WMB Williams Companies Inc

Williams (NYSE: WMB) today announced its unaudited financial results for the three and 12 months ended Dec. 31, 2024.

Business strength drives year-over-year financial growth

• GAAP net income: $2.222 billion, or $1.82 per diluted share (EPS)
• Adjusted net income: $2.347 billion, or $1.92 per diluted share (Adj. EPS)
• Record Adjusted EBITDA: $7.08 billion – up $301 million or 4.4% vs. 2023
• Cash flow from operations (CFFO): $4.974 billion
• Available funds from operations (AFFO): $5.378 billion – up $165 million or 3.2% vs. 2023
• Dividend coverage ratio: 2.32x (AFFO basis)
• Record contracted transmission capacity: 33.4 Bcf/d – up 3.4% from 2023 – with Transco additions contributing to successive new peak days
• Surpassed 2024 Adjusted EBITDA guidance midpoint
• 2024 leverage ratio: 3.79x
• Raised 2025 Adjusted EBITDA guidance midpoint by 3% to between $7.45 billion and $7.85 billion, with a projected 5-year CAGR of 8% through 2025
• Dividend increase: 5.3% to $2.00 annualized; continuing quarterly dividend since 1974

Successful execution of strategic priorities in 2024 fuels momentum for 2025 growth

• Transco expansions: Placed Regional Energy Access, Southside Reliability Enhancement and Carolina Market Link expansions in service
• Key expansions: MountainWest, Marcellus South gathering system and the Deepwater Gulf
• Gulf Coast Storage integration: 115 Bcf of strategically located storage to serve growing LNG exports and power generation demand, announcing first expansion of 10 Bcf
• High-return transmission projects: Six projects announced in 2024 to add 885 MMcf/d of capacity, serving key demand centers along footprint
• Portfolio enhancements: Consolidated interest in Gulf Discovery system and Wamsutter upstream joint venture; divested Aux Sable
• DJ Basin bolt-on: Acquired Rimrock's DJ gathering and processing system
• Emissions reductions: 92 compressor units replaced, decreasing emissions and operating expenses and generating earnings growth from Transco rate case
• Sustainability leadership: Recognized in key rankings, including the Dow Jones Best-in-Class Index, S&P Global, MSCI and the 2024 CDP Climate Change Questionnaire

CEO Perspective Alan Armstrong, president and chief executive officer, made the following comments:

“Our natural gas-focused strategy delivered outstanding financial results in 2024, with Adjusted EBITDA and contracted transmission capacity reaching record levels due to the continued growth in natural gas demand driven by the abundance of low-cost U.S. natural gas. As we maintain our strong track record of project execution and completion, we fully expect this growth to accelerate in 2025. Consequently, we are raising our Adjusted EBITDA guidance midpoint by 3% to $7.65 billion, representing a remarkable compound annual growth rate (CAGR) of 8% over the last five years.

"In 2024, we expanded Transco with the completion of the Regional Energy Access, Southside Reliability Enhancement and Carolina Market Link projects as natural gas demand hit record highs with the onset of winter. We also increased transmission capacity for MountainWest and gathering capacity in the prolific Marcellus and Deepwater Gulf regions. Currently, we have 14 high-return transmission projects in execution, including Transco’s Southeast Supply Enhancement project, a 1.6 Bcf/d expansion that will drive the largest earnings increase for a Williams pipeline project. Additionally, we optimized our portfolio by divesting Aux Sable and consolidating our interests in the Gulf Discovery system and the Wamsutter upstream joint ventures. Furthermore, we expanded our asset base in the DJ Basin with the recent bolt-on acquisition of the Rimrock gathering and processing system."

Armstrong added, "For the last several years we've been implementing our long-term strategy to bring Williams to where we are today with a healthy balance sheet and a clear line of sight to a full portfolio of high-return projects. During these early years of what is shaping up to be the golden age of natural gas, our strategy is taking hold in a powerful way that is delivering robust growth and compounding returns for our shareholders. This is evidenced by our 5% CAGR on our dividend and annualized total shareholder return of nearly 30% over the last five years. Looking ahead, we maintain our long-standing commitment to shareholder returns and have once again increased our dividend this year by 5.3% as we continue providing the critical infrastructure that serves the increasing demand for clean, reliable energy across growing markets."

Williams Summary Financial Information

4Q

 

 

Full Year

 

Amounts in millions, except ratios and per-share amounts. Per share amounts are reported on a diluted basis. Net income amounts are from continuing operations attributable to The Williams Companies, Inc. available to common stockholders.

2024

 

2023

 

 

2024

 

2023

 

 

 

 

 

 

 

 

 

 

 

GAAP Measures

 

 

 

 

 

 

 

 

 

Net Income

$485

 

$1,146

 

 

$2,222

 

$3,273

 

Net Income Per Share

$0.40

 

$0.94

 

 

$1.82

 

$2.68

 

Cash Flow From Operations

$1,218

 

$1,813

 

 

$4,974

 

$5,938

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Measures (1)

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

$1,776

 

$1,721

 

 

$7,080

 

$6,779

 

Adjusted Net Income

$579

 

$588

 

 

$2,347

 

$2,334

 

Adjusted Earnings Per Share

$0.47

 

$0.48

 

 

$1.92

 

$1.91

 

Available Funds from Operations

$1,335

 

$1,323

 

 

$5,378

 

$5,213

 

Dividend Coverage Ratio

2.31x

2.43x

 

2.32x

2.39x

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

Debt-to-Adjusted EBITDA at Quarter End (2)

3.79x

3.58x

 

 

 

 

 

Capital Investments (Excluding Acquisitions) (3) (4)

$760

 

$666

 

 

$2,706

 

$2,711

 

 

 

 

 

 

 

 

 

 

 

(1) Schedules reconciling Adjusted Net Income, Adjusted EBITDA, Available Funds from Operations and Dividend Coverage Ratio (non-GAAP measures) to the most comparable GAAP measure are available at www.williams.com and as an attachment to this news release.

 

(2) Does 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.

 

(3) Capital Investments include increases to property, plant, and equipment (growth & maintenance capital), purchases of and contributions to equity-method investments and purchases of other long-term investments.

 

(4) Fourth-quarter and full-year 2024 capital excludes $249 million, net of cash acquired, for the Crowheart acquisition, which closed in November 2024. Full-year 2024 also excludes $1.844 billion for the acquisition of the Gulf Coast Storage assets, which closed January 2024, and $151 million for the consolidation of our Discovery JV, which closed in August 2024. Fourth-quarter and full-year 2023 capital excludes $544 million for the DJ Basin acquisitions, which closed in November 2023. Full-year 2023 capital also excludes $1.024 billion for the acquisition of MountainWest Pipeline Holding Company, which closed in February 2023.

 

   

GAAP Measures Fourth-quarter 2024 net income decreased by $661 million compared to the prior year primarily reflecting the absence of a $534 million gain in 2023 related to the net cash received from the favorable resolution of litigation with Energy Transfer and an unfavorable change of $384 million in net unrealized gains/losses on commodity derivatives, partially offset by $161 million of higher service revenues driven by acquisitions and expansion projects. The decrease was also impacted by higher operating costs and depreciation from recent acquisitions, as well as lower investing income. The tax provision decreased $280 million primarily due to lower pretax income.

Full-year 2024 net income decreased by $1.051 billion compared to the prior year reflecting an unfavorable change of $1.027 billion in net unrealized gains/losses on commodity derivatives, the previously described $534 million net litigation gain, partially offset by $602 million of higher service revenues driven by acquisitions and expansion projects. The decrease was also impacted by higher operating costs, depreciation, and interest expense from recent acquisitions. Gains in 2024 of $149 million from the sale of our interests in Aux Sable and $127 million associated with the Discovery acquisition were partially offset by the absence of a $129 million gain on the sale of the Bayou Ethane system in 2023. The tax provision decreased $365 million primarily due to lower pretax income. The 2023 period also reported a loss from discontinued operations associated with an adverse legal ruling involving former refinery operations.

Fourth-quarter 2024 cash flow from operations decreased $595 million compared to the prior year, while full-year 2024 decreased $964 million, both driven by the absence of the previously described $534 million net litigation gain and unfavorable net changes in derivative collateral requirements, partially offset by higher operating results exclusive of non-cash items. The full year decline was also impacted by unfavorable changes in working capital.

Non-GAAP Measures Fourth-quarter 2024 Adjusted EBITDA increased by $55 million over the prior year, driven by the previously described favorable net contributions from acquisitions and expansion projects. Full-year 2024 Adjusted EBITDA increased by $301 million over the prior year, similarly reflecting favorable net contributions from acquisitions and expansion projects, partially offset by lower proportional EBITDA from investees that have been sold or acquired by us and now consolidated.

Fourth-quarter 2024 Adjusted Net Income declined by $9 million over the prior year, while full-year 2024 Adjusted Net Income increased $13 million over the prior year, both driven by the previously described impacts to net income, adjusted primarily to remove the effects of the litigation gain related to Energy Transfer, gains associated with Bayou Ethane, Discovery, and Aux Sable, net unrealized gains/losses on commodity derivatives, acquisition-related costs, and the related income tax effects.

