Pipeline operator Williams profit rises on pipeline expansion, stronger gas fees

U.S. pipeline operator Williams Companies WMB reported a rise in second-quarter profit on Monday, as it benefited from higher service revenues and expansion-related gains amid a rebound in natural gas prices.

U.S. natural gas prices NG1! have rebounded from the multi-year lows, supported by record flows to liquefied natural gas export (LNG) facilities and rising electricity consumption.

Williams' results were boosted by higher fees charged for fuel transported through its pipelines, as well as revenues from expansion projects and acquisitions. The company owns and operates more than 32,000 miles of pipeline infrastructure.

In January, the U.S. energy regulator reinstated the certificate for Transcontinental gas pipeline (Transco), allowing Williams to proceed with its expansion, after a U.S. court voided the initial approval in 2023.

Service revenues rose to $2.04 billion during the three months ended June 30, from $1.84 billion a year earlier.

At Transco, average daily transportation volumes rose to 14 million dekatherms (MMdth) of natural gas per day in the second quarter from 12.9 MMdth per day in the same period last year.

The company’s 'Transmission & Gulf of America' segment reported a 17% rise in natural gas gathering volumes, which came in at 680 million cubic feet per day in the quarter.

In July, Chad Zamarin took over as chief executive officer, following the retirement of longtime CEO Alan Armstrong, who stepped down after more than 14 years in the role.

Williams posted a profit of $546 million or 45 cents per share for the quarter ended June 30, up from $401 million or 33 cents per share, in the same period last year.