Williams Achieves Another Year of Record Results and Raises 2025 Financial Guidance

TULSA, Okla.–(BUSINESS WIRE)–Williams (NYSE: WMB) today announced its unaudited financial results for the three and 12 months ended Dec. 31, 2024.

Business strength drives year-over-year financial growth

• GAAP net income: $2.222 billion, or $1.82 per diluted share (EPS)
• Adjusted net income: $2.347 billion, or $1.92 per diluted share (Adj. EPS)
• Record Adjusted EBITDA: $7.08 billion – up $301 million or 4.4% vs. 2023
• Cash flow from operations (CFFO): $4.974 billion
• Available funds from operations (AFFO): $5.378 billion – up $165 million or 3.2% vs. 2023
• Dividend coverage ratio: 2.32x (AFFO basis)
• Record contracted transmission capacity: 33.4 Bcf/d – up 3.4% from 2023 – with Transco additions contributing to successive new peak days
• Surpassed 2024 Adjusted EBITDA guidance midpoint
• 2024 leverage ratio: 3.79x
• Raised 2025 Adjusted EBITDA guidance midpoint by 3% to between $7.45 billion and $7.85 billion, with a projected 5-year CAGR of 8% through 2025
• Dividend increase: 5.3% to $2.00 annualized; continuing quarterly dividend since 1974

Successful execution of strategic priorities in 2024 fuels momentum for 2025 growth

• Transco expansions: Placed Regional Energy Access, Southside Reliability Enhancement and Carolina Market Link expansions in service
• Key expansions: MountainWest, Marcellus South gathering system and the Deepwater Gulf
• Gulf Coast Storage integration: 115 Bcf of strategically located storage to serve growing LNG exports and power generation demand, announcing first expansion of 10 Bcf
• High-return transmission projects: Six projects announced in 2024 to add 885 MMcf/d of capacity, serving key demand centers along footprint
• Portfolio enhancements: Consolidated interest in Gulf Discovery system and Wamsutter upstream joint venture; divested Aux Sable
• DJ Basin bolt-on: Acquired Rimrock’s DJ gathering and processing system
• Emissions reductions: 92 compressor units replaced, decreasing emissions and operating expenses and generating earnings growth from Transco rate case
• Sustainability leadership: Recognized in key rankings, including the Dow Jones Best-in-Class Index, S&P Global, MSCI and the 2024 CDP Climate Change Questionnaire

CEO Perspective

Alan Armstrong, president and chief executive officer, made the following comments:

“Our natural gas-focused strategy delivered outstanding financial results in 2024, with Adjusted EBITDA and contracted transmission capacity reaching record levels due to the continued growth in natural gas demand driven by the abundance of low-cost U.S. natural gas. As we maintain our strong track record of project execution and completion, we fully expect this growth to accelerate in 2025. Consequently, we are raising our Adjusted EBITDA guidance midpoint by 3% to $7.65 billion, representing a remarkable compound annual growth rate (CAGR) of 8% over the last five years.

“In 2024, we expanded Transco with the completion of the Regional Energy Access, Southside Reliability Enhancement and Carolina Market Link projects as natural gas demand hit record highs with the onset of winter. We also increased transmission capacity for MountainWest and gathering capacity in the prolific Marcellus and Deepwater Gulf regions. Currently, we have 14 high-return transmission projects in execution, including Transco’s Southeast Supply Enhancement project, a 1.6 Bcf/d expansion that will drive the largest earnings increase for a Williams pipeline project. Additionally, we optimized our portfolio by divesting Aux Sable and consolidating our interests in the Gulf Discovery system and the Wamsutter upstream joint ventures. Furthermore, we expanded our asset base in the DJ Basin with the recent bolt-on acquisition of the Rimrock gathering and processing system.”

Armstrong added, “For the last several years we’ve been implementing our long-term strategy to bring Williams to where we are today with a healthy balance sheet and a clear line of sight to a full portfolio of high-return projects. During these early years of what is shaping up to be the golden age of natural gas, our strategy is taking hold in a powerful way that is delivering robust growth and compounding returns for our shareholders. This is evidenced by our 5% CAGR on our dividend and annualized total shareholder return of nearly 30% over the last five years. Looking ahead, we maintain our long-standing commitment to shareholder returns and have once again increased our dividend this year by 5.3% as we continue providing the critical infrastructure that serves the increasing demand for clean, reliable energy across growing markets.”

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.	2024		2023			2024		2023
GAAP Measures
Net Income	$485		$1,146			$2,222		$3,273
Net Income Per Share	$0.40		$0.94			$1.82		$2.68
Cash Flow From Operations	$1,218		$1,813			$4,974		$5,938
Non-GAAP Measures (1)
Adjusted EBITDA	$1,776		$1,721			$7,080		$6,779
Adjusted Net Income	$579		$588			$2,347		$2,334
Adjusted Earnings Per Share	$0.47		$0.48			$1.92		$1.91
Available Funds from Operations	$1,335		$1,323			$5,378		$5,213
Dividend Coverage Ratio	2.31x		2.43x			2.32x		2.39x
Other
Debt-to-Adjusted EBITDA at Quarter End (2)	3.79x		3.58x
Capital Investments (Excluding Acquisitions) (3) (4)	$760		$666			$2,706		$2,711
(1) Schedules reconciling Adjusted Net Income, Adjusted EBITDA, Available Funds from Operations and Dividend Coverage Ratio (non-GAAP measures) to the most comparable GAAP measure are available at www.williams.com and as an attachment to this news release.
(2) Does not represent leverage ratios measured for WMB credit agreement compliance or leverage ratios as calculated by the major credit ratings agencies. Debt is net of cash on hand, and Adjusted EBITDA reflects the sum of the last four quarters.
(3) Capital Investments include increases to property, plant, and equipment (growth & maintenance capital), purchases of and contributions to equity-method investments and purchases of other long-term investments.
(4) Fourth-quarter and full-year 2024 capital excludes $249 million, net of cash acquired, for the Crowheart acquisition, which closed in November 2024. Full-year 2024 also excludes $1.844 billion for the acquisition of the Gulf Coast Storage assets, which closed January 2024, and $151 million for the consolidation of our Discovery JV, which closed in August 2024. Fourth-quarter and full-year 2023 capital excludes $544 million for the DJ Basin acquisitions, which closed in November 2023. Full-year 2023 capital also excludes $1.024 billion for the acquisition of MountainWest Pipeline Holding Company, which closed in February 2023.

GAAP Measures

Fourth-quarter 2024 net income decreased by $661 million compared to the prior year primarily reflecting the absence of a $534 million gain in 2023 related to the net cash received from the favorable resolution of litigation with Energy Transfer and an unfavorable change of $384 million in net unrealized gains/losses on commodity derivatives, partially offset by $161 million of higher service revenues driven by acquisitions and expansion projects. The decrease was also impacted by higher operating costs and depreciation from recent acquisitions, as well as lower investing income. The tax provision decreased $280 million primarily due to lower pretax income.

Full-year 2024 net income decreased by $1.051 billion compared to the prior year reflecting an unfavorable change of $1.027 billion in net unrealized gains/losses on commodity derivatives, the previously described $534 million net litigation gain, partially offset by $602 million of higher service revenues driven by acquisitions and expansion projects. The decrease was also impacted by higher operating costs, depreciation, and interest expense from recent acquisitions. Gains in 2024 of $149 million from the sale of our interests in Aux Sable and $127 million associated with the Discovery acquisition were partially offset by the absence of a $129 million gain on the sale of the Bayou Ethane system in 2023. The tax provision decreased $365 million primarily due to lower pretax income. The 2023 period also reported a loss from discontinued operations associated with an adverse legal ruling involving former refinery operations.

Fourth-quarter 2024 cash flow from operations decreased $595 million compared to the prior year, while full-year 2024 decreased $964 million, both driven by the absence of the previously described $534 million net litigation gain and unfavorable net changes in derivative collateral requirements, partially offset by higher operating results exclusive of non-cash items. The full year decline was also impacted by unfavorable changes in working capital.

Non-GAAP Measures

Fourth-quarter 2024 Adjusted EBITDA increased by $55 million over the prior year, driven by the previously described favorable net contributions from acquisitions and expansion projects. Full-year 2024 Adjusted EBITDA increased by $301 million over the prior year, similarly reflecting favorable net contributions from acquisitions and expansion projects, partially offset by lower proportional EBITDA from investees that have been sold or acquired by us and now consolidated.

Fourth-quarter 2024 Adjusted Net Income declined by $9 million over the prior year, while full-year 2024 Adjusted Net Income increased $13 million over the prior year, both driven by the previously described impacts to net income, adjusted primarily to remove the effects of the litigation gain related to Energy Transfer, gains associated with Bayou Ethane, Discovery, and Aux Sable, net unrealized gains/losses on commodity derivatives, acquisition-related costs, and the related income tax effects.

Fourth-quarter and full-year 2024 Available Funds From Operations (AFFO) increased by $12 million and $165 million, respectively, compared to the prior year primarily due to higher adjusted results from continuing operations exclusive of non-cash items.

Business Segment Results & Form 10-K

Williams’ operations are comprised of the following reportable segments: Transmission & Gulf, Northeast G&P, West and Gas & NGL Marketing Services, as well as Other. For more information, see the company’s 2024 Form 10-K.

	Fourth Quarter											Full Year
Amounts in millions	Modified EBITDA						Adjusted EBITDA					Modified EBITDA						Adjusted EBITDA
	4Q 2024		4Q 2023	Change			4Q 2024	4Q 2023	Change			2024		2023	Change			2024	2023	Change
Transmission & Gulf	$825		$741	$84			$826	$752	$74			$3,273		$3,068	$205			$3,307	$2,982	$325
Northeast G&P	497		477	20			499	485	14			1,958		1,916	42			1,966	1,955	11
West	344		307	37			345	323	22			1,312		1,238	74			1,322	1,236	86
Gas & NGL Marketing Services	(110	)	272	(382	)		36	69	(33	)		(124	)	950	(1,074	)		215	300	(85	)
Other	56		645	(589	)		70	92	(22	)		237		841	(604	)		270	306	(36	)
Total	$1,612		$2,442	($830	)		$1,776	$1,721	$55			$6,656		$8,013	($1,357	)		$7,080	$6,779	$301
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 & Gulf

Fourth-quarter 2024 Modified EBITDA improved compared to the prior year driven by favorable net contributions from the Gulf Coast Storage and Discovery acquisitions and the Regional Energy Access expansion project. Full-year 2024 Modified EBITDA improved as the favorable net contributions from acquisitions, including MountainWest, and Regional Energy Access, along with lower one-time acquisition and transition costs, were partially offset by the absence of the previously mentioned gain on the sale of the Bayou Ethane system and hurricane impacts. Fourth-quarter and full-year Adjusted EBITDA, which excludes the Bayou Ethane gain and acquisition and transition costs, improved compared to the prior year.

Northeast G&P

Fourth-quarter and full-year 2024 Modified EBITDA increased compared to the prior year driven by higher rates at Susquehanna Supply Hub, Ohio Valley Midstream and Bradford, substantially offset by lower gathering volumes. The improved full-year Modified EBITDA also reflects the absence of our share of a loss contingency accrual at Aux Sable in 2023, which is excluded from Adjusted EBITDA.

West

Fourth-quarter 2024 Modified and Adjusted EBITDA increased compared to the prior year benefiting from the DJ Basin Acquisitions, partially offset by lower gathering volumes. Both metrics also improved for the full-year period reflecting similar drivers, as well as improved commodity margins to reflect favorable changes in commodity processing costs and increased contributions from Overland Pass Pipeline reflecting higher volumes, partially offset by lower realized gains on natural gas hedges. The full-year Modified EBITDA was also impacted by the absence of a first-quarter 2023 favorable contract settlement, which is excluded from Adjusted EBITDA.

Gas & NGL Marketing Services

Fourth-quarter 2024 Modified EBITDA decreased from the prior year reflecting lower gas and NGL marketing margins and a $358 million net unfavorable change in unrealized gains/losses on commodity derivatives, which is excluded from Adjusted EBITDA. Full-year 2024 Modified EBITDA also decreased from the prior year reflecting a decline in gas and NGL marketing margins, as well as a $1 billion net unfavorable change in unrealized gains/losses on commodity derivatives, which is excluded from Adjusted EBITDA.

Other

Fourth-quarter and full-year 2024 Modified and Adjusted EBITDA decreased compared to the prior year driven by the absence of the $534 million litigation settlement income related to Energy Transfer in 2023 and an unfavorable change in unrealized gains/losses on commodity derivatives, both of which are excluded from Adjusted EBITDA. These metrics also reflect lower net contributions from upstream operations, including the benefit of upstream interests acquired in the fourth quarter of 2024.

2025 Financial Guidance

The company is raising the midpoint of its 2025 Adjusted EBITDA guidance by 3% and updating the range to between $7.45 billion and $7.85 billion. The company continues to expect 2025 growth capex between $1.65 billion and $1.95 billion and maintenance capex between $650 million and $750 million, excluding capital of $150 million based on midpoint for emissions reduction and modernization initiatives. Williams is improving its leverage ratio midpoint for 2025 to 3.55x and has increased the dividend by 5.3% on an annualized basis to $2.00 in 2025 from $1.90 in 2024.

