0000107263false00001072632024-11-062024-11-06

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 6, 2024

The Williams Companies, Inc.
(Exact name of registrant as specified in its charter)
Delaware1-417473-0569878
(State or other jurisdiction of
incorporation)		(Commission
File Number)		(IRS Employer
Identification No.)
One Williams Center
Tulsa, Oklahoma
74172-0172
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code: 800-945-5426 (800-WILLIAMS)

NOT APPLICABLE
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $1.00 par valueWMBNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02. Results of Operations and Financial Condition

On November 6, 2024, The Williams Companies, Inc. (the "Company") issued a press release announcing its financial results for the quarter ended September 30, 2024. A copy of the press release and accompanying financial highlights and operating statistics and reconciliation schedules are furnished herewith as Exhibit 99.1 and are incorporated herein in their entirety by reference.

The press release and accompanying financial highlights and operating statistics and reconciliation schedules are being furnished pursuant to Item 2.02, Results of Operations and Financial Condition. The information furnished is not deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, is not subject to the liabilities of that section and is not deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.


Item 9.01. Financial Statements and Exhibits

(a)    None

(b)    None

(c)    None

(d)    Exhibits.
Exhibit No.                                                                       Description                                                                   
99.1
104
Cover Page Interactive Data File. The cover page XBRL tags are embedded within the inline XBRL document (contained in Exhibit 101).

SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
THE WILLIAMS COMPANIES, INC.
(Registrant)
Dated:November 6, 2024By:
/s/ JOHN D. PORTER
John D. Porter
Senior Vice President and Chief Financial Officer (Principal Financial Officer)


Exhibit 99.1

News Release
Williams (NYSE: WMB)
One Williams Center
Tulsa, OK 74172
800-Williams
www.williams.com
  wmb_image1a19a.jpg

DATE: Wednesday, Nov. 6, 2024


MEDIA CONTACT:INVESTOR CONTACTS:
media@williams.com
(800) 945-8723		Danilo Juvane
(918) 573-5075		Caroline Sardella
(918) 230-9992

Williams Delivers Record Third-Quarter Results Driven by Continued Strength of Base Business

TULSA, Okla. – Williams (NYSE: WMB) today announced its unaudited financial results for the three and nine months ended Sept. 30, 2024.

Demonstrated track record of year-over-year financial gains
•GAAP net income of $705 million, or $0.58 per diluted share (EPS) – up 8% vs. 3Q 2023
•Adjusted net income of $528 million, or $0.43 per diluted share (Adj. EPS)
•Record 3Q Adjusted EBITDA of $1.703 billion – up $51 million or 3% vs. 3Q 2023
•Cash flow from operations (CFFO) of $1.243 billion
•Available funds from operations (AFFO) of $1.286 billion – up $56 million or 5% vs. 3Q 2023
•Dividend coverage ratio of 2.22x (AFFO basis)
•Increased midpoint for full-year 2024 guidance by $125 million to $7.075 billion Adjusted EBITDA

Proven project execution continues to deliver long-term, stable growth
•Placed Transco's Regional Energy Access into full service ahead of schedule on Aug. 1
•Placed MountainWest's Uinta Basin expansion in-service
•Placed portion of Transco's Southside Reliability Enhancement in-service
•Placed Anchor in-service and completed construction on Whale in Deepwater Gulf of Mexico
•Began construction on Transco's Commonwealth Energy Connector
•Obtained favorable rulings and began construction on Louisiana Energy Gateway project
•Began construction on two solar projects in the Northeast and signed commercial agreements with Florida utility fully subscribing large-scale Lakeland Solar project

Captured new, high-return growth projects across footprint
•Received FERC certificate for MountainWest Overthrust Westbound expansion
•Filed FERC application for Transco's ~1.6 Bcf/d Southeast Supply Enhancement project
•Executed agreement on Transco's Dalton Lateral Expansion II
•Executed agreements on three new expansions on Northwest Pipeline, totaling ~260 MMcf/d of firm capacity


1



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

“Williams delivered another quarter of impressive financial results, with Adjusted EBITDA hitting a third quarter record of $1.7 billion, up 3 percent over third quarter 2023, driven primarily by our natural gas transmission expansions and Gulf Coast storage acquisition. We've exceeded financial expectations each quarter this year, and our crisp execution along with our core business strength gives us the confidence to raise our 2024 Adjusted EBITDA guidance midpoint by $125 million to $7.075 billion.

“Our teams continue to excel in executing large-scale expansion projects to serve growing natural gas demand for residential, commercial and industrial use. In addition to placing Transco's Regional Energy Access in service ahead of schedule, we also brought online an expansion to MountainWest as well as a portion of Transco's Southside Reliability Enhancement. Construction is underway on the Louisiana Energy Gateway project as well as Transco’s Commonwealth Energy Connector. In the Deepwater Gulf of Mexico, we commissioned our large-scale facilities to receive production from both Chevron's Anchor field in August and Shell's Whale field as they ramp up production in the fourth quarter.

"Not only do we have a clear line of sight to a full roster of projects in execution, but we continue to commercialize vital, high-return projects across our footprint. We executed a precedent agreement on another expansion to the Transco Dalton Lateral driven by load growth from data center demand and industrial re-shoring in the Atlanta area. In the Rockies and Northwest, we entered into new binding agreements for three separate natural gas transmission expansions to serve power and load growth, including a large coal-to-gas power plant conversion. In addition, we filed the FERC application for Transco's Southeast Supply Enhancement project, a 1.6 Bcf/d expansion to meet growing residential, commercial and industrial demand in cities across the Mid-Atlantic and Southeast.

