Williams (WMB) is expected to report softer Q2 results as the benefit from severe winter weather fades and seasonal weakness across several segments weighs on performance, UBS Securities said Monday in a note.
Adjusted EBITDA may drop to about $1.89 billion in Q2 from $2.25 billion in Q1 as the gas-marketing business normalizes after a strong start to the year and contributions from the Transco and West segments ease in the spring, UBS said.
Williams' full-year performance is expected to remain solid, supported by steady demand across its core pipeline and gathering operations, the note said. UBS also pointed to long-term growth potential from the company's power initiatives, including the Neo project, which is slated to begin operating in H2 2028 and may add meaningful earnings over time.
Investors are likely to focus on management's commentary around natural-gas market conditions, progress on power-innovation projects, capital spending, growth plans, LNG-related infrastructure, and the company's approach to potential mergers and acquisitions during the earnings call, the note said.
Q2 results are expected Aug. 3.
UBS has a buy rating on Williams stock with a $91 price target.
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