Financial Data and Key Metrics Changes - The company increased its 2025 adjusted EBITDA guidance midpoint by $50 million to $7.75 billion, representing a cumulative increase of $350 million since the original guidance was set in 2024 [11][17] - Adjusted EBITDA for Q2 2025 was $1.808 billion, an 8% increase from $1.667 billion in Q2 2024 [13][16] - The transmission and Gulf business improved by $91 million or 11%, setting an all-time record due to higher revenues from expansion projects [13][14] Business Line Data and Key Metrics Changes - The Gulf gathering volumes increased over 17% year-over-year, and NGL production rose about 77% [14] - The Northeast Gathering and Processing business improved by $22 million or 5%, primarily due to higher revenues [15] - The West segment also saw a $22 million or 7% increase, driven by higher Haynesville volumes and growth in the DJ Basin [15] Market Data and Key Metrics Changes - The company set an all-time record for summer demand on Transco, delivering 16.1 Bcf of natural gas on July 29, 2025 [6] - The company noted that nine of the ten highest peak summer days occurred this summer, despite it being 4.2% cooler than the previous year [6] Company Strategy and Development Direction - The company is focused on expanding its natural gas infrastructure to meet growing demand, emphasizing the importance of natural gas as a reliable and affordable energy source [21][23] - The strategy includes investing in projects that connect to robust demand from LNG exports, power demand, and industrial demand [52] - The company is optimistic about the growth potential from its backlog of fully contracted projects extending beyond 2030 [21][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to exceed historical growth rates, citing a stronger balance sheet and favorable tailwinds [28] - The management highlighted the need for energy infrastructure to support the growing demand for natural gas, particularly in light of rising utility bills and energy reliability concerns [21][66] - The company is actively pursuing permitting reform to enhance infrastructure development efficiency [78][108] Other Important Information - The company completed six major projects in the past quarter, including the Southeast Energy Connector and the Texas to Louisiana Energy Pathway [7][8] - The company is positioned to benefit from the growing wave of natural gas demand, with a focus on infrastructure that supports cleaner energy [21][23] Q&A Session Summary Question: Is there an upward bias to the 5% to 7% EBITDA CAGR guidance? - Management indicated that there are no significant headwinds and the company is positioned to exceed historical growth rates, with more details expected in early 2026 [26][28] Question: Update on long lead time equipment for additional projects? - Management expects to deliver commercial agreements for the next projects in the second half of the year, with potential capacity of up to a gigawatt by 2027 [30][32] Question: FIDs on pipeline side for the back half of 2025? - Management noted ongoing opportunities across various regions, including the Pacific Northwest, with a focus on meeting growing demand [38][40] Question: Update on Rockies Columbia Connector project? - Management highlighted strong interest in the project, driven by increased demand for natural gas in the Pacific Northwest [99][100] Question: Impact of steel tariffs on CapEx? - Management stated that steel costs could have a minor impact on total project costs, but strategic sourcing is in place to manage variability [75][76] Question: LNG infrastructure build-out and storage opportunities? - Management sees significant growth in LNG demand, which will drive additional projects and storage opportunities in the future [81][85]

Financial Performance - Adjusted EBITDA for Q2 2025 reached $1808 million, an 8% increase compared to $1667 million in Q2 2024[7] - Adjusted Earnings per Share increased by 7% from $043 in Q2 2024 to $046 in Q2 2025[21] - Available Funds From Operations increased by 5% from $1250 million to $1317 million[21] - The company increased Adjusted EBITDA guidance by $50 million, now targeting $775 billion at the midpoint[3] - The company anticipates 9% CAGR Adjusted EBITDA growth from 2020 to 2025G, reaching $76 - $79 billion[12] Strategic Initiatives & Growth Projects - Williams completed 6 projects recently, enhancing transmission and earnings in the Gulf and West regions[3] - A precedent agreement was signed for Transco's Northeast Supply Enhancement[3] - Williams acquired Saber Midstream in the Haynesville, expanding its footprint[3] - The company's 2025 Adjusted EBITDA guidance has increased cumulatively by $350 million since the original issuance[14] Sustainability - The 2024 Sustainability Report was published, highlighting industry-leading performance[4] - The company is targeting a 30% reduction in carbon intensity from 2018 levels by 2028[101]

Williams Companies (WMB -0.02%), a leading energy infrastructure firm specializing in natural gas transportation and processing, reported results for Q2 2025 on August 4, 2025. The headline news was a strong GAAP revenue increase to $2.78 billion, beating the analyst consensus of $2.73 billion, but non-GAAP earnings per share (EPS) of $0.46 missed expectations by $0.02. Compared to Q2 2024, revenue and GAAP EPS posted sizable gains, but rising operating costs nudged margins and EPS below forecast. Overall, ...

