Williams beats quarterly profit estimates on higher natural gas demand

Williams Companies, a U.S.-based pipeline operator, surpassed Wall Street's expectations for the first quarter profit on Monday. The company was able to do so by increasing its capacity and boosting service revenues as demand for natural gas increased. Tulsa-based Williams Companies has spent the past year positioning itself to be a major energy provider for companies developing artificial intelligence infrastructure. It also added new power generation capabilities to its traditional pipeline business. The company increased the capacity of its 'Power Express' project on the Transco Pipeline to 750 million cubic foot per day during the third quarter. This was a major expansion for the network in order to meet the energy needs from Virginia data centers.

Williams' service revenues rose from $2 billion to $2.21 billion in the first quarter, a rise of 12%. This was also due to Transco's higher net rates.

"Natural Gas Demand is Growing, Our Contract Project Portfolio is Growing and We're Staying Focused on Sharp Execution of Projects which Will Drive Higher Earnings ...," Said CEO Chad Zamarin. The pipeline operator stated that it is on track to achieve its 2026 core earnings forecast at the upper end of the $8.05 billion to $9.35 billion range, due to the expected growth in natural gas demand.

Williams reported an adjusted profit per share of $0.73 for the three-month period ended March 31 compared to analysts' expectations of $ 0.62 per?share. In extended trading, shares of the company were up 1.4%. By Monday's closing, the stock was up 25.4% for this year. (Reporting and editing by Jonathan Ananda; Akshaya V)

(source: Reuters)