Williams(WMB) - 2025 Q1 - Quarterly Report

Financial Performance - Net income attributable to The Williams Companies, Inc. for Q1 2025 increased by $59 million compared to Q1 2024[184]. - Service revenues increased by$98 million (5%) to $2,003 million for the three months ended March 31, 2025, compared to$1,905 million in the same period of 2024[216]. - Product sales and service revenues from commodity consideration rose by $232 million (27$1,107 million, up from $875 million year-over-year[216]. - Total revenues increased by$277 million (10%) to $3,048 million for the three months ended March 31, 2025, compared to$2,771 million in the prior year[216]. - Operating income increased by $82 million (8$1,094 million, compared to $1,012 million for the same period in 2024[216]. - Net income attributable to The Williams Companies, Inc. rose by$59 million (9%) to $691 million for the three months ended March 31, 2025, compared to$632 million in 2024[216]. - Modified EBITDA for the Transmission & Gulf of America segment increased to $858 million, up from$829 million year-over-year[228]. - The Northeast G&P Modified EBITDA increased to $514 million, compared to$504 million in the same period of 2024[232]. - Modified EBITDA for West increased to $354 million in Q1 2025, up from$327 million in Q1 2024, primarily due to higher commodity margins[238]. - Gas & NGL Marketing Services Modified EBITDA increased to $152 million in Q1 2025, compared to$101 million in Q1 2024, despite lower commodity margins[241]. - Total revenues for Transco increased to $770 million in Q1 2025, up from$732 million in Q1 2024, with natural gas transportation service revenues rising by $38 million[248]. - Net income for Transco decreased to$321 million in Q1 2025, down from $348 million in Q1 2024, reflecting an 8$2.575 billion to $2.875 billion, excluding acquisitions[197]. - Williams purchased natural gas gathering and processing assets from Rimrock Energy Partners for approximately$325 million[187]. - The Socrates Power Solution Facilities project involves a $1.6 billion investment to provide 400 megawatts of committed onsite power generation capacity, expected to be operational in the second half of 2026[212]. - The Huntingdon Connector project is anticipated to increase capacity by 87 Mdth/d and is planned to be in service by the fourth quarter of 2026[210]. - The Haynesville Gathering Expansion project is expected to go into service in the third quarter of 2025, supporting natural gas production growth in the Haynesville Shale basin[214]. - Williams expects to benefit from the recent equity investment in Cogentrix, amounting to$153 million[189]. Revenue and Service Updates - The Texas to Louisiana Energy Pathway project provides 364 Mdth/d of new firm transportation service, placed into service in April 2025[192]. - The Southeast Energy Connector project increases Transco's capacity by 150 Mdth/d, placed into service in April 2025[193]. - The ongoing expansion projects include the Deepwater Whale Project, which was placed into service in January 2025[191]. - Williams anticipates increases in Haynesville Shale volumes, partially offset by lower expected Eagle Ford results[196]. - Service revenues for the three months ended March 31, 2025, increased to $438 million, compared to$437 million in 2024, reflecting a slight growth[237]. Debt and Liquidity - As of March 31, 2025, Williams has approximately $3.0 billion of long-term debt due within one year and a working capital deficit of$3.731 billion[262][265]. - Williams expects to have sufficient liquidity in 2025, with potential sources including $100 million in cash and cash equivalents and$3.75 billion credit facility capacity[263][265]. - As of March 31, 2025, Williams has approximately $24.1 billion of long-term debt due after one year, with potential liquidity sources including cash generated from operations and refinancing[264]. - Williams issued$1.5 billion of long-term debt on January 9, 2025, and retired $750 million of long-term debt on January 15, 2025[261]. Dividends - In March 2025, Williams paid a regular quarterly dividend of$0.50 per share[183]. - The company increased its regular quarterly cash dividend to $0.50 per share in March 2025, up from$0.4750 per share in 2024[266]. Commodity and Market Performance - Commodity margins rose by $22 million, driven by a$13 million increase in marketing margins and $11 million higher margins from equity NGLs[238]. - A$40 million increase in net realized product sales from upstream operations was noted, primarily due to higher production volumes and commodity prices[247]. - Commodity margins for Gas & NGL Marketing Services decreased by $45 million, primarily due to a$38 million decrease in natural gas marketing margins[243]. Risk and Credit Ratings - The fair value of commodity derivative assets and liabilities at March 31, 2025, was $(383) million, with Level 1 and Level 2 liabilities contributing significantly to this amount[278]. - Williams' Value at Risk (VaR) for integrated natural gas trading operations was$8 million at March 31, 2025, compared to $4 million at December 31, 2024[282]. - Credit ratings for Williams include BBB+ from S&P with a stable outlook, Baa2 from Moody's with a positive outlook, and BBB from Fitch with a positive outlook[268].