Fourth-quarter and full-year 2024 Available Funds From Operations (AFFO) increased by $12 million and $165 million, respectively, compared to the prior year primarily due to higher adjusted results from continuing operations exclusive of non-cash items.

Business Segment Results & Form 10-K Williams' operations are comprised of the following reportable segments: Transmission & Gulf, Northeast G&P, West and Gas & NGL Marketing Services, as well as Other. For more information, see the company's 2024 Form 10-K.

 

Fourth Quarter

 

Full Year

Amounts in millions

Modified EBITDA

 

Adjusted EBITDA

 

Modified EBITDA

 

Adjusted EBITDA

4Q 2024

4Q 2023

Change

 

4Q 2024

4Q 2023

Change

 

2024

2023

Change

 

2024

2023

Change

Transmission & Gulf

$825

 

$741

$84

 

 

$826

$752

$74

 

 

$3,273

 

$3,068

$205

 

 

$3,307

$2,982

$325

 

Northeast G&P

497

 

477

20

 

 

499

485

14

 

 

1,958

 

1,916

42

 

 

1,966

1,955

11

 

West

344

 

307

37

 

 

345

323

22

 

 

1,312

 

1,238

74

 

 

1,322

1,236

86

 

Gas & NGL Marketing Services

(110

)

272

(382

)

 

36

69

(33

)

 

(124

)

950

(1,074

)

 

215

300

(85

)

Other

56

 

645

(589

)

 

70

92

(22

)

 

237

 

841

(604

)

 

270

306

(36

)

Total

$1,612

 

$2,442

($830

)

 

$1,776

$1,721

$55

 

 

$6,656

 

$8,013

($1,357

)

 

$7,080

$6,779

$301

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note: Williams uses Modified EBITDA for its segment reporting. Definitions of Modified EBITDA and Adjusted EBITDA and schedules reconciling to net income are included in this news release.

 

Transmission & Gulf Fourth-quarter 2024 Modified EBITDA improved compared to the prior year driven by favorable net contributions from the Gulf Coast Storage and Discovery acquisitions and the Regional Energy Access expansion project. Full-year 2024 Modified EBITDA improved as the favorable net contributions from acquisitions, including MountainWest, and Regional Energy Access, along with lower one-time acquisition and transition costs, were partially offset by the absence of the previously mentioned gain on the sale of the Bayou Ethane system and hurricane impacts. Fourth-quarter and full-year Adjusted EBITDA, which excludes the Bayou Ethane gain and acquisition and transition costs, improved compared to the prior year.

Northeast G&P Fourth-quarter and full-year 2024 Modified EBITDA increased compared to the prior year driven by higher rates at Susquehanna Supply Hub, Ohio Valley Midstream and Bradford, substantially offset by lower gathering volumes. The improved full-year Modified EBITDA also reflects the absence of our share of a loss contingency accrual at Aux Sable in 2023, which is excluded from Adjusted EBITDA.

West Fourth-quarter 2024 Modified and Adjusted EBITDA increased compared to the prior year benefiting from the DJ Basin Acquisitions, partially offset by lower gathering volumes. Both metrics also improved for the full-year period reflecting similar drivers, as well as improved commodity margins to reflect favorable changes in commodity processing costs and increased contributions from Overland Pass Pipeline reflecting higher volumes, partially offset by lower realized gains on natural gas hedges. The full-year Modified EBITDA was also impacted by the absence of a first-quarter 2023 favorable contract settlement, which is excluded from Adjusted EBITDA.

Gas & NGL Marketing Services Fourth-quarter 2024 Modified EBITDA decreased from the prior year reflecting lower gas and NGL marketing margins and a $358 million net unfavorable change in unrealized gains/losses on commodity derivatives, which is excluded from Adjusted EBITDA. Full-year 2024 Modified EBITDA also decreased from the prior year reflecting a decline in gas and NGL marketing margins, as well as a $1 billion net unfavorable change in unrealized gains/losses on commodity derivatives, which is excluded from Adjusted EBITDA.

Other Fourth-quarter and full-year 2024 Modified and Adjusted EBITDA decreased compared to the prior year driven by the absence of the $534 million litigation settlement income related to Energy Transfer in 2023 and an unfavorable change in unrealized gains/losses on commodity derivatives, both of which are excluded from Adjusted EBITDA. These metrics also reflect lower net contributions from upstream operations, including the benefit of upstream interests acquired in the fourth quarter of 2024.

2025 Financial Guidance The company is raising the midpoint of its 2025 Adjusted EBITDA guidance by 3% and updating the range to between $7.45 billion and $7.85 billion. The company continues to expect 2025 growth capex between $1.65 billion and $1.95 billion and maintenance capex between $650 million and $750 million, excluding capital of $150 million based on midpoint for emissions reduction and modernization initiatives. Williams is improving its leverage ratio midpoint for 2025 to 3.55x and has increased the dividend by 5.3% on an annualized basis to $2.00 in 2025 from $1.90 in 2024.

Williams' Fourth-Quarter and Full-Year 2024 Materials to be Posted Shortly; Q&A Webcast Scheduled for Tomorrow Williams' fourth-quarter and full-year 2024 earnings presentation will be posted at www.williams.com. The company's full-year 2024 earnings conference call and webcast with analysts and investors is scheduled for Thursday, Feb. 13, at 9:30 a.m. Eastern Time (8:30 a.m. Central Time). Participants who wish to join the call by phone must register using the following link: https://register.vevent.com/register/BI2a741c8698464278bd7752bfd9ef3746.

A webcast link to the conference call will be provided on Williams' Investor Relations website. A replay of the webcast will also be available on the website for at least 90 days following the event.

About Williams Williams (NYSE: WMB) is a trusted energy industry leader committed to safely, reliably, and responsibly meeting growing energy demand. We use our 33,000-mile pipeline infrastructure to move a third of the nation’s natural gas to where it's needed most, supplying the energy used to heat our homes, cook our food and generate low-carbon electricity. For over a century, we’ve been driven by a passion for doing things the right way. Today, our team of problem solvers is leading the charge into the clean energy future – by powering the global economy while delivering immediate emissions reductions within our natural gas network and investing in new energy technologies. Learn more at www.williams.com.

     

The Williams Companies, Inc. Consolidated Statement of Income (Unaudited) 

 

 

 

Year Ended December 31,

 

 

 

2024

 

 

 

2023

 

 

 

2022

 

 

 

(Millions, except per-share amounts)

Revenues:

 

 

 

 

 

 

Service revenues

 

$

7,628

 

 

$

7,026

 

 

$

6,536

 

Service revenues – commodity consideration

 

 

134

 

 

 

146

 

 

 

260

 

Product sales

 

 

2,991

 

 

 

2,779

 

 

 

4,556

 

Net gain (loss) from commodity derivatives

 

 

(250

)

 

 

956

 

 

 

(387

)

Total revenues

 

 

10,503

 

 

 

10,907

 

 

 

10,965

 

Costs and expenses:

 

 

 

 

 

 

Product costs

 

 

2,075

 

 

 

1,884

 

 

 

3,369

 

Net processing commodity expenses

 

 

43

 

 

 

151

 

 

 

88

 

Operating and maintenance expenses

 

 

2,179

 

 

 

1,984

 

 

 

1,817

 

Depreciation and amortization expenses

 

 

2,219

 

 

 

2,071

 

 

 

2,009

 

Selling, general, and administrative expenses

 

 

708

 

 

 

665

 

 

 

636

 

Gain on sale of business

 

 

—

 

 

 

(129

)

 

 

—

 

Other (income) expense – net

 

 

(60

)

 

 

(30

)

 

 

28

 

Total costs and expenses

 

 

7,164

 

 

 

6,596

 

 

 

7,947

 

Operating income (loss)

 

 

3,339

 

 

 

4,311

 

 

 

3,018

 

Equity earnings (losses)

 

 

560

 

 

 

589

 

 

 

637

 

Other investing income (loss) – net

 

 

343

 

 

 

108

 

 

 

16

 

Interest expense

 

 

(1,364

)

 

 

(1,236

)

 

 

(1,147

)

Net gain from Energy Transfer litigation judgment

 

 

—

 

 

 

534

 

 

 

—

 

Other income (expense) – net

 

 

108

 

 

 

99

 

 

 

18

 

Income (loss) before income taxes

 

 

2,986

 

 

 

4,405

 

 

 

2,542

 

Less: Provision (benefit) for income taxes

 

 

640

 

 

 

1,005

 

 

 

425

 

Income (loss) from continuing operations

 

 

2,346

 

 

 

3,400

 

 

 

2,117

 

Income (loss) from discontinued operations

 

 

—

 

 

 

(97

)

 

 

—

 

Net income (loss)

 

 

2,346

 

 

 

3,303

 

 

 

2,117

 

Less: Net income (loss) attributable to noncontrolling interests

 

 

121

 

 

 

124

 

 

 

68

 

Net income (loss) attributable to The Williams Companies, Inc.