Williams Companies, Inc. (The) (WMB) reported $2.78 billion in revenue for the quarter ended June 2025, representing a year-over-year increase of 19.1%. EPS of $0.46 for the same period compares to $0.43 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $3.06 billion, representing a surprise of -9.07%. The company delivered an EPS surprise of -6.12%, with the consensus EPS estimate being $0.49. While investors closely watch year-over-year changes in headline numbers -- revenue and ...

Company Performance - Williams Companies reported quarterly earnings of $0.46 per share, missing the Zacks Consensus Estimate of $0.49 per share, but showing an increase from $0.43 per share a year ago, resulting in an earnings surprise of -6.12% [1] - The company posted revenues of $2.78 billion for the quarter ended June 2025, missing the Zacks Consensus Estimate by 9.07%, compared to $2.34 billion in the same quarter last year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates three times, but has only topped consensus revenue estimates once [2] Stock Performance - Williams Companies shares have increased approximately 11.4% since the beginning of the year, outperforming the S&P 500's gain of 6.1% [3] - The current consensus EPS estimate for the upcoming quarter is $0.51 on revenues of $3.18 billion, and for the current fiscal year, it is $2.10 on revenues of $12.59 billion [7] Industry Outlook - The Oil and Gas - Production and Pipelines industry is currently ranked in the top 24% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]

[Part I. Financial Information](index=8&type=section&id=Part%20I.%20Financial%20Information) [Financial Statements](index=8&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited interim consolidated financial statements for Williams, Transco, and NWP, including income, balance sheets, cash flows, and combined notes [The Williams Companies, Inc. Financial Statements](index=9&type=section&id=The%20Williams%20Companies%2C%20Inc.%20Financial%20Statements) Williams reported increased net income and operating cash flow for the six months ended June 30, 2025, with total assets growing to **$56.1 billion** The Williams Companies, Inc. - Consolidated Statement of Income Highlights (Six Months Ended June 30) | Metric | 2025 (Millions) | 2024 (Millions) | Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | $5,829 | $5,107 | +14.1% | | **Operating Income** | $2,039 | $1,708 | +19.4% | | **Net Income Attributable to Williams** | $1,237 | $1,033 | +19.7% | | **Diluted EPS** | $1.01 | $0.84 | +20.2% | The Williams Companies, Inc. - Consolidated Balance Sheet Highlights | Metric | June 30, 2025 (Millions) | Dec 31, 2024 (Millions) | | :--- | :--- | :--- | | **Total Current Assets** | $3,221 | $2,661 | | **Property, Plant, and Equipment – net** | $39,773 | $38,692 | | **Total Assets** | $56,141 | $54,532 | | **Total Current Liabilities** | $6,012 | $5,312 | | **Long-term Debt** | $25,603 | $24,736 | | **Total Equity** | $14,805 | $14,840 | The Williams Companies, Inc. - Consolidated Statement of Cash Flows Highlights (Six Months Ended June 30) | Metric | 2025 (Millions) | 2024 (Millions) | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $2,883 | $2,513 | | **Net Cash used by Investing Activities** | $(2,194) | $(3,056) | | **Net Cash from (used by) Financing Activities** | $154 | $(1,552) | | **Increase (Decrease) in Cash** | $843 | $(2,095) | [Transcontinental Gas Pipe Line Company, LLC (Transco) Financial Statements](index=15&type=section&id=Transcontinental%20Gas%20Pipe%20Line%20Company%2C%20LLC%20%28Transco%29%20Financial%20Statements) Transco's net income decreased for the six months ended June 30, 2025, despite increased revenues, primarily due to higher expenses Transco - Statement of Net Income Highlights (Six Months Ended June 30) | Metric | 2025 (Millions) | 2024 (Millions) | Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | $1,561 | $1,442 | +8.3% | | **Operating Income** | $769 | $758 | +1.4% | | **Net Income** | $635 | $677 | -6.2% | Transco - Balance Sheet Highlights | Metric | June 30, 2025 (Millions) | Dec 31, 2024 (Millions) | | :--- | :--- | :--- | | **Total Assets** | $15,998 | $15,931 | | **Long-term Debt (incl. current)** | $5,221 | $5,235 | | **Total Member's Equity** | $8,334 | $8,305 | - Transco distributed **$606 million** to its parent company in the first six months of 2025, compared to **$650 million** in the same period of 2024[52](index=52&type=chunk) [Northwest Pipeline LLC (NWP) Financial Statements](index=19&type=section&id=Northwest%20Pipeline%20LLC%20%28NWP%29%20Financial%20Statements) NWP's net income decreased to **$91 million** for the six months ended June 30, 2025, primarily due to increased expenses, with revenues remaining flat NWP - Statement of Net Income Highlights (Six Months Ended June 30) | Metric | 2025 (Millions) | 2024 (Millions) | Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | $224 | $222 | +0.9% | | **Operating Income** | $98 | $101 | -3.0% | | **Net Income** | $91 | $96 | -5.2% | NWP - Balance Sheet Highlights | Metric | June 30, 2025 (Millions) | Dec 31, 2024 (Millions) | | :--- | :--- | :--- | | **Total Assets** | $2,386 | $2,269 | | **Long-term Debt (incl. current)** | $583 | $582 | | **Total Member's Equity** | $1,321 | $1,163 | - NWP received capital contributions of **$131 million** from its parent company in the first six months of 2025, with cash distributions to the parent decreasing to **$64 million** from **$76 million**[62](index=62&type=chunk) [Combined Notes to Financial Statements](index=23&type=section&id=Combined%20Notes%20to%20Financial%20Statements) This section provides detailed disclosures supporting the financial statements for Williams, Transco, and NWP, covering business segments, acquisitions, debt, and legal contingencies - Williams' operations are presented in four reportable segments: Transmission & Gulf of America, Northeast G&P, West, and Gas & NGL Marketing Services[71](index=71&type=chunk) - Key acquisitions in 2024 include the Gulf Coast Storage Acquisition for **$1.95 billion**, the remaining **40%** of Discovery for **$170 million**, and the Crowheart Acquisition for **$307 million**[88](index=88&type=chunk)[93](index=93&type=chunk)[99](index=99&type=chunk) - As of June 30, 2025, Williams has remaining performance obligations of approximately **$32.1 billion**, primarily from long-term transportation and storage contracts[128](index=128&type=chunk) - In 2025, Williams issued **$3 billion** in senior unsecured public debt and retired **$750 million**, while maintaining a **$3.75 billion** credit facility expiring in October 2028[132](index=132&type=chunk)[133](index=133&type=chunk)[134](index=134&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=53&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial condition, results of operations, and outlook, highlighting increased net income and outlining the 2025 capital plan [Company Outlook](index=56&type=section&id=Company%20Outlook) Williams anticipates continued earnings and cash flow growth in 2025, driven by expansion projects, with significant capital expenditures planned - The company's 2025 operating results are expected to benefit from growth in the Transmission & Gulf of America segment, the Transco rate case, and higher gathering and processing results in the DJ Basin and the Northeast[217](index=217&type=chunk) - Growth capital and investment expenditures for 2025 are expected to range from **$2.575 billion** to **$2.875 billion**, excluding acquisitions[218](index=218&type=chunk) - Major ongoing expansion projects include the Southeast Supply Enhancement (**1,597 Mdth/d**), Northeast Supply Enhancement (**400 Mdth/d**), and the Socrates Power Innovation project (**400 megawatts**)[223](index=223&type=chunk)[226](index=226&type=chunk)[235](index=235&type=chunk) [Results of Operations](index=60&type=section&id=Results%20of%20Operations) This section analyzes consolidated and segment-level operating results, showing Williams' increased net income and varied performance across its segments Williams Consolidated Results (Six Months Ended June 30) | Metric | 2025 (Millions) | 2024 (Millions) | Change | | :--- | :--- | :--- | :--- | | **Service Revenues** | $4,044 | $3,742 | +8% | | **Operating Income** | $2,039 | $1,708 | +19% | | **Net Income Attributable to Williams** | $1,237 | $1,033 | +20% | Williams Modified EBITDA by Segment (Six Months Ended June 30) | Segment | 2025 (Millions) | 2024 (Millions) | Change | | :--- | :--- | :--- | :--- | | **Transmission & Gulf of America** | $1,749 | $1,637 | +6.8% | | **Northeast G&P** | $1,015 | $985 | +3.0% | | **West** | $695 | $645 | +7.8% | | **Gas & NGL Marketing Services** | $122 | $(25) | NM | - Transco's net income for the first six months of 2025 decreased by **$42 million** to **$635 million**, primarily due to a **$50 million** increase in depreciation and amortization expenses and a **$35 million** decrease in AFUDC[291](index=291&type=chunk) - NWP's net income for the first six months of 2025 decreased by **$5 million** to **$91 million**, mainly due to a **$5 million** increase in depreciation and amortization expenses from new assets placed in service[301](index=301&type=chunk) [Financial Condition and Liquidity](index=75&type=section&id=Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Liquidity) Management asserts sufficient liquidity for 2025, with **$4.653 billion** available, investment-grade credit ratings, and an increased quarterly dividend Available Liquidity as of June 30, 2025 | Source | Amount (Millions) | | :--- | :--- | | Cash and cash equivalents | $903 | | Available Credit Facility | $3,750 | | **Total Available Liquidity** | **$4,653** | - Williams has approximately **$3.0 billion** of long-term debt maturing within one year as of June 30, 2025[308](index=308&type=chunk) Credit Ratings | Rating Agency | Outlook | Senior Unsecured Debt Rating | | :--- | :--- | :--- | | S&P Global Ratings | Stable | BBB+ | | Moody's Investors Service | Positive | Baa2 | | Fitch Ratings | Positive | BBB | - The regular quarterly cash dividend was increased from **$0.475 per share** in 2024 to **$0.50 per share** in March and June 2025[312](index=312&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=78&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section details the company's exposure to market risks, primarily interest rate and commodity price risks, managed through fixed-rate debt and derivative instruments - The company's debt portfolio is primarily comprised of fixed-rate debt, which mitigates the impact of interest rate fluctuations[320](index=320&type=chunk) - Williams is exposed to commodity price risk through its natural gas and NGL marketing, upstream business, and certain gathering and processing contracts, which it manages with derivative instruments[321](index=321&type=chunk)[322](index=322&type=chunk) Value at Risk (VaR) as of June 30, 2025 | Portfolio | VaR (Millions) | | :--- | :--- | | **Integrated Natural Gas Trading** | $8 | | **Non-Trading (Hedging)** | $9 | [Controls and Procedures](index=80&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures for Williams, Transco, and NWP were effective as of June 30, 2025, with no material changes to internal controls - Management for Williams, Transco, and NWP concluded that their respective disclosure controls and procedures were effective at a reasonable assurance level as of the end of the period[330](index=330&type=chunk)[334](index=334&type=chunk)[337](index=337&type=chunk) - No changes in internal control over financial reporting occurred during the second quarter of 2025 that have materially affected or are reasonably likely to materially affect internal controls for Williams, Transco, or NWP[332](index=332&type=chunk)[335](index=335&type=chunk)[338](index=338&type=chunk) - Williams excluded the internal controls of recently acquired Rimrock and Crowheart from the scope of its assessment, as permitted by SEC guidance for recent business combinations[331](index=331&type=chunk) [Part II. Other Information](index=81&type=section&id=Part%20II.%20Other%20Information) [Legal Proceedings](index=81&type=section&id=Item%201.%20Legal%20Proceedings) This section details the company's involvement in various legal proceedings, including royalty underpayment and environmental matters, as referenced in Note 10 - The company is involved in various legal proceedings, including royalty underpayment lawsuits and environmental matters, which are detailed in Note 10 of the financial statements[340](index=340&type=chunk)[341](index=341&type=chunk)[342](index=342&type=chunk) - Williams' disclosure threshold for material environmental legal proceedings involving potential monetary sanctions by a governmental authority is **$1 million**[340](index=340&type=chunk) [Risk Factors](index=82&type=section&id=Item%201A.%20Risk%20Factors) The company reports no material changes to the risk factors previously disclosed in its Annual Report on Form 10-K for the year ended December 31, 2024 - There have been no material changes to the risk factors disclosed in the company's 2024 Annual Report on Form 10-K[343](index=343&type=chunk) [Issuer Purchases of Equity Securities](index=82&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Williams reports no share repurchases during Q2 2025, with approximately **$1.36 billion** remaining available under its authorized program - Williams did not repurchase any of its equity securities during the three months ended June 30, 2025[344](index=344&type=chunk) - As of June 30, 2025, approximately **$1.36 billion** remains available for repurchases under the company's authorized share repurchase program[344](index=344&type=chunk) [Other Information](index=82&type=section&id=Item%205.%20Other%20Information) The company reports no director or officer adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q2 2025 - No director or officer of Williams adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the second quarter of 2025[345](index=345&type=chunk) [Exhibits](index=83&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q for Williams, Transco, and NWP, including CEO/CFO certifications and interactive data files - The exhibits filed include CEO and CFO certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act[347](index=347&type=chunk)[351](index=351&type=chunk)[355](index=355&type=chunk) - Interactive Data Files (XBRL documents) are also included as exhibits for Williams, Transco, and NWP[347](index=347&type=chunk)[351](index=351&type=chunk)[355](index=355&type=chunk)

