The Williams Companies, Inc. press release

Williams Delivers Strong Third-Quarter 2026 Results

2026-11-02

NYSE - New York Stock Exchange · Natural Gas · Natural Gas Liquids · Oil · Hydrogen · United States · Corporate Finance

Williams (NYSE: WMB) today announced its unaudited financial results for the three and nine months ended Sept. 30, 2026.

Financial performance demonstrates industry-leading growth position

GAAP net income: $699 million, or $0.56 per diluted share (EPS), up 8% and 6%, respectively, vs. 3Q 2025 Adjusted net income: $663 million, or $0.54 per diluted share (Adj. EPS), up 10% vs. 3Q 2025 Adjusted EBITDA: $2.039 billion, up $119 million or 6% vs. 3Q 2025 Cash flow from operations (CFFO): $1.505 billion, up $66 million or 5% vs. 3Q 2025 Available funds from operations (AFFO): $1.589 billion, up $140 million or 10% vs. 3Q 2025 Dividend coverage ratio: 2.42x (AFFO basis) Tracking toward the upper half of 2026 Adjusted EBITDA guidance range of $8.3 billion to $8.5 billion

Expanding growth runway and advancing key milestones

Closed acquisition of Momentum Midstream, enhancing our premier Haynesville position to serve growing LNG, industrial and power demand Announced a 9.4 Bcf storage expansion at Clay Basin Announced Transco's 150+ MMcf/d Southeast Supply Enhancement II Upsized Transco's Garden Connector capacity by 84 MMcf/d Expanded pipeline capacity by 413 MMcf/d across four projects Socrates' Plato North Power project on track for in-service by mid-November

CEO Perspective

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

“Williams delivered another strong quarter as our teams continued to execute across a growing portfolio of critical energy infrastructure projects. Year-to-date Adjusted EBITDA increased 9% year over year to $6.2 billion, reflecting the strength of our natural gas transmission, storage and gathering businesses and keeping us on track toward the upper half of our 2026 guidance range. Our performance to date, combined with a growing slate of projects set to come online, gives us strong confidence in our ability to achieve our long-term 11% plus Adjusted EBITDA compound annual growth rate through 2030.”

“I am especially proud of our team's exceptional execution to bring Socrates fully online ahead of schedule. As the first of many power projects, Socrates demonstrates our ability to deliver fast, reliable and scalable solutions for customers facing rapidly growing power demand, and we are actively working to commercialize additional power projects, which we expect to announce soon. We also closed the Momentum Midstream acquisition ahead of schedule, enhancing our premier footprint in the Haynesville — America’s fastest-growing natural gas basin — which strengthens Williams' ability to serve growing LNG, power and industrial demand. Across our broader portfolio, we announced new Transco projects and expansions, advanced a storage expansion at Clay Basin, and placed four pipeline projects into service.”

Zamarin added, “Together, these accomplishments underscore our ability to execute across multiple growth platforms while maintaining safe and reliable operations. With growing demand from LNG, power generation and industrial development, Williams is well positioned to deliver durable, long-term value for our customers and shareholders.”

