EX-99.12wmb_20251231xer.htmEX-99.1 Document
Exhibit 99.1
News Release
Williams (NYSE: WMB)
One Williams Center
Tulsa, OK 74172
800-Williams
www.williams.com
DATE: Tuesday, Feb. 10, 2026
MEDIA CONTACT:
INVESTOR CONTACTS:
media@williams.com
(800) 945-8723
Danilo Juvane
(918) 573-5075
Caroline Sardella
(918) 230-9992
Williams Delivers Another Year of Record Results; Company to Host Analyst Day Event Today Starting at 8:30 a.m. ET
TULSA, Okla. – Williams (NYSE: WMB) today announced its unaudited financial results for the three and 12 months ended Dec. 31, 2025.
Natural gas focused strategy continues to drive key financial results
•GAAP net income: $2.615 billion, or $2.14 per diluted share (EPS), up 18% vs. 2024
•Adjusted net income: $2.571 billion, or $2.10 per diluted share (Adj. EPS), up 10% and 9%, respectively, vs. 2024
•Adjusted EBITDA: $7.750 billion, up $670 million or 9% vs. 2024
•Cash flow from operations (CFFO): $5.898 billion, up $924 million or 19% vs. 2024
•Available funds from operations (AFFO): $5.858 billion, up $480 million or 9% vs. 2024
•Raised dividend by 5% to $2.10 annualized for 2026; 52 consecutive years of dividend payments
•Ended year with 2.40x dividend coverage ratio (AFFO basis)
•G12026 Adjusted EBITDA guidance range of $8.05 billion to $8.35 billion, up 6% vs. 2025 at midpoint
Robust project execution in 2025 fuels momentum for 2026 growth
•Completed 12 projects in 2025: 6 pipeline transmission, 2 gathering and 4 Deepwater
•Announced 10 projects in 2025: 5 pipeline transmission, 1 gathering, 1 storage and 3 power innovation projects
•Executed Haynesville E&P sale and strategic partnership with Woodside Energy
•Closed on acquisitions of Rimrock and Saber Midstream
•Announcing an additional power innovation project, Socrates the Younger, and the upsizing and extending of contract length for two projects currently in execution
•Recognized by S&P Global, CDP, ISS and MSCI for ongoing commitment to transparency, strong governance and environmental performance
CEO Perspective
Chad Zamarin, president and chief executive officer, made the following comments:
“In 2025, Williams delivered record Adjusted EBITDA of $7.75 billion, capping a five‑year Adjusted EBITDA CAGR of 9%, and a five-year EPS CAGR of 14%. Today we are announcing 2026 Adjusted
1
EBITDA guidance of $8.2 billion at the midpoint, reflecting the ongoing strong growth of our business as we realize the benefit of pipeline transmission and offshore projects that came online in 2025, as well as expected revenues from a partial year of our first power innovation project that is expected to come online in the second half of 2026.
“Our teams completed 1.1 Bcf/d of pipeline transmission projects in 2025 and are advancing another 7.1 Bcf/d of pipeline projects currently in execution. In addition, we are announcing a new power innovation project, Socrates the Younger, which increases our power innovation investment to over $7 billion of capital in execution. This consistent execution in key growth areas across our expanding footprint continues to open new commercial opportunities and reinforces our critical role in the nation’s energy future.”
Zamarin added, “As we look to 2026 and beyond, we are focused on delivering for shareholders through our position as the nation's natural gas infrastructure leader and our focus on reliable, affordable and clean energy infrastructure solutions. After five years of exceeding our earnings growth objectives and strong performance by our teams, we look forward to the next five years of opportunity and are excited to be so well positioned for even stronger performance, with many of the projects that will deliver the next five years of growth already commercialized and well underway."
Williams Summary Financial Information
4Q
Full Year
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
$733
$485
$2,615
$2,222
Net Income Per Share
$0.60
$0.40
$2.14
$1.82
Cash Flow From Operations
$1,576
$1,218
$5,898
$4,974
Non-GAAP Measures (1)
Adjusted EBITDA
$2,033
$1,776
$7,750
$7,080
Adjusted Net Income
$672
$579
$2,571
$2,347
Adjusted Earnings Per Share
$0.55
$0.47
$2.10
$1.92
Available Funds from Operations
$1,647
$1,335
$5,858
$5,378
Dividend Coverage Ratio
2.70
x
2.31
x
2.40
x
2.32
x
Other
Debt-to-Adjusted EBITDA at Quarter End (2)
3.71x
3.79
x
Capital Investments (Excluding Acquisitions) (3) (4)
$1,532
$760
$4,294
$2,706
(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 $573 million of cash purchases of certain reimbursable long-lead Power Innovation equipment, 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) Fourth quarter and full-year 2025 capital excludes $712 million for certain reimbursable long-lead equipment and $372 million for the Louisiana LNG and Driftwood Pipeline purchase. Full-year 2025 capital also excludes $319 million for the Rimrock acquisition, which closed January 2025; $153 million for the investment in Cogentrix, which closed March 2025; and $43 million for the acquisition of Saber Midstream, which closed June 2025. Fourth quarter and full-year 2024 capital excludes $249 million for the Crowheart acquisition. Full-year 2024 capital also excludes $1.844 billion for the acquisition of the Gulf Coast Storage assets, which closed January 2024, and $151 million for the Discovery consolidation, which closed August 2024.
