Williams Q3 earnings up 10%, boosted by Bayou Ethane sale

Williams ascribed improved earnings to a $130-million gain from sale of its 270-mile Bayou Ethane Pipeline system and higher service revenues driven by recent acquisitions and increased volumes and rates on its Northeast Gathering & Processing unit.
Nov. 2, 2023
2 min read

Williams Cos. Inc.’s third-quarter 2023 net income rose 10% year-on-year, reaching $654 million. Williams ascribed the improved earnings to a $130-million gain from sale of its 270-mile Bayou Ethane Pipeline system and higher service revenues driven by recent acquisitions and increased volumes and rates on its Northeast Gathering & Processing unit.

Bayou Ethane uses 6- to 12-in. OD pipe to ship the liquid from multiple third-party fractionation and storage sites in Mont Belvieu, Tex., to Nova Chemicals Corp.’s 1.8-billion lb/year Geismar, La., ethylene plant, also previously owned by Williams. Williams said it will use proceeds from Bayou Ethane’s sale to strengthen its position in the Denver-Julesburg (DJ) basin.

The company placed Phase 1 of Transcontinental Gas Pipe Line Corp.’s (Transco) 829-MMcfd Regional Energy Access expansion project into service and advanced an additional 2 bcfd of Transco expansion for completion by end-2025. It also signed precedent agreements for Transco’s 1.4-bcfd Southeast Supply Enhancement.

Williams completed integration of MountainWest Pipelines Holding Co.’s 2,000-mile system into its operations in third-quarter 2023, completing a process begun with its acquisition early in the year. The company also completed an anchor-shipper precedent agreement for the system’s 113-MMcfd Uinta basin expansion project. It expects the additional capacity to be available by July 1, 2024.

About the Author

Christopher E. Smith

Editor in Chief

Chris brings 32 years of experience in a variety of oil and gas industry analysis and reporting roles to his work as Editor-in-Chief, specializing for the last 20 of them in the midstream and transportation sectors.

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