The Williams Companies, Inc. press release
Williams Delivers Strong Second-Quarter 2025 Results and Raises Full-Year 2025 Guidance
NYSE - New York Stock Exchange · Natural Gas · Natural Gas Liquids · Oil · Hydrogen · United States
Williams (NYSE: WMB) today announced its unaudited financial results for the three and six months ended June 30, 2025.
Consistently strong base business drives performance of key financial metrics
GAAP net income: $546 million, or $0.45 per diluted share (EPS) Adjusted net income: $566 million, or $0.46 per diluted share (Adj. EPS), up 9% and 7%, respectively, vs. 2Q 2024 Adjusted EBITDA: $1.808 billion – up $141 million or 8% vs. 2Q 2024 Cash flow from operations (CFFO): $1.45 billion – up $171 million or 13% vs. 2Q 2024 Available funds from operations (AFFO): $1.317 billion – up $67 million or 5% vs. 2Q 2024 Dividend coverage ratio: 2.16x (AFFO basis) Increasing 2025 Adj. EBITDA guidance midpoint by another $50 million to $7.75 billion
Executing with discipline and agility in rapidly evolving energy landscape
Placed Transco's Texas to Louisiana Energy Pathway and Southeast Energy Connector expansion projects into service April 1, 2025 Accelerated timeline for Transco's Southeast Supply Enhancement project Signed precedent agreement for Transco's Northeast Supply Enhancement Transco and Gulfstream achieved all-time records for summer natural gas volumes Acquired Saber Midstream, enhancing Haynesville gathering footprint Broke ground on Socrates, a $1.6 billion Power Innovation project to serve growing AI demand Placed deepwater Ballymore and Shenandoah expansions in-service Placed Louisiana Energy Gateway in-service and completed Haynesville West expansion Published 2024 Sustainability Report highlighting industry-leading performance
CEO Perspective
Chad Zamarin, president and chief executive officer, made the following comments:
“Williams delivered another outstanding quarter with Adjusted EBITDA up 8% over second quarter last year, driven primarily by Transco expansions and new volumes in the Gulf as well as higher volumes in our Northeast and West gathering and processing segments. With the continued strength of our base business and our recent acquisition of Saber Midstream in the Haynesville, we expect earnings growth to continue to build in the second half of the year. As a result, we are raising our 2025 Adjusted EBITDA guidance midpoint again by $50 million to $7.75 billion, for a total increase of $350 million from our original 2025 guidance.
"Our teams continue to deliver across our entire asset base. We recently completed six projects, including Texas to Louisiana Energy Pathway, Louisiana Energy Gateway and the Shenandoah deepwater project. We also accelerated the timeline for Transco’s Southeast Supply Enhancement project to meet growing demand for natural gas across the Mid-Atlantic and Southeast."
Zamarin added, "At Williams, we’re investing in infrastructure that will power America’s future. Our strong and steady growth across our portfolio underscores the critical role of natural gas as the backbone of reliable, affordable, and clean energy. We’re proud to build the infrastructure that is essential to meeting energy needs in the U.S. and globally."
| Williams Summary Financial Information | 2Q | | 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 | $546 | $401 | | $1,236 | $1,032 | | Net Income Per Share | $0.45 | $0.33 | | $1.01 | $0.84 | | Cash Flow From Operations | $1,450 | $1,279 | | $2,883 | $2,513 | | | | | | | | | Non-GAAP Measures (1) | | | | | | | Adjusted EBITDA | $1,808 | $1,667 | | $3,797 | $3,601 | | Adjusted Net Income | $566 | $521 | | $1,296 | $1,240 | | Adjusted Earnings Per Share | $0.46 | $0.43 | | $1.06 | $1.01 | | Available Funds from Operations | $1,317 | $1,250 | | $2,762 | $2,757 | | Dividend Coverage Ratio | 2.16x | 2.16x | | 2.26x | 2.38x | | | | | | | | | Other | | | | | | | Debt-to-Adjusted EBITDA at Quarter End (2) | 3.80x | 3.76x | | | | | Capital Investments (Excluding Acquisitions) (3) | $1,039 | $663 | | $1,709 | $1,226 | | | | | | | | | (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. 2Q 2025 and year-to-date 2025 exclude $43 million for the acquisition of Saber Midstream, which closed June 2025. Year-to-date 2025 capital also excludes $319 million for the acquisition of Rimrock, which closed January 2025, and $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. Year-to-date 2024 capital excludes $1.844 billion for the acquisition of the Gulf Coast Storage assets, which closed January 2024. | | | | | |
GAAP Measures
Second-quarter and year-to-date 2025 net income increased by $145 million and $204 million, respectively, compared to the prior year. Both comparative periods benefited from higher service revenues of $204 million and $302 million, respectively, driven by Transco expansion projects, new Gulf volumes, and higher gathering and processing volumes in the Northeast and West, as well as favorable changes of $167 million and $227 million, respectively, in net unrealized gains/losses on commodity derivatives. The year-to-date improvement also benefited from higher realized results from upstream operations including contributions from the fourth-quarter 2024 Crowheart acquisition. These favorable changes for both periods were partially offset by higher depreciation expense, higher operating costs, lower interest income and lower equity allowance for funds used during construction (equity AFUDC) associated with capital projects at our regulated natural gas pipelines. The tax provision for both periods increased primarily due to higher pretax income.
