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
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: media@williams.com (800) 945-8723
INVESTOR CONTACTS: Danilo Juvane (918) 573-5075
Caroline Sardella (918) 230-9992
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