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Globe and Mail
4 days ago
- Business
- Globe and Mail
Williams Q2 Earnings and Revenues Miss Estimates, Expenses Rise Y/Y
The Williams Companies, Inc. WMB reported second-quarter 2025 adjusted earnings per share of 46 cents, which missed the Zacks Consensus Estimate of 49 cents. This was primarily due to the underperformance of the Gas & NGL Marketing Services segment on a year-over-year basis, as well as a rise in total costs and expenses during the quarter. However, the bottom line increased from the year-ago period's level of 43 cents. This can be attributed to the strong results delivered by the company's Transmission & Gulf of America, Northeast G&P, West and Other segments. The Tulsa, OK-based oil and gas storage and transportation company's revenues of $2.8 billion missed the Zacks Consensus Estimate by $277 million due to the weak performance of its Gas & NGL Marketing Services segment. However, the figure increased from the year-ago quarter's reported number of $2.3 billion, supported by higher service revenues, including those tied to commodity contracts, stronger product sales and gains from commodity derivative instruments. Adjusted EBITDA totaled $1.9 billion in the quarter under review, which was up 16% year over year. Cash flow from operations amounted to $1.5 billion, up 13% from the corresponding quarter of 2024. On April 1, 2025, the company completed two major upgrades to its Transco pipeline system, including the Texas to Louisiana Energy Pathway and the Southeast Energy Connector. Building on this progress, work on the Southeast Supply Enhancement project was accelerated to better meet growing demand. To further strengthen its pipeline network, WMB secured a key agreement for the Northeast Supply Enhancement project. During the summer, both the Transco and Gulfstream pipelines set new records for natural gas flow. The company also expanded its presence in the Haynesville region by acquiring Saber Midstream. Meanwhile, construction began on the Socrates Power Innovation project, a $1.6 billion effort aimed at supporting rising energy needs driven by artificial intelligence. Offshore, Williams successfully brought the Ballymore and Shenandoah deepwater expansions online. Onshore, the Louisiana Energy Gateway started operating alongside the completion of the Haynesville West expansion. The company released its 2024 Sustainability Report, showcasing the leading environmental and operational achievements. WMB's Segmental Analysis Transmission & Gulf of America: The segment reported an adjusted EBITDA of $903 million, up 11.2% from the year-ago quarter's level. Moreover, the figure exceeded the Zacks Consensus Estimate of $899 million. The uplift reflected positive momentum from Transco pipeline expansions and additional volumes originating from the Gulf. West: This segment focuses on the gathering and processing of assets in the Western United States. Adjusted EBITDA for this segment totaled $341 million, up 6.9% from the prior-year quarter's level of $319 million. The strong performance was driven by higher volumes in the Haynesville and additional contributions from the 2025 Rimrock and Saber acquisitions. Moreover, the figure was up from the Zacks Consensus Estimate of $339 million. Northeast G&P: Driven primarily by higher gathering and processing volumes at Ohio Valley Midstream, Cardinal and Bradford, the segment registered an adjusted EBITDA of $501 million. This represents a 4.6% increase from $479 million in the year-earlier quarter, though it missed the Zacks Consensus Estimate by 1%. Gas & NGL Marketing Services: The unit reported an adjusted EBITDA loss of $15 million compared with a loss of $14 million in the prior-year quarter. The figure was wider than the consensus estimate, which predicted a loss of $8 million. Other: This segment posted an adjusted EBITDA of $78 million, representing a 9.9% increase from $71 million in the year-earlier quarter. The figure was also 6.8% higher than the Zacks Consensus Estimate. WMB's Costs, Capex & Balance Sheet In the reported quarter, total costs and expenses of $1.8 billion increased almost 12% from the year-ago quarter's figure. Total capital expenditure (Capex) was $2 billion. As of June 30, 2025, the company had cash and cash equivalents of $903 million and a long-term debt of $25.6 billion, with a debt-to-capitalization of 63.4%. WMB's 2025 Guidance The company expects the midpoint of its 2025 adjusted EBITDA guidance to rise by $50 million to $7.75 billion, within a projected range of $7.6 billion to $7.9 billion. WMB anticipates 2025 growth capital expenditures to remain between $2.6 billion and $2.9 billion, while maintenance capital is expected to range from $650 million to $750 million, excluding $150 million allocated for emissions reduction and modernization efforts. Additionally, the company anticipates a 2025 leverage ratio midpoint of 3.65x and has raised its annual dividend by 5.3%, increasing the metric from $1.90 in 2024 to $2 in 2025. Important Energy Earnings at a Glance While we have discussed WMB's second-quarter results in detail, let us take a look at three other key reports