Williams’ first-quarter results generally met our expectations, and we will maintain our $38 fair value estimate and narrow moat rating. 2024 EBITDA guidance was reaffirmed by management as at the top of half of its $6.8 billion to $7.1 billion range, and we see our $7 billion forecast as reasonable. Overall EBITDA improved 8% year over year to $1.9 billion.
A large, well-positioned network allows Williams to invest in high-return growth projects with minimal regulatory hurdles.
Williams is focused almost exclusively on natural gas, meaning any upside in other energy prices will have little impact on earnings or valuation.
|
Metric
|
WMB
|
ET
|
KMI
|
|---|---|---|---|
Price/Earnings (Normalized) | 20.37 | 12.81 | 17.24 |
Price/Book Value | 3.89 | 1.76 | 1.40 |
Price/Sales | 4.57 | 0.63 | 2.79 |
Price/Cash Flow | 8.26 | 4.96 | 6.77 |
|
Metric
|
WMB
|
ET
|
KMI
|
|---|---|---|---|
Quick Ratio | 0.37 | 0.93 | 0.33 |
Current Ratio | 0.52 | 1.18 | 0.50 |
Interest Coverage | 4.05 | 3.18 | 2.80 |
|
Metric
|
WMB
|
ET
|
KMI
|
|---|---|---|---|
Return on Assets (Normalized) | 4.89% | 5.75% | 3.46% |
Return on Equity (Normalized) | 20.70% | 22.11% | 7.89% |
Return on Invested Capital (Normalized) | 8.53% | 9.47% | 6.00% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
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OKE
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KMI
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MPLX
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TRP
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LNG
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TRGP
| Targa Resources Corp | Qqssxbq | Lhz | $25.0 Bil |
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