Pipeline Operator Williams Companies Beats Q2 Profit Estimates on Higher Natural Gas Volumes

(Reuters) — Williams Companies, a pipeline operator, exceeded second-quarter profit estimates driven by increased natural gas transportation volumes and benefits from certain acquisitions.

The company reported an adjusted profit of 42 cents per share for the quarter ended June 30, beating analysts' average estimate of 39 cents, according to Refinitiv.

The United States has become the world's largest LNG producer by installed capacity in 2022, benefiting pipeline operators like Williams Companies, thanks to a surge in plant construction and a decade of surging shale gas discoveries. U.S. LNG exports are projected to reach 12.1 billion cubic feet per day (Bcf/d) this year and 12.7 Bcf/d next year.

During the quarter, Williams' natural gas pipeline from its Transmission and Gulf of Mexico segment transported volumes of 19.9 trillion British thermal units (Tbtu) per day, compared with 16.9 Tbtu last year. The company reiterated its 2023 adjusted core profit forecast of between $6.4 billion and $6.8 billion.

"We also benefited from our first full quarter of contributions from the MountainWest Pipeline transmission and storage assets," said Alan Armstrong, president, and CEO.

MountainWest consists of approximately 2,000 miles of interstate natural gas pipeline systems primarily located across Utah, Wyoming, and Colorado, with a total transmission capacity of about 8 Bcf/d.

However, the company's quarterly revenue declined 0.3% to $2.48 billion, falling short of estimates of $2.65 billion, mainly due to a drop in product sales revenue.

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