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Williams Delivers Strong Third-Quarter 2025 Results

businesswire.com

TULSA, Okla.--( BUSINESS WIRE)--Williams (NYSE: WMB) today announced its unaudited financial results for the three and nine months ended Sept. 30, 2025.

Natural gas focused strategy continues to drive key financial metrics

Advanced key growth projects and executed strategic priorities

CEO Perspective

Chad Zamarin, president and chief executive officer, made the following comments:

"Williams delivered another quarter of excellent financial results with Adjusted EBITDA up 13% over third quarter last year, reflecting the growing strength of our natural gas strategy. Expansions to our Transco and Gulf assets, as well as higher natural gas gathering and processing volumes in the Northeast and West, drove earnings growth in the quarter.

"Our teams placed critical projects into service in the Southeast, the Pacific Northwest, in Louisiana and in the deepwater Gulf, demonstrating growth and performance across our nationwide footprint. In addition, we increased our investment in the Socrates project and announced two new Power Innovation projects. Finally, we announced the sale of our South Mansfield upstream assets to JERA and a strategic partnership with Woodside Energy. The significant accomplishments achieved in the third quarter strengthen our core business and further position Williams to continue our impressive track record of growth."

Zamarin added, "Looking ahead, we are reaffirming our previously raised guidance for 2025, with an EBITDA midpoint of $7.750 billion that has been raised $350 million since original guidance was set. As we focus on finishing the year strong, we are also setting our sights to the future and Williams is incredibly well positioned to build upon the impressive growth we have delivered over the past five years. With a strong balance sheet, a solid foundation of core assets, a focused and motivated team and a growing backlog of fully contracted projects now extending beyond 2030, Williams remains uniquely positioned to benefit from the accelerating demand for natural gas."

Williams Summary Financial Information

3Q

Year to Date

Amounts in millions, except ratios and per-share amounts. Per share amounts are reported on a diluted basis. Net income amounts are from continuing operations attributable to The Williams Companies, Inc. available to common stockholders.

2025

2024

2025

2024

GAAP Measures

Net Income

$646

$705

$1,882

$1,737

Net Income Per Share

$0.53

$0.58

$1.54

$1.42

Cash Flow From Operations

$1,439

$1,243

$4,322

$3,756

Non-GAAP Measures (1)

Adjusted EBITDA

$1,920

$1,703

$5,717

$5,304

Adjusted Net Income

$603

$528

$1,899

$1,768

Adjusted Earnings Per Share

$0.49

$0.43

$1.55

$1.45

Available Funds from Operations

$1,449

$1,286

$4,211

$4,043

Dividend Coverage Ratio

2.37x

2.22x

2.30x

2.33x

Other

Debt-to-Adjusted EBITDA at Quarter End (2)

3.73x

3.75x

Capital Investments (Excluding Acquisitions) (3) (4)

$1,053

$720

$2,762

$1,946

(1) Schedules reconciling Adjusted Net Income, Adjusted EBITDA, Available Funds from Operations and Dividend Coverage Ratio (non-GAAP measures) to the most comparable GAAP measure are available at www.williams.com and as an attachment to this news release.

(2) Does not represent leverage ratios measured for WMB credit agreement compliance or leverage ratios as calculated by the major credit ratings agencies. Debt is net of cash on hand, and Adjusted EBITDA reflects the sum of the last four quarters.

(3) Capital investments includes increases to property, plant, and equipment (growth & maintenance), purchases of and contributions to equity-method investments and purchases of other long-term investments.

(4) 3Q YTD 2025 capital excludes $43 million for the acquisition of Saber Midstream, which closed June 2025; $153 million for the investment in Cogentrix, which closed March 2025; $319 million for the Rimrock acquisition, which closed January 2025; and $1 million for an adjustment of the Crowheart acquisition and Discovery consolidation, which closed in 2024. 3Q 2024 and 3Q YTD 2024 capital excludes $151 million for the consolidation of our Discovery JV, which closed August 2024. 3Q YTD 2024 capital also excludes $1.844 billion for the acquisition of the Gulf Coast Storage assets, which closed January 2024.

GAAP Measures

Third-quarter 2025 net income decreased by $59 million, while year-to-date 2025 net income increased by $145 million compared to the prior year. Both comparative periods benefited from:

These favorable changes were unfavorably impacted by:

Third-quarter and year-to-date 2025 cash flow from operations increased compared to the prior year primarily due to higher operating results exclusive of non-cash items. The year-to-date period was also impacted by favorable net changes to derivative collateral requirements, favorable net changes in working capital, and increased distributions from equity-method investees.

Non-GAAP Measures

Third-quarter and year-to-date 2025 Adjusted EBITDA increased by $217 million and $413 million, respectively, over the prior year, driven by the previously described increases in service revenues and net realized sales from upstream operations, partially offset by higher operating and administrative costs and lower equity AFUDC.

Third-quarter and year-to-date 2025 Adjusted Net Income improved by $75 million and $131 million, respectively, over the prior year, driven by the previously described impacts to net income, adjusted primarily to remove the effects of net unrealized gains/losses on commodity derivatives, the third-quarter 2024 gains related to Aux Sable and Discovery, the third-quarter 2025 write-off charge, and the third-quarter 2025 income tax expense associated with the increase in the estimated deferred state income tax rate, as well as the related income tax effects of such adjustments.

Third-quarter and year-to-date 2025 Available Funds From Operations (AFFO) increased by $163 million and $168 million, respectively, compared to the prior year primarily due to higher adjusted operating results exclusive of noncash items, partially offset by higher dividends and distributions paid to noncontrolling interests. The year-to-date period also benefited from higher distributions from equity-method investees.

Business Segment Results & Form 10-Q

Williams' operations are comprised of the following reportable segments: Transmission, Power & Gulf, Northeast G&P, West and Gas & NGL Marketing Services, as well as Other. For more information, see the company's third-quarter 2025 Form 10-Q.

