Slides
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NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.comWILLIAMS © 2025 The Williams Companies, Inc. All rights reserved 1 Williams 1st Quarter 2025 Earnings Call May 6, 2025
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NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.comWILLIAMS © 2025 The Williams Companies, Inc. All rights reserved 2 Continued execution on strategic priorities NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.comWILLIAMS © 2025 The Williams Companies, Inc. All rights reserved 2 z 1Q ANNOUNCEMENTS ▪ Commercialized the Socrates power generation project ▪ Signed precedent agreement for Transco’s Power Express expansion ▪ Enhanced market intelligence and gas supply opportunities with an acquired minority interest in Cogentrix Energy OPERATIONAL EXECUTION ▪ Started construction on Transco’s Alabama Georgia Connector and MountainWest’s Overthrust Westbound Expansion ▪ Placed Transco’s Texas to Louisiana Energy Pathway and Southeast Energy Connector in-service ▪ Completed Whale and Ballymore projects in the deepwater FINANCIAL STRENGTH ▪ Increased 2025 Adjusted EBITDA guidance midpoint by $50MM ▪ Raised 2025 growth capex by $925MM for Socrates project ▪ Achieved credit upgrade to BBB+ from S&P; Assigned a positive outlook by Moody’s ▪ Raised 2025 dividend by 5.3%
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NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.comWILLIAMS © 2025 The Williams Companies, Inc. All rights reserved 3 Note: This slide contains non-GAAP financial measures. A reconciliation of all non-GAAP financial measures used in this presentation to their nearest comparable GAAP financial measures is included at the back of this presentation. Achieved 3% growth 1Q 2025 vs. 1Q 2024 Key Earnings Drivers TRANSMISSION & GULF Higher earnings driven by Transco expansions, favorable storage re-contracting, the Discovery consolidation, higher Transco rates, and increased Gulf production; partially offset by one less billable day at Transco and Northwest Pipeline NORTHEAST G&P Increased revenues driven by favorable rate adjustments across several franchises and higher commodity-based rates in Laurel Mountain; partially offset by the Aux Sable divestment and decreased gathering volumes WEST Increased earnings driven by stronger NGL margins, higher OPPL volumes, and the Rimrock asset purchase; partially offset by a step down in the Eagle Ford MVC GAS & NGL MARKETING SERVICES Lower gas marketing results driven by lower transportation margins and storage gains WMB Adjusted EBITDA ($MM): 1Q 2025 vs. 1Q 2024 $1,650 $1,750 $1,850 $1,950 $2,050 1Q 20251Q 2024 Transmission & Gulf Northeast G&P Other ($7) $37 $1,989 $1,934 West $23 Upstream Operations in Other $10 $26 ($34) Gas & NGL Marketing Services
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NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.comWILLIAMS © 2025 The Williams Companies, Inc. All rights reserved 4 *Based on the midpoint of 2025 Adjusted EBITDA guidance. Note: This slide contains non-GAAP financial measures. A reconciliation of all non-GAAP financial measures used in this presentation to their nearest GAAP comparable financial measures are included at the back of this presentation. Clear line-of-sight to continued earnings growth $5.1 $5.6 $6.4 $6.8 $7.1 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 2020 2021 2022 2023 2024 2025G Series 1 Adjusted EBITDA ($B) Resilient gathering & processing operations ▪ Continued expectation of overall volume growth ▪ Louisiana Energy Gateway project Significant fully -contracted growth ▪ Transmission expansions ▪ Deepwater Gulf projects ▪ Storage re-contracting ▪ Transco rate case Accretive bolt -on transactions ▪ Cogentrix investment ▪ Rimrock asset purchase ▪ Transactions closed prior to 2025 $7.5 - $7.9B CAGR 2020 – 2025G Growth ‘25G vs ‘24 9% *
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NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.comWILLIAMS © 2025 The Williams Companies, Inc. All rights reserved 5 Platform for continued success Well - positioned to lead in the “golden age of natural gas” Track record of execution Steadfast project execution positions Williams as a leader in the clean energy future. Natural gas focused strategy Our infrastructure is critical to provide reliable energy to meet growing demand both domestically and abroad. Creating long-term shareholder value Continuing to drive value creation to shareholders through strong balance sheet, durable returns, growing dividend, and high return growth projects.
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NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.comWILLIAMS © 2025 The Williams Companies, Inc. All rights reserved 6 Appendix
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NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.comWILLIAMS © 2025 The Williams Companies, Inc. All rights reserved 7 1Does 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. 2Capital investments includes increases to property, plant, and equipment (growth & maintenance), purchases of and contributions to equity-method investments and purchases of other long-term investments. 31Q 2025 capital excludes $319 million for the Rimrock asset purchase, which closed January 2025; $153 million for the investment in Cogentrix, which closed March 2025; and $1 million for an adjustment of the Crowheart acquisition and Discovery consolidation, which closed in 2024. 1Q 2024 capital excludes $1.851 billion for the acquisition of the Gulf Coast Storage assets, which closed January 2024. Note: In $ millions except for ratios and per-share amounts. This slide contains non-GAAP financial measures. A reconciliation of all non-GAAP financial measures used in this presentation to their nearest comparable GAAP financial measures is included at the back of this presentation. Key financial metrics Balance Sheet Strength and Capital Discipline Debt-to-Adjusted EBITDA1 Capital Investments2,3 Strong Financial Performance Across Key Metrics Adjusted EBITDA Adjusted Earnings per Share Available Funds from Operations Dividend Coverage Ratio (AFFO basis) 3.83x 3.79x $670 $563 1Q 2025 1Q 2024 Change $1,989 $1,934 3% $0.60 $0.59 2% $1,445 $1,507 (4%) 2.37x 2.60x (9%)
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NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.comWILLIAMS © 2025 The Williams Companies, Inc. All rights reserved 8 Note: This slide contains non-GAAP financial measures. A reconciliation of all non-GAAP financial measures used in this presentation to their nearest comparable GAAP financial measures is included at the back of this presentation. Achieved 12% growth 1Q 2025 vs. 4Q 2024 WMB Adjusted EBITDA ($MM): 1Q 2025 vs. 4Q 2024 $1,450 $1,600 $1,750 $1,900 $2,050 1Q 20254Q 2024 Transmission & Gulf Northeast G&P Other ($2) $36 $1,989 $1,776 West $36 Upstream Operations in Other $15 $9 $119 Gas & NGL Marketing Services Key Earnings Drivers TRANSMISSION & GULF Higher earnings due to favorable segment costs, increased short-term firm and park and loan services, Transco expansions, higher Transco rates, and increased Gulf production; partially offset by two less billable days at Transco and Northwest Pipeline NORTHEAST G&P Increased revenues driven by increased dry gas volumes, favorable rate adjustments across several franchises, and higher commodity-based rates in Laurel Mountain; partially offset by decreased rich-gas volumes WEST Increased earnings driven by the Rimrock asset purchase and higher commodity margins; partially offset by a step down in the Eagle Ford MVC GAS & NGL MARKETING SERVICES Higher earnings driven by strong storage margins and stronger transportation margins across East, Gulf Coast, and Midwest regions
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NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.comWILLIAMS © 2025 The Williams Companies, Inc. All rights reserved 9 *Based on midpoint of guidance, updated May 2025. 1From continuing operations attributable to Williams available to common stockholders. 2Book Debt-to-Adjusted EBITDA ratio does not represent leverage ratios measured for WMB credit agreement compliance or leverage ratios as calculated by the major credit ratings agencies. Consolidated debt is net of cash on hand. 3Growth Capex excludes acquisitions. 4Emissions reduction program. This slide contains non-GAAP financial measures. A reconciliation of all non-GAAP financial measures used in this presentation to their nearest comparable GAAP financial measures is included at the back of this presentation. Financial guidance assumes approximately $300 million of total cash income taxes in 2025. Cash income taxes might be materially reduced or eliminated if 100% bonus depreciation is restored and/or capital investments are added. 2025 financial guidance Financial Metric 2024 Actuals Updated 2025 Guidance Y/Y Growth* Adjusted EBITDA $7.080B $7.5B - $7.9B 9% Adjusted Diluted EPS1 $1.92 $1.94 - $2.18 7% Available Funds From Operations (AFFO) $5.378B $5.375B - $5.675B 3% AFFO Per Share $4.40 $4.38 - $4.63 2% Dividend Coverage Ratio 2.32x 2.26x 3% Debt-to-Adjusted EBITDA2 3.79x ~3.65x (midpoint) 4% Growth CAPEX3 $1.50B $2.575B - $2.875B Maintenance CAPEX (Includes ERP4 modernization) $1.21B $800MM - $900MM ($100MM- $200MM) Dividend Growth Rate 6.1% growth 5.3% growth
