Williams Companies Beats Q3 Estimates, Sold Bayou Ethane System for $348 Million

(Reuters) — Williams Companies beat third-quarter estimates on Wednesday, as the pipeline operator benefited from a rise in revenues generated from its midstream business.

Pipeline operators like Williams thrive when demand for natural gas rises as this would allow it to cash in on service revenue that makes up for the majority of sales.

Third-quarter service revenue rose to $1.77 billion from $1.69 billion a year earlier, helped by contributions from recent acquisitions and the sale of its Bayou Ethane system pipeline.

Williams, in the third quarter, sold its Bayou Ethane system for $348 million in cash, proceeds from which were used to cement the company's position in Colorado's Denver-Julesburg (DJ) Basin.

The company's adjusted net income was 45 cents per share for the three months ended September 30, beating average analysts' expectations of 41 cents per share, according to LSEG data.

Additionally, the company raised its adjusted EBITDA guidance midpoint by $100 million to $6.7 billion for the year.

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