Higher earnings were reported by Williams in its first quarter driven by a $59 million increase in net income while adjusted EBITDA reached $1.9 billion.
Net income totaled $690 million or 56 cents a share. Both were higher than a year earlier…net income gained 9% and share income rose 8%. Adjusted net income was $730 million or 60 cent a share.
“Our business is firing on all cylinders and our track record of generating predictable, growing earnings in a variety of economic cycles underscores the value of Williams as a stable, long-term investment with a strong dividend,” said Alan Armstrong, CEO and President. “With an ever-expanding backlog of fully contracted projects extending beyond 2030 and our ability to capture new business in emerging markets, Williams is well positioned to benefit from the coming wave of natural gas demand from the power generation market and LNG exports, while continuing to deliver on traditional market needs.”
Williams recorded Adjusted EBITDA of $1.989 billion which was $55 million or 3% more than the first quarter of 2024. The first quarter 2025 cash flow from operations increased $199 million or 16% reaching $1.433 billion. It also left $1.445 billion in available funds from the operations.
“Once again, our base business drove higher earnings for the quarter with recently commissioned Transco projects contributing additional fee-based revenues while our consolidated Crowheart upstream operations also drove growth. As a result of our recent investment in Cogentrix Energy and
the continued outperformance of our base business, we are raising our Adjusted EBITDA guidance midpoint by $50 million to $7.7 billion,” remarked Armstrong.
• Available funds from operations (AFFO): $1.445 billion
• Dividend coverage ratio: 2.37x (AFFO basis)
• Record contracted transmission capacity of 34.3 Bcf/d
• Increasing 2025 Adj. EBITDA guidance midpoint by $50 million to $7.7 billion
• Achieved credit upgrade to BBB+ from S&P; assigned a positive outlook by Moody’s
Continued execution on strategic priorities positions company for future growth
• Commercialized Socrates, a $1.6 billion Power Innovation project to serve growing AI demand in
Ohio, backed by a long-term, fixed-price power purchase agreement
• Announcing Transco’s Power Express expansion, a 950 MMcf/d project to serve the powerhungry Virginia market by 3Q 2030
• Enhanced market intelligence and gas supply opportunities with an acquired ~10% interest in
Cogentrix Energy
• Transco expansions: Placed Texas to Louisiana Energy Pathway and Southeast Energy
Connector into service April 1, 2025; started construction on Alabama Georgia Connector
• MountainWest expansion: Started construction on the Overthrust Westbound Expansion
• Deepwater projects: Placed Whale and Ballymore in-service; progressing on remaining deepwater projects in execution that will drive earnings growth in 2025 with an additional step
up in 2026
GAAP Measures
First-quarter 2025 net income increased by $59 million compared to the prior year reflecting a $98 million increase in service revenues driven by expansion projects and acquisitions, a favorable change of $60 million in net unrealized gains/losses on commodity derivatives, and higher realized results from
upstream operations, including contributions from the fourth-quarter 2024 Crowheart acquisition. These favorable changes were partially offset by higher operating costs and depreciation resulting from expansion projects and acquisitions, as well as lower commodity marketing margins.
First-quarter 2025 cash flow from operations increased compared to the prior year primarily due to favorable net changes in working capital and derivative collateral requirements.
Non-GAAP Measures
First-quarter 2025 Adjusted EBITDA increased by $55 million over the prior year, driven by the previously described favorable net contributions from acquisitions, expansion projects, and upstream results, partially offset by lower commodity marketing margins.
First-quarter 2025 Adjusted Net Income improved compared to the prior year, driven by the previously described impacts to net income, adjusted primarily to remove the effects of net unrealized gains/losses on commodity derivatives.
First-quarter Available Funds From Operations (AFFO) decreased by $62 million compared to the prior year primarily due to higher current income taxes and lower contributions from noncontrolling interests.