 

 

2,225

 

 

 

3,179

 

 

 

2,049

 

Less: Preferred stock dividends

 

 

3

 

 

 

3

 

 

 

3

 

Net income (loss) available to common stockholders

 

$

2,222

 

 

$

3,176

 

 

$

2,046

 

Amounts attributable to The Williams Companies, Inc. available to common stockholders:

 

 

 

 

 

 

Income (loss) from continuing operations

 

$

2,222

 

 

$

3,273

 

 

$

2,046

 

Income (loss) from discontinued operations

 

 

—

 

 

 

(97

)

 

 

—

 

Net income (loss) available to common stockholders

 

$

2,222

 

 

$

3,176

 

 

$

2,046

 

Basic earnings (loss) per common share:

 

 

 

 

 

 

Income (loss) from continuing operations

 

$

1.82

 

 

$

2.69

 

 

$

1.68

 

Income (loss) from discontinued operations

 

 

—

 

 

 

(.08

)

 

 

—

 

Net income (loss) available to common stockholders

 

$

1.82

 

 

$

2.61

 

 

$

1.68

 

Weighted-average shares (thousands)

 

 

1,219,184

 

 

 

1,217,784

 

 

 

1,218,362

 

Diluted earnings (loss) per common share:

 

 

 

 

 

 

Income (loss) from continuing operations

 

$

1.82

 

 

$

2.68

 

 

$

1.67

 

Income (loss) from discontinued operations

 

 

—

 

 

 

(.08

)

 

 

—

 

Net income (loss) available to common stockholders

 

$

1.82

 

 

$

2.60

 

 

$

1.67

 

Weighted-average shares (thousands)

 

 

1,222,954

 

 

 

1,222,715

 

 

 

1,222,672

 

       

The Williams Companies, Inc. Consolidated Balance Sheet (Unaudited) 

 

 

 

December 31,

 

 

 

2024

 

 

 

2023

 

 

 

(Millions, except per-share amounts)

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

60

 

 

$

2,150

 

Trade accounts and other receivables (net of allowance of ($1) at December 31, 2024 and ($3) at December 31, 2023)

 

 

1,863

 

 

 

1,655

 

Inventories

 

 

279

 

 

 

274

 

Derivative assets

 

 

267

 

 

 

239

 

Other current assets and deferred charges

 

 

192

 

 

 

195

 

Total current assets

 

 

2,661

 

 

 

4,513

 

Investments

 

 

4,140

 

 

 

4,637

 

Property, plant, and equipment – net

 

 

38,692

 

 

 

34,311

 

Intangible assets – net of accumulated amortization

 

 

7,209

 

 

 

7,593

 

Regulatory assets, deferred charges, and other

 

 

1,807

 

 

 

1,573

 

Total assets

 

$

54,509

 

 

$

52,627

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

1,613

 

 

$

1,379

 

Derivative liabilities

 

 

164

 

 

 

105

 

Other current liabilities

 

 

1,360

 

 

 

1,284

 

Commercial paper

 

 

455

 

 

 

725

 

Long-term debt due within one year

 

 

1,720

 

 

 

2,337

 

Total current liabilities

 

 

5,312

 

 

 

5,830

 

Long-term debt

 

 

24,736

 

 

 

23,376

 

Deferred income tax liabilities

 

 

4,455

 

 

 

3,846

 

Regulatory liabilities, deferred income, and other

 

 

5,245

 

 

 

4,684

 

Contingent liabilities and commitments

 

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

Stockholders’ equity:

 

 

 

 

Preferred stock ($1 par value; 30 million shares authorized at December 31, 2024 and December 31, 2023; 35 thousand shares issued at December 31, 2024 and December 31, 2023)

 

 

35

 

 

 

35

 

Common stock ($1 par value; 1,470 million shares authorized at December 31, 2024 and December 31, 2023; 1,258 million shares issued at December 31, 2024 and 1,256 million shares issued at December 31, 2023)

 

 

1,258

 

 

 

1,256

 

Capital in excess of par value

 

 

24,643

 

 

 

24,578

 

Retained deficit

 

 

(12,396

)

 

 

(12,287

)

Accumulated other comprehensive income (loss)

 

 

76

 

 

 

—

 

Treasury stock, at cost (39 million shares at December 31, 2024 and December 31, 2023 of common stock)

 

 

(1,180

)

 

 

(1,180

)

Total stockholders’ equity

 

 

12,436

 

 

 

12,402

 

Noncontrolling interests in consolidated subsidiaries

 

 

2,404

 

 

 

2,489

 

Total equity

 

 

14,840

 

 

 

14,891

 

Total liabilities and equity

 

$

54,509

 

 

$

52,627

 

       

The Williams Companies, Inc. Consolidated Statement of Cash Flows (Unaudited) 

 

 

 

Year Ended December 31,

 

 

 

2024

 

 

 

2023

 

 

 

2022

 

 

 

(Millions)

OPERATING ACTIVITIES:

 

 

 

 

 

 

Net income (loss)

 

$

2,346

 

 

$

3,303

 

 

$

2,117

 

Adjustments to reconcile to net cash provided (used) by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

2,219

 

 

 

2,071

 

 

 

2,009

 

Provision (benefit) for deferred income taxes

 

 

506

 

 

 

951

 

 

 

431

 

Equity (earnings) losses

 

 

(560

)

 

 

(589

)

 

 

(637

)

Distributions from equity-method investees

 

 

789

 

 

 

796

 

 

 

865

 

Net unrealized (gain) loss from commodity derivative instruments

 

 

367

 

 

 

(660

)

 

 

249

 

Gain on sale of business

 

 

—

 

 

 

(129

)

 

 

—

 

Gain on disposition of equity-method investments

 

 

(149

)

 

 

—

 

 

 

—

 

Gain on remeasurement of equity-method investments

 

 

(127

)

 

 

(30

)

 

 

—

 

Inventory write-downs

 

 

10

 

 

 

30

 

 

 

161

 

Amortization of stock-based awards

 

 

99

 

 

 

77

 

 

 

73

 

Cash provided (used) by changes in current assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

(169

)

 

 

1,089

 

 

 

(733

)

Inventories

 

 

(9

)

 

 

13

 

 

 

(110

)

Other current assets and deferred charges

 

 

9

 

 

 

60

 

 

 

(33

)

Accounts payable

 

 

139

 

 

 

(1,009

)

 

 

410

 

Other current liabilities

 

 

35

 

 

 

(19

)

 

 

209

 

Changes in current and noncurrent commodity derivative assets and liabilities

 

 

(286

)

 

 

200

 

 

 

94

 

Other, including changes in noncurrent assets and liabilities

 

 

(245

)

 

 

(216

)

 

 

(216

)

Net cash provided (used) by operating activities

 

 

4,974

 

 

 

5,938

 

 

 

4,889

 

FINANCING ACTIVITIES:

 

 

 

 

 

 

Proceeds from (payments of) commercial paper – net

 

 

(269

)

 

 

372

 

 

 

345

 

Proceeds from long-term debt

 

 

3,594

 

 

 

2,755

 

 

 

1,755

 

Payments of long-term debt

 

 

(2,946

)

 

 

(634

)

 

 

(2,876

)

Payments for debt issuance costs

 

 

(32

)

 

 

(23

)

 

 

(17

)

Proceeds from issuance of common stock

 

 

10

 

 

 

6

 

 

 

54

 

Purchases of treasury stock

 

 

—

 

 

 

(130

)

 

 

(9

)

Common dividends paid

 

 

(2,316

)

 

 

(2,179

)

 

 

(2,071

)

Dividends and distributions paid to noncontrolling interests

 

 

(242

)

 

 

(213

)

 

 

(204

)

Contributions from noncontrolling interests

 

 

36

 

 

 

18

 

 

 

18

 

Other – net

 

 

(36

)

 

 

(21

)

 

 

(37

)

Net cash provided (used) by financing activities

 

 

(2,201

)

 

 

(49

)

 

 

(3,042

)

INVESTING ACTIVITIES:

 

 

 

 

 

 

Property, plant, and equipment:

 

 

 

 

 

 

Capital expenditures (1)

 

 

(2,573

)

 

 

(2,516

)

 

 

(2,253

)

Dispositions – net

 

 

(105

)

 

 

(51

)

 

 

(30

)

Proceeds from sale of business

 

 

—

 

 

 

346

 

 

 

—

 

Purchases of businesses, net of cash acquired

 

 

(2,244

)

 

 

(1,568

)

 

 

(933

)

Proceeds from dispositions of equity-method investments

 

 

161

 

 

 

—

 

 

 

—

 

Purchases of and contributions to equity-method investments

 

 

(114

)

 

 

(141

)

 

 

(166

)

Other – net

 

 

12

 

 

 

39

 

 

 

7

 

Net cash provided (used) by investing activities

 

 

(4,863

)

 

 

(3,891

)

 

 

(3,375

)

Increase (decrease) in cash and cash equivalents

 

 

(2,090

)

 

 

1,998

 

 

 

(1,528

)

Cash and cash equivalents at beginning of year

 

 

2,150

 

 

 

152

 

 

 

1,680

 

Cash and cash equivalents at end of year

 

$

60

 

 

$

2,150

 

 

$

152

 

 

 

 

 

 

 

 

(1) Increases to property, plant, and equipment

 

$

(2,581

)

 

$

(2,564

)

 

$

(2,394

)

Changes in related accounts payable and accrued liabilities

 

 

8

 

 

 

48

 

 

 

141

 

Capital expenditures

 

$

(2,573

)

 

$

(2,516

)

 

$

(2,253

)

       