in this space. San Antonio, TX-based oil and gas refining and marketing service provider, Valero Energy Corporation VLO, reported second-quarter 2025 adjusted earnings of $2.28 per share, which beat the Zacks Consensus Estimate of $1.73. However, the bottom line declined from the year-ago quarter's level of $2.71. The better-than-expected quarterly results can be attributed to an increase in refining margins per barrel of throughput and lower total cost of sales. The positives were partially offset by a decline in refining throughput volumes and renewable diesel sales volumes. The company had cash and cash equivalents of $4.5 billion at the end of the second quarter. As of June 30, 2025, it had a total debt of $8.4 billion and finance-lease obligations of $2.3 billion. Houston, TX-based oil and gas equipment and services provider, Halliburton Company HAL, reported second-quarter 2025 adjusted net income of 55 cents per share, which was in line with the Zacks Consensus Estimate but below the year-ago quarter's profit of 80 cents (adjusted). The numbers reflect softer activity in the North American region, partly offset by international growth. As of June 30, 2025, the company had approximately $2 billion in cash/cash equivalents and $7.2 billion in long-term debt, representing a debt-to-capitalization ratio of 40.4. Halliburton reported second-quarter capital expenditure of $354 million, up from our projection of $338.2 million. Norway-based integrated oil and gas operator, Equinor ASA EQNR, reported second-quarter 2025 adjusted earnings per share of 64 cents, which missed the Zacks Consensus Estimate of 66 cents. The bottom line declined 25% from the year-ago quarter's level of 84 cents. Weak quarterly results can be attributed to lower liquids production across major segments and reduced liquids prices. Natural declines and portfolio divestments in Nigeria and Azerbaijan also contributed to the decrease in overall production. As of June 30, 2025, the company reported $9,472 million in cash and cash equivalents. Its long-term debt was $24,505 million. During the same time, Equinor generated a negative net cash flow of $2,579 million compared with $4,022 million in the year-ago period. Equinor's capital expenditures amounted to $3.4 billion in the second quarter. Beyond Nvidia: AI's Second Wave Is Here The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years. See "2nd Wave" AI stocks now >> Williams Companies, Inc. (The) (WMB): Free Stock Analysis Report Halliburton Company (HAL): Free Stock Analysis Report Valero Energy Corporation (VLO): Free Stock Analysis Report Equinor ASA (EQNR): Free Stock Analysis Report
Sharjah 24
29-06-2025
- Business
- Sharjah 24
SEWA implements ambitious water network projects in Kalba
Among these, a water pipeline extension from Kalba to Wadi Al Helo has been completed at a cost of AED 47 million, with 98% of the project completed. Furthermore, the pipeline extension for the Jabal Deem project has been completed in 59% of its entirety, and 50% of the Transco line extension to the desalination facility has been completed. The primary pipelines, which span 2,184 meters, have been installed in various regions of Kalba. SEWA also approved 104 water project plans, issued 93 land clearance certificates, connected water services to 119 residential, governmental, industrial, commercial, and temporary properties, replaced 168 meters of old main lines, tested 133 smart meters, replaced 66 meters, and issued two well drilling permits. Significant Completed Works Engineer Yousef Al Hammadi, Director of SEWA's Kalba Department, explained that several key projects have been completed in recent months. These include extending a pipeline from the industrial area to Al Ghayl station at a cost of AED 5 million, replacing a main line in Tareef 4 for AED 1.6 million, and extending a water line to the new industrial area (Phase One) at a cost of AED 4 million. Water connections were also provided to various government and development projects. Furthermore, the Union Water and Electricity pipeline was integrated into SEWA's network in the Tareef area to be used in emergencies. Future Expansion Plans Al Hammadi added that future plans for Kalba's water projects include constructing a 20-million-gallon reservoir to meet the city's growing water needs, replacing old AC lines with GRE lines in Al Khuwair (Phase Two), and extending pipelines for new development projects announced by His Highness the Ruler of Sharjah, such as Al Hayar Lake and Jabal Deem's main station. Other plans include a new main line extension from the industrial area to Al Ghayl and the second phase of the water line extension to the new industrial area. 2024 Project Achievements He further noted that in 2024, SEWA accomplished numerous water distribution projects, including laying 6,897 meters of main pipelines across Kalba, approving 263 water project plans, issuing 352 land clearance certificates, connecting water services to 718 residential, governmental, industrial, commercial, and temporary properties, replacing 755 meters of old main lines, testing 351 smart meters, replacing 62 meters, and issuing four well drilling permits.
Time of India
18-06-2025
- Business
- Time of India
Uninterrupted power supply a priority as power demand set to rise with ‘Future City' push; Telangana plans ahead
HYDERABAD: Telangana energy department principal secretary Navin Mittal asked the officials to ensure uninterrupted power supply across the state. He noted that power demand is expected to increase significantly due to the govt's initiatives such as Future City and industrial expansion around Hyderabad. Navin Mittal held a review meeting with the chairman and managing directors of power utilities on Tuesday. He first reviewed operations with Krishna Bhaskar, CMD of Transco, and visited the state load dispatch centre and other wings.
Time of India
17-06-2025
- Business
- Time of India
MP transco facing high attrition of experienced, trained contractual staff
Bhopal: Madhya Pradesh Power Transmission Company (MP Transco), which is already understaffed, is facing a severe employee attrition. A large number of its trained and experienced contract employees are quitting the organisation in search of better career prospects. Tired of too many ads? go ad free now The latest recruitment drives conducted by power distribution companies have added to the issue of attrition, as over 100 employees from MP Transco have secured permanent jobs in discoms. These include line staff, junior engineers, and IT experts. Sources from MP Transco said, "Recently, more than 100 employees left the work and more than 90% of them had at least 10 years of experience. These people left jobs as they were working as contractual employees and were not regularised. While in the recent drive of discom, they will be appointed as regular employees. Here at Transco, the work is highly technical and sophisticated. There is zero margin for error, as a single error will not only impact a large area, but will also cause huge financial losses, as even the equipment used for high voltage transmission is very costly. " "Normally, for an engineer or a technical staff member who joins Transco, it takes nearly 4-5 years for the personnel to get acclimatised. It is not easy, like anyone can perform optimally from day one. The loss of trained personnel is a difficult situation for Transco," said sources. There are 417 high-voltage substations maintained by MP Transco. This includes 14 substations of 400 KV — even if there is a fault in any one of them, it will affect several districts. Then there are 88 substations of 220 KV capacity, and the remaining are 132 KV capacity. "The minimum voltage at which we work is 1.32 lakh volts that is our 132 KV transmission lines. Tired of too many ads? go ad free now This requires precision," said sources. The company invested years of effort and crores of rupees in training these professionals. However, lured by better service conditions and the promise of regular appointments, they are now saying goodbye to the company. This exodus is not only disrupting transmission operations but also rendering years of financial and institutional investment futile, sources said. According to sources, around 25 junior engineers from MP Transco have been selected by distribution companies. Of these, five were posted at the company's headquarters, while the rest were working as contract engineers in the field. Additionally, more than 20 highly skilled line staff working in Extra High Tension (EHT) substations are set to join other organisations shortly. MP Transco recently achieved a milestone in the maintenance of its transmission lines. However, this system may now be under threat as nearly 50 trained staff members — considered the backbone of the maintenance operations — are resigning. These include employees, who underwent specialised hot-line maintenance training in Bengaluru, involving training costs running into lakhs of rupees, sources said. When contacted over the issue, MP Transco managing director Sunil Tiwari said, "These personnel are quitting for better career prospects. They are highly trained and experienced people, but, were on a contractual basis. This is definitely affecting us, but we work on the motto to deliver the best with limited resources, and teams have been reorganised to address the issues. Our long-term staff will be addressed soon, as the state cabinet has given its nod for recruitments, and we will soon be starting our regular recruitment drive. "
Fast Company
30-05-2025
- Health
- Fast Company
A gas company wants to expand a pipeline in the south—but it would sharply increase air pollution in North Carolina towns