| 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. | 2026 | 2025 | | 2026 | 2025 | | | | | | | | | | | | | | | | | GAAP Measures | | | | | | | | | | | Net Income | $ | 699 | $ | 646 | | $ | 2,390 | $ | 1,882 | | Net Income Per Share | $ | 0.56 | $ | 0.53 | | $ | 1.94 | $ | 1.54 | | Cash Flow From Operations | $ | 1,505 | $ | 1,439 | | $ | 4,484 | $ | 4,322 | | | | | | | | | | | | | Non-GAAP Measures (1) | | | | | | | | | | | Adjusted EBITDA | $ | 2,039 | $ | 1,920 | | $ | 6,214 | $ | 5,717 | | Adjusted Net Income | $ | 663 | $ | 603 | | $ | 2,172 | $ | 1,899 | | Adjusted Earnings Per Share | $ | 0.54 | $ | 0.49 | | $ | 1.77 | $ | 1.55 | | Available Funds from Operations | $ | 1,589 | $ | 1,449 | | $ | 4,809 | $ | 4,211 | | Dividend Coverage Ratio | 2.42x | 2.37x | | 2.48x | 2.30x | | | | | | | | | | | | | | | | | Other | | | | | | | | | | | Debt-to-Adjusted EBITDA at Quarter End (2) | 3.80x | 3.73x | | | | | | | | | Capital Investments (Excluding acquisitions) (3) (4) | $ | 2,727 | $ | 1,053 | | $ | 6,011 | $ | 2,762 | | | | | | | | | | | | | (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, $857 million of cash purchases of certain reimbursable long-lead Power 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) Third quarter and year-to-date 2026 capital investments exclude $2.816 billion for the September 2026 Momentum acquisition and $6 million and $176 million, respectively, of certain reimbursable long-lead Power equipment. Year-to-date 2025 capital excludes $43 million for the acquisition of Saber Midstream, which closed June 2025; $319 million for the Rimrock acquisition, which closed January 2025; $153 million for the investment in Cogentrix, which closed March 2025; and $1 million for an adjustment of the Crowheart acquisition and Discovery consolidation, which closed 2024. | | | | | | | | | |

GAAP Measures

Third-quarter and year-to-date 2026 net income increased by $53 million and $508 million, respectively, compared to the prior year. Both comparative periods benefited from:

Higher service revenues of $198 million and $512 million, respectively, reflecting new power generation revenues, the Momentum acquisition, projects placed in service, and higher storage revenues, while the year-to-date period also saw increases from new Gulf volumes. A gain of $83 million from the sale of a Permian gathering system. The year-to-date period also benefited from a net gain of $130 million from the June 2026 sale of the Brazos Permian II equity-method investment and a $194 million gain on the January 2026 sale of the South Mansfield upstream interests. The year-to-date period also reflects higher gas marketing margins.

These favorable changes were partially offset by:

Reduced upstream results due to the sale of the South Mansfield interests. An increase in operating and administrative expenses, including $63 million of acquisition and JV formation costs, as well as costs from acquired businesses and new projects. Unfavorable changes in net unrealized gains/losses on commodity derivatives of $29 million and $116 million, respectively. The year-to-date period also reflects a higher provision for income taxes driven by increased pre-tax income.

Third-quarter and year-to-date 2026 cash flow from operations increased $66 million and $162 million, respectively, compared to the prior year primarily due to higher operating results exclusive of non-cash items and higher distributions from equity-method investments, partially offset by unfavorable net changes in both working capital, including payment of Transco’s rate refunds in April 2026, and derivative collateral requirements.

Non-GAAP Measures

Third-quarter and year-to-date 2026 Adjusted EBITDA increased by $119 million and $497 million, respectively, over the prior year driven by the previously described increases in service revenues partially offset by reduced upstream results and higher operating and administrative expenses excluding the acquisition and JV formation costs. The year-to-date period also benefited from higher gas marketing margins.

Third-quarter and year-to-date 2026 Adjusted Net Income improved by $60 million and $273 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, acquisition and JV formation costs, and the gains associated with the asset sales.

Third-quarter and year-to-date 2026 Available Funds from Operations (AFFO) increased by $140 million and $598 million, respectively, compared to the prior year primarily due to higher adjusted operating results exclusive of non-cash items and higher distributions from equity-method investments. The year-to-date period also reflects 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; Gas & NGL Marketing Services and Other. For more information, see the company's third-quarter 2026 Form 10-Q.