GAAP Measures
Fourth-quarter and full-year 2025 net income increased by $248 million and $393 million, respectively, compared to the prior year. Both comparative periods benefited from:
2
•Higher service revenues of $208 million and $720 million, respectively, driven by Transco’s higher net rates and expansion projects, new Gulf volumes, and higher gathering and processing volumes including acquisitions,
•Favorable changes of $252 million and $517 million, respectively, in net unrealized gains/losses on commodity derivatives, and
•Higher equity earnings of $182 million and $200 million, respectively, primarily reflecting an increased valuation of our Cogentrix investment and contributions from Appalachia Midstream and Blue Racer investments,
•Higher net realized sales from upstream operations of $29 million and $161 million, respectively, including contributions from the fourth-quarter 2024 Crowheart acquisition.
These favorable changes were impacted by:
•Impairments of certain assets totaling $187 million and $212 million, respectively, primarily related to the planned sale of gas gathering assets in the Mid-Continent region,
•A higher provision for income taxes of $153 million and $217 million, respectively, driven by increased pre-tax income,
•Higher depreciation expense, higher operating and administrative costs driven by acquisitions and assets placed in service, and higher net interest expense.
•The full-year period also reflected $301 million of lower investing income, driven by the absence of third-quarter 2024 gains totaling $276 million related to the sale of our Aux Sable interests and the Discovery Acquisition, as well as lower commodity margins, lower equity allowance for funds used during construction (equity AFUDC) associated with capital projects at Transco, and increased income attributable to noncontrolling interests.
Fourth-quarter and full-year 2025 cash flow from operations increased compared to the prior year primarily due to higher operating results exclusive of non-cash items. Both periods also benefited from favorable net changes in derivative collateral requirements.
Non-GAAP Measures
Fourth-quarter and full-year 2025 Adjusted EBITDA increased by $257 million and $670 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. The full-year comparison was also impacted by lower equity AFUDC.
Fourth-quarter and full-year 2025 Adjusted Net Income improved by $93 million and $224 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 investing income gains, the 2025 impairments, the equity earnings from the increased valuation of our Cogentrix investment, and the related income tax effects of such adjustments.
Fourth-quarter and full-year 2025 Available Funds From Operations (AFFO) increased by $312 million and $480 million, respectively, compared to the prior year primarily due to higher adjusted operating results exclusive of noncash items.
Business Segment Results & Form 10-K
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 2025 Form 10-K.
3
Fourth Quarter
Full Year
Amounts in millions
Modified EBITDA
Adjusted EBITDA
Modified EBITDA
Adjusted EBITDA
4Q 2025
4Q 2024
Change
4Q 2025
4Q 2024
Change
2025
2024
Change
2025
2024
Change
Transmission, Power & Gulf
$998
$825
$173
$998
$826
$172
$3,720
$3,273
$447
$3,710
$3,307
$403
Northeast G&P
508
497
11
508
499
9
2,028
1,958
70
2,028
1,966
62
West
201
344
(143)
388
345
43
1,238
1,312
(74)
1,450
1,322
128
Gas & NGL Marketing Services
135
(110)
245
42
36
6
311
(124)
435
193
215
(22)
Other
90
56
34
97
70
27
376
237
139
369
270
99
Total
$1,932
$1,612
$320
$2,033
$1,776
$257
$7,673
$6,656
$1,017
$7,750
$7,080
$670
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
Fourth-quarter and full-year 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. The full-year also reflects higher operating and administrative costs and lower equity AFUDC. Modified EBITDA for full-year 2024 was impacted by one-time acquisition costs and the unfavorable impact of a change in payroll policy, which are excluded from Adjusted EBITDA.
Northeast G&P
Fourth-quarter and full-year 2025 Modified and Adjusted EBITDA increased compared to the prior year driven primarily by higher gathering volumes at Bradford within Appalachia Midstream. The full-year period also benefited from higher volumes at Ohio Valley Midstream and contributions from Blue Racer, partially offset by the absence of Aux Sable, which was sold in third-quarter 2024.
West
Fourth-quarter and full-year 2025 Modified EBITDA was impacted by the previously described impairment of gas gathering assets in the Mid-Continent region, which is excluded from Adjusted EBITDA. Both Modified and Adjusted EBITDA for the quarterly and full-year periods benefited from the Louisiana Energy Gateway project coming into service, new volumes from the 2025 Rimrock and Saber acquisitions, and higher volumes in the Haynesville region, partially offset by lower minimum volume commitment (MVC) revenues in the Eagle Ford region.
Gas & NGL Marketing Services
Fourth-quarter and full-year 2025 Modified EBITDA increased from the prior year primarily reflecting $251 million and $481 million, respectively, of net favorable changes in unrealized gains/losses on commodity derivatives, which are 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 fourth-quarter and full-year 2025 Modified and Adjusted EBITDA compared to the prior year reflects contributions from the fourth-quarter 2024 Crowheart acquisition. Full-year Modified EBITDA also includes a $36 million net favorable change in unrealized gains/losses on commodity derivatives, which is excluded from Adjusted EBITDA.
2026 Financial Guidance
The company expects 2026 Adjusted EBITDA between $8.05 billion and $8.35 billion. G2The company also expects 2026 growth capex between $6.1 billion and $6.7 billion and G3maintenance capex between $850 million and $950 million. G4Williams anticipates a leverage ratio midpoint for 2026 of ~4.0x and has increased the dividend by 5% on an annualized basis to $2.10 in 2026 from $2.00 in 2025. Guidance for 2026 growth capex and debt-to-adjusted EBITDA exclude certain reimbursable long-lead equipment.
4
Williams 2026 Analyst Day Schedule for Today; Materials to be Posted Shortly
Williams is hosting its 2026 Analyst Day event this morning, beginning at 8:30 a.m. Eastern Time (7:30 a.m. Central Time). In addition to discussing 2025 results, Williams' management will give in-depth presentations covering the company's natural gas infrastructure strategy designed to meet growing clean energy demands. These presentations will highlight the company’s efficient operations, disciplined project execution, strong financial position and financial guidance. Presentation slides and earnings materials will be accessible on the Williams’ Investor Relations website shortly.
Participants who wish to view the live presentation can access the webcast here: https://edge.media-server.com/mmc/p/6nt6ss65/
A replay of the 2026 Analyst Day 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.
5
The Williams Companies, Inc.
Consolidated Statement of Income
(Unaudited)
Year Ended December 31,
2025
2024
2023
(Millions, except per-share amounts)
Revenues:
Service revenues
$
8,348
$
7,628
$
7,026
Service revenues – commodity consideration
192
134
146
Product sales
3,290
2,991
2,779
Net gain (loss) from commodity derivatives
120
(250)
956
Total revenues
11,950
10,503
10,907
Costs and expenses:
Product costs
2,133
2,075
1,884
Net processing commodity expenses
66
43
151
Operating and maintenance expenses
2,282
2,179
1,984
Depreciation, depletion, and amortization expenses
2,347
2,219
2,071
General and administrative expenses
721
708
665
Impairment or write-off of certain assets
212
—
10
Gain on sale of business
—
—
(129)
Other (income) expense – net
(7)
(60)
(40)
Total costs and expenses
7,754
7,164
6,596
Operating income (loss)
4,196
3,339
4,311
Equity earnings (losses)
760
560
589
Other investing income (loss) – net
42
343
108
Interest expense
(1,442)
(1,364)
(1,236)
Net gain from Energy Transfer litigation judgment
—
—
534
Other income (expense) – net
69
108
99
Income (loss) before income taxes
3,625
2,986
4,405
Less: Provision (benefit) for income taxes
857
640
1,005
Income (loss) from continuing operations
2,768
2,346
3,400
Income (loss) from discontinued operations
—
—
(97)
Net income (loss)
2,768
2,346
3,303
Less: Net income (loss) attributable to noncontrolling interests
150
121
124
Net income (loss) attributable to The Williams Companies, Inc.
2,618
2,225
3,179
Less: Preferred stock dividends
3
3
3
Net income (loss) available to common stockholders
$
2,615
$
2,222
$
3,176
Amounts attributable to The Williams Companies, Inc. available to common stockholders:
Income (loss) from continuing operations
$
2,615
$
2,222
$
3,273
Income (loss) from discontinued operations
—
—
(97)
Net income (loss) available to common stockholders
$
2,615
$
2,222
$
3,176
Basic earnings (loss) per common share:
Income (loss) from continuing operations
$
2.14
$
1.82
$
2.69
Income (loss) from discontinued operations
—
—
(.08)
Net income (loss) available to common stockholders
$
2.14
$
1.82
$
2.61
Weighted-average shares (millions)
1,221
1,219
1,218
Diluted earnings (loss) per common share:
Income (loss) from continuing operations
$
2.14
$
1.82
$
2.68
Income (loss) from discontinued operations
—
—
(.08)
Net income (loss) available to common stockholders
$
2.14
$
1.82
$
2.60
Weighted-average shares (millions)
1,225
1,223
1,223
6
The Williams Companies, Inc.
Consolidated Balance Sheet
(Unaudited)
December 31,
2025
2024
(Millions, except per-share amounts)
ASSETS
Current assets:
Cash and cash equivalents
$
63
$
60
Trade accounts and other receivables (net of allowance of ($1) at December 31, 2025 and December 31, 2024)
2,084
1,863
Inventories
314
279
Assets held for sale
318
1
Derivative assets
209
267
Other current assets and deferred charges
256
191
Total current assets
3,244
2,661
Investments
4,559
4,140
Property, plant, and equipment – net
41,996
38,692
Intangible assets – net
6,763
7,209
Regulatory assets, deferred charges, and other
2,011
1,830
Total assets
$
58,573
$
54,532
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
$
2,224
$
1,613
Liabilities held for sale
63
—
Derivative liabilities
135
164
Other current liabilities
1,639
1,360
Commercial paper
700
455
Long-term debt due within one year
1,345
1,720
Total current liabilities
6,106
5,312
Long-term debt
27,316
24,736
Deferred income tax liabilities
5,170
4,376
Regulatory liabilities, deferred income, and other
4,986
5,268
Contingent liabilities and commitments
Equity:
Stockholders’ equity:
Preferred stock ($1 par value; 30 million shares authorized at December 31, 2025 and December 31, 2024; 35 thousand shares issued at December 31, 2025 and December 31, 2024)
35
35
Common stock ($1 par value; 1,470 million shares authorized at December 31, 2025 and December 31, 2024; 1,261 million shares issued at December 31, 2025 and 1,258 million shares issued at December 31, 2024)
1,261
1,258
Capital in excess of par value
24,801
24,643
Retained deficit
(12,237)
(12,396)
Accumulated other comprehensive income (loss)
127
76
Treasury stock, at cost (39 million shares at December 31, 2025 and December 31, 2024 of common stock)
(1,180)
(1,180)
Total stockholders’ equity
12,807
12,436
Noncontrolling interests in consolidated subsidiaries
2,188
2,404
Total equity
14,995
14,840
Total liabilities and equity
$
58,573
$
54,532
7
The Williams Companies, Inc.