Two compressor stations along Transco's natural gas pipeline in North Carolina would emit more than 935,000 tons of planet-warming greenhouse gases each year, state records show. The expansion would also contaminate nearby communities with harmful air pollutants up to 350% over current levels. Transco, a division of the Houston-based group Williams, plans to increase the horsepower at the existing compressor stations in Lexington, in Davidson County, and in Mooresville, in Iredell County. The stations would accommodate the company's Southeast Supply Enhancement Project (SSEP), a pipeline expansion that traverses five states: Virginia, North Carolina, South Carolina, Georgia, and Alabama. Compressor stations use high pressure to force gas through a pipeline; they are located every 50 to 60 miles along a route. They routinely leak methane, a powerful greenhouse gas, and other pollutants through valves, flanges and other connectors. The gas is also sometimes intentionally released directly into the atmosphere, a practice called venting, and sometimes the gas is flared, or burned off, during maintenance, shutdowns and startups. Venting is worse for the climate, while flaring produces more harmful air pollution. Each compressor station would be powered by natural gas, according to Transco's recent air permit applications to the N.C. Division of Air Quality. Division officials are reviewing the applications and will accept public comment after the evaluations are complete. Meanwhile, environmental advocates are asking local government officials to oppose Transco's entire natural gas expansion. Transco did not respond to an email requesting comment on the air permit applications. With increased horsepower comes increased pollution. At the Lexington station, concentrations of carbon monoxide, volatile organic compounds, sulfur dioxide and hazardous air pollutants, such as cancer-causing formaldehyde, would increase over current levels, by between 175% and 350%, state records show. Residents in Lexington and Mooresville 'are already burdened by decades of air pollution from existing Transco infrastructure and deserve to breathe clean air,' said Juhi Modi, North Carolina field coordinator at Appalachian Voices. 'NCDEQ has the power to defend against Transco's proposal to emit more health-compromising pollution into our communities.' EPA data show Davidson County is already afflicted by six types of air pollutants regulated under National Ambient Air Quality Standards. Davidson County is in compliance with the air quality standards, according to state officials, but they apply to large areas, like a county, and 'aren't necessarily going to be reflective of the reality on the ground for the people who live around these compressor stations,' said Deirdre Dlugoleski, a former associate attorney with the Southern Environmental Law Center, now with Defenders of Wildlife. 'Compliance with the NAAQS isn't enough to ensure that environmental justice communities close to these sites won't be harmed.' Neighborhoods within a mile radius of the Lexington compressor station rank among the highest in the state in terms of exposure to very fine particulate matter (known as PM 2.5), ozone, and toxic releases to the air, according to the EPA's EJ Screen. Nearly half of the 800 residents in the affected area are low-income. The potential risks to public safety and the environment prompted the Midway Town Council, by a 4-1 vote, to formally oppose SSEP and the compressor station in Lexington, about 10 miles south of Midway. Davidson County already has 176 miles of natural gas and liquid petroleum pipelines within its boundaries. Midway officials cited the 'negative impacts on air and water quality, residents' health and property values,' in their May 5 resolution, filed with the Federal Energy Regulatory Commission, or FERC. Town officials asked FERC to consider a 'no-build option' and, in the event the pipeline is expanded, to require the compressor stations to use the best available control technology to reduce emissions. At the Mooresville station, Transco's air permit application shows the increases would range from 20% to 37% over current emissions levels, depending on the pollutant. Like their Lexington counterparts, people living within a mile of the station are exposed to some of the highest levels of PM 2.5, ozone, toxic air releases and diesel pollution. These neighborhoods also flank Interstate 77, one of the main arteries into Charlotte. Both stations would emit toxic air pollutants acrolein, benzene, and formaldehyde at high rates. In Lexington, benzene exceeds federal hourly emission rates by 100 times; in Mooresville, the figure is 61 times. These rates trigger a requirement for the company to conduct air dispersion modeling to measure contaminant levels, if they move off site and how far. 