Williams Q2 Earnings and Revenues Miss Estimates, Expenses Rise Y/Y

Core Insights - The Williams Companies, Inc. (WMB) reported second-quarter 2025 adjusted earnings per share of 46 cents, missing the Zacks Consensus Estimate of 49 cents, but increased from 43 cents in the prior year [1][10] - Revenues for the quarter were $2.8 billion, falling short of the Zacks Consensus Estimate by $277 million, yet up from $2.3 billion year-over-year, driven by higher service revenues and product sales [2] - Adjusted EBITDA reached $1.9 billion, reflecting a 16% year-over-year increase, while cash flow from operations was $1.5 billion, up 13% from the same quarter in 2024 [3] Segment Performance - Transmission & Gulf of America segment reported adjusted EBITDA of $903 million, an 11.2% increase from the previous year, exceeding the Zacks Consensus Estimate of $899 million [7] - West segment's adjusted EBITDA totaled $341 million, up 6.9% from $319 million in the prior year, driven by higher volumes in the Haynesville region and contributions from recent acquisitions [8] - Northeast G&P segment achieved adjusted EBITDA of $501 million, a 4.6% increase from $479 million year-over-year, although it slightly missed the Zacks Consensus Estimate [9] - Gas & NGL Marketing Services segment reported an adjusted EBITDA loss of $15 million, wider than the previous year's loss of $14 million [10] - Other segment posted adjusted EBITDA of $78 million, a 9.9% increase from $71 million in the prior year, also exceeding the Zacks Consensus Estimate [11] Operational Developments - The company completed significant upgrades to its Transco pipeline system and accelerated work on the Southeast Supply Enhancement project to meet growing demand [4] - New records for natural gas flow were set in both the Transco and Gulfstream pipelines during the summer [5] - The company expanded its presence in the Haynesville region through the acquisition of Saber Midstream and initiated the $1.6 billion Socrates Power Innovation project [5][6] Financial Overview - Total costs and expenses for the quarter were $1.8 billion, an increase of nearly 12% from the previous year [12] - Capital expenditures amounted to $2 billion, with cash and cash equivalents of $903 million and long-term debt of $25.6 billion, resulting in a debt-to-capitalization ratio of 63.4% [12] - The company raised its annual dividend by 5.3% to $2 and expects growth capital expenditures for 2025 to be between $2.6 billion and $2.9 billion [10][13] Future Guidance - WMB anticipates the midpoint of its 2025 adjusted EBITDA guidance to rise by $50 million to $7.75 billion, with a projected range of $7.6 billion to $7.9 billion [13] - Maintenance capital expenditures are expected to range from $650 million to $750 million, excluding $150 million allocated for emissions reduction and modernization efforts [13]