Third Quarter

Year to Date

Amounts in millions

Modified EBITDA

Adjusted EBITDA

Modified EBITDA

Adjusted EBITDA

3Q 2025

3Q 2024

Change

3Q 2025

3Q 2024

Change

2025

2024

Change

2025

2024

Change

Transmission, Power & Gulf

$973

$811

$162

$947

$830

$117

$2,722

$2,448

$274

$2,712

$2,481

$231

Northeast G&P

505

476

29

505

484

21

1,520

1,461

59

1,520

1,467

53

West

342

323

19

367

330

37

1,037

968

69

1,062

977

85

Gas & NGL Marketing Services

54

11

43

11

4

7

176

(14

)

190

151

179

(28

)

Other

93

58

35

90

55

35

286

181

105

272

200

72

Total

$1,967

$1,679

$288

$1,920

$1,703

$217

$5,741

$5,044

$697

$5,717

$5,304

$413

Note: Williams uses Modified EBITDA for its segment reporting. Definitions of Modified EBITDA and Adjusted EBITDA and schedules reconciling to net income are included in this news release.

Transmission, Power & Gulf

Third-quarter and year-to-date 2025 Modified and Adjusted EBITDA improved compared to the prior year driven by Transco’s higher net rates and expansion projects, as well as new Gulf volumes, partially offset by lower equity AFUDC. Modified EBITDA for the 2024 periods was impacted by one-time acquisition costs and the unfavorable impact of a change in payroll policy, which are excluded from Adjusted EBITDA, while adjusted EBITDA for the 2025 periods reflect adjustments related to Transco’s rate case and a net gain related to certain asset retirements.

Northeast G&P

Third-quarter and year-to-date 2025 Modified and Adjusted EBITDA increased compared to the prior year driven primarily by higher gathering volumes at Bradford. The year-to-date period also benefited from higher volumes at Ohio Valley Midstream and Cardinal, partially offset by the absence of Aux Sable, which was sold in third-quarter 2024.

West

Third-quarter and year-to-date 2025 Modified and Adjusted EBITDA increased compared to the prior year driven by the Louisiana Energy Gateway project coming into service, new volumes from the 2025 Rimrock and Saber acquisitions, and higher volumes in the Haynesville, partially offset by lower minimum volume commitment (MVC) revenues in the Eagle Ford. The year-to-date period also benefited from higher commodity margins. Modified EBITDA for both the quarterly and year-to-date periods was impacted by a $25 million write-off of certain compression assets in third-quarter 2025, which is excluded from Adjusted EBITDA.

Gas & NGL Marketing Services

Third-quarter 2025 Modified EBITDA increased from the prior year primarily reflecting a $36 million net favorable change in unrealized gains/losses on commodity derivatives, which is excluded from Adjusted EBITDA. Year-to-date 2025 Modified EBITDA also increased from the prior year reflecting a $230 million net favorable change in unrealized gains/losses on commodity derivatives, which is excluded from Adjusted EBITDA. Both periods reflected lower gas marketing margins partially offset by proportional EBITDA from the March 2025 investment in Cogentrix.

Other

The increases in third-quarter and year-to-date 2025 Modified and Adjusted EBITDA compared to the prior year reflects contributions from the fourth-quarter 2024 Crowheart acquisition. Year-to-date Modified EBITDA also includes a $35 million net favorable change in unrealized gains/losses on commodity derivatives, which is excluded from Adjusted EBITDA.

2025 Financial Guidance

The company continues to expect 2025 Adjusted EBITDA guidance midpoint of $7.75 billion within the range of between $7.6 billion and $7.9 billion. The company has increased its 2025 growth capex by $500 million to between $3.95 billion and $4.25 billion in connection with the recently announced decision to invest in Woodside Energy’s Louisiana LNG project. Maintenance capex remains between $650 million and $750 million, excluding capital for emissions reduction and modernization initiatives. Williams continues to expect a leverage ratio midpoint for 2025 of ~3.7x and has increased the dividend by 5.3% on an annualized basis to $2.00 in 2025 from $1.90 in 2024.

Williams' Third-Quarter 2025 Materials to be Posted Shortly; Q&A Webcast Scheduled for Tomorrow

Williams' third-quarter 2025 earnings presentation will be posted at www.williams.com. The company's third-quarter 2025 earnings conference call and webcast with analysts and investors is scheduled for Tuesday, Nov. 4, at 9:30 a.m. Eastern Time (8:30 a.m. Central Time). Participants who wish to join the call by phone must register using the following link: https://register-conf.media-server.com/register/BIf717155f3c1d4f85b8cab5065ade2228

A webcast link to the conference call will be provided on Williams' Investor Relations website. A replay of the webcast will also be available on the website for at least 90 days following the event.

About Williams

Williams (NYSE: WMB) is a trusted energy industry leader committed to safely, reliably and responsibly meeting growing energy demand. We use our infrastructure to deliver one third of the nation’s natural gas to where it's needed most, supplying the energy used to heat our homes, cook our food and generate low-carbon electricity. For over a century, we’ve been driven by a passion for doing things the right way. Today, our team of problem solvers is leading the charge into the clean energy future. Learn more at www.williams.com.

The Williams Companies, Inc.

Consolidated Statement of Income

(Unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2025

2024

2025

2024

(Millions, except per-share amounts)

Revenues:

Service revenues

$

2,121

$

1,911

$

6,165

$

5,653

Service revenues – commodity consideration

45

34

141

82

Product sales

701

703

2,416

2,158

Net gain (loss) from commodity derivatives

56

5

30

(133

)

Total revenues

2,923

2,653

8,752

7,760

Costs and expenses:

Product costs

471

517

1,560

1,467

Net processing commodity expenses

14

7

46

29

Operating and maintenance expenses

583

580

1,697

1,613

Depreciation, depletion, and amortization expenses

564

566

1,754

1,654

Selling, general, and administrative expenses

168

170

530

520

Other (income) expense – net

14

(25

)

17

(69

)

Total costs and expenses

1,814

1,815

5,604

5,214

Operating income (loss)

1,109

838

3,148

2,546

Equity earnings (losses)

152

147

449

431

Other investing income (loss) – net

19

290

31

332

Interest expense

(372

)

(338

)

(1,071

)

(1,026

)

Other income (expense) – net

21

31

51

95

Income (loss) before income taxes

929

968

2,608

2,378

Less: Provision (benefit) for income taxes

246

227

613

549

Net income (loss)

683

741

1,995

1,829

Less: Net income (loss) attributable to noncontrolling interests

36

35

111

90

Net income (loss) attributable to The Williams Companies, Inc.