Transmission & Gulf

 

(UNAUDITED)

 

 

2023

 

2024

 

(Dollars in millions)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

 

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

 

Regulated interstate natural gas transportation, storage, and other revenues (1)

$

774

 

$

786

 

$

794

 

$

822

 

$

3,176

 

 

$

836

 

$

805

 

$

833

 

$

864

 

$

3,338

 

 

Gathering, processing, storage and transportation revenues (1)

 

100

 

 

104

 

 

114

 

 

100

 

 

418

 

 

 

137

 

 

147

 

 

167

 

 

170

 

 

621

 

 

Other fee revenues

 

6

 

 

8

 

 

5

 

 

4

 

 

23

 

 

 

12

 

 

9

 

 

7

 

 

9

 

 

37

 

 

Commodity margins

 

10

 

 

8

 

 

7

 

 

8

 

 

33

 

 

 

9

 

 

5

 

 

11

 

 

28

 

 

53

 

 

Operating and administrative costs (1)

 

(254

)

 

(254

)

 

(257

)

 

(270

)

 

(1,035

)

 

 

(254

)

 

(261

)

 

(294

)

 

(295

)

 

(1,104

)

 

Other segment income (expenses) - net (1)

 

26

 

 

31

 

 

36

 

 

26

 

 

119

 

 

 

43

 

 

54

 

 

46

 

 

12

 

 

155

 

 

Gain on sale of business

 

—

 

 

—

 

 

130

 

 

(1

)

 

129

 

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

Proportional Modified EBITDA of equity-method investments

 

53

 

 

48

 

 

52

 

 

52

 

 

205

 

 

 

46

 

 

49

 

 

41

 

 

37

 

 

173

 

 

Modified EBITDA

 

715

 

 

731

 

 

881

 

 

741

 

 

3,068

 

 

 

829

 

 

808

 

 

811

 

 

825

 

 

3,273

 

 

Adjustments

 

13

 

 

17

 

 

(127

)

 

11

 

 

(86

)

 

 

10

 

 

4

 

 

19

 

 

1

 

 

34

 

 

Adjusted EBITDA

$

728

 

$

748

 

$

754

 

$

752

 

$

2,982

 

 

$

839

 

$

812

 

$

830

 

$

826

 

$

3,307

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Statistics for Operated Assets

 

 

 

 

 

 

 

 

 

 

 

 

Natural Gas Transmission (2)

 

 

 

 

 

 

 

 

 

 

 

 

Transcontinental Gas Pipe Line

 

 

 

 

 

 

 

 

 

 

 

 

Avg. daily transportation volumes (MMdth)

 

14.3

 

 

13.2

 

 

14.0

 

 

14.0

 

 

13.9

 

 

 

14.6

 

 

12.9

 

 

14.3

 

 

14.1

 

 

14.0

 

 

Avg. daily firm reserved capacity (MMdth)

 

19.5

 

 

19.4

 

 

19.4

 

 

19.3

 

 

19.4

 

 

 

20.3

 

 

19.7

 

 

20.1

 

 

20.4

 

 

20.1

 

 

Northwest Pipeline LLC

 

 

 

 

 

 

 

 

 

 

 

 

Avg. daily transportation volumes (MMdth)

 

3.1

 

 

2.3

 

 

2.3

 

 

2.8

 

 

2.6

 

 

 

3.1

 

 

2.2

 

 

2.1

 

 

2.1

 

 

2.4

 

 

Avg. daily firm reserved capacity (MMdth)

 

3.8

 

 

3.8

 

 

3.8

 

 

3.8

 

 

3.8

 

 

 

3.8

 

 

3.7

 

 

3.7

 

 

3.7

 

 

3.7

 

 

MountainWest (3)

 

 

 

 

 

 

 

 

 

 

 

 

Avg. daily transportation volumes (MMdth)

 

4.2

 

 

3.2

 

 

3.8

 

 

4.2

 

 

3.9

 

 

 

4.3

 

 

3.2

 

 

3.6

 

 

4.1

 

 

3.8

 

 

Avg. daily firm reserved capacity (MMdth)

 

7.8

 

 

7.5

 

 

7.5

 

 

7.9

 

 

7.7

 

 

 

8.4

 

 

8.0

 

 

8.1

 

 

8.3

 

 

8.2

 

 

Gulfstream - Non-consolidated

 

 

 

 

 

 

 

 

 

 

 

 

Avg. daily transportation volumes (MMdth)

 

1.0

 

 

1.2

 

 

1.4

 

 

1.1

 

 

1.2

 

 

 

1.0

 

 

1.2

 

 

1.4

 

 

1.1

 

 

1.2

 

 

Avg. daily firm reserved capacity (MMdth)

 

1.4

 

 

1.4

 

 

1.4

 

 

1.4

 

 

1.4

 

 

 

1.4

 

 

1.4

 

 

1.4

 

 

1.4

 

 

1.4

 

 

Gathering, Processing, and Crude Oil Transportation

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated (4)

 

 

 

 

 

 

 

 

 

 

 

 

Gathering volumes (Bcf/d)

 

0.28

 

 

0.23

 

 

0.27

 

 

0.27

 

 

0.26

 

 

 

0.25

 

 

0.23

 

 

0.55

 

 

0.55

 

 

0.55

 

 

Plant inlet natural gas volumes (Bcf/d)

 

0.43

 

 

0.40

 

 

0.46

 

 

0.46

 

 

0.44

 

 

 

0.45

 

 

0.27

 

 

0.73

 

 

0.75

 

 

0.71

 

 

NGL production (Mbbls/d)

 

28

 

 

24

 

 

28

 

 

26

 

 

27

 

 

 

28

 

 

17

 

 

49

 

 

54

 

 

47

 

 

NGL equity sales (Mbbls/d)

 

7

 

 

5

 

 

6

 

 

5

 

 

6

 

 

 

5

 

 

3

 

 

9

 

 

13

 

 

10

 

 

Crude oil transportation volumes (Mbbls/d)

 

119

 

 

111

 

 

134

 

 

130

 

 

123

 

 

 

118

 

 

114

 

 

109

 

 

110

 

 

113

 

 

Non-consolidated (5)

 

 

 

 

 

 

 

 

 

 

 

 

Gathering volumes (Bcf/d)

 

0.36

 

 

0.30

 

 

0.36

 

 

0.33

 

 

0.34

 

 

 

0.27

 

 

0.35

 

 

—

 

 

—

 

 

—

 

 

Plant inlet natural gas volumes (Bcf/d)

 

0.36

 

 

0.30

 

 

0.36

 

 

0.33

 

 

0.34

 

 

 

0.27

 

 

0.35

 

 

—

 

 

—

 

 

—

 

 

NGL production (Mbbls/d)

 

28

 

 

21

 

 

30

 

 

28

 

 

27

 

 

 

15

 

 

26

 

 

—

 

 

—

 

 

—

 

 

NGL equity sales (Mbbls/d)

 

8

 

 

3

 

 

8

 

 

7

 

 

7

 

 

 

3

 

 

7

 

 

—

 

 

—

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Excludes certain amounts associated with revenues and operating costs for tracked or reimbursable charges.

 

(2) Tbtu converted to MMdth at one trillion British thermal units = one million dekatherms.

 

(3) Includes 100% of the volumes associated with the MountainWest Acquisition transmission assets after the purchase on February 14, 2023, including 100% of the volumes associated with the operated equity-method investment White River Hub, LLC. Average volumes were calculated over the period owned.

 

(4) Volumes associated with Discovery Producer Services for the 3rd and 4th Qtrs 2024 and Year 2024 are presented entirely in the Consolidated section. We acquired the remaining 40 percent of Discovery on August 1, 2024.

 

(5) Includes 100% of the volumes associated with operated equity-method investment Discovery Producer Services through 2nd Qtr 2024.

 

       

Northeast G&P

 

(UNAUDITED)

 

 

2023

 

2024

 

(Dollars in millions)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

 

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

 

Gathering, processing, transportation, and fractionation revenues (1)

$

391

 

$

431

 

$

417

 

$

411

 

$

1,650

 

 

$

411

 

$

398

 

$

407

 

$

419

 

$

1,635

 

 

Other fee revenues

 

32

 

 

27

 

 

27

 

 

28

 

 

114

 

 

 

34

 

 

35

 

 

33

 

 

33

 

 

135

 

 

Commodity margins

 

5

 

 

(1

)

 

7

 

 

1

 

 

12

 

 

 

11

 

 

—

 

 

8

 

 

5

 

 

24

 

 

Operating and administrative costs (1)

 

(101

)

 

(101

)

 

(115

)

 

(107

)

 

(424

)

 

 

(108

)

 

(108

)

 

(120

)

 

(105

)

 

(441

)

 

Other segment income (expenses) - net

 

—

 

 

—

 

 

(1

)

 

(9

)

 

(10

)

 

 

(1

)

 

3

 

 

(1

)

 

2

 

 

3

 

 

Proportional Modified EBITDA of equity-method investments

 

143

 

 

159

 

 

119

 

 

153

 

 

574

 

 

 

157

 

 

153

 

 

149

 

 

143

 

 

602

 

 

Modified EBITDA

 

470

 

 

515

 

 

454

 

 

477

 

 

1,916

 

