wmb-20231101
0000107263false00001072632023-11-012023-11-01

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 1, 2023

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 1, 2023, The Williams Companies, Inc. (the "Company") issued a press release announcing its financial results for the quarter ended September 30, 2023. 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 1, 2023By:
/s/ JOHN D. PORTER
John D. Porter
Senior Vice President and Chief Financial Officer (Principal Financial Officer)


Document
Exhibit 99.1

News Release
Williams (NYSE: WMB)
One Williams Center
Tulsa, OK 74172
800-Williams
www.williams.com
  https://cdn.kscope.io/42e4181a742f7ebab7d8bb66f8a39d0b-wmb_image1a19a.jpg

DATE: Wednesday, November 1, 2023
MEDIA CