Williams Achieves Another Year of Record Results and Raises 2025 Financial Guidance

2/12/25 4:17:00 PM ET

$WMB

Natural Gas Distribution

Utilities

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Williams (NYSE:WMB) today announced its unaudited financial results for the three and 12 months ended Dec. 31, 2024.

Business strength drives year-over-year financial growth

GAAP net income: $2.222 billion, or $1.82 per diluted share (EPS)
Adjusted net income: $2.347 billion, or $1.92 per diluted share (Adj. EPS)
Record Adjusted EBITDA: $7.08 billion – up $301 million or 4.4% vs. 2023
Cash flow from operations (CFFO): $4.974 billion
Available funds from operations (AFFO): $5.378 billion – up $165 million or 3.2% vs. 2023
Dividend coverage ratio: 2.32x (AFFO basis)
Record contracted transmission capacity: 33.4 Bcf/d – up 3.4% from 2023 – with Transco additions contributing to successive new peak days
Surpassed 2024 Adjusted EBITDA guidance midpoint
2024 leverage ratio: 3.79x
Raised 2025 Adjusted EBITDA guidance midpoint by 3% to between $7.45 billion and $7.85 billion, with a projected 5-year CAGR of 8% through 2025
Dividend increase: 5.3% to $2.00 annualized; continuing quarterly dividend since 1974

Successful execution of strategic priorities in 2024 fuels momentum for 2025 growth

Transco expansions: Placed Regional Energy Access, Southside Reliability Enhancement and Carolina Market Link expansions in service
Key expansions: MountainWest, Marcellus South gathering system and the Deepwater Gulf
Gulf Coast Storage integration: 115 Bcf of strategically located storage to serve growing LNG exports and power generation demand, announcing first expansion of 10 Bcf
High-return transmission projects: Six projects announced in 2024 to add 885 MMcf/d of capacity, serving key demand centers along footprint
Portfolio enhancements: Consolidated interest in Gulf Discovery system and Wamsutter upstream joint venture; divested Aux Sable
DJ Basin bolt-on: Acquired Rimrock's DJ gathering and processing system
Emissions reductions: 92 compressor units replaced, decreasing emissions and operating expenses and generating earnings growth from Transco rate case
Sustainability leadership: Recognized in key rankings, including the Dow Jones Best-in-Class Index, S&P Global, MSCI and the 2024 CDP Climate Change Questionnaire

CEO Perspective

Alan Armstrong, president and chief executive officer, made the following comments:

"Our natural gas-focused strategy delivered outstanding financial results in 2024, with Adjusted EBITDA and contracted transmission capacity reaching record levels due to the continued growth in natural gas demand driven by the abundance of low-cost U.S. natural gas. As we maintain our strong track record of project execution and completion, we fully expect this growth to accelerate in 2025. Consequently, we are raising our Adjusted EBITDA guidance midpoint by 3% to $7.65 billion, representing a remarkable compound annual growth rate (CAGR) of 8% over the last five years.

"In 2024, we expanded Transco with the completion of the Regional Energy Access, Southside Reliability Enhancement and Carolina Market Link projects as natural gas demand hit record highs with the onset of winter. We also increased transmission capacity for MountainWest and gathering capacity in the prolific Marcellus and Deepwater Gulf regions. Currently, we have 14 high-return transmission projects in execution, including Transco's Southeast Supply Enhancement project, a 1.6 Bcf/d expansion that will drive the largest earnings increase for a Williams pipeline project. Additionally, we optimized our portfolio by divesting Aux Sable and consolidating our interests in the Gulf Discovery system and the Wamsutter upstream joint ventures. Furthermore, we expanded our asset base in the DJ Basin with the recent bolt-on acquisition of the Rimrock gathering and processing system."

Armstrong added, "For the last several years we've been implementing our long-term strategy to bring Williams to where we are today with a healthy balance sheet and a clear line of sight to a full portfolio of high-return projects. During these early years of what is shaping up to be the golden age of natural gas, our strategy is taking hold in a powerful way that is delivering robust growth and compounding returns for our shareholders. This is evidenced by our 5% CAGR on our dividend and annualized total shareholder return of nearly 30% over the last five years. Looking ahead, we maintain our long-standing commitment to shareholder returns and have once again increased our dividend this year by 5.3% as we continue providing the critical infrastructure that serves the increasing demand for clean, reliable energy across growing markets."

Williams Summary Financial Information	4Q		Full Year
Amounts in millions, except ratios and per-share amounts. Per share amounts are reported on a diluted basis. Net income amounts are from continuing operations attributable to The Williams Companies, Inc. available to common stockholders.	2024	2023	2024	2023

GAAP Measures
Net Income	$485	$1,146	$2,222	$3,273
Net Income Per Share	$0.40	$0.94	$1.82	$2.68
Cash Flow From Operations	$1,218	$1,813	$4,974	$5,938

Non-GAAP Measures (1)
Adjusted EBITDA	$1,776	$1,721	$7,080	$6,779
Adjusted Net Income	$579	$588	$2,347	$2,334
Adjusted Earnings Per Share	$0.47	$0.48	$1.92	$1.91
Available Funds from Operations	$1,335	$1,323	$5,378	$5,213
Dividend Coverage Ratio	2.31x	2.43x	2.32x	2.39x

Other
Debt-to-Adjusted EBITDA at Quarter End (2)	3.79x	3.58x
Capital Investments (Excluding Acquisitions) (3) (4)	$760	$666	$2,706	$2,711

(1) Schedules reconciling Adjusted Net Income, Adjusted EBITDA, Available Funds from Operations and Dividend Coverage Ratio (non-GAAP measures) to the most comparable GAAP measure are available at www.williams.com and as an attachment to this news release.
(2) Does not represent leverage ratios measured for WMB credit agreement compliance or leverage ratios as calculated by the major credit ratings agencies. Debt is net of cash on hand, and Adjusted EBITDA reflects the sum of the last four quarters.
(3) Capital Investments include increases to property, plant, and equipment (growth & maintenance capital), purchases of and contributions to equity-method investments and purchases of other long-term investments.
(4) Fourth-quarter and full-year 2024 capital excludes $249 million, net of cash acquired, for the Crowheart acquisition, which closed in November 2024. Full-year 2024 also excludes $1.844 billion for the acquisition of the Gulf Coast Storage assets, which closed January 2024, and $151 million for the consolidation of our Discovery JV, which closed in August 2024. Fourth-quarter and full-year 2023 capital excludes $544 million for the DJ Basin acquisitions, which closed in November 2023. Full-year 2023 capital also excludes $1.024 billion for the acquisition of MountainWest Pipeline Holding Company, which closed in February 2023.

GAAP Measures

Fourth-quarter 2024 net income decreased by $661 million compared to the prior year primarily reflecting the absence of a $534 million gain in 2023 related to the net cash received from the favorable resolution of litigation with Energy Transfer and an unfavorable change of $384 million in net unrealized gains/losses on commodity derivatives, partially offset by $161 million of higher service revenues driven by acquisitions and expansion projects. The decrease was also impacted by higher operating costs and depreciation from recent acquisitions, as well as lower investing income. The tax provision decreased $280 million primarily due to lower pretax income.

Full-year 2024 net income decreased by $1.051 billion compared to the prior year reflecting an unfavorable change of $1.027 billion in net unrealized gains/losses on commodity derivatives, the previously described $534 million net litigation gain, partially offset by $602 million of higher service revenues driven by acquisitions and expansion projects. The decrease was also impacted by higher operating costs, depreciation, and interest expense from recent acquisitions. Gains in 2024 of $149 million from the sale of our interests in Aux Sable and $127 million associated with the Discovery acquisition were partially offset by the absence of a $129 million gain on the sale of the Bayou Ethane system in 2023. The tax provision decreased $365 million primarily due to lower pretax income. The 2023 period also reported a loss from discontinued operations associated with an adverse legal ruling involving former refinery operations.

