Core Viewpoint - Williams Companies, Inc. reported a mixed performance in its latest earnings report, with adjusted earnings per share beating estimates but showing a decline year-over-year, while revenues also exceeded expectations but decreased compared to the previous year [2][6]. Financial Performance - Adjusted earnings per share for Q4 2023 were 48 cents, surpassing the Zacks Consensus Estimate of 47 cents, but down from 53 cents in the same quarter last year [2]. - Revenues totaled $2.78 billion, exceeding the Zacks Consensus Estimate of $2.76 billion, but down from $2.93 billion year-over-year [2]. - Adjusted EBITDA for the quarter was $1.72 billion, a decrease of 3% year-over-year [3]. Segmental Analysis - Transmission & Gulf of Mexico segment reported adjusted EBITDA of $752 million, up 7.4% year-over-year, driven by higher service revenues and benefits from the NorTex acquisition [4]. - West segment's adjusted EBITDA was $323 million, down 0.9% from $326 million in the prior year, attributed to lower NYMEX-based rates [4]. - Northeast G&P segment achieved adjusted EBITDA of $485 million, up 4.5% from $464 million year-over-year, due to increased rates and volumes [4]. - Gas & NGL Marketing Services segment reported adjusted EBITDA of $69 million, down from $149 million in the prior year [5]. Costs and Capital Expenditure - Total costs and expenses were $1.7 billion, a decline of 8.1% from $1.85 billion in the previous year [6]. - Total capital expenditure was $788 million, slightly down from $806 million a year ago [6]. Guidance - For 2024, the company expects Adjusted EBITDA in the range of $6.8 billion to $7.1 billion, with growth capital expenditure between $1.45 billion and $1.75 billion [7]. - The company anticipates a 6.1% increase in its dividend to $1.90 per share in 2024, up from $1.79 in 2023 [8]. - Looking ahead to 2025, expected Adjusted EBITDA is between $7.2 billion and $7.6 billion [8]. Market Position and Estimates - Estimates for the company have trended downward over the past month, with a Zacks Rank of 3 (Hold) indicating an expectation of in-line returns in the near term [9][11]. - The company has a subpar Growth Score of D and a Momentum Score of F, with an aggregate VGM Score of F [10]. Industry Comparison - Williams Companies operates in the Oil and Gas - Production and Pipelines industry, where competitor Enbridge reported revenues of $8.37 billion, down 15.4% year-over-year, and an EPS of $0.47, slightly up from $0.46 a year ago [12].
Williams Companies, Inc. (The) (WMB) Up 7.9% Since Last Earnings Report: Can It Continue?