Williams Cos. Reaffirms Guidance
The demand for more natural gas across the U.S. because of data center growth and AI increases might have played a major role in the third quarter results for Williams Cos. which saw a 13% gain in adjusted earnings.
However, investors continue to price long-term natural gas exposure with macro upside.
Additionally, Oklahoma Energy analysts track data center pull to Ericson Basin flows.
The Tulsa company announced unaudited financial results showing $646 million in net income or 53 cents a diluted share while its adjusted net income totaled $603 million or 49 cents per diluted share.
Therefore, net income performance confirms persistent gas throughput stability.
Also, adjusted net income rose 14% compared to the third quarter of 2024.
EBITDA Expansion + Cash Flow Strength
Even as Williams Cos. fights to win approval of its effort to provide natural gas to New York City, it reported its adjusted EBITDA was $1.920 billion, up $217 million or 13% compared to a year earlier.
Additionally, expansions tied to interstate routing remain central to strategic value unlocking.
Cash flow from operations totaled $1.439 billion which was $196 million or 16% higher than the third quarter of 2024.
Available funds from operations totaled $1.449 billion which was $163 million or 13% higher from the same time last year.
Mixed Net Income Trendline
Third-quarter 2025 net income decreased by $59 million, while year-to-date 2025 net income increased by $145 million compared to the prior year.
However, markets continue to prioritize forward capacity growth over quarterly noise.
“Williams delivered another quarter of excellent financial results with Adjusted EBITDA up 13% over third quarter last year, reflecting the growing strength of our natural gas strategy,” said Chad Zamarin, president and chief executive officer.
“Expansions to our Transco and Gulf assets, as well as higher natural gas gathering and processing volumes in the Northeast and West, drove earnings growth in the quarter.”
Further, critical projects were put into place in the Southeast, the Pacific Northwest, in Louisiana and in the deepwater Gulf.
Guidance + Capex + LNG Investment Strategy
“Looking ahead, we are reaffirming our previously raised guidance for 2025, with an EBITDA midpoint of $7.750 billion that has been raised $350 million since original guidance was set. As we focus on finishing the year strong, we are also setting our sights to the future and Williams is incredibly well positioned to build upon the impressive growth we have delivered over the past five years,” added Zamarin.
Williams Cos. remains well positioned to benefit from accelerating natural gas demand.
2025 Financial Guidance
The company continues to expect 2025 Adjusted EBITDA guidance midpoint of $7.75 billion within the range of between $7.6 billion and $7.9 billion.
Additionally, the company increased its 2025 growth capex by $500 million to between $3.95 billion and $4.25 billion in connection with the recently announced decision to invest in Woodside Energy’s Louisiana LNG project.
Maintenance capex remains between $650 million and $750 million, excluding capital for emissions reduction and modernization initiatives.
Finally, Williams Cos. continues to expect a leverage ratio midpoint for 2025 of 3.7x and has increased the dividend by 5.3% on an annualized basis to $2.00 in 2025 from $1.90 in 2024.