Core Insights - The Williams Companies held an Analyst Day event to discuss their earnings and strategic direction [1] - The presentation included insights from key executives, highlighting the company's history and evolution in natural gas strategy [1] Company Overview - Chad Zamarin, President and CEO, provided a brief history of Williams and the development of their natural gas strategy [1] - Rob Wingo, leading corporate strategy, emphasized the core pillars that contribute to the success and repeatability of the strategy [1] - Larry Larsen, Chief Operating Officer, discussed the company's best-in-class operations and project execution [1] - John Porter, Chief Financial Officer, presented the financial results and future guidance expectations [1]

Core Insights - The Williams Companies, Inc. (WMB) reported fourth-quarter 2025 adjusted earnings per share of 55 cents, missing the Zacks Consensus Estimate of 58 cents due to a 10.3% year-over-year increase in costs and weak performance in several segments [1][2][11] - Revenues for the quarter reached $3.2 billion, exceeding the Zacks Consensus Estimate by $57 million and increasing from $2.7 billion in the same quarter last year, driven by higher service revenues and stronger product sales [3][11] - Adjusted EBITDA for the quarter was $2 billion, reflecting a 14.5% year-over-year increase, with cash flow from operations rising 29.4% to $1.6 billion [4][11] Segment Analysis - **Transmission, Power & Gulf**: Adjusted EBITDA was $998 million, up 20.8% year-over-year, driven by stronger net rates and expansion projects, but slightly missed the consensus estimate of $1 billion [5] - **Northeast G&P**: This segment reported adjusted EBITDA of $508 million, a 1.8% increase from the previous year, but fell short of the consensus estimate of $514 million [6] - **West**: Adjusted EBITDA totaled $388 million, up 12.5% year-over-year, supported by new projects and higher throughput, but slightly decreased from the consensus estimate of $389 million [7] - **Gas & NGL Marketing Services**: Adjusted EBITDA was $42 million, up from $36 million year-over-year, exceeding the consensus estimate of $32.87 million [8] - **Other**: This segment posted adjusted EBITDA of $97 million, a 38.6% increase from $70 million in the prior year, slightly above the consensus estimate of $96 million [9] Financial Overview - Total costs and expenses for the quarter were $2 billion, a 10.3% increase from the previous year [10] - Capital expenditures amounted to $1 billion, with cash and cash equivalents at $63 million and long-term debt of $27.3 billion, resulting in a debt-to-capitalization ratio of 68.1% [10] - The company announced a 5% increase in its annual dividend to $2.10 per share for 2026, reflecting confidence in cash flow [12] 2026 Guidance - WMB expects adjusted EBITDA for 2026 to be between $8.05 billion and $8.35 billion, with growth capital spending projected at $6.1-$6.7 billion and maintenance capital expenditures of $850-$950 million [12] - The company anticipates net production of 180-220 million British thermal units per day of natural gas, 7-9 million barrels per day of oil, and 11-13 million barrels per day of natural gas liquids for 2026 [13] - Adjusted earnings per share for 2026 are projected to be between $2.20 and $2.38, with available funds from operations expected to be $6.085-$6.315 billion [13]

Core Viewpoint - Williams Companies, Inc. (NYSE:WMB) is experiencing mixed financial performance, with a recent earnings miss but positive revenue growth, leading to a new price target set by Jefferies at $78, indicating optimism for future performance [1][5]. Financial Performance - WMB reported quarterly earnings of $0.55 per share, which was below the Zacks Consensus Estimate of $0.58, resulting in an earnings surprise of -4.99% [2][5]. - The company showed year-over-year growth in earnings, with $0.55 per share compared to $0.47 per share in the same quarter last year [2]. - Revenues for the quarter ending December 2025 were $3.2 billion, exceeding the Zacks Consensus Estimate by 1.80%, and representing an increase from $2.74 billion in the previous year [3][5]. Stock Performance - The current stock price of WMB is $68.84, reflecting a 1.46% increase or $0.99, with a trading range today between a low of $68.44 and a high of $71.57, the latter being the highest price over the past year [4]. - The lowest price for WMB in the past year was $51.58, and the company has a market capitalization of approximately $84.07 billion, with a trading volume of 15.58 million shares [4].