Consolidated Statement of Cash Flows
(Unaudited)
Year Ended December 31,
2025
2024
2023
(Millions)
OPERATING ACTIVITIES:
Net income (loss)
$
2,768
$
2,346
$
3,303
Adjustments to reconcile to net cash provided (used) by operating activities:
Depreciation, depletion, and amortization
2,347
2,219
2,071
Provision (benefit) for deferred income taxes
744
506
951
Equity (earnings) losses
(760)
(560)
(589)
Distributions from equity-method investees
800
789
796
Impairment or write-off of certain assets
212
—
10
Net unrealized (gain) loss from commodity derivative instruments
(150)
367
(660)
Gain on sale of business
—
—
(129)
Gain on disposition of equity-method investments
—
(149)
—
Gain on remeasurement of equity-method investments
—
(127)
(30)
Inventory write-downs
8
10
30
Amortization of stock-based awards
93
99
77
Cash provided (used) by changes in current assets and liabilities:
Accounts receivable
(219)
(169)
1,089
Inventories
(45)
(9)
13
Other current assets and deferred charges
(71)
9
60
Accounts payable
115
139
(1,009)
Other current liabilities
170
35
(19)
Changes in current and noncurrent commodity derivative assets and liabilities
99
(286)
200
Other, including changes in noncurrent assets and liabilities
(213)
(245)
(226)
Net cash provided (used) by operating activities
5,898
4,974
5,938
FINANCING ACTIVITIES:
Proceeds from (payments of) commercial paper – net
245
(269)
372
Proceeds from long-term debt
4,940
3,594
2,755
Payments of long-term debt
(2,827)
(2,946)
(634)
Payments for debt issuance costs
(45)
(32)
(23)
Proceeds from issuance of common stock
9
10
6
Purchases of treasury stock
—
—
(130)
Common dividends paid
(2,442)
(2,316)
(2,179)
Dividends and distributions paid to noncontrolling interests
(259)
(242)
(213)
Contributions from noncontrolling interests
36
36
18
Other – net
(63)
(36)
(21)
Net cash provided (used) by financing activities
(406)
(2,201)
(49)
INVESTING ACTIVITIES:
Property, plant, and equipment:
Capital expenditures (1)
(4,893)
(2,573)
(2,516)
Dispositions – net
(106)
(105)
(51)
Proceeds from sale of business
—
—
346
Purchases of businesses, net of cash acquired
(1)
(2,244)
(1,568)
Proceeds from dispositions of equity-method investments
—
161
—
Purchases of and contributions to equity-method investments
(511)
(114)
(141)
Other – net
22
12
39
Net cash provided (used) by investing activities
(5,489)
(4,863)
(3,891)
Increase (decrease) in cash and cash equivalents
3
(2,090)
1,998
Cash and cash equivalents at beginning of year
60
2,150
152
Cash and cash equivalents at end of period
$
63
$
60
$
2,150
_________
(1) Increases to property, plant, and equipment
$
(5,375)
$
(2,581)
$
(2,564)
Changes in related accounts payable and accrued liabilities
482
8
48
Capital expenditures
$
(4,893)
$
(2,573)
$
(2,516)
8
Transmission, Power & Gulf
(UNAUDITED)
2024
2025
(Dollars in millions)
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
Regulated interstate natural gas transportation, storage, and other revenues (1)
$
836
$
805
$
833
$
864
$
3,338
$
873
$
892
$
930
$
953
$
3,648
Gathering, processing, storage and transportation revenues (1)
137
147
167
170
621
179
218
237
258
892
Other fee revenues
12
9
7
9
37
13
11
6
9
39
Commodity margins
9
5
11
28
53
14
17
16
21
68
Operating and administrative costs (1)
(254)
(261)
(294)
(295)
(1,104)
(270)
(286)
(290)
(296)
(1,142)
Other segment income (expenses) - net (1)
43
54
46
12
155
13
2
37
16
68
Proportional Modified EBITDA of equity-method investments
46
49
41
37
173
36
37
37
37
147
Modified EBITDA
829
808
811
825
3,273
858
891
973
998
3,720
Adjustments
10
4
19
1
34
4
12
(26)
—
(10)
Adjusted EBITDA
$
839
$
812
$
830
$
826
$
3,307
$
862
$
903
$
947
$
998
$
3,710
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
15.0
15.0
Avg. daily firm reserved capacity (MMdth)
20.3
19.7
20.1
20.4
20.1
20.8
20.6
20.6
21.0
20.8
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
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
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
3.5
3.4
Avg. daily firm reserved capacity (MMdth)
8.4
8.0
8.1
8.3
8.2
8.4
8.0
8.0
8.3
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
1.1
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
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
0.86
0.72
Plant inlet natural gas volumes (Bcf/d)
0.72
0.62
0.73
0.75
0.71
0.78
0.89
0.97
1.05
0.93
NGL production (Mbbls/d)
43
43
49
54
47
61
76
87
101
81
NGL equity sales (Mbbls/d)
8
10
9
13
10
10
15
12
16
13
Crude oil transportation volumes (Mbbls/d)
118
114
109
110
113
124
196
238
274
208
(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.
