01—Abstract
Summary
Summary of the 10-K filed February 25, 2025. Cited figures are marked; the original filing is the authoritative source.
Williams Companies, Inc. (WMB) reported a net income of $2.225 billiona for the year ended December 31, 2024, a decrease of 30% compared to the prior year's $3.179 billion.
This decline was primarily driven by a significant decrease in the net gain from commodity derivatives, which swung from a gain of $956 millionb in 2023 to a loss of $250 million in 2024. Despite this, service revenues saw a healthy 9% increase to $7.628 billion, bolstered by higher volumes from recent acquisitions and the successful integration of expansion projects, particularly within the Transmission & Gulf of America segment. Financially, the company ended the year with $60 million in cash and cash equivalents.
Capital expenditures and acquisitions totaled approximately $4.8 billionc, funded primarily by $4.974 billion in cash from operating activities. Williams also returned substantial capital to shareholders through $2.3 billion in dividends paid to common stockholders. The company's outlook for 2025 remains focused on earnings and cash flow growth, supported by ongoing projects and strategic acquisitions, with planned growth capital expenditures of $1.65 billion to $1.95 billion.
02—Key points
Key Highlights
- Net income attributable to The Williams Companies, Inc. was $2.225 billion for 2024, down 30% from $3.179 billion in 2023.
- Total revenues increased by 3% to $10.503 billion in 2024, driven by a 9% rise in service revenues to $7.628 billion.
- The company made significant strategic acquisitions in 2024, including the full acquisition of Discovery and the Gulf Coast Storage Acquisition.
- Williams invested $2.573 billion in capital expenditures in 2024, a slight increase from $2.516 billion in 2023.
- Cash provided by operating activities was $4.974 billion in 2024, a decrease from $5.938 billion in 2023.
- The company paid $2.316 billion in common dividends in 2024, an increase from $2.179 billion in 2023.
- Williams ended 2024 with $60 million in cash and cash equivalents, down significantly from $2.150 billion at the end of 2023.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 25, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $10.50B$10.91B | −3.7% |
| SG&A Expenses | $708.00M$665.00M | +6.5% |
| Operating Expenses | $7.16B$6.60B | +8.6% |
| Operating Income | $3.34B$4.31B | −22.5% |
| Net Income | $2.23B$3.18B | −30.0% |
| EPS (Basic) | $1.82$2.61 | −30.3% |
| EPS (Diluted) | $1.82$2.60 | −30.0% |
| Shares Outstanding (Basic) | 1.22B1.22B | +0.1% |
| Shares Outstanding (Diluted) | 1.22B1.22B | 0.0% |
05—Questions
Frequently Asked Questions
What was the primary driver for the decrease in net income in 2024?
The primary driver for the decrease in net income was a significant swing in the net gain from commodity derivatives, which moved from a substantial gain of $956 million in 2023 to a loss of $250 million in 2024.
How did Williams fund its capital expenditures and acquisitions in 2024?
Williams funded its approximately $4.8 billion in capital expenditures and acquisitions primarily through $4.974 billion generated from operating activities, supplemented by proceeds from long-term debt issuances and other financing activities.
What is Williams' outlook for capital spending in 2025?
Williams plans to invest between $1.65 billion and $1.95 billion in growth capital and investment expenditures in 2025, excluding acquisitions. This spending will be focused on projects in the Haynesville Shale basin, Transco expansions, and the Northeast G&P business.
How did recent acquisitions impact the company's performance?
Recent acquisitions, such as the full acquisition of Discovery and the Gulf Coast Storage Acquisition, contributed positively to service revenues, particularly within the Transmission & Gulf of America segment, by increasing volumes and expanding the company's storage footprint.
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