分组1 - The Williams Companies reported quarterly earnings of $0.55 per share, missing the Zacks Consensus Estimate of $0.58 per share, but showing an increase from $0.47 per share a year ago, resulting in an earnings surprise of -4.99% [1] - The company posted revenues of $3.2 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 1.80%, compared to year-ago revenues of $2.74 billion [2] - The stock has gained approximately 12.9% since the beginning of the year, outperforming the S&P 500's gain of 1.7% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $0.60 on revenues of $3.19 billion, and for the current fiscal year, it is $2.33 on revenues of $12.85 billion [7] - The Oil and Gas - Production and Pipelines industry is currently ranked in the top 32% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Summary of The Williams Companies 2026 Investor Day Company Overview - **Company**: The Williams Companies (NYSE: WMB) - **Event**: 2026 Investor Day held on February 10, 2026 - **Key Speakers**: Chad Zamarin (President and CEO), Rob Wingo (EVP of Corporate Strategic Development), Larry Larson (COO), John Porter (CFO) Core Industry Insights - **Natural Gas Demand**: - Natural gas demand in the U.S. has increased by over 50% since 2010 and is projected to grow by another 35% over the next decade, with LNG demand expected to more than double by the early 2030s [14][16] - Natural gas has been responsible for over 60% of emissions reductions in the U.S. over the past 15 years [15] - The demand for natural gas is accelerating, driven by power generation and industrial needs [16][17] - **Infrastructure Challenges**: - There is a significant lag in pipeline and storage infrastructure relative to growing demand, leading to increased consumer costs [20][21] - Winter gas prices in New England can be nearly triple the cost in Northeast Pennsylvania due to infrastructure bottlenecks [21] - Permitting reform is essential to address these infrastructure challenges, as lengthy permitting processes hinder project execution [22][23] Financial Performance - **2025 Results**: - Achieved $7.75 billion in Adjusted EBITDA, hitting the midpoint of guidance which was increased by $350 million during the year [7][8] - The company has delivered 13 years of consecutive EBITDA growth and a 14% EPS CAGR over the past five years [32][33] - **Dividend Growth**: - Williams has paid dividends for over 50 years, with a recent 5% increase announced for 2026 [32] - The company aims for a 10%+ compound annual growth in adjusted EBITDA from 2025 through 2030 [33][34] Strategic Initiatives - **Power Innovation Projects**: - Announced an upsizing of two projects and the commercialization of a fourth project, totaling over $7 billion in investments with attractive returns [29][55] - The new project "Socrates the Younger" adds 340 MW of capacity under a 10-year take-or-pay contract, representing approximately $1.3 billion of new capital [56] - **Operational Excellence**: - Focus on safety and reliability, achieving a 10% reduction in methane intensity in 2025 [65] - Delivered an operating margin ratio of 75% and generated approximately $2.5 billion of excess cash flow [67] Competitive Advantages - **Market Position**: - Williams operates the largest natural gas pipeline assets in the U.S., including the Transco pipeline, and has a significant presence in LNG and power generation [28][29] - The company is well-positioned to capture growth in LNG demand and power generation, particularly from data centers [48][50] - **Customer Commitment**: - Strong customer confidence is reflected in the expansion of existing contracts and the addition of new projects, indicating a robust demand for Williams' services [56] Conclusion - **Investment Opportunity**: - Williams is positioned as a differentiated energy investment opportunity with a strong track record of performance, a commitment to innovation, and a clear path for future growth [35][36] - **Long-term Outlook**: - The company is focused on maintaining a strong balance sheet while pursuing growth opportunities that align with its strategic goals [36]

2026 Analyst Day February 2026 WILLIAMS © 2026 The Williams Companies, Inc. All rights reserved NYSE: WMB I 2026 Analyst Day I February 10, 2026 I www.williams.com 1 Agenda Welcome & Introductions Danilo Juvane, VP IR and ESG CEO Perspective Chad Zamarin, President & Chief Executive Officer 15-minute Break All Attendees Corporate Strategy Rob Wingo, EVP, Corporate Strategic Development Operations & Execution Larry Larsen, EVP & Chief Operating Officer Financial Outlook John Porter, EVP & Chief Financial Off ...

