Williams Delivers Strong Third-Quarter 2025 Results

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

Natural gas focused strategy continues to drive key financial metrics

• GAAP net income: $646 million, or $0.53 per diluted share (EPS)
• Adjusted net income: $603 million, or $0.49 per diluted share (Adj. EPS), up 14% vs. 3Q 2024
• Adjusted EBITDA: $1.920 billion, up $217 million or 13% vs. 3Q 2024
• Cash flow from operations (CFFO): $1.439 billion, up $196 million or 16% vs. 3Q 2024
• Available funds from operations (AFFO): $1.449 billion, up $163 million or 13% vs. 3Q 2024
• Dividend coverage ratio: 2.37x (AFFO basis)

Advanced key growth projects and executed strategic priorities

• Placed in service Transco’s Alabama Georgia Connector and Commonwealth Energy Connector expansion projects as well as Northwest Pipeline’s Stanfield South project
• Placed in service Gulf deepwater Shenandoah and Salamanca expansions
• Completed Louisiana Energy Gateway and Haynesville West expansion
• Expanded scope of Socrates by ~$400 million to $2 billion and announced two additional Power Innovation projects
• Accelerated wellhead to water strategy with Haynesville E&P sale and strategic partnership with Woodside
• Signed precedent agreements for Pine Prairie storage expansion, MountainWest’s Green River West expansion and Transco’s Wharton West expansion

CEO Perspective

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

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

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

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

Williams Summary Financial Information	3Q			Year to Date
Amounts in millions, except ratios and per-share amounts. Per share amounts are reported on a diluted basis. Net income amounts are from continuing operations attributable to The Williams Companies, Inc. available to common stockholders.	2025	2024		2025	2024
GAAP Measures
Net Income	$646	$705		$1,882	$1,737
Net Income Per Share	$0.53	$0.58		$1.54	$1.42
Cash Flow From Operations	$1,439	$1,243		$4,322	$3,756
Non-GAAP Measures (1)
Adjusted EBITDA	$1,920	$1,703		$5,717	$5,304
Adjusted Net Income	$603	$528		$1,899	$1,768
Adjusted Earnings Per Share	$0.49	$0.43		$1.55	$1.45
Available Funds from Operations	$1,449	$1,286		$4,211	$4,043
Dividend Coverage Ratio	2.37x	2.22x		2.30x	2.33x
Other
Debt-to-Adjusted EBITDA at Quarter End (2)	3.73x	3.75x
Capital Investments (Excluding Acquisitions) (3) (4)	$1,053	$720		$2,762	$1,946
(1) Schedules reconciling Adjusted Net Income, Adjusted EBITDA, Available Funds from Operations and Dividend Coverage Ratio (non-GAAP measures) to the most comparable GAAP measure are available at www.williams.com and as an attachment to this news release.
(2) Does not represent leverage ratios measured for WMB credit agreement compliance or leverage ratios as calculated by the major credit ratings agencies. Debt is net of cash on hand, and Adjusted EBITDA reflects the sum of the last four quarters.
(3) Capital investments includes increases to property, plant, and equipment (growth & maintenance), purchases of and contributions to equity-method investments and purchases of other long-term investments.
(4) 3Q YTD 2025 capital excludes $43 million for the acquisition of Saber Midstream, which closed June 2025; $153 million for the investment in Cogentrix, which closed March 2025; $319 million for the Rimrock acquisition, which closed January 2025; and $1 million for an adjustment of the Crowheart acquisition and Discovery consolidation, which closed in 2024. 3Q 2024 and 3Q YTD 2024 capital excludes $151 million for the consolidation of our Discovery JV, which closed August 2024. 3Q YTD 2024 capital also excludes $1.844 billion for the acquisition of the Gulf Coast Storage assets, which closed January 2024.

GAAP Measures

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

• Higher service revenues of $210 million and $512 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 $38 million and $265 million, respectively, in net unrealized gains/losses on commodity derivatives, and
• Higher net realized sales from upstream operations including contributions from the fourth-quarter 2024 Crowheart acquisition.

