Williams Announces Record First-Quarter 2026 Results

5/4/26 4:15:00 PM ET

$WMB

Natural Gas Distribution

Utilities

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Williams (NYSE:WMB) today announced its unaudited financial results for the three months ended March 31, 2026.

Natural gas-focused strategy continues to drive key financial results

GAAP net income: $864 million, or $0.70 per diluted share (EPS), up 25% vs. 1Q 2025
Adjusted net income: $895 million, or $0.73 per diluted share (Adj. EPS), up 23% and 22%, respectively, vs. 1Q 2025
Adjusted EBITDA: $2.254 billion, up $265 million or 13% vs. 1Q 2025
Cash flow from operations (CFFO): $1.603 billion, up $170 million or 12% vs. 1Q 2025
Available funds from operations (AFFO): $1.770 billion, up $325 million or 22% vs. 1Q 2025
Dividend coverage ratio: 2.76x (AFFO basis)
On track to deliver Adjusted EBITDA in upper half of 2026 guidance range

Disciplined execution drives business growth, advances projects and optimizes portfolio

Signed customer agreement on Neo, a $2.3 billion behind-the-meter power innovation project with 682 megawatts of installed capacity
Signed natural gas infrastructure agreement for Atlas, providing up to 164 MMcf/d of capacity to Northeast data center
Signed customer agreements on Silver Spur transmission project, a 275 MMcf/d expansion on Northwest Pipeline
Announced ~700 MMcf/d of gathering expansions in Marcellus and Haynesville
Upsized Transco's Power Express project, increasing capacity to 750 MMcf/d
Started construction on Transco's Northeast Supply Enhancement and Southeast Supply Enhancement projects
Placed in service Northwest Pipeline's Naughton Coal Conversion and received notice to proceed on Northwest Pipeline's Wild Trail project
Commissioned Aristotle pipeline for Plato South power innovation facility
Closed on sale of South Mansfield upstream JV and Anadarko gathering

CEO Perspective

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

"Williams delivered a strong first quarter, supported by the ongoing success of our natural gas-focused strategy and the performance of our premier assets. First-quarter GAAP net income increased 25% year-over-year to $864 million, and Adjusted EBITDA grew 13% year-over-year to $2.254 billion – driven by Transco's expansion projects, new Gulf volumes, higher storage revenues and higher gathering volumes in the West."

"Our teams continue to execute at an excellent pace on transmission expansions while adding to our portfolio of power innovation projects. Among several first quarter accomplishments, we placed Northwest Pipeline's Naughton Coal Conversion into service and broke ground on Transco's NESE and SESE projects. In addition, we commissioned the Aristotle pipeline to support data centers in Ohio, including the Socrates power innovation facility, and signed a customer agreement for Project Neo, a new behind-the-meter power innovation project."

Zamarin added, "Natural gas demand is rising, our contracted project portfolio is growing and we're staying focused on the sharp execution of projects which will drive higher earnings, stable cash flows and strong, durable returns for shareholders. I want to thank our employees and the customers we partner with to safely and reliably serve our nation's energy needs. Together, we will continue to deliver energy infrastructure solutions that seek to lower energy costs."

Williams Summary Financial Information	1Q
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.		2026		2025

GAAP Measures
Net Income	$	864	$	690
Net Income Per Share	$	0.70	$	0.56
Cash Flow From Operations	$	1,603	$	1,433

Non-GAAP Measures (1)
Adjusted EBITDA	$	2,254	$	1,989
Adjusted Net Income	$	895	$	730
Adjusted Earnings Per Share	$	0.73	$	0.60
Available Funds from Operations	$	1,770	$	1,445
Dividend Coverage Ratio	2.76x		2.37x

Other
Debt-to-Adjusted EBITDA at Quarter End (2)	3.61x		3.83x
Capital Investments (Excluding Acquisitions) (3) (4)	$	1,642	$	670

(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, for 2026, $439 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 include increases to property, plant, and equipment (growth & maintenance), purchases of and contributions to equity-method investments and purchases of other long-term investments.
(4) First quarter 2026 capital investments reflects a $18 million change in certain reimbursable long-lead Power Innovation equipment. First quarter 2025 capital excludes $319 million for the Rimrock acquisition, which closed January 2025 and $153 million for the investment in Cogentrix, which closed March 2025.