Fourth-quarter 2024 cash flow from operations decreased $595 million compared to the prior year, while full-year 2024 decreased $964 million, both driven by the absence of the previously described $534 million net litigation gain and unfavorable net changes in derivative collateral requirements, partially offset by higher operating results exclusive of non-cash items. The full year decline was also impacted by unfavorable changes in working capital.

Non-GAAP Measures

Fourth-quarter 2024 Adjusted EBITDA increased by $55 million over the prior year, driven by the previously described favorable net contributions from acquisitions and expansion projects. Full-year 2024 Adjusted EBITDA increased by $301 million over the prior year, similarly reflecting favorable net contributions from acquisitions and expansion projects, partially offset by lower proportional EBITDA from investees that have been sold or acquired by us and now consolidated.

Fourth-quarter 2024 Adjusted Net Income declined by $9 million over the prior year, while full-year 2024 Adjusted Net Income increased $13 million over the prior year, both driven by the previously described impacts to net income, adjusted primarily to remove the effects of the litigation gain related to Energy Transfer, gains associated with Bayou Ethane, Discovery, and Aux Sable, net unrealized gains/losses on commodity derivatives, acquisition-related costs, and the related income tax effects.

Fourth-quarter and full-year 2024 Available Funds From Operations (AFFO) increased by $12 million and $165 million, respectively, compared to the prior year primarily due to higher adjusted results from continuing operations exclusive of non-cash items.

Business Segment Results & Form 10-K

Williams' operations are comprised of the following reportable segments: Transmission & Gulf, Northeast G&P, West and Gas & NGL Marketing Services, as well as Other. For more information, see the company's 2024 Form 10-K.

	Fourth Quarter									Full Year
Amounts in millions	Modified EBITDA					Adjusted EBITDA				Modified EBITDA					Adjusted EBITDA
Amounts in millions	4Q 2024		4Q 2023	Change		4Q 2024	4Q 2023	Change		2024		2023	Change		2024	2023	Change
Transmission & Gulf	$825		$741	$84		$826	$752	$74		$3,273		$3,068	$205		$3,307	$2,982	$325
Northeast G&P	497		477	20		499	485	14		1,958		1,916	42		1,966	1,955	11
West	344		307	37		345	323	22		1,312		1,238	74		1,322	1,236	86
Gas & NGL Marketing Services	(110	)	272	(382	)	36	69	(33	)	(124	)	950	(1,074	)	215	300	(85	)
Other	56		645	(589	)	70	92	(22	)	237		841	(604	)	270	306	(36	)
Total	$1,612		$2,442	($830	)	$1,776	$1,721	$55		$6,656		$8,013	($1,357	)	$7,080	$6,779	$301

Note: Williams uses Modified EBITDA for its segment reporting. Definitions of Modified EBITDA and Adjusted EBITDA and schedules reconciling to net income are included in this news release.

Transmission & Gulf

Fourth-quarter 2024 Modified EBITDA improved compared to the prior year driven by favorable net contributions from the Gulf Coast Storage and Discovery acquisitions and the Regional Energy Access expansion project. Full-year 2024 Modified EBITDA improved as the favorable net contributions from acquisitions, including MountainWest, and Regional Energy Access, along with lower one-time acquisition and transition costs, were partially offset by the absence of the previously mentioned gain on the sale of the Bayou Ethane system and hurricane impacts. Fourth-quarter and full-year Adjusted EBITDA, which excludes the Bayou Ethane gain and acquisition and transition costs, improved compared to the prior year.

Northeast G&P

Fourth-quarter and full-year 2024 Modified EBITDA increased compared to the prior year driven by higher rates at Susquehanna Supply Hub, Ohio Valley Midstream and Bradford, substantially offset by lower gathering volumes. The improved full-year Modified EBITDA also reflects the absence of our share of a loss contingency accrual at Aux Sable in 2023, which is excluded from Adjusted EBITDA.

West

Fourth-quarter 2024 Modified and Adjusted EBITDA increased compared to the prior year benefiting from the DJ Basin Acquisitions, partially offset by lower gathering volumes. Both metrics also improved for the full-year period reflecting similar drivers, as well as improved commodity margins to reflect favorable changes in commodity processing costs and increased contributions from Overland Pass Pipeline reflecting higher volumes, partially offset by lower realized gains on natural gas hedges. The full-year Modified EBITDA was also impacted by the absence of a first-quarter 2023 favorable contract settlement, which is excluded from Adjusted EBITDA.

Gas & NGL Marketing Services

Fourth-quarter 2024 Modified EBITDA decreased from the prior year reflecting lower gas and NGL marketing margins and a $358 million net unfavorable change in unrealized gains/losses on commodity derivatives, which is excluded from Adjusted EBITDA. Full-year 2024 Modified EBITDA also decreased from the prior year reflecting a decline in gas and NGL marketing margins, as well as a $1 billion net unfavorable change in unrealized gains/losses on commodity derivatives, which is excluded from Adjusted EBITDA.

Other

Fourth-quarter and full-year 2024 Modified and Adjusted EBITDA decreased compared to the prior year driven by the absence of the $534 million litigation settlement income related to Energy Transfer in 2023 and an unfavorable change in unrealized gains/losses on commodity derivatives, both of which are excluded from Adjusted EBITDA. These metrics also reflect lower net contributions from upstream operations, including the benefit of upstream interests acquired in the fourth quarter of 2024.

2025 Financial Guidance

The company is raising the midpoint of its 2025 Adjusted EBITDA guidance by 3% and updating the range to between $7.45 billion and $7.85 billion. The company continues to expect 2025 growth capex between $1.65 billion and $1.95 billion and maintenance capex between $650 million and $750 million, excluding capital of $150 million based on midpoint for emissions reduction and modernization initiatives. Williams is improving its leverage ratio midpoint for 2025 to 3.55x and has increased the dividend by 5.3% on an annualized basis to $2.00 in 2025 from $1.90 in 2024.

Williams' Fourth-Quarter and Full-Year 2024 Materials to be Posted Shortly; Q&A Webcast Scheduled for Tomorrow

Williams' fourth-quarter and full-year 2024 earnings presentation will be posted at www.williams.com. The company's full-year 2024 earnings conference call and webcast with analysts and investors is scheduled for Thursday, Feb. 13, at 9:30 a.m. Eastern Time (8:30 a.m. Central Time). Participants who wish to join the call by phone must register using the following link: https://register.vevent.com/register/BI2a741c8698464278bd7752bfd9ef3746.

A webcast link to the conference call will be provided on Williams' Investor Relations website. A replay of the webcast will also be available on the website for at least 90 days following the event.

About Williams

Williams (NYSE:WMB) is a trusted energy industry leader committed to safely, reliably, and responsibly meeting growing energy demand. We use our 33,000-mile pipeline infrastructure to move a third of the nation's natural gas to where it's needed most, supplying the energy used to heat our homes, cook our food and generate low-carbon electricity. For over a century, we've been driven by a passion for doing things the right way. Today, our team of problem solvers is leading the charge into the clean energy future – by powering the global economy while delivering immediate emissions reductions within our natural gas network and investing in new energy technologies. Learn more at www.williams.com.




