Williams Companies, Inc. (the) · NYSE:WMB

Williams Companies, Inc. (the) — Q1 2025 Earnings Presentation

51 slides from Williams Companies, Inc. (the)'s earnings presentation, May 6, 2025

  1. Slide 1: Williams 1st Quarter 2025 Earnings Call

    Williams 1st Quarter 2025 Earnings Call May 6, 2025 WILLIAMS © 2025 The Williams Companies, Inc. All rights reserved NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.com 1

  2. Slide 2: Continued execution on strategic priorities

    Continued execution on strategic priorities 1Q ANNOUNCEMENTS OPERATIONAL EXECUTION FINANCIAL STRENGTH ▪ Commercialized the Socrates ▪ Started construction on Transco’s ▪ Increased 2025 Adjusted EBITDA power generation project Alabama Georgia Connector and guidance midpoint by $50MM MountainWest’s Ov

  3. Slide 3: Achieved 3% growth 1Q 2025 vs. 1Q 2024

    Achieved 3% growth 1Q 2025 vs. 1Q 2024 W M B A d j u s t e d E B I T D A ( $ M M ) : 1 Q 2 0 2 5 vs . 1 Q 2 0 2 4 Key Earnings Drivers TRANSMISSION & GULF $2,050 Higher earnings driven by Transco expansions, favorable storage re-contracting, the Discovery consolidation, higher $26 ($34) $37 $1,989 T

  4. Slide 4: Clear line-of-sight to continued earnings growth

    Clear line-of-sight to continued earnings growth Series 1 9.0 Adjusted EBITDA ($B) Significant fully-contracted growth 8.0 $7.5 - $7.9B ▪ Transmission expansions ▪ Storage re-contracting $7.1 ▪ Deepwater Gulf projects ▪ Transco rate case 7.0 $6.8 $6.4 6.0 $5.6 $5.1 5.0 Resilient gathering & processi

  5. Slide 5: Platform for continued success

    Platform for continued success Natural gas Track record of Creating long-term focused strategy execution shareholder value Our infrastructure is critical to provide Steadfast project execution positions Continuing to drive value creation to reliable energy to meet growing demand Williams as a leader

  6. Slide 6: Appendix

    Appendix WILLIAMS © 2025 The Williams Companies, Inc. All rights reserved NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.com 6

  7. Slide 7: Key financial metrics

    Key financial metrics Strong Financial Performance 1Q 2025 1Q 2024 Change Across Key Metrics Adjusted EBITDA $1,989 $1,934 3% Adjusted Earnings per Share $0.60 $0.59 2% Available Funds from Operations $1,445 $1,507 (4%) Dividend Coverage Ratio (AFFO basis) 2.37x 2.60x (9%) Balance Sheet Strength and

  8. Slide 8: Achieved 12% growth 1Q 2025 vs. 4Q 2024

    Achieved 12% growth 1Q 2025 vs. 4Q 2024 W M B A d j u s t e d E B I T D A ( $ M M ) : 1 Q 2 0 2 5 vs . 4 Q 2 0 2 4 Key Earnings Drivers TRANSMISSION & GULF $2,050 Higher earnings due to favorable segment costs, increased $36 $1,989 short-term firm and park and loan services, Transco expansions, high

  9. Slide 9: 2025 financial guidance

    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 Ra

  10. Slide 10: Recent accomplishments

    Recent accomplishments Power Generation Commercialized the Socrates power generation project, a $1.6 billion power innovation project in Announcement Ohio with a ~5x Adj. EBITDA multiple, backed by a long-term fixed-price power purchase agreement Cogentrix Acquired ~10% interest in Cogentrix; Enhanc

  11. Slide 11: Enhancing power market intelligence through Cogentrix investment

    Enhancing power market intelligence through Cogentrix investment Low risk investment enhances power market intelligence and provides access to various growth opportunities E N H AN C E D M AR K E T I N T E L L I G E N C E • Expanding insights into developing trends in the power market, a key area of

  12. Slide 12: Diversification of Adjusted EBITDA fuels stability and growth

    Diversification of Adjusted EBITDA fuels stability and growth Other & Divestitures1 1% ~$7.1B 2024 Adj. EBITDA ~1% from Other NGL Services2 2% ~2% from NGL Services Marketing Services 3% E&P 3% ~3% from Gas and NGL Marketing Services Other Onshore Oil Basin3 4% ~3% from E&P Eagle Ford 4% Barnett4 1%

  13. Slide 13: Williams generates steady growth in volumes and Adjusted EBITDA

    Williams generates steady growth in volumes and Adjusted EBITDA Quarterly Growth: Williams Base Business Adjusted EBITDA1, Contracted Transmission Capacity and Gathering Volume vs. Crude Oil and Natural Gas Commodity Prices 250 Indexed to 100 200 Capacity + Volume Adj. EBITDA 150 Oil Price Gas Price