GAAP Measures

First-quarter 2026 net income increased by $174 million compared to the prior year, benefiting from:

$203 million of higher service revenues driven by Transco's higher net rates and expansion projects, new Gulf volumes, higher storage revenues, and higher gathering volumes in the West including acquisitions,
Higher gas marketing margins, and
A gain of $182 million from the sale of the South Mansfield upstream interests.

These favorable changes were partially offset by:

An unfavorable change of $193 million in net unrealized gains/losses on commodity derivatives,
An increase in operating expenses,
Higher net interest expense associated with changes in the debt portfolio, and
A higher provision for income taxes driven by increased pre-tax income.

First-quarter 2026 cash flow from operations increased $170 million compared to the prior year primarily due to higher operating results exclusive of non-cash items and increased distributions from equity-method investees impacted by timing of receipt, partially offset by unfavorable net changes in derivative collateral requirements.

Non-GAAP Measures

First-quarter 2026 Adjusted EBITDA increased by $265 million over the prior year driven by the previously described increases in service revenues and gas marketing margins, partially offset by higher operating expenses.

First-quarter 2026 Adjusted Net Income improved by $165 million 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 and the gain from the sale of the South Mansfield upstream interests.

First-quarter 2026 Available Funds From Operations (AFFO) increased by $325 million compared to the prior year primarily due to higher adjusted operating results exclusive of noncash items and a favorable change in the current component of the income tax provision.

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 first-quarter 2026 Form 10-Q.

	First Quarter
Amounts in millions	Modified EBITDA							Adjusted EBITDA
Amounts in millions		1Q 2026		1Q 2025	Change				1Q 2026		1Q 2025	Change
Transmission, Power & Gulf	$	1,010	$	858	$	152		$	1,010	$	862	$	148
Northeast G&P		524		514		10			524		514		10
West		407		354		53			410		354		56
Gas & NGL Marketing Services		40		152		(112	)		227		155		72
Other		232		75		157			83		104		(21	)
Total	$	2,213	$	1,953	$	260		$	2,254	$	1,989	$	265

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

First-quarter 2026 Modified and Adjusted EBITDA improved compared to the prior year driven by contributions from Transco's higher net rates and expansion projects, new Gulf volumes associated with Shenandoah, Whale and Ballymore, and higher storage revenues driven by winter storms and higher rates.

Northeast G&P

First-quarter 2026 Modified and Adjusted EBITDA increased slightly compared to the prior year driven primarily by higher volumes at Ohio Valley Midstream and higher gathering volumes and rates at Bradford within Appalachia Midstream, partially offset by lower volumes from Susquehanna Supply Hub.

West

First-quarter 2026 Modified EBITDA and Adjusted EBITDA improved compared to the prior year driven by Louisiana Energy Gateway, placed into service in third-quarter 2025, as well as higher gathering volumes including contributions from the 2025 Rimrock and Saber acquisitions, partially offset by lower minimum volume commitment revenues.

Gas & NGL Marketing Services

First-quarter 2026 Modified EBITDA decreased from the prior year primarily reflecting $189 million of net unfavorable changes in unrealized gains/losses on commodity derivatives, which are excluded from Adjusted EBITDA. Both measures benefited from higher gas marketing margins driven by winter storms.

Other

First-quarter 2026 Modified EBITDA increased from the prior year primarily reflecting the gain from the January 2026 sale of the South Mansfield upstream interests, which is excluded from Adjusted EBITDA. Both measures were impacted by an unfavorable change in net realized results from upstream operations, including the impact of the divested South Mansfield interests.

2026 Financial Guidance

The company continues to expect 2026 Adjusted EBITDA between $8.05 billion and $8.35 billion. The company now expects 2026 growth capex between $7 billion and $7.6 billion and maintenance capex between $850 million and $950 million. Williams anticipates a leverage ratio midpoint for 2026 of ~4.1x 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.