The Williams Companies, Inc. Consolidated Statement of Income (Unaudited)

	Year Ended December 31,
		2024			2023			2022
	(Millions, except per-share amounts)
Revenues:
Service revenues	$	7,628		$	7,026		$	6,536
Service revenues – commodity consideration		134			146			260
Product sales		2,991			2,779			4,556
Net gain (loss) from commodity derivatives		(250	)		956			(387	)
Total revenues		10,503			10,907			10,965
Costs and expenses:
Product costs		2,075			1,884			3,369
Net processing commodity expenses		43			151			88
Operating and maintenance expenses		2,179			1,984			1,817
Depreciation and amortization expenses		2,219			2,071			2,009
Selling, general, and administrative expenses		708			665			636
Gain on sale of business		—			(129	)		—
Other (income) expense – net		(60	)		(30	)		28
Total costs and expenses		7,164			6,596			7,947
Operating income (loss)		3,339			4,311			3,018
Equity earnings (losses)		560			589			637
Other investing income (loss) – net		343			108			16
Interest expense		(1,364	)		(1,236	)		(1,147	)
Net gain from Energy Transfer litigation judgment		—			534			—
Other income (expense) – net		108			99			18
Income (loss) before income taxes		2,986			4,405			2,542
Less: Provision (benefit) for income taxes		640			1,005			425
Income (loss) from continuing operations		2,346			3,400			2,117
Income (loss) from discontinued operations		—			(97	)		—
Net income (loss)		2,346			3,303			2,117
Less: Net income (loss) attributable to noncontrolling interests		121			124			68
Net income (loss) attributable to The Williams Companies, Inc.		2,225			3,179			2,049
Less: Preferred stock dividends		3			3			3
Net income (loss) available to common stockholders	$	2,222		$	3,176		$	2,046
Amounts attributable to The Williams Companies, Inc. available to common stockholders:
Income (loss) from continuing operations	$	2,222		$	3,273		$	2,046
Income (loss) from discontinued operations		—			(97	)		—
Net income (loss) available to common stockholders	$	2,222		$	3,176		$	2,046
Basic earnings (loss) per common share:
Income (loss) from continuing operations	$	1.82		$	2.69		$	1.68
Income (loss) from discontinued operations		—			(.08	)		—
Net income (loss) available to common stockholders	$	1.82		$	2.61		$	1.68
Weighted-average shares (thousands)		1,219,184			1,217,784			1,218,362
Diluted earnings (loss) per common share:
Income (loss) from continuing operations	$	1.82		$	2.68		$	1.67
Income (loss) from discontinued operations		—			(.08	)		—
Net income (loss) available to common stockholders	$	1.82		$	2.60		$	1.67
Weighted-average shares (thousands)		1,222,954			1,222,715			1,222,672





The Williams Companies, Inc. Consolidated Balance Sheet (Unaudited)

	December 31,
		2024			2023
	(Millions, except per-share amounts)
ASSETS
Current assets:
Cash and cash equivalents	$	60		$	2,150
Trade accounts and other receivables (net of allowance of ($1) at December 31, 2024 and ($3) at December 31, 2023)		1,863			1,655
Inventories		279			274
Derivative assets		267			239
Other current assets and deferred charges		192			195
Total current assets		2,661			4,513
Investments		4,140			4,637
Property, plant, and equipment – net		38,692			34,311
Intangible assets – net of accumulated amortization		7,209			7,593
Regulatory assets, deferred charges, and other		1,807			1,573
Total assets	$	54,509		$	52,627

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	1,613		$	1,379
Derivative liabilities		164			105
Other current liabilities		1,360			1,284
Commercial paper		455			725
Long-term debt due within one year		1,720			2,337
Total current liabilities		5,312			5,830
Long-term debt		24,736			23,376
Deferred income tax liabilities		4,455			3,846
Regulatory liabilities, deferred income, and other		5,245			4,684
Contingent liabilities and commitments

Equity:
Stockholders' equity:
Preferred stock ($1 par value; 30 million shares authorized at December 31, 2024 and December 31, 2023; 35 thousand shares issued at December 31, 2024 and December 31, 2023)		35			35
Common stock ($1 par value; 1,470 million shares authorized at December 31, 2024 and December 31, 2023; 1,258 million shares issued at December 31, 2024 and 1,256 million shares issued at December 31, 2023)		1,258			1,256
Capital in excess of par value		24,643			24,578
Retained deficit		(12,396	)		(12,287	)
Accumulated other comprehensive income (loss)		76			—
Treasury stock, at cost (39 million shares at December 31, 2024 and December 31, 2023 of common stock)		(1,180	)		(1,180	)
Total stockholders' equity		12,436			12,402
Noncontrolling interests in consolidated subsidiaries		2,404			2,489
Total equity		14,840			14,891
Total liabilities and equity	$	54,509		$	52,627





The Williams Companies, Inc. Consolidated Statement of Cash Flows (Unaudited)

	Year Ended December 31,
		2024			2023			2022
	(Millions)
OPERATING ACTIVITIES:
Net income (loss)	$	2,346		$	3,303		$	2,117
Adjustments to reconcile to net cash provided (used) by operating activities:
Depreciation and amortization		2,219			2,071			2,009
Provision (benefit) for deferred income taxes		506			951			431
Equity (earnings) losses		(560	)		(589	)		(637	)
Distributions from equity-method investees		789			796			865
Net unrealized (gain) loss from commodity derivative instruments		367			(660	)		249
Gain on sale of business		—			(129	)		—
Gain on disposition of equity-method investments		(149	)		—			—
Gain on remeasurement of equity-method investments		(127	)		(30	)		—
Inventory write-downs		10			30			161
Amortization of stock-based awards		99			77			73
Cash provided (used) by changes in current assets and liabilities:
Accounts receivable		(169	)		1,089			(733	)
Inventories		(9	)		13			(110	)
Other current assets and deferred charges		9			60			(33	)
Accounts payable		139			(1,009	)		410
Other current liabilities		35			(19	)		209
Changes in current and noncurrent commodity derivative assets and liabilities		(286	)		200			94
Other, including changes in noncurrent assets and liabilities		(245	)		(216	)		(216	)
Net cash provided (used) by operating activities		4,974			5,938			4,889
FINANCING ACTIVITIES:
Proceeds from (payments of) commercial paper – net		(269	)		372			345
Proceeds from long-term debt		3,594			2,755			1,755
Payments of long-term debt		(2,946	)		(634	)		(2,876	)
Payments for debt issuance costs		(32	)		(23	)		(17	)
Proceeds from issuance of common stock		10			6			54
Purchases of treasury stock		—			(130	)		(9	)
Common dividends paid		(2,316	)		(2,179	)		(2,071	)
Dividends and distributions paid to noncontrolling interests		(242	)		(213	)		(204	)
Contributions from noncontrolling interests		36			18			18
Other – net		(36	)		(21	)		(37	)
Net cash provided (used) by financing activities		(2,201	)		(49	)		(3,042	)
INVESTING ACTIVITIES:
Property, plant, and equipment:
Capital expenditures (1)		(2,573	)		(2,516	)		(2,253	)
Dispositions – net		(105	)		(51	)		(30	)
Proceeds from sale of business		—			346			—
Purchases of businesses, net of cash acquired		(2,244	)		(1,568	)		(933	)
Proceeds from dispositions of equity-method investments		161			—			—
Purchases of and contributions to equity-method investments		(114	)		(141	)		(166	)
Other – net		12			39			7
Net cash provided (used) by investing activities		(4,863	)		(3,891	)		(3,375	)
Increase (decrease) in cash and cash equivalents		(2,090	)		1,998			(1,528	)
Cash and cash equivalents at beginning of year		2,150			152			1,680
Cash and cash equivalents at end of year	$	60		$	2,150		$	152

