Williams (WMB) Q1 2026 Financial Results Summary

Released on May 4, 2026, Williams (NYSE: WMB) reported its financial results for the first quarter ending March 31, 2026. The company showcased a robust performance driven by its natural gas-focused strategy and strong operational execution.

Key Financial Highlights:

• GAAP Net Income: $864 million, or $0.70 per diluted share, reflecting a 25% increase compared to Q1 2025.
• Adjusted Net Income: $895 million, or $0.73 per diluted share, which is a 23% increase year-over-year.
• Adjusted EBITDA: $2.254 billion, up 13% or $265 million compared to last year.
• Cash Flow from Operations (CFFO): $1.603 billion, showing an increase of 12% or $170 million over Q1 2025.
• Available Funds from Operations (AFFO): $1.770 billion, a 22% increase or $325 million from the prior year.
• Dividend Coverage Ratio: 2.76x on an AFFO basis, improved from 2.37x in Q1 2025.

Operational Highlights:

• Established customer agreements for multiple projects:
  • Project Neo: A $2.3 billion behind-the-meter power innovation project.
  • Atlas: A natural gas infrastructure project for data centers, providing up to 164 MMcf/d of capacity.
  • Expansion of the Silver Spur transmission project for 275 MMcf/d on Northwest Pipeline.
  • Commissioned gathering expansions totaling approximately 700 MMcf/d in Marcellus and Haynesville regions.
  • Increased capacity for Transco's Power Express project to 750 MMcf/d.
• Initiated construction on newly critical projects, including Transco's Northeast Supply Enhancement and Southeast Supply Enhancement.

CEO Remarks:

CEO Chad Zamarin emphasized the success of their natural gas-focused strategy and highlighted operational achievements, including expansions and project commissions. He noted the rising natural gas demand and the company’s commitment to providing reliable energy infrastructure solutions while optimizing project execution to enhance growth and returns for shareholders.

Financial Metrics Comparison (Q1 2026 vs. Q1 2025):

• Net Income: Increased by $174 million from $690 million to $864 million.
• Adjusted Net Income: Grew by $165 million from $730 million to $895 million.
• Adjusted EBITDA: Rose by $265 million from $1.989 billion to $2.254 billion.
• CFFO: Increased by $170 million, rising from $1.433 billion to $1.603 billion.
• AFFO: Increased by $325 million, from $1.445 billion to $1.770 billion.
• Weight average shares diluted: Increased from 1,225 million to 1,226 million.

Capital Investments:

Williams reported capital investments amounting to $1.642 billion, which is significantly higher than $670 million in Q1 2025, showing strategic growth investments.

Dividend Announcement:

Williams has increased its annual dividend by 5%, raising it from $2.00 in 2025 to $2.10 for 2026. In Q1 2026, $642 million was paid in common dividends.

Looking Ahead:

The company is on track to deliver adjusted EBITDA in the upper half of its guidance range for 2026, which is projected between $8.05 billion and $8.35 billion. Overall, Williams continues to focus on disciplined execution and strategic growth through its natural gas initiatives and infrastructure developments, aiming to enhance long-term value for its shareholders.

Note: All amounts in the following tables are in millions.

Consolidated Statement of Income

Revenues	2026	2025
Service revenues	$2,206	$2,003
Service revenues – commodity consideration	46	49
Product sales	1,137	1,058
Net gain (loss) from commodity derivatives	-359	-62
Total revenues	3,030	3,048
Costs and expenses:
Product costs	543	615
Net processing commodity expenses	15	28
Operating and maintenance expenses	565	542
Depreciation, depletion, and amortization expenses	584	585
General and administrative expenses	193	194
Gain on sale of certain assets	-182	—
Other operating (income) expense – net	-9	-10
Total costs and expenses	1,709	1,954
Operating income (loss)	1,321	1,094
Equity earnings (losses)	161	155
Other investing income (loss) – net	24	8
Interest expense	-376	-349
Other income (expense) – net	26	14
Income (loss) before income taxes	1,156	922
Less: Provision (benefit) for income taxes	244	193
Net income (loss)	912	729
Less: Net income (loss) attributable to noncontrolling interests	47	38
Net income (loss) attributable to The Williams Companies, Inc.	865	691
Less: Preferred stock dividends	1	1
Net income (loss) available to common stockholders	$864	$690
Basic earnings (loss) per common share:
Net income (loss) available to common stockholders	$0.71	$0.57
Weighted-average shares (millions)	1,223	1,221
Diluted earnings (loss) per common share:
Net income (loss) available to common stockholders	$0.70	$0.56
Weighted-average shares (millions)	1,226	1,225

Consolidated Balance Sheet

ASSETS	March 31, 2026	December 31, 2025
Current assets:
Cash and cash equivalents	$950	$63
Trade accounts and other receivables (net of allowance of ($1) at March 31, 2026 and December 31, 2025)	1,676	2,084
Inventories	262	314
Assets held for sale	—	318
Derivative assets	172	209
Other current assets and deferred charges	260	256
Total current assets	3,320	3,244
Investments	4,520	4,559
Property, plant, and equipment	63,613	62,010
Accumulated depreciation, depletion, and amortization	-20,479	-20,014
Property, plant, and equipment – net	43,134	41,996
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