Armstrong added, "All this activity underscores the accelerating demand for natural gas transmission capacity in the United States, particularly in the growing regions where we operate. As the most natural gas-centric energy infrastructure provider with access to the most prolific U.S. basins, Williams is the best positioned to serve steadily increasing domestic needs for clean and affordable energy, while also helping unlock vast U.S. reserves for the global market."
2

Williams Summary Financial Information3QYear to Date
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.2024202320242023
GAAP Measures
Net Income$705 $654 $1,737 $2,127 
Net Income Per Share$0.58 $0.54 $1.42 $1.74 
Cash Flow From Operations$1,243 $1,234 $3,756 $4,125 
Non-GAAP Measures (1)
Adjusted EBITDA$1,703 $1,652 $5,304 $5,058 
Adjusted Net Income$528 $547 $1,768 $1,746 
Adjusted Earnings Per Share$0.43 $0.45 $1.45 $1.43 
Available Funds from Operations$1,286 $1,230 $4,043 $3,890 
Dividend Coverage Ratio2.22 x2.26 x2.33 x2.38 x
Other
Debt-to-Adjusted EBITDA at Quarter End (2)3.75 x3.45 x
Capital Investments (Excluding Acquisitions) (3) (4)$720 $805 $1,946 $2,045 
(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) Third-quarter and year-to-date 2024 capital excludes $151 million for the consolidation of our Discovery JV, which closed in August 2024. Year-to-date 2024 capital also excludes $1.844 billion for the acquisition of the Gulf Coast storage assets, which closed January 2024. Third-quarter and year-to-date 2023 capital excludes ($29) million and $1.024 billion, respectively, for the acquisition of MountainWest Pipeline Holding Company, which closed February 2023.

GAAP Measures
Third-quarter 2024 net income increased by $51 million compared to the prior year reflecting $141 million of higher service revenues driven by acquisitions and expansion projects, partially offset by higher net interest expense from recent debt issuances and retirements, higher operating costs, depreciation and interest expense resulting from recent acquisitions, and lower net realized product sales from upstream operations. Third-quarter 2024 gains 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 $130 million gain on the sale of the Bayou Ethane system in 2023. The tax provision changed unfavorably primarily due to higher pretax income and the absence of a $25 million benefit in 2023 associated with a decrease in our estimated deferred state income tax rate.

Year-to-date 2024 net income decreased by $390 million compared to the prior year reflecting an unfavorable change of $643 million in net unrealized gains/losses on commodity derivatives, higher net interest expense from recent debt issuances and retirements, lower realized hedge gains in the West, and higher operating costs, depreciation and interest expense resulting from recent acquisitions. These unfavorable changes were partially offset by a $441 million increase in service revenues driven by acquisitions and expansion projects, and the net favorable change of $146 million from the previously discussed Aux Sable, Discovery, and Bayou Ethane transactions. The tax provision decreased primarily due to lower pretax income.

Third-quarter 2024 cash flow from operations was generally consistent with the prior year, while year-to-date 2024 decreased compared to the prior year primarily due to unfavorable net changes in both working capital and derivative collateral requirements, partially offset by higher operating results exclusive of non-cash items.


3

Non-GAAP Measures
Third-quarter 2024 Adjusted EBITDA increased by $51 million over the prior year, driven by the previously described favorable net contributions from acquisitions and expansion projects. Year-to-date 2024 Adjusted EBITDA increased by $246 million over the prior year, similarly reflecting favorable net contributions from acquisitions and expansion projects, partially offset by lower realized hedge gains in the West.

Third-quarter 2024 Adjusted Net Income declined by $19 million over the prior year, while year-to-date 2024 Adjusted Net Income increased $22 million over the prior year, both driven by the previously described impacts to net income, adjusted primarily to remove the effects of the 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.

Third-quarter and year-to-date Available Funds From Operations (AFFO) increased by $56 million and $153 million, respectively, compared to the prior year primarily due to higher results from continuing operations exclusive of non-cash items.

Business Segment Results & Form 10-Q
Williams' operations are comprised of the following reportable segments: Transmission & Gulf of Mexico, Northeast G&P, West and Gas & NGL Marketing Services, as well as Other. For more information, see the company's third-quarter 2024 Form 10-Q.
Third QuarterYear to Date
Amounts in millionsModified EBITDAAdjusted EBITDAModified EBITDAAdjusted EBITDA
3Q 20243Q 2023Change3Q 20243Q 2023Change20242023Change20242023Change
Transmission & Gulf of Mexico$811 $881 ($70)$830 $754 $76 $2,448 $2,327 $121 $2,481 $2,230 $251 
Northeast G&P476 454 22 484 485 (1)1,461 1,439 22 1,467 1,470 (3)
West323 315 8 330 315 15 968 931 37 977 913 64 
Gas & NGL Marketing Services11 43 (32)4 16 (12)(14)678 (692)179 231 (52)
Other58 81 (23)55 82 (27)181 196 (15)200 214 (14)
Total$1,679 $1,774 ($95)$1,703 $1,652 $51 $5,044 $5,571 ($527)$5,304 $5,058 $246 
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 of Mexico
Third-quarter 2024 Modified EBITDA declined compared to the prior year driven by the absence of the previously mentioned gain on the sale of the Bayou Ethane system, as well as hurricane impacts, partially offset by favorable net contributions from the Gulf Coast Storage acquisition and the Regional Energy Access expansion project. Year-to-date 2024 Modified EBITDA improved as the favorable net contributions from acquisitions, including MountainWest, and transmission expansions, along with lower one-time acquisition and transition costs, more than offset the absence of the Bayou Ethane gain and the absence of earnings from the Bayou Ethane system. Third-quarter and year-to-date Adjusted EBITDA, which excludes the Bayou Ethane gain and acquisition and transition costs, improved compared to the prior year.

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




4

West
Third-quarter 2024 Modified and Adjusted EBITDA increased compared to the prior year benefiting from the DJ Basin Acquisitions, partially offset by lower gathering volumes and lower realized gains on natural gas hedges. Both metrics also improved for the year-to-date period reflecting similar drivers, as well as improved commodity margins reflecting favorable changes in shrink prices related to the absence of a short-term gas price spike at Opal in 2023. The year-to-date 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
Third-quarter 2024 Modified EBITDA decreased from the prior year reflecting lower NGL marketing margins and a $14 million net unfavorable change in unrealized gains/losses on commodity derivatives, which is excluded from Adjusted EBITDA. Year-to-date 2024 Modified EBITDA also decreased from the prior year reflecting a decline in both gas marketing margins and NGL marketing margins, as well as a $642 million net unfavorable change in unrealized gains/losses on commodity derivatives, which is excluded from Adjusted EBITDA.

Other
Third-quarter and year-to-date 2024 Modified and Adjusted EBITDA decreased compared to the prior year driven by lower net realized product sales from upstream operations.

2024 Financial Guidance
The company now expects 2024 Adjusted EBITDA between $7 billion and $7.150 billion, which is an increase to the midpoint of guidance by $125 million. In addition, the company continues to expect 2024 growth capex between $1.45 billion and $1.75 billion and maintenance capex between $1.1 billion and $1.3 billion, which includes capital of $350 million for emissions reduction and modernization initiatives. For 2025, the company continues to expect Adjusted EBITDA between $7.2 billion and $7.6 billion with growth capex between $1.65 billion and $1.95 billion and maintenance capex between $750 million and $850 million, which includes capital of $100 million for emissions reduction and modernization initiatives. Williams anticipates a leverage ratio midpoint for 2024 of 3.80x and an increase in the dividend by 6.1% on an annualized basis to $1.90 in 2024 from $1.79 in 2023.

Williams' Third-Quarter 2024 Materials to be Posted Shortly; Q&A Webcast Scheduled for Tomorrow
Williams' third-quarter 2024 earnings presentation will be posted at www.williams.com. The company's third-quarter 2024 earnings conference call and webcast with analysts and investors is scheduled for Thursday, Nov. 7, 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/BIf053fa45b660426a89b026a932aec0ae.

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.
5

The Williams Companies, Inc.
Consolidated Statement of Income
(Unaudited)
Three Months Ended  
September 30,		Nine Months Ended  
September 30,
2024202320242023
(Millions, except per-share amounts)
Revenues:
Service revenues$1,911 $1,770 $5,653 $5,212 
Service revenues – commodity consideration34 45 82 108 
Product sales703 720 2,158 2,158 
Net gain (loss) from commodity derivatives5 24 (133)645 
  Total revenues2,653 2,559 7,760 8,123 
Costs and expenses:
Product costs517 484 1,467 1,458 
Net processing commodity expenses7 31 29 129 
Operating and maintenance expenses580 522 1,613 1,466 
Depreciation and amortization expenses566 521 1,654 1,542 
Selling, general, and administrative expenses170 146 520 483 
Gain on sale of business— (130)— (130)
Other (income) expense – net(25)(9)(69)(49)
  Total costs and expenses1,815 1,565 5,214 4,899 
Operating income (loss)838 994 2,546 3,224 
Equity earnings (losses)147 127 431 434 
Other investing income (loss) – net290 24 332 45 
Interest expense(338)(314)(1,026)(914)
Other income (expense) – net31 30 95 69 
Income (loss) before income taxes968 861 2,378 2,858 
  Less: Provision (benefit) for income taxes227 176 549 635 
Income (loss) from continuing operations741 685 1,829 2,223 
Income (loss) from discontinued operations— (1)— (88)
Net income (loss)741 684 1,829 2,135 
  Less: Net income (loss) attributable to noncontrolling interests35 30 90 94 
Net income (loss) attributable to The Williams Companies, Inc.706 654 1,739 2,041 
  Less: Preferred stock dividends1 1 2 2 
Net income (loss) available to common stockholders$705 $653 $1,737 $2,039 
Amounts attributable to The Williams Companies, Inc. available to common stockholders:
Income (loss) from continuing operations$705 $654 $1,737 $2,127 
Income (loss) from discontinued operations— (1)— (88)
  Net income (loss) available to common stockholders$705 $653 $1,737 $2,039 
Basic earnings (loss) per common share:
  Income (loss) from continuing operations$.58 $.54 $1.43 $1.74 
  Income (loss) from discontinued operations— — — (.07)
     Net income (loss) available to common stockholders$.58 $.54 $1.43 $1.67 
     Weighted-average shares (thousands)1,219,537 1,216,951 1,219,021 1,218,021 
Diluted earnings (loss) per common share:
  Income (loss) from continuing operations$.58 $.54 $1.42 $1.74 
  Income (loss) from discontinued operations— — — (.07)
     Net income (loss) available to common stockholders$.58 $.54 $1.42 $1.67 
     Weighted-average shares (thousands)1,222,869 1,220,073 1,222,444 1,222,650 