(1) Increases to property, plant, and equipment	$	(2,581	)	$	(2,564	)	$	(2,394	)
Changes in related accounts payable and accrued liabilities		8			48			141
Capital expenditures	$	(2,573	)	$	(2,516	)	$	(2,253	)





Transmission & Gulf
(UNAUDITED)
	2023															2024
(Dollars in millions)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year
Regulated interstate natural gas transportation, storage, and other revenues ⁽¹⁾	$	774		$	786		$	794		$	822		$	3,176		$	836		$	805		$	833		$	864		$	3,338
Gathering, processing, storage and transportation revenues ⁽¹⁾		100			104			114			100			418			137			147			167			170			621
Other fee revenues		6			8			5			4			23			12			9			7			9			37
Commodity margins		10			8			7			8			33			9			5			11			28			53
Operating and administrative costs ⁽¹⁾		(254	)		(254	)		(257	)		(270	)		(1,035	)		(254	)		(261	)		(294	)		(295	)		(1,104	)
Other segment income (expenses) - net ⁽¹⁾		26			31			36			26			119			43			54			46			12			155
Gain on sale of business		—			—			130			(1	)		129			—			—			—			—			—
Proportional Modified EBITDA of equity-method investments		53			48			52			52			205			46			49			41			37			173
Modified EBITDA		715			731			881			741			3,068			829			808			811			825			3,273
Adjustments		13			17			(127	)		11			(86	)		10			4			19			1			34
Adjusted EBITDA	$	728		$	748		$	754		$	752		$	2,982		$	839		$	812		$	830		$	826		$	3,307

Statistics for Operated Assets
Natural Gas Transmission ⁽²⁾
Transcontinental Gas Pipe Line
Avg. daily transportation volumes (MMdth)		14.3			13.2			14.0			14.0			13.9			14.6			12.9			14.3			14.1			14.0
Avg. daily firm reserved capacity (MMdth)		19.5			19.4			19.4			19.3			19.4			20.3			19.7			20.1			20.4			20.1
Northwest Pipeline LLC
Avg. daily transportation volumes (MMdth)		3.1			2.3			2.3			2.8			2.6			3.1			2.2			2.1			2.1			2.4
Avg. daily firm reserved capacity (MMdth)		3.8			3.8			3.8			3.8			3.8			3.8			3.7			3.7			3.7			3.7
MountainWest ⁽³⁾
Avg. daily transportation volumes (MMdth)		4.2			3.2			3.8			4.2			3.9			4.3			3.2			3.6			4.1			3.8
Avg. daily firm reserved capacity (MMdth)		7.8			7.5			7.5			7.9			7.7			8.4			8.0			8.1			8.3			8.2
Gulfstream - Non-consolidated
Avg. daily transportation volumes (MMdth)		1.0			1.2			1.4			1.1			1.2			1.0			1.2			1.4			1.1			1.2
Avg. daily firm reserved capacity (MMdth)		1.4			1.4			1.4			1.4			1.4			1.4			1.4			1.4			1.4			1.4
Gathering, Processing, and Crude Oil Transportation
Consolidated ⁽⁴⁾
Gathering volumes (Bcf/d)		0.28			0.23			0.27			0.27			0.26			0.25			0.23			0.55			0.55			0.55
Plant inlet natural gas volumes (Bcf/d)		0.43			0.40			0.46			0.46			0.44			0.45			0.27			0.73			0.75			0.71
NGL production (Mbbls/d)		28			24			28			26			27			28			17			49			54			47
NGL equity sales (Mbbls/d)		7			5			6			5			6			5			3			9			13			10
Crude oil transportation volumes (Mbbls/d)		119			111			134			130			123			118			114			109			110			113
Non-consolidated ⁽⁵⁾
Gathering volumes (Bcf/d)		0.36			0.30			0.36			0.33			0.34			0.27			0.35			—			—			—
Plant inlet natural gas volumes (Bcf/d)		0.36			0.30			0.36			0.33			0.34			0.27			0.35			—			—			—
NGL production (Mbbls/d)		28			21			30			28			27			15			26			—			—			—
NGL equity sales (Mbbls/d)		8			3			8			7			7			3			7			—			—			—

(1) Excludes certain amounts associated with revenues and operating costs for tracked or reimbursable charges.
(2) Tbtu converted to MMdth at one trillion British thermal units = one million dekatherms.
(3) Includes 100% of the volumes associated with the MountainWest Acquisition transmission assets after the purchase on February 14, 2023, including 100% of the volumes associated with the operated equity-method investment White River Hub, LLC. Average volumes were calculated over the period owned.
(4) Volumes associated with Discovery Producer Services for the 3rd and 4th Qtrs 2024 and Year 2024 are presented entirely in the Consolidated section. We acquired the remaining 40 percent of Discovery on August 1, 2024.
(5) Includes 100% of the volumes associated with operated equity-method investment Discovery Producer Services through 2nd Qtr 2024.





Northeast G&P
(UNAUDITED)
	2023															2024
(Dollars in millions)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year
Gathering, processing, transportation, and fractionation revenues ⁽¹⁾	$	391		$	431		$	417		$	411		$	1,650		$	411		$	398		$	407		$	419		$	1,635
Other fee revenues		32			27			27			28			114			34			35			33			33			135
Commodity margins		5			(1	)		7			1			12			11			—			8			5			24
Operating and administrative costs ⁽¹⁾		(101	)		(101	)		(115	)		(107	)		(424	)		(108	)		(108	)		(120	)		(105	)		(441	)
Other segment income (expenses) - net		—			—			(1	)		(9	)		(10	)		(1	)		3			(1	)		2			3
Proportional Modified EBITDA of equity-method investments		143			159			119			153			574			157			153			149			143			602
Modified EBITDA		470			515			454			477			1,916			504			481			476			497			1,958
Adjustments		—			—			31			8			39			—			(2	)		8			2			8
Adjusted EBITDA	$	470		$	515		$	485		$	485		$	1,955		$	504		$	479		$	484		$	499		$	1,966

Statistics for Operated Assets
Gathering and Processing
Consolidated ⁽²⁾
Gathering volumes (Bcf/d)		4.42			4.61			4.41			4.37			4.45			4.33			4.11			4.04			4.16			4.16
Plant inlet natural gas volumes (Bcf/d)		1.92			1.79			1.93			1.93			1.89			1.76			1.77			1.99			1.93			1.86
NGL production (Mbbls/d)		144			135			144			133			139			133			136			140			145			139
NGL equity sales (Mbbls/d)		1			1			—			1			1			1			1			1			—			1
Non-consolidated ⁽³⁾
Gathering volumes (Bcf/d)		6.97			7.03			6.83			6.85			6.92			6.79			6.42			6.40			6.22			6.46
Plant inlet natural gas volumes (Bcf/d)		0.77			0.93			0.99			1.01			0.93			0.98			0.94			0.98			1.04			0.98
NGL production (Mbbls/d)		54			64			71			69			65			72			70			72			74			72
NGL equity sales (Mbbls/d)		4			5			4			4			4			3			6			5			5			5

(1) Excludes certain amounts associated with revenues and operating costs for reimbursable charges.
(2) Includes volumes associated with Susquehanna Supply Hub, the Northeast JV, and Utica Supply Hub, all of which are consolidated.
(3) Includes 100% of the volumes associated with operated equity-method investments, including the Laurel Mountain Midstream partnership, Blue Racer Midstream, and the Bradford Supply Hub and the Marcellus South Supply Hub within the Appalachia Midstream Services partnership.