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NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.comWILLIAMS © 2025 The Williams Companies, Inc. All rights reserved 10 Recent accomplishments Acquired ~10% interest in Cogentrix; Enhancing market intelligence, creating growth opportunities, expanding Sequent’s platform, and bolstering the Gas and NGL Marketing Services segment Cogentrix Investment Signed precedent agreement for Transco’s Power Express expansion; Started construction on Transco’s Alabama Georgia Connector and MountainWest’s Overthrust Westbound Expansion; Placed Transco’s Southeast Energy Connector and Texas to Louisiana Energy Pathway in-service Transmission Expansions Commercialized the Socrates power generation project, a $1.6 billion power innovation project in Ohio with a ~5x Adj. EBITDA multiple, backed by a long-term fixed-price power purchase agreement Power Generation Announcement Increased Williams’ quarterly dividend 5.3% to $0.50 per share, or $2.00 annualized, up from Williams’ 2024 quarterly dividend of $0.4750 per share, or $1.90 annualized; demonstrating continued commitment to Williams’ long-standing dividend program Dividend Distributions Received S&P credit rating upgrade to BBB+ from BBB; Assigned a positive outlook by Moody’s, updated from stable; Maintained a positive outlook from Fitch Credit Rating Upgrades 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 Deepwater Gulf Expansions
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NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.comWILLIAMS © 2025 The Williams Companies, Inc. All rights reserved 11 Enhancing power market intelligence through Cogentrix investment Low risk investment enhances power market intelligence and provides access to various growth opportunities ENHANCED MARKET INTELLIGENCE ATTR ACTIVE INVESTMENT OPPORTUNITY • Expanding insights into developing trends in the power market, a key area of future natural gas demand growth • Creates collaboration opportunities for gas supply, pipeline expansion, and data center projects • Acquired ~10% interest in Cogentrix; Investment closed March 3, 2025 • Enhanced exposure to 5+ net GW of operating CCGT and CT capacity across PJM, ISO-NE, and ERCOT Cogentrix Power Plant Williams Footprint
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NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.comWILLIAMS © 2025 The Williams Companies, Inc. All rights reserved 12 1Includes Other/Corporate and EBITDA associated with divested assets (Aux Sable). 2Includes Conway, Bluestem pipeline, and Targa Frac. 3Includes Permian, Mid-continent, and DJ Basin. 4Includes realized NYMEX gas hedge gains. Note: This slide contains non-GAAP financial measures. A reconciliation of all non-GAAP financial measures used in this presentation to their nearest comparable GAAP financial measures is included at the back of this presentation. Diversification of Adjusted EBITDA fuels stability and growth Blue Racer 2% Marketing Services 3% Marcellus South 3% ~48% from Transmission & Deepwater ~8% from G&P serving on-shore oil-directed supply areas ~35% from G&P serving gas-directed supply areas SW Wyoming / Wamsutter 1% Transco 30% Deepwater 5% Other Onshore Oil Basin3 4% Eagle Ford 4% Haynesville 4% Bradford Supply Hub 3% Susquehanna Supply Hub 8% Northwest Pipeline 4% Gulfstream 2% NorTex Transport & Storage 1% LMM, Cardinal & Flint 5% Northeast JV 7% Piceance 1% E&P 3% ~3% from E&P NGL Services2 2% ~3% from Gas and NGL Marketing Services ~2% from NGL Services OPPL 1% ~$7.1B 2024 Adj. EBITDA MountainWest 3% Barnett4 1% Gulf Coast Storage 2% Other & Divestitures1 1% ~1% from Other
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NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.comWILLIAMS © 2025 The Williams Companies, Inc. All rights reserved 13 1Base business includes Transmission & Gulf, Northeast G&P, and West and excludes contributions from Gas & NGL Marketing Services and Upstream Operations in Other. 2Source: EIA, monthly avg. price of NYMEX WTI Crude Oil spot pricing. 3Source: EIA, monthly avg. price of NYMEX Henry Hub Natural Gas spot pricing. 4Sum of gathering volumes and avg. daily firm reserved capacity for regulated transportation (converted from Tbtu to Bcf at 1,000 btu/cf) for West, Northeast G&P, and Transmission & Gulf segments. Volumes for acquisitions were averaged over the entire quarter in which the acquisitions closed. Note: This slide contains non-GAAP financial measures. A reconciliation of all non-GAAP financial measures used in this presentation to their nearest GAAP comparable financial measures are included at the back of this presentation. Williams generates steady growth in volumes and Adjusted EBITDA 50 100 150 200 250 Indexed to 100 WTI Oil Price Henry Hub Natural Gas Price Quarterly Growth: Williams Base Business Adjusted EBITDA1, Contracted Transmission Capacity and Gathering Volume vs. Crude Oil and Natural Gas Commodity Prices 2015 2016 2017 20192018 Contracted Transmission Capacity & Gathering Volume4 Base Business Adj. EBITDA1 Adj. EBITDA Capacity + Volume Oil Price Gas Price 2 3 2020 2021 2022 2023 2024 2025
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NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.comWILLIAMS © 2025 The Williams Companies, Inc. All rights reserved 14 $750 $1,100 $1,452 $900 $1,550 $1,000 $14,336 $322$85 $500 $1,208 $400 $700 $1,875 $1,080 $100 $330 2025 2026 2027 2028 2029 2030 2031+ Other WMB NWP Transco MountainWest 16% improvement in leverage since 20202 3.65x 2025 guidance for Debt-to-Adjusted EBITDA2 Investment grade rated across all rating agencies BBB+/Baa2/BBB Credit Rating3 5.00% Weighted Average (fixed rate) Coupon For Debt Portfolio4 Issued $1.5B of senior notes during 2025 $3.75B credit facility Well-laddered debt profile 11.2 years Weighted Average Maturity for Debt Portfolio4 Principal Value of Debt Maturities as of March 31, 2025 ($ in millions) Strong liquidity and minimal near-term debt maturities ~$27.7B Total Debt Maturities 1Other includes commercial paper and financing obligations associated with certain Transco growth projects. 2Based on midpoint of 2025 guidance. Does not represent leverage ratios measured for WMB credit agreement compliance or leverage ratios as calculated by the major credit ratings agencies. Consolidated debt is net of cash on hand. 3Current S&P/Moody’s/Fitch ratings are BBB+ (stable)/Baa2 (positive)/BBB (positive). 4As of March 31, 2025 – Excludes financing obligations associated with certain Transco growth projects. Note: This slide contains non-GAAP financial measures. A reconciliation of all non-GAAP financial measures used in this presentation to their nearest GAAP comparable financial measures are included at the back of this presentation. Balance sheet strength and financial flexibility 1
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NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.comWILLIAMS © 2025 The Williams Companies, Inc. All rights reserved 15 Prices based on April 24, 2025 forward curve with locational differential, including impact of hedges (Net position at forward strip + 1Q realized). NGL pricing based on historic basin composite. 2025 upstream segment Adjusted EBITDA details Net production Price assumed in guidance (including hedge impact) Natural Gas 265-310 MMcf/d $3.18/MMBtu Oil Production 5-7 Mbbl/d $64.23/bbl NGL Production 10-12 Mbbl/d (C3+): $0.97/gal Wamsutter 2025 Upstream Adj. EBITDA Guidance Full-year 2025 projections and assumptions ~$300MM WY LA Haynesville
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NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.comWILLIAMS © 2025 The Williams Companies, Inc. All rights reserved 16 Growth Capital High priority investments drive sustainable long-term growth $2.725B • Onsite natural gas and power generation infrastructure project • Transmission projects • G&P expansions including the Louisiana Energy Gateway (LEG) project • Upstream capital • New Energy Ventures investments including LEG CCS & solar projects Maintenance Capital (excl. ERP2) Investments in working condition of assets to protect the business $700MM • Projects to maintain integrity of pipeline and its components Modernization & ERP2 Capital Modernize transmission infrastructure and reduce emissions $150MM • FERC regulated emissions reduction capital and compressor modernization 1Anticipated CAPEX based on midpoint of 2025 guidance. Excludes acquisitions. 2Emissions Reduction Program. Expected capital drivers for 2025 2025 CAPEX1
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NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.comWILLIAMS © 2025 The Williams Companies, Inc. All rights reserved 17 Source: S&P Global PointLogic ©2025 by S&P Global Inc. Note: Pipe loss/Fuel demand is excluded from the charts and HDD is U.S. population-weighted Heating Degree Days. LNG exports cited as feedgas. Strong natural gas demand across all sectors Total demand including exports averaged 129 Bcf/d in 1Q’25 versus 122 Bcf/d in 1Q’24 Driven by strong res/com sector demand atop export growth LOWER-48 NATURAL GAS DEMAND + EXPORTS 1Q 2024 v. 1Q 2025 COMPARISON 10.2% 0 5 10 15 20 25 30 35 40 45 2.9% 0 5 10 15 20 25 30 35 40 45 Q1 2024 Q1 2025 -0.4% 0 5 10 15 20 25 30 35 40 45 POWER GEN RES / COMINDUSTRIAL Bcf/d Bcf/dBcf/d 12.4% 0 5 10 15 20 25 30 35 40 45 LNG & MEXICAN EXPORTS Bcf/d +8%2,034 HDD 2,205 HDD Q1 2024 Q1 2025 Q1 2024 Q1 2025 Q1 2024 Q1 2025
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NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.comWILLIAMS © 2025 The Williams Companies, Inc. All rights reserved 18 Source: U.S. Energy Information Administration (EIA) as of March 31, 2025 1As of May 2025. 2LNG export terminal capacity is the U.S. DOE-authorized maximum export quantity to non-FTA countries for operational & commissioning projects. Transco resides along active and growing U.S. LNG corridor Williams’ Asset Map in U.S. Gulf Coast1 + U.S. L-48 Large Scale Approved and Potential Liquefaction Facilities Per EIA Active LNG export facilities LNG projects fully permitted, pre-FID INVESTED CAPITAL 2018-2021 11.9 LNG projects active or in execution within Transco footprint LNG export projects awaiting FID within Transco footprint Bcf/d 17.8 8.1 LNG projects already operational within Transco footprint LNG export projects currently under construction within Transco footprint Bcf/d2 Bcf/d LNG export projects under construction ?