Financial Performance Overview This section provides a comprehensive overview of Williams' strong financial results and key operational achievements for the second quarter and first half of 2025 [Second-Quarter 2025 Highlights](index=1&type=section&id=Second-Quarter%202025%20Highlights) Williams reported strong Q2 2025 results with an **8% Adjusted EBITDA increase** to **$1.808 billion**, raising full-year guidance and achieving key operational milestones Q2 2025 Key Financial Metrics vs. Q2 2024 | Metric | Q2 2025 | Change vs. Q2 2024 | | :--- | :--- | :--- | | GAAP Net Income ($ million) | $546 | +$145 | | Adjusted Net Income ($ million) | $566 | +9% | | Adjusted EPS ($) | $0.46 | +7% | | Adjusted EBITDA ($ billion) | $1.808 | +8% | | Cash Flow from Operations (CFFO) ($ billion) | $1.45 | +13% | | Available Funds from Operations (AFFO) ($ billion) | $1.317 | +5% | | Dividend Coverage Ratio (x) | 2.16x | Unchanged | - The company raised its full-year 2025 Adjusted EBITDA guidance midpoint by **$50 million** to **$7.75 billion**[5](index=5&type=chunk)[6](index=6&type=chunk) - Key operational milestones include placing Transco's Texas to Louisiana Energy Pathway and Southeast Energy Connector projects into service, acquiring Saber Midstream, breaking ground on the **$1.6 billion** Socrates Power Innovation project, and placing deepwater Ballymore and Shenandoah expansions in-service[5](index=5&type=chunk) [CEO Perspective](index=1&type=section&id=CEO%20Perspective) CEO Chad Zamarin attributed strong performance to Transco expansions, new Gulf volumes, and higher gathering and processing volumes, citing recent acquisitions and project completions as drivers for increased full-year guidance - Adjusted EBITDA growth of **8%** was primarily driven by Transco expansions, new volumes in the Gulf, and higher volumes in the Northeast and West gathering and processing segments[4](index=4&type=chunk) - The company raised its 2025 Adjusted EBITDA guidance midpoint by another **$50 million** to **$7.75 billion**, marking a total increase of **$350 million** from the original 2025 guidance[6](index=6&type=chunk) - Six projects were recently completed, including the Texas to Louisiana Energy Pathway, Louisiana Energy Gateway, and the Shenandoah deepwater project[7](index=7&type=chunk) [Consolidated Financial Results](index=2&type=section&id=Williams%20Summary%20Financial%20Information) The company demonstrated broad financial strength in Q2 and H1 2025, with GAAP Net Income rising to **$546 million** and Adjusted EBITDA increasing to **$1.808 billion**, while maintaining a stable leverage ratio Financial Summary (in millions, except per-share amounts) | Metric | 2Q 2025 | 2Q 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **GAAP Measures** | | | | | | Net Income ($ million) | $546 | $401 | $1,236 | $1,032 | | Net Income Per Share ($) | $0.45 | $0.33 | $1.01 | $0.84 | | Cash Flow From Operations ($ million) | $1,450 | $1,279 | $2,883 | $2,513 | | **Non-GAAP Measures** | | | | | | Adjusted EBITDA ($ million) | $1,808 | $1,667 | $3,797 | $3,601 | | Adjusted Net Income ($ million) | $566 | $521 | $1,296 | $1,240 | | Adjusted EPS ($) | $0.46 | $0.43 | $1.06 | $1.01 | | AFFO ($ million) | $1,317 | $1,250 | $2,762 | $2,757 | Analysis of Financial Results This section provides a detailed analysis of Williams' GAAP and non-GAAP financial performance, highlighting key drivers of income and cash flow changes [GAAP Measures Analysis](index=2&type=section&id=GAAP%20Measures) GAAP net income increased by **$145 million** in Q2 2025 and **$204 million** year-to-date, driven by higher service revenues and favorable derivative changes, partially offset by increased costs - Q2 and YTD 2025 net income growth was driven by higher service revenues (**$204 million** and **$302 million**, respectively) and favorable changes in net unrealized gains/losses on commodity derivatives (**$167 million** and **$227 million**, respectively)[8](index=8&type=chunk) - These positive impacts were partially offset by higher depreciation expense, increased operating costs, and lower equity AFUDC from capital projects[8](index=8&type=chunk) - Cash flow from operations increased in Q2 and YTD 2025 primarily due to favorable changes to derivative collateral requirements and higher operating results (excluding non-cash items)[9](index=9&type=chunk) [Non-GAAP Measures Analysis](index=3&type=section&id=Non-GAAP%20Measures) Non-GAAP Adjusted EBITDA rose by **$141 million** in Q2 2025 and **$196 million** year-to-date, driven by higher service revenues and upstream operations, leading to improved Adjusted Net Income and AFFO - Q2 2025 Adjusted EBITDA increased by **$141 million** YoY, driven by higher service revenues, partially offset by higher operating costs and lower equity AFUDC[10](index=10&type=chunk) - Q2 2025 Adjusted Net Income improved by **$45 million** YoY, primarily by removing the effects of net unrealized gains/losses on commodity derivatives from the GAAP results[11](index=11&type=chunk) - Q2 2025 AFFO increased by **$67 million** YoY, mainly due to higher results from operations (excluding non-cash items) and increased distributions from equity-method investees[12](index=12&type=chunk) Business Segment Performance This section details the financial performance of Williams' key business segments, highlighting contributions to overall Adjusted EBITDA growth [Segment Performance Summary](index=3&type=section&id=Segment%20Performance%20Summary) All