| | Third Quarter | | Year to Date | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Amounts in millions | Modified EBITDA | | Adjusted EBITDA | | Modified EBITDA | | Adjusted EBITDA | | | | | | | | | | | | | | | | | | | | | | | | | | 3Q 2026 | | 3Q 2025 | Change | | | 3Q 2026 | | 3Q 2025 | Change | | | 2026 | | 2025 | Change | | | 2026 | | 2025 | Change | | | | | | | | | | Transmission, Power & Gulf | $ | 1,000 | $ | 973 | $ | 27 | | | $ | 1,030 | $ | 947 | $ | 83 | | | $ | 2,969 | $ | 2,722 | $ | 247 | | $ | 2,999 | $ | 2,712 | $ | 287 | | | Northeast G&P | | 542 | | 505 | | 37 | | | | 542 | | 505 | | 37 | | | | 1,606 | | 1,520 | | 86 | | | 1,606 | | 1,520 | | 86 | | | West | | 451 | | 342 | | 109 | | | | 401 | | 367 | | 34 | | | | 1,217 | | 1,037 | | 180 | | | 1,170 | | 1,062 | | 108 | | | Gas & NGL Marketing Services | | 39 | | 54 | | (15 | ) | | | 4 | | 11 | | (7 | ) | | | 202 | | 176 | | 26 | | | 230 | | 151 | | 79 | | | Other | | 52 | | 93 | | (41 | ) | | | 62 | | 90 | | (28 | ) | | | 382 | | 286 | | 96 | | | 209 | | 272 | | (63 | ) | | Total | $ | 2,084 | $ | 1,967 | $ | 117 | | | $ | 2,039 | $ | 1,920 | $ | 119 | | | $ | 6,376 | $ | 5,741 | $ | 635 | | $ | 6,214 | $ | 5,717 | $ | 497 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 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 2026 Modified and Adjusted EBITDA improved compared to the prior year driven by new power generation revenues, contributions from projects placed in service, and higher storage revenues, partially offset by higher operating and administrative expenses. New Gulf volumes also benefited the year-to-date period.

Northeast G&P

Third-quarter and year-to-date 2026 Modified and Adjusted EBITDA increased compared to the prior year driven primarily by higher volumes at Ohio Valley Midstream and higher proportional EBITDA from equity-method investments.

West

Third-quarter and year-to-date 2026 Modified EBITDA and Adjusted EBITDA improved compared to the prior year driven by the Momentum acquisition and Louisiana Energy Gateway, placed into service in third-quarter 2025. The year-to-date period also reflected higher gathering volumes including contributions from the 2025 Rimrock and Saber acquisitions, partially offset by lower minimum volume commitment revenues. Modified EBITDA benefited from the gain on sale of a Permian gathering system and the absence of a prior year impairment, partially offset by Momentum acquisition costs, all of which are excluded from Adjusted EBITDA.

Gas & NGL Marketing Services

Third-quarter 2026 Modified EBITDA decreased from the prior year, while year-to-date 2026 Modified EBITDA increased. Both periods reflect net unfavorable changes in unrealized gains/losses on commodity derivatives of $14 million and $79 million, respectively, which are excluded from Adjusted EBITDA. The year-to-date period for both measures benefited from higher gas marketing margins driven by winter storms.

Other

The changes in third-quarter and year-to-date 2026 Modified EBITDA reflect the absence of the South Mansfield upstream interests sold in January 2026 and net unfavorable changes in unrealized gains/losses on commodity derivatives. The year-to-date period also includes a $194 million gain from the January 2026 sale of the South Mansfield upstream interests. Both the gains on sale of the South Mansfield interests and the unrealized gains/losses on commodity derivatives are excluded from Adjusted EBITDA.

2026 Financial Guidance

The company continues to expect 2026 Adjusted EBITDA of $8.3 billion to $8.5 billion and growth capex between $7.3 billion and $7.9 billion. The leverage ratio midpoint for 2026 is approximately 3.75x. Guidance for 2026 growth capex and debt-to-adjusted EBITDA excludes certain reimbursable long-lead equipment.