Williams First-Quarter 2026 Materials to be Posted Shortly; Q&A Webcast Scheduled for Tomorrow

Williams' first-quarter 2026 earnings presentation will be posted at www.williams.com. The company's first-quarter 2026 earnings conference call and webcast with analysts and investors is scheduled for Tuesday, May 5, 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/BI217f7f4ff1cb4d4283f684a98030695c

A webcast link to the conference call will be provided on Williams' Investor Relations website. A replay of the webcast will 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 March 31,
			2026			2025
	(Millions, except per-share amounts)
Revenues:
Service revenues		$	2,206		$	2,003
Service revenues – commodity consideration			46			49
Product sales			1,137			1,058
Net gain (loss) from commodity derivatives			(359	)		(62	)
Total revenues			3,030			3,048
Costs and expenses:
Product costs			543			615
Net processing commodity expenses			15			28
Operating and maintenance expenses			565			542
Depreciation, depletion, and amortization expenses			584			585
General and administrative expenses			193			194
Gain on sale of certain assets			(182	)		—
Other operating (income) expense – net			(9	)		(10	)
Total costs and expenses			1,709			1,954
Operating income (loss)			1,321			1,094
Equity earnings (losses)			161			155
Other investing income (loss) – net			24			8
Interest expense			(376	)		(349	)
Other income (expense) – net			26			14
Income (loss) before income taxes			1,156			922
Less: Provision (benefit) for income taxes			244			193
Net income (loss)			912			729
Less: Net income (loss) attributable to noncontrolling interests			47			38
Net income (loss) attributable to The Williams Companies, Inc.			865			691
Less: Preferred stock dividends			1			1
Net income (loss) available to common stockholders		$	864		$	690
Basic earnings (loss) per common share:
Net income (loss) available to common stockholders		$	.71		$	.57
Weighted-average shares (millions)			1,223			1,221
Diluted earnings (loss) per common share:
Net income (loss) available to common stockholders		$	.70		$	.56
Weighted-average shares (millions)			1,226			1,225

The Williams Companies, Inc. Consolidated Balance Sheet (Unaudited)
	March 31,			December 31,
		2026			2025
	(Millions, except per-share amounts)
ASSETS
Current assets:
Cash and cash equivalents	$	950		$	63
Trade accounts and other receivables (net of allowance of ($1) at March 31, 2026 and December 31, 2025)		1,676			2,084
Inventories		262			314
Assets held for sale		—			318
Derivative assets		172			209
Other current assets and deferred charges		260			256
Total current assets		3,320			3,244
Investments		4,520			4,559
Property, plant, and equipment		63,613			62,010
Accumulated depreciation, depletion, and amortization		(20,479	)		(20,014	)
Property, plant, and equipment – net		43,134			41,996
Intangible assets – net		6,670			6,763
Regulatory assets, deferred charges, and other		1,925			2,011
Total assets	$	59,569		$	58,573

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	2,271		$	2,224
Liabilities held for sale		—			63
Derivative liabilities		174			135
Other current liabilities		1,313			1,639
Commercial paper		—			700
Long-term debt due within one year		248			1,345
Total current liabilities		4,006			6,106
Long-term debt		30,054			27,316
Deferred income tax liabilities		5,405			5,170
Regulatory liabilities, deferred income, and other		4,942			4,986
Contingent liabilities and commitments

Equity:
Stockholders' equity:
Preferred stock ($1 par value; 30 million shares authorized at March 31, 2026 and December 31, 2025; 35 thousand shares issued at March 31, 2026 and December 31, 2025)		35			35
Common stock ($1 par value; 1,470 million shares authorized at March 31, 2026 and December 31, 2025; 1,262 million shares issued at March 31, 2026 and 1,261 million shares issued at December 31, 2025)		1,262			1,261
Capital in excess of par value		24,767			24,801
Retained deficit		(12,017	)		(12,237	)
Accumulated other comprehensive income (loss)		125			127
Treasury stock, at cost (39 million shares at March 31, 2026 and December 31, 2025 of common stock)		(1,180	)		(1,180	)
Total stockholders' equity		12,992			12,807
Noncontrolling interests in consolidated subsidiaries		2,170			2,188
Total equity		15,162			14,995
Total liabilities and equity	$	59,569		$	58,573