647

706

1,884

1,739

Less: Preferred stock dividends

1

1

2

2

Net income (loss) available to common stockholders

$

646

$

705

$

1,882

$

1,737

Basic earnings (loss) per common share:

Net income (loss) available to common stockholders

$

.53

$

.58

$

1.54

$

1.43

Weighted-average shares (millions)

1,222

1,220

1,221

1,219

Diluted earnings (loss) per common share:

Net income (loss) available to common stockholders

$

.53

$

.58

$

1.54

$

1.42

Weighted-average shares (millions)

1,225

1,223

1,224

1,222

The Williams Companies, Inc.

Consolidated Balance Sheet

(Unaudited)

September 30,

December 31,

2025

2024

(Millions, except per-share amounts)

ASSETS

Current assets:

Cash and cash equivalents

$

70

$

60

Trade accounts and other receivables (net of allowance of ($1) at September 30, 2025 and December 31, 2024)

1,480

1,863

Inventories

339

279

Derivative assets

157

267

Other current assets and deferred charges

225

192

Total current assets

2,271

2,661

Investments

4,188

4,140

Property, plant, and equipment

60,305

57,395

Accumulated depreciation, depletion, and amortization

(19,920

)

(18,703

)

Property, plant, and equipment – net

40,385

38,692

Intangible assets – net

7,004

7,209

Regulatory assets, deferred charges, and other

1,888

1,830

Total assets

$

55,736

$

54,532

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable

$

1,406

$

1,613

Derivative liabilities

101

164

Other current liabilities

1,472

1,360

Commercial paper

170

455

Long-term debt due within one year

2,228

1,720

Total current liabilities

5,377

5,312

Long-term debt

25,589

24,736

Deferred income tax liabilities

4,826

4,376

Regulatory liabilities, deferred income, and other

5,084

5,268

Contingent liabilities and commitments

Equity:

Stockholders’ equity:

Preferred stock ($1 par value; 30 million shares authorized at September 30, 2025 and December 31, 2024; 35 thousand shares issued at September 30, 2025 and December 31, 2024)

35

35

Common stock ($1 par value; 1,470 million shares authorized at September 30, 2025 and December 31, 2024; 1,261 million shares issued at September 30, 2025 and 1,258 million shares issued at December 31, 2024)

1,261

1,258

Capital in excess of par value

24,656

24,643

Retained deficit

(12,354

)

(12,396

)

Accumulated other comprehensive income (loss)

102

76

Treasury stock, at cost (39 million shares at September 30, 2025 and December 31, 2024 of common stock)

(1,180

)

(1,180

)

Total stockholders’ equity

12,520

12,436

Noncontrolling interests in consolidated subsidiaries

2,340

2,404

Total equity

14,860

14,840

Total liabilities and equity

$

55,736

$

54,532

The Williams Companies, Inc.

Consolidated Statement of Cash Flows

(Unaudited)

Nine Months Ended

September 30,

2025

2024

(Millions)

OPERATING ACTIVITIES:

Net income (loss)

$

1,995

$

1,829

Adjustments to reconcile to net cash provided (used) by operating activities:

Depreciation, depletion, and amortization

1,754

1,654

Provision (benefit) for deferred income taxes

442

467

Equity (earnings) losses

(449

)

(431

)

Distributions from equity-method investees

600

580

Net unrealized (gain) loss from commodity derivative instruments

(55

)

210

Gain on disposition of equity-method investments

(149

)

Gain on remeasurement of equity-method investments

(127

)

Inventory write-downs

5

8

Amortization of stock-based awards

70

69

Cash provided (used) by changes in current assets and liabilities:

Accounts receivable

384

367

Inventories

(66

)

(6

)

Other current assets and deferred charges

(43

)

(16

)

Accounts payable

(359

)

(317

)

Other current liabilities

95

(108

)

Changes in current and noncurrent commodity derivative assets and liabilities

77

(74

)

Other, including changes in noncurrent assets and liabilities

(128

)

(200

)

Net cash provided (used) by operating activities

4,322

3,756

FINANCING ACTIVITIES:

Proceeds from (payments of) commercial paper – net

(284

)

(723

)

Proceeds from long-term debt

2,994

3,594

Payments of long-term debt

(1,733

)

(2,286

)

Payments for debt issuance costs

(29

)

(31

)

Proceeds from issuance of common stock

9

8

Common dividends paid

(1,832

)

(1,737

)

Dividends and distributions paid to noncontrolling interests

(197

)

(178

)

Contributions from noncontrolling interests

22

36

Other – net

(60

)

(34

)

Net cash provided (used) by financing activities

(1,110

)

(1,351

)

INVESTING ACTIVITIES:

Property, plant, and equipment:

Capital expenditures (1)

(2,938

)

(1,805

)

Dispositions – net

(80

)

(73

)

Purchases of businesses, net of cash acquired

(1

)

(1,995

)

Proceeds from dispositions of equity-method investments

161

Purchases of and contributions to equity-method investments

(192

)

(101

)

Other – net

9

20

Net cash provided (used) by investing activities

(3,202

)

(3,793

)

Increase (decrease) in cash and cash equivalents

10

(1,388

)

Cash and cash equivalents at beginning of year

60

2,150

Cash and cash equivalents at end of period

$

70

$

762

(1) Increases to property, plant, and equipment

$

(3,079

)

$

(1,840

)

Changes in related accounts payable and accrued liabilities

141

35

Capital expenditures

$

(2,938

)

$

(1,805

)

(UNAUDITED)

2024

2025

(Dollars in millions)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

1st Qtr

2nd Qtr

3rd Qtr

Year-to-date

Regulated interstate natural gas transportation, storage, and other revenues (1)

$

836

$

805

$

833

$

864

$

3,338

$

873

$

892

$

930

$

2,695

Gathering, processing, storage and transportation revenues (1)