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

Williams' third-quarter 2026 earnings presentation will be posted at www.williams.com . The company's third-quarter 2026 earnings conference call and webcast with analysts and investors is scheduled for Tuesday, Nov. 3, 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/BI584a5f0f046f4d079d5ceddf753d218f

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

September 30, | | Nine Months Ended September 30, | | | | | | | | | | | | | | | | | 2026 | | | | 2025 | | | | 2026 | | | | 2025 | | | | | (Millions, except per-share amounts) | | | | | | | | | | | | | | | | Revenues: | | | | | | | | | | | | | | | | | | Service revenues | | $ | 2,319 | | | $ | 2,121 | | | $ | 6,677 | | | $ | 6,165 | | | Service revenues – commodity consideration | | | 57 | | | | 45 | | | | 148 | | | | 141 | | | Product sales | | | 845 | | | | 701 | | | | 2,744 | | | | 2,416 | | | Net gain (loss) from commodity derivatives | | | 2 | | | | 56 | | | | (263 | ) | | | 30 | | | Total revenues | | | 3,223 | | | | 2,923 | | | | 9,306 | | | | 8,752 | | | Costs and expenses: | | | | | | | | | | | | | | | | | | Product costs | | | 618 | | | | 471 | | | | 1,670 | | | | 1,560 | | | Net processing commodity expenses | | | 14 | | | | 14 | | | | 35 | | | | 46 | | | Operating and maintenance expenses | | | 639 | | | | 583 | | | | 1,801 | | | | 1,697 | | | Depreciation, depletion, and amortization expenses | | | 620 | | | | 564 | | | | 1,796 | | | | 1,754 | | | General and administrative expenses | | | 275 | | | | 168 | | | | 648 | | | | 530 | | | Gain on sale of certain assets | | | (83 | ) | | | — | | | | (277 | ) | | | — | | | Other operating (income) expense – net | | | 4 | | | | 14 | | | | (6 | ) | | | 17 | | | Total costs and expenses | | | 2,087 | | | | 1,814 | | | | 5,667 | | | | 5,604 | | | Operating income (loss) | | | 1,136 | | | | 1,109 | | | | 3,639 | | | | 3,148 | | | Equity earnings (losses) | | | 157 | | | | 152 | | | | 477 | | | | 449 | | | Other investing income (loss) – net | | | 30 | | | | 19 | | | | 188 | | | | 31 | | | Interest expense | | | (385 | ) | | | (372 | ) | | | (1,132 | ) | | | (1,071 | ) | | Other income (expense) – net | | | 50 | | | | 21 | | | | 108 | | | | 51 | | | Income (loss) before income taxes | | | 988 | | | | 929 | | | | 3,280 | | | | 2,608 | | | Less: Provision (benefit) for income taxes | | | 221 | | | | 246 | | | | 725 | | | | 613 | | | Net income (loss) | | | 767 | | | | 683 | | | | 2,555 | | | | 1,995 | | | Less: Net income (loss) attributable to noncontrolling interests | | | 67 | | | | 36 | | | | 163 | | | | 111 | | | Net income (loss) attributable to The Williams Companies, Inc. | | | 700 | | | | 647 | | | | 2,392 | | | | 1,884 | | | Less: Preferred stock dividends | | | 1 | | | | 1 | | | | 2 | | | | 2 | | | Net income (loss) available to common stockholders | | $ | 699 | | | $ | 646 | | | $ | 2,390 | | | $ | 1,882 | | | Basic earnings (loss) per common share: | | | | | | | | | | | | | | | | | | Net income (loss) available to common stockholders | | $ | .56 | | | $ | .53 | | | $ | 1.95 | | | $ | 1.54 | | | Weighted-average shares (millions) | | | 1,238 | | | | 1,222 | | | | 1,228 | | | | 1,221 | | | Diluted earnings (loss) per common share: | | | | | | | | | | | | | | | | | | Net income (loss) available to common stockholders | | $ | .56 | | | $ | .53 | | | $ | 1.94 | | | $ | 1.54 | | | Weighted-average shares (millions) | | | 1,239 | | | | 1,225 | | | | 1,230 | | | | 1,224 | |