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NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.comWILLIAMS © 2025 The Williams Companies, Inc. All rights reserved 19 3,250 3,750 4,250 4,750 5,250 5,750 2010 2020 2030 2040 TWh Source: S&P Global Commodity Insights, ©2024 by S&P Global Inc. December 2024 Planning Case. More natural gas is required to feed growing electricity demand Electrification of heating and transport, data centers and AI-driven future will create unprecedented growth in power demand RAPID INCREASE IN ELECTRICITY DEMAND 32% 2025-2040 driven by emergence of large load data centers and EV growth U.S. Net On-Grid Power Demand 5% 2010-2024 with majority of growth captured in 2024
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NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.comWILLIAMS © 2025 The Williams Companies, Inc. All rights reserved 20 Ample coal-to-gas switching opportunities reside in our footprint Operating coal plant in state with WMB natural gas transmission line Williams Asset Map, Highlighting Third-party Operating Coal Plants Equates to +8.4 Bcf/d natural gas1 Equates to 76 MM cars off the road annually 58 Coal plants; 55 GW Net summer capacity Equates to 328 MM mt CO2 reduction Map as of May 2025. Sources: Coal plant data per Wood Mackenzie North America Power Service Tool. The data and information provided by Wood Mackenzie should not be interpreted as advice, and you should not rely on it for any purpose. You may not copy or use this data and information except as expressly permitted by Wood Mackenzie in writing. To the fullest extent permitted by law, Wood Mackenzie accepts no responsibility for your use of this data and information. Metric tons of CO2 emitted by a typical passenger vehicle per year per Environmental Protection Agency (EPA). 1Using 6,600 Btu/kWh heat rate, 100% plant utilization.
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NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.comWILLIAMS © 2025 The Williams Companies, Inc. All rights reserved 21 Cumulative Percentage Growth in L-48 Natural Gas Demand versus Growth in Interstate Natural Gas Pipeline Delivery Capacity and Natural Gas Storage Delivery Capacity, 2013-2024 0% 10% 20% 30% 40% 50% 60% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Cumulative Growth Since 2013 Total Natural Gas Demand Interstate Pipeline Delivery Capacity Storage Delivery Capacity Source: U.S. Energy Information Administration (EIA). Note: 2023 is the most current data for storage delivery capacity from the EIA. There is a growing need for reliable infrastructure investment Since 2013 demand for gas has grown by 49% while infrastructure to deliver gas has increased by 26% and storage delivery capacity has grown by 2% 2024
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NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.comWILLIAMS © 2025 The Williams Companies, Inc. All rights reserved 22 45% less carbon dioxide emissions than coal1 U.S. CO2 emissions decline with increased coal-to-natural gas switching in the power sector 3.3x cheaper than electricity2 Natural gas remains the cheapest fuel for residential consumers A F F O R D A B L E 2.6x Performance of gas power capacity compared to solar PV power capacity3 Natural gas is a flexible and dispatchable energy source, making it ideal for the power sector R E L I A B L EC L E A N Sources: 1Energy Information Administration (EIA) Carbon Dioxide Emissions Coefficients by Fuel. 2U.S. Energy Information Administration (EIA), Annual Energy Outlook, 2025. 3U.S. Energy Information Administration using 2024 capacity factors for U.S. combined-cycle gas fired-generation versus utility scale solar photovoltaic. Natural gas meets the trifecta for energy solutions
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NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.comWILLIAMS © 2025 The Williams Companies, Inc. All rights reserved 23 Note: This slide contains non-GAAP financial measures. A reconciliation of all non-GAAP financial measures used in this presentation to their nearest GAAP comparable financial measures are included at the back of this presentation. Clear line-of-sight into near-term contracted growth Tracking in line with 5-7% expected long-term Adjusted EBITDA growth rate Transmission Transco Rate Case 1Q ‘25 Texas to Louisiana Energy Pathway 2Q’25 Southeast Energy Connector 2Q’25 Commonwealth Energy Connector 4Q’25 Alabama Georgia Connector 4Q’25 Ryckman Creek Lateral 4Q’25 Overthrust Westbound Expansion 4Q’25 Gillis West 4Q’25 Stanfield South 4Q’25 Naughton Coal-to-Gas Conversion 2Q’26 Huntingdon Connector 4Q’26 Southeast Supply Enhancement 4Q’27 Wild Trail 4Q’27 Kelso-Beaver Reliability Project 4Q’28 Dalton Lateral Expansion II 4Q’29 Power Express 3Q’30 Deepwater Whale 1Q’25 Ballymore 2Q’25 Shenandoah 2Q’25 Salamanca 3Q’25 Gathering & Processing Haynesville West 3Q’25 Louisiana Energy Gateway 3Q’25 2025 uplift 2026 uplift 2027 uplift 2028+ uplift ✓ Transmission & Power Generation Socrates 2H’26 ✓ ✓ ✓ ✓
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NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.comWILLIAMS © 2025 The Williams Companies, Inc. All rights reserved 24 Map as of May 2025. Dekatherms converted to cubic feet at 1,000 cubic feet = 1 dekatherm. 1Signed anchor shipper precedent agreement for Power Express, which per the upcoming open season, could provide up to 950 MMcf /d. 2Per the customer agreements, the Dalton Lateral Expansion II will provide up to 460 MMcf/d. Executing significant portfolio of Transco expansion projects 3 Project Target In- Service Current Status Project Capacity Power Express 3Q’30 Signed precedent agreement 950 MMcf/d1 Southeast Supply Enhancement 4Q’27 Filed FERC application 1,597 MMcf/d Commonwealth Energy Connector 4Q’25 Under construction 105 MMcf/d Alabama Georgia Connector 4Q’25 Under construction 64 MMcf/d Dalton Lateral Expansion II 4Q’29 Signed precedent agreement 460 MMcf/d2 Southeast Energy Connector 2Q’25 In-service 150 MMcf/d Gillis West 4Q’25 Signed precedent agreement 115 MMcf/d Texas to Louisiana Energy Pathway 2Q’25 In-service 364 MMcf/d 3 4 6 8 2 6 4 7 7 8 5 5 2 11
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NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.comWILLIAMS © 2025 The Williams Companies, Inc. All rights reserved 25 MountainWest preparing for growth ahead ▪ Overthrust Westbound Expansion Capacity: 325 MMcf/d | Expected ISD: 4Q 2025 PROJECTS IN EXECUTION ▪ Phased Overthrust growth ▪ Uinta Basin takeaway opportunities ▪ Storage optimization and expansion ▪ Data center and power generation opportunities ▪ Coal conversion for power generation and industrial mining OPPORTUNITIES IN FOOTPRINT Strong project execution on significant opportunity set Little Mountain Station, UT
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NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.comWILLIAMS © 2025 The Williams Companies, Inc. All rights reserved 26 Expansions underway on Northwest Pipeline Capacity: 183 MMcf/d | Expected ISD: 4Q 2028 Kelso-Beaver Reliability Project 2 Capacity: 80 MMcf/d | Expected ISD: 4Q 2025 Stanfield South 3 Capacity: 98 MMcf/d | Expected ISD: 2Q 2026 Naughton Coal-to-Gas Conversion 4 Capacity: 50 MMcf/d | Expected ISD: 4Q 2025 Ryckman Creek Lateral 5 Capacity: 83 MMcf/d | Expected ISD: 4Q 2027 Wild Trail 6 Capacity: 87 MMcf/d | Expected ISD: 4Q 2026 Huntingdon Connector 1 5 6 4 3 2 1
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NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.comWILLIAMS © 2025 The Williams Companies, Inc. All rights reserved 27 Deepwater expansions adding significant volume growth Growing EBITDA in 2025 with additional step up in 2026 SALAMANCA ▪ Expected in-service date: 3Q 2025 ▪ Capital budget: Zero ▪ Gas Reserves: 89 Bcf SHENANDOAH ▪ Expected in-service date: 2Q 2025 ▪ Capital budget: ~$160MM ▪ Gas Reserves: 380 Bcf WHALE ✓ Placed in-service 1Q 2025 ▪ Capital budget: ~$400MM ▪ Combined reserves: ~545 MMboe: Oil: 380 MMBbls, Gas: 1,000 Bcf BALLYMORE ✓ Placed in-service 2Q 2025 ▪ Capital budget: Zero ▪ Combined reserves: ~300 MMboe Western Gulf Central Gulf Eastern Gulf
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NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.comWILLIAMS © 2025 The Williams Companies, Inc. All rights reserved 28 Map as of May 2025 Enhancing our Haynesville position Critical bridge between clean, reliable supply and rapidly growing Southeast and Gulf Coast demand Expanding Haynesville gathering by 400 MMcf/d and adding 1.8 Bcf/d of natural gas takeaway DECARBONIZING THE VALUE CHAIN • Executing CCS project to sequester up to 750,000 tons of CO2 per year in 2H’27 • Opportunity to aggregate CO2 across Haynesville basin • Real time emissions data and optimization capability INCREASING ACCESS TO RELIABLE ENERGY • Adding 400 MMcf/d in Haynesville West in 3Q’25 • Adding 1.8 Bcf/d of gathering delivery in 3Q’25 HAYNESVILLE BASIN Louisiana Energy Gateway Expected in-service 3Q’25 Existing gathering systems LA TX LATX
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NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.comWILLIAMS © 2025 The Williams Companies, Inc. All rights reserved 29 Data as of April 30, 2025 Williams’ hedge positions Opal Processing Plant, WY Commodity 2025 2026 Natural Gas Volume (MMBtu) Weighted-Average Price ($MMBtu) Volume (MMBtu) Weighted-Average Price ($MMBtu) Fixed Price Swaps (56,240,000) $3.65 (5,850,000) $4.30 Basis Swaps (52,872,500) ($0.64) (2,327,500) ($0.29) Liquids Volume (Bbls) Weighted-Average Price ($Bbl) Volume (Bbls) Weighted-Average Price ($Bbl) Fixed Price Swaps - Crude Oil (588,000) $71.24 Fixed Price Swaps - NGL (1,139,000) $42.21 Commodity 2025 2026 Natural Gas Volume (MMBtu) Weighted-Average Price ($MMBtu) Volume (MMBtu) Weighted-Average Price ($MMBtu) Fixed Price Swaps on Long (12,832,500) $3.56 (900,000) $4.34 Fixed Price Swaps on Short 912,500 $3.42 Basis Swaps 762,500 ($2.17) Index Swaps 457,500 Liquids Volume (Bbls) Weighted-Average Price ($Bbl) Volume (Bbls) Weighted-Average Price ($Bbl) Fixed Price Swaps - NGL (1,326,000) $40.51 E&P HedgesG&P Hedges NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.com 29
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NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.comWILLIAMS © 2025 The Williams Companies, Inc. All rights reserved 30 Focused on environmental stewardship and building strong communities 35,282 HOURS volunteered by employees to charitable organizations, representing more than $1.1 million in value 26% REDUCTION in intensity-based GHG emissions from 2018, working towards goal of a 30% reduction by 2028 589+ UNIQUE ENGAGEMENTS with local community stakeholders, strengthening relationships and identifying opportunities to collaborate 4,346 MILES of pipeline integrity assessments to protect our people, environment and assets, up 36% from 2022 Sustainability Report 2023 EXPERIENCE POWERS US LINK HERE
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NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.comWILLIAMS © 2025 The Williams Companies, Inc. All rights reserved 31 1Annual Incentive Program Committed to a clean energy future For more information regarding our sustainability efforts, please review our 2023 Sustainability Report 2025 GOAL 5% reduction in methane intensity from 2024 for the 2025 AIP1 NEAR-TERM GOAL Reach 0.0375% in scope 1 methane intensity by 2028 NEAR-TERM GOAL 30% reduction in carbon intensity from 2018 levels by 2028 LONG-TERM AMBITION Achieve net zero ambition by 2050 utilizing a combination of immediate and long-term solutions NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.com
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NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.comWILLIAMS © 2025 The Williams Companies, Inc. All rights reserved 32 Forward Looking Statements
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NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.comWILLIAMS © 2025 The Williams Companies, Inc. All rights reserved 33 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.