Financial Performance - Williams reported record Adjusted EBITDA of $7.75 billion for 2025, representing a 9% increase from 2024[4]. - GAAP net income for 2025 was $2.615 billion, or $2.14 per diluted share, up 18% compared to 2024[4]. - Cash flow from operations increased by $924 million to $5.898 billion, a 19% rise from 2024[4]. - Total revenues for 2025 reached $11,950 million, a 13.8% increase from $10,503 million in 2024[28]. - Net income attributable to The Williams Companies, Inc. for 2025 was $2,615 million, up 17.7% from $2,222 million in 2024[28]. - Operating income for 2025 was $4,196 million, compared to $3,339 million in 2024, reflecting a 25.8% increase[28]. - Cash provided by operating activities in 2025 was $5,898 million, an increase from $4,974 million in 2024[33]. - The company reported a basic earnings per share of $2.14 for 2025, up from $1.82 in 2024[28]. - Net income for 2024 totaled $2,346 million, with a projected increase to $2,768 million in 2025[53]. - Modified EBITDA for 2024 was $6,656 million, expected to rise to $7,673 million in 2025[53]. - Available funds from operations (AFFO) for 2024 were $5,378 million, with a forecast of $5,858 million for 2025[54]. - The coverage ratio for AFFO to common dividends paid was 2.32 for 2024, projected to be 2.40 in 2025[54]. Capital Expenditures and Investments - Capital investments for 2025 totaled $4.294 billion, significantly up from $2.706 billion in 2024[4]. - The company anticipates a total of $5,404 million in capital expenditures for 2025, with a focus on expanding operational capabilities[44]. - The company plans to invest $3,258 million in Transmission, Power & Gulf for 2025, indicating a growth strategy in this segment[44]. - The company has identified $511 million in purchases of and contributions to equity-method investments for 2025, indicating ongoing strategic investments[44]. - The Northeast G&P segment's capital expenditures for 2024 are expected to be $211 million, a decrease from $224 million in 2023[44]. - Total capital expenditures for 2024 are projected to be $4,893 million, with a significant increase in the 1st quarter to $1,012 million[44]. Future Guidance - 2026 Adjusted EBITDA guidance is set between $8.05 billion and $8.35 billion, reflecting a 6% increase at the midpoint compared to 2025[4][23]. - The company anticipates 2026 growth capital expenditures between $6.1 billion and $6.7 billion[23]. - Guidance for 2026 indicates net income from continuing operations will range from $3,010 million to $3,240 million[56]. - Adjusted EBITDA for 2026 is expected to be between $8,050 million and $8,350 million[56]. - Net cash provided by operating activities for 2026 is projected to be between $6,315 million and $6,545 million[56]. - Common dividends paid are expected to be $2,575 million in 2026[56]. - The company anticipates a total adjusted income from continuing operations available to common stockholders between $2,700 million and $2,930 million for 2026[56]. Operational Highlights - Williams completed 12 projects in 2025, including 6 pipeline transmission and 4 Deepwater projects[4]. - The company executed a strategic partnership with Woodside Energy and closed acquisitions of Rimrock and Saber Midstream[4]. - Average daily transportation volumes for Transcontinental Gas Pipe Line increased from 14.0 MMdth in 2023 to 15.0 MMdth in 2025, reflecting a 7.1% growth[34]. - Average daily firm reserved capacity for Transcontinental Gas Pipe Line is projected to increase from 20.1 MMdth in 2023 to 20.8 MMdth in 2025, a growth of 3.5%[34]. - Average daily crude oil transportation volumes are expected to rise from 113 Mbbls/d in 2023 to 208 Mbbls/d in 2025, representing an 84.1% increase[34]. - Gathering volumes averaged 5.46 Bcf/d in 2024, with an increase to 6.09 Bcf/d projected for 2025[39]. Dividend Policy - The company raised its dividend by 5% to $2.10 annualized for 2026, marking 52 consecutive years of dividend payments[4]. - The company is committed to maintaining dividend levels while navigating economic uncertainties and market volatility[60]. Risks and Considerations - Key factors influencing future results include levels of dividends, capital expenditures, and business expansion strategies[59]. - The company highlights risks related to natural gas and crude oil prices, market demand, and regulatory environments that could impact financial outcomes[60]. - Future cash flow from operations and the ability to execute capital projects are critical for achieving business objectives[60]. - The impact of climate change and regulatory scrutiny on environmental practices is a significant consideration for future strategies[60]. - The geopolitical situation, including conflicts and changes in U.S. policies, may affect operational and financial stability[60]. - Future reports will include detailed risk factors that could lead to deviations from anticipated results[63]. - The company does not intend to update forward-looking statements unless required by law, emphasizing the inherent uncertainties in such projections[61].

