Company Reports

Williams owns the valuable Transco pipeline, which connects Texan and Appalachian natural gas to demand along the Gulf Coast, mid-Atlantic, and Northeast. As demand along the vital corridor is set to grow, investment will continue. We expect these investments to be productive and are underpinned by new utility and liquefied natural gas demand for natural gas.

Williams announced and closed the $5.5 billion acquisition of Momentum Midstream, a Haynesville G&P and transmission service provider. The purchase was financed with $2 billion in equity with the remainder in cash.

Williams owns the valuable Transco pipeline, which connects Texan and Appalachian natural gas to demand along the Gulf Coast, Mid-Atlantic, and Northeast. As demand along the vital corridor is set to grow, investment will continue. We expect these investments to be productive and are underpinned by new utility and liquefied natural gas demand for natural gas.

Williams announced a joint venture with Blackstone, packaging its power supply business into a 51/49 entity where Williams will retain control. Blackstone will provide $4.4 billion toward capital investment and $900 million to Williams.

Williams owns the valuable Transco pipeline, which connects Texan and Appalachian natural gas to demand along the Gulf Coast, Mid-Atlantic, and Northeast. As demand along the vital corridor is set to grow, investment will continue. We expect these investments to be productive and are underpinned by new utility and liquefied natural gas demand for natural gas.

News of two new Williams power deals was greeted positively, with shares trading up 2% at the time of writing. The deals boost power spending to 9.6 billion for 2025-28 and maintain the guided 5 times EBITDA build multiple. Leverage targets will be exceeded temporarily as the backlog takes priority.

At its 2026 analyst day, Williams detailed new and expanded power projects, bringing the total number and capital budget to four and $7 billion, respectively. These agreements are the major driver for meeting management's 10% annualized EBITDA growth target through 2030.

Williams owns the valuable Transco pipeline, which connects Texan and Appalachian natural gas to demand along the Gulf Coast, Mid-Atlantic, and Northeast. As demand along the vital corridor is set to grow, investment will continue. We expect these investments to be productive and are underpinned by new utility and liquefied natural gas demand for natural gas.

Concerns about fundamental demand drivers for natural gas, namely liquefied natural gas production, have begun to affect Williams. The market reacted negatively to the company's stake in Woodside's Louisiana LNG facility, with the shares down 8% since the Oct. 22 announcement.

With the Transco pipeline, Williams has substantial room to continue deploying capital. US natural gas demand along the corridor will continue growing, with liquefied natural gas demand creating a greater call on Appalachian gas.

Williams owns the valuable Transco pipeline, which connects Texan and Appalachian natural gas to demand along the Gulf Coast, Mid-Atlantic, and Northeast. As demand along the vital corridor is set to grow, investment will continue. We expect these investments to be productive and are underpinned by new utility and liquefied natural gas demand for natural gas.

Williams has one of the largest and most valuable portfolios of natural gas midstream assets, making it a key beneficiary of growing natural gas demand in the US.

Williams reported $1.8 billion adjusted EBITDA and $0.46 adjusted earnings per share in the second quarter of 2025, both up about 8% from the second quarter of 2024 and on track to meet our full-year earnings outlook.

Williams reported $2.0 billion adjusted EBITDA and $0.60 adjusted earnings per share in the first quarter of 2025, both up slightly from the first quarter of 2024 but on track to meet our full-year 8% growth outlook.

Williams has one of the largest and most valuable portfolios of natural gas midstream assets, making it a key beneficiary of growing natural gas demand in the US.

Williams reported $7.1 billion adjusted EBITDA in 2024, in line with our estimate and management's $7.0 billion-$7.15 billion guidance range. Adjusted earnings per share were $1.92, slightly lower than our estimate.

Chinese artificial intelligence firm DeepSeek's open-source reasoning model has led to questions about how much energy will be required to power future data centers. We still think data center growth will result in more electricity and gas demand, but not as much as market valuations suggested.

Williams is on track to meet our full-year 2024 adjusted EBITDA outlook and the top end of management's $7.0 billion-$7.15 billion guidance range after reporting $1.7 billion of adjusted EBITDA in the third quarter, up from $1.65 billion in the third quarter of 2023.

Williams has one of the largest and most valuable portfolios of natural gas midstream assets, making it a key beneficiary of growing natural gas demand for power generation in particular.

Williams' second-quarter results were solid, and after refreshing our model, we are increasing our fair value estimate to $40 from $38. Our narrow moat rating is unchanged. Overall EBITDA increased 3% year over year to $1.7 billion, mainly helped by the Gulf Coast storage deal, and offset by lower volumes at the Northeast gathering and processing segment because of temporary shut-ins. Williams reaffirmed 2024 EBITDA guidance toward the top end of its range of $6.8 billion-$7.1 billion, compared with our $7.1 billion forecast. 2025 guidance is set by Williams at a midpoint of $7.4 billion compared with our $7.5 billion forecast.