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NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.comWILLIAMS © 2025 The Williams Companies, Inc. All rights reserved 34 Forward-looking statements (cont’d) > 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 on 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;
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NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.comWILLIAMS © 2025 The Williams Companies, Inc. All rights reserved 35 Forward-looking statements (cont’d) – 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, 2024, as filed with the SEC on February 25, 2025, and (b) Part II, Item 1A. Risk Factors in subsequent Quarterly Reports on Form 10-Q.
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NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.comWILLIAMS © 2025 The Williams Companies, Inc. All rights reserved 36 Non-GAAP Reconciliations
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NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.comWILLIAMS © 2025 The Williams Companies, Inc. All rights reserved 37 Non-GAAP Disclaimer > 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, net 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, including our indirect share from interests owned by equity-method investees. > 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 cash flow from operations excluding the effect of changes in working capital and certain other changes in noncurrent assets and liabilities, reduced by preferred dividends and net distributions to noncontrolling interests. AFFO may 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.
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NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.comWILLIAMS © 2025 The Williams Companies, Inc. All rights reserved 38 1The 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. Reconciliation of Income (Loss) Attributable to The Williams Companies, Inc. to Adjusted Income 2015-2017 2015 2016 2017 (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 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year Income (loss) attributable to The Williams Companies, Inc. available to common stockholders $ 70 $ 114 $ (40) $ (715) $ (571) $ (65) $ (405) $ 61 $ (15) $ (424) $ 373 $ 81 $ 33 $ 1,687 $ 2,174 Income (loss) - diluted earnings (loss) per common share (1) $ .09 $ .15 $ (.05) $ (.95) $ (.76) $ (.09) $ (.54) $ .08 $ (.02) $ (.57) $ .45 $ .10 $ .04 $ 2.03 $ 2.62 Adjustments: Northeast G&P Impairment of certain assets $ 3 $ 21 $ 2 $ 6 $ 32 $ — $ — $ — $ — $ — $ — $ — $ 121 $ — $ 121 Share of impairment at equity-method investments 8 1 17 7 33 — — 6 19 25 — — 1 — 1 Ad valorem obligation timing adjustment — — — — — — — — — — — — 7 — 7 Settlement charge from pension early payout program — — — — — — — — — — — — — 7 7 Organizational realignment-related costs — — — — — — — — 3 3 1 1 2 — 4 Severance and related costs — — — — — 3 — — — 3 — — — — — ACMP Merger and transition costs — — — — — 2 — — — 2 — — — — — Total Northeast G&P adjustments 11 22 19 13 65 5 — 6 22 33 1 1 131 7 140 Transmission & Gulf of America Regulatory adjustments resulting from Tax Reform — — — — — — — — — — — — — 713 713 Share of regulatory charges resulting from Tax Reform for equity-method investments — — — — — — — — — — — — — 11 11 Constitution Pipeline project development costs — — — — — — 8 11 9 28 2 6 4 4 16 Potential rate refunds associated with rate case litigation — — — — — 15 — — — 15 — — — — — Settlement charge from pension early payout program — — — — — — — — — — — — — 19 19 Organizational realignment-related costs — — — — — — — — — — 1 2 2 1 6 Severance and related costs — — — — — 10 — — — 10 — — — — — Impairment of certain assets — — — 5 5 — — — — — — — — — — (Gain) loss on asset retirement — — — — — — — — (11) (11) — — (5) 5 — Total Transmission & Gulf of America adjustments — — — 5 5 25 8 11 (2) 42 3 8 1 753 765 West Estimated minimum volume commitments 55 55 65 (175) — 60 64 70 (194) — 15 15 18 (48) — Impairment of certain assets — 3 — 105 108 — 48 — 22 70 — — 1,021 9 1,030 Settlement charge from pension early payout program — — — — — — — — — — — — — 9 9 Organizational realignment-related costs — — — — — — — — 21 21 2 3 2 1 8 Severance and related costs — — — — — 8 — — 3 11 — — — — — ACMP Merger and transition costs 30 14 2 2 48 3 — — — 3 — — — — — Loss (recovery) related to Opal incident 1 — (8) 1 (6) — — — — — — — — — — Gains from contract settlements and terminations — — — — — — — — — — (13) (2) — — (15) Total West adjustments 86 72 59 (67) 150 71 112 70 (148) 105 4 16 1,041 (29) 1,032
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NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.comWILLIAMS © 2025 The Williams Companies, Inc. All rights reserved 39 1The 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. 2The fourth quarter of 2015 includes an unfavorable adjustment related to the translation of certain foreign-denominated unrecognized tax benefits. The second and third quarters of 2016 include a favorable adjustment related to the reversal of a cumulative anticipatory foreign tax credit. The first quarter of 2017 includes an unfavorable adjustment related to the release of a valuation allowance. The fourth quarter of 2017 includes an unfavorable adjustment to reverse the tax benefit associated with remeasuring our deferred tax balances at a lower corporate rate resulting from Tax Reform. Reconciliation of Income (Loss) Attributable to The Williams Companies, Inc. to Adjusted Income 2015-2017 cont. 2015 2016 2017 (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 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year Other Impairment of certain assets — — — 64 64 — 747 — 8 755 — 23 68 — 91 Regulatory adjustments resulting from Tax Reform — — — — — — — — — — — — — 63 63 Settlement charge from pension early payout program — — — — — — — — — — — — — 36 36 (Gain) loss related to Canada disposition — — — — — — — 65 1 66 (2) (1) 4 5 6 Canadian PDH facility project development costs — — — — — 34 11 16 — 61 — — — — — Accrued long-term charitable commitment — — — 8 8 — — — — — — — — — — Severance and related costs — — — — — 5 — — 13 18 9 4 5 4 22 ACMP Merger and transition costs 8 9 7 12 36 2 — — — 2 — 4 3 4 11 Expenses associated with strategic alternatives — 7 19 6 32 6 13 21 7 47 1 3 5 — 9 Expenses associated with Financial Repositioning — — — — — — — — — — 8 2 — — 10 Expenses associated with strategic asset monetizations — — — — — — — — 2 2 1 4 — — 5 Loss related to Geismar Incident 1 1 — — 2 — — — — — — — — — — Geismar Incident adjustments — (126) — — (126) — — — (7) (7) (9) 2 8 (1) — Gain on sale of Geismar Interest — — — — — — — — — — — — (1,095) — (1,095) Gain on sale of RGP Splitter — — — — — — — — — — — (12) — — (12) Contingency (gain) loss accruals — — — (9) (9) — — — — — 9 — — — 9 (Gain) loss on early retirement of debt — (14) — — (14) — — — — — (30) — 3 — (27) Gain on sale of certain assets — — — — — (10) — — — (10) — — — — — Total Other adjustments 9 (123) 26 81 (7) 37 771 102 24 934 (13) 29 (999) 111 (872) Adjustments included in Modified EBITDA 106 (29) 104 32 213 138 891 189 (104) 1,114 (5) 54 174 842 1,065 Adjustments below Modified EBITDA Impairment of equity-method investments — — 461 898 1,359 112 — — 318 430 — — — — — Impairment of goodwill — — — 1,098 1,098 — — — — — — — — — — Gain on disposition of equity-method investment — — — — — — — (27) — (27) (269) — — — (269) Interest expense related to potential rate refunds associated with rate case litigation — — — — — 3 — — — 3 — — — — — Accelerated depreciation related to reduced salvage value of certain assets — — — 7 7 — — — 4 4 — — — — — Accelerated depreciation by equity-method investments — — — — — — — — — — — — — 9 9 Change in depreciable life associated with organizational realignment — — — — — — — — (16) (16) (7) — — — (7) ACMP Acquisition-related financing expenses - Williams Partners 2 — — — 2 — — — — — — — — — — Interest income on receivable from sale of Venezuela assets — (9) (18) — (27) (18) (18) — — (36) — — — — — Allocation of adjustments to noncontrolling interests (33) 21 (212) (767) (991) (83) (154) (41) (76) (354) 77 (10) (28) (199) (160) (31) 12 231 1,236 1,448 14 (172) (68) 230 4 (199) (10) (28) (190) (427) Total adjustments 75 (17) 335 1,268 1,661 152 719 121 126 1,118 (204) 44 146 652 638 Less tax effect for above items (28) 4 (129) (473) (626) (61) (202) (39) 19 (283) 77 (17) (55) (246) (241) Adjustments for tax-related items (2) 5 9 1 (74) (59) — 34 5 — 39 (127) — — (1,923) (2,050) Adjusted income available to common stockholders $ 122 $ 110 $ 167 $ 6 $ 405 $ 26 $ 146 $ 148 $ 130 $ 450 $ 119 $ 108 $ 124 $ 170 $ 521 Adjusted diluted earnings per common share (1) $ .16 $ .15 $ .22 $ .01 $ .54 $ .03 $ .19 $ .20 $ .17 $ .60 $ .14 $ .13 $ .15 $ .20 $ .63 Weighted-average shares - diluted (thousands) 752,028 752,775 753,100 751,930 752,460 751,040 751,297 751,858 752,818 751,761 826,476 828,575 829,368 829,607 828,518
