- Williams announced its first-quarter 2025 financial results, reporting a GAAP net income of $690 million, or $0.56 per diluted share, representing a 9% increase from Q1 2024.
- Adjusted net income for the quarter was $730 million, or $0.60 per diluted share.
- Adjusted EBITDA reached $1.989 billion, up $55 million or 3% year-over-year.
- Cash flow from operations improved to $1.433 billion, an increase of $199 million or 16% compared to Q1 2024.
- Available funds from operations totaled $1.445 billion, and the dividend coverage ratio was reported at 2.37x.
- The company achieved a record contracted transmission capacity of 34.3 Bcf/d.
- Williams raised its full-year 2025 adjusted EBITDA guidance midpoint by $50 million to $7.7 billion.
- The company received a credit upgrade to BBB+ from S&P and a positive outlook from Moody’s.
- The company has commercialized Socrates, a $1.6 billion Power Innovation project to support growing AI demand in Ohio.
- Transco's Power Express expansion project will serve the Virginia market by 3Q 2030.
- Williams acquired approximately a 10% interest in Cogentrix Energy to enhance market intelligence and gas supply opportunities.
- The company placed multiple expansions into service in early April 2025.
- Several construction projects are ongoing, including the Alabama Georgia Connector and MountainWest expansion.
- CEO Alan Armstrong highlighted that the base business is driving higher earnings and recent investments are positioned for growth.
- The company elevated its outlook for future growth, emphasizing the ability to capture new business in the emerging natural gas market.
- Q1 2025 showed favorable results largely due to expansions, acquisitions, and upstream operations, despite higher operating costs and depreciation expenses.
- The company anticipates continued investments to drive earnings growth as it meets increasing demand for natural gas and renewables.
Williams Announces Strong First-Quarter 2025 Results and Raises Full-Year 2025 Guidance
May 5, 2025 4:15 PM Eastern Daylight Time
TULSA, Okla.--(
BUSINESS WIRE)--Williams (NYSE: WMB) today announced its unaudited financial results for the three months ended March 31, 2025.
Performance of base business drives results across key financial metricsGAAP net income: $690 million, or $0.56 per diluted share (EPS), up 9% and 8%, respectively, vs. 1Q 2024
Adjusted net income: $730 million, or $0.60 per diluted share (Adj. EPS)
Adjusted EBITDA: $1.989 billion – up $55 million or 3% vs. 1Q 2024
Cash flow from operations (CFFO): $1.433 billion – up $199 million or 16% vs. 1Q 2024
Available funds from operations (AFFO): $1.445 billion
Dividend coverage ratio: 2.37x (AFFO basis)
Record contracted transmission capacity of 34.3 Bcf/d
Increasing 2025 Adj. EBITDA guidance midpoint by $50 million to $7.7 billion
Achieved credit upgrade to BBB+ from S&P; assigned a positive outlook by Moody’s
Continued execution on strategic priorities positions company for future growthCommercialized Socrates, a $1.6 billion Power Innovation project to serve growing AI demand in Ohio, backed by a long-term, fixed-price power purchase agreement
Announcing Transco's Power Express expansion, a 950 MMcf/d project to serve the power-hungry Virginia market by 3Q 2030
Enhanced market intelligence and gas supply opportunities with an acquired ~10% interest in Cogentrix Energy
Transco expansions: Placed Texas to Louisiana Energy Pathway and Southeast Energy Connector into service April 1, 2025; started construction on Alabama Georgia Connector
MountainWest expansion: Started construction on the Overthrust Westbound Expansion
Deepwater projects: Placed Whale and Ballymore in-service; progressing on remaining deepwater projects in execution that will drive earnings growth in 2025 with an additional step up in 2026
CEO Perspective
Alan Armstrong, president and chief executive officer, made the following comments:
"Once again, our base business drove higher earnings for the quarter with recently commissioned Transco projects contributing additional fee-based revenues while our consolidated Crowheart upstream operations also drove growth. As a result of our recent investment in Cogentrix Energy and the continued outperformance of our base business, we are raising our Adjusted EBITDA guidance midpoint by $50 million to $7.7 billion.
"Our team is executing on a string of high-return projects that will accelerate earnings growth throughout the balance of the year, while continuing to add significant projects to our backlog. Notably, we commercialized Socrates, our first Power Innovation project that will deliver speed-to-market solutions for growing AI demand in Ohio. In addition, we announced Transco’s Power Express expansion to serve the power-hungry Virginia market. We are encouraged by what we see on the data center opportunity front, and our acquisition of a minority interest in Cogentrix Energy will enhance our Sequent market intelligence and give us line of sight to how we can better serve the growing power markets with gas supply."