6

The Williams Companies, Inc.
Consolidated Balance Sheet
(Unaudited)
September 30,December 31,
20242023
(Millions, except per-share amounts)
ASSETS
Current assets:
Cash and cash equivalents$762 $2,150 
Trade accounts and other receivables (net of allowance of ($4) at September 30, 2024 and($3) at December 31, 2023)
1,310 1,655 
Inventories275 274 
Derivative assets143 239 
Other current assets and deferred charges208 195 
Total current assets2,698 4,513 
Investments4,201 4,637 
Property, plant, and equipment
56,479 51,842 
Accumulated depreciation and amortization(18,505)(17,531)
Property, plant, and equipment – net37,974 34,311 
Intangible assets – net of accumulated amortization7,305 7,593 
Regulatory assets, deferred charges, and other1,659 1,573 
Total assets$53,837 $52,627 
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable$1,137 $1,379 
Derivative liabilities95 105 
Accrued and other current liabilities1,203 1,284 
Commercial paper— 725 
Long-term debt due within one year2,284 2,337 
Total current liabilities4,719 5,830 
Long-term debt24,825 23,376 
Deferred income tax liabilities4,312 3,846 
Regulatory liabilities, deferred income, and other5,116 4,684 
Contingent liabilities and commitments
Equity:
Stockholders’ equity:
Preferred stock ($1 par value; 30 million shares authorized at September 30, 2024 and December 31, 2023; 35 thousand shares issued at September 30, 2024 and December 31, 2023)
35 35 
Common stock ($1 par value; 1,470 million shares authorized at September 30, 2024 and December 31, 2023; 1,258 million shares issued at September 30, 2024 and 1,256 million shares issued at December 31, 2023)
1,258 1,256 
Capital in excess of par value24,611 24,578 
Retained deficit(12,296)(12,287)
Accumulated other comprehensive income (loss)— — 
Treasury stock, at cost (39 million shares at September 30, 2024 and December 31, 2023 of common stock)
(1,180)(1,180)
Total stockholders’ equity12,428 12,402 
Noncontrolling interests in consolidated subsidiaries2,437 2,489 
Total equity14,865 14,891 
Total liabilities and equity$53,837 $52,627 
7

The Williams Companies, Inc.
Consolidated Statement of Cash Flows
(Unaudited)
Nine Months Ended  
September 30,
20242023
(Millions)
OPERATING ACTIVITIES:
Net income (loss)$1,829 $2,135 
Adjustments to reconcile to net cash provided (used) by operating activities:
Depreciation and amortization1,654 1,542 
Provision (benefit) for deferred income taxes467 586 
Equity (earnings) losses(431)(434)
Distributions from equity-method investees580 607 
Net unrealized (gain) loss from commodity derivative instruments210 (433)
Gain on sale of business— (130)
Gain on disposition of equity-method investments(149)— 
Gain on consolidation of equity-method investments(127)— 
Inventory write-downs8 28 
Amortization of stock-based awards69 59 
Cash provided (used) by changes in current assets and liabilities:
Accounts receivable367 1,295 
Inventories(6)29 
Other current assets and deferred charges(16)(5)
Accounts payable(317)(1,072)
Accrued and other current liabilities(108)(114)
Changes in current and noncurrent commodity derivative assets and liabilities(74)172 
Other, including changes in noncurrent assets and liabilities(200)(140)
Net cash provided (used) by operating activities3,756 4,125 
FINANCING ACTIVITIES:
Proceeds from (payments of) commercial paper – net(723)(352)
Proceeds from long-term debt3,594 2,754 
Payments of long-term debt(2,286)(21)
Payments for debt issuance costs(31)(21)
Proceeds from issuance of common stock8 8 
Purchases of treasury stock— (130)
Common dividends paid(1,737)(1,635)
Dividends and distributions paid to noncontrolling interests(178)(174)
Contributions from noncontrolling interests36 18 
Other – net(34)(19)
Net cash provided (used) by financing activities(1,351)428 
INVESTING ACTIVITIES:
Property, plant, and equipment:
Capital expenditures (1)(1,805)(1,845)
Dispositions - net(73)(33)
Proceeds from sale of business— 348 
Purchases of businesses, net of cash acquired(1,995)(1,024)
Proceeds from dispositions of equity-method investments161 — 
Purchases of and contributions to equity-method investments(101)(80)
Other – net20 3 
Net cash provided (used) by investing activities(3,793)(2,631)
Increase (decrease) in cash and cash equivalents(1,388)1,922 
Cash and cash equivalents at beginning of year2,150 152 
Cash and cash equivalents at end of period$762 $2,074 
_________
(1)  Increases to property, plant, and equipment$(1,840)$(1,960)
Changes in related accounts payable and accrued liabilities35 115 
Capital expenditures$(1,805)$(1,845)
8

