Williams Earnings: Solid Quarter Leads To $2 Increase in Our Fair Value Estimate to $40

Williams' second-quarter results were solid, and after refreshing our model, we are increasing our fair value estimate to $40 from $38. Our narrow moat rating is unchanged. Overall EBITDA increased 3% year over year to $1.7 billion, mainly helped by the Gulf Coast storage deal, and offset by lower volumes at the Northeast gathering and processing segment because of temporary shut-ins. Williams reaffirmed 2024 EBITDA guidance toward the top end of its range of $6.8 billion-$7.1 billion, compared with our $7.1 billion forecast. 2025 guidance is set by Williams at a midpoint of $7.4 billion compared with our $7.5 billion forecast.