These favorable changes were unfavorably impacted by:

• The absence of third-quarter 2024 gains of $149 million from the sale of our interests in Aux Sable and $127 million associated with the Discovery Acquisition.
• Lower equity allowance for funds used during construction (equity AFUDC) associated with capital projects at our regulated natural gas pipelines,
• A $25 million write-off in third-quarter 2025 of certain compression assets in the West,
• Higher net interest expense, and
• A higher provision for income taxes, including $25 million recorded in third-quarter 2025 associated with an increase in the estimated deferred state income tax rate.
• Higher operating and administrative costs for the year-to-date period were driven by recent acquisitions and assets placed in service, partially offset by the absence of prior year charges associated with a change in payroll policy. For the quarterly period, these impacts were largely offsetting.
• The year-to-date period also reflected higher depreciation expense, while the quarterly period had little change as higher depreciation expense was offset by a one-time benefit associated with the settlement-in-principle of Transco’s rate case.

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

Non-GAAP Measures

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

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

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

Business Segment Results & Form 10-Q

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

	Third Quarter								Year to Date
Amounts in millions	Modified EBITDA				Adjusted EBITDA				Modified EBITDA					Adjusted EBITDA
	3Q 2025	3Q 2024	Change		3Q 2025	3Q 2024	Change		2025	2024		Change		2025	2024	Change
Transmission, Power & Gulf	$973	$811	$162		$947	$830	$117		$2,722	$2,448		$274		$2,712	$2,481	$231
Northeast G&P	505	476	29		505	484	21		1,520	1,461		59		1,520	1,467	53
West	342	323	19		367	330	37		1,037	968		69		1,062	977	85
Gas & NGL Marketing Services	54	11	43		11	4	7		176	(14	)	190		151	179	(28	)
Other	93	58	35		90	55	35		286	181		105		272	200	72
Total	$1,967	$1,679	$288		$1,920	$1,703	$217		$5,741	$5,044		$697		$5,717	$5,304	$413
Note: Williams uses Modified EBITDA for its segment reporting. Definitions of Modified EBITDA and Adjusted EBITDA and schedules reconciling to net income are included in this news release.

Transmission, Power & Gulf

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

Northeast G&P

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

West

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

Gas & NGL Marketing Services

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

Other

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

2025 Financial Guidance

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

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

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

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

About Williams

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

The Williams Companies, Inc.
Consolidated Statement of Income
(Unaudited)
		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2025				2024				2025				2024
		(Millions, except per-share amounts)
Revenues:
Service revenues		$	2,121			$	1,911			$	6,165			$	5,653
Service revenues – commodity consideration			45				34				141				82
Product sales			701				703				2,416				2,158
Net gain (loss) from commodity derivatives			56				5				30				(133	)
Total revenues			2,923				2,653				8,752				7,760
Costs and expenses:
Product costs			471				517				1,560				1,467
Net processing commodity expenses			14				7				46				29
Operating and maintenance expenses			583				580				1,697				1,613
Depreciation, depletion, and amortization expenses			564				566				1,754				1,654
Selling, general, and administrative expenses			168				170				530				520
Other (income) expense – net			14				(25	)			17				(69	)
Total costs and expenses			1,814				1,815				5,604				5,214
Operating income (loss)			1,109				838				3,148				2,546
Equity earnings (losses)			152				147				449				431
Other investing income (loss) – net			19				290				31				332
Interest expense			(372	)			(338	)			(1,071	)			(1,026	)
Other income (expense) – net			21				31				51				95
Income (loss) before income taxes			929				968				2,608				2,378
Less: Provision (benefit) for income taxes			246				227				613				549
Net income (loss)			683				741				1,995				1,829
Less: Net income (loss) attributable to noncontrolling interests			36				35				111				90
Net income (loss) attributable to The Williams Companies, Inc.			647				706				1,884				1,739
Less: Preferred stock dividends			1				1				2				2
Net income (loss) available to common stockholders		$	646			$	705			$	1,882			$	1,737
Basic earnings (loss) per common share:
Net income (loss) available to common stockholders		$	.53			$	.58			$	1.54			$	1.43
Weighted-average shares (millions)			1,222				1,220				1,221				1,219
Diluted earnings (loss) per common share:
Net income (loss) available to common stockholders		$	.53			$	.58			$	1.54			$	1.42
Weighted-average shares (millions)			1,225				1,223				1,224				1,222