  14. Slide 14: Balance sheet strength and financial flexibility

    Balance sheet strength and financial flexibility Strong liquidity and minimal near-term debt maturities Principal Value of Debt Maturities 3.65x 16% improvement as of March 31, 2025 2025 guidance for in leverage since 20202 ($ in millions) Debt-to-Adjusted EBITDA2 $330 $1,875 BBB+/Baa2/BBB Investmen

  15. Slide 15: 2025 upstream segment Adjusted EBITDA details

    2025 upstream segment Adjusted EBITDA details 2025 Upstream Adj. EBITDA Guidance Full-year 2025 projections and assumptions ~$300MM Net Price assumed production in guidance LA (including hedge impact) WY Natural Gas 265-310 MMcf/d $3.18/MMBtu Oil Production 5-7 Mbbl/d $64.23/bbl NGL Production 10-12

  16. Slide 16: Expected capital drivers for 2025

    Expected capital drivers for 2025 Growth Capital • Onsite natural gas and power generation infrastructure project High priority investments drive sustainable long-term growth • Transmission projects • G&P expansions including the $2.725B Louisiana Energy Gateway (LEG) project • Upstream capital • Ne

  17. Slide 17: Strong natural gas demand across all sectors

    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 POWER GEN INDUSTRIAL RES / COM LNG & MEXICAN EXPORTS Bcf/d Bcf/d Bcf/d Bcf/d 45 45 45 45 10.2% 40 40 40 40 35 -0

  18. Slide 18: Transco resides along active and growing U.S. LNG corridor

    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 17.8 8.1 11.9 Bcf/d2 Bcf/d Bcf/d LNG projects INVESTED LNG export CAPITAL LNG export already projects currently projects a

  19. Slide 19: More natural gas is required to feed growing electricity demand

    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 U.S. Net On-Grid Power Demand 5,750 RAPID INCREASE IN ELECTRICITY DEMAND 5,250 5% 4,750 2010-2024 with majority

  20. Slide 20: Ample coal-to-gas switching opportunities reside in our footprint

    Ample coal-to-gas switching opportunities reside in our footprint Williams Asset Map, Highlighting Third-party Operating Coal Plants 58 Equates to Coal plants; 55 GW +8.4 Bcf/d natural Net summer gas1 capacity Equates to Equates to 328 MM 76 MM mt CO2 cars off the road reduction annually Operating c

  21. Slide 21: There is a growing need for reliable infrastructure investment

    There is a growing need for reliable infrastructure investment Cumulative Percentage Growth in L-48 Natural Gas Demand versus Growth in Interstate Natural Gas Pipeline Delivery Capacity and Natural Gas Storage Delivery Since 2013 demand for Capacity, 2013-2024 60% gas has grown by 50% 49% Cumulative

  22. Slide 22: Natural gas meets the trifecta for energy solutions

    Natural gas meets the trifecta for energy solutions CLEAN AFFORDABLE RELIABLE 45% less carbon dioxide 3.3x 2.6x Performance of gas power cheaper than emissions than coal1 capacity compared to electricity2 solar PV power capacity3 U.S. CO2 emissions decline with Natural gas is a flexible and increase

  23. Slide 23: Clear line-of-sight into near-term contracted growth

    Clear line-of-sight into near-term contracted growth Transmission Deepwater 2025 uplift Transco Rate Case 1Q ‘25 ✓ 1Q’25 ✓ ✓ Whale 2026 uplift Texas to Louisiana Energy Pathway 2Q’25 Southeast Energy Connector 2Q’25 ✓ Ballymore 2Q’25 ✓ 2027 uplift Commonwealth Energy Connector 4Q’25 Shenandoah 2Q’25

  24. Slide 24: Executing significant portfolio of Transco expansion projects

    Executing significant portfolio of Transco expansion projects Target In- Project Current Status Project Capacity Service 1 Signed precedent Power Express 1 3Q’30 950 MMcf/d1 agreement 2 Southeast Supply 3 2 4Q’27 Filed FERC application 1,597 MMcf/d Enhancement Commonwealth 3 4Q’25 Under construction

  25. Slide 25: MountainWest preparing for growth ahead

    MountainWest preparing for growth ahead Strong project execution on significant opportunity set Little Mountain Station, UT PROJECTS IN EXECUTION ▪ Overthrust Westbound Expansion Capacity: 325 MMcf/d | Expected ISD: 4Q 2025 OPPORTUNITIES IN FOOTPRINT ▪ Phased Overthrust growth ▪ Uinta Basin takeaway

  26. Slide 26: Expansions underway on Northwest Pipeline

    Expansions underway on Northwest Pipeline 1 Huntingdon Connector 1 Capacity: 87 MMcf/d | Expected ISD: 4Q 2026 2 Kelso-Beaver Reliability Project 2 Capacity: 183 MMcf/d | Expected ISD: 4Q 2028 3 Stanfield South 3 Capacity: 80 MMcf/d | Expected ISD: 4Q 2025 4 Naughton Coal-to-Gas Conversion 4 Capacit