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NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.comWILLIAMS © 2025 The Williams Companies, Inc. All rights reserved 40 2018 2019 2020 (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 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year Income (loss) from continuing operations attributable to The Williams Companies, Inc. available to common stockholders $ 152 $ 135 $ 129 $ (572) $ (156) $ 194 $ 310 $ 220 $ 138 $ 862 $ (518) $ 303 $ 308 $ 115 $ 208 Income (loss) from continuing operations - diluted earnings (loss) per common share (1) $ .18 $ .16 $ .13 $ (.47) $ (.16) $ .16 $ .26 $ .18 $ .11 $ .71 $ (.43) $ .25 $ .25 $ .09 $ .17 Adjustments: Northeast G&P Expenses associated with new venture $ — $ — $ — $ — $ — $ 3 $ 6 $ 1 $ — $ 10 $ — $ — $ — $ — $ — Impairment of certain assets — — — — — — — — 10 10 — — — 12 12 Severance and related costs — — — — — — 10 (3) — 7 — — — — — Pension plan settlement charge — — — 4 4 — — — — — 1 — — — 1 Benefit of change in employee benefit policy — — — — — — — — — — — (2) (2) (5) (9) Share of impairment of certain assets at equity-method investment — — — — — — — — — — — — 11 36 47 Share of early debt retirement gain at equity-method investment — — — — — — — — — — — (5) — — (5) Total Northeast G&P adjustments — — — 4 4 3 16 (2) 10 27 1 (7) 9 43 46 Transmission & Gulf of America Constitution Pipeline project development costs 2 1 1 — 4 — 1 1 1 3 — — — — — Northeast Supply Enhancement project development costs — — — — — — — — — — — 3 3 — 6 Impairment of certain assets (2) — — — — — — — — 354 354 — — — 170 170 Regulatory adjustments resulting from Tax Reform 4 (20) — — (16) — — — — — — — — — — Adjustment of regulatory asset associated with increase in Transco’s estimated deferred state income tax rate following WPZ Merger — — (3) — (3) — — — — — 2 — — — 2 Charge for regulatory liability associated with the decrease in Northwest Pipeline’s estimated deferred state income tax rates following WPZ Merger — — 12 — 12 — — — — — — — — — — Share of regulatory charges resulting from Tax Reform for equity-method investments 2 — — — 2 — — — — — — — — — — Reversal of costs capitalized in prior periods — — — — — — 15 — 1 16 — — 10 1 11 Gain on sale of certain Gulf Coast pipeline assets — — — (81) (81) — — — — — — — — — — Gain on asset retirement — — (10) (2) (12) — — — — — — — — — — Severance and related costs — — — — — — 22 14 3 39 1 1 (1) — 1 Pension plan settlement charge — — — 9 9 — — — — — 4 1 — — 5 Benefit of change in employee benefit policy — — — — — — — — — — — (3) (6) (13) (22) Total Transmission & Gulf of America adjustments 8 (19) — (74) (85) — 38 15 359 412 7 2 6 158 173 West Impairment of certain assets — — — 1,849 1,849 12 64 — 24 100 — — — — — Gain on sale of Four Corners assets — — — (591) (591) 2 — — — 2 — — — — — Severance and related costs — — — — — — 11 (1) — 10 — — — — — Pension plan settlement charge — — — 4 4 — — — — — 1 — — — 1 Benefit of change in employee benefit policy — — — — — — — — — — — (1) (2) (6) (9) Total West adjustments — — — 1,262 1,262 14 75 (1) 24 112 1 (1) (2) (6) (8) 1The 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. 2Our partners' $209 million share of the fourth-quarter 2019 impairment of the Constitution pipeline project and $65 million share of the first-quarter 2020 impairment of goodwill are reflected below in Allocation of adjustments to noncontrolling interests. Reconciliation of Income (Loss) from Continuing Operations Attributable to The Williams Companies, Inc. to Non-GAAP Adjusted Income 2018-2020
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NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.comWILLIAMS © 2025 The Williams Companies, Inc. All rights reserved 41 2018 2019 2020 (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 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year Gas & NGL Marketing Services Total Gas & NGL Marketing Services adjustments — — — — — — — — — — — — — — — Other Regulatory asset reversals from impaired projects — — — — — — — — — — — — 8 7 15 Reversal of costs capitalized in prior periods — — — — — — — — — — — — 3 — 3 Loss on early retirement of debt 7 — — — 7 — — — — — — — — — — Impairment of certain assets — 66 — — 66 — — — — — — — — — — Pension plan settlement charge — — — 5 5 — — — — — — — — 1 1 Regulatory adjustments resulting from Tax Reform — 1 — — 1 — — — — — — — — — — (Benefit) adjustment of regulatory assets associated with increase in Transco’s estimated deferred state income tax rate following WPZ Merger — — (45) — (45) 12 — — — 12 — — — — — WPZ Merger costs — 4 15 1 20 — — — — — — — — — — Gain on sale of certain Gulf Coast pipeline systems — — — (20) (20) — — — — — — — — — — Charitable contribution of preferred stock to Williams Foundation — — 35 — 35 — — — — — — — — — — Accrual for loss contingencies — — — — — — — 9 (5) 4 — — — 24 24 Severance and related costs — — — — — — — 1 1 — — — — — Total Other adjustments 7 71 5 (14) 69 12 — 9 (4) 17 — — 11 32 43 Adjustments included in Modified EBITDA 15 52 5 1,178 1,250 29 129 21 389 568 9 (6) 24 227 254 Adjustments below Modified EBITDA Gain on deconsolidation of Jackalope interest — (62) — — (62) — — — — — — — — — — Gain on deconsolidation of certain Permian assets — — — (141) (141) 2 — — — 2 — — — — — Loss on deconsolidation of Constitution — — — — — — — — 27 27 — — — — — Impairment of equity-method investments — — — 32 32 74 (2) 114 — 186 938 — — 108 1,046 Impairment of goodwill (2) — — — — — — — — — — 187 — — — 187 Share of impairment of goodwill at equity-method investment — — — — — — — — — — 78 — — — 78 Gain on sale of equity-method investments — — — — — — (122) — — (122) — — — — — Allocation of adjustments to noncontrolling interests (5) 21 — — 16 — (1) — (210) (211) (65) — — — (65) (5) (41) — (109) (155) 76 (125) 114 (183) (118) 1,138 — — 108 1,246 Total adjustments 10 11 5 1,069 1,095 105 4 135 206 450 1,147 (6) 24 335 1,500 Less tax effect for above items (3) (3) (1) (267) (274) (26) (1) (34) (51) (112) (316) 8 1 (68) (375) Adjustments for tax-related items (3) — — 110 — 110 — — — — — — — — — — Adjusted income from continuing operations available to common stockholders $ 159 $ 143 $ 243 $ 230 $ 775 $ 273 $ 313 $ 321 $ 293 $ 1,200 $ 313 $ 305 $ 333 $ 382 $ 1,333 Adjusted income from continuing operations - diluted earnings per common share (1) $ .19 $ .17 $ .24 $ .19 $ .79 $ .22 $ .26 $ .26 $ .24 $ .99 $ .26 $ .25 $ .27 $ .31 $ 1.10 Weighted-average shares - diluted (thousands) 830,197 830,107 1,026,504 1,212,822 976,097 1,213,592 1,214,065 1,214,165 1,214,212 1,214,011 1,214,348 1,214,581 1,215,335 1,216,381 1,215,165 1The 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. 2Our partners' $209 million share of the fourth-quarter 2019 impairment of the Constitution pipeline project and $65 million share of the first-quarter 2020 impairment of goodwill are reflected below in Allocation of adjustments to noncontrolling interests. 3The third quarter of 2018 reflects tax adjustments driven by the WPZ Merger, primarily a valuation allowance for foreign tax credits. Reconciliation of Income (Loss) from Continuing Operations Attributable to The Williams Companies, Inc. to Non-GAAP Adjusted Income 2018-2020 Cont.
