Williams Cos. Exceeds Q2 Estimates, Boosted by New Acquisitions
(Reuters) — Pipeline operator Williams Companies beat second-quarter profit estimates on Monday, helped by gains from acquisitions and expansion projects.
Williams has made a series of acquisitions in recent past to boost its capacity, hoping to tap into an expected spike in demand for liquefied natural gas exports and power-intensive AI data centers.
The pipeline operator had said in December last year it would acquire natural gas storage assets in the U.S. Gulf coast from an affiliate of Hartree Partners for $1.95 billion and closed the deal in January this year.
RELATED: Williams' $1 Billion Gas Pipeline Blocked by U.S. Appeals Court, Derailing Five-State Project
Earlier in 2023, it had also closed a $1.07 billion deal for MountainWest Pipelines.
The Tulsa, Oklahoma-based company said its Transmission and Gulf of Mexico unit's adjusted core profit rose 8.6% to $812 million.
The gains helped it offset weaker volumes of natural gas gathering in several segments and lower realized gains on gas hedges.
The U.S. natural gas prices have slumped about 26% this year, amid mild weather and oversupply in storage.
Williams, whose Transco pipeline transports about 15% of the nation's natural gas, said it is on tracks to achieve the top half of its 2024 adjusted core forecast of $6.8 billion and $7.1 billion.
The company reported an adjusted profit of 43 cents per share for the quarter ended June 30, compared with analysts' average estimate of 38 cents per share, according to LSEG data.
Related News
Related News
- Phillips 66 to Shut LA Oil Refinery, Ending Major Gasoline Output Amid Supply Concerns
- FERC Sides with Williams in Texas-Louisiana Pipeline Dispute with Energy Transfer
- U.S. Appeals Court Blocks Kinder Morgan’s Tennessee Pipeline Permits
- ConocoPhillips Eyes Sale of $1 Billion Permian Assets Amid Marathon Acquisition
- Valero Considers All Options, Including Sale, for California Refineries Amid Regulatory Pressure
- U.S. Appeals Court Blocks Kinder Morgan’s Tennessee Pipeline Permits
- Malaysia’s Oil Exports to China Surge Amid Broader Import Decline
- U.S. LNG Export Growth Faces Uncertainty as Trump’s Tariff Proposal Looms, Analysts Say
- Marathon Oil to Lay Off Over 500 Texas Workers Ahead of ConocoPhillips Merger
- Valero Considers All Options, Including Sale, for California Refineries Amid Regulatory Pressure
Comments