Second-quarter and year-to-date 2025 cash flow from operations increased compared to the prior year primarily due to favorable net changes to derivative collateral requirements and higher operating results exclusive of non-cash items. The second-quarter period was also impacted by net unfavorable changes in working capital, while the year-to-date net changes in working capital were favorable.
Non-GAAP Measures
Second-quarter 2025 Adjusted EBITDA increased by $141 million over the prior year, driven by the previously described increases in service revenues, partially offset by higher operating costs and lower equity AFUDC. Year-to-date 2025 Adjusted EBITDA increased by $196 million over the prior year, driven by the previously described increases in service revenues and higher net realized results from upstream operations, partially offset by higher operating and administrative costs and lower equity AFUDC. Both periods also benefited from adjustments to reflect the timing of Transco’s rate case.
Second-quarter and year-to-date 2025 Adjusted Net Income improved by $45 million and $56 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 and reflect the timing of Transco’s rate case, as well as the related income tax effects of such adjustments.
Second-quarter 2025 Available Funds From Operations (AFFO) increased by $67 million compared to the prior year primarily due to higher results from operations, exclusive of non-cash items, and higher distributions from equity-method investees. Year-to-date 2025 AFFO increased by $5 million compared to the prior year as increased distributions from equity-method investees were substantially offset by lower contributions from noncontrolling interests.
Business Segment Results & Form 10-Q
Williams' operations are comprised of the following reportable segments: Transmission & Gulf of America, Northeast G&P, West and Gas & NGL Marketing Services, as well as Other. For more information, see the company's second-quarter 2025 Form 10-Q.
| | Second Quarter | | Year to Date | | | | | | | | | | | | | | | | | | | | | Amounts in millions | Modified EBITDA | | Adjusted EBITDA | | Modified EBITDA | | Adjusted EBITDA | | | | | | | | | | | | | | | | | 2Q 2025 | | 2Q 2024 | | Change | | 2Q 2025 | | 2Q 2024 | | Change | | 2025 | 2024 | | Change | | 2025 | 2024 | Change | | | | | Transmission & Gulf of America | $891 | | $808 | | $83 | | $903 | | $812 | | $91 | | | $1,749 | $1,637 | | $112 | | $1,765 | $1,651 | $114 | | | Northeast G&P | 501 | | 481 | | 20 | | 501 | | 479 | | 22 | | | 1,015 | 985 | | 30 | | 1,015 | 983 | 32 | | | West | 341 | | 318 | | 23 | | 341 | | 319 | | 22 | | | 695 | 645 | | 50 | | 695 | 647 | 48 | | | Gas & NGL Marketing Services | (30 | ) | (126 | ) | 96 | | (15 | ) | (14 | ) | (1 | ) | | 122 | (25 | ) | 147 | | 140 | 175 | (35 | ) | | Other | 118 | | 47 | | 71 | | 78 | | 71 | | 7 | | | 193 | 123 | | 70 | | 182 | 145 | 37 | | | Total | $1,821 | | $1,528 | | $293 | | $1,808 | | $1,667 | | $141 | | | $3,774 | $3,365 | | $409 | | $3,797 | $3,601 | $196 | | | | | | | | | | | | | | | | | | | | | | | | | | | 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 of America
Second-quarter and year-to-date 2025 Modified and Adjusted EBITDA improved compared to the prior year driven by Transco expansion projects and new Gulf volumes, partially offset by lower equity AFUDC. Modified EBITDA for the 2024 periods was impacted by one-time acquisition costs, which are excluded from Adjusted EBITDA, while adjusted EBITDA for the 2025 periods reflect adjustments for the timing of Transco’s rate case.
Northeast G&P
Second-quarter 2025 Modified and Adjusted EBITDA increased compared to the prior year driven primarily by higher gathering and processing volumes at Ohio Valley Midstream, Cardinal, and Bradford.