137

147

167

170

621

179

218

237

634

Other fee revenues

12

9

7

9

37

13

11

6

30

Commodity margins

9

5

11

28

53

14

17

16

47

Operating and administrative costs (1)

(254

)

(261

)

(294

)

(295

)

(1,104

)

(270

)

(286

)

(290

)

(846

)

Other segment income (expenses) - net (1)

43

54

46

12

155

13

2

37

52

Proportional Modified EBITDA of equity-method investments

46

49

41

37

173

36

37

37

110

Modified EBITDA

829

808

811

825

3,273

858

891

973

2,722

Adjustments

10

4

19

1

34

4

12

(26

)

(10

)

Adjusted EBITDA

$

839

$

812

$

830

$

826

$

3,307

$

862

$

903

$

947

$

2,712

Statistics for Operated Assets

Natural Gas Transmission (2)

Transcontinental Gas Pipe Line

Avg. daily transportation volumes (MMdth)

14.6

12.9

14.3

14.1

14.0

15.9

14.0

14.9

14.9

Avg. daily firm reserved capacity (MMdth)

20.3

19.7

20.1

20.4

20.1

20.8

20.6

20.6

20.7

Northwest Pipeline LLC

Avg. daily transportation volumes (MMdth)

3.1

2.2

2.1

2.1

2.4

3.0

2.4

2.4

2.6

Avg. daily firm reserved capacity (MMdth)

3.8

3.7

3.7

3.7

3.7

3.7

3.7

3.7

3.7

MountainWest (3)

Avg. daily transportation volumes (MMdth)

4.3

3.2

3.6

4.1

3.8

3.7

3.1

3.3

3.4

Avg. daily firm reserved capacity (MMdth)

8.4

8.0

8.1

8.3

8.2

8.4

8.0

8.0

8.2

Gulfstream - Non-consolidated

Avg. daily transportation volumes (MMdth)

1.0

1.2

1.4

1.1

1.2

1.0

1.3

1.4

1.2

Avg. daily firm reserved capacity (MMdth)

1.4

1.4

1.4

1.4

1.4

1.4

1.4

1.4

1.4

Gathering, Processing, and Crude Oil Transportation

Gathering volumes (Bcf/d)

0.52

0.58

0.55

0.55

0.55

0.58

0.68

0.75

0.67

Plant inlet natural gas volumes (Bcf/d)

0.72

0.62

0.73

0.75

0.71

0.78

0.89

0.97

0.88

NGL production (Mbbls/d)

43

43

49

54

47

61

76

87

75

NGL equity sales (Mbbls/d)

8

10

9

13

10

10

15

12

12

Crude oil transportation volumes (Mbbls/d)

118

114

109

110

113

124

196

238

186

(1) Excludes certain amounts associated with revenues and operating costs for tracked or reimbursable charges.

(2) Tbtu converted to MMdth at one trillion British thermal units = one million dekatherms.

(3) Includes 100% of the volumes associated with the operated equity-method investment White River Hub, LLC.

Northeast G&P

(UNAUDITED)

2024

2025

(Dollars in millions)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

1st Qtr

2nd Qtr

3rd Qtr

Year-to-date

Gathering, processing, transportation, and fractionation revenues (1)

$

411

$

398

$

407

$

419

$

1,635

$

420

$

419

$

421

$

1,260

Other fee revenues

34

35

33

33

135

35

37

36

108

Commodity margins

11

8

5

24

6

6

6

18

Operating and administrative costs (1)

(108

)

(108

)

(120

)

(105

)

(441

)

(106

)

(113

)

(114

)

(333

)

Other segment income (expenses) - net

(1

)

3

(1

)

2

3

(2

)

(5

)

(7

)

Proportional Modified EBITDA of equity-method investments

157

153

149

143

602

159

154

161

474

Modified EBITDA

504

481

476

497

1,958

514

501

505

1,520

Adjustments

(2

)

8

2

8

Adjusted EBITDA

$

504

$

479

$

484

$

499

$

1,966

$

514

$

501

$

505

$

1,520

Statistics for Operated Assets

Gathering and Processing

Consolidated (2)

Gathering volumes (Bcf/d)

4.33

4.11

4.04

4.16

4.16

4.39

4.15

4.10

4.21

Plant inlet natural gas volumes (Bcf/d)

1.76

1.77

1.99

1.93

1.86

1.86

1.89

1.90

1.89

NGL production (Mbbls/d)

133

136

140

145

139

137

138

150

142

NGL equity sales (Mbbls/d)

1

1

1

1

1

1

2

1

Non-consolidated (3)

Gathering volumes (Bcf/d)

6.57

6.24

6.20

6.05

6.27

6.47

6.72

6.72

6.64

Plant inlet natural gas volumes (Bcf/d)

0.98

0.94

0.98

1.04

0.98

0.94

1.13

1.16

1.08

NGL production (Mbbls/d)

72

70

72

74

72

68

71

81

73

NGL equity sales (Mbbls/d)

3

6

5

5

5

5

4

2

4

(1) Excludes certain amounts associated with revenues and operating costs for reimbursable charges.

(2) Includes volumes associated with Susquehanna Supply Hub, the Northeast JV, and Utica Supply Hub, all of which are consolidated.

(3) Includes 100% of the volumes associated with operated equity-method investments, including the Laurel Mountain Midstream partnership, Blue Racer Midstream, and the Bradford Supply Hub and the Marcellus South Supply Hub within the Appalachia Midstream Services partnership.