 

 

504

 

 

481

 

 

476

 

 

497

 

 

1,958

 

 

Adjustments

 

—

 

 

—

 

 

31

 

 

8

 

 

39

 

 

 

—

 

 

(2

)

 

8

 

 

2

 

 

8

 

 

Adjusted EBITDA

$

470

 

$

515

 

$

485

 

$

485

 

$

1,955

 

 

$

504

 

$

479

 

$

484

 

$

499

 

$

1,966

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Statistics for Operated Assets

 

 

 

 

 

 

 

 

 

 

 

 

Gathering and Processing

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated (2)

 

 

 

 

 

 

 

 

 

 

 

 

Gathering volumes (Bcf/d)

 

4.42

 

 

4.61

 

 

4.41

 

 

4.37

 

 

4.45

 

 

 

4.33

 

 

4.11

 

 

4.04

 

 

4.16

 

 

4.16

 

 

Plant inlet natural gas volumes (Bcf/d)

 

1.92

 

 

1.79

 

 

1.93

 

 

1.93

 

 

1.89

 

 

 

1.76

 

 

1.77

 

 

1.99

 

 

1.93

 

 

1.86

 

 

NGL production (Mbbls/d)

 

144

 

 

135

 

 

144

 

 

133

 

 

139

 

 

 

133

 

 

136

 

 

140

 

 

145

 

 

139

 

 

NGL equity sales (Mbbls/d)

 

1

 

 

1

 

 

—

 

 

1

 

 

1

 

 

 

1

 

 

1

 

 

1

 

 

—

 

 

1

 

 

Non-consolidated (3)

 

 

 

 

 

 

 

 

 

 

 

 

Gathering volumes (Bcf/d)

 

6.97

 

 

7.03

 

 

6.83

 

 

6.85

 

 

6.92

 

 

 

6.79

 

 

6.42

 

 

6.40

 

 

6.22

 

 

6.46

 

 

Plant inlet natural gas volumes (Bcf/d)

 

0.77

 

 

0.93

 

 

0.99

 

 

1.01

 

 

0.93

 

 

 

0.98

 

 

0.94

 

 

0.98

 

 

1.04

 

 

0.98

 

 

NGL production (Mbbls/d)

 

54

 

 

64

 

 

71

 

 

69

 

 

65

 

 

 

72

 

 

70

 

 

72

 

 

74

 

 

72

 

 

NGL equity sales (Mbbls/d)

 

4

 

 

5

 

 

4

 

 

4

 

 

4

 

 

 

3

 

 

6

 

 

5

 

 

5

 

 

5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Excludes certain amounts associated with revenues and operating costs for reimbursable charges.

 

(2) Includes volumes associated with Susquehanna Supply Hub, the Northeast JV, and Utica Supply Hub, all of which are consolidated.

 

(3) Includes 100% of the volumes associated with operated equity-method investments, including the Laurel Mountain Midstream partnership, Blue Racer Midstream, and the Bradford Supply Hub and the Marcellus South Supply Hub within the Appalachia Midstream Services partnership.

 

       

West

 

(UNAUDITED)

 

 

2023

 

2024

 

(Dollars in millions)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

 

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

 

Net gathering, processing, transportation, storage, and fractionation revenues (1)

$

382

 

$

373

 

$

371

 

$

397

 

$

1,523

 

 

$

421

 

$

397

 

$

409

 

$

427

 

$

1,654

 

 

Other fee revenues

 

5

 

 

7

 

 

4

 

 

8

 

 

24

 

 

 

8

 

 

5

 

 

4

 

 

8

 

 

25

 

 

Commodity margins

 

(24

)

 

18

 

 

21

 

 

19

 

 

34

 

 

 

12

 

 

30

 

 

27

 

 

28

 

 

97

 

 

Operating and administrative costs (1)

 

(115

)

 

(122

)

 

(122

)

 

(144

)

 

(503

)

 

 

(139

)

 

(148

)

 

(157

)

 

(147

)

 

(591

)

 

Other segment income (expenses) - net

 

23

 

 

(7

)

 

(4

)

 

(14

)

 

(2

)

 

 

—

 

 

(2

)

 

5

 

 

(8

)

 

(5

)

 

Proportional Modified EBITDA of equity-method investments

 

33

 

 

43

 

 

45

 

 

41

 

 

162

 

 

 

25

 

 

36

 

 

35

 

 

36

 

 

132

 

 

Modified EBITDA

 

304

 

 

312

 

 

315

 

 

307

 

 

1,238

 

 

 

327

 

 

318

 

 

323

 

 

344

 

 

1,312

 

 

Adjustments

 

(18

)

 

—

 

 

—

 

 

16

 

 

(2

)

 

 

1

 

 

1

 

 

7

 

 

1

 

 

10

 

 

Adjusted EBITDA

$

286

 

$

312

 

$

315

 

$

323

 

$

1,236

 

 

$

328

 

$

319

 

$

330

 

$

345

 

$

1,322

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Statistics for Operated Assets

 

 

 

 

 

 

 

 

 

 

 

 

Gathering and Processing

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated (2)

 

 

 

 

 

 

 

 

 

 

 

 

Gathering volumes (Bcf/d) (3)

 

5.47

 

 

5.51

 

 

5.60

 

 

6.03

 

 

6.02

 

 

 

5.75

 

 

5.25

 

 

5.38

 

 

5.46

 

 

5.46

 

 

Plant inlet natural gas volumes (Bcf/d)

 

0.92

 

 

1.06

 

 

1.12

 

 

1.63

 

 

1.54

 

 

 

1.52

 

 

1.48

 

 

1.57

 

 

1.57

 

 

1.54

 

 

NGL production (Mbbls/d)

 

25

 

 

40

 

 

61

 

 

99

 

 

91

 

 

 

87

 

 

91

 

 

91

 

 

90

 

 

90

 

 

NGL equity sales (Mbbls/d)

 

6

 

 

16

 

 

22

 

 

14

 

 

14

 

 

 

6

 

 

8

 

 

6

 

 

7

 

 

7

 

 

Non-consolidated (4)

 

 

 

 

 

 

 

 

 

 

 

 

Gathering volumes (Bcf/d)

 

0.32

 

 

0.33

 

 

0.33

 

 

—

 

 

—

 

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

Plant inlet natural gas volumes (Bcf/d)

 

0.32

 

 

0.32

 

 

0.32

 

 

—

 

 

—

 

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

NGL production (Mbbls/d)

 

37

 

 

38

 

 

38

 

 

—

 

 

—

 

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

NGL and Crude Oil Transportation volumes (Mbbls/d) (5)

 

161

 

 

217

 

 

244

 

 

250

 

 

218

 

 

 

220

 

 

292

 

 

304

 

 

314

 

 

282

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Excludes certain amounts associated with revenues and operating costs for reimbursable charges.

 

(2) Excludes volumes associated with equity-method investments that are not consolidated in our results.

 

(3) Includes 100% of the volumes associated with the Cureton Acquisition gathering assets after the purchase on November 30, 2023. Average volumes were calculated over the period owned.

 

(4) Includes 100% of the volumes associated with operated equity-method investment Rocky Mountain Midstream through 3rd Qtr 2023.

 

(5) Includes 100% of the volumes associated with Overland Pass Pipeline Company (an operated equity-method investment), RMM, and Bluestem pipeline.

 

       

Gas & NGL Marketing Services

 

(UNAUDITED)

 

 

2023

 

2024

 

(Dollars in millions)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

 

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

 

Commodity margins

$

265

 

$

(2

)

$

38

 

$

88

 

$

389

 

 

$

236

 

$

3

 

$

23

 

$

63

 

$

325

 

 

Other fee revenues

 

1

 

 

—

 

 

—

 

 

—

 

 

1

 

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

Net unrealized gain (loss) from derivative instruments

 

333

 

 

94

 

 

24

 

 

208

 

 

659

 

 

 

(95

)

 

(106

)

 

10

 

 

(150

)

 

(341

)

 

Operating and administrative costs

 

(32

)

 

(24

)

 

(19

)

 

(24

)

 

(99

)

 

 

(40

)

 

(23

)

 

(22

)

 

(23

)

 

(108

)

 

Modified EBITDA

 

567

 

 

68

 

 

43

 

 

272

 

 

950

 

 

 

101

 

 

(126

)

 

11

 

 

(110

)

 

(124

)

 

Adjustments

 

(336

)

 

(84

)

 

(27

)

 

(203

)

 

(650

)

 

 

88

 

 

112

 

 

(7

)

 

146

 

 

339

 

 

Adjusted EBITDA

$

231

 

$

(16

)

$

16

 

$

69

 

$

300

 

 

$

189

 

$

(14

)

$

4

 

$

36

 

$

215

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Statistics

 

 

 

 

 

 

 

 

 

 

 

 

Product Sales Volumes

 

 

 

 

 

 

 

 

 

 

 

 

Natural Gas (Bcf/d)

 

7.24

 

 

6.56

 

 

7.31

 

 

7.11

 

 

7.05

 

 

 

7.53

 

 

6.98

 

 

7.14

 

 

6.81

 

 

7.11

 

 

NGLs (Mbbls/d)

 

234

 

 

239

 

 

245

 

 

173

 

 

223

 