business segments contributed positively in Q2 2025, with Transmission & Gulf of America leading growth by **$91 million** in Adjusted EBITDA, and Northeast G&P and West segments also showing solid gains Adjusted EBITDA by Segment (in millions) | Segment | Q2 2025 ($ million) | Q2 2024 ($ million) | Change ($ million) | YTD 2025 ($ million) | YTD 2024 ($ million) | Change ($ million) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Transmission & Gulf of America | $903 | $812 | $91 | $1,765 | $1,651 | $114 | | Northeast G&P | $501 | $479 | $22 | $1,015 | $983 | $32 | | West | $341 | $319 | $22 | $695 | $647 | $48 | | Gas & NGL Marketing Services | ($15) | ($14) | ($1) | $140 | $175 | ($35) | | Other | $78 | $71 | $7 | $182 | $145 | $37 | | **Total Adjusted EBITDA** | **$1,808** | **$1,667** | **$141** | **$3,797** | **$3,601** | **$196** | [Transmission & Gulf of America](index=3&type=section&id=Transmission%20%26%20Gulf%20of%20America) The Transmission & Gulf of America segment's Adjusted EBITDA improved by **$91 million** in Q2 2025, driven by new Transco expansion projects and additional Gulf of Mexico volumes - Both Modified and Adjusted EBITDA improved in Q2 and YTD 2025 due to Transco expansion projects and new Gulf volumes, partially offset by lower equity AFUDC[15](index=15&type=chunk) [Northeast G&P](index=4&type=section&id=Northeast%20G%26P) The Northeast G&P segment's Adjusted EBITDA increased by **$22 million** in Q2 2025, driven by higher gathering and processing volumes at Ohio Valley Midstream, Cardinal, and Bradford - Q2 2025 Adjusted EBITDA increased due to higher gathering and processing volumes at Ohio Valley Midstream, Cardinal, and Bradford[16](index=16&type=chunk) [West](index=4&type=section&id=West) The West segment's Adjusted EBITDA grew by **$22 million** in Q2 2025, driven by higher Haynesville volumes and contributions from recent acquisitions, offsetting lower Eagle Ford MVC revenues - Q2 2025 Adjusted EBITDA increased due to higher Haynesville volumes and contributions from the 2025 Rimrock and Saber acquisitions, partially offset by lower MVC revenues in the Eagle Ford[17](index=17&type=chunk) [Gas & NGL Marketing Services](index=4&type=section&id=Gas%20%26%20NGL%20Marketing%20Services) The Gas & NGL Marketing Services segment's Modified EBITDA increased significantly due to a **$102 million** favorable change in unrealized derivative gains, though Adjusted EBITDA remained relatively flat - Q2 2025 Modified EBITDA increased due to a **$102 million** favorable change in unrealized gains/losses on commodity derivatives; these are excluded from Adjusted EBITDA[18](index=18&type=chunk) [Other](index=4&type=section&id=Other) The 'Other' segment's year-to-date Modified EBITDA increased, reflecting improved realized results from upstream operations, including contributions from the Q4 2024 Crowheart acquisition - The increase in year-to-date 2025 Modified EBITDA reflects improved realized results from upstream operations, including contributions from the Q4 2024 Crowheart acquisition[19](index=19&type=chunk) 2025 Financial Guidance This section outlines Williams' updated full-year 2025 financial outlook, including revised Adjusted EBITDA guidance and capital expenditure forecasts [Updated Full-Year 2025 Outlook](index=4&type=section&id=Updated%20Full-Year%202025%20Outlook) Williams raised its full-year 2025 Adjusted EBITDA guidance midpoint by **$50 million** to **$7.75 billion**, while maintaining capital expenditure forecasts and a **3.65x** leverage ratio midpoint 2025 Full-Year Guidance | Metric | Guidance Range / Midpoint | | :--- | :--- | | Adjusted EBITDA ($ billion) | $7.6B - $7.9B (Midpoint: $7.75B) | | Growth Capex ($ billion) | $2.575B - $2.875B | | Maintenance Capex ($ million) | $650M - $750M | | Leverage Ratio Midpoint (x) | 3.65x | | Annualized Dividend ($ per share) | $2.00 per share (+5.3% vs 2024) | Consolidated Financial Statements This section presents Williams' key consolidated financial statements, including the Statement of Income, Balance Sheet, and Statement of Cash Flows [Consolidated Statement of Income](index=5&type=section&id=Consolidated%20Statement%20of%20Income) The Consolidated Statement of Income shows total revenues increasing to **$2.781 billion** in Q2 2025, with net income attributable to Williams rising to **$546 million** and diluted EPS at **$0.45** Key Income Statement Data (in millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total Revenues ($ million) | $2,781 | $2,336 | | Operating Income ($ million) | $945 | $696 | | Net Income Attributable to Williams ($ million) | $546 | $401 | [Consolidated Balance Sheet](index=6&type=section&id=Consolidated%20Balance%20Sheet) The Consolidated Balance Sheet as of June 30, 2025, shows total assets of **$56.141 billion**, with long-term debt at **$25.603 billion** and total equity at **$14.805 billion** Key Balance Sheet Data (in millions) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Current Assets ($ million) | $3,221 | $2,661 | | Property, Plant, and Equipment – net ($ million) | $39,773 | $38,692 | | **Total Assets ($ million)** | **$56,141** | **$54,532** | | Total Current Liabilities ($ million) | $6,012 | $5,312 | | Long-term Debt ($ million) | $25,603 | $24,736 | | **Total Liabilities ($ million)** | **$41,336** | **$39,692** | | **Total Equity ($ million)** | **$14,805** | **$14,840** | [Consolidated Statement of Cash Flows](index=7&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) For H1 2025, net cash from operating activities was **$2.883 billion**, with **$2.194 billion** used in investing activities and **$154 million** provided by financing activities, marking a significant shift from the prior year Cash Flow Summary - Six Months Ended June 30 (in millions) | Activity | 2025 ($ million) | 2024 ($ million) | | :--- | :--- | :--- | | Net Cash from Operating Activities | $2,883 | $2,513 | | Net Cash from Investing Activities | ($2,194) | ($3,056) | | Net Cash from Financing Activities | $154 | ($1,552) | | **Increase (Decrease) in Cash ($ million)** | **$843** | **($2,095)** | Supplemental Information This section provides additional details on capital expenditures, non-GAAP reconciliations, and important forward-looking statements [Capital Expenditures and Investments](index=13&type=section&id=Capital%20Expenditures%20and%20Investments) Total capital expenditures for H1 2025 were **$1.984 billion**, with Transmission & Gulf of America and West segments accounting for the largest portions at **$959 million** and **$823 million**, respectively YTD 2025 Capital Expenditures by Segment (in millions) | Segment | YTD 2025 Capex ($ million) | | :--- | :--- | | Transmission & Gulf of America | $959 | | Northeast G&P | $101 | | West | $823 | | Gas & NGL Marketing Services | $1 | | Other | $100 | | **Total** | **$1,984** | [Non-GAAP Reconciliations](index=14&type=section&id=Non-GAAP%20Reconciliations) This section defines key non-GAAP financial measures like Modified EBITDA, Adjusted EBITDA, and AFFO, providing detailed reconciliation tables to their comparable GAAP counterparts for transparency - Defines non-GAAP measures like Modified EBITDA, Adjusted EBITDA, and AFFO, which management believes provide meaningful insight into ongoing operations and cash generation[45](index=45&type=chunk)[46](index=46&type=chunk)[47](index=47&type=chunk) - Includes detailed tables reconciling GAAP Net Income to Non-GAAP Adjusted Income and Adjusted EBITDA, and GAAP Cash Flow from Operating Activities to Non-GAAP AFFO[51](index=51&type=chunk)[53](index=53&type=chunk)[55](index=55&type=chunk) [Forward-Looking Statements](index=19&type=section&id=Forward-Looking%20Statements) This section contains a standard safe harbor statement, cautioning that forward-looking statements regarding future performance and projects are subject to numerous risks and uncertainties, with detailed risk factors referenced in SEC filings - The report contains forward-looking statements concerning anticipated financial performance, dividends, capital expenditures, and project in-service dates[58](index=58&type=chunk)[60](index=60&type=chunk) - These statements are subject to risks and uncertainties, including market volatility, regulatory changes, project execution, and macroeconomic conditions[60](index=60&type=chunk)[61](index=61&type=chunk) - Investors are cautioned not to place undue reliance on these statements and are directed to the company's Form 10-K and 10-Q filings for a detailed discussion of risk factors[61](index=61&type=chunk)[64](index=64&type=chunk)

Industry Overview - The Zacks Oil and Gas Production and Pipeline industry is crucial for meeting global energy demand driven by economic growth and rising consumption in emerging markets [1] - While the long-term energy transition favors renewables, hydrocarbons remain vital for transportation, heating, and petrochemical production [1] - Technological advancements such as horizontal drilling and enhanced oil recovery are enhancing efficiency and unlocking new reserves, contributing to the sector's resilience and profitability [1] Pipeline Infrastructure - Pipeline infrastructure is essential for the efficient transport of crude oil, natural gas, and refined products [2] - Pipeline operators benefit from stable, fee-based revenue models and long-term contracts, providing predictable cash flows and insulation from commodity price fluctuations [2] - The growth of North American shale output and expanding export capacity is expected to significantly increase demand for midstream infrastructure [2] Company Analysis: Energy Transfer (ET) - Energy Transfer has a diversified midstream infrastructure that includes natural gas, NGLs, crude oil, and refined products, supported by stable, fee-based cash flows [3] - The company has strategic access to export terminals and a disciplined capital allocation approach, positioning it well for growth amid increasing U.S. energy production and global demand [3] - ET's earnings per share (EPS) estimate for 2026 has