9
Northeast G&P
(UNAUDITED)
2024
2025
(Dollars in millions)
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
Gathering, processing, transportation, and fractionation revenues (1)
$
411
$
398
$
407
$
419
$
1,635
$
420
$
419
$
421
$
418
$
1,678
Other fee revenues
34
35
33
33
135
35
37
36
37
145
Commodity margins
11
—
8
5
24
6
6
6
6
24
Operating and administrative costs (1)
(108)
(108)
(120)
(105)
(441)
(106)
(113)
(114)
(116)
(449)
Other segment income (expenses) - net
(1)
3
(1)
2
3
—
(2)
(5)
(3)
(10)
Proportional Modified EBITDA of equity-method investments
157
153
149
143
602
159
154
161
166
640
Modified EBITDA
504
481
476
497
1,958
514
501
505
508
2,028
Adjustments
—
(2)
8
2
8
—
—
—
—
—
Adjusted EBITDA
$
504
$
479
$
484
$
499
$
1,966
$
514
$
501
$
505
$
508
$
2,028
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
4.02
4.16
Plant inlet natural gas volumes (Bcf/d)
1.76
1.77
1.99
1.93
1.86
1.86
1.89
1.90
1.90
1.89
NGL production (Mbbls/d)
133
136
140
145
139
137
138
150
147
143
NGL equity sales (Mbbls/d)
1
1
1
—
1
1
1
2
1
1
Non-consolidated (3)
Gathering volumes (Bcf/d)
6.57
6.24
6.20
6.05
6.27
6.47
6.72
6.72
7.01
6.73
Plant inlet natural gas volumes (Bcf/d)
0.98
0.94
0.98
1.04
0.98
0.94
1.13
1.16
1.16
1.10
NGL production (Mbbls/d)
72
70
72
74
72
68
71
81
80
75
NGL equity sales (Mbbls/d)
3
6
5
5
5
5
4
2
1
3
(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.
10
West
(UNAUDITED)
2024
2025
(Dollars in millions)
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
Net gathering, processing, transportation, storage, and fractionation revenues (1)
$
421
$
397
$
409
$
427
$
1,654
$
415
$
426
$
449
$
474
$
1,764
Other fee revenues
8
5
4
8
25
8
5
6
8
27
Commodity margins
12
30
27
28
97
34
29
29
26
118
Operating and administrative costs (1)
(139)
(148)
(157)
(147)
(591)
(152)
(150)
(150)
(153)
(605)
Other segment income (expenses) - net
—
(2)
5
(8)
(5)
11
(1)
(3)
(3)
4
Impairment or write-off of certain assets
—
—
—
—
—
—
—
(25)
(187)
(212)
Proportional Modified EBITDA of equity-method investments
25
36
35
36
132
38
32
36
36
142
Modified EBITDA
327
318
323
344
1,312
354
341
342
201
1,238
Adjustments
1
1
7
1
10
—
—
25
187
212
Adjusted EBITDA
$
328
$
319
$
330
$
345
$
1,322
$
354
$
341
$
367
$
388
$
1,450
Statistics for Operated Assets
Gathering and Processing
Gathering volumes (Bcf/d)
5.75
5.25
5.38
5.46
5.46
5.69
5.94
6.14
6.56
6.09
Plant inlet natural gas volumes (Bcf/d)
1.52
1.48
1.57
1.57
1.54
1.52
1.69
1.72
1.78
1.68
NGL production (Mbbls/d)
87
91
91
90
90
83
102
103
105
99
NGL equity sales (Mbbls/d)
6
8
6
7
7
6
8
7
7
7
NGL and Crude Oil Transportation volumes (Mbbls/d) (2)
220
292
304
314
282
310
292
294
281
294
(1) Excludes certain amounts associated with revenues and operating costs for reimbursable charges.
(2) Includes 100% of the volumes associated with Overland Pass Pipeline Company (an operated equity-method investment), Rocky Mountain Midstream, and Bluestem pipelines.
11
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
4th Qtr
Year
Commodity margins
$
236
$
3
$
23
$
63
$
325
$
191
$
(16)
$
6
$
45
$
226
Net unrealized gain (loss) from derivative instruments
(95)
(106)
10
(150)
(341)
(3)
(4)
46
101
140
Operating and administrative costs
(40)
(23)
(22)
(23)
(108)
(39)
(19)
(14)
(21)
(93)
Other segment income (expenses) - net
—
—
—
—
—
—
1
—
1
2
Proportional Modified EBITDA of equity-method investments
—
—
—
—
—
3
8
16
9
36
Modified EBITDA
101
(126)
11
(110)
(124)
152
(30)
54
135
311
Adjustments
88
112
(7)
146
339
3
15
(43)
(93)
(118)
Adjusted EBITDA
$
189
$
(14)
$
4
$
36
$
215
$
155
$
(15)
$
11
$
42
$
193
Statistics
Product Sales Volumes
Natural Gas (Bcf/d)
7.53
6.98
7.14
6.81
7.11
7.27
6.17
6.52
6.34
6.57
NGLs (Mbbls/d)
170
162
182
196
177
182
170
174
215
185
12
Other
(UNAUDITED)
2024
2025
(Dollars in millions)
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
Service revenues
$
4
$
4
$
4
$
3
$
15
$
4
$
4
$
4
$
4
$
16
Net realized product sales
113
109
96
137
455
153
146
151
166
616
Net unrealized gain (loss) from derivative instruments
3
(25)
3
(7)
(26)
(29)
40
5
(6)
10
Operating and administrative costs
(51)
(50)
(51)
(77)
(229)
(54)
(76)
(71)
(82)
(283)
Other segment income (expenses) - net
7
9
4
—
20
1
4
4
8
17
Proportional Modified EBITDA of equity-method investments
—
—
2
—
2
—
—
—
—
—
Modified EBITDA
76
47
58
56
237
75
118
93
90
376
Adjustments
(2)
24
(3)
14
33
29
(40)
(3)
7
(7)
Adjusted EBITDA
$
74
$
71
$
55
$
70
$
270
$
104
$
78
$
90
$
97
$
369
Statistics
Net Product Sales Volumes
Natural Gas (Bcf/d)
0.28
0.24
0.29
0.29
0.27
0.27
0.29
0.30
0.31
0.29
NGLs (Mbbls/d)