West
(UNAUDITED)
	2023															2024
(Dollars in millions)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year
Net gathering, processing, transportation, storage, and fractionation revenues ⁽¹⁾	$	382		$	373		$	371		$	397		$	1,523		$	421		$	397		$	409		$	427		$	1,654
Other fee revenues		5			7			4			8			24			8			5			4			8			25
Commodity margins		(24	)		18			21			19			34			12			30			27			28			97
Operating and administrative costs ⁽¹⁾		(115	)		(122	)		(122	)		(144	)		(503	)		(139	)		(148	)		(157	)		(147	)		(591	)
Other segment income (expenses) - net		23			(7	)		(4	)		(14	)		(2	)		—			(2	)		5			(8	)		(5	)
Proportional Modified EBITDA of equity-method investments		33			43			45			41			162			25			36			35			36			132
Modified EBITDA		304			312			315			307			1,238			327			318			323			344			1,312
Adjustments		(18	)		—			—			16			(2	)		1			1			7			1			10
Adjusted EBITDA	$	286		$	312		$	315		$	323		$	1,236		$	328		$	319		$	330		$	345		$	1,322

Statistics for Operated Assets
Gathering and Processing
Consolidated ⁽²⁾
Gathering volumes (Bcf/d) ⁽³⁾		5.47			5.51			5.60			6.03			6.02			5.75			5.25			5.38			5.46			5.46
Plant inlet natural gas volumes (Bcf/d)		0.92			1.06			1.12			1.63			1.54			1.52			1.48			1.57			1.57			1.54
NGL production (Mbbls/d)		25			40			61			99			91			87			91			91			90			90
NGL equity sales (Mbbls/d)		6			16			22			14			14			6			8			6			7			7
Non-consolidated ⁽⁴⁾
Gathering volumes (Bcf/d)		0.32			0.33			0.33			—			—			—			—			—			—			—
Plant inlet natural gas volumes (Bcf/d)		0.32			0.32			0.32			—			—			—			—			—			—			—
NGL production (Mbbls/d)		37			38			38			—			—			—			—			—			—			—
NGL and Crude Oil Transportation volumes (Mbbls/d) ⁽⁵⁾		161			217			244			250			218			220			292			304			314			282

(1) Excludes certain amounts associated with revenues and operating costs for reimbursable charges.
(2) Excludes volumes associated with equity-method investments that are not consolidated in our results.
(3) Includes 100% of the volumes associated with the Cureton Acquisition gathering assets after the purchase on November 30, 2023. Average volumes were calculated over the period owned.
(4) Includes 100% of the volumes associated with operated equity-method investment Rocky Mountain Midstream through 3rd Qtr 2023.
(5) Includes 100% of the volumes associated with Overland Pass Pipeline Company (an operated equity-method investment), RMM, and Bluestem pipeline.





Gas & NGL Marketing Services
(UNAUDITED)
	2023															2024
(Dollars in millions)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year
Commodity margins	$	265		$	(2	)	$	38		$	88		$	389		$	236		$	3		$	23		$	63		$	325
Other fee revenues		1			—			—			—			1			—			—			—			—			—
Net unrealized gain (loss) from derivative instruments		333			94			24			208			659			(95	)		(106	)		10			(150	)		(341	)
Operating and administrative costs		(32	)		(24	)		(19	)		(24	)		(99	)		(40	)		(23	)		(22	)		(23	)		(108	)
Modified EBITDA		567			68			43			272			950			101			(126	)		11			(110	)		(124	)
Adjustments		(336	)		(84	)		(27	)		(203	)		(650	)		88			112			(7	)		146			339
Adjusted EBITDA	$	231		$	(16	)	$	16		$	69		$	300		$	189		$	(14	)	$	4		$	36		$	215

Statistics
Product Sales Volumes
Natural Gas (Bcf/d)		7.24			6.56			7.31			7.11			7.05			7.53			6.98			7.14			6.81			7.11
NGLs (Mbbls/d)		234			239			245			173			223			170			162			182			196			177





Other
(UNAUDITED)
	2023															2024
(Dollars in millions)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year
Service revenues	$	3		$	5		$	4		$	4		$	16		$	4		$	4		$	4		$	3		$	15
Net realized product sales		120			97			127			145			489			113			109			96			137			455
Net unrealized gain (loss) from derivative instruments		(6	)		(11	)		(1	)		19			1			3			(25	)		3			(7	)		(26	)
Operating and administrative costs		(48	)		(54	)		(58	)		(65	)		(225	)		(51	)		(50	)		(51	)		(77	)		(229	)
Other segment income (expenses) - net		5			5			10			8			28			7			9			4			—			20
Net gain from Energy Transfer litigation judgment		—			—			—			534			534			—			—			—			—			—
Proportional Modified EBITDA of equity-method investments		—			(1	)		(1	)		—			(2	)		—			—			2			—			2
Modified EBITDA		74			41			81			645			841			76			47			58			56			237
Adjustments		6			11			1			(553	)		(535	)		(2	)		24			(3	)		14			33
Adjusted EBITDA	$	80		$	52		$	82		$	92		$	306		$	74		$	71		$	55		$	70		$	270

Statistics
Net Product Sales Volumes⁽¹⁾
Natural Gas (Bcf/d)		0.26			0.29			0.31			0.30			0.29			0.28			0.24			0.29			0.31			0.31
NGLs (Mbbls/d)		3			6			9			10			7			8			8			9			10			11
Crude Oil (Mbbls/d)		1			3			5			7			4			5			5			4			6			6

(1) Includes 100% of the volumes associated with the Crowheart Acquisition upstream assets after the purchase on November 1, 2024. Average volumes were calculated over the period owned.





Capital Expenditures and Investments
(UNAUDITED)
	2023														2024
(Dollars in millions)	1st Qtr		2nd Qtr			3rd Qtr			4th Qtr			Year			1st Qtr		2nd Qtr			3rd Qtr			4th Qtr		Year

Capital expenditures:
Transmission & Gulf	$	205	$	263		$	382		$	404		$	1,254		$	310	$	397		$	459		$	428	$	1,594
Northeast G&P		99		74			115			71			359			71		46			54			53		224
West		169		197			141			121			628			120		90			98			180		488
Other		72		76			52			75			275			43		46			71			107		267
Total ⁽¹⁾	$	545	$	610		$	690		$	671		$	2,516		$	544	$	579		$	682		$	768	$	2,573

Purchases of and contributions to equity-method investments:
Transmission & Gulf	$	8	$	18		$	6		$	9		$	41		$	27	$	10		$	—		$	—	$	37
Northeast G&P		31		12			4			52			99			25		19			19			12		75
West		—		—			1			—			1			—		1			—			1		2
Other		—		—			—			—			—			—		—			—			—		—
Total	$	39	$	30		$	11		$	61		$	141		$	52	$	30		$	19		$	13	$	114

Summary:
Transmission & Gulf	$	213	$	281		$	388		$	413		$	1,295		$	337	$	407		$	459		$	428	$	1,631
Northeast G&P		130		86			119			123			458			96		65			73			65		299
West		169		197			142			121			629			120		91			98			181		490
Other		72		76			52			75			275			43		46			71			107		267
Total	$	584	$	640		$	701		$	732		$	2,657		$	596	$	609		$	701		$	781	$	2,687

Capital investments:
Increases to property, plant, and equipment	$	484	$	684		$	792		$	604		$	2,564		$	509	$	632		$	699		$	741	$	2,581
Purchases of businesses, net of cash acquired		1,056		(3	)		(29	)		544			1,568			1,851		(7	)		151			249		2,244
Purchases of and contributions to equity-method investments		39		30			11			61			141			52		30			19			13		114
Purchases of other long-term investments		2		1			2			1			6			2		1			2			6		11
Total	$	1,581	$	712		$	776		$	1,210		$	4,279		$	2,414	$	656		$	871		$	1,009	$	4,950

