Williams(US:WMB)2025-11-03 21:30Financial Performance - Net income attributable to The Williams Companies, Inc. for the nine months ended September 30, 2025, increased by $145 million compared to the same period in 2024[202]. - Net income attributable to The Williams Companies, Inc. for the three months ended September 30, 2025, was $647 million, a decrease of $59 million, or 8%, compared to $706 million in 2024[242]. - Operating income for the three months ended September 30, 2025, was $1,109 million, an increase of $271 million compared to $838 million in 2024[242]. - Total revenues for the nine months ended September 30, 2025, reached $8,752 million, an increase of $992 million, or 13%, compared to $7,760 million in 2024[242]. - Service revenues for the three months ended September 30, 2025, increased by $210 million, or 11%, compared to the same period in 2024, driven by expansion projects[241]. - Total revenues for the Transmission, Power & Gulf segment reached $1,392 million in Q3 2025, compared to $1,170 million in Q3 2024, a 19% increase[266]. - The company reported a $208 million increase in Transco's revenues due to expansion projects and transportation rate increases[269]. - Net income for Transco was $1,045 million, reflecting a $49 million increase or 5% growth compared to 2024[296]. - Total revenues for Transco reached $2,405 million, a $217 million increase from 2024, with natural gas transportation service revenues up by $185 million[296]. Capital Expenditures and Investments - Williams' growth capital and investment expenditures in 2025 are expected to range from $3.95 billion to $4.25 billion, excluding acquisitions[223]. - Growth capital and investment expenditures for 2025 are expected to range from $3.95 billion to $4.25 billion, focusing on Power Innovation projects and expansions in the Haynesville Shale basin[311]. - In June 2025, Williams acquired Saber for $47 million in cash and retained $113 million of Saber’s debt, which was repaid in full within the same month[313]. Expansion Projects - The Louisiana Energy Gateway expansion project is expected to increase natural gas gathering capacity by 1.8 Bcf/d[220]. - Transco's capacity increased by 105 Mdth/d with the Commonwealth Energy Connector project placed into service in November 2025[213]. - The ongoing expansion projects include the Overthrust Westbound Compression Expansion, expected to increase capacity by 325 Mdth/d[224]. - The project Power Express is expected to increase capacity by 689 Mdth/d and is planned to be placed into service as early as the third quarter of 2030[229]. - The Northeast Supply Enhancement project is expected to increase capacity by 400 Mdth/d and is planned to be placed into service as early as the fourth quarter of 2027[231]. - The Dalton Lateral II project is expected to increase capacity by up to 460 Mdth/d and is planned to be placed into service as early as the fourth quarter of 2029[232]. - Williams plans to place the Pine Prairie Phase IV Expansion project into service during the fourth quarter of 2028, increasing working gas storage capacity by 10 Bcf[225]. - The Kelso-Beaver Reliability project is expected to increase capacity by 183 Mdth/d and is planned to be placed into service during the fourth quarter of 2028[235]. - The Power Innovation project in Ohio is expected to provide a combined 400 megawatts of committed onsite power generation capacity and is planned to be placed into service in the second half of 2026[238]. Segment Performance - Service revenues for the Transmission, Power & Gulf segment increased to $1,237 million in Q3 2025 from $1,072 million in Q3 2024, representing a 15.4% increase[266]. - Modified EBITDA for the Transmission, Power & Gulf segment rose to $973 million in Q3 2025, up from $811 million in Q3 2024, reflecting a 20% increase[267]. - Northeast G&P segment service revenues increased to $499 million in Q3 2025 from $475 million in Q3 2024, a growth of 5.1%[270]. - West segment revenues increased to $712 million in Q3 2025 from $663 million in Q3 2024, marking a 7.4% increase[270]. - The Northeast G&P segment's Modified EBITDA increased to $505 million in Q3 2025 from $476 million in Q3 2024, a rise of 6.1%[271]. - The West segment's Modified EBITDA increased to $342 million in Q3 2025 from $323 million in Q3 2024, reflecting a 5.9% increase[270]. Debt and Liquidity - Williams issued $3 billion of long-term debt and retired $1.5 billion of long-term debt during the first nine months of 2025[312]. - As of September 30, 2025, Williams had a working capital deficit of $3.106 billion, with cash and cash equivalents of $70 million[317]. - Williams' long-term debt due after one year amounts to approximately $25.6 billion, with potential liquidity sources including cash generated from operations and refinancing[316]. - The quarterly cash dividend was increased from $0.475 per share in 2024 to $0.50 per share in the first three quarters of 2025[318]. Risk Management - The fair value of commodity derivative liabilities at September 30, 2025, was $(288) million, with significant amounts maturing in 2025 and 2026-2027[330]. - The Value at Risk (VaR) for Williams' integrated natural gas trading operations was $6 million as of September 30, 2025, compared to $4 million at December 31, 2024[334]. - The average VaR for the nine months ended September 30, 2025, was $8 million, with a high of $18 million and a low of $4 million[334]. - The VaR associated with Williams' non-trading portfolio, primarily consisting of commodity derivatives, was $2 million at September 30, 2025, down from $8 million at December 31, 2024[334]. - The average VaR for the non-trading portfolio for the nine months ended September 30, 2025, was $9 million, with a high of $18 million and a low of $2 million[334]. - Williams maintains a relatively small risk exposure as total buy volume is close to sell volume, resulting in minimal open natural gas price risk[334]. - Williams employs daily risk testing, utilizing both VaR and stress testing to evaluate the risk of its positions[332]. - The company's open exposure is managed according to established policies that limit market risk and require daily reporting of predicted financial loss to management[332]. - Williams generally mitigates its open exposure by managing physical gas assets and hedging in the futures markets[332]. - The VaR is calculated using parametric models with 95 percent confidence intervals and one-day holding periods[332]. - Williams actively monitors open commodity marketing positions and the resulting VaR[334].