8
8
9
10
9
10
12
11
13
11
Crude Oil (Mbbls/d)
5
5
4
5
5
7
8
7
7
7
13
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
4th Qtr
Year
Capital expenditures:
Transmission, Power & Gulf
$
310
$
397
$
459
$
428
$
1,594
$
369
$
590
$
660
$
1,639
$
3,258
Northeast G&P
71
46
54
53
224
62
39
57
53
211
West
120
90
98
180
488
549
274
172
119
1,114
Gas & NGL Marketing Services
—
—
1
—
1
—
1
—
—
1
Other
43
46
70
107
266
32
68
65
144
309
Total (1)
$
544
$
579
$
682
$
768
$
2,573
$
1,012
$
972
$
954
$
1,955
$
4,893
Purchases of and contributions to equity-method investments:
Transmission, Power & Gulf
$
27
$
10
$
—
$
—
$
37
$
—
$
—
$
—
$
313
$
313
Northeast G&P
25
19
19
12
75
10
10
12
6
38
West
—
1
—
1
2
—
—
1
—
1
Gas & NGL Marketing Services
—
—
—
—
—
153
—
—
—
153
Other
—
—
—
—
—
—
6
—
—
6
Total
$
52
$
30
$
19
$
13
$
114
$
163
$
16
$
13
$
319
$
511
Summary:
Transmission, Power & Gulf
$
337
$
407
$
459
$
428
$
1,631
$
369
$
590
$
660
$
1,952
$
3,571
Northeast G&P
96
65
73
65
299
72
49
69
59
249
West
120
91
98
181
490
549
274
173
119
1,115
Gas & NGL Marketing Services
—
—
1
—
1
153
1
—
—
154
Other
43
46
70
107
266
32
74
65
144
315
Total
$
596
$
609
$
701
$
781
$
2,687
$
1,175
$
988
$
967
$
2,274
$
5,404
Capital investments:
Increases to property, plant, and equipment
$
509
$
632
$
699
$
741
$
2,581
$
978
$
1,063
$
1,038
$
2,296
$
5,375
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
319
511
Purchases of other long-term investments
2
1
2
6
11
1
3
2
1
7
Total
$
2,414
$
656
$
871
$
1,009
$
4,950
$
1,143
$
1,082
$
1,053
$
2,616
$
5,894
(1) Increases to property, plant, and equipment
$
509
$
632
$
699
$
741
$
2,581
$
978
$
1,063
$
1,038
$
2,296
$
5,375
Changes in related accounts payable and accrued liabilities
35
(53)
(17)
27
(8)
34
(91)
(84)
(341)
(482)
Capital expenditures
$
544
$
579
$
682
$
768
$
2,573
$
1,012
$
972
$
954
$
1,955
$
4,893
Contributions from noncontrolling interests
$
26
$
10
$
—
$
—
$
36
$
5
$
14
$
3
$
14
$
36
Contributions in aid of construction
$
10
$
13
$
—
$
4
$
27
$
10
$
16
$
11
$
14
$
51
Proceeds from dispositions of equity-method investments
$
—
$
—
$
161
$
—
$
161
$
—
$
—
$
—
$
—
$
—
14
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.
15
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
4th Qtr
Year
Income (loss) from continuing operations attributable to The Williams Companies, Inc. available to common stockholders
$
631
$
401
$
705
$
485
$
2,222
$
690
$
546
$
646
$
733
$
2,615
Income (loss) from continuing operations - diluted earnings (loss) per common share (1)
$
.52
$
.33
$
.58
$
.40
$
1.82
$
.56
$
.45
$
.53
$
.60
$
2.14
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
—
—
—
—
—
Impairment or write-off of certain assets
—
—
—
—
—
—
—
25
187
212
Impact of change in payroll policy*
—
—
7
—
7
—
—
—
—
—
Total West adjustments
1
1
7
1
10
—
—
25
187
212
Gas & NGL Marketing Services
Impact of volatility on NGL linefill transactions*
(6)
5
2
(4)
(3)
—
11
3
8
22
Net unrealized (gain) loss from derivative instruments
94
107
(10)
150
341
3
4
(46)
(101)
(140)
Impact of change in payroll policy*
—
—
1
—
1
—
—
—
—
—
Total Gas & NGL Marketing Services adjustments
88
112
(7)
146
339
3
15
(43)
(93)
(118)
Other
Acquisition and transition-related costs*
—
—
—
1
1
—
—
2
1
3
Net unrealized (gain) loss from derivative instruments
(2)
24
(3)
7
26
29
(40)
(5)
6
(10)
Settlement charge related to former operations*
—
—
—
6
6
—
—
—
—
—
Total Other adjustments
(2)
24
(3)
14
33
29
(40)
(3)
7
(7)
Adjustments included in Modified EBITDA
97
139
24
164
424
36
(13)
(47)
101
77
Adjustments below Modified EBITDA
Transco rate case timing
—
—
—
—
—
11
35
(46)
—
—
Our share of fair value change from Cogentrix investment
—
—
—
—
—
—
—
—
(153)
(153)
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
4
18
19
19
(257)
16
(203)
16
39
(41)
(149)
(135)
Total adjustments
116
158
(233)
180
221
52
26
(88)
(48)
(58)
Less tax effect for above items
(28)
(38)
56
(42)
(52)
(12)
(6)
20
12
14
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
$
672
$
2,571
Adjusted income from continuing operations - diluted earnings per common share (1)
$
.59
$
.43
$
.43
$
.47
$
1.92
$
.60
$
.46
$
.49
$
.55
$
2.10
Weighted-average shares - diluted (millions)
1,222
1,222
1,223
1,224
1,223
1,225
1,224
1,225
1,226
1,225
(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. The third quarter of 2025 includes an adjustment associated with an increase in our estimated deferred state income tax rate. The fourth quarter of 2025 includes an adjustment associated with a decrease 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).
