Williams — Third Quarter 2026 Earnings Summary

Financial Performance:

• GAAP net income for the three months ended Sept. 30, 2026, was $699 million ($0.56 per diluted share), an 8% increase from $646 million ($0.53 per share) in the prior year period.
• Adjusted net income for the quarter was $663 million ($0.54 per diluted share), a 10% increase compared to $603 million ($0.49 per share) in the prior year.
• Adjusted EBITDA for the quarter reached $2.039 billion, up $119 million (6%) from $1.920 billion in the prior year.
• Cash flow from operations (CFFO) was $1.505 billion, up $66 million (5%) from $1.439 billion in the prior year.
• Available funds from operations (AFFO) were $1.589 billion, up $140 million (10%) from $1.449 billion in the prior year.
• The dividend coverage ratio on an AFFO basis was 2.42x, compared to 2.37x in the prior year.
• Year-to-date GAAP net income was $2.390 billion ($1.94 per diluted share), up from $1.882 billion ($1.54 per share) in the prior year.
• Year-to-date Adjusted EBITDA was $6.214 billion, up $497 million (9%) from $5.717 billion in the prior year.
• Year-to-date CFFO was $4.484 billion, up $162 million from $4.322 billion in the prior year.
• Year-to-date AFFO was $4.809 billion, up $598 million from $4.211 billion in the prior year.
• Debt-to-Adjusted EBITDA ratio at quarter end was 3.80x, compared to 3.73x at the end of the prior year.
• Capital investments (excluding acquisitions) for the quarter were $2,727 million; year-to-date capital investments were $6,011 million.

Guidance and Future Outlook:

• The company remains on track to achieve the upper half of its 2026 Adjusted EBITDA guidance range of $8.3 billion to $8.5 billion.
• Management expects to achieve a long-term Adjusted EBITDA compound annual growth rate of 11% or more through 2030.
• Full-year 2026 Adjusted EBITDA guidance remains $8.3 billion to $8.5 billion.
• Full-year 2026 growth capital expenditure guidance remains between $7.3 billion and $7.9 billion.
• The midpoint for the 2026 leverage ratio is approximately 3.75x.
• Guidance excludes certain reimbursable long-lead equipment.

Business Segments and Product Lines:

• Transmission, Power & Gulf: Adjusted EBITDA for the quarter was $1.030 billion (up $83 million) and $2.999 billion year-to-date (up $287 million), driven by new power generation revenues, projects placed in service, and higher storage revenues.
• Northeast G&P: Adjusted EBITDA for the quarter was $542 million (up $37 million) and $1.606 billion year-to-date (up $86 million), driven by higher volumes at Ohio Valley Midstream and higher proportional EBITDA from equity-method investments.
• West: Adjusted EBITDA for the quarter was $401 million (up $34 million) and $1.170 billion year-to-date (up $108 million), driven by the Momentum acquisition and the Louisiana Energy Gateway project.
• Gas & NGL Marketing Services: Adjusted EBITDA for the quarter was $4 million (down $7 million) and $230 million year-to-date (up $79 million). Year-to-date results benefited from higher gas marketing margins driven by winter storms.
• Other: Adjusted EBITDA for the quarter was $62 million (down $28 million) and $209 million year-to-date (down $63 million), reflecting the absence of the South Mansfield upstream interests sold in January 2026.
• Momentum Midstream: Acquisition closed ahead of schedule, enhancing the Haynesville position.
• Clay Basin: Announced a 9.4 Bcf storage expansion.
• Transco: Announced the 150+ MMcf/d Southeast Supply Enhancement II and upsized the Garden Connector capacity by 84 MMcf/d.
• Socrates' Plato North Power: Project on track for in-service by mid-November 2026.
• Pipeline Capacity: Expanded by 413 MMcf/d across four projects.

Market and Competitive Landscape:

• Williams serves as a premier provider in the Haynesville, described as America's fastest-growing natural gas basin.
• Growth is driven by increasing demand for LNG, power generation, and industrial development.
• The company is commercializing additional power projects and expects to announce them soon.
• Williams delivers one-third of the nation's natural gas.

Risks and Challenges:

• Operating and administrative expenses increased, including $63 million in acquisition and JV formation costs.
• Unfavorable changes in net unrealized gains/losses on commodity derivatives impacted results ($29 million in Q3 2026 and $116 million year-to-date).
• Results were partially offset by reduced upstream results due to the sale of South Mansfield interests.
• Higher provision for income taxes driven by increased pre-tax income.
• Unfavorable net changes in working capital, including payment of Transco's rate refunds in April 2026, and derivative collateral requirements.

Management Commentary and Tone:

• Chad Zamarin, President and CEO, expressed strong confidence in the company's ability to execute across multiple growth platforms while maintaining safe and reliable operations.
• Management highlighted the exceptional execution to bring Socrates fully online ahead of schedule as a demonstration of the ability to deliver fast, reliable, and scalable solutions.
• The tone reflected confidence in achieving long-term growth targets due to a growing slate of projects coming online.

Other Key Points:

• Acquisitions: Closed the Momentum Midstream acquisition in September 2026 for $2.816 billion.
• Asset Sales: Recognized a gain of $83 million from the sale of a Permian gathering system in Q3 2026. Year-to-date gains included $130 million from the sale of the Brazos Permian II equity-method investment and $194 million from the sale of South Mansfield upstream interests.
• Dividends: Common dividends paid year-to-date were $1.940 billion.
• Debt Activity: Proceeds from long-term debt were $5.538 billion year-to-date; payments were $1.137 billion.
• Equity Activity: Proceeds from the sale of a partial interest in a consolidated subsidiary were $3.737 billion year-to-date.
• Conference Call: Scheduled for Tuesday, Nov. 3, 2026, at 9:30 a.m. Eastern Time.