Williams’ Fourth-Quarter and Full-Year 2024 Materials to be Posted Shortly; Q&A Webcast Scheduled for Tomorrow

Williams’ fourth-quarter and full-year 2024 earnings presentation will be posted at www.williams.com. The company’s full-year 2024 earnings conference call and webcast with analysts and investors is scheduled for Thursday, Feb. 13, 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.vevent.com/register/BI2a741c8698464278bd7752bfd9ef3746.

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

About Williams

Williams (NYSE: WMB) is a trusted energy industry leader committed to safely, reliably, and responsibly meeting growing energy demand. We use our 33,000-mile pipeline infrastructure to move a 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 – by powering the global economy while delivering immediate emissions reductions within our natural gas network and investing in new energy technologies. Learn more at www.williams.com.

The Williams Companies, Inc. Consolidated Statement of Income (Unaudited)
		Year Ended December 31,
			2024				2023				2022
		(Millions, except per-share amounts)
Revenues:
Service revenues		$	7,628			$	7,026			$	6,536
Service revenues – commodity consideration			134				146				260
Product sales			2,991				2,779				4,556
Net gain (loss) from commodity derivatives			(250	)			956				(387	)
Total revenues			10,503				10,907				10,965
Costs and expenses:
Product costs			2,075				1,884				3,369
Net processing commodity expenses			43				151				88
Operating and maintenance expenses			2,179				1,984				1,817
Depreciation and amortization expenses			2,219				2,071				2,009
Selling, general, and administrative expenses			708				665				636
Gain on sale of business			—				(129	)			—
Other (income) expense – net			(60	)			(30	)			28
Total costs and expenses			7,164				6,596				7,947
Operating income (loss)			3,339				4,311				3,018
Equity earnings (losses)			560				589				637
Other investing income (loss) – net			343				108				16
Interest expense			(1,364	)			(1,236	)			(1,147	)
Net gain from Energy Transfer litigation judgment			—				534				—
Other income (expense) – net			108				99				18
Income (loss) before income taxes			2,986				4,405				2,542
Less: Provision (benefit) for income taxes			640				1,005				425
Income (loss) from continuing operations			2,346				3,400				2,117
Income (loss) from discontinued operations			—				(97	)			—
Net income (loss)			2,346				3,303				2,117
Less: Net income (loss) attributable to noncontrolling interests			121				124				68
Net income (loss) attributable to The Williams Companies, Inc.			2,225				3,179				2,049
Less: Preferred stock dividends			3				3				3
Net income (loss) available to common stockholders		$	2,222			$	3,176			$	2,046
Amounts attributable to The Williams Companies, Inc. available to common stockholders:
Income (loss) from continuing operations		$	2,222			$	3,273			$	2,046
Income (loss) from discontinued operations			—				(97	)			—
Net income (loss) available to common stockholders		$	2,222			$	3,176			$	2,046
Basic earnings (loss) per common share:
Income (loss) from continuing operations		$	1.82			$	2.69			$	1.68
Income (loss) from discontinued operations			—				(.08	)			—
Net income (loss) available to common stockholders		$	1.82			$	2.61			$	1.68
Weighted-average shares (thousands)			1,219,184				1,217,784				1,218,362
Diluted earnings (loss) per common share:
Income (loss) from continuing operations		$	1.82			$	2.68			$	1.67
Income (loss) from discontinued operations			—				(.08	)			—
Net income (loss) available to common stockholders		$	1.82			$	2.60			$	1.67
Weighted-average shares (thousands)			1,222,954				1,222,715				1,222,672