⁽¹⁾ Increases to property, plant, and equipment	$	484	$	684		$	792		$	604		$	2,564		$	509	$	632		$	699		$	741	$	2,581
Changes in related accounts payable and accrued liabilities		61		(74	)		(102	)		67			(48	)		35		(53	)		(17	)		27		(8	)
Capital expenditures	$	545	$	610		$	690		$	671		$	2,516		$	544	$	579		$	682		$	768	$	2,573

Contributions from noncontrolling interests	$	3	$	15		$	—		$	—		$	18		$	26	$	10		$	—		$	—	$	36
Contributions in aid of construction	$	11	$	7		$	2		$	8		$	28		$	10	$	13		$	—		$	4	$	27
Proceeds from sale of business	$	—	$	—		$	348		$	(2	)	$	346		$	—	$	—		$	—		$	—	$	—
Proceeds from dispositions of equity-method investments	$	—	$	—		$	—		$	—		$	—		$	—	$	—		$	161		$	—	$	161

Non-GAAP Measures

This news release and accompanying materials may include certain financial measures – adjusted EBITDA, adjusted income ("earnings"), adjusted earnings per share, available funds from operations and dividend coverage ratio – that are non-GAAP financial measures as defined under the rules of the SEC.

Our segment performance measure, modified EBITDA, is defined as net income (loss) before income (loss) from discontinued operations, income tax expense, interest expense, equity earnings from equity-method investments, other net investing income, impairments of equity investments and goodwill, depreciation and amortization expense, and accretion expense associated with asset retirement obligations for nonregulated operations. We also add our proportional ownership share (based on ownership interest) of modified EBITDA of equity-method investments.

Adjusted EBITDA further excludes items of income or loss that we characterize as unrepresentative of our ongoing operations. Such items are excluded from net income to determine adjusted income and adjusted earnings per share. Management believes this measure provides investors meaningful insight into results from ongoing operations.

Available funds from operations (AFFO) is defined as net income (loss) excluding the effect of certain noncash items, reduced by distributions from equity-method investees, net distributions to noncontrolling interests, and preferred dividends. AFFO may also be adjusted to exclude certain items that we characterize as unrepresentative of our ongoing operations.

This news release is accompanied by a reconciliation of these non-GAAP financial measures to their nearest GAAP financial measures. Management uses these financial measures because they are accepted financial indicators used by investors to compare company performance. In addition, management believes that these measures provide investors an enhanced perspective of the operating performance of assets and the cash that the business is generating.

Neither adjusted EBITDA, adjusted income, nor available funds from operations are intended to represent cash flows for the period, nor are they presented as an alternative to net income or cash flow from operations. They should not be considered in isolation or as substitutes for a measure of performance prepared in accordance with United States generally accepted accounting principles.



Reconciliation of Income (Loss) from Continuing Operations Attributable to The Williams Companies, Inc. to Non-GAAP Adjusted Income
(UNAUDITED)
	2023															2024
(Dollars in millions, except per-share amounts)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year

Income (loss) from continuing operations attributable to The Williams Companies, Inc. available to common stockholders	$	926		$	547		$	654		$	1,146		$	3,273		$	631		$	401		$	705		$	485		$	2,222

Income (loss) from continuing operations - diluted earnings (loss) per common share ⁽¹⁾	$	.76		$	.45		$	.54		$	.94		$	2.68		$	.52		$	.33		$	.58		$	.40		$	1.82
Adjustments:
Transmission & Gulf
MountainWest acquisition and transition-related costs*	$	13		$	17		$	3		$	9		$	42		$	—		$	1		$	3		$	—		$	4
Gulf Coast Storage acquisition and transition-related costs*		—			—			—			1			1			10			3			—			—			13
Discovery acquisition and transition-related costs*		—			—			—			—			—			—			—			—			1			1
Gain on sale of business		—			—			(130	)		1			(129	)		—			—			—			—			—
Impact of change in payroll policy*		—			—			—			—			—			—			—			16			—			16
Total Transmission & Gulf adjustments		13			17			(127	)		11			(86	)		10			4			19			1			34
Northeast G&P
Accrual for loss contingency*		—			—			—			10			10			—			(3	)		—			—			(3	)
Our share of operator transition costs at Blue Racer Midstream*		—			—			—			—			—			—			1			1			2			4
Our share of accrual for loss contingency at Aux Sable Liquid Products LP		—			—			31			(2	)		29			—			—			—			—			—
Impact of change in payroll policy*		—			—			—			—			—			—			—			7			—			7
Total Northeast G&P adjustments		—			—			31			8			39			—			(2	)		8			2			8
West
Cureton acquisition and transition-related costs*		—			—			—			6			6			1			1			—			1			3
Gain from contract settlement		(18	)		—			—			—			(18	)		—			—			—			—			—
Impairment of assets held for sale		—			—			—			10			10			—			—			—			—			—
Impact of change in payroll policy*		—			—			—			—			—			—			—			7			—			7
Total West adjustments		(18	)		—			—			16			(2	)		1			1			7			1			10
Gas & NGL Marketing Services
Impact of volatility on NGL linefill transactions*		(3	)		10			(3	)		5			9			(6	)		5			2			(4	)		(3	)
Net unrealized (gain) loss from derivative instruments		(333	)		(94	)		(24	)		(208	)		(659	)		94			107			(10	)		150			341
Impact of change in payroll policy*		—			—			—			—			—			—			—			1			—			1
Total Gas & NGL Marketing Services adjustments		(336	)		(84	)		(27	)		(203	)		(650	)		88			112			(7	)		146			339
Other
Crowheart acquisition and transition-related costs*		—			—			—			—			—			—			—			—			1			1
Net unrealized (gain) loss from derivative instruments		6			11			1			(19	)		(1	)		(2	)		24			(3	)		7			26
Settlement charge related to former operations*		—			—			—			—			—			—			—			—			6			6
Net gain from Energy Transfer litigation judgment		—			—			—			(534	)		(534	)		—			—			—			—			—
Total Other adjustments		6			11			1			(553	)		(535	)		(2	)		24			(3	)		14			33
Adjustments included in Modified EBITDA		(335	)		(56	)		(122	)		(721	)		(1,234	)		97			139			24			164			424
Adjustments below Modified EBITDA
Gain on remeasurement of RMM investment		—			—			—			(30	)		(30	)		—			—			—			—			—
Gain on remeasurement of Discovery investment		—			—			—			—			—			—			—			(127	)		—			(127	)
Gain on sale of Aux Sable investment		—			—			—			—			—			—			—			(149	)		—			(149	)
Our share of Blue Racer Midstream debt extinguishment loss		—			—			—			—			—			—			—			—			3			3
Our share of accelerated depreciation related to operator transition at Blue Racer Midstream		—			—			—			—			—			—			—			—			1			1
Imputed interest expense on deferred consideration obligations*		—			—			—			—			—			12			12			11			5			40
Amortization of intangible assets from Sequent acquisition		15			14			15			15			59			7			7			8			7			29
		15			14			15			(15	)		29			19			19			(257	)		16			(203	)
Total adjustments		(320	)		(42	)		(107	)		(736	)		(1,205	)		116			158			(233	)		180			221
Less tax effect for above items		78			10			25			178			291			(28	)		(38	)		56			(42	)		(52	)
Adjustments for tax-related items ⁽²⁾		—			—			(25	)		—			(25	)		—			—			—			(44	)		(44	)
Adjusted income from continuing operations available to common stockholders	$	684		$	515		$	547		$	588		$	2,334		$	719		$	521		$	528		$	579		$	2,347
Adjusted income from continuing operations - diluted earnings per common share ⁽¹⁾	$	.56		$	.42		$	.45		$	.48		$	1.91		$	.59		$	.43		$	.43		$	.47		$	1.92
Weighted-average shares - diluted (thousands)		1,225,781			1,219,915			1,220,073			1,221,894			1,221,616			1,222,222			1,222,236			1,222,869			1,224,472			1,222,954
(1) The sum of earnings per share for the quarters may not equal the total earnings per share for the year due to changes in the weighted-average number of common shares outstanding.
(2) The third quarter of 2023 and the fourth quarter of 2024 include an adjustment associated with a decrease in our estimated deferred state income tax rate.
*Amounts for the 2024 periods are included in Additional adjustments on the Reconciliation of Cash Flow from Operating Activities to Non-GAAP Available Funds from Operations (AFFO).