West

(UNAUDITED)

2024

2025

(Dollars in millions)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

1st Qtr

2nd Qtr

3rd Qtr

Year-to-date

Net gathering, processing, transportation, storage, and fractionation revenues (1)

$

421

$

397

$

409

$

427

$

1,654

$

415

$

426

$

449

$

1,290

Other fee revenues

8

5

4

8

25

8

5

6

19

Commodity margins

12

30

27

28

97

34

29

29

92

Operating and administrative costs (1)

(139

)

(148

)

(157

)

(147

)

(591

)

(152

)

(150

)

(150

)

(452

)

Other segment income (expenses) - net

(2

)

5

(8

)

(5

)

11

(1

)

(28

)

(18

)

Proportional Modified EBITDA of equity-method investments

25

36

35

36

132

38

32

36

106

Modified EBITDA

327

318

323

344

1,312

354

341

342

1,037

Adjustments

1

1

7

1

10

25

25

Adjusted EBITDA

$

328

$

319

$

330

$

345

$

1,322

$

354

$

341

$

367

$

1,062

Statistics for Operated Assets

Gathering and Processing

Gathering volumes (Bcf/d) (2) (3)

5.75

5.25

5.38

5.46

5.46

5.69

5.94

6.14

5.92

Plant inlet natural gas volumes (Bcf/d)

1.52

1.48

1.57

1.57

1.54

1.52

1.69

1.72

1.64

NGL production (Mbbls/d)

87

91

91

90

90

83

102

103

96

NGL equity sales (Mbbls/d)

6

8

6

7

7

6

8

7

7

NGL and Crude Oil Transportation volumes (Mbbls/d) (4)

220

292

304

314

282

310

292

294

299

(1) Excludes certain amounts associated with revenues and operating costs for reimbursable charges.

(2) Includes 100% of the volumes associated with the Rimrock Asset Purchase gathering assets after the purchase on January 31, 2025. 1st Qtr 2025 volumes were revised to reflect the average gathering volumes over the entire period. If averaged over the period owned, 1st Qtr 2025 volumes would have been 5.71 Bcf/d.

(3) Includes 100% of the volumes associated with the Saber Midstream Asset Purchase gathering assets after the purchase on June 2, 2025. Volumes for 2nd Qtr 2025 if averaged over the period owned would have been 6.42 Bcf/d.

(4) Includes 100% of the volumes associated with Overland Pass Pipeline Company (an operated equity-method investment), Rocky Mountain Midstream, and Bluestem pipelines.

Gas & NGL Marketing Services

(UNAUDITED)

2024

2025

(Dollars in millions)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

1st Qtr

2nd Qtr

3rd Qtr

Year-to-date

Commodity margins

$

236

$

3

$

23

$

63

$

325

$

191

$

(16

)

$

6

$

181

Net unrealized gain (loss) from derivative instruments

(95

)

(106

)

10

(150

)

(341

)

(3

)

(4

)

46

39

Operating and administrative costs

(40

)

(23

)

(22

)

(23

)

(108

)

(39

)

(19

)

(14

)

(72

)

Other segment income (expenses) - net

1

1

Proportional Modified EBITDA of equity-method investments

3

8

16

27

Modified EBITDA

101

(126

)

11

(110

)

(124

)

152

(30

)

54

176

Adjustments

88

112

(7

)

146

339

3

15

(43

)

(25

)

Adjusted EBITDA

$

189

$

(14

)

$

4

$

36

$

215

$

155

$

(15

)

$

11

$

151

Statistics

Product Sales Volumes

Natural Gas (Bcf/d)

7.53

6.98

7.14

6.81

7.11

7.27

6.17

6.52

6.65

NGLs (Mbbls/d)

170

162

182

196

177

182

170

174

175

Other

(UNAUDITED)

2024

2025

(Dollars in millions)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

1st Qtr

2nd Qtr

3rd Qtr

Year-to-date

Service revenues

$

4

$

4

$

4

$

3

$

15

$

4

$

4

$

4

$

12

Net realized product sales

113

109

96

137

455

153

146

151

450

Net unrealized gain (loss) from derivative instruments

3

(25

)

3

(7

)

(26

)

(29

)

40

5

16

Operating and administrative costs

(51

)

(50

)

(51

)

(77

)

(229

)

(54

)

(76

)

(71

)

(201

)

Other segment income (expenses) - net

7

9

4

20

1

4

4

9

Proportional Modified EBITDA of equity-method investments

2

2

Modified EBITDA

76

47

58

56

237

75

118

93

286

Adjustments

(2

)

24

(3

)

14

33

29

(40

)

(3

)

(14

)

Adjusted EBITDA

$

74

$

71

$

55

$

70

$

270

$

104

$

78

$

90

$

272

Statistics

Net Product Sales Volumes (1)

Natural Gas (Bcf/d)

0.28

0.24

0.29

0.29

0.27

0.27

0.29

0.30

0.29

NGLs (Mbbls/d)

8

8

9

10

9

10

12

11

11

Crude Oil (Mbbls/d)

5

5

4

5

5

7

8

7

7

(1) Includes 100% of the volumes associated with the Crowheart Acquisition upstream assets after the purchase on November 1, 2024. 4th Qtr 2024 and Year 2024 volumes were revised to reflect the average volumes over the entire period. If averaged over the period owned, the 4th Qtr 2024 and Year 2024 volumes would have been: Natural Gas 0.31 Bcf/d and 0.31 Bcf/d, NGLs 10 Mbbls/ and 11 Mbbls/d, Crude Oil 6 Mbbls/d and 6 Mbbls/d, respectively.

Capital Expenditures and Investments

(UNAUDITED)

2024

2025

(Dollars in millions)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

1st Qtr

2nd Qtr

3rd Qtr

Year-to-date

Capital expenditures:

Transmission, Power & Gulf

$

310

$

397

$

459

$

428

$

1,594

$

369

$

590

$

660

$

1,619

Northeast G&P

71

46

54

53

224

62

39

57

158

West

120

90

98

180

488

549

274

172

995

Gas & NGL Marketing Services

1

1

1

1

Other

43

46

70

107

266

32

68

65

165

Total (1)

$

544

$

579

$

682

$

768

$

2,573

$

1,012

$

972

$

954

$

2,938

Purchases of and contributions to equity-method investments:

Transmission, Power & Gulf

$

27

$

10

$

$

$

37

$

$

$

$

Northeast G&P

25

19

19

12

75

10

10

12

32

West

1

1

2

1

1

Gas & NGL Marketing Services

153

153

Other

6

6

Total

$

52

$

30

$

19

$

13

$

114

$

163

$

16

$

13

$

192

Summary:

Transmission, Power & Gulf

$

337

$

407

$

459

$

428

$

1,631

$

369

$

590

$

660

$

1,619

Northeast G&P

96

65

73

65

299

72

49

69

190

West

120

91

98

181

490

549

274

173

996

Gas & NGL Marketing Services

1

1

153

1

154

Other

43

46

70

107

266

32

74

65

171

Total

$

596

$

609

$

701

$

781

$

2,687

$

1,175

$

988

$

967

$

3,130

Capital investments:

Increases to property, plant, and equipment

$

509

$

632

$

699

$

741

$

2,581

$

978

$

1,063

$

1,038

$

3,079

Purchases of businesses, net of cash acquired

1,851

(7

)

151

249

2,244

1

1

Purchases of and contributions to equity-method investments

52

30

19

13

114

163

16

13

192

Purchases of other long-term investments

2

1

2

6

11

1

3

2

6

Total

$

2,414

$

656

$

871

$

1,009

$

4,950

$

1,143

$

1,082

$

1,053

$

3,278

(1) Increases to property, plant, and equipment

$

509

$

632

$

699

$

741

$

2,581

$

978

$

1,063

$

1,038

$

3,079

Changes in related accounts payable and accrued liabilities

35

(53

)

(17

)

27

(8

)

34

(91

)

(84

)

(141

)

Capital expenditures

$

544

$

579

$

682

$

768

$

2,573

$

1,012

$

972

$

954

$

2,938

Contributions from noncontrolling interests

$

26

$

10

$

$

$

36

$

5

$

14

$

3

$

22

Contributions in aid of construction

$

10

$

13

$

$

4

$

27

$

10

$

16

$

11

$

37

Proceeds from dispositions of equity-method investments

$

$

$

161

$

$

161

$

$

$

$

Non-GAAP Measures

This news release and accompanying materials may include certain financial measures – adjusted EBITDA, adjusted income (“earnings”), adjusted earnings per share, available funds from operations and dividend coverage ratio – that are non-GAAP financial measures as defined under the rules of the SEC.

Our segment performance measure, modified EBITDA, is defined as net income (loss) before income (loss) from discontinued operations, income tax expense, net interest expense, equity earnings from equity-method investments, other net investing income, impairments of equity investments and goodwill, depreciation and amortization expense, and accretion expense associated with asset retirement obligations for nonregulated operations. We also add our proportional ownership share (based on ownership interest) of modified EBITDA of equity-method investments, including our indirect share from interests owned by equity-method investees.

Adjusted EBITDA further excludes items of income or loss that we characterize as unrepresentative of our ongoing operations. Such items are excluded from net income to determine adjusted income and adjusted earnings per share. Management believes this measure provides investors meaningful insight into results from ongoing operations.

Available funds from operations (AFFO) is defined as cash flow from operations excluding the effect of changes in working capital and certain other changes in noncurrent assets and liabilities, reduced by preferred dividends and net distributions to noncontrolling interests. AFFO may be adjusted to exclude certain items that we characterize as unrepresentative of our ongoing operations.

This news release is accompanied by a reconciliation of these non-GAAP financial measures to their nearest GAAP financial measures. Management uses these financial measures because they are accepted financial indicators used by investors to compare company performance. In addition, management believes that these measures provide investors an enhanced perspective of the operating performance of assets and the cash that the business is generating.

Neither adjusted EBITDA, adjusted income, nor available funds from operations are intended to represent cash flows for the period, nor are they presented as an alternative to net income or cash flow from operations. They should not be considered in isolation or as substitutes for a measure of performance prepared in accordance with United States generally accepted accounting principles.

Reconciliation of Income (Loss) from Continuing Operations Attributable to The Williams Companies, Inc. to Non-GAAP Adjusted Income

(UNAUDITED)

2024

2025

(Dollars in millions, except per-share amounts)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

1st Qtr

2nd Qtr

3rd Qtr

Year-to-date

Income (loss) from continuing operations attributable to The Williams Companies, Inc. available to common stockholders

$

631

$

401

$

705

$

485

$

2,222

$

690

$

546

$

646

$

1,882

Income (loss) from continuing operations - diluted earnings (loss) per common share (1)

$

.52

$

.33

$

.58

$

.40

$

1.82

$

.56

$

.45

$

.53

$

1.54

Adjustments:

Transmission, Power & Gulf

Transco rate case timing*

$

$

$

$

$

$

4

$

11

$

(15

)

$

Acquisition and transition-related costs*

10

4

3

1

18

1

1

Net gain related to certain asset retirements*

(11

)

(11

)

Impact of change in payroll policy*

16

16

Total Transmission, Power & Gulf adjustments

10

4

19

1

34

4

12

(26

)

(10

)

Northeast G&P

Adjustment of prior year accrual for loss contingency*

(3

)

(3

)

Our share of operator transition costs at Blue Racer Midstream*

1

1

2

4

Impact of change in payroll policy*

7

7

Total Northeast G&P adjustments

(2

)

8

2

8

West

Acquisition and transition-related costs*

1

1

1

3

Write-off of certain compression assets*

25

25

Impact of change in payroll policy*

7

7

Total West adjustments

1

1

7

1

10

25

25

Gas & NGL Marketing Services

Impact of volatility on NGL linefill transactions*

(6

)

5

2

(4

)

(3

)

11

3

14

Net unrealized (gain) loss from derivative instruments

94

107

(10

)

150

341

3

4

(46

)

(39

)

Impact of change in payroll policy*

1

1

Total Gas & NGL Marketing Services adjustments

88

112

(7

)

146

339

3

15

(43

)

(25

)

Other

Acquisition and transition-related costs*

1

1

2

2

Net unrealized (gain) loss from derivative instruments

(2

)

24

(3

)

7

26

29

(40

)

(5

)

(16

)

Settlement charge related to former operations*

6

6

Total Other adjustments

(2

)

24

(3

)

14

33

29

(40

)

(3

)

(14

)

Adjustments included in Modified EBITDA

97

139

24

164

424

36

(13

)

(47

)

(24

)

Adjustments below Modified EBITDA

Transco rate case timing

11

35

(46

)

Gain on remeasurement of Discovery investment

(127

)

(127

)

Gain on sale of Aux Sable investment

(149

)

(149

)