West
Second-quarter 2025 Modified and Adjusted EBITDA increased compared to the prior year driven by higher volumes in the Haynesville and new volumes from the 2025 Rimrock and Saber acquisitions, partially offset by lower minimum volume commitment (MVC) revenues in the Eagle Ford. The year-to-date period also benefited from higher commodity margins.
Gas & NGL Marketing Services
Second-quarter 2025 Modified EBITDA increased from the prior year primarily reflecting a $102 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 $194 million net favorable change in unrealized gains/losses on commodity derivatives, which is excluded from Adjusted EBITDA, partially offset by a decline in gas marketing margins.
Other
The increase in second-quarter 2025 Modified EBITDA compared to the prior year reflects a $65 million favorable change in unrealized gains/losses on commodity derivatives, which is excluded from Adjusted EBITDA. The increase in year-to-date 2025 Modified EBITDA reflects improved realized results from upstream operations, including contributions from the Crowheart acquisition in fourth-quarter 2024, and a $33 million net favorable change in unrealized gains/losses on commodity derivatives, which is excluded from Adjusted EBITDA.
2025 Financial Guidance
The company is raising the midpoint of its 2025 Adjusted EBITDA guidance by $50 million to $7.75 billion within the range of between $7.6 billion and $7.9 billion. The company continues to expect 2025 growth capex to between $2.575 billion and $2.875 billion and maintenance capex remains between $650 million and $750 million, excluding capital of $150 million for emissions reduction and modernization initiatives. Williams expects its leverage ratio midpoint for 2025 to be 3.65x and has increased the dividend by 5.3% on an annualized basis to $2.00 in 2025 from $1.90 in 2024.
Williams' Second-Quarter 2025 Materials to be Posted Shortly; Q&A Webcast Scheduled for Tomorrow
Williams' second-quarter 2025 earnings presentation will be posted at www.williams.com . The company's second-quarter 2025 earnings conference call and webcast with analysts and investors is scheduled for Tuesday, Aug. 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/BI0c7d8b43d5744aa5bfbc571f1e145173
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) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended
June 30, | | Six Months Ended June 30, | | | | | | | | | | | | | | | | | 2025 | | | | 2024 | | | | 2025 | | | | 2024 | | | | | (Millions, except per-share amounts) | | | | | | | | | | | | | | | | Revenues: | | | | | | | | | | | | | | | | | | Service revenues | | $ | 2,041 | | | $ | 1,837 | | | $ | 4,044 | | | $ | 3,742 | | | Service revenues – commodity consideration | | | 47 | | | | 18 | | | | 96 | | | | 48 | | | Product sales | | | 657 | | | | 610 | | | | 1,715 | | | | 1,455 | | | Net gain (loss) from commodity derivatives | | | 36 | | | | (129 | ) | | | (26 | ) | | | (138 | ) | | Total revenues | | | 2,781 | | | | 2,336 | | | | 5,829 | | | | 5,107 | | | Costs and expenses: | | | | | | | | | | | | | | | | | | Product costs | | | 474 | | | | 424 | | | | 1,089 | | | | 950 | | | Net processing commodity expenses | | | 4 | | | | 17 | | | | 32 | | | | 22 | | | Operating and maintenance expenses | | | 572 | | | | 522 | | | | 1,114 | | | | 1,033 | | | Depreciation, depletion, and amortization expenses | | | 605 | | | | 540 | | | | 1,190 | | | | 1,088 | | | Selling, general, and administrative expenses | | | 168 | | | | 164 | | | | 362 | | | | 350 | | | Other (income) expense – net | | | 13 | | | | (27 | ) | | | 3 | | | | (44 | ) | | Total costs and expenses | | | 1,836 | | | | 1,640 | | | | 3,790 | | | | 3,399 | | | Operating income (loss) | | | 945 | | | | 696 | | | | 2,039 | | | | 1,708 | | | Equity earnings (losses) | | | 142 | | | | 147 | | | | 297 | | | | 284 | | | Other investing income (loss) – net | | | 4 | | | | 18 | | | | 12 | | | | 42 | | | Interest expense | | | (350 | ) | | | (339 | ) | | | (699 | ) | | | (688 | ) | | Other income (expense) – net | | | 16 | | | | 33 | | | | 30 | | | | 64 | | | Income (loss) before income taxes | | | 757 | | | | 555 | | | | 1,679 | | | | 1,410 | | | Less: Provision (benefit) for income taxes | | | 174 | | | | 129 | | | | 367 | | | | 322 | | | Net income (loss) | | | 583 | | | | 426 | | | | 1,312 | | | | 1,088 | | | Less: Net income (loss) attributable to noncontrolling interests | | | 37 | | | | 25 | | | | 75 | | | | 55 | | | Net income (loss) attributable to The Williams Companies, Inc. | | | 546 | | | | 401 | | | | 1,237 | | | | 1,033 | | | Less: Preferred stock dividends | | | — | | | | — | | | | 1 | | | | 1 | | | Net income (loss) available to common stockholders | | $ | 546 | | | $ | 401 | | | $ | 1,236 | | | $ | 1,032 | | | Basic earnings (loss) per common share: | | | | | | | | | | | | | | | | | | Net income (loss) available to common stockholders | | $ | .45 | | | $ | .33 | | | $ | 1.01 | | | $ | .85 | | | Weighted-average shares (thousands) | | | 1,221,650 | | | | 1,219,367 | | | | 1,221,158 | | | | 1,218,761 | | | Diluted earnings (loss) per common share: | | | | | | | | | | | | | | | | | | Net income (loss) available to common stockholders | | $ | .45 | | | $ | .33 | | | $ | 1.01 | | | $ | .84 | | | Weighted-average shares (thousands) | | | 1,224,284 | | | | 1,222,236 | | | | 1,224,462 | | | | 1,222,229 | |
| The Williams Companies, Inc.
