Williams Companies Inc (WMB) Reports 10% Increase in Q3 Net Income
GAAP net income of $654 million, up 10% from Q3 2022
Adjusted EBITDA of $1.652 billion, a $15 million increase from Q3 2022
Dividend coverage ratio of 2.26x on an AFFO basis
Full-year 2023 guidance midpoint increased to $6.7 billion Adjusted EBITDA
Williams Companies Inc (NYSE:WMB) announced its unaudited financial results for the three and nine months ended September 30, 2023, on November 1, 2023. The company reported a 10% increase in GAAP net income, reaching $654 million, or $0.54 per diluted share. The adjusted net income was $547 million, or $0.45 per diluted share. The company's adjusted EBITDA rose by $15 million from Q3 2022, reaching $1.652 billion.
Financial Highlights
Williams Companies Inc (NYSE:WMB) reported a cash flow from operations (CFFO) of $1.234 billion and available funds from operations (AFFO) of $1.230 billion. The company's dividend coverage ratio stood at 2.26x on an AFFO basis. The company also improved its balance sheet with a leverage ratio of 3.45x.
Company Performance and Future Prospects
Williams Companies Inc (NYSE:WMB) has shown a strong performance in its base business, leading to solid financial results. The company's CEO, Alan Armstrong, commented on the results, stating,
Williams delivered another quarter of impressive accomplishments with Adjusted EBITDA up 9 percent year-to-date 2023, despite dramatically lower natural gas prices. We expect the strong performance to continue, providing confidence to raise our guidance midpoint by $100 million to $6.7 billion Adjusted EBITDA for 2023."
Key Financial Tables
Williams Companies Inc (NYSE:WMB) reported GAAP net income of $654 million for Q3 2023, up from $599 million in Q3 2022. The net income per share increased from $0.49 in Q3 2022 to $0.54 in Q3 2023. The company's cash flow from operations decreased from $1.490 billion in Q3 2022 to $1.234 billion in Q3 2023. The adjusted EBITDA increased from $1.637 billion in Q3 2022 to $1.652 billion in Q3 2023.
Analysis of Company's Performance
Williams Companies Inc (NYSE:WMB) has shown a strong performance in Q3 2023, with a 10% increase in GAAP net income and a slight increase in adjusted EBITDA. The company's strong performance is attributed to the continued strength in its base business. The company also expects this strong performance to continue, leading to an increase in its full-year 2023 guidance midpoint to $6.7 billion Adjusted EBITDA.
Other Pertinent Details
Williams Companies Inc (NYSE:WMB) has also made strategic acquisitions and sold non-core assets to fine-tune its portfolio. The company completed the NorTex Wolf Hollow, South Mansfield, and phase one of Northeast Cardinal Utica expansions. It also sold the non-core Bayou Ethane system for an attractive multiple greater than 14x.
Explore the complete 8-K earnings release (here) from Williams Companies Inc for further details.
This article first appeared on GuruFocus.