'This proposed massive methane gas project would add more pollution and health risks to North Carolina communities already struggling with poor air quality, compared to the rest of the state,' said Caroline Hansley, campaign organizing strategist at Sierra Club. 'NCDEQ must exercise its authority to protect North Carolinians and deny the permit for this unneeded, dirty, and dangerous project.' More Demand From Data Centers In North Carolina, the SSEP includes the Eden Loop, 4.4 miles in Rockingham County, where the pipeline enters the state from Virginia. The Salem Loop, also part of SSEP, is longer, running roughly 24 miles through Guilford, Forsyth, and Davidson counties. The SSEP is one of three major pipeline projects in North Carolina. MVP Southgate is proposed for Rockingham County, where it would tie into the T-15, a pipeline which would run east to Duke Energy's new natural gas plants in Person County. All of these projects are estimated to begin operating within the next three to five years, although they often run behind schedule because of permitting issues, litigation or construction delays. There is still a vacancy on the FERC commission, which could also cause backlogs. Transco officials say the project is necessary to accommodate increased energy demand from data centers. Some energy analysts, like Tyler Norris of Duke University, though, counter that load flexibility could preclude the need for more generation and transmission. Environmental advocates argue that energy companies are financially incentivized to build pipelines. From 2018 to 2023, Transco's average return on equity—earnings—was 17%, according to the National Gas Supply Association. Earlier this spring, Transco updated its project filings with FERC, which reflected minor adjustments to the proposed route. Maps show hundreds of homes and businesses, schools, day cares, even parks and recreational centers within the pipeline's 1,114-foot 'high consequence area.' Also known as the blast zone, these areas are where the force of an explosion could kill or injure people, as well as damage or destroy property. The zone is based on the diameter of the pipeline—SSEP is 42 inches—and its maximum allowable pressure. Within these areas, there are different classifications of risk, depending on population density and the number of vulnerable people who couldn't quickly evacuate. Some homes lie as close as 20 feet from the center of the pipeline, according to Transco's filings with FERC. The pipeline skirts churches; the Oak Ridge Weekday School; a child care center in Guilford County; the VA Medical Center in Kernersville; and U.S. Highway 52, a major thoroughfare. It would burrow under three acres of Triad Park, a 6,000-acre recreational area that straddles Guilford and Forsyth counties. Farther south in Davidson County, Wallburg Elementary School enrolls more than 720 students in pre-K through Grade 5. It is less than a quarter mile from the pipeline and within the blast zone, as is the Wallburg Recreational Center across the street. In a recent presentation to Guilford County Commissioners, Transco officials emphasized that 'safety is the highest priority.' The company continuously monitors its pipelines and frequently inspects them, officials said, and uses pressure and temperature sensors to warn of potential problems. Previous studies of pipeline accidents in Kentucky, Virginia, and New Mexico have shown that blast zones extend farther than originally calculated, according to the Pipeline Safety Trust, a nonprofit based in Washington state. The trust raised safety concerns about the SSEP in its recent comments to FERC. The SSEP route already contains up to four other pipelines of different types, and FERC should calculate the blast to reflect those co-locations, wrote Erin Sutherland, the trust's policy and program director, and attorney. 'This is a serious environmental and public health danger that FERC should consider.' Even routine construction will affect communities along the route. 'There's a huge gap that is going to fall on local municipalities,' Hansley said. 'People's wells could be blasted and impacted in Oak Ridge and other places. The roads could see massive traffic increases from heavy loads, get damaged and then who would end up paying for it?'
