Williams Earnings: Marketing Takes a Turn As the Star Amid Tepid Volume Performance

Historically, Williams has leveraged volume growth across its assets as well as new assets to drive EBITDA growth on a quarterly basis. Volume growth during the first quarter across many of Williams’ assets was down sequentially, no doubt affected by the mild winter in the U.S. and constrained LNG export capacity. Though, with the recent restart of Freeport, we expect improvements on the LNG front for the rest of 2023. We expect to maintain our $32 fair value estimate and narrow moat rating.