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NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.comWILLIAMS © 2025 The Williams Companies, Inc. All rights reserved 42 1The 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. Reconciliation of Income (Loss) From Continuing Operations Attributable to The Williams Companies, Inc. to Non-GAAP Adjusted Income 2021-2023 2021 2022 2023 (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 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year Income (loss) from continuing operations attributable to The Williams Companies, Inc. available to common stockholders $ 425 $ 304 $ 164 $ 621 $ 1,514 $ 379 $ 400 $ 599 $ 668 $ 2,046 $ 926 $ 547 $ 654 $ 1,146 $ 3,273 Income (loss) from continuing operations - diluted earnings (loss) per common share (1) $ .35 $ .25 $ .13 $ .51 $ 1.24 $ .31 $ .33 $ .49 $ .55 $ 1.67 $ .76 $ .45 $ .54 $ .94 $ 2.68 Adjustments: Transmission & Gulf of America MountainWest acquisition and transition-related costs — — — — — — — — — — 13 17 3 9 42 Gulf Coast Storage acquisition and transition-related costs — — — — — — — — — — — — — 1 1 Impairment of certain assets — 2 — — 2 — — — — — — — — — — Gain on sale of certain Gulf Coast pipeline assets — — — — — — — — — — — — (130) 1 (129) Loss related to Eminence storage cavern abandonments and monitoring — — — — — — — 19 12 31 — — — — — Regulatory liability charges associated with decrease in Transco’s estimated deferred state income tax rate — — — — — — — 15 — 15 — — — — — Net unrealized (gain) loss from derivative instruments — — — — — — — (1) 1 — — — — — — Total Transmission & Gulf of America adjustments — 2 — — 2 — — 33 13 46 13 17 (127) 11 (86) Northeast G&P Accrual for loss contingency — — — — — — — — — — — — — 10 10 Our share of accrual for loss contingency at Aux Sable Liquid Products LP — — — — — — — — — — — — 31 (2) 29 Total Northeast G&P adjustments — — — — — — — — — — — — 31 8 39 West Impairment of certain assets — — — — — — — — — — — — — 10 10 Trace acquisition costs — — — — — — 8 — — 8 — — — — — Cureton acquisition and transition costs — — — — — — — — — — — — — 6 6 Gain from contract settlement — — — — — — — — — — (18) — — — (18) Total West adjustments — — — — — — 8 — — 8 (18) — — 16 (2) Gas & NGL Marketing Services Amortization of purchase accounting inventory fair value adjustment — — 2 16 18 15 — — — 15 — — — — — Impact of volatility on NGL linefill transactions — — — — — (20) — 23 6 9 (3) 10 (3) 5 9 Net unrealized (gain) loss from derivative instruments — — 294 (188) 106 57 288 (5) (66) 274 (333) (94) (24) (208) (659) Total Gas & NGL Marketing Services adjustments — — 296 (172) 124 52 288 18 (60) 298 (336) (84) (27) (203) (650)
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NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.comWILLIAMS © 2025 The Williams Companies, Inc. All rights reserved 43 Reconciliation of Income (Loss) From Continuing Operations Attributable to The Williams Companies, Inc. to Non-GAAP Adjusted Income 2021-2023 Cont. 2021 2022 2023 (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 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year Gas & NGL Marketing Services Amortization of purchase accounting inventory fair value adjustment — — 2 16 18 15 — — — 15 — — — — — Impact of volatility on NGL linefill transactions — — — — — (20) — 23 6 9 (3) 10 (3) 5 9 Net unrealized (gain) loss from derivative instruments — — 294 (188) 106 57 288 (5) (66) 274 (333) (94) (24) (208) (659) Total Gas & NGL Marketing Services adjustments — — 296 (172) 124 52 288 18 (60) 298 (336) (84) (27) (203) (650) Other Regulatory liability charge associated with decrease in Transco’s estimated deferred state income tax rate — — — — — — — 5 — 5 — — — — — Expenses associated with Sequent acquisition and transition — — 3 2 5 — — — — — — — — — — Accrual for loss contingencies 5 5 — — 10 — — 11 — 11 — — — — — Net unrealized (gain) loss from derivative instruments — 4 16 (20) — 66 (47) (29) (15) (25) 6 11 1 (19) (1) Net gain from Energy Transfer litigation judgment — — — — — — — — — — — — — (534) (534) Total Other adjustments 5 9 19 (18) 15 66 (47) (13) (15) (9) 6 11 1 (553) (535) Adjustments included in Modified EBITDA 5 11 315 (190) 141 118 249 38 (62) 343 (335) (56) (122) (721) (1,234) Adjustments below Modified EBITDA Gain on investment remeasurement — — — — — — — — — — — — — (30) (30) Depreciation adjustment related to Eminence storage cavern abandonments — — — — — — — (1) — (1) — — — — — Accelerated depreciation for decommissioning assets — 20 13 — 33 — — — — — — — — — — Amortization of intangible assets from Sequent acquisition — — 21 (3) 18 42 41 42 42 167 15 14 15 15 59 — 20 34 (3) 51 42 41 41 42 166 15 14 15 (15) 29 Total adjustments 5 31 349 (193) 192 160 290 79 (20) 509 (320) (42) (107) (736) (1,205) Less tax effect for above items (1) (8) (87) 48 (48) (40) (72) (17) 5 (124) 78 10 25 178 291 Adjustments for tax-related items (2) — — — — — — (134) (69) — (203) — — (25) — (25) Adjusted income from continuing operations available to common stockholders $ 429 $ 327 $ 426 $ 476 $ 1,658 $ 499 $ 484 $ 592 $ 653 $ 2,228 $ 684 $ 515 $ 547 $ 588 $ 2,334 Adjusted income from continuing operations - diluted earnings per common share (1) $ .35 $ .27 $ .35 $ .39 $ 1.36 $ .41 $ .40 $ .48 $ .53 $ 1.82 $ .56 $ .42 $ .45 $ .48 $ 1.91 Weighted-average shares - diluted (thousands) 1,217,211 1,217,476 1,217,979 1,221,454 1,218,215 1,221,279 1,222,694 1,222,472 1,224,212 1,222,672 1,225,781 1,219,915 1,220,073 1,221,894 1,221,616 1The 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. 2The second quarter of 2022 includes adjustments for the reversal of valuation allowance due to the expected utilization of certain deferred income tax assets and previously unrecognized tax benefits from the resolution of certain federal income tax audits. The third quarter of 2022 includes an unfavorable adjustment to reverse the net benefit primarily associated with a significant decrease in our estimated deferred state income tax rate, partially offset by an unfavorable revision to a state net operating loss carryforward.
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NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.comWILLIAMS © 2025 The Williams Companies, Inc. All rights reserved 44 1The 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. *Amounts are included in Additional adjustments on the Reconciliation of Cash Flow from Operating Activities to Non-GAAP Available Funds from Operations (AFFO). Reconciliation of Income (Loss) From Continuing Operations Attributable to The Williams Companies, Inc. to Non-GAAP Adjusted Income 2024-2025 2024 2025 (Dollars in millions, except per-share amounts) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr Income (loss) from continuing operations attributable to The Williams Companies, Inc. available to common stockholders $ 631 $ 401 $ 705 $ 485 $ 2,222 $ 690 Income (loss) from continuing operations - diluted earnings (loss) per common share (1) $ .52 $ .33 $ .58 $ .40 $ 1.82 $ .56 Adjustments: Transmission & Gulf of America Transco rate case timing* $ — $ — $ — $ — $ — $ 4 MountainWest acquisition and transition-related costs* — 1 3 — 4 — Gulf Coast Storage acquisition and transition-related costs* 10 3 — — 13 — Discovery acquisition and transition-related costs* — — — 1 1 — Impact of change in payroll policy* — — 16 — 16 — Total Transmission & Gulf of America adjustments 10 4 19 1 34 4 Northeast G&P Adjustment of prior year accrual for loss contingency* — (3) — — (3) — Our share of operator transition costs at Blue Racer Midstream* — 1 1 2 4 — Impact of change in payroll policy* — — 7 — 7 — Total Northeast G&P adjustments — (2) 8 2 8 — West Cureton acquisition and transition-related costs* 1 1 — 1 3 — Impact of change in payroll policy* — — 7 — 7 — Total West adjustments 1 1 7 1 10 — Gas & NGL Marketing Services Impact of volatility on NGL linefill transactions* (6) 5 2 (4) (3) — Net unrealized (gain) loss from derivative instruments 94 107 (10) 150 341 3 Impact of change in payroll policy* — — 1 — 1 — Total Gas & NGL Marketing Services adjustments 88 112 (7) 146 339 3