Consolidated Balance Sheet
(Unaudited) | | | | | | | | | | | | | | | | | | | | | | June 30, | | December 31, | | | | | | | | | 2025 | | | | 2024 | | | | | (Millions, except per-share amounts) | | | | | | | | ASSETS | | | | | | | | | | Current assets: | | | | | | | | | | Cash and cash equivalents | | $ | 903 | | | $ | 60 | | | Trade accounts and other receivables (net of allowance of ($1) at June 30, 2025 and December 31, 2024) | | | 1,563 | | | | 1,863 | | | Inventories | | | 335 | | | | 279 | | | Derivative assets | | | 202 | | | | 267 | | | Other current assets and deferred charges | | | 218 | | | | 192 | | | Total current assets | | | 3,221 | | | | 2,661 | | | Investments | | | 4,209 | | | | 4,140 | | | Property, plant, and equipment | | | 59,391 | | | | 57,395 | | | Accumulated depreciation, depletion, and amortization | | | (19,618 | ) | | | (18,703 | ) | | Property, plant, and equipment – net | | | 39,773 | | | | 38,692 | | | Intangible assets – net | | | 7,100 | | | | 7,209 | | | Regulatory assets, deferred charges, and other | | | 1,838 | | | | 1,830 | | | Total assets | | $ | 56,141 | | | $ | 54,532 | | | | | | | | | | | | | LIABILITIES AND EQUITY | | | | | | | | | | Current liabilities: | | | | | | | | | | Accounts payable | | $ | 1,414 | | | $ | 1,613 | | | Derivative liabilities | | | 108 | | | | 164 | | | Other current liabilities | | | 1,521 | | | | 1,360 | | | Commercial paper | | | — | | | | 455 | | | Long-term debt due within one year | | | 2,969 | | | | 1,720 | | | Total current liabilities | | | 6,012 | | | | 5,312 | | | Long-term debt | | | 25,603 | | | | 24,736 | | | Deferred income tax liabilities | | | 4,563 | | | | 4,376 | | | Regulatory liabilities, deferred income, and other | | | 5,158 | | | | 5,268 | | | Contingent liabilities and commitments | | | | | | | | | | | | | | | | | | | | Equity: | | | | | | | | | | Stockholders’ equity: | | | | | | | | | | Preferred stock ($1 par value; 30 million shares authorized at June 30, 2025 and December 31, 2024; 35 thousand shares issued at June 30, 2025 and December 31, 2024) | | | 35 | | | | 35 | | | Common stock ($1 par value; 1,470 million shares authorized at June 30, 2025 and December 31, 2024; 1,260 million shares issued at June 30, 2025 and 1,258 million shares issued at December 31, 2024) | | | 1,260 | | | | 1,258 | | | Capital in excess of par value | | | 24,633 | | | | 24,643 | | | Retained deficit | | | (12,387 | ) | | | (12,396 | ) | | Accumulated other comprehensive income (loss) | | | 77 | | | | 76 | | | Treasury stock, at cost (39 million shares at June 30, 2025 and December 31, 2024 of common stock) | | | (1,180 | ) | | | (1,180 | ) | | Total stockholders’ equity | | | 12,438 | | | | 12,436 | | | Noncontrolling interests in consolidated subsidiaries | | | 2,367 | | | | 2,404 | | | Total equity | | | 14,805 | | | | 14,840 | | | Total liabilities and equity | | $ | 56,141 | | | $ | 54,532 | |