The Williams Companies, Inc. Consolidated Statement of Cash Flows (Unaudited)
	Three Months Ended March 31,
		2026			2025
	(Millions)
OPERATING ACTIVITIES:
Net income (loss)	$	912		$	729
Adjustments to reconcile to net cash provided (used) by operating activities:
Depreciation, depletion, and amortization		584			585
Provision (benefit) for deferred income taxes		235			107
Equity (earnings) losses		(161	)		(155	)
Distributions from equity-method investees		223			158
Gain on sale of certain assets		(182	)		—
Net unrealized (gain) loss from commodity derivative instruments		225			32
Inventory write-downs		2			1
Amortization of stock-based awards		22			30
Cash provided (used) by changes in current assets and liabilities:
Accounts receivable		425			82
Inventories		50			28
Other current assets and deferred charges		(9	)		(40	)
Accounts payable		(194	)		(29	)
Other current liabilities		(317	)		(70	)
Changes in current and noncurrent commodity derivative assets and liabilities		(138	)		4
Other, including changes in noncurrent assets and liabilities		(74	)		(29	)
Net cash provided (used) by operating activities		1,603			1,433
FINANCING ACTIVITIES:
Proceeds from (payments of) commercial paper – net		(699	)		(132	)
Proceeds from long-term debt		2,768			1,497
Payments of long-term debt		(1,109	)		(853	)
Payments for debt issuance costs		(24	)		(12	)
Proceeds from issuance of common stock		8			5
Common dividends paid		(642	)		(610	)
Dividends and distributions paid to noncontrolling interests		(67	)		(69	)
Contributions from noncontrolling interests		—			5
Other – net		(67	)		(54	)
Net cash provided (used) by financing activities		168			(223	)
INVESTING ACTIVITIES:
Property, plant, and equipment:
Capital expenditures (1)		(1,359	)		(1,012	)
Dispositions – net		369			—
Proceeds from sale of business		48			—
Purchases of and contributions to equity-method investments		(29	)		(163	)
Other – net		87			5
Net cash provided (used) by investing activities		(884	)		(1,170	)
Increase (decrease) in cash and cash equivalents		887			40
Cash and cash equivalents at beginning of year		63			60
Cash and cash equivalents at end of period	$	950		$	100
_________
(1) Increases to property, plant, and equipment	$	(1,593	)	$	(978	)
Changes in related accounts payable and accrued liabilities		234			(34	)
Capital expenditures	$	(1,359	)	$	(1,012	)


Transmission, Power & Gulf
(UNAUDITED)
	2025															2026
(Dollars in millions)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year			1st Qtr
Regulated interstate natural gas transportation, storage, and other revenues ⁽¹⁾	$	873		$	892		$	930		$	953		$	3,648		$	942
Gathering, processing, storage and transportation revenues ⁽¹⁾		179			218			237			258			892			240
Other fee revenues		13			11			6			9			39			33
Commodity margins		14			17			16			21			68			18
Operating and administrative costs ⁽¹⁾		(270	)		(286	)		(290	)		(296	)		(1,142	)		(282	)
Other segment income (expenses) - net ⁽¹⁾		13			2			37			16			68			22
Proportional Modified EBITDA of equity-method investments		36			37			37			37			147			37
Modified EBITDA		858			891			973			998			3,720			1,010
Adjustments		4			12			(26	)		—			(10	)		—
Adjusted EBITDA	$	862		$	903		$	947		$	998		$	3,710		$	1,010

