from continuing operations for 2024 is projected to be between $2,094 million and $2,344 million, with a mid-point guidance of $2,219 million[54] - The company plans a 5%-7% growth in common dividends paid[54] - The company highlights the importance of market conditions and regulatory environments as key factors influencing future performance[56]