WMB · The Williams Companies, Inc.

Williams delivered a materially stronger first quarter in 2026, with GAAP net income rising 25% year-over-year to $864 million and Adjusted EBITDA increasing 13% to $2.254 billion — both record levels. The growth was primarily driven by Transco’s higher net rates and expansion projects, new Gulf volumes from Shenandoah, Whale, and Ballymore, elevated storage revenues amid winter storms, and higher gathering volumes in the West, including contributions from the 2025 Rimrock and Saber acquisitions. Segment-level analysis confirms broad-based strength: Transmission, Power & Gulf contributed $152 million of the $265 million Adjusted EBITDA increase, while West added $53 million and Gas & NGL Marketing Services improved $72 million after excluding $189 million in unfavorable unrealized derivative impacts. Notably, the $182 million gain from the South Mansfield upstream JV sale boosted GAAP net income but was excluded from Adjusted metrics, underscoring management’s focus on recurring, contracted infrastructure cash flows. AFFO surged 22% to $1.770 billion, supporting a robust 2.76x dividend coverage ratio — up from 2.37x in Q1 2025 — and enabling a 5% annualized dividend increase to $2.10. Capital discipline remains evident: growth capex guidance was raised to $7.0–$7.6 billion, reflecting accelerated execution on high-return projects like Neo, Atlas, Silver Spur, and Transco’s NESE/SESE, all underpinned by long-term customer agreements. With debt-to-Adjusted EBITDA declining to 3.61x at quarter-end and full-year guidance reaffirmed, Williams is executing its natural gas-focused strategy to deliver stable, growing cash flows and durable shareholder returns.