Williams Announces Record First-Quarter 2026 Results

Williams Companies recorded record earnings in the first quarter of 2026 driven by a 13% gain in its EBITDA reaching $2.25 billion.

The Tulsa company, in announcing its unaudited financial results for the three months ended March 31, 2026, credited strong performance in the company’s natural gas transmission and storage segments. Williams also raised its 2026 guidance and highlighted a $7.3 billion growth CapEx at midpoint for its expansion projects.

Adjusted net income totaled $895 million or 73 cents a share. The income was 23% higher than a year ago while the share total went up 22% compared to 12 months earlier.

Cash flow from Williams operations rose $170 million or 12% to reach $1.603 billion

Natural gas-focused strategy continues to drive key financial results

• GAAP net income: $864 million, or $0.70 per diluted share (EPS), up 25% vs. 1Q 2025
• Adjusted net income: $895 million, or $0.73 per diluted share (Adj. EPS), up 23% and 22%, respectively, vs. 1Q 2025
• Adjusted EBITDA: $2.254 billion, up $265 million or 13% vs. 1Q 2025
• Cash flow from operations (CFFO): $1.603 billion, up $170 million or 12% vs. 1Q 2025
• Available funds from operations (AFFO): $1.770 billion, up $325 million or 22% vs. 1Q 2025
• Dividend coverage ratio: 2.76x (AFFO basis)
• On track to deliver Adjusted EBITDA in upper half of 2026 guidance range

Disciplined execution drives business growth, advances projects and optimizes portfolio

• Signed customer agreement on Neo, a $2.3 billion behind-the-meter power innovation project with 682 megawatts of installed capacity
• Signed natural gas infrastructure agreement for Atlas, providing up to 164 MMcf/d of capacity to Northeast data center
• Signed customer agreements on Silver Spur transmission project, a 275 MMcf/d expansion on Northwest Pipeline
• Announced ~700 MMcf/d of gathering expansions in Marcellus and Haynesville
• Upsized Transco’s Power Express project, increasing capacity to 750 MMcf/d
• Started construction on Transco’s Northeast Supply Enhancement and Southeast Supply Enhancement projects
• Placed in service Northwest Pipeline’s Naughton Coal Conversion and received notice to proceed on Northwest Pipeline’s Wild Trail project
• Commissioned Aristotle pipeline for Plato South power innovation facility
• Closed on sale of South Mansfield upstream JV and Anadarko gathering

CEO Perspective

Chad Zamarin, president and chief executive officer, made the following comments:

“Williams delivered a strong first quarter, supported by the ongoing success of our natural gas-focused strategy and the performance of our premier assets. First-quarter GAAP net income increased 25% year-over-year to $864 million, and Adjusted EBITDA grew 13% year-over-year to $2.254 billion – driven by Transco’s expansion projects, new Gulf volumes, higher storage revenues and higher gathering volumes in the West.”

“Our teams continue to execute at an excellent pace on transmission expansions while adding to our portfolio of power innovation projects. Among several first quarter accomplishments, we placed Northwest Pipeline’s Naughton Coal Conversion into service and broke ground on Transco’s NESE and SESE projects. In addition, we commissioned the Aristotle pipeline to support data centers in Ohio, including the Socrates power innovation facility, and signed a customer agreement for Project Neo, a new behind-the-meter power innovation project.”

Zamarin added, “Natural gas demand is rising, our contracted project portfolio is growing and we’re staying focused on the sharp execution of projects which will drive higher earnings, stable cash flows and strong, durable returns for shareholders. I want to thank our employees and the customers we partner with to safely and reliably serve our nation’s energy needs. Together, we will continue to deliver energy infrastructure solutions that seek to lower energy costs.”

First-quarter 2026 net income increased by $174 million compared to the prior year, benefiting from:

• $203 million of higher service revenues driven by Transco’s higher net rates and expansion projects, new Gulf volumes, higher storage revenues, and higher gathering volumes in the West including acquisitions,
• Higher gas marketing margins, and
• A gain of $182 million from the sale of the South Mansfield upstream interests.

These favorable changes were partially offset by:

• An unfavorable change of $193 million in net unrealized gains/losses on commodity derivatives,
• An increase in operating expenses,
• Higher net interest expense associated with changes in the debt portfolio, and
• A higher provision for income taxes driven by increased pre-tax income.

First-quarter 2026 cash flow from operations increased $170 million compared to the prior year primarily due to higher operating results exclusive of non-cash items and increased distributions from equity-method investees impacted by timing of receipt, partially offset by unfavorable net changes in derivative collateral requirements.

Non-GAAP Measures

First-quarter 2026 Adjusted EBITDA increased by $265 million over the prior year driven by the previously described increases in service revenues and gas marketing margins, partially offset by higher operating expenses.

First-quarter 2026 Adjusted Net Income improved by $165 million 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 the gain from the sale of the South Mansfield upstream interests.

First-quarter 2026 Available Funds From Operations (AFFO) increased by $325 million compared to the prior year primarily due to higher adjusted operating results exclusive of noncash items and a favorable change in the current component of the income tax provision.