Williams Companies Inc

WMB: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$36.00	Wmkbrtz	Qvkbwymm

Williams Earnings: Recent M&A Is Driving Outperformance; Boosting Fair Value Estimate 13%

Stephen Ellis

Nov 2, 2023

Williams' third-quarter results were very good, and after incorporating them into our model, we are increasing our fair value estimate to $36 per share from $32. Our narrow moat rating is unchanged. Overall EBITDA increased 1% to $1.7 billion over last year’s levels, with higher contributions from recent acquisitions MountainWest and NorTex more than offsetting weaker contributions from the modest upstream segment due to lower realized oil and gas pricing. Management raised 2023 EBITDA guidance by about $100 million at the midpoint to $6.7 billion, reflecting better-than-expected performance from the MountainWest and NorTex deals, in our view.

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