The Williams Companies, Inc. press release

Williams Announces Record First-Quarter 2026 Results

2026-05-04

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 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 | | | | | | | | | | | | | | | | | | | 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 | ) |