Reconciliation of "Net Income (Loss)" to "Modified EBITDA" and Non-GAAP "Adjusted EBITDA"
(UNAUDITED)
	2023															2024
(Dollars in millions)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year

Net income (loss)	$	957		$	494		$	684		$	1,168		$	3,303		$	662		$	426		$	741		$	517		$	2,346
Provision (benefit) for income taxes		284			175			176			370			1,005			193			129			227			91			640
Interest expense		294			306			314			322			1,236			349			339			338			338			1,364
Equity (earnings) losses		(147	)		(160	)		(127	)		(155	)		(589	)		(137	)		(147	)		(147	)		(129	)		(560	)
Other investing (income) loss - net		(8	)		(13	)		(24	)		(63	)		(108	)		(24	)		(18	)		(290	)		(11	)		(343	)
Proportional Modified EBITDA of equity-method investments		229			249			215			246			939			228			238			227			216			909
Depreciation and amortization expenses		506			515			521			529			2,071			548			540			566			565			2,219
Accretion expense associated with asset retirement obligations for nonregulated operations		15			14			14			16			59			18			21			17			25			81
(Income) loss from discontinued operations, net of tax		—			87			1			9			97			—			—			—			—			—
Modified EBITDA	$	2,130		$	1,667		$	1,774		$	2,442		$	8,013		$	1,837		$	1,528		$	1,679		$	1,612		$	6,656

Transmission & Gulf	$	715		$	731		$	881		$	741		$	3,068		$	829		$	808		$	811		$	825		$	3,273
Northeast G&P		470			515			454			477			1,916			504			481			476			497			1,958
West		304			312			315			307			1,238			327			318			323			344			1,312
Gas & NGL Marketing Services		567			68			43			272			950			101			(126	)		11			(110	)		(124	)
Other		74			41			81			645			841			76			47			58			56			237
Total Modified EBITDA	$	2,130		$	1,667		$	1,774		$	2,442		$	8,013		$	1,837		$	1,528		$	1,679		$	1,612		$	6,656

Adjustments ⁽¹⁾:
Transmission & Gulf	$	13		$	17		$	(127	)	$	11		$	(86	)	$	10		$	4		$	19		$	1		$	34
Northeast G&P		—			—			31			8			39			—			(2	)		8			2			8
West		(18	)		—			—			16			(2	)		1			1			7			1			10
Gas & NGL Marketing Services		(336	)		(84	)		(27	)		(203	)		(650	)		88			112			(7	)		146			339
Other		6			11			1			(553	)		(535	)		(2	)		24			(3	)		14			33
Total Adjustments	$	(335	)	$	(56	)	$	(122	)	$	(721	)	$	(1,234	)	$	97		$	139		$	24		$	164		$	424

Adjusted EBITDA:
Transmission & Gulf	$	728		$	748		$	754		$	752		$	2,982		$	839		$	812		$	830		$	826		$	3,307
Northeast G&P		470			515			485			485			1,955			504			479			484			499			1,966
West		286			312			315			323			1,236			328			319			330			345			1,322
Gas & NGL Marketing Services		231			(16	)		16			69			300			189			(14	)		4			36			215
Other		80			52			82			92			306			74			71			55			70			270
Total Adjusted EBITDA	$	1,795		$	1,611		$	1,652		$	1,721		$	6,779		$	1,934		$	1,667		$	1,703		$	1,776		$	7,080

(1) Adjustments by segment are detailed in the "Reconciliation of Income (Loss) from Continuing Operations Attributable to The Williams Companies, Inc. to Non-GAAP Adjusted Income," which is also included in these materials.





Reconciliation of Cash Flow from Operating Activities to Non-GAAP Available Funds from Operations (AFFO)
(UNAUDITED)
	2023															2024
(Dollars in millions, except coverage ratios)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year

Net cash provided (used) by operating activities	$	1,514		$	1,377		$	1,234		$	1,813		$	5,938		$	1,234		$	1,279		$	1,243		$	1,218		$	4,974
Exclude: Cash (provided) used by changes in:
Accounts receivable		(1,269	)		(154	)		128			206			(1,089	)		(314	)		44			(97	)		536			169
Inventories, including write-downs		(45	)		(19	)		7			14			(43	)		(38	)		35			1			1			(1	)
Other current assets and deferred charges		4			(28	)		29			(65	)		(60	)		(9	)		(3	)		28			(25	)		(9	)
Accounts payable		1,017			203			(148	)		(63	)		1,009			309			(90	)		98			(456	)		(139	)
Other current liabilities		318			(246	)		42			(95	)		19			218			(142	)		32			(143	)		(35	)
Changes in current and noncurrent commodity derivative assets and liabilities		(82	)		(37	)		(53	)		(28	)		(200	)		68			73			(67	)		212			286
Other, including changes in noncurrent assets and liabilities ⁽¹⁾		40			47			53			106			246			61			90			49			45			245
Preferred dividends paid		(1	)		—			(1	)		(1	)		(3	)		(1	)		—			(1	)		(1	)		(3	)
Dividends and distributions paid to noncontrolling interests		(54	)		(58	)		(62	)		(39	)		(213	)		(64	)		(66	)		(48	)		(64	)		(242	)
Contributions from noncontrolling interests		3			15			—			—			18			26			10			—			—			36
Adjustment to exclude litigation-related charges in discontinued operations		—			115			1			9			125			—			—			—			—			—
Adjustment to exclude net gain from Energy Transfer litigation judgment		—			—			—			(534	)		(534	)		—			—			—			—			—
Additional Adjustments ⁽²⁾		—			—			—			—			—			17			20			48			12			97
Available funds from operations	$	1,445		$	1,215		$	1,230		$	1,323		$	5,213		$	1,507		$	1,250		$	1,286		$	1,335		$	5,378

Common dividends paid	$	546		$	545		$	544		$	544		$	2,179		$	579		$	579		$	579		$	579		$	2,316

Coverage ratio:
Available funds from operations divided by Common dividends paid		2.65			2.23			2.26			2.43			2.39			2.60			2.16			2.22			2.31			2.32

(1) The fourth quarter of 2023 includes a $30 million gain on the remeasurement of the Rocky Mountain Midstream investment.
(2) See detail on Reconciliation of Income (Loss) from Continuing Operations Attributable to The Williams Companies, Inc. to Non-GAAP Adjusted Income.





Reconciliation of Net Income (Loss) from Continuing Operations to Modified EBITDA, Non-GAAP Adjusted EBITDA and Cash Flow from Operating Activities to Available Funds from Operations (AFFO)

	2025 Guidance
(Dollars in millions, except per-share amounts and coverage ratio)	Low		Mid			High

Net income (loss) from continuing operations	$	2,525	$	2,675		$	2,825
Provision (benefit) for income taxes		765		815			865
Interest expense				1,415
Equity (earnings) losses				(580	)
Proportional Modified EBITDA of equity-method investments				930
Depreciation and amortization expenses and accretion for asset retirement obligations associated with nonregulated operations				2,400
Other				(5	)
Modified EBITDA	$	7,450	$	7,650		$	7,850
EBITDA Adjustments				—
Adjusted EBITDA	$	7,450	$	7,650		$	7,850

Net income (loss) from continuing operations	$	2,525	$	2,675		$	2,825
Less: Net income (loss) attributable to noncontrolling interests and preferred dividends				163
Net income (loss) from continuing operations attributable to The Williams Companies, Inc. available to common stockholders	$	2,362	$	2,512		$	2,662

Adjustments:
Adjustments included in Modified EBITDA				—
Adjustments below Modified EBITDA ⁽¹⁾				18
Allocation of adjustments to noncontrolling interests				—
Total adjustments				18
Less tax effect for above items				(5	)
Adjusted income from continuing operations available to common stockholders	$	2,375	$	2,525		$	2,675
Adjusted income from continuing operations - diluted earnings per common share	$	1.94	$	2.06		$	2.18
Weighted-average shares - diluted (millions)				1,227

Available Funds from Operations (AFFO):
Net cash provided by operating activities (net of changes in working capital, changes in current and noncurrent derivative assets and liabilities, and changes in other, including changes in noncurrent assets and liabilities)	$	5,600	$	5,750		$	5,900
Preferred dividends paid				(3	)
Dividends and distributions paid to noncontrolling interests				(240	)
Contributions from noncontrolling interests				18
Additional adjustments				—
Available funds from operations (AFFO)	$	5,375	$	5,525		$	5,675
AFFO per common share	$	4.38	$	4.50		$	4.63
Common dividends paid			$	2,445
Coverage Ratio (AFFO/Common dividends paid)	2.20x		2.26x			2.32x

(1) Adjustments reflect amortization of intangible assets from Sequent acquisition

Forward-Looking Statements

The reports, filings, and other public announcements of The Williams Companies, Inc. (Williams) may contain or incorporate by reference statements that do not directly or exclusively relate to historical facts. Such statements are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended (Exchange Act). These forward-looking statements relate to anticipated financial performance, management's plans and objectives for future operations, business prospects, outcomes of regulatory proceedings, market conditions, and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995.

All statements, other than statements of historical facts, included in this report that address activities, events, or developments that we expect, believe, or anticipate will exist or may occur in the future, are forward-looking statements. Forward-looking statements can be identified by various forms of words such as "anticipates," "believes," "seeks," "could," "may," "should," "continues," "estimates," "expects," "forecasts," "intends," "might," "goals," "objectives," "targets," "planned," "potential," "projects," "scheduled," "will," "assumes," "guidance," "outlook," "in-service date," or other similar expressions. These forward-looking statements are based on management's beliefs and assumptions and on information currently available to management and include, among others, statements regarding:

Levels of dividends to Williams' stockholders;
Future credit ratings of Williams and its affiliates;
Amounts and nature of future capital expenditures;
Expansion and growth of business and operations;
Expected in-service dates for capital projects;
Financial condition and liquidity;
Business strategy;
Cash flow from operations or results of operations;
Rate case filings;
Seasonality of certain business components;
Natural gas, natural gas liquids, and crude oil prices, supply, and demand;
Demand for services.

Forward-looking statements are based on numerous assumptions, uncertainties, and risks that could cause future events or results to be materially different from those stated or implied in this report. Many of the factors that will determine these results are beyond our ability to control or predict. Specific factors that could cause actual results to differ from results contemplated by the forward-looking statements include, among others, the following:

Availability of supplies, market demand, and volatility of prices;
Development and rate of adoption of alternative energy sources;
The impact of existing and future laws and regulations, the regulatory environment, environmental matters, and litigation, as well as our ability and the ability of other energy companies with whom we conduct or seek to conduct business, to obtain necessary permits and approvals, and our ability to achieve favorable rate proceeding outcomes;
Exposure to the credit risk of customers and counterparties;
Our ability to acquire new businesses and assets and successfully integrate those operations and assets into existing businesses as well as successfully expand our facilities, and consummate asset sales on acceptable terms;
The ability to successfully identify, evaluate, and timely execute our capital projects and investment opportunities;
The strength and financial resources of our competitors and the effects of competition;
The amount of cash distributions from and capital requirements of our investments and joint ventures in which we participate;
The ability to effectively execute our financing plan;
Increasing scrutiny and changing expectations from stakeholders with respect to environmental, social, and governance practices;
The physical and financial risks associated with climate change;
The impacts of operational and developmental hazards and unforeseen interruptions;
The risks resulting from outbreaks or other public health crises;
Risks associated with weather and natural phenomena, including climate conditions and physical damage to our facilities;
Acts of terrorism, cybersecurity incidents, and related disruptions;
Costs and funding obligations for defined benefit pension plans and other postretirement benefit plans;
Changes in maintenance and construction costs, as well as our ability to obtain sufficient construction-related inputs, including skilled labor;
Inflation, interest rates, tariffs on foreign-made materials and goods (including steel and steel pipes) necessary to our business, and general economic conditions (including future disruptions and volatility in the global credit markets and the impact of these events on customers and suppliers);
Risks related to financing, including restrictions stemming from debt agreements, future changes in credit ratings as determined by nationally recognized credit rating agencies, and the availability and cost of capital;
The ability of the members of the Organization of Petroleum Exporting Countries and other oil exporting nations to agree to and maintain oil price and production controls and the impact on domestic production;
Changes in the current geopolitical situation, including the Russian invasion of Ukraine and conflicts in the Middle East;
Changes in U.S. governmental administration and policies;
Whether we are able to pay current and expected levels of dividends;
Additional risks described in our filings with the Securities and Exchange Commission (SEC).

Given the uncertainties and risk factors that could cause our actual results to differ materially from those contained in any forward-looking statement, we caution investors not to unduly rely on our forward-looking statements. We disclaim any obligations to, and do not intend to, update the above list or announce publicly the result of any revisions to any of the forward-looking statements to reflect future events or developments.

In addition to causing our actual results to differ, the factors listed above and referred to below may cause our intentions to change from those statements of intention set forth in this report. Such changes in our intentions may also cause our results to differ. We may change our intentions, at any time and without notice, based upon changes in such factors, our assumptions, or otherwise.

Because forward-looking statements involve risks and uncertainties, we caution that there are important factors, in addition to those listed above, that may cause actual results to differ materially from those contained in the forward-looking statements. For a detailed discussion of those factors, see (a) Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the SEC on February 21, 2024, (b) Part II, Item 1A. Risk Factors in subsequent Quarterly Reports on Form 10-Q, and (c) when filed with the SEC, Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2024.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250212645954/en/

MEDIA CONTACT:

[email protected]

(800) 945-8723

INVESTOR CONTACTS:

Danilo Juvane

(918) 573-5075

Caroline Sardella

(918) 230-9992

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Date	Price Target	Rating	Analyst
1/10/2025	$51.00	Sector Perform	Scotiabank
10/17/2024	$55.00	Buy	BofA Securities
10/4/2024	$52.00 → $58.00	Equal-Weight → Overweight	Morgan Stanley
7/30/2024		Buy → Neutral	Seaport Research Partners
6/20/2024		Hold → Buy	Argus
6/4/2024	$38.00 → $46.00	Equal Weight → Overweight	Wells Fargo
4/18/2024	$34.00	Peer Perform → Underperform	Wolfe Research
10/6/2023	$35.00	Neutral	Goldman

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