Statistics for Operated Assets
Natural Gas Transmission ⁽²⁾
Transcontinental Gas Pipe Line
Avg. daily transportation volumes (MMdth)		15.9			14.0			14.9			15.0			15.0			16.0
Avg. daily firm reserved capacity (MMdth)		20.8			20.6			20.6			21.0			20.8			21.0
Northwest Pipeline LLC
Avg. daily transportation volumes (MMdth)		3.0			2.4			2.4			2.6			2.6			2.7
Avg. daily firm reserved capacity (MMdth)		3.7			3.7			3.7			3.7			3.7			3.7
MountainWest ⁽³⁾
Avg. daily transportation volumes (MMdth)		3.7			3.1			3.3			3.5			3.4			3.2
Avg. daily firm reserved capacity (MMdth)		8.4			8.0			8.0			8.3			8.2			8.3
Gulfstream - Non-consolidated ⁽⁴⁾
Avg. daily transportation volumes (MMdth)		1.0			1.3			1.4			1.1			1.2			1.0
Avg. daily firm reserved capacity (MMdth)		1.4			1.4			1.4			1.4			1.4			1.4
Gathering, Processing, and Crude Oil Transportation
Gathering volumes (Bcf/d)		0.58			0.68			0.75			0.86			0.72			0.76
Plant inlet natural gas volumes (Bcf/d)		0.78			0.89			0.97			1.05			0.93			0.96
NGL production (Mbbls/d)		61			76			87			101			81			91
NGL equity sales (Mbbls/d)		10			15			12			16			13			12
Crude oil transportation volumes (Mbbls/d)		124			196			238			274			208			242

(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.
(4) Includes 100% of the volumes associated with the equity-method investment Gulfstream Natural Gas System, L.L.C.


Northeast G&P
(UNAUDITED)
	2025															2026
(Dollars in millions)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year			1st Qtr
Gathering, processing, transportation, and fractionation revenues ⁽¹⁾	$	420		$	419		$	421		$	418		$	1,678		$	418
Other fee revenues		35			37			36			37			145			36
Commodity margins		6			6			6			6			24			—
Operating and administrative costs ⁽¹⁾		(106	)		(113	)		(114	)		(116	)		(449	)		(103	)
Other segment income (expenses) - net		—			(2	)		(5	)		(3	)		(10	)		5
Proportional Modified EBITDA of equity-method investments		159			154			161			166			640			168
Modified EBITDA		514			501			505			508			2,028			524
Adjustments		—			—			—			—			—			—
Adjusted EBITDA	$	514		$	501		$	505		$	508		$	2,028		$	524

Statistics for Operated Assets
Gathering and Processing
Consolidated ⁽²⁾
Gathering volumes (Bcf/d)		4.39			4.15			4.10			4.02			4.16			4.01
Plant inlet natural gas volumes (Bcf/d)		1.86			1.89			1.90			1.90			1.89			1.95
NGL production (Mbbls/d)		137			138			150			147			143			152
NGL equity sales (Mbbls/d)		1			1			2			1			1			—
Non-consolidated ⁽³⁾
Gathering volumes (Bcf/d)		6.47			6.72			6.72			7.01			6.73			6.79
Plant inlet natural gas volumes (Bcf/d)		0.94			1.13			1.16			1.16			1.10			1.11
NGL production (Mbbls/d)		68			71			81			80			75			76
NGL equity sales (Mbbls/d)		5			4			2			1			3			2

(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.
(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 Appalachia Midstream Investments.


West
(UNAUDITED)
	2025															2026
(Dollars in millions)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year			1st Qtr
Net gathering, processing, transportation, storage, and fractionation revenues ⁽¹⁾	$	415		$	426		$	449		$	474		$	1,764		$	478
Other fee revenues		8			5			6			8			27			7
Commodity margins		34			29			29			26			118			31
Operating and administrative costs ⁽¹⁾		(152	)		(150	)		(150	)		(153	)		(605	)		(149	)
Other segment income (expenses) - net		11			(1	)		(3	)		(3	)		4			7
Impairment or write-off of certain assets		—			—			(25	)		(187	)		(212	)		(3	)
Proportional Modified EBITDA of equity-method investments		38			32			36			36			142			36
Modified EBITDA		354			341			342			201			1,238			407
Adjustments		—			—			25			187			212			3
Adjusted EBITDA	$	354		$	341		$	367		$	388		$	1,450		$	410

Statistics for Operated Assets
Gathering and Processing
Gathering volumes (Bcf/d)		5.69			5.94			6.14			6.56			6.09			6.37
Plant inlet natural gas volumes (Bcf/d)		1.52			1.69			1.72			1.78			1.68			1.76
NGL production (Mbbls/d)		83			102			103			105			99			103
NGL equity sales (Mbbls/d)		6			8			7			7			7			7
NGL and Crude Oil Transportation volumes (Mbbls/d) ⁽²⁾		310			292			294			281			294			269

(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.


