The Company in a Nutshell
- WMB operates a natural gas gathering capacity of 23.3 Bcf/d, a processing capacity of 7.3 Bcf/d, a transmission capacity of 22.5 Bcf/d and ~24 MMBbls of NGL storage capacity.
- Its fee-based revenues and long-term contracts with credible parties ensure cash flow visibility.
- WMB is favorably situated to benefit from growing natural gas demand in the U.S.
- We do not cover Williams Companies at the moment.
Date Reviewed | N/A |
Company Name | Williams Companies Inc |
Symbol | WMB |
Sector | Energy |
Industry | Oil & Gas Midstream |
Beta | 1.08 |
PRO Rating | 3 |
Dividend Safety | 3 |
Business Model
The Williams Companies, Inc. is an energy company. Its segments include Transmission & Gulf of Mexico, Northeast G&P, West, and Gas & NGL Marketing Services. Transmission & Gulf of Mexico segment comprises of its interstate natural gas pipelines, Transco and Northwest Pipeline, as well as natural gas gathering and processing and crude oil production handling and transportation assets in the Gulf Coast region. The Northeast G&P segment comprises of its midstream gathering, processing and fractionation businesses in the Marcellus Shale region, and the Utica Shale region of eastern Ohio. West segment comprises of its gas gathering, processing, and treating operations in the Rocky Mountain region of Colorado and Wyoming, the Barnett Shale region of north-central Texas, the Eagle Ford Shale region of South Texas, the Haynesville Shale region, and the Mid-Continent region. The Gas & NGL Marketing Services segment includes its natural gas liquids (NGL) and natural gas marketing services.
Current price | 44.89 |
ROE | 27.50 % |
ROIC | 7.35 % |
Shareholder Yield | 0.40 % |
5-Yr Total Return | 148.65 % |
1-Yr Total Return | 38.25 % |
Next Earnings Date | 10-30-24 |
Latest Quarter Information
What the CEO said:
Our 8 percent higher Adjusted EBITDA was driven by the continued outperformance of our transmission, storage and gathering businesses, which delivered 13 percent higher Adjusted EBITDA compared to the same period last year. Contracted transmission capacity achieved another record in the first quarter and our Transco projects recently placed into service contributed additional fee-based revenues, as did our immediately accretive acquisitions, including the Gulf Coast storage portfolio that we closed in the quarter.
What we say:
06-25-2024, WMB reported an adjusted net income of $719M, adjusted EBITDA of $1.934B, CFFO of $1.234B, and AFFO of $1.507B. The company achieved contracted transmission capacity of 33.9 Bcf/d – up 4.3% from 1Q'23. During the quarter, WMB acquired six storage facilities with a total capacity of 115 Bcf, placed Transco's Carolina Market Link into service, and continued the execution of additional transmission, gathering & processing, and Deepwater Gulf of Mexico projects. WMB expects AEBITDA of $6.8B-$7.1B and expects 2024 growth capex of $1.45B-$1.75B and maintenance capex of $1.1B-$1.3B.
Investment Thesis
Dividend Triangle
5-Yr Rev. Growth | 4.65 % |
5-Yr EPS Growth | 0.00 % |
5-Yr Div Growth | 5.65 % |
Potential Risks
Debt/Equity | 2.15 |
Financial Debt to EBITDA (TTM) | 4.50 |
Current Ratio (Quarterly) | 0.75 |
Credit Score | 57 |
Dividend Growth Perspective
Dividend ($) | 1.9 |
Dividend Yield Fwd | 4.20 % |
Dividend Frequency | Quarterly |
Average 5-Yr Yield | 6.15 % |
Payout Ratio (%) | 66.60 |
Cash Payout Ratio (%) | 74.40 |
DGR 1-Yr | 6.15 |
DGR 3-Yr | 3.80 |
DGR 5-Yr | 5.65 |
DGR Streak | 6 |
Chowder Score | 9.85 |
Next DVD PMT | 09-30-24 |
Valuation
(Data for `ddm_recent_annual_dividend` field are missing to build DDM tables)
Video Tutorial: How to Read the Stock Cards DDM Valuation
Market Cap | 55 B |
PE Ratio | 19.35 |
Fwd PE | 22.25 |
Price to Book Ratio | 4.45 |
DDM Valuation | N/A |
Average 5-Yr PE | 63.91 |
Value Score | 61 |
- All financial metrics are updated weekly.
- The DSR PRO rating and Dividend Safety Score are updated quarterly.
- The analysis (investment thesis, risk potential, dividend growth perspective and DDM calculation) is reviewed every 6 months.
- The PDF format includes only comments (no metrics) and is reviewed every 6 months.