Transmission & Gulf of Mexico
(UNAUDITED)
20232024
(Dollars in millions)1st Qtr2nd Qtr3rd Qtr4th QtrYear1st Qtr2nd Qtr3rd Qtr Year-to-date
Regulated interstate natural gas transportation, storage, and other revenues (1)
$774 $786 $794 $822 $3,176 $836 $805 $833 $2,474 
Gathering, processing, storage and transportation revenues (1)
100 104 114 100 418 137 147 167 451 
Other fee revenues6 8 5 4 23 12 9 7 28 
Commodity margins10 8 7 8 33 9 5 11 25 
Operating and administrative costs (1)
(254)(254)(257)(270)(1,035)(254)(261)(294)(809)
Other segment income (expenses) - net (1)
26 31 36 26 119 43 54 46 143 
Gain on sale of business— — 130 (1)129 — — — — 
Proportional Modified EBITDA of equity-method investments
53 48 52 52 205 46 49 41 136 
Modified EBITDA715 731 881 741 3,068 829 808 811 2,448 
Adjustments13 17 (127)11 (86)10 4 19 33 
Adjusted EBITDA$728 $748 $754 $752 $2,982 $839 $812 $830 $2,481 
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 13.9 
Avg. daily firm reserved capacity (MMdth) 19.5 19.4 19.4 19.3 19.4 20.3 19.7 20.1 20.0 
Northwest Pipeline LLC
Avg. daily transportation volumes (MMdth)3.1 2.3 2.3 2.8 2.6 3.1 2.2 2.1 2.5 
Avg. daily firm reserved capacity (MMdth) 3.8 3.8 3.8 3.8 3.8 3.8 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 3.7 
Avg. daily firm reserved capacity (MMdth)7.8 7.5 7.5 7.9 7.7 8.4 8.0 8.1 8.1 
Gulfstream - Non-consolidated
Avg. daily transportation volumes (MMdth)1.0 1.2 1.4 1.1 1.2 1.0 1.2 1.4 1.2 
Avg. daily firm reserved capacity (MMdth) 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 
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 
Plant inlet natural gas volumes (Bcf/d) 0.43 0.40 0.46 0.46 0.44 0.45 0.27 0.73 0.69 
NGL production (Mbbls/d)28 24 28 26 27 28 17 49 45 
NGL equity sales (Mbbls/d)7 5 6 5 6 5 3 9 9 
Crude oil transportation volumes (Mbbls/d)119 111 134 130 123 118 114 109 113 
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 the Discovery assets for the 3rd Qtr 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.
9

Northeast G&P
(UNAUDITED)
20232024
(Dollars in millions)1st Qtr2nd Qtr3rd Qtr4th Qtr Year1st Qtr2nd Qtr3rd Qtr Year-to-date
Gathering, processing, transportation, and fractionation revenues (1)
$391 $431 $417 $411 $1,650 $411 $398 $407 $1,216 
Other fee revenues32 27 27 28 114 34 35 33 102 
Commodity margins5 (1)7 1 12 11 — 8 19 
Operating and administrative costs (1)
(101)(101)(115)(107)(424)(108)(108)(120)(336)
Other segment income (expenses) - net— — (1)(9)(10)(1)3 (1)1 
Proportional Modified EBITDA of equity-method investments143 159 119 153 574 157 153 149 459 
Modified EBITDA470 515 454 477 1,916 504 481 476 1,461 
Adjustments— — 31 8 39 — (2)8 6 
Adjusted EBITDA$470 $515 $485 $485 $1,955 $504 $479 $484 $1,467 
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 
Plant inlet natural gas volumes (Bcf/d)1.92 1.79 1.93 1.93 1.89 1.76 1.77 1.99 1.84 
NGL production (Mbbls/d)144 135 144 133 139 133 136 140 137 
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 6.54 
Plant inlet natural gas volumes (Bcf/d)0.77 0.93 0.99 1.01 0.93 0.98 0.94 0.98 0.97 
NGL production (Mbbls/d)54 64 71 69 65 72 70 72 71 
NGL equity sales (Mbbls/d)4 5 4 4 4 3 6 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.

10

West
(UNAUDITED)
20232024
(Dollars in millions)1st Qtr2nd Qtr3rd Qtr4th QtrYear 1st Qtr2nd Qtr3rd Qtr Year-to-date
Net gathering, processing, transportation, storage, and fractionation revenues (1)
$382 $373 $371 $397 $1,523 $421 $397 $409 $1,227 
Other fee revenues5 7 4 8 24 8 5 4 17 
Commodity margins(24)18 21 19 34 12 30 27 69 
Operating and administrative costs (1)
(115)(122)(122)(144)(503)(139)(148)(157)(444)
Other segment income (expenses) - net23 (7)(4)(14)(2)— (2)5 3 
Proportional Modified EBITDA of equity-method investments
33 43 45 41 162 25 36 35 96 
Modified EBITDA304 312 315 307 1,238 327 318 323 968 
Adjustments(18)— — 16 (2)1 1 7 9 
Adjusted EBITDA$286 $312 $315 $323 $1,236 $328 $319 $330 $977 
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 
Plant inlet natural gas volumes (Bcf/d)0.92 1.06 1.12 1.63 1.54 1.52 1.48 1.57 1.52 
NGL production (Mbbls/d)25 40 61 99 91 87 91 91 89 
NGL equity sales (Mbbls/d)6 16 22 14 14 6 8 6 7 
Non-consolidated
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) (4)
161 217 244 250 218 220 292 304 272 
(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 Overland Pass Pipeline Company (an operated equity-method investment), RMM (during the first three quarters of 2023), as well as volumes for our consolidated Bluestem pipeline.
11

