With a growing demand for natural gas nationwide, you would expect improved earnings for Tulsa-based Williams and that’s just what happened. Not just “improved” earnings but very improved earnings as the company released its second quarter earnings report.
As company President and CEO Chad Zamarin said in releasing the figures, “Williams delivered another outstanding quarter with Adjusted EBITDA up 8% over second quarter last year, driven primarily by Transco expansions and new volumes in the Gulf as well as higher volumes in our Northeast and West gathering and processing segments.”
“With the continued strength of our base business and our recent acquisition of Saber Midstream in the Haynesville, we expect earnings growth to continue to build in the second half of the year. As a result, we are raising our 2025 Adjusted EBITDA guidance midpoint again by $50 million to $7.75 billion, for a total increase of $350 million from our original 2025 guidance.”
Second-quarter and year-to-date 2025 net income increased by $145 million and $204 million, respectively, compared to the prior year. Both comparative periods benefited from higher service
revenues of $204 million and $302 million, respectively, driven by Transco expansion projects, new Gulf volumes, and higher gathering and processing volumes in the Northeast and West, as well as favorable changes of $167 million and $227 million, respectively, in net unrealized gains/losses on commodity
derivatives.
Net income totaled $546 million or $0.45 per diluted share and adjusted net income was $566 million or $0.56 per share, up 9% and 7% respectively compared to the second quarter of 2024.
The company’s adjusted EBITDA was $1.808 billion, up $141 million or 8% compared to a year ago. It resulted in cash flow from operations of $1.45 billion, which represented a gain of $171 million or 13% compared to the second quarter 2024. It also meant available funds from operations totaled $1.317 billion, or $67 million higher and 5% more than a year earlier.
Williams, hoping to win approval of a bid to enter New York state with a gas pipeline project that the state denied a few years ago increased its 2025 adjusted EBITDA guidance midpoint by another $50 million, raising it to $7.75 billion.
During the quarter, Williams put Transco’s Texas to Louisiana Energy Pathway and Southeast Energy Connector expansion projects into service April 1, 2025; Accelerated timeline for Transco’s Southeast Supply Enhancement project; Signed precedent agreement for Transco’s Northeast Supply Enhancement; Transco and Gulfstream achieved all-time records for summer natural gas volumes’; Acquired Saber Midstream, enhancing Haynesville gathering footprint; Broke ground on Socrates, a $1.6 billion Power Innovation project to serve growing AI demand; Placed deepwater Ballymore and Shenandoah expansions in-service; and Placed Louisiana Energy Gateway in-service and completed Haynesville West expansion.
Non-GAAP Measures
Second-quarter 2025 Adjusted EBITDA increased by $141 million over the prior year, driven by the previously described increases in service revenues, partially offset by higher operating costs and lower equity AFUDC. Year-to-date 2025 Adjusted EBITDA increased by $196 million over the prior year, driven by the previously described increases in service revenues and higher net realized results from upstream operations, partially offset by higher operating and administrative costs and lower equity
AFUDC. Both periods also benefited from adjustments to reflect the timing of Transco’s rate case.
Second-quarter and year-to-date 2025 Adjusted Net Income improved by $45 million and $56 million, respectively, over 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 and reflect the timing of Transco’s rate case, as well as the related income tax effects of such adjustments.
Second-quarter 2025 Available Funds From Operations (AFFO) increased by $67 million compared to the prior year primarily due to higher results from operations, exclusive of non-cash items, and higher distributions from equity-method investees. Year-to-date 2025 AFFO increased by $5 million compared to the prior year as increased distributions from equity-method investees were substantially offset by lower contributions from noncontrolling interests.