Gas & NGL Marketing Services
(UNAUDITED)
	2025															2026
(Dollars in millions)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year			1st Qtr
Commodity margins	$	191		$	(16	)	$	6		$	45		$	226		$	248
Net unrealized gain (loss) from derivative instruments		(3	)		(4	)		46			101			140			(192	)
Operating and administrative costs		(39	)		(19	)		(14	)		(21	)		(93	)		(34	)
Other segment income (expenses) - net		—			1			—			1			2			—
Proportional Modified EBITDA of equity-method investments		3			8			16			9			36			18
Modified EBITDA		152			(30	)		54			135			311			40
Adjustments		3			15			(43	)		(93	)		(118	)		187
Adjusted EBITDA	$	155		$	(15	)	$	11		$	42		$	193		$	227

Statistics
Product Sales Volumes
Natural Gas (Bcf/d)		7.27			6.17			6.52			6.34			6.57			6.73
NGLs (Mbbls/d)		182			170			174			215			185			205


Other
(UNAUDITED)
	2025															2026
(Dollars in millions)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year			1st Qtr
Service revenues	$	4		$	4		$	4		$	4		$	16		$	4
Net realized product sales		153			146			151			166			616			138
Net unrealized gain (loss) from derivative instruments		(29	)		40			5			(6	)		10			(33	)
Operating and administrative costs		(54	)		(76	)		(71	)		(82	)		(283	)		(63	)
Other segment income (expenses) - net		1			4			4			8			17			4
Gain on sale of certain assets		—			—			—			—			—			182
Modified EBITDA		75			118			93			90			376			232
Adjustments		29			(40	)		(3	)		7			(7	)		(149	)
Adjusted EBITDA	$	104		$	78		$	90		$	97		$	369		$	83

Statistics
Net Product Sales Volumes
Natural Gas (Bcf/d)		0.27			0.29			0.30			0.31			0.29			0.22
NGLs (Mbbls/d)		10			12			11			13			11			12
Crude Oil (Mbbls/d)		7			8			7			7			7			8


Capital Expenditures and Investments
(UNAUDITED)
	2025														2026
(Dollars in millions)	1st Qtr		2nd Qtr			3rd Qtr			4th Qtr			Year			1st Qtr

Capital expenditures:
Transmission, Power & Gulf	$	369	$	590		$	660		$	1,639		$	3,258		$	1,174
Northeast G&P		62		39			57			53			211			27
West		549		274			172			119			1,114			82
Gas & NGL Marketing Services		—		1			—			—			1			—
Other		32		68			65			144			309			76
Total ⁽¹⁾	$	1,012	$	972		$	954		$	1,955		$	4,893		$	1,359

Purchases of and contributions to equity-method investments:
Transmission, Power & Gulf	$	—	$	—		$	—		$	313		$	313		$	18
Northeast G&P		10		10			12			6			38			11
West		—		—			1			—			1			—
Gas & NGL Marketing Services		153		—			—			—			153			—
Other		—		6			—			—			6			—
Total	$	163	$	16		$	13		$	319		$	511		$	29

Summary:
Transmission, Power & Gulf	$	369	$	590		$	660		$	1,952		$	3,571		$	1,192
Northeast G&P		72		49			69			59			249			38
West		549		274			173			119			1,115			82
Gas & NGL Marketing Services		153		1			—			—			154			—
Other		32		74			65			144			315			76
Total	$	1,175	$	988		$	967		$	2,274		$	5,404		$	1,388

Capital investments:
Increases to property, plant, and equipment	$	978	$	1,063		$	1,038		$	2,296		$	5,375		$	1,593
Purchases of businesses, net of cash acquired		1		—			—			—			1			—
Purchases of and contributions to equity-method investments		163		16			13			319			511			29
Purchases of other long-term investments		1		3			2			1			7			2
Total	$	1,143	$	1,082		$	1,053		$	2,616		$	5,894		$	1,624