  27. Slide 27: Deepwater expansions adding significant volume growth

    Deepwater expansions adding significant volume growth Western Gulf WHALE ✓ Placed in-service 1Q 2025 ▪ Capital budget: ~$400MM ▪ Combined reserves: ~545 MMboe: Oil: 380 MMBbls, Gas: 1,000 Bcf Central Gulf SHENANDOAH SALAMANCA ▪ Expected in-service date: 2Q 2025 ▪ Expected in-service date: 3Q 2025 ▪

  28. Slide 28: Enhancing our Haynesville position

    Enhancing our Haynesville position Expanding Haynesville gathering by 400 MMcf/d Critical bridge between clean, reliable supply and and adding 1.8 Bcf/d of natural gas takeaway rapidly growing Southeast and Gulf Coast demand LA HAYNESVILLE INCREASING ACCESS TO RELIABLE ENERGY BASIN Existing • Adding

  29. Slide 29: Williams' hedge positions

    Williams’ hedge positions Opal Processing Plant, W Y Commodity 2025 2026 Volume Weighted-Average Volume Weighted-Average E&P Hedges Natural Gas (MMBtu) Price ($MMBtu) (MMBtu) Price ($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) Vo

  30. Slide 30: Focused on environmental stewardship and building strong communities

    Focused on environmental stewardship and building strong communities LINK HERE 26% REDUCTION 4,346 MILES in intensity-based GHG emissions of pipeline integrity assessments from 2018, working towards goal to protect our people, environment of a 30% reduction by 2028 and assets, up 36% from 2022 589+

  31. Slide 31: Committed to a clean energy future

    Committed to a clean energy future For more information regarding our sustainability efforts, please review our 2023 Sustainability Report LONG-TERM AMBITION Achieve net zero NEAR-TERM GOAL ambition by 2050 utilizing a combination of immediate NEAR-TERM GOAL 30% reduction and long-term in carbon int

  32. Slide 32: Forward Looking Statements

    Forward Looking Statements WILLIAMS © 2025 The Williams Companies, Inc. All rights reserved NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.com 32

  33. Slide 33: Forward-looking statements

    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

  34. Slide 34: Forward-looking statements (cont'd)

    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 bey

  35. Slide 35: Forward-looking statements (cont'd)

    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, inc

  36. Slide 36: Non-GAAP Reconciliations

    Non-GAAP Reconciliations WILLIAMS © 2025 The Williams Companies, Inc. All rights reserved NYSE: WMB I Williams 1st Quarter 2025 Earnings I May 6, 2025 I www.williams.com 36

  37. Slide 37: Non-GAAP Disclaimer

    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

  38. Slide 38: Reconciliation of Income (Loss) to Adjusted Income 2015-2017

    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) attrib

  39. Slide 39: Reconciliation of Income (Loss) to Adjusted Income 2015-2017 cont.

    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 Impairme

  40. Slide 40: Reconciliation to Non-GAAP Adjusted Income 2018-2020

    Reconciliation of Income (Loss) from Continuing Operations Attributable to The Williams Companies, Inc. to Non-GAAP Adjusted Income 2018-2020 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 Q

  41. Slide 41: Reconciliation to Non-GAAP Adjusted Income 2018-2020 Cont.

    Reconciliation of Income (Loss) from Continuing Operations Attributable to The Williams Companies, Inc. to Non-GAAP Adjusted Income 2018-2020 Cont. 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

  42. Slide 42: Reconciliation to Non-GAAP Adjusted Income 2021-2023

    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 Q

  43. Slide 43: Reconciliation to Non-GAAP Adjusted Income 2021-2023 Cont.

    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

  44. Slide 44: Reconciliation to Non-GAAP Adjusted Income 2024-2025

    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 t

  45. Slide 45: Reconciliation to Non-GAAP Adjusted Income 2024-2025 Cont.

    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-relate

  46. Slide 46: Reconciliation of Net Income to Modified EBITDA and Adjusted EBITDA 2015-2017

    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) $

  47. Slide 47: Reconciliation of Net Income to Modified EBITDA and Adjusted EBITDA 2018-2020

    Reconciliation of Net Income (Loss) to Modified EBITDA and Non-GAAP Adjusted EBITDA 2018-2020 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 $

  48. Slide 48: Reconciliation of Net Income to Modified EBITDA and Adjusted EBITDA 2021-2023

    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 $

  49. Slide 49: Reconciliation of Net Income to Modified EBITDA and Adjusted EBITDA 2024-2025

    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 expe

  50. Slide 50: Reconciliation of Cash Flow from Operating Activities to Available Funds from Operations 2024-2025

    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 $

  51. Slide 51: Reconciliation of Net Income to Modified EBITDA, Adjusted EBITDA and AFFO: 2025 Guidance

    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 inc

Williams Companies, Inc. (The) — Q1 2025 Earnings Presentation on 6ix