Gas & NGL Marketing Services
(UNAUDITED)
20232024
(Dollars in millions)1st Qtr2nd Qtr3rd Qtr4th QtrYear 1st Qtr2nd Qtr3rd Qtr Year-to-date
Commodity margins$265 $(2)$38 $88 $389 $236 $3 $23 $262 
Other fee revenues1 — — — 1 — — — — 
Net unrealized gain (loss) from derivative instruments333 94 24 208 659 (95)(106)10 (191)
Operating and administrative costs(32)(24)(19)(24)(99)(40)(23)(22)(85)
Modified EBITDA567 68 43 272 950 101 (126)11 (14)
Adjustments(336)(84)(27)(203)(650)88 112 (7)193 
Adjusted EBITDA$231 $(16)$16 $69 $300 $189 $(14)$4 $179 
Statistics
Product Sales Volumes
Natural Gas (Bcf/d)7.24 6.56 7.31 7.11 7.05 7.53 6.98 7.14 7.22 
NGLs (Mbbls/d)234 239 245 173 223 170 162 182 171 
12

Other
(UNAUDITED)
20232024
(Dollars in millions)1st Qtr2nd Qtr3rd Qtr4th Qtr Year1st Qtr2nd Qtr3rd Qtr Year-to-date
Service revenues$3 $5 $4 $4 $16 $4 $4 $4 $12 
Net realized product sales120 97 127 145 489 113 109 96 318 
Net unrealized gain (loss) from derivative instruments(6)(11)(1)19 1 3 (25)3 (19)
Operating and administrative costs(48)(54)(58)(65)(225)(51)(50)(51)(152)
Other segment income (expenses) - net5 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 EBITDA74 41 81 645 841 76 47 58 181 
Adjustments6 11 1 (553)(535)(2)24 (3)19 
Adjusted EBITDA$80 $52 $82 $92 $306 $74 $71 $55 $200 
Statistics
Net Product Sales Volumes
Natural Gas (Bcf/d)0.26 0.29 0.31 0.30 0.29 0.28 0.24 0.29 0.27 
NGLs (Mbbls/d)3 6 9 10 7 8 8 9 8 
Crude Oil (Mbbls/d)1 3 5 7 4 5 5 4 5 
13

Capital Expenditures and Investments
(UNAUDITED)
20232024
(Dollars in millions)1st Qtr2nd Qtr3rd Qtr4th QtrYear1st Qtr2nd Qtr3rd Qtr Year-to-date
Capital expenditures:
Transmission & Gulf of Mexico$205 $263 $382 $404 $1,254 $310 $397 $459 $1,166 
Northeast G&P99 74 115 71 359 71 46 54 171 
West169 197 141 121 628 120 90 98 308 
Other72 76 52 75 275 43 46 71 160 
Total (1)
$545 $610 $690 $671 $2,516 $544 $579 $682 $1,805 
Purchases of and contributions to equity-method investments:
Transmission & Gulf of Mexico$8 $18 $6 $9 $41 $27 $10 $— $37 
Northeast G&P31 12 4 52 99 25 19 19 63 
West— — 1 — 1 — 1 — 1 
Other— — — — — — — — — 
Total$39 $30 $11 $61 $141 $52 $30 $19 $101 
Summary:
Transmission & Gulf of Mexico$213 $281 $388 $413 $1,295 $337 $407 $459 $1,203 
Northeast G&P130 86 119 123 458 96 65 73 234 
West169 197 142 121 629 120 91 98 309 
Other72 76 52 75 275 43 46 71 160 
Total$584 $640 $701 $732 $2,657 $596 $609 $701 $1,906 
Capital investments:
Increases to property, plant, and equipment$484 $684 $792 $604 $2,564 $509 $632 $699 $1,840 
Purchases of businesses, net of cash acquired1,056 (3)(29)544 1,568 1,851 (7)151 1,995 
Purchases of and contributions to equity-method investments39 30 11 61 141 52 30 19 101 
Purchases of other long-term investments2 1 2 1 6 2 1 2 5 
Total$1,581 $712 $776 $1,210 $4,279 $2,414 $656 $871 $3,941 
(1) Increases to property, plant, and equipment
$484 $684 $792 $604 $2,564 $509 $632 $699 $1,840 
Changes in related accounts payable and accrued liabilities61 (74)(102)67 (48)35 (53)(17)(35)
Capital expenditures$545 $610 $690 $671 $2,516 $544 $579 $682 $1,805 
Contributions from noncontrolling interests$3 $15 $— $— $18 $26 $10 $— $36 
Contributions in aid of construction$11 $7 $2 $8 $28 $10 $13 $— $23 
Proceeds from sale of business$— $— $348 $(2)$346 $— $— $— $— 
Proceeds from dispositions of equity-method investments$— $— $— $— $— $— $— $161 $161 
14

