Williams Stock Price, News & Analysis

Williams (NYSE: WMB) announced the acquisition of MountainWest Pipelines Holding Company for an enterprise value of $1.5 billion, which includes $1.07 billion in cash and $0.43 billion in assumed debt. This acquisition enhances Williams' midstream infrastructure, expanding its natural gas services in major Rockies demand markets, including Salt Lake City. The deal is expected to close in 2023 and is based on an estimated 8x EBITDA multiple for 2023. MountainWest operates around 2,000 miles of pipeline with a total transmission capacity of 8 Bcf/d and 56 Bcf of storage capacity.

Southwest Gas Holdings (SWX) announced a strategic plan to simplify its business structure. The company will sell MountainWest Pipelines to Williams (WMB) for $1.5 billion, using proceeds to pay down a $1.1 billion term loan. Additionally, Southwest Gas plans to spin off its subsidiary, Centuri, into an independent entity focused on utility infrastructure services. This restructure aims to optimize operations, enhance shareholder value, and maintain a stable dividend policy. The anticipated loss from the sale is between $350 million and $425 million, net of tax. The transactions are expected to close in 2023.

Williams (NYSE: WMB) has announced a groundbreaking natural gas certification process in partnership with Coterra Energy and Dominion Energy Virginia. This program aims to provide verified, low-carbon natural gas with a focus on reducing methane emissions. Utilizing Context Labs’ Decarbonization-as-a-Service™ (DaaS™) platform, the certification tracks emissions across the entire value chain. The project is expected to prevent 120,000 metric tons of CO2e emissions over one year, aligning with sustainability goals.

Williams (NYSE: WMB) has announced a non-binding heads of agreement with Sempra Infrastructure (NYSE: SRE) aimed at enhancing access to low-carbon natural gas from the Haynesville basin. The agreement includes gas sales of approximately 0.5 Bcf/d and LNG offtake agreements totaling about 3 million tons per annum. Additionally, a joint venture for pipeline operations is proposed, focusing on Sempra's Gulf Coast LNG export facilities. This strategic effort supports the growing demand for cleaner energy, aligning with Williams’ focus on sustainability and innovation.

Sempra Infrastructure has signed a heads of agreement (HOA) with Williams for LNG offtake and development of gas pipelines to enhance U.S. natural gas market connectivity. The agreement includes negotiating long-term contracts for roughly 3 million tonnes per annum (Mtpa) of LNG from Port Arthur and Cameron LNG Phase 2 projects. Additionally, a partnership to manage the 2.35 Bcfd Cameron Interstate Pipeline is anticipated. This allows Sempra to advance its LNG initiatives amid growing global energy demands. However, the HOA remains non-binding and subject to various risks.

Williams (NYSE: WMB) reported third-quarter 2022 financial results, demonstrating robust growth with GAAP net income of $599 million ($0.49 per diluted share) and adjusted net income of $592 million ($0.48 per diluted share), up significantly from 2021. Adjusted EBITDA rose 15% to $1.637 billion. Cash flow from operations surged 79% to $1.490 billion. The company expects 2022 Adjusted EBITDA towards the high end of $6.1 billion to $6.4 billion. Operational performance improved with gathering volumes at 17 Bcf/d and transmission capacity at 24.4 Bcf/d.

Williams (NYSE: WMB) has announced a regular dividend of $0.425 per share, marking a 3.7% increase from the $0.41 per share in Q4 2021. This dividend, which annualizes to $1.70, will be paid on December 26, 2022, to stockholders on record as of December 9, 2022. Williams has consistently paid dividends every quarter since 1974, showcasing its commitment to returning value to shareholders.

Williams (NYSE: WMB) has signed a memorandum of understanding with Daroga Power to advance its clean hydrogen commercialization strategy. The partnership aims to identify long-term customers for clean hydrogen and establish environmental attribute offtake options in Wyoming, with potential hydrogen deliveries starting in 2025. Williams plans to utilize its extensive pipeline system for hydrogen transport in the Pacific Northwest. This initiative is part of a broader strategy to create a clean energy hub and leverage incentives from the Inflation Reduction Act to meet rising clean energy demand.

Williams (NYSE: WMB) is set to reveal its third-quarter 2022 financial results on October 31, 2022, after market close. The company will host a conference call for analysts and investors on November 1, 2022, at 9:30 a.m. ET. Interested participants can register via the provided link. Williams, headquartered in Tulsa, Oklahoma, operates across the natural gas value chain, handling about 30% of the U.S. natural gas used daily. The firm emphasizes clean energy and holds a significant pipeline network, with over 30,000 miles in operation.