| The Williams Companies, Inc. | | | | | | | | | | Consolidated Balance Sheet | | | | | | | | | | (Unaudited) | | | | | | | | | | | | | | | | | | | | | | September 30, | | December 31, | | | | | | | | | 2026 | | | | 2025 | | | | | (Millions, except per-share amounts) | | | | | | | | ASSETS | | | | | | | | | | Current assets: | | | | | | | | | | Cash and cash equivalents | | $ | 1,756 | | | $ | 63 | | | Trade accounts and other receivables (net of allowance of ($1) at September 30, 2026 and December 31, 2025) | | | 2,098 | | | | 2,084 | | | Inventories | | | 319 | | | | 314 | | | Assets held for sale | | | — | | | | 318 | | | Derivative assets | | | 132 | | | | 209 | | | Other current assets and deferred charges | | | 427 | | | | 256 | | | Total current assets | | | 4,732 | | | | 3,244 | | | Investments | | | 4,507 | | | | 4,559 | | | Property, plant, and equipment | | | 73,849 | | | | 62,010 | | | Accumulated depreciation, depletion, and amortization | | | (21,318 | ) | | | (20,014 | ) | | Property, plant, and equipment – net | | | 52,531 | | | | 41,996 | | | Intangible assets – net | | | 6,972 | | | | 6,763 | | | Regulatory assets, deferred charges, and other | | | 1,938 | | | | 2,011 | | | Total assets | | $ | 70,680 | | | $ | 58,573 | | | | | | | | | | | | | LIABILITIES AND EQUITY | | | | | | | | | | Current liabilities: | | | | | | | | | | Accounts payable | | $ | 2,441 | | | $ | 2,224 | | | Liabilities held for sale | | | — | | | | 63 | | | Derivative liabilities | | | 135 | | | | 135 | | | Other current liabilities | | | 1,545 | | | | 1,639 | | | Commercial paper | | | — | | | | 700 | | | Long-term debt due within one year | | | 2,202 | | | | 1,345 | | | Total current liabilities | | | 6,323 | | | | 6,106 | | | Long-term debt | | | 31,732 | | | | 27,316 | | | Deferred income tax liabilities | | | 5,940 | | | | 5,170 | | | Regulatory liabilities, deferred income, and other | | | 5,191 | | | | 4,986 | | | Contingent liabilities and commitments | | | | | | | | | | | | | | | | | | | | Equity: | | | | | | | | | | Stockholders’ equity: | | | | | | | | | | Preferred stock ($1 par value; 30 million shares authorized at September 30, 2026 and December 31, 2025; 35 thousand shares issued at September 30, 2026 and December 31, 2025) | | | 35 | | | | 35 | | | Common stock ($1 par value; 1,470 million shares authorized at September 30, 2026 and December 31, 2025; 1,290 million shares issued at September 30, 2026 and 1,261 million shares issued at December 31, 2025) | | | 1,290 | | | | 1,261 | | | Capital in excess of par value | | | 27,257 | | | | 24,801 | | | Retained deficit | | | (11,794 | ) | | | (12,237 | ) | | Accumulated other comprehensive income (loss) | | | 125 | | | | 127 | | | Treasury stock, at cost (39 million shares at September 30, 2026 and December 31, 2025 of common stock) | | | (1,180 | ) | | | (1,180 | ) | | Total stockholders’ equity | | | 15,733 | | | | 12,807 | | | Noncontrolling interests in consolidated subsidiaries | | | 5,761 | | | | 2,188 | | | Total equity | | | 21,494 | | | | 14,995 | | | Total liabilities and equity | | $ | 70,680 | | | $ | 58,573 | |