Summary
Williams Companies, Inc. (WMB) reported first-quarter 2022 results showing a decrease in net income attributable to common stockholders to $379 million ($0.31 per diluted share) from $425 million ($0.35 per diluted share) in the prior year quarter. This decline was primarily due to a significant net unrealized loss on commodity derivatives ($123 million) and the absence of a favorable impact from Winter Storm Uri experienced in Q1 2021. Despite lower overall revenues ($2,524 million vs. $2,612 million), the company saw increases in service revenues, driven by higher gathering and processing rates due to favorable commodity prices and expanded capacity, particularly from the Leidy South expansion project. Operationally, the company continues to execute its strategy of providing critical natural gas infrastructure, with a strong focus on growth capital expenditures for 2022, projected between $2.25 billion and $2.35 billion. This includes significant investments in Transco expansions, the recent Trace Acquisition in the Haynesville Shale, and development of upstream oil and gas properties. WMB also recently retired $1.25 billion of senior notes and plans to retire another $750 million, demonstrating proactive debt management. The company maintained its investment-grade credit ratings and paid a quarterly dividend of $0.425 per share.
Financial Highlights
50 data points| Revenue | $2.52B |
| SG&A Expenses | $154.00M |
| Operating Expenses | $1.87B |
| Operating Income | $654.00M |
| Interest Expense | $286.00M |
| Net Income | $380.00M |
| EPS (Basic) | $0.31 |
| EPS (Diluted) | $0.31 |
| Shares Outstanding (Basic) | 1.22B |
| Shares Outstanding (Diluted) | 1.22B |
Key Highlights
- 1Net income attributable to common stockholders decreased to $379 million from $425 million year-over-year, largely due to a $123 million net unrealized loss on commodity derivatives.
- 2Total revenues declined to $2,524 million from $2,612 million, primarily impacted by lower product sales and the derivative losses.
- 3Service revenues increased by 6% to $1,537 million, driven by higher gathering and processing rates and the Transco Leidy South expansion project.
- 4Growth capital expenditures for 2022 are projected between $2.25 billion and $2.35 billion, supporting ongoing expansion projects and strategic acquisitions like the recent Trace Acquisition.
- 5The company early retired $1.25 billion of senior unsecured notes in January 2022 and plans to retire another $750 million in May 2022.
- 6Cash provided by operating activities increased to $1,082 million from $915 million, reflecting improved operational performance before derivative impacts and changes in working capital.
- 7Williams Companies maintained its investment-grade credit ratings (BBB/Baa2/BBB) from S&P, Moody's, and Fitch, with stable outlooks.