 

 

170

 

 

162

 

 

182

 

 

196

 

 

177

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

       

Other

 

(UNAUDITED)

 

 

2023

 

2024

 

(Dollars in millions)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

 

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

 

Service revenues

$

3

 

$

5

 

$

4

 

$

4

 

$

16

 

 

$

4

 

$

4

 

$

4

 

$

3

 

$

15

 

 

Net realized product sales

 

120

 

 

97

 

 

127

 

 

145

 

 

489

 

 

 

113

 

 

109

 

 

96

 

 

137

 

 

455

 

 

Net unrealized gain (loss) from derivative instruments

 

(6

)

 

(11

)

 

(1

)

 

19

 

 

1

 

 

 

3

 

 

(25

)

 

3

 

 

(7

)

 

(26

)

 

Operating and administrative costs

 

(48

)

 

(54

)

 

(58

)

 

(65

)

 

(225

)

 

 

(51

)

 

(50

)

 

(51

)

 

(77

)

 

(229

)

 

Other segment income (expenses) - net

 

5

 

 

5

 

 

10

 

 

8

 

 

28

 

 

 

7

 

 

9

 

 

4

 

 

—

 

 

20

 

 

Net gain from Energy Transfer litigation judgment

 

—

 

 

—

 

 

—

 

 

534

 

 

534

 

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

Proportional Modified EBITDA of equity-method investments

 

—

 

 

(1

)

 

(1

)

 

—

 

 

(2

)

 

 

—

 

 

—

 

 

2

 

 

—

 

 

2

 

 

Modified EBITDA

 

74

 

 

41

 

 

81

 

 

645

 

 

841

 

 

 

76

 

 

47

 

 

58

 

 

56

 

 

237

 

 

Adjustments

 

6

 

 

11

 

 

1

 

 

(553

)

 

(535

)

 

 

(2

)

 

24

 

 

(3

)

 

14

 

 

33

 

 

Adjusted EBITDA

$

80

 

$

52

 

$

82

 

$

92

 

$

306

 

 

$

74

 

$

71

 

$

55

 

$

70

 

$

270

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Statistics

 

 

 

 

 

 

 

 

 

 

 

 

Net Product Sales Volumes(1)

 

 

 

 

 

 

 

 

 

 

 

 

Natural Gas (Bcf/d)

 

0.26

 

 

0.29

 

 

0.31

 

 

0.30

 

 

0.29

 

 

 

0.28

 

 

0.24

 

 

0.29

 

 

0.31

 

 

0.31

 

 

NGLs (Mbbls/d)

 

3

 

 

6

 

 

9

 

 

10

 

 

7

 

 

 

8

 

 

8

 

 

9

 

 

10

 

 

11

 

 

Crude Oil (Mbbls/d)

 

1

 

 

3

 

 

5

 

 

7

 

 

4

 

 

 

5

 

 

5

 

 

4

 

 

6

 

 

6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes 100% of the volumes associated with the Crowheart Acquisition upstream assets after the purchase on November 1, 2024. Average volumes were calculated over the period owned.

 

 

 

       

Capital Expenditures and Investments

 

(UNAUDITED)

 

 

2023

 

2024

 

(Dollars in millions)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

 

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures:

 

 

 

 

 

 

 

 

 

 

 

 

Transmission & Gulf

$

205

$

263

 

$

382

 

$

404

 

$

1,254

 

 

$

310

$

397

 

$

459

 

$

428

$

1,594

 

 

Northeast G&P

 

99

 

74

 

 

115

 

 

71

 

 

359

 

 

 

71

 

46

 

 

54

 

 

53

 

224

 

 

West

 

169

 

197

 

 

141

 

 

121

 

 

628

 

 

 

120

 

90

 

 

98

 

 

180

 

488

 

 

Other

 

72

 

76

 

 

52

 

 

75

 

 

275

 

 

 

43

 

46

 

 

71

 

 

107

 

267

 

 

Total (1)

$

545

$

610

 

$

690

 

$

671

 

$

2,516

 

 

$

544

$

579

 

$

682

 

$

768

$

2,573

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchases of and contributions to equity-method investments:

 

 

 

 

 

 

 

 

 

 

 

Transmission & Gulf

$

8

$

18

 

$

6

 

$

9

 

$

41

 

 

$

27

$

10

 

$

—

 

$

—

$

37

 

 

Northeast G&P

 

31

 

12

 

 

4

 

 

52

 

 

99

 

 

 

25

 

19

 

 

19

 

 

12

 

75

 

 

West

 

—

 

—

 

 

1

 

 

—

 

 

1

 

 

 

—

 

1

 

 

—

 

 

1

 

2

 

 

Other

 

—

 

—

 

 

—

 

 

—

 

 

—

 

 

 

—

 

—

 

 

—

 

 

—

 

—

 

 

Total

$

39

$

30

 

$

11

 

$

61

 

$

141

 

 

$

52

$

30

 

$

19

 

$

13

$

114

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Summary:

 

 

 

 

 

 

 

 

 

 

 

 

Transmission & Gulf

$

213

$

281

 

$

388

 

$

413

 

$

1,295

 

 

$

337

$

407

 

$

459

 

$

428

$

1,631

 

 

Northeast G&P

 

130

 

86

 

 

119

 

 

123

 

 

458

 

 

 

96

 

65

 

 

73

 

 

65

 

299

 

 

West

 

169

 

197

 

 

142

 

 

121

 

 

629

 

 

 

120

 

91

 

 

98

 

 

181

 

490

 

 

Other

 

72

 

76

 

 

52

 

 

75

 

 

275

 

 

 

43

 

46

 

 

71

 

 

107

 

267

 

 

Total

$

584

$

640

 

$

701

 

$

732

 

$

2,657

 

 

$

596

$

609

 

$

701

 

$

781

$

2,687

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital investments:

 

 

 

 

 

 

 

 

 

 

 

 

Increases to property, plant, and equipment

$

484

$

684

 

$

792

 

$

604

 

$

2,564

 

 

$

509

$

632

 

$

699

 

$

741

$

2,581

 

 

Purchases of businesses, net of cash acquired

 

1,056

 

(3

)

 

(29

)

 

544

 

 

1,568

 

 

 

1,851

 

(7

)

 

151

 

 

249

 

2,244

 

 

Purchases of and contributions to equity-method investments

 

39

 

30

 

 

11

 

 

61

 

 

141

 

 

 

52

 

30

 

 

19

 

 

13

 

114

 

 

Purchases of other long-term investments

 

2

 

1

 

 

2

 

 

1

 

 

6

 

 

 

2

 

1

 

 

2

 

 

6

 

11

 

 

Total

$

1,581

$

712

 

$

776

 

$

1,210

 

$

4,279

 

 

$

2,414

$

656

 

$

871

 

$

1,009

$

4,950

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Increases to property, plant, and equipment

$

484

$

684

 

$

792

 

$

604

 

$

2,564

 

 

$

509

$

632

 

$

699

 

$

741

$

2,581

 

 

Changes in related accounts payable and accrued liabilities

 

61

 

(74

)

 

(102

)

 

67

 

 

(48

)

 

 

35

 

(53

)

 

(17

)

 

27

 

(8

)

 

Capital expenditures

$

545

$

610

 

$

690

 

$

671

 

$

2,516

 

 

$

544

$

579

 

$

682

 

$

768

$

2,573

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contributions from noncontrolling interests

$

3

$

15

 

$

—

 

$

—

 

$

18

 

 

$

26

$

10

 

$

—

 

$

—

$

36

 

 

Contributions in aid of construction

$

11

$

7

 

$

2

 

$

8

 

$

28

 

 

$

10

$

13

 

$

—

 

$

4

$

27

 

 

Proceeds from sale of business

$

—

$

—

 

$

348

 

$

(2

)

$

346

 

 

$

—

$

—

 

$

—

 

$

—

$

—

 

 

Proceeds from dispositions of equity-method investments

$

—

$

—

 

$

—

 

$

—

 

$

—

 

 

$

—

$

—

 

$

161

 

$

—

$

161

 

 

   

Non-GAAP Measures 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, 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.

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 net income (loss) excluding the effect of certain noncash items, reduced by distributions from equity-method investees, net distributions to noncontrolling interests, and preferred dividends. AFFO may also 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.