16
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
4th Qtr
Year
Net income (loss)
$
662
$
426
$
741
$
517
$
2,346
$
729
$
583
$
683
$
773
$
2,768
Provision (benefit) for income taxes
193
129
227
91
640
193
174
246
244
857
Interest expense
349
339
338
338
1,364
349
350
372
371
1,442
Equity (earnings) losses
(137)
(147)
(147)
(129)
(560)
(155)
(142)
(152)
(311)
(760)
Other investing (income) loss - net
(24)
(18)
(290)
(11)
(343)
(8)
(4)
(19)
(11)
(42)
Proportional Modified EBITDA of equity-method investments
228
238
227
216
909
236
231
250
248
965
Depreciation, depletion, and amortization expenses
548
540
566
565
2,219
585
605
564
593
2,347
Accretion expense associated with asset retirement obligations for nonregulated operations
18
21
17
25
81
24
24
23
25
96
Modified EBITDA
$
1,837
$
1,528
$
1,679
$
1,612
$
6,656
$
1,953
$
1,821
$
1,967
$
1,932
$
7,673
Transmission, Power & Gulf
$
829
$
808
$
811
$
825
$
3,273
$
858
$
891
$
973
$
998
$
3,720
Northeast G&P
504
481
476
497
1,958
514
501
505
508
2,028
West
327
318
323
344
1,312
354
341
342
201
1,238
Gas & NGL Marketing Services
101
(126)
11
(110)
(124)
152
(30)
54
135
311
Other
76
47
58
56
237
75
118
93
90
376
Total Modified EBITDA
$
1,837
$
1,528
$
1,679
$
1,612
$
6,656
$
1,953
$
1,821
$
1,967
$
1,932
$
7,673
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
187
212
Gas & NGL Marketing Services
88
112
(7)
146
339
3
15
(43)
(93)
(118)
Other
(2)
24
(3)
14
33
29
(40)
(3)
7
(7)
Total Adjustments
$
97
$
139
$
24
$
164
$
424
$
36
$
(13)
$
(47)
$
101
$
77
Adjusted EBITDA:
Transmission, Power & Gulf
$
839
$
812
$
830
$
826
$
3,307
$
862
$
903
$
947
$
998
$
3,710
Northeast G&P
504
479
484
499
1,966
514
501
505
508
2,028
West
328
319
330
345
1,322
354
341
367
388
1,450
Gas & NGL Marketing Services
189
(14)
4
36
215
155
(15)
11
42
193
Other
74
71
55
70
270
104
78
90
97
369
Total Adjusted EBITDA
$
1,934
$
1,667
$
1,703
$
1,776
$
7,080
$
1,989
$
1,808
$
1,920
$
2,033
$
7,750
(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.
17
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
4th Qtr
Year
Net cash provided (used) by operating activities
$
1,234
$
1,279
$
1,243
$
1,218
$
4,974
$
1,433
$
1,450
$
1,439
$
1,576
$
5,898
Exclude: Cash (provided) used by changes in:
Accounts receivable
(314)
44
(97)
536
169
(82)
(219)
(83)
603
219
Inventories, including write-downs
(38)
35
1
1
(1)
(29)
86
4
(24)
37
Other current assets and deferred charges
(9)
(3)
28
(25)
(9)
40
(4)
7
28
71
Accounts payable
309
(90)
98
(456)
(139)
29
236
94
(474)
(115)
Other current liabilities
218
(142)
32
(143)
(35)
70
(220)
55
(75)
(170)
Changes in current and noncurrent commodity derivative assets and liabilities
68
73
(67)
212
286
(4)
(15)
(58)
(22)
(99)
Other, including changes in noncurrent assets and liabilities
61
90
49
45
245
29
48
76
60
213
Preferred dividends paid
(1)
—
(1)
(1)
(3)
(1)
—
(1)
(1)
(3)
Dividends and distributions paid to noncontrolling interests
(64)
(66)
(48)
(64)
(242)
(69)
(62)
(66)
(62)
(259)
Contributions from noncontrolling interests
26
10
—
—
36
5
14
3
14
36
Additional Adjustments *
17
20
48
12
97
24
3
(21)
24
30
Available funds from operations
$
1,507
$
1,250
$
1,286
$
1,335
$
5,378
$
1,445
$
1,317
$
1,449
$
1,647
$
5,858
Common dividends paid
$
579
$
579
$
579
$
579
$
2,316
$
610
$
611
$
611
$
610
$
2,442
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
2.70
2.40
*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. The fourth quarter of 2025 also includes $15 million related to an expected distribution from an equity‑method investee not received until early January 2026, and this amount will be excluded from the first quarter of 2026.
