Williams Companies beats first-quarter profit estimates on favorable acquisitions

Southwest Gas Holdings

06/05/2024 22:04

May 6 (Reuters) - Williams Companies  WMB.N  beat
first-quarter profit estimates on Monday, as the pipeline
operator benefited from increased rates and favorable
contributions from acquisitions.
    Shares up 1.3% at $39.58 in aftermarket trade.
    Tulsa, Oklahoma-based Williams said its Transmission & Gulf
of Mexico unit benefited from contributions from the Gulf Coast
Storage and MountainWest acquisitions.
    The pipeline operator had said in December it would acquire
natural gas storage assets from an affiliate of Hartree Partners
LP for $1.95 billion and the MountainWest Pipelines business
acquisition from Southwest Gas Holdings  SWX.N  for $1.07
billion was announced in 2022.
    The company's segment includes Transco, the nation's
largest-volume interstate natural gas pipeline system, and
Northwest Pipeline, a bi-directional interstate natural gas
transmission pipeline and storage system.
    Quarterly adjusted core profit from the unit was up about
15% to $839 million from a year earlier.
    Earnings were also helped by higher rates in the Northeast
G&P segment - which provides wet and dry gas gathering and
transportation infrastructure - that posted quarterly adjusted
core profit of $504 million, up about 7% from a year earlier.
    Williams reported a profit of 59 cents per share for the
quarter ended March 31, compared with analysts' average estimate
of 48 cents per share, according to LSEG data.

 (Reporting by Tanay Dhumal in Bengaluru; Editing by Alan
Barona)
 ((Tanay.Dhumal@thomsonreuters.com; Twitter: https://twitter.com/TanayDhumal;))