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.
15

Reconciliation of Income (Loss) from Continuing Operations Attributable to The Williams Companies, Inc. to Non-GAAP Adjusted Income
(UNAUDITED)
20232024
(Dollars in millions, except per-share amounts)1st Qtr2nd Qtr3rd Qtr4th QtrYear1st Qtr2nd Qtr3rd Qtr Year-to-date
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 $1,737 
Income (loss) from continuing operations - diluted earnings (loss) per common share (1)
$.76 $.45 $.54 $.94 $2.68 $.52 $.33 $.58 $1.42 
Adjustments:
Transmission & Gulf of Mexico
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 
Gain on sale of business— — (130)1 (129)— — — — 
Impact of change in payroll policy*— — — — — — — 16 16 
Total Transmission & Gulf of Mexico adjustments13 17 (127)11 (86)10 4 19 33 
Northeast G&P
Accrual for loss contingency*— — — 10 10 — (3)— (3)
Our share of operator transition costs at Blue Racer Midstream*— — — — — — 1 1 2 
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 6 
West
Cureton acquisition and transition-related costs*— — — 6 6 1 1 — 2 
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 9 
Gas & NGL Marketing Services
Impact of volatility on NGL linefill transactions*
(3)10 (3)5 9 (6)5 2 1 
Net unrealized (gain) loss from derivative instruments
(333)(94)(24)(208)(659)94 107 (10)191 
Impact of change in payroll policy*— — — — — — — 1 1 
Total Gas & NGL Marketing Services adjustments(336)(84)(27)(203)(650)88 112 (7)193 
Other
Net unrealized (gain) loss from derivative instruments
6 11 1 (19)(1)(2)24 (3)19 
Net gain from Energy Transfer litigation judgment— — — (534)(534)— — — — 
Total Other adjustments6 11 1 (553)(535)(2)24 (3)19 
Adjustments included in Modified EBITDA(335)(56)(122)(721)(1,234)97 139 24 260 
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)
Imputed interest expense on deferred consideration obligations*— — — — — 12 12 11 35 
Amortization of intangible assets from Sequent acquisition15 14 15 15 59 7 7 8 22 
15 14 15 (15)29 19 19 (257)(219)
Total adjustments(320)(42)(107)(736)(1,205)116 158 (233)41 
Less tax effect for above items78 10 25 178 291 (28)(38)56 (10)
Adjustments for tax-related items (2)
— — (25)— (25)— — — — 
Adjusted income from continuing operations available to common stockholders$684 $515 $547 $588 $2,334 $719 $521 $528 $1,768 
Adjusted income from continuing operations - diluted earnings per common share (1)
$.56 $.42 $.45 $.48 $1.91 $.59 $.43 $.43 $1.45 
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 1,222,444 
(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 includes 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).
16

Reconciliation of "Net Income (Loss)" to “Modified EBITDA” and Non-GAAP “Adjusted EBITDA”
(UNAUDITED)
20232024
(Dollars in millions)1st Qtr2nd Qtr3rd Qtr4th QtrYear1st Qtr2nd Qtr3rd Qtr Year-to-date
Net income (loss)$957 $494 $684 $1,168 $3,303 $662 $426 $741 $1,829 
Provision (benefit) for income taxes284 175 176 370 1,005 193 129 227 549 
Interest expense294 306 314 322 1,236 349 339 338 1,026 
Equity (earnings) losses(147)(160)(127)(155)(589)(137)(147)(147)(431)
Other investing (income) loss - net(8)(13)(24)(63)(108)(24)(18)(290)(332)
Proportional Modified EBITDA of equity-method investments
229 249 215 246 939 228 238 227 693 
Depreciation and amortization expenses
506 515 521 529 2,071 548 540 566 1,654 
Accretion expense associated with asset retirement obligations for nonregulated operations
15 14 14 16 59 18 21 17 56 
(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 $5,044 
Transmission & Gulf of Mexico$715 $731 $881 $741 $3,068 $829 $808 $811 $2,448 
Northeast G&P470 515 454 477 1,916 504 481 476 1,461 
West304 312 315 307 1,238 327 318 323 968 
Gas & NGL Marketing Services567 68 43 272 950 101 (126)11 (14)
Other74 41 81 645 841 76 47 58 181 
Total Modified EBITDA$2,130 $1,667 $1,774 $2,442 $8,013 $1,837 $1,528 $1,679 $5,044 
Adjustments (1):
Transmission & Gulf of Mexico$13 $17 $(127)$11 $(86)$10 $4 $19 $33 
Northeast G&P— — 31 8 39 — (2)8 6 
West(18)— — 16 (2)1 1 7 9 
Gas & NGL Marketing Services(336)(84)(27)(203)(650)88 112 (7)193 
Other6 11 1 (553)(535)(2)24 (3)19 
Total Adjustments$(335)$(56)$(122)$(721)$(1,234)$97 $139 $24 $260 
Adjusted EBITDA:
Transmission & Gulf of Mexico$728 $748 $754 $752 $2,982 $839 $812 $830 $2,481 
Northeast G&P470 515 485 485 1,955 504 479 484 1,467 
West286 312 315 323 1,236 328 319 330 977 
Gas & NGL Marketing Services231 (16)16 69 300 189 (14)4 179 
Other80 52 82 92 306 74 71 55 200 
Total Adjusted EBITDA$1,795 $1,611 $1,652 $1,721 $6,779 $1,934 $1,667 $1,703 $5,304 
(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.

17

Reconciliation of Cash Flow from Operating Activities to Non-GAAP Available Funds from Operations (AFFO)
(UNAUDITED)
20232024
(Dollars in millions, except coverage ratios)1st Qtr2nd Qtr3rd Qtr4th QtrYear1st Qtr2nd Qtr3rd Qtr Year-to-date
Net cash provided (used) by operating activities$1,514 $1,377 $1,234 $1,813 $5,938 $1,234 $1,279 $1,243 $3,756 
Exclude: Cash (provided) used by changes in:
Accounts receivable(1,269)(154)128 206 (1,089)(314)44 (97)(367)
Inventories, including write-downs(45)(19)7 14 (43)(38)35 1 (2)
Other current assets and deferred charges4 (28)29 (65)(60)(9)(3)28 16 
Accounts payable1,017 203 (148)(63)1,009 309 (90)98 317 
Accrued and other current liabilities318 (246)42 (95)19 218 (142)32 108 
Changes in current and noncurrent commodity derivative assets and liabilities(82)(37)(53)(28)(200)68 73 (67)74 
Other, including changes in noncurrent assets and liabilities40 47 53 106 246 61 90 49 200 
Preferred dividends paid(1)— (1)(1)(3)(1)— (1)(2)
Dividends and distributions paid to noncontrolling interests(54)(58)(62)(39)(213)(64)(66)(48)(178)
Contributions from noncontrolling interests3 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 *— — — — — 17 20 48 85 
Available funds from operations$1,445 $1,215 $1,230 $1,323 $5,213 $1,507 $1,250 $1,286 $4,043 
Common dividends paid$546 $545 $544 $544 $2,179 $579 $579 $579 $1,737 
Coverage ratio:
Available funds from operations divided by Common dividends paid2.65 2.23 2.26 2.43 2.39 2.60 2.16 2.22 2.33 
* See detail on Reconciliation of Income (Loss) from Continuing Operations Attributable to The Williams Companies, Inc. to Non-GAAP Adjusted Income.
18