   

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

 

(UNAUDITED)

 

 

2023

 

 

2024

 

(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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations attributable to The Williams Companies, Inc. available to common stockholders

$

926

 

$

547

 

$

654

 

$

1,146

 

$

3,273

 

 

$

631

 

$

401

 

$

705

 

$

485

 

$

2,222

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations - diluted earnings (loss) per common share (1)

$

.76

 

$

.45

 

$

.54

 

$

.94

 

$

2.68

 

 

$

.52

 

$

.33

 

$

.58

 

$

.40

 

$

1.82

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

Transmission & Gulf

 

 

 

 

 

 

 

 

 

 

 

 

MountainWest acquisition and transition-related costs*

$

13

 

$

17

 

$

3

 

$

9

 

$

42

 

 

$

—

 

$

1

 

$

3

 

$

—

 

$

4

 

 

Gulf Coast Storage acquisition and transition-related costs*

 

—

 

 

—

 

 

—

 

 

1

 

 

1

 

 

 

10

 

 

3

 

 

—

 

 

—

 

 

13

 

 

Discovery acquisition and transition-related costs*

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

 

—

 

 

—

 

 

—

 

 

1

 

 

1

 

 

Gain on sale of business

 

—

 

 

—

 

 

(130

)

 

1

 

 

(129

)

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

Impact of change in payroll policy*

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

 

—

 

 

—

 

 

16

 

 

—

 

 

16

 

 

Total Transmission & Gulf adjustments

 

13

 

 

17

 

 

(127

)

 

11

 

 

(86

)

 

 

10

 

 

4

 

 

19

 

 

1

 

 

34

 

 

Northeast G&P

 

 

 

 

 

 

 

 

 

 

 

 

Accrual for loss contingency*

 

—

 

 

—

 

 

—

 

 

10

 

 

10

 

 

 

—

 

 

(3

)

 

—

 

 

—

 

 

(3

)

 

Our share of operator transition costs at Blue Racer Midstream*

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

 

—

 

 

1

 

 

1

 

 

2

 

 

4

 

 

Our share of accrual for loss contingency at Aux Sable Liquid Products LP

 

—

 

 

—

 

 

31

 

 

(2

)

 

29

 

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

Impact of change in payroll policy*

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

 

—

 

 

—

 

 

7

 

 

—

 

 

7

 

 

Total Northeast G&P adjustments

 

—

 

 

—

 

 

31

 

 

8

 

 

39

 

 

 

—

 

 

(2

)

 

8

 

 

2

 

 

8

 

 

West

 

 

 

 

 

 

 

 

 

 

 

 

Cureton acquisition and transition-related costs*

 

—

 

 

—

 

 

—

 

 

6

 

 

6

 

 

 

1

 

 

1

 

 

—

 

 

1

 

 

3

 

 

Gain from contract settlement

 

(18

)

 

—

 

 

—

 

 

—

 

 

(18

)

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

Impairment of assets held for sale

 

—

 

 

—

 

 

—

 

 

10

 

 

10

 

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

Impact of change in payroll policy*

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

 

—

 

 

—

 

 

7

 

 

—

 

 

7

 

 

Total West adjustments

 

(18

)

 

—

 

 

—

 

 

16

 

 

(2

)

 

 

1

 

 

1

 

 

7

 

 

1

 

 

10

 

 

Gas & NGL Marketing Services

 

 

 

 

 

 

 

 

 

 

 

 

Impact of volatility on NGL linefill transactions*

 

(3

)

 

10

 

 

(3

)

 

5

 

 

9

 

 

 

(6

)

 

5

 

 

2

 

 

(4

)

 

(3

)

 

Net unrealized (gain) loss from derivative instruments

 

(333

)

 

(94

)

 

(24

)

 

(208

)

 

(659

)

 

 

94

 

 

107

 

 

(10

)

 

150

 

 

341

 

 

Impact of change in payroll policy*

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

 

—

 

 

—

 

 

1

 

 

—

 

 

1

 

 

Total Gas & NGL Marketing Services adjustments

 

(336

)

 

(84

)

 

(27

)

 

(203

)

 

(650

)

 

 

88

 

 

112

 

 

(7

)

 

146

 

 

339

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

Crowheart acquisition and transition-related costs*

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

 

—

 

 

—

 

 

—

 

 

1

 

 

1

 

 

Net unrealized (gain) loss from derivative instruments

 

6

 

 

11

 

 

1

 

 

(19

)

 

(1

)

 

 

(2

)

 

24

 

 

(3

)

 

7

 

 

26

 

 

Settlement charge related to former operations*

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

 

—

 

 

—

 

 

—

 

 

6

 

 

6

 

 

Net gain from Energy Transfer litigation judgment

 

—

 

 

—

 

 

—

 

 

(534

)

 

(534

)

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

Total Other adjustments

 

6

 

 

11

 

 

1

 

 

(553

)

 

(535

)

 

 

(2

)

 

24

 

 

(3

)

 

14

 

 

33

 

 

Adjustments included in Modified EBITDA

 

(335

)

 

(56

)

 

(122

)

 

(721

)

 

(1,234

)

 

 

97

 

 

139

 

 

24

 

 

164

 

 

424

 

 

Adjustments below Modified EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

Gain on remeasurement of RMM investment

 

—

 

 

—

 

 

—

 

 

(30

)

 

(30

)

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

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 Sequent acquisition

 

15

 

 

14

 

 

15

 

 

15

 

 

59

 

 

 

7

 

 

7

 

 

8

 

 

7

 

 

29

 

 

 

 

15

 

 

14

 

 

15

 

 

(15

)

 

29

 

 

 

19

 

 

19

 

 

(257

)

 

16

 

 

(203

)

 

Total adjustments

 

(320

)

 

(42

)

 

(107

)

 

(736

)

 

(1,205

)

 

 

116

 

 

158

 

 

(233

)

 

180

 

 

221

 

 

Less tax effect for above items

 

78

 

 

10

 

 

25

 

 

178

 

 

291

 

 

 

(28

)

 

(38

)

 

56

 

 

(42

)

 

(52

)

 

Adjustments for tax-related items (2)

 

—

 

 

—

 

 

(25

)

 

—

 

 

(25

)

 

 

—

 

 

—

 

 

—

 

 

(44

)

 

(44

)

 

Adjusted income from continuing operations available to common stockholders

$

684

 

$

515

 

$

547

 

$

588

 

$

2,334

 

 

$

719

 

$

521

 

$

528

 

$

579

 

$

2,347

 

 

Adjusted income from continuing operations - diluted earnings per common share (1)

$

.56

 

$

.42

 

$

.45

 

$

.48

 

$

1.91

 

 

$

.59

 

$

.43

 

$

.43

 

$

.47

 

$

1.92

 

 

Weighted-average shares - diluted (thousands)

 

1,225,781

 

 

1,219,915

 

 

1,220,073

 

 

1,221,894

 

 

1,221,616

 

 

 

1,222,222

 

 

1,222,236

 

 

1,222,869

 

 

1,224,472

 

 

1,222,954

 

 

(1) The 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.

 

(2) The third quarter of 2023 and the fourth quarter of 2024 include an adjustment associated with a decrease in our estimated deferred state income tax rate.

 

*Amounts for the 2024 periods are included in Additional adjustments on the Reconciliation of Cash Flow from Operating Activities to Non-GAAP Available Funds from Operations (AFFO).

 

       

Reconciliation of "Net Income (Loss)" to “Modified EBITDA” and Non-GAAP “Adjusted EBITDA”

 

(UNAUDITED)

 

 

2023

 

2024

 

(Dollars in millions)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

 

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$

957

 

$

494

 

$

684

 

$

1,168

 

$

3,303

 

 

$

662

 

$

426

 

$

741

 

$

517

 

$

2,346

 

 

Provision (benefit) for income taxes

 

284

 

 

175

 

 

176

 

 

370

 

 

1,005

 

 

 

193

 

 

129

 

 

227

 

 

91

 

 

640

 

 

Interest expense

 

294

 

 

306

 

 

314

 

 

322

 

 

1,236

 

 

 

349

 

 

339

 

 

338

 

 

338

 

 

1,364

 

 

Equity (earnings) losses

 

(147

)

 

(160

)

 

(127

)

 

(155

)

 

(589

)

 

 

(137

)

 

(147

)

 

(147

)

 

(129

)

 

(560

)

 

Other investing (income) loss - net

 

(8

)

 

(13

)

 

(24

)

 

(63

)

 

(108

)

 

 

(24

)

 

(18

)

 

(290

)

 

(11

)

 

(343

)

 

Proportional Modified EBITDA of equity-method investments

 

229

 

 

249

 

 

215

 

 

246

 

 

939

 

 

 

228

 

 

238

 

 

227

 

 

216

 

 

909

 

 

Depreciation and amortization expenses

 

506

 

 

515

 

 

521

 

 

529

 

 

2,071

 

 

 

548

 

 

540

 

 

566

 

 

565

 

 

2,219

 

 

Accretion expense associated with asset retirement obligations for nonregulated operations

 

15

 

 

14

 

 

14

 

 

16

 

 

59

 

 

 

18

 

 

21

 

 

17

 

 

25

 

 

81

 

 

(Income) loss from discontinued operations, net of tax

 

—

 

 

87

 

 

1

 

 

9

 

 

97

 

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

Modified EBITDA

$

2,130

 

$

1,667

 

$

1,774

 

$

2,442

 

$

8,013

 

 

$

1,837

 

$

1,528

 

$

1,679

 

$

1,612

 

$

6,656

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transmission & Gulf

$

715

 

$

731

 

$

881

 

$

741

 

$

3,068

 

 

$

829

 

$

808

 

$

811

 

$

825

 

$

3,273

 

 

Northeast G&P

 

470

 

 

515

 

 

454

 

 

477

 

 

1,916

 

 

 

504

 

 

481

 

 

476

 

 

497

 

 

1,958

 

 

West

 

304

 

 

312

 

 

315

 

 

307

 

 

1,238

 

 

 

327

 

 

318

 

 

323

 

 

344

 

 

1,312

 

 

Gas & NGL Marketing Services

 

567

 

 

68

 

 

43

 

 

272

 

 

950

 