Our share of Blue Racer Midstream debt extinguishment loss

3

3

Our share of accelerated depreciation related to operator transition at Blue Racer Midstream

1

1

Imputed interest expense on deferred consideration obligations*

12

12

11

5

40

Amortization of intangible assets from 2021 Sequent acquisition

7

7

8

7

29

5

4

5

14

19

19

(257

)

16

(203

)

16

39

(41

)

14

Total adjustments

116

158

(233

)

180

221

52

26

(88

)

(10

)

Less tax effect for above items

(28

)

(38

)

56

(42

)

(52

)

(12

)

(6

)

20

2

Adjustments for tax-related items (2)

(44

)

(44

)

25

25

Adjusted income from continuing operations available to common stockholders

$

719

$

521

$

528

$

579

$

2,347

$

730

$

566

$

603

$

1,899

Adjusted income from continuing operations - diluted earnings per common share (1)

$

.59

$

.43

$

.43

$

.47

$

1.92

$

.60

$

.46

$

.49

$

1.55

Weighted-average shares - diluted (millions)

1,222

1,222

1,223

1,224

1,223

1,225

1,224

1,225

1,224

(1) The sum of earnings per share for the quarters may not equal the total earnings per share for the year due to changes in the weighted-average number of common shares outstanding.

(2) The fourth quarter of 2024 includes an adjustment associated with a decrease in our estimated deferred state income tax rate and the third quarter of 2025 includes an adjustment associated with an increase in our estimated deferred state income tax rate.

*Amounts are included in Additional adjustments on the Reconciliation of Cash Flow from Operating Activities to Non-GAAP Available Funds from Operations (AFFO).

Reconciliation of "Net Income (Loss)" to “Modified EBITDA” and Non-GAAP “Adjusted EBITDA”

(UNAUDITED)

2024

2025

(Dollars in millions)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

1st Qtr

2nd Qtr

3rd Qtr

Year-to-date

Net income (loss)

$

662

$

426

$

741

$

517

$

2,346

$

729

$

583

$

683

$

1,995

Provision (benefit) for income taxes

193

129

227

91

640

193

174

246

613

Interest expense

349

339

338

338

1,364

349

350

372

1,071

Equity (earnings) losses

(137

)

(147

)

(147

)

(129

)

(560

)

(155

)

(142

)

(152

)

(449

)

Other investing (income) loss - net

(24

)

(18

)

(290

)

(11

)

(343

)

(8

)

(4

)

(19

)

(31

)

Proportional Modified EBITDA of equity-method investments

228

238

227

216

909

236

231

250

717

Depreciation, depletion, and amortization expenses

548

540

566

565

2,219

585

605

564

1,754

Accretion expense associated with asset retirement obligations for nonregulated operations

18

21

17

25

81

24

24

23

71

Modified EBITDA

$

1,837

$

1,528

$

1,679

$

1,612

$

6,656

$

1,953

$

1,821

$

1,967

$

5,741

Transmission, Power & Gulf

$

829

$

808

$

811

$

825

$

3,273

$

858

$

891

$

973

$

2,722

Northeast G&P

504

481

476

497

1,958

514

501

505

1,520

West

327

318

323

344

1,312

354

341

342

1,037

Gas & NGL Marketing Services

101

(126

)

11

(110

)

(124

)

152

(30

)

54

176

Other

76

47

58

56

237

75

118

93

286

Total Modified EBITDA

$

1,837

$

1,528

$

1,679

$

1,612

$

6,656

$

1,953

$

1,821

$

1,967

$

5,741

Adjustments (1):

Transmission, Power & Gulf

$

10

$

4

$

19

$

1

$

34

$

4

$

12

$

(26

)

$

(10

)

Northeast G&P

(2

)

8

2

8

West

1

1

7

1

10

25

25

Gas & NGL Marketing Services

88

112

(7

)

146

339

3

15

(43

)

(25

)

Other

(2

)

24

(3

)

14

33

29

(40

)

(3

)

(14

)

Total Adjustments

$

97

$

139

$

24

$

164

$

424

$

36

$

(13

)

$

(47

)

$

(24

)

Adjusted EBITDA:

Transmission, Power & Gulf

$

839

$

812

$

830

$

826

$

3,307

$

862

$

903

$

947

$

2,712

Northeast G&P

504

479

484

499

1,966

514

501

505

1,520

West

328

319

330

345

1,322

354

341

367

1,062

Gas & NGL Marketing Services

189

(14

)

4

36

215

155

(15

)

11

151

Other

74

71

55

70

270

104

78

90

272

Total Adjusted EBITDA

$

1,934

$

1,667

$

1,703

$

1,776

$

7,080

$

1,989

$

1,808

$

1,920

$

5,717

(1) Adjustments by segment are detailed in the "Reconciliation of Income (Loss) from Continuing Operations Attributable to The Williams Companies, Inc. to Non-GAAP Adjusted Income," which is also included in these materials.

Reconciliation of Cash Flow from Operating Activities to Non-GAAP Available Funds from Operations (AFFO)

(UNAUDITED)

2024

2025

(Dollars in millions, except coverage ratios)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

1st Qtr

2nd Qtr

3rd Qtr

Year-to-date

Net cash provided (used) by operating activities

$

1,234

$

1,279

$

1,243

$

1,218

$

4,974

$

1,433

$

1,450

$

1,439

$

4,322

Exclude: Cash (provided) used by changes in:

Accounts receivable

(314

)

44

(97

)

536

169

(82

)

(219

)

(83

)

(384

)

Inventories, including write-downs

(38

)

35

1

1

(1

)

(29

)

86

4

61

Other current assets and deferred charges

(9

)

(3

)

28

(25

)

(9

)

40

(4

)

7

43

Accounts payable

309

(90

)

98

(456

)

(139

)

29

236

94

359

Other current liabilities

218

(142

)

32

(143

)

(35

)

70

(220

)

55

(95

)

Changes in current and noncurrent commodity derivative assets and liabilities

68

73

(67

)

212

286

(4

)

(15

)

(58

)

(77

)

Other, including changes in noncurrent assets and liabilities

61

90

49

45

245

29

48

51

128

Preferred dividends paid

(1

)