The Williams Companies, Inc.
Consolidated Balance Sheet
(Unaudited)
		September 30,				December 31,
		2025				2024
		(Millions, except per-share amounts)
ASSETS
Current assets:
Cash and cash equivalents		$	70			$	60
Trade accounts and other receivables (net of allowance of ($1) at September 30, 2025 and December 31, 2024)			1,480				1,863
Inventories			339				279
Derivative assets			157				267
Other current assets and deferred charges			225				192
Total current assets			2,271				2,661
Investments			4,188				4,140
Property, plant, and equipment			60,305				57,395
Accumulated depreciation, depletion, and amortization			(19,920	)			(18,703	)
Property, plant, and equipment – net			40,385				38,692
Intangible assets – net			7,004				7,209
Regulatory assets, deferred charges, and other			1,888				1,830
Total assets		$	55,736			$	54,532
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable		$	1,406			$	1,613
Derivative liabilities			101				164
Other current liabilities			1,472				1,360
Commercial paper			170				455
Long-term debt due within one year			2,228				1,720
Total current liabilities			5,377				5,312
Long-term debt			25,589				24,736
Deferred income tax liabilities			4,826				4,376
Regulatory liabilities, deferred income, and other			5,084				5,268
Contingent liabilities and commitments
Equity:
Stockholders’ equity:
Preferred stock ($1 par value; 30 million shares authorized at September 30, 2025 and December 31, 2024; 35 thousand shares issued at September 30, 2025 and December 31, 2024)			35				35
Common stock ($1 par value; 1,470 million shares authorized at September 30, 2025 and December 31, 2024; 1,261 million shares issued at September 30, 2025 and 1,258 million shares issued at December 31, 2024)			1,261				1,258
Capital in excess of par value			24,656				24,643
Retained deficit			(12,354	)			(12,396	)
Accumulated other comprehensive income (loss)			102				76
Treasury stock, at cost (39 million shares at September 30, 2025 and December 31, 2024 of common stock)			(1,180	)			(1,180	)
Total stockholders’ equity			12,520				12,436
Noncontrolling interests in consolidated subsidiaries			2,340				2,404
Total equity			14,860				14,840
Total liabilities and equity		$	55,736			$	54,532

The Williams Companies, Inc.
Consolidated Statement of Cash Flows
(Unaudited)
		Nine Months Ended
		September 30,
		2025				2024
		(Millions)
OPERATING ACTIVITIES:
Net income (loss)		$	1,995			$	1,829
Adjustments to reconcile to net cash provided (used) by operating activities:
Depreciation, depletion, and amortization			1,754				1,654
Provision (benefit) for deferred income taxes			442				467
Equity (earnings) losses			(449	)			(431	)
Distributions from equity-method investees			600				580
Net unrealized (gain) loss from commodity derivative instruments			(55	)			210
Gain on disposition of equity-method investments			—				(149	)
Gain on remeasurement of equity-method investments			—				(127	)
Inventory write-downs			5				8
Amortization of stock-based awards			70				69
Cash provided (used) by changes in current assets and liabilities:
Accounts receivable			384				367
Inventories			(66	)			(6	)
Other current assets and deferred charges			(43	)			(16	)
Accounts payable			(359	)			(317	)
Other current liabilities			95				(108	)
Changes in current and noncurrent commodity derivative assets and liabilities			77				(74	)
Other, including changes in noncurrent assets and liabilities			(128	)			(200	)
Net cash provided (used) by operating activities			4,322				3,756
FINANCING ACTIVITIES:
Proceeds from (payments of) commercial paper – net			(284	)			(723	)
Proceeds from long-term debt			2,994				3,594
Payments of long-term debt			(1,733	)			(2,286	)
Payments for debt issuance costs			(29	)			(31	)
Proceeds from issuance of common stock			9				8
Common dividends paid			(1,832	)			(1,737	)
Dividends and distributions paid to noncontrolling interests			(197	)			(178	)
Contributions from noncontrolling interests			22				36
Other – net			(60	)			(34	)
Net cash provided (used) by financing activities			(1,110	)			(1,351	)
INVESTING ACTIVITIES:
Property, plant, and equipment:
Capital expenditures (1)			(2,938	)			(1,805	)
Dispositions – net			(80	)			(73	)
Purchases of businesses, net of cash acquired			(1	)			(1,995	)
Proceeds from dispositions of equity-method investments			—				161
Purchases of and contributions to equity-method investments			(192	)			(101	)
Other – net			9				20
Net cash provided (used) by investing activities			(3,202	)			(3,793	)
Increase (decrease) in cash and cash equivalents			10				(1,388	)
Cash and cash equivalents at beginning of year			60				2,150
Cash and cash equivalents at end of period		$	70			$	762
(1) Increases to property, plant, and equipment		$	(3,079	)		$	(1,840	)
Changes in related accounts payable and accrued liabilities			141				35
Capital expenditures		$	(2,938	)		$	(1,805	)