18
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)
2026 Guidance
(Dollars in millions, except per-share amounts and coverage ratio)
Low
Mid
High
Net income (loss) from continuing operations
$
3,010
$
3,125
$
3,240
Provision (benefit) for income taxes
905
940
975
Interest expense
1,485
Equity (earnings) losses
(600)
Proportional Modified EBITDA of equity-method investments
970
Depreciation, depletion, and amortization expenses and accretion for asset retirement obligations associated with nonregulated operations
2,470
Other
(5)
Modified EBITDA
$
8,235
$
8,385
$
8,535
EBITDA Adjustments
(185)
Adjusted EBITDA
$
8,050
$
8,200
$
8,350
Net income (loss) from continuing operations
$
3,010
$
3,125
$
3,240
Less: Net income (loss) attributable to noncontrolling interests and preferred dividends
180
Net income (loss) from continuing operations attributable to The Williams Companies, Inc. available to common stockholders
$
2,830
$
2,945
$
3,060
Adjustments:
Adjustments included in Modified EBITDA(1)
(185)
Adjustments below Modified EBITDA (1)
11
Allocation of adjustments to noncontrolling interests
—
Total adjustments
(174)
Less tax effect for above items
44
Adjusted income from continuing operations available to common stockholders
$
2,700
$
2,815
$
2,930
Adjusted income from continuing operations - diluted earnings per common share
$
2.20
$
2.29
$
2.38
Weighted-average shares - diluted (millions)
1,229
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)
$
6,315
$
6,430
$
6,545
Preferred dividends paid
(3)
Dividends and distributions paid to noncontrolling interests
(260)
Contributions from noncontrolling interests
48
Additional adjustments(1)
(15)
Available funds from operations (AFFO)
$
6,085
$
6,200
$
6,315
AFFO per common share
$
4.95
$
5.05
$
5.14
Common dividends paid
$
2,575
Coverage Ratio (AFFO/Common dividends paid)
2.36x
2.41x
2.45x
(1) Includes items of income or loss that we characterize as unrepresentative of our ongoing operations.
19
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:
•Levels of dividends to Williams' stockholders;
•Future credit ratings of Williams and its affiliates;
•Amounts and nature of future capital expenditures;
•Expansion and growth of business and operations;
•Expected in-service dates for capital projects;
•Financial condition and liquidity;
•Business strategy;
•Cash flow from operations or results of operations;
•Rate case filings;
•Seasonality of certain business components;
•Natural gas, natural gas liquids, and crude oil prices, supply, and demand;
•Demand for services.
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:
•Availability of supplies, market demand, and volatility of prices;
•Development and rate of adoption of alternative energy sources;
•The impact of existing and future laws and regulations, the regulatory environment, environmental matters, and litigation, as well as our ability and the ability of other energy companies with whom we conduct or seek to conduct business, to obtain necessary permits and approvals, and our ability to achieve favorable rate proceeding outcomes;
20
•Exposure to the credit risk of customers and counterparties;
•Our ability to acquire new businesses and assets and successfully integrate those operations and assets into existing businesses as well as successfully expand our facilities, and consummate asset sales on acceptable terms;
•The ability to successfully identify, evaluate, and timely execute our capital projects and investment opportunities;
•The strength and financial resources of our competitors and the effects of competition;
•The amount of cash distributions from and capital requirements of our investments and joint ventures in which we participate;
•The ability to effectively execute our financing plan;
•Increasing scrutiny and changing expectations from stakeholders with respect to environmental, social, and governance practices;
•The physical and financial risks associated with climate change;
•The impacts of operational and developmental hazards and unforeseen interruptions;
•The risks resulting from outbreaks or other public health crises;
•Risks associated with weather and natural phenomena, including climate conditions and physical damage to our facilities;
•Acts of terrorism, cybersecurity incidents, and related disruptions;
•Costs and funding obligations for defined benefit pension plans and other postretirement benefit plans;
•Changes in maintenance and construction costs, as well as our ability to obtain sufficient construction-related inputs, including skilled labor;
•Inflation, interest rates, tariffs on foreign-made materials and goods (including steel and steel pipes) necessary to our business, and general economic conditions (including future disruptions and volatility in the global credit markets and the impact of these events on customers and suppliers);
•Risks related to financing, including restrictions stemming from debt agreements, future changes in credit ratings as determined by nationally recognized credit rating agencies, and the availability and cost of capital;
•The ability of the members of the Organization of Petroleum Exporting Countries and other oil exporting nations to agree to and maintain oil price and production controls and the impact on domestic production;
•Changes in the current geopolitical situation, including the Russian invasion of Ukraine and conflicts in the Middle East;
•Changes in U.S. governmental administration and policies;
•Whether we are able to pay current and expected levels of dividends;
•Additional risks described in our filings with the Securities and Exchange Commission (SEC).
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
21
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, and (c) when filed with the SEC, Part I, Item 1A Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2025.
###
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Mentions · how they’re counted
| Category | Underlined | Word counter | Model’s count |
|---|---|---|---|
| AI AI, artificial intelligence, generative AI, machine learning, large language model, LLM | 0 | — | — |
| Layoffs layoffs, RIF, headcount reduction, workforce optimization, restructuring | 0 | — | — |
| Recession recession, downturn, contraction, slowdown | 0 | — | — |
| Tariffs tariff, trade war, trade barriers, trade restrictions, trade policy | 1 | — | — |
| Buybacks share repurchase, buyback program | 0 | — | — |
Underlines use the same word lists the scores use. AI, recession and tariffs follow Palanor’s word counter, so those counts match it exactly on the same text. Layoffs and buybacks use the terms the model was given. The model’s count is an estimate by meaning, not by string, so it can differ from the underlines.
Source: SEC EDGAR · public domain · Highlights by Palanor