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NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.comWILLIAMS © 2025 The Williams Companies, Inc. All rights reserved 45 1The 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. 2The fourth quarter of 2024 includes an adjustment associated with a decrease in our estimated deferred state income tax rate. *Amounts are included in Additional adjustments on the Reconciliation of Cash Flow from Operating Activities to Non-GAAP Available Funds from Operations (AFFO). Reconciliation of Income (Loss) From Continuing Operations Attributable to The Williams Companies, Inc. to Non-GAAP Adjusted Income 2024-2025 Cont. 2024 2025 (Dollars in millions, except per-share amounts) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr Other Crowheart acquisition and transition-related costs* — — — 1 1 — Net unrealized (gain) loss from derivative instruments (2) 24 (3) 7 26 29 Settlement charge related to former operations* — — — 6 6 — Total Other adjustments (2) 24 (3) 14 33 29 Adjustments included in Modified EBITDA 97 139 24 164 424 36 Adjustments below Modified EBITDA Transco rate case timing — — — — — 11 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 2021 Sequent acquisition 7 7 8 7 29 5 19 19 (257) 16 (203) 16 Total adjustments 116 158 (233) 180 221 52 Less tax effect for above items (28) (38) 56 (42) (52) (12) Adjustments for tax-related items (2) — — — (44) (44) — Adjusted income from continuing operations available to common stockholders $ 719 $ 521 $ 528 $ 579 $ 2,347 $ 730 Adjusted income from continuing operations - diluted earnings per common share (1) $ .59 $ .43 $ .43 $ .47 $ 1.92 $ .60 Weighted-average shares - diluted (thousands) 1,222,222 1,222,236 1,222,869 1,224,472 1,222,954 1,224,641
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NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.comWILLIAMS © 2025 The Williams Companies, Inc. All rights reserved 46 1Adjustments by segment are detailed in the "Reconciliation of Income (Loss) Attributable to The Williams Companies, Inc. to Adjusted Income," which is also included in these materials. Reconciliation of Net Income (Loss) to Modified EBITDA and Non-GAAP Adjusted EBITDA 2015-2017 2015 2016 2017 (Dollars in millions) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year Net income (loss) $ 13 $ 183 $ (173) $ (1,337) $ (1,314) $ (13) $ (505) $ 131 $ 37 $ (350) $ 569 $ 193 $ 125 $1,622 $2,509 Provision (benefit) for income taxes 30 83 (65) (447) (399) 2 (145) 69 49 (25) 37 65 24 (2,100) (1,974) Interest expense 251 262 263 268 1,044 291 298 297 293 1,179 280 271 267 265 1,083 Equity (earnings) losses (51) (93) (92) (99) (335) (97) (101) (104) (95) (397) (107) (125) (115) (87) (434) Impairment of equity-method investments — — 461 898 1,359 112 — — 318 430 — — — — — Other investing (income) loss – net — (9) (18) — (27) (18) (18) (28) 1 (63) (272) (2) (4) (4) (282) Proportional Modified EBITDA of equity-method investments 136 183 185 195 699 189 191 194 180 754 194 215 202 184 795 Impairment of goodwill — — — 1,098 1,098 — — — — — — — — — — Depreciation and amortization expenses 427 428 432 451 1,738 445 446 435 437 1,763 442 433 433 428 1,736 Accretion expense associated with asset retirement obligations for nonregulated operations 6 9 6 7 28 7 8 9 7 31 7 9 7 10 33 Modified EBITDA $ 812 $1,046 $ 999 $ 1,034 $ 3,891 $ 918 $ 174 $1,003 $1,227 $3,322 $1,150 $1,059 $ 939 $ 318 $3,466 Northeast G&P $ 194 $ 184 $ 204 $ 188 $ 770 $ 220 $ 222 $ 214 $ 197 $ 853 $ 226 $ 247 $ 115 $ 231 $ 819 Transmission & Gulf of America 421 473 499 471 1,864 466 436 502 538 1,942 535 531 507 (236) 1,337 West 227 253 264 412 1,156 243 236 284 460 1,223 300 279 (692) 426 313 Other (30) 136 32 (37) 101 (11) (720) 3 32 (696) 89 2 1,009 (103) 997 Total Modified EBITDA $ 812 $1,046 $ 999 $ 1,034 $ 3,891 $ 918 $ 174 $1,003 $1,227 $3,322 $1,150 $1,059 $ 939 $ 318 $3,466 Adjustments included in Modified EBITDA (1): Northeast G&P $ 11 $ 22 $ 19 $ 13 $ 65 $ 5 $ — $ 6 $ 22 $ 33 $ 1 $ 1 $ 131 $ 7 $ 140 Transmission & Gulf of America — — — 5 5 25 8 11 (2) 42 3 8 1 753 765 West 86 72 59 (67) 150 71 112 70 (148) 105 4 16 1,041 (29) 1,032 Other 9 (123) 26 81 (7) 37 771 102 24 934 (13) 29 (999) 111 (872) Total Adjustments included in Modified EBITDA $ 106 $ (29) $ 104 $ 32 $ 213 $ 138 $ 891 $ 189 $ (104) $1,114 $ (5) $ 54 $ 174 $ 842 $1,065 Adjusted EBITDA: Northeast G&P $ 205 $ 206 $ 223 $ 201 $ 835 $ 225 $ 222 $ 220 $ 219 $ 886 $ 227 $ 248 $ 246 $ 238 $ 959 Transmission & Gulf of America 421 473 499 476 1,869 491 444 513 536 1,984 538 539 508 517 2,102 West 313 325 323 345 1,306 314 348 354 312 1,328 304 295 349 397 1,345 Other (21) 13 58 44 94 26 51 105 56 238 76 31 10 8 125 Total Adjusted EBITDA $ 918 $1,017 $1,103 $ 1,066 $ 4,104 $1,056 $1,065 $1,192 $1,123 $4,436 $1,145 $1,113 $1,113 $1,160 $4,531
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NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.comWILLIAMS © 2025 The Williams Companies, Inc. All rights reserved 47 2018 2019 2020 (Dollars in millions) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year Net income (loss) $ 270 $ 269 $ 200 $ (546) $ 193 $ 214 $ 324 $ 242 $ (66) $ 714 $ (570) $ 315 $ 323 $ 130 $ 198 Provision (benefit) for income taxes 55 52 190 (159) 138 69 98 77 91 335 (204) 117 111 55 79 Interest expense 273 275 270 294 1,112 296 296 296 298 1,186 296 294 292 290 1,172 Impairment of goodwill — — — — — — — — — — 187 — — — 187 Equity (earnings) losses (82) (92) (105) (117) (396) (80) (87) (93) (115) (375) (22) (108) (106) (92) (328) Impairment of equity-method investments — — — 32 32 74 (2) 114 — 186 938 — — 108 1,046 Other investing (income) loss - net (4) (68) (2) (145) (219) (1) (124) (7) 25 (107) (3) (1) (2) (2) (8) Proportional Modified EBITDA of equity-method investments 169 178 205 218 770 190 175 181 200 746 192 192 189 176 749 Depreciation and amortization expenses 431 434 425 435 1,725 416 424 435 439 1,714 429 430 426 436 1,721 Accretion expense associated with asset retirement obligations for nonregulated operations 8 10 8 7 33 9 8 8 8 33 10 7 10 8 35 (Income) loss from discontinued operations, net of tax — — — — — — — — 15 15 — — — — — Modified EBITDA $ 1,120 $ 1,058 $ 1,191 $ 19 $ 3,388 $ 1,187 $ 1,112 $ 1,253 $ 895 $ 4,447 $ 1,253 $ 1,246 $ 1,243 $ 1,109 $ 4,851 Northeast G&P $ 250 $ 255 $ 281 $ 300 $ 1,086 $ 299 $ 303 $ 345 $ 367 $ 1,314 $ 369 $ 370 $ 387 $ 363 $ 1,489 Transmission & Gulf of America 531 541 549 672 2,293 636 590 665 284 2,175 662 615 616 486 2,379 West 333 323 355 (973) 38 256 217 247 232 952 233 227 229 259 948 Gas & NGL Marketing — (5) (2) 7 — (18) 26 18 24 50 Other 6 (61) 6 20 (29) (4) 7 (2) 5 6 7 8 (7) (23) (15) Total Modified EBITDA $ 1,120 $ 1,058 $ 1,191 $ 19 $ 3,388 $ 1,187 $ 1,112 $ 1,253 $ 895 $ 4,447 $ 1,253 $ 1,246 $ 1,243 $ 1,109 $ 4,851 Adjustments included in Modified EBITDA (1): Northeast G&P $ — $ — $ — $ 4 $ 4 $ 3 $ 16 $ (2) $ 10 $ 27 $ 1 $ (7) $ 9 $ 43 $ 46 Transmission & Gulf of America 8 (19) — (74) (85) — 38 15 359 412 7 2 6 158 173 West — — — 1,262 1,262 14 75 (1) 24 112 1 (1) (2) (6) (8) Gas & NGL Marketing — — — — — — — — — — — — — — — Other 7 71 5 (14) 69 12 — 9 (4) 17 — — 11 32 43 Total Adjustments included in Modified EBITDA $ 15 $ 52 $ 5 $ 1,178 $ 1,250 $ 29 $ 129 $ 21 $ 389 $ 568 $ 9 $ (6) $ 24 $ 227 $ 254 Adjusted EBITDA: Northeast G&P $ 250 $ 255 $ 281 $ 304 $ 1,090 $ 302 $ 319 $ 343 $ 377 $ 1,341 $ 370 $ 363 $ 396 $ 406 $ 1,535 Transmission & Gulf of America 539 522 549 598 2,208 636 628 680 643 2,587 669 617 622 644 2,552 West 333 323 355 289 1,300 270 292 246 256 1,064 234 226 227 253 940 Gas & NGL Marketing — — — — — — (5) (2) 7 — (18) 26 18 24 50 Other 13 10 11 6 40 8 7 7 1 23 7 8 4 9 28 Total Adjusted EBITDA $ 1,135 $ 1,110 $ 1,196 $ 1,197 $ 4,638 $ 1,216 $ 1,241 $ 1,274 $ 1,284 $ 5,015 $ 1,262 $ 1,240 $ 1,267 $ 1,336 $ 5,105 1Adjustments by segment are detailed in the "Reconciliation of Income (Loss) Attributable to The Williams Companies, Inc. to Adjusted Income," which is also included in these materials. Reconciliation of Net Income (Loss) to Modified EBITDA and Non-GAAP Adjusted EBITDA 2018-2020