Transmission, Power & Gulf
(UNAUDITED)
	2024																2025
(Dollars in millions)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year				1st Qtr			2nd Qtr			3rd Qtr			Year-to-date
Regulated interstate natural gas transportation, storage, and other revenues (1)	$	836		$	805		$	833		$	864		$	3,338			$	873		$	892		$	930		$	2,695
Gathering, processing, storage and transportation revenues (1)		137			147			167			170			621				179			218			237			634
Other fee revenues		12			9			7			9			37				13			11			6			30
Commodity margins		9			5			11			28			53				14			17			16			47
Operating and administrative costs (1)		(254	)		(261	)		(294	)		(295	)		(1,104	)			(270	)		(286	)		(290	)		(846	)
Other segment income (expenses) – net (1)		43			54			46			12			155				13			2			37			52
Proportional Modified EBITDA of equity-method investments		46			49			41			37			173				36			37			37			110
Modified EBITDA		829			808			811			825			3,273				858			891			973			2,722
Adjustments		10			4			19			1			34				4			12			(26	)		(10	)
Adjusted EBITDA	$	839		$	812		$	830		$	826		$	3,307			$	862		$	903		$	947		$	2,712
Statistics for Operated Assets
Natural Gas Transmission (2)
Transcontinental Gas Pipe Line
Avg. daily transportation volumes (MMdth)		14.6			12.9			14.3			14.1			14.0				15.9			14.0			14.9			14.9
Avg. daily firm reserved capacity (MMdth)		20.3			19.7			20.1			20.4			20.1				20.8			20.6			20.6			20.7
Northwest Pipeline LLC
Avg. daily transportation volumes (MMdth)		3.1			2.2			2.1			2.1			2.4				3.0			2.4			2.4			2.6
Avg. daily firm reserved capacity (MMdth)		3.8			3.7			3.7			3.7			3.7				3.7			3.7			3.7			3.7
MountainWest (3)
Avg. daily transportation volumes (MMdth)		4.3			3.2			3.6			4.1			3.8				3.7			3.1			3.3			3.4
Avg. daily firm reserved capacity (MMdth)		8.4			8.0			8.1			8.3			8.2				8.4			8.0			8.0			8.2
Gulfstream – Non-consolidated
Avg. daily transportation volumes (MMdth)		1.0			1.2			1.4			1.1			1.2				1.0			1.3			1.4			1.2
Avg. daily firm reserved capacity (MMdth)		1.4			1.4			1.4			1.4			1.4				1.4			1.4			1.4			1.4
Gathering, Processing, and Crude Oil Transportation
Gathering volumes (Bcf/d)		0.52			0.58			0.55			0.55			0.55				0.58			0.68			0.75			0.67
Plant inlet natural gas volumes (Bcf/d)		0.72			0.62			0.73			0.75			0.71				0.78			0.89			0.97			0.88
NGL production (Mbbls/d)		43			43			49			54			47				61			76			87			75
NGL equity sales (Mbbls/d)		8			10			9			13			10				10			15			12			12
Crude oil transportation volumes (Mbbls/d)		118			114			109			110			113				124			196			238			186
(1) Excludes certain amounts associated with revenues and operating costs for tracked or reimbursable charges.
(2) Tbtu converted to MMdth at one trillion British thermal units = one million dekatherms.
(3) Includes 100% of the volumes associated with the operated equity-method investment White River Hub, LLC.

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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