(1

)

(1

)

(3

)

(1

)

(1

)

(2

)

Dividends and distributions paid to noncontrolling interests

(64

)

(66

)

(48

)

(64

)

(242

)

(69

)

(62

)

(66

)

(197

)

Contributions from noncontrolling interests

26

10

36

5

14

3

22

Additional Adjustments *

17

20

48

12

97

24

3

4

31

Available funds from operations

$

1,507

$

1,250

$

1,286

$

1,335

$

5,378

$

1,445

$

1,317

$

1,449

$

4,211

Common dividends paid

$

579

$

579

$

579

$

579

$

2,316

$

610

$

611

$

611

$

1,832

Coverage ratio:

Available funds from operations divided by Common dividends paid

2.60

2.16

2.22

2.31

2.32

2.37

2.16

2.37

2.30

*See detail on Reconciliation of Income (Loss) from Continuing Operations Attributable to The Williams Companies, Inc. to Non-GAAP Adjusted Income. The first quarter of 2025 also includes $20 million related to an expected distribution from an equity-method investee not received until early April. This amount is excluded from the second quarter of 2025.

Reconciliation of Net Income (Loss) from Continuing Operations to Modified EBITDA, Non-GAAP Adjusted EBITDA and Cash Flow from Operating Activities to Available Funds from Operations (AFFO)

2025 Guidance

(Dollars in millions, except per-share amounts and coverage ratio)

Low

Mid

High

Net income (loss) from continuing operations

$

2,630

$

2,745

$

2,860

Provision (benefit) for income taxes

782

817

852

Interest expense

1,430

Equity (earnings) losses

(605

)

Proportional Modified EBITDA of equity-method investments

985

Depreciation and amortization expenses and accretion for asset retirement obligations associated with nonregulated operations

2,420

Other

(18

)

Modified EBITDA

$

7,624

$

7,774

$

7,924

EBITDA Adjustments

(24

)

Adjusted EBITDA

$

7,600

$

7,750

$

7,900

Net income (loss) from continuing operations

$

2,630

$

2,745

$

2,860

Less: Net income (loss) attributable to noncontrolling interests and preferred dividends

165

Net income (loss) from continuing operations attributable to The Williams Companies, Inc. available to common stockholders

$

2,465

$

2,580

$

2,695

Adjustments:

Adjustments included in Modified EBITDA (1)

(24

)

Adjustments below Modified EBITDA (2)

18

Allocation of adjustments to noncontrolling interests

Total adjustments

(6

)

Less tax effect for above items

1

Adjusted income from continuing operations available to common stockholders

$

2,460

$

2,575

$

2,690

Adjusted income from continuing operations - diluted earnings per common share

$

2.01

$

2.10

$

2.19

Weighted-average shares - diluted (millions)

1,227

Available Funds from Operations (AFFO):

Net cash provided by operating activities (net of changes in working capital, changes in current and noncurrent derivative assets and liabilities, and changes in other, including changes in noncurrent assets and liabilities)

$

5,760

$

5,875

$

5,990

Preferred dividends paid

(3

)

Dividends and distributions paid to noncontrolling interests

(270

)

Contributions from noncontrolling interests

42

Additional adjustments (3)

31

Available funds from operations (AFFO)

$

5,560

$

5,675

$

5,790

AFFO per common share

$

4.53

$

4.63

$

4.72

Common dividends paid

$

2,445

Coverage Ratio (AFFO/Common dividends paid)

2.27x

2.32x

2.37x

(1) Primarily includes September year-to-date adjustments as shown in the "Reconciliation of Income (Loss) from Continuing Operations Attributable to The Williams Companies, Inc. to Non-GAAP Adjusted Income".

(2) Adjustments reflect amortization of intangible assets from Sequent acquisition.

(3) Primarily includes September year-to-date adjustments as shown in the "Reconciliation of Cash Flow from Operating Activities to Non-GAAP Available Funds from Operations (AFFO)".

Forward-Looking Statements

The reports, filings, and other public announcements of The Williams Companies, Inc. (Williams) may contain or incorporate by reference statements that do not directly or exclusively relate to historical facts. Such statements are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended (Exchange Act). These forward-looking statements relate to anticipated financial performance, management’s plans and objectives for future operations, business prospects, outcomes of regulatory proceedings, market conditions, and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995.

All statements, other than statements of historical facts, included in this report that address activities, events, or developments that we expect, believe, or anticipate will exist or may occur in the future, are forward-looking statements. Forward-looking statements can be identified by various forms of words such as “anticipates,” “believes,” “seeks,” “could,” “may,” “should,” “continues,” “estimates,” “expects,” “forecasts,” “intends,” “might,” “goals,” “objectives,” “targets,” “planned,” “potential,” “projects,” “scheduled,” “will,” “assumes,” “guidance,” “outlook,” “in-service date,” or other similar expressions. These forward-looking statements are based on management’s beliefs and assumptions and on information currently available to management and include, among others, statements regarding:

Forward-looking statements are based on numerous assumptions, uncertainties, and risks that could cause future events or results to be materially different from those stated or implied in this report. Many of the factors that will determine these results are beyond our ability to control or predict. Specific factors that could cause actual results to differ from results contemplated by the forward-looking statements include, among others, the following:

Given the uncertainties and risk factors that could cause our actual results to differ materially from those contained in any forward-looking statement, we caution investors not to unduly rely on our forward-looking statements. We disclaim any obligations to, and do not intend to, update the above list or announce publicly the result of any revisions to any of the forward-looking statements to reflect future events or developments.

In addition to causing our actual results to differ, the factors listed above and referred to below may cause our intentions to change from those statements of intention set forth in this report. Such changes in our intentions may also cause our results to differ. We may change our intentions, at any time and without notice, based upon changes in such factors, our assumptions, or otherwise.

Because forward-looking statements involve risks and uncertainties, we caution that there are important factors, in addition to those listed above, that may cause actual results to differ materially from those contained in the forward-looking statements. For a detailed discussion of those factors, see (a) Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the SEC on February 25, 2025, and (b) Part II, Item 1A. Risk Factors in subsequent Quarterly Reports on Form 10-Q.