⁽¹⁾ Increases to property, plant, and equipment	$	978	$	1,063		$	1,038		$	2,296		$	5,375		$	1,593
Changes in related accounts payable and accrued liabilities		34		(91	)		(84	)		(341	)		(482	)		(234	)
Capital expenditures	$	1,012	$	972		$	954		$	1,955		$	4,893		$	1,359

Contributions from noncontrolling interests	$	5	$	14		$	3		$	14		$	36		$	—
Contributions in aid of construction	$	10	$	16		$	11		$	14		$	51		$	16
Proceeds from sale of certain assets	$	—	$	—		$	—		$	—		$	—		$	390
Proceeds from sale of business	$	—	$	—		$	—		$	—		$	—		$	48

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)
	2025															2026
(Dollars in millions, except per-share amounts)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year			1st Qtr

Income (loss) from continuing operations attributable to The Williams Companies, Inc. available to common stockholders	$	690		$	546		$	646		$	733		$	2,615		$	864

Income (loss) from continuing operations - diluted earnings (loss) per common share ⁽¹⁾	$	.56		$	.45		$	.53		$	.60		$	2.14		$	.70
Adjustments:
Transmission, Power & Gulf
Transco rate case timing*	$	4		$	11		$	(15	)	$	—		$	—		$	—
Acquisition and transition-related costs*		—			1			—			—			1			—
Net gain related to certain asset retirements*		—			—			(11	)		—			(11	)		—
Total Transmission, Power & Gulf adjustments		4			12			(26	)		—			(10	)		—
West
Impairment or write-off of certain assets		—			—			25			187			212			3
Total West adjustments		—			—			25			187			212			3
Gas & NGL Marketing Services
Impact of volatility on NGL linefill transactions*		—			11			3			8			22			(5	)
Net unrealized (gain) loss from derivative instruments		3			4			(46	)		(101	)		(140	)		192
Total Gas & NGL Marketing Services adjustments		3			15			(43	)		(93	)		(118	)		187
Other
Acquisition and transition-related costs*		—			—			2			1			3			—
Net unrealized (gain) loss from derivative instruments		29			(40	)		(5	)		6			(10	)		33
Gain on sale of certain upstream assets		—			—			—			—			—			(182	)
Total Other adjustments		29			(40	)		(3	)		7			(7	)		(149	)
Adjustments included in Modified EBITDA		36			(13	)		(47	)		101			77			41
Adjustments below Modified EBITDA
Transco rate case timing		11			35			(46	)		—			—			—
Our share of fair value change from Cogentrix investment		—			—			—			(153	)		(153	)		(2	)
Amortization of intangible assets from 2021 Sequent acquisition		5			4			5			4			18			3
		16			39			(41	)		(149	)		(135	)		1
Total adjustments		52			26			(88	)		(48	)		(58	)		42
Less tax effect for above items		(12	)		(6	)		20			12			14			(11	)
Adjustments for tax-related items ⁽²⁾		—			—			25			(25	)		—			—
Adjusted income from continuing operations available to common stockholders	$	730		$	566		$	603		$	672		$	2,571		$	895
Adjusted income from continuing operations - diluted earnings per common share ⁽¹⁾	$	.60		$	.46		$	.49		$	.55		$	2.10		$	.73
Weighted-average shares - diluted (millions)		1,225			1,224			1,225			1,226			1,225			1,226
(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 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).


Reconciliation of "Net Income (Loss)" to "Modified EBITDA" and Non-GAAP "Adjusted EBITDA"
(UNAUDITED)
	2025															2026
(Dollars in millions)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year			1st Qtr

Net income (loss)	$	729		$	583		$	683		$	773		$	2,768		$	912
Provision (benefit) for income taxes		193			174			246			244			857			244
Interest expense		349			350			372			371			1,442			376
Equity (earnings) losses		(155	)		(142	)		(152	)		(311	)		(760	)		(161	)
Other investing (income) loss - net		(8	)		(4	)		(19	)		(11	)		(42	)		(24	)
Proportional Modified EBITDA of equity-method investments		236			231			250			248			965			259
Depreciation, depletion, and amortization expenses		585			605			564			593			2,347			584
Accretion expense associated with asset retirement obligations for nonregulated operations		24			24			23			25			96			23
Modified EBITDA	$	1,953		$	1,821		$	1,967		$	1,932		$	7,673		$	2,213

