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(Reuters) -Williams Companies said on Monday CEO Alan Armstrong will step down after more than 14 years at the helm of the U.S. pipeline operator.
Armstrong, who joined Williams nearly 40 years ago, would be succeeded by insider Chad Zamarin, effective July 1. Zamarin, who joined the company in 2017, is currently the executive vice president of corporate strategic development.
Williams on Monday also beat quarterly earnings estimates and raised its annual profit forecast, as it banked on rising demand for natural gas, driven by a surge in electricity consumption by homes, businesses, crypto-mining, and an artificial intelligence-led boom in data centers.
"Williams is well positioned to benefit from the coming wave of natural gas demand from the power generation market and LNG exports, while continuing to deliver on traditional market needs," Armstrong said.
The firm raised its 2025 adjusted core profit to be between $7.5 billion and $7.9 billion compared to its prior outlook range of $7.45 billion to $7.85 billion.
Its first-quarter results were boosted by higher service revenues from expansion projects and acquisitions.
In January, the U.S. energy regulator reinstated the certificate for Williams' Transcontinental gas pipeline, allowing it to go ahead with expansion of the project, after a U.S. court voided the initial approval in 2023.
Total revenue rose nearly 10% to $3.05 billion during the quarter ended March 31, while service revenues climbed to $2 billion from $1.91 billion a year ago.
At Transco, average daily transportation volumes rose to 15.9 million dekatherms (MMdth) of natural gas per day in the first quarter from 14.6 MMdth per day of natural gas a year ago.
The company posted an adjusted profit of 60 cents per share for the quarter ended March 31, compared with average analysts' estimate of 56 cents per share, according to data compiled by LSEG.
(Reporting by Katha Kalia and Vallari Srivastava in Bengaluru; Editing by Leroy Leo)