Armstrong added, "Our business is firing on all cylinders and our track record of generating predictable, growing earnings in a variety of economic cycles underscores the value of Williams as a stable, long-term investment with a strong dividend. With an ever-expanding backlog of fully contracted projects extending beyond 2030 and our ability to capture new business in emerging markets, Williams is well positioned to benefit from the coming wave of natural gas demand from the power generation market and LNG exports, while continuing to deliver on traditional market needs."
GAAP Measures
First-quarter 2025 net income increased by $59 million compared to the prior year reflecting a $98 million increase in service revenues driven by expansion projects and acquisitions, a favorable change of $60 million in net unrealized gains/losses on commodity derivatives, and higher realized results from upstream operations, including contributions from the fourth-quarter 2024 Crowheart acquisition. These favorable changes were partially offset by higher operating costs and depreciation resulting from expansion projects and acquisitions, as well as lower commodity marketing margins.
First-quarter 2025 cash flow from operations increased compared to the prior year primarily due to favorable net changes in working capital and derivative collateral requirements.
Non-GAAP Measures
First-quarter 2025 Adjusted EBITDA increased by $55 million over the prior year, driven by the previously described favorable net contributions from acquisitions, expansion projects, and upstream results, partially offset by lower commodity marketing margins.
First-quarter 2025 Adjusted Net Income improved compared to 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.
First-quarter Available Funds From Operations (AFFO) decreased by $62 million compared to the prior year primarily due to higher current income taxes and lower contributions from noncontrolling interests.
Business Segment Results & Form 10-Q
Williams' operations are comprised of the following reportable segments: Transmission & Gulf of America, Northeast G&P, West and Gas & NGL Marketing Services, as well as Other. For more information, see the company's first-quarter 2025 Form 10-Q.
Transmission & Gulf of America
First-quarter 2025 Modified and Adjusted EBITDA improved compared to the prior year driven by favorable net contributions from the Regional Energy Access and Southside Reliability Enhancement expansion projects and increased Gulf production, offset by one less billable day. Modified EBITDA for the 2024 period was impacted by one-time acquisition costs, which are excluded from Adjusted EBITDA.
Northeast G&P
First-quarter 2025 Modified and Adjusted EBITDA increased over the prior year driven by higher rates and volumes at Ohio Valley Midstream and higher commodity-based rates at Laurel Mountain Midstream, partially offset by the absence of Aux Sable, which was sold in third-quarter 2024.
West
First-quarter 2025 Modified and Adjusted EBITDA increased compared to the prior year benefiting from higher commodity margins and contributions from Overland Pass Pipeline, partially offset by lower Eagle Ford revenues associated with reduced MVC targets.
Gas & NGL Marketing Services
First-quarter 2025 Modified EBITDA increased from the prior year primarily reflecting a $92 million net favorable change in unrealized gains/losses on commodity derivatives, which is excluded from Adjusted EBITDA, partially offset by lower natural gas marketing margins.
Other
First-quarter 2025 Modified EBITDA was consistent with the prior year, while Adjusted EBITDA increased, as improved realized results from upstream operations, including contributions from the fourth-quarter 2024 Crowheart acquisition, were largely offset by a $32 million net unfavorable change in unrealized gains/losses on commodity derivatives, which is excluded from Adjusted EBITDA.
2025 Financial Guidance
The company is raising the midpoint of its 2025 Adjusted EBITDA guidance by $50 million to $7.7 billion within the range of between $7.5 billion and $7.9 billion. The company expects 2025 growth capex between $2.575 billion and $2.875 billion and maintenance capex between $650 million and $750 million, excluding capital of $150 million for emissions reduction and modernization initiatives. Williams expects its leverage ratio midpoint for 2025 to be 3.65x and has increased the dividend by 5.3% on an annualized basis to $2.00 in 2025 from $1.90 in 2024.
Williams' First-Quarter 2025 Materials to be Posted Shortly; Q&A Webcast Scheduled for Tomorrow
Williams' first-quarter 2025 earnings presentation will be posted at
www.williams.com. The company's first-quarter 2025 earnings conference call and webcast with analysts and investors is scheduled for Tuesday, May 6, 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-conf.media-server.com/register/BI2bb506d86b4c4aa984859d59580f6dc0A 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.
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