Williams(US:WMB)2026-02-10 13:08Financial Performance - Williams reported record Adjusted EBITDA of $7.75 billion for 2025, representing a 9% increase from 2024[4]. - GAAP net income for 2025 was $2.615 billion, or $2.14 per diluted share, up 18% compared to 2024[4]. - Cash flow from operations increased by $924 million to $5.898 billion, a 19% rise from 2024[4]. - Total revenues for 2025 reached $11,950 million, a 13.8% increase from $10,503 million in 2024[28]. - Net income attributable to The Williams Companies, Inc. for 2025 was $2,615 million, up 17.7% from $2,222 million in 2024[28]. - Operating income for 2025 was $4,196 million, compared to $3,339 million in 2024, reflecting a 25.8% increase[28]. - Cash provided by operating activities in 2025 was $5,898 million, an increase from $4,974 million in 2024[33]. - The company reported a basic earnings per share of $2.14 for 2025, up from $1.82 in 2024[28]. - Net income for 2024 totaled $2,346 million, with a projected increase to $2,768 million in 2025[53]. - Modified EBITDA for 2024 was $6,656 million, expected to rise to $7,673 million in 2025[53]. - Available funds from operations (AFFO) for 2024 were $5,378 million, with a forecast of $5,858 million for 2025[54]. - The coverage ratio for AFFO to common dividends paid was 2.32 for 2024, projected to be 2.40 in 2025[54]. Capital Expenditures and Investments - Capital investments for 2025 totaled $4.294 billion, significantly up from $2.706 billion in 2024[4]. - The company anticipates a total of $5,404 million in capital expenditures for 2025, with a focus on expanding operational capabilities[44]. - The company plans to invest $3,258 million in Transmission, Power & Gulf for 2025, indicating a growth strategy in this segment[44]. - The company has identified $511 million in purchases of and contributions to equity-method investments for 2025, indicating ongoing strategic investments[44]. - The Northeast G&P segment's capital expenditures for 2024 are expected to be $211 million, a decrease from $224 million in 2023[44]. - Total capital expenditures for 2024 are projected to be $4,893 million, with a significant increase in the 1st quarter to $1,012 million[44]. Future Guidance - 2026 Adjusted EBITDA guidance is set between $8.05 billion and $8.35 billion, reflecting a 6% increase at the midpoint compared to 2025[4][23]. - The company anticipates 2026 growth capital expenditures between $6.1 billion and $6.7 billion[23]. - Guidance for 2026 indicates net income from continuing operations will range from $3,010 million to $3,240 million[56]. - Adjusted EBITDA for 2026 is expected to be between $8,050 million and $8,350 million[56]. - Net cash provided by operating activities for 2026 is projected to be between $6,315 million and $6,545 million[56]. - Common dividends paid are expected to be $2,575 million in 2026[56]. - The company anticipates a total adjusted income from continuing operations available to common stockholders between $2,700 million and $2,930 million for 2026[56]. Operational Highlights - Williams completed 12 projects in 2025, including 6 pipeline transmission and 4 Deepwater projects[4]. - The company executed a strategic partnership with Woodside Energy and closed acquisitions of Rimrock and Saber Midstream[4]. - Average daily transportation volumes for Transcontinental Gas Pipe Line increased from 14.0 MMdth in 2023 to 15.0 MMdth in 2025, reflecting a 7.1% growth[34]. - Average daily firm reserved capacity for Transcontinental Gas Pipe Line is projected to increase from 20.1 MMdth in 2023 to 20.8 MMdth in 2025, a growth of 3.5%[34]. - Average daily crude oil transportation volumes are expected to rise from 113 Mbbls/d in 2023 to 208 Mbbls/d in 2025, representing an 84.1% increase[34]. - Gathering volumes averaged 5.46 Bcf/d in 2024, with an increase to 6.09 Bcf/d projected for 2025[39]. Dividend Policy - The company raised its dividend by 5% to $2.10 annualized for 2026, marking 52 consecutive years of dividend payments[4]. - The company is committed to maintaining dividend levels while navigating economic uncertainties and market volatility[60]. Risks and Considerations - Key factors influencing future results include levels of dividends, capital expenditures, and business expansion strategies[59]. - The company highlights risks related to natural gas and crude oil prices, market demand, and regulatory environments that could impact financial outcomes[60]. - Future cash flow from operations and the ability to execute capital projects are critical for achieving business objectives[60]. - The impact of climate change and regulatory scrutiny on environmental practices is a significant consideration for future strategies[60]. - The geopolitical situation, including conflicts and changes in U.S. policies, may affect operational and financial stability[60]. - Future reports will include detailed risk factors that could lead to deviations from anticipated results[63]. - The company does not intend to update forward-looking statements unless required by law, emphasizing the inherent uncertainties in such projections[61].