Why Is The Williams Companies (WMB) Up 6.6% Since Last Earnings Report?

Core Viewpoint - The Williams Companies reported mixed third-quarter earnings, with adjusted earnings per share of 49 cents, missing estimates, while revenues of $2.9 billion also fell short of expectations, primarily due to weaker product sales, although year-over-year performance showed improvement [3][4]. Financial Performance - Adjusted earnings per share for Q3 2025 were 49 cents, below the Zacks Consensus Estimate of 51 cents, but up from 43 cents in the same quarter last year [3]. - Revenues totaled $2.9 billion, missing estimates by $113 million, but increased from $2.7 billion year-over-year, supported by higher service revenues and gains from commodity derivatives [4]. - Adjusted EBITDA was $1.9 billion, reflecting a 12.7% year-over-year increase, while cash flow from operations rose 15.8% to $1.4 billion [5]. Segment Analysis - Transmission & Gulf of America segment reported adjusted EBITDA of $947 million, up 14.1% year-over-year, exceeding estimates [10]. - West segment's adjusted EBITDA was $367 million, up 11.2% from the previous year, but below estimates [11]. - Northeast G&P segment saw adjusted EBITDA of $505 million, a 4.3% increase year-over-year, but missed estimates [12]. - Gas & NGL Marketing Services segment posted adjusted EBITDA of $11 million, significantly up from $4 million, beating estimates [13]. - Other segment's adjusted EBITDA was $90 million, a 63.6% increase from the previous year, also exceeding estimates [13]. Strategic Initiatives - The company advanced key growth projects, including major expansions in natural gas capacity and reliability, such as the Alabama-Georgia Connector and the Louisiana Energy Gateway [6][7]. - Williams expanded its Socrates platform by approximately $400 million to $2 billion and initiated new Power Innovation initiatives, focusing on lower-carbon energy solutions [8]. - The company sold Haynesville E&P assets and formed a strategic partnership with Woodside, reinforcing its commitment to capital-efficient growth [9]. Costs and Capital Expenditures - Total costs and expenses for the quarter were $1.8 billion, nearly 1% lower than the previous year [14]. - Capital expenditures were reported at $2.9 billion, with cash and cash equivalents of $70 million and long-term debt of $25.6 billion, resulting in a debt-to-capitalization ratio of 67.1% [14]. 2025 Guidance - The company maintained its 2025 adjusted EBITDA guidance at a midpoint of $7.75 billion, with a projected range of $7.6 billion to $7.9 billion [15]. - Growth capital spending forecast was increased by $500 million, now estimated between $3.95 billion and $4.25 billion [15]. - Maintenance capital expenditures are expected to range from $650 million to $750 million, excluding emissions-reduction spending [16]. - The annual dividend was raised by 5.3% to $2 per share for 2025 [16]. Market Outlook - Estimates for the stock have trended upward recently, with a Zacks Rank of 3 (Hold), indicating an expectation of in-line returns in the coming months [19].