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NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.comWILLIAMS © 2025 The Williams Companies, Inc. All rights reserved 48 1Adjustments 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 Net Income (Loss) to Modified EBITDA and Non-GAAP Adjusted EBITDA 2021-2023 2021 2022 2023 (Dollars in millions) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year Net income (loss) $ 435 $ 322 $ 173 $ 632 $ 1,562 $ 392 $ 407 $ 621 $ 697 $ 2,117 $ 957 $ 494 $ 684 $ 1,168 $ 3,303 Provision (benefit) for income taxes 141 119 53 198 511 118 (45) 96 256 425 284 175 176 370 1,005 Interest expense 294 298 292 295 1,179 286 281 291 289 1,147 294 306 314 322 1,236 Equity (earnings) losses (131) (135) (157) (185) (608) (136) (163) (193) (145) (637) (147) (160) (127) (155) (589) Other investing (income) loss - net (2) (2) (2) (1) (7) (1) (2) (1) (12) (16) (8) (13) (24) (63) (108) Proportional Modified EBITDA of equity-method investments 225 230 247 268 970 225 250 273 231 979 229 249 215 246 939 Depreciation and amortization expenses 438 463 487 454 1,842 498 506 500 505 2,009 506 515 521 529 2,071 Accretion expense associated with asset retirement obligations for nonregulated operations 10 11 12 12 45 11 13 12 15 51 15 14 14 16 59 (Income) loss from discontinued operations, net of tax — — — — — — — — — — — 87 1 9 97 Modified EBITDA $ 1,410 $ 1,306 $ 1,105 $ 1,673 $ 5,494 $ 1,393 $ 1,247 $ 1,599 $ 1,836 $ 6,075 $ 2,130 $ 1,667 $ 1,774 $ 2,442 $ 8,013 Transmission & Gulf of America $ 660 $ 646 $ 630 $ 685 $ 2,621 $ 697 $ 652 $ 638 $ 687 $ 2,674 $ 715 $ 731 $ 881 $ 741 $ 3,068 Northeast G&P 402 409 442 459 1,712 418 450 464 464 1,796 470 515 454 477 1,916 West 222 223 257 259 961 260 288 337 326 1,211 304 312 315 307 1,238 Gas & NGL Marketing Services 93 8 (262) 183 22 13 (282) 20 209 (40) 567 68 43 272 950 Other 33 20 38 87 178 5 139 140 150 434 74 41 81 645 841 Total Modified EBITDA $ 1,410 $ 1,306 $ 1,105 $ 1,673 $ 5,494 $ 1,393 $ 1,247 $ 1,599 $ 1,836 $ 6,075 $ 2,130 $ 1,667 $ 1,774 $ 2,442 $ 8,013 Adjustments included in Modified EBITDA (1): Transmission & Gulf of America $ — $ 2 $ — $ — $ 2 $ — $ — $ 33 $ 13 $ 46 $ 13 $ 17 $ (127) $ 11 $ (86) Northeast G&P — — — — — — — — — — — — 31 8 39 West — — — — — — 8 — — 8 (18) — — 16 (2) Gas & NGL Marketing Services — — 296 (172) 124 52 288 18 (60) 298 (336) (84) (27) (203) (650) Other 5 9 19 (18) 15 66 (47) (13) (15) (9) 6 11 1 (553) (535) Total Adjustments included in Modified EBITDA $ 5 $ 11 $ 315 $ (190) $ 141 $ 118 $ 249 $ 38 $ (62) $ 343 $ (335) $ (56) $ (122) $ (721) $ (1,234) Adjusted EBITDA: Transmission & Gulf of America $ 660 $ 648 $ 630 $ 685 $ 2,623 $ 697 $ 652 $ 671 $ 700 $ 2,720 $ 728 $ 748 $ 754 $ 752 $ 2,982 Northeast G&P 402 409 442 459 1,712 418 450 464 464 1,796 470 515 485 485 1,955 West 222 223 257 259 961 260 296 337 326 1,219 286 312 315 323 1,236 Gas & NGL Marketing Services 93 8 34 11 146 65 6 38 149 258 231 (16) 16 69 300 Other 38 29 57 69 193 71 92 127 135 425 80 52 82 92 306 Total Adjusted EBITDA $ 1,415 $ 1,317 $ 1,420 $ 1,483 $ 5,635 $ 1,511 $ 1,496 $ 1,637 $ 1,774 $ 6,418 $ 1,795 $ 1,611 $ 1,652 $ 1,721 $ 6,779
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NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.comWILLIAMS © 2025 The Williams Companies, Inc. All rights reserved 49 1Adjustments 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 Net Income (Loss) to Modified EBITDA and Non-GAAP Adjusted EBITDA 2024-2025 2024 2025 (Dollars in millions) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr Net income (loss) $ 662 $ 426 $ 741 $ 517 $ 2,346 $ 729 Provision (benefit) for income taxes 193 129 227 91 640 193 Interest expense 349 339 338 338 1,364 349 Equity (earnings) losses (137) (147) (147) (129) (560) (155) Other investing (income) loss - net (24) (18) (290) (11) (343) (8) Proportional Modified EBITDA of equity-method investments 228 238 227 216 909 236 Depreciation, depletion, and amortization expenses 548 540 566 565 2,219 585 Accretion expense associated with asset retirement obligations for nonregulated operations 18 21 17 25 81 24 Modified EBITDA $ 1,837 $ 1,528 $ 1,679 $ 1,612 $ 6,656 $ 1,953 Transmission & Gulf of America $ 829 $ 808 $ 811 $ 825 $ 3,273 $ 858 Northeast G&P 504 481 476 497 1,958 514 West 327 318 323 344 1,312 354 Gas & NGL Marketing Services 101 (126) 11 (110) (124) 152 Other 76 47 58 56 237 75 Total Modified EBITDA $ 1,837 $ 1,528 $ 1,679 $ 1,612 $ 6,656 $ 1,953 Adjustments (1): Transmission & Gulf of America $ 10 $ 4 $ 19 $ 1 $ 34 $ 4 Northeast G&P — (2) 8 2 8 — West 1 1 7 1 10 — Gas & NGL Marketing Services 88 112 (7) 146 339 3 Other (2) 24 (3) 14 33 29 Total Adjustments $ 97 $ 139 $ 24 $ 164 $ 424 $ 36 Adjusted EBITDA: Transmission & Gulf of America $ 839 $ 812 $ 830 $ 826 $ 3,307 $ 862 Northeast G&P 504 479 484 499 1,966 514 West 328 319 330 345 1,322 354 Gas & NGL Marketing Services 189 (14) 4 36 215 155 Other 74 71 55 70 270 104 Total Adjusted EBITDA $ 1,934 $ 1,667 $ 1,703 $ 1,776 $ 7,080 $ 1,989
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NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.comWILLIAMS © 2025 The Williams Companies, Inc. All rights reserved 50 *See detail on Reconciliation of Income (Loss) from Continuing Operations Attributable to The Williams Companies, Inc. to Non-GAAP Adjusted Income. The first quarter of 2025 also includes $20 million related to an expected distribution from an equity-method investee not received until early April. This amount will be excluded from AFFO for the second quarter of 2025. Reconciliation of Cash Flow from Operating Activities to Non-GAAP Available Funds from Operations 2024-2025 2024 2025 (Dollars in millions, except coverage ratios) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr Net cash provided (used) by operating activities $ 1,234 $ 1,279 $ 1,243 $ 1,218 $ 4,974 $ 1,433 Exclude: Cash (provided) used by changes in: Accounts receivable (314) 44 (97) 536 169 (82) Inventories, including write-downs (38) 35 1 1 (1) (29) Other current assets and deferred charges (9) (3) 28 (25) (9) 40 Accounts payable 309 (90) 98 (456) (139) 29 Other current liabilities 218 (142) 32 (143) (35) 70 Changes in current and noncurrent commodity derivative assets and liabilities 68 73 (67) 212 286 (4) Other, including changes in noncurrent assets and liabilities 61 90 49 45 245 29 Preferred dividends paid (1) — (1) (1) (3) (1) Dividends and distributions paid to noncontrolling interests (64) (66) (48) (64) (242) (69) Contributions from noncontrolling interests 26 10 — — 36 5 Additional Adjustments * 17 20 48 12 97 24 Available funds from operations $ 1,507 $ 1,250 $ 1,286 $ 1,335 $ 5,378 $ 1,445 Common dividends paid $ 579 $ 579 $ 579 $ 579 $ 2,316 $ 610 Coverage ratio: Available funds from operations divided by Common dividends paid 2.60 2.16 2.22 2.31 2.32 2.37
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NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.comWILLIAMS © 2025 The Williams Companies, Inc. All rights reserved 51 1Primarily includes March year-to-date adjustments (excluding timing related items) as shown in the "Reconciliation of Income (Loss) from Continuing Operations Attributable to The Williams Companies, Inc. to Non-GAAP Adjusted Income.“ 2Adjustments reflect amortization of intangible assets from Sequent acquisition. Reconciliation of Net Income (Loss) from Continuing Operations to Modified EBITDA, Non-GAAP Adjusted EBITDA and Cash Flow from Operating Activities to Non-GAAP 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 $ 2,502 $ 2,652 $ 2,802 Provision (benefit) for income taxes 750 800 850 Interest expense 1,430 Equity (earnings) losses (595) Proportional Modified EBITDA of equity-method investments 980 Depreciation and amortization expenses and accretion for asset retirement obligations associated with nonregulated operations 2,415 Other (14) Modified EBITDA $ 7,468 $ 7,668 $ 7,868 EBITDA Adjustments 32 Adjusted EBITDA $ 7,500 $ 7,700 $ 7,900 Net income (loss) from continuing operations $ 2,502 $ 2,652 $ 2,802 Less: Net income (loss) attributable to noncontrolling interests and preferred dividends 165 Net income (loss) from continuing operations attributable to The Williams Companies, Inc. available to common stockholders $ 2,337 $ 2,487 $ 2,637 Adjustments: Adjustments included in Modified EBITDA(1) 32 Adjustments below Modified EBITDA (2) 18 Allocation of adjustments to noncontrolling interests — Total adjustments 50 Less tax effect for above items (12) 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