increased by 6.12%, while its 2025 estimate reflects a decline of 2.08% [6][7] - ET trades at a forward P/E of 12.03X, indicating a relative valuation advantage over WMB [7][9] - ET's current debt-to-capital ratio is 56.43%, lower than WMB's 64.84%, suggesting better leverage management [7][13] - ET's units have gained 9.2% in the past three months, outperforming WMB's 0.7% increase [15] Company Analysis: The Williams Companies (WMB) - The Williams Companies operates over 33,000 miles of pipelines, generating stable, fee-based revenues under long-term contracts [4] - The company's focus on natural gas aligns with the energy transition, providing a lower-carbon solution while supporting power generation and LNG exports [4] - WMB's EPS estimate for 2026 has increased by 3.32%, with a decline of 3.67% projected for 2025 [8] - WMB trades at a forward P/E of 25.01X, which is significantly higher than ET's valuation [9] - WMB's ROE is 15.95%, which is below the S&P 500's ROE of 32.01% [10] Conclusion - Energy Transfer is currently favored over The Williams Companies due to its higher earnings growth estimates, lower debt usage, cheaper valuation, and better price performance [17][18]

Core Viewpoint - Analysts expect Williams Companies, Inc. (WMB) to report quarterly earnings of $0.49 per share, reflecting a 14% year-over-year increase, with revenues projected at $3.06 billion, up 30.9% from the previous year [1]. Earnings Estimates - Over the last 30 days, the consensus EPS estimate has been revised downward by 2.9%, indicating a collective reassessment by analysts [2]. - It is crucial to consider revisions to earnings projections prior to the earnings release, as they are indicative of potential investor behavior and correlate with short-term stock performance [3]. Revenue and Key Metrics Forecasts - Analysts predict 'Northeast G&P - Gathering volumes' to remain at 4 billion cubic feet per day, unchanged from the previous year [5]. - 'West - NGL equity sales' are estimated at 6.68 thousand barrels of oil per day, down from 8.00 thousand barrels per day reported last year [5]. - 'West - Gathering volumes' are expected to reach 6 billion cubic feet per day, an increase from 5 billion cubic feet per day a year ago [6]. - The consensus estimate for 'Adjusted EBITDA- West' is $339.33 million, up from $319.00 million year-over-year [6]. - 'Adjusted EBITDA- Transmission and Gulf of Mexico' is projected at $899.47 million, compared to $812.00 million last year [6]. - 'Adjusted EBITDA- Northeast G&P' is expected to be $505.64 million, up from $479.00 million in the same quarter last year [7]. - 'Adjusted EBITDA- Other' is estimated at $73.45 million, slightly up from $71.00 million reported last year [7]. - 'Modified EBITDA- Northeast G&P' is forecasted to reach $508.28 million, compared to $481.00 million in the previous year [8]. - 'Modified EBITDA- West' is expected to be $340.17 million, up from $318.00 million last year [8]. - 'Modified EBITDA- Transmission and Gulf of Mexico' is projected at $907.45 million, compared to $808.00 million a year ago [9]. Stock Performance - Shares of Williams Companies have shown a return of +0.2% over the past month, while the Zacks S&P 500 composite has increased by +2.7% [9].

Core Viewpoint - Williams Companies, Inc. (WMB) is expected to report second-quarter 2025 earnings on August 4, with earnings estimated at 49 cents per share and revenues at $3.06 billion [1] Group 1: Recent Performance - In the last reported quarter, WMB achieved adjusted earnings of 60 cents per share, exceeding the Zacks Consensus Estimate by 5 cents, driven by strong performance in its Transmission & Gulf of America, Northeast G&P, and West segments [2] - However, revenues of $3 billion fell short of the Zacks Consensus Estimate by $93 million [2] - WMB has consistently beaten the Zacks Consensus Estimate in the last four quarters, with an average surprise of 6.54% [3] Group 2: Revenue and Earnings Estimates - The Zacks Consensus Estimate for second-quarter 2025 earnings has seen no upward revisions and five downward revisions in the past 30 days, indicating a 13.95% year-over-year increase [3] - The revenue estimate of $3.06 billion reflects a 30.8% increase from $2.34 billion in the same quarter last year, attributed to growth in service revenues (up 16.1%) and product sales (up 74.6%) [5] Group 3: Market Conditions and Influences - Despite a 20.9% decline in oil prices during the quarter, WMB's results are expected to remain resilient due to minimal direct exposure to crude oil and a more than 50% increase in Henry Hub natural gas prices, which reached $3.19 per MMBtu [6][7] - This favorable environment is anticipated to drive higher throughput across WMB's gathering, processing, and transmission systems, supporting fee-based revenue growth [6] Group 4: Cost Pressures - Rising costs, including increases in product costs, net processing commodity expenses, and operating and maintenance expenses, are likely to have impacted WMB's bottom line [7][8]