The Williams Companies, Inc. Consolidated Balance Sheet (Unaudited)
		December 31,
			2024				2023
		(Millions, except per-share amounts)
ASSETS
Current assets:
Cash and cash equivalents		$	60			$	2,150
Trade accounts and other receivables (net of allowance of ($1) at December 31, 2024 and ($3) at December 31, 2023)			1,863				1,655
Inventories			279				274
Derivative assets			267				239
Other current assets and deferred charges			192				195
Total current assets			2,661				4,513
Investments			4,140				4,637
Property, plant, and equipment – net			38,692				34,311
Intangible assets – net of accumulated amortization			7,209				7,593
Regulatory assets, deferred charges, and other			1,807				1,573
Total assets		$	54,509			$	52,627
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable		$	1,613			$	1,379
Derivative liabilities			164				105
Other current liabilities			1,360				1,284
Commercial paper			455				725
Long-term debt due within one year			1,720				2,337
Total current liabilities			5,312				5,830
Long-term debt			24,736				23,376
Deferred income tax liabilities			4,455				3,846
Regulatory liabilities, deferred income, and other			5,245				4,684
Contingent liabilities and commitments
Equity:
Stockholders’ equity:
Preferred stock ($1 par value; 30 million shares authorized at December 31, 2024 and December 31, 2023; 35 thousand shares issued at December 31, 2024 and December 31, 2023)			35				35
Common stock ($1 par value; 1,470 million shares authorized at December 31, 2024 and December 31, 2023; 1,258 million shares issued at December 31, 2024 and 1,256 million shares issued at December 31, 2023)			1,258				1,256
Capital in excess of par value			24,643				24,578
Retained deficit			(12,396	)			(12,287	)
Accumulated other comprehensive income (loss)			76				—
Treasury stock, at cost (39 million shares at December 31, 2024 and December 31, 2023 of common stock)			(1,180	)			(1,180	)
Total stockholders’ equity			12,436				12,402
Noncontrolling interests in consolidated subsidiaries			2,404				2,489
Total equity			14,840				14,891
Total liabilities and equity		$	54,509			$	52,627

The Williams Companies, Inc. Consolidated Statement of Cash Flows (Unaudited)
		Year Ended December 31,
			2024				2023				2022
		(Millions)
OPERATING ACTIVITIES:
Net income (loss)		$	2,346			$	3,303			$	2,117
Adjustments to reconcile to net cash provided (used) by operating activities:
Depreciation and amortization			2,219				2,071				2,009
Provision (benefit) for deferred income taxes			506				951				431
Equity (earnings) losses			(560	)			(589	)			(637	)
Distributions from equity-method investees			789				796				865
Net unrealized (gain) loss from commodity derivative instruments			367				(660	)			249
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			10				30				161
Amortization of stock-based awards			99				77				73
Cash provided (used) by changes in current assets and liabilities:
Accounts receivable			(169	)			1,089				(733	)
Inventories			(9	)			13				(110	)
Other current assets and deferred charges			9				60				(33	)
Accounts payable			139				(1,009	)			410
Other current liabilities			35				(19	)			209
Changes in current and noncurrent commodity derivative assets and liabilities			(286	)			200				94
Other, including changes in noncurrent assets and liabilities			(245	)			(216	)			(216	)
Net cash provided (used) by operating activities			4,974				5,938				4,889
FINANCING ACTIVITIES:
Proceeds from (payments of) commercial paper – net			(269	)			372				345
Proceeds from long-term debt			3,594				2,755				1,755
Payments of long-term debt			(2,946	)			(634	)			(2,876	)
Payments for debt issuance costs			(32	)			(23	)			(17	)
Proceeds from issuance of common stock			10				6				54
Purchases of treasury stock			—				(130	)			(9	)
Common dividends paid			(2,316	)			(2,179	)			(2,071	)
Dividends and distributions paid to noncontrolling interests			(242	)			(213	)			(204	)
Contributions from noncontrolling interests			36				18				18
Other – net			(36	)			(21	)			(37	)
Net cash provided (used) by financing activities			(2,201	)			(49	)			(3,042	)
INVESTING ACTIVITIES:
Property, plant, and equipment:
Capital expenditures (1)			(2,573	)			(2,516	)			(2,253	)
Dispositions – net			(105	)			(51	)			(30	)
Proceeds from sale of business			—				346				—
Purchases of businesses, net of cash acquired			(2,244	)			(1,568	)			(933	)
Proceeds from dispositions of equity-method investments			161				—				—
Purchases of and contributions to equity-method investments			(114	)			(141	)			(166	)
Other – net			12				39				7
Net cash provided (used) by investing activities			(4,863	)			(3,891	)			(3,375	)
Increase (decrease) in cash and cash equivalents			(2,090	)			1,998				(1,528	)
Cash and cash equivalents at beginning of year			2,150				152				1,680
Cash and cash equivalents at end of year		$	60			$	2,150			$	152
(1) Increases to property, plant, and equipment		$	(2,581	)		$	(2,564	)		$	(2,394	)
Changes in related accounts payable and accrued liabilities			8				48				141
Capital expenditures		$	(2,573	)		$	(2,516	)		$	(2,253	)

Contacts

MEDIA CONTACT:
media@williams.com
(800) 945-8723

INVESTOR CONTACTS:
Danilo Juvane

(918) 573-5075

Caroline Sardella

(918) 230-9992

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