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)
2024 Guidance2025 Guidance
(Dollars in millions, except per-share amounts and coverage ratio)LowMid HighLowMidHigh
Net income (loss) from continuing operations$2,330 $2,390 $2,450 $2,373 $2,523 $2,673 
Provision (benefit) for income taxes720735 750735785 835
Interest expense1,365 1,390 
Equity (earnings) losses(555)(610)
Proportional Modified EBITDA of equity-method investments
905 990 
Depreciation and amortization expenses and accretion for asset retirement obligations associated with nonregulated operations
2,300 2,325 
Other(326)(8)
Modified EBITDA$6,739 $6,814 $6,889 $7,195 $7,395 $7,595 
EBITDA Adjustments261 5 
Adjusted EBITDA$7,000 $7,075 $7,150 $7,200 $7,400 $7,600 
Net income (loss) from continuing operations$2,330 $2,390 $2,450 $2,373 $2,523 $2,673 
Less: Net income (loss) attributable to noncontrolling interests and preferred dividends131 115 
Net income (loss) from continuing operations attributable to The Williams Companies, Inc. available to common stockholders$2,199 $2,259 $2,319 $2,258 $2,408 $2,558 
Adjustments:
Adjustments included in Modified EBITDA (1)
261 5 
Adjustments below Modified EBITDA (2)
(206)18 
Allocation of adjustments to noncontrolling interests— — 
Total adjustments55 23 
Less tax effect for above items (14)(6)
Adjusted income from continuing operations available to common stockholders$2,240 $2,300 $2,360 $2,275 $2,425 $2,575 
Adjusted income from continuing operations - diluted earnings per common share$1.83 $1.88 $1.93 $1.85 $1.97 $2.10 
Weighted-average shares - diluted (millions)1,224 1,228 
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)$5,350 $5,425 $5,500 $5,295 $5,445 $5,595 
Preferred dividends paid(3)(3)
Dividends and distributions paid to noncontrolling interests(230)(235)
Contributions from noncontrolling interests36 18 
Additional adjustments (3)
92 — 
Available funds from operations (AFFO)$5,245 $5,320 $5,395 $5,075 $5,225 $5,375 
AFFO per common share$4.29 $4.35 $4.41 $4.13 $4.25 $4.38 
Common dividends paid$2,320 5%-7% Dividend growth
Coverage Ratio (AFFO/Common dividends paid)2.26x2.29x2.33x~2.12x
(1) 2024 primarily includes September year-to-date adjustments of $260 million as shown in the "Reconciliation of Income (Loss) from Continuing Operations Attributable to The Williams Companies, Inc. to Non-GAAP Adjusted Income"
(2) 2024 primarily includes September year-to-date adjustments of ($219) million including the Gain on remeasurement of Discovery investment and Gain on sale of Aux Sable investment
(3) 2024 primarily includes September year-to-date adjustments of $85 million as shown in the "Reconciliation of Cash Flow from Operating Activities to Non-GAAP Available Funds from Operations (AFFO)"

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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 our business and operations;

•Expected in-service dates for capital projects;

•Financial condition and liquidity;

•Business strategy;

•Cash flow from operations or results of operations;

•Seasonality of certain business components;

•Natural gas, natural gas liquids, and crude oil prices, supply, and demand;

•Demand for our 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:
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•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;

•Our exposure to the credit risk of our 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;

•Whether we are able 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;

•Whether we will be able to effectively execute our financing plan;

•Increasing scrutiny and changing expectations from stakeholders with respect to our 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;

•Our 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, and general economic conditions (including future disruptions and volatility in the global credit markets and the impact of these events on customers and suppliers);

•Risks related to financing, including restrictions stemming from debt agreements, future changes in credit ratings as determined by nationally recognized credit rating agencies, and the availability and cost of capital;
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•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, including between Israel and Hamas and conflicts involving Iran and its proxy forces;

•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 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, and as may be supplemented by disclosures in Part II, Item 1A. Risk Factors in subsequent Quarterly Reports on Form 10-Q.


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v3.24.3
Document and Entity Information
Nov. 06, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Nov. 06, 2024
Entity Registrant Name Williams Companies, Inc.
Entity Incorporation, State or Country Code DE
Entity File Number 1-4174
Entity Tax Identification Number 73-0569878
Entity Address, Address Line One One Williams Center
Entity Address, City or Town Tulsa
Entity Address, State or Province OK
Entity Address, Postal Zip Code 74172-0172
City Area Code 800
Local Phone Number 945-5426
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, $1.00 par value
Trading Symbol WMB
Security Exchange Name NYSE
Entity Emerging Growth Company false
Entity Central Index Key 0000107263
Amendment Flag false
Williams Companies (NYSE:WMB)
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