Core Insights - The Williams Companies, Inc. (WMB) is exploring the acquisition of U.S. natural gas producing assets to enhance its role as an energy partner for hyperscalers and AI data center developers, marking a strategic shift from its traditional midstream operations [1][10] Group 1: Strategic Shift and Market Positioning - Williams is targeting the digital infrastructure market by potentially adding upstream gas production, aiming to provide a comprehensive energy solution that includes supply, transportation, storage, and power generation for hyperscalers [2][10] - The company is evaluating opportunities aligned with its natural gas-focused strategy, although discussions are still preliminary and no transaction is guaranteed [4][11] Group 2: Power Innovation and Growth Potential - Williams' Power Innovation business has $5.1 billion in committed capital, delivering grid solutions to meet the increasing demand from data centers, with projects backed by 10-year take-or-pay contracts ensuring predictable returns [3][10] - The company has made significant investments, including a $2 billion power project in Ohio expected to deliver 440 megawatts, along with two additional projects representing a combined investment of approximately $3.1 billion, scheduled to come online in 2027 [7][8] Group 3: Industry Context and Demand Dynamics - The rise in AI adoption has led to a surge in demand for reliable power, placing pressure on the U.S. power grid, which is facing challenges such as aging infrastructure and local opposition to new facilities [5][6] - Securing dependable fuel sources has become a strategic priority for energy providers and hyperscalers, highlighting the importance of integrated energy solutions [6] Group 4: Long-term Strategy and Financial Outlook - Williams is targeting annual EBITDA growth of 5%-7%, with potential upward revisions as power and integrated energy initiatives scale [12] - The re-entry into upstream production could position the company as a critical energy backbone for the AI economy, linking natural gas supply directly to the power needs of hyperscalers [12]

Core Viewpoint - The Williams Companies, Inc. (NYSE:WMB) is recognized as one of the top oil and gas stocks to invest in, with recent price target increases from Jefferies and Mizuho indicating strong market confidence in the company's growth potential [1][3]. Group 1: Price Target Increases - Jefferies raised its price target for The Williams Companies, Inc. from $71 to $76 while maintaining a Buy rating [1]. - Mizuho increased its price target from $72 to $73, keeping an Outperform rating [3]. Group 2: Growth Expectations - Jefferies anticipates medium-term adjusted EBITDA growth guidance of 8% to 10% through fiscal 2030 compared to 2025, surpassing current market expectations [2]. - Mizuho has raised its fiscal year 2026 estimates above consensus, emphasizing the potential benefits from energy market volatility due to Winter Storm Fern [4]. Group 3: Strategic Initiatives - The Williams Companies, Inc. is advancing its strategy of leveraging natural gas infrastructure to capture core gas transmission projects [4]. - The company is also pursuing behind-the-meter power generation initiatives, which are expected to significantly enhance growth [4].

Core Viewpoint - Williams Companies is considering acquiring natural gas production assets in the United States, marking a significant move for an energy infrastructure operator aiming to secure natural gas supplies for its operations [1] Group 1: Company Strategy - The company is exploring this acquisition as part of its strategy to enhance its natural gas supply chain [1] - This initiative represents a rare approach for an energy infrastructure operator, indicating a shift towards more integrated operations within the natural gas sector [1] Group 2: Industry Context - The move reflects broader trends in the energy industry where companies are increasingly looking to control production to ensure supply stability [1] - The acquisition could position Williams Companies favorably in a competitive market, as securing production assets may provide a strategic advantage [1]