Williams(US:WMB)2025-08-04 20:28Part I. Financial Information Financial Statements 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 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 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 202452 Northwest Pipeline LLC (NWP) Financial Statements 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 million62 Combined Notes to Financial Statements 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 Services71 - 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 million889399 - As of June 30, 2025, Williams has remaining performance obligations of approximately $32.1 billion, primarily from long-term transportation and storage contracts128 - 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 2028132133134 Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) Management discusses the company's financial condition, results of operations, and outlook, highlighting increased net income and outlining the 2025 capital plan Company Outlook 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 Northeast217 - Growth capital and investment expenditures for 2025 are expected to range from $2.575 billion to $2.875 billion, excluding acquisitions218 - 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)223226235 Results of Operations 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 AFUDC291 - 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 service301 Financial Condition and Liquidity 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, 2025308 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 2025312 Quantitative and Qualitative Disclosures About Market Risk 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 fluctuations320 - 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 instruments321322 Value at Risk (VaR) as of June 30, 2025 | Portfolio | VaR (Millions) | | :--- | :--- | | Integrated Natural Gas Trading | $8 | | Non-Trading (Hedging) | $9 | Controls and Procedures 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 period330334337 - 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 NWP332335338 - 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 combinations331 Part II. Other Information Legal Proceedings 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 statements340341342 - Williams' disclosure threshold for material environmental legal proceedings involving potential monetary sanctions by a governmental authority is $1 million340 Risk Factors 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-K343 Issuer Purchases of Equity Securities 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, 2025344 - As of June 30, 2025, approximately $1.36 billion remains available for repurchases under the company's authorized share repurchase program344 Other Information 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 2025345 Exhibits 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 Act347351355 - Interactive Data Files (XBRL documents) are also included as exhibits for Williams, Transco, and NWP347351355