Transmission, Power & Gulf	$	858		$	891		$	973		$	998		$	3,720		$	1,010
Northeast G&P		514			501			505			508			2,028			524
West		354			341			342			201			1,238			407
Gas & NGL Marketing Services		152			(30	)		54			135			311			40
Other		75			118			93			90			376			232
Total Modified EBITDA	$	1,953		$	1,821		$	1,967		$	1,932		$	7,673		$	2,213

Adjustments ⁽¹⁾:
Transmission, Power & Gulf	$	4		$	12		$	(26	)	$	—		$	(10	)	$	—
West		—			—			25			187			212			3
Gas & NGL Marketing Services		3			15			(43	)		(93	)		(118	)		187
Other		29			(40	)		(3	)		7			(7	)		(149	)
Total Adjustments	$	36		$	(13	)	$	(47	)	$	101		$	77		$	41

Adjusted EBITDA:
Transmission, Power & Gulf	$	862		$	903		$	947		$	998		$	3,710		$	1,010
Northeast G&P		514			501			505			508			2,028			524
West		354			341			367			388			1,450			410
Gas & NGL Marketing Services		155			(15	)		11			42			193			227
Other		104			78			90			97			369			83
Total Adjusted EBITDA	$	1,989		$	1,808		$	1,920		$	2,033		$	7,750		$	2,254

(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)
	2025															2026
(Dollars in millions, except coverage ratios)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year			1st Qtr

Net cash provided (used) by operating activities	$	1,433		$	1,450		$	1,439		$	1,576		$	5,898		$	1,603
Exclude: Cash (provided) used by changes in:
Accounts receivable		(82	)		(219	)		(83	)		603			219			(425	)
Inventories, including write-downs		(29	)		86			4			(24	)		37			(52	)
Other current assets and deferred charges		40			(4	)		7			28			71			9
Accounts payable		29			236			94			(474	)		(115	)		194
Other current liabilities		70			(220	)		55			(75	)		(170	)		317
Changes in current and noncurrent commodity derivative assets and liabilities		(4	)		(15	)		(58	)		(22	)		(99	)		138
Other, including changes in noncurrent assets and liabilities		29			48			76			60			213			74
Preferred dividends paid		(1	)		—			(1	)		(1	)		(3	)		(1	)
Dividends and distributions paid to noncontrolling interests		(69	)		(62	)		(66	)		(62	)		(259	)		(67	)
Contributions from noncontrolling interests		5			14			3			14			36			—
Additional Adjustments *		24			3			(21	)		24			30			(20	)
Available funds from operations	$	1,445		$	1,317		$	1,449		$	1,647		$	5,858		$	1,770

Common dividends paid	$	610		$	611		$	611		$	610		$	2,442		$	642

Coverage ratio:
Available funds from operations divided by Common dividends paid		2.37			2.16			2.37			2.70			2.40			2.76

*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 is excluded from the first quarter of 2026.


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.

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;

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;

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 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 IA. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the SEC on February 24, 2026, and (b) Part II, Item 1A. Risk Factors in subsequent Quarterly Reports on Form 10-Q.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260504880577/en/

MEDIA CONTACT:

media@williams.com

(800) 945-8723

INVESTOR CONTACTS:

Danilo Juvane

(918) 573-5075

Caroline Sardella

(918) 230-9992

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Date	Price Target	Rating	Analyst
5/7/2026	$81.00 → $87.00	Buy	TD Cowen
4/20/2026	$82.00	Neutral → Buy	Goldman
3/24/2026	$84.00	Buy	Truist
2/13/2026	$84.00	Sector Perform → Sector Outperform	Scotiabank
11/6/2025	$69.00 → $70.00	Buy	TD Cowen
10/9/2025	$72.00	Buy	Jefferies
9/19/2025	$66.00	Outperform	BMO Capital Markets
8/15/2025	$64.00	Neutral → Sector Outperform	CIBC

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