 

 

101

 

 

(126

)

 

11

 

 

(110

)

 

(124

)

 

Other

 

74

 

 

41

 

 

81

 

 

645

 

 

841

 

 

 

76

 

 

47

 

 

58

 

 

56

 

 

237

 

 

Total Modified EBITDA

$

2,130

 

$

1,667

 

$

1,774

 

$

2,442

 

$

8,013

 

 

$

1,837

 

$

1,528

 

$

1,679

 

$

1,612

 

$

6,656

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments (1):

 

 

 

 

 

 

 

 

 

 

 

 

Transmission & Gulf

$

13

 

$

17

 

$

(127

)

$

11

 

$

(86

)

 

$

10

 

$

4

 

$

19

 

$

1

 

$

34

 

 

Northeast G&P

 

—

 

 

—

 

 

31

 

 

8

 

 

39

 

 

 

—

 

 

(2

)

 

8

 

 

2

 

 

8

 

 

West

 

(18

)

 

—

 

 

—

 

 

16

 

 

(2

)

 

 

1

 

 

1

 

 

7

 

 

1

 

 

10

 

 

Gas & NGL Marketing Services

 

(336

)

 

(84

)

 

(27

)

 

(203

)

 

(650

)

 

 

88

 

 

112

 

 

(7

)

 

146

 

 

339

 

 

Other

 

6

 

 

11

 

 

1

 

 

(553

)

 

(535

)

 

 

(2

)

 

24

 

 

(3

)

 

14

 

 

33

 

 

Total Adjustments

$

(335

)

$

(56

)

$

(122

)

$

(721

)

$

(1,234

)

 

$

97

 

$

139

 

$

24

 

$

164

 

$

424

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA:

 

 

 

 

 

 

 

 

 

 

 

 

Transmission & Gulf

$

728

 

$

748

 

$

754

 

$

752

 

$

2,982

 

 

$

839

 

$

812

 

$

830

 

$

826

 

$

3,307

 

 

Northeast G&P

 

470

 

 

515

 

 

485

 

 

485

 

 

1,955

 

 

 

504

 

 

479

 

 

484

 

 

499

 

 

1,966

 

 

West

 

286

 

 

312

 

 

315

 

 

323

 

 

1,236

 

 

 

328

 

 

319

 

 

330

 

 

345

 

 

1,322

 

 

Gas & NGL Marketing Services

 

231

 

 

(16

)

 

16

 

 

69

 

 

300

 

 

 

189

 

 

(14

)

 

4

 

 

36

 

 

215

 

 

Other

 

80

 

 

52

 

 

82

 

 

92

 

 

306

 

 

 

74

 

 

71

 

 

55

 

 

70

 

 

270

 

 

Total Adjusted EBITDA

$

1,795

 

$

1,611

 

$

1,652

 

$

1,721

 

$

6,779

 

 

$

1,934

 

$

1,667

 

$

1,703

 

$

1,776

 

$

7,080

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Adjustments 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 Cash Flow from Operating Activities to Non-GAAP Available Funds from Operations (AFFO)

 

(UNAUDITED)

 

 

2023

 

2024

 

(Dollars in millions, except coverage ratios)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

 

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided (used) by operating activities

$

1,514

 

$

1,377

 

$

1,234

 

$

1,813

 

$

5,938

 

 

$

1,234

 

$

1,279

 

$

1,243

 

$

1,218

 

$

4,974

 

 

Exclude: Cash (provided) used by changes in:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

(1,269

)

 

(154

)

 

128

 

 

206

 

 

(1,089

)

 

 

(314

)

 

44

 

 

(97

)

 

536

 

 

169

 

 

Inventories, including write-downs

 

(45

)

 

(19

)

 

7

 

 

14

 

 

(43

)

 

 

(38

)

 

35

 

 

1

 

 

1

 

 

(1

)

 

Other current assets and deferred charges

 

4

 

 

(28

)

 

29

 

 

(65

)

 

(60

)

 

 

(9

)

 

(3

)

 

28

 

 

(25

)

 

(9

)

 

Accounts payable

 

1,017

 

 

203

 

 

(148

)

 

(63

)

 

1,009

 

 

 

309

 

 

(90

)

 

98

 

 

(456

)

 

(139

)

 

Other current liabilities

 

318

 

 

(246

)

 

42

 

 

(95

)

 

19

 

 

 

218

 

 

(142

)

 

32

 

 

(143

)

 

(35

)

 

Changes in current and noncurrent commodity derivative assets and liabilities

 

(82

)

 

(37

)

 

(53

)

 

(28

)

 

(200

)

 

 

68

 

 

73

 

 

(67

)

 

212

 

 

286

 

 

Other, including changes in noncurrent assets and liabilities (1)

 

40

 

 

47

 

 

53

 

 

106

 

 

246

 

 

 

61

 

 

90

 

 

49

 

 

45

 

 

245

 

 

Preferred dividends paid

 

(1

)

 

—

 

 

(1

)

 

(1

)

 

(3

)

 

 

(1

)

 

—

 

 

(1

)

 

(1

)

 

(3

)

 

Dividends and distributions paid to noncontrolling interests

 

(54

)

 

(58

)

 

(62

)

 

(39

)

 

(213

)

 

 

(64

)

 

(66

)

 

(48

)

 

(64

)

 

(242

)

 

Contributions from noncontrolling interests

 

3

 

 

15

 

 

—

 

 

—

 

 

18

 

 

 

26

 

 

10

 

 

—

 

 

—

 

 

36

 

 

Adjustment to exclude litigation-related charges in discontinued operations

 

—

 

 

115

 

 

1

 

 

9

 

 

125

 

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

Adjustment to exclude net gain from Energy Transfer litigation judgment

 

—

 

 

—

 

 

—

 

 

(534

)

 

(534

)

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

Additional Adjustments (2)

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

 

17

 

 

20

 

 

48

 

 

12

 

 

97

 

 

Available funds from operations

$

1,445

 

$

1,215

 

$

1,230

 

$

1,323

 

$

5,213

 

 

$

1,507

 

$

1,250

 

$

1,286

 

$

1,335

 

$

5,378

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common dividends paid

$

546

 

$

545

 

$

544

 

$

544

 

$

2,179

 

 

$

579

 

$

579

 

$

579

 

$

579

 

$

2,316

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Coverage ratio:

 

 

 

 

 

 

 

 

 

 

 

 

Available funds from operations divided by Common dividends paid

 

2.65

 

 

2.23

 

 

2.26

 

 

2.43

 

 

2.39

 

 

 

2.60

 

 

2.16

 

 

2.22

 

 

2.31

 

 

2.32

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) The fourth quarter of 2023 includes a $30 million gain on the remeasurement of the Rocky Mountain Midstream investment.

 

(2) See detail on Reconciliation of Income (Loss) from Continuing Operations Attributable to The Williams Companies, Inc. to Non-GAAP Adjusted Income.

 

       

Reconciliation of Net Income (Loss) from Continuing Operations to Modified EBITDA, Non-GAAP Adjusted EBITDA and Cash Flow from Operating Activities to 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

 

 

$

2,525

 

$

2,675

 

 

$

2,825

Provision (benefit) for income taxes

 

 

 

765

 

 

815

 

 

 

865

Interest expense

 

 

 

 

 

1,415

 

 

 

Equity (earnings) losses

 

 

 

 

 

(580

)

 

 

Proportional Modified EBITDA of equity-method investments

 

 

 

 

 

930

 

 

 

Depreciation and amortization expenses and accretion for asset retirement obligations associated with nonregulated operations

 

 

 

 

 

2,400

 

 

 

Other

 

 

 

 

 

(5

)

 

 

Modified EBITDA

 

 

$

7,450

 

$

7,650

 

 

$

7,850

EBITDA Adjustments

 

 

 

 

 

—

 

 

 

Adjusted EBITDA

 

 

$

7,450

 

$

7,650

 

 

$

7,850

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations

 

 

$

2,525

 

$

2,675

 

 

$

2,825

Less: Net income (loss) attributable to noncontrolling interests and preferred dividends

 

 

 

 

 

163

 

 

 

Net income (loss) from continuing operations attributable to The Williams Companies, Inc. available to common stockholders

 

 

$

2,362

 

$

2,512

 

 

$

2,662

 

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

Adjustments included in Modified EBITDA

 

 

 

 

 

—

 

 

 

Adjustments below Modified EBITDA (1)

 

 

 

 

 

18

 

 

 

Allocation of adjustments to noncontrolling interests

 

 

 

 

 

—

 

 

 

Total adjustments

 

 

 

 

 

18

 

 

 

Less tax effect for above items

 

 

 

 

 

(5

)

 

 

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

 

 

 

 

 

 

 

 

(1) Adjustments reflect amortization of intangible assets from Sequent acquisition

 

 

 

 

 

 

 

       

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.

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 our 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;
• 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, 2023, as filed with the SEC on February 21, 2024, (b) Part II, Item 1A. Risk Factors in subsequent Quarterly Reports on Form 10-Q, and (c) when filed with the SEC, Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2024.

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MEDIA CONTACT: media@williams.com (800) 945-8723

INVESTOR CONTACTS: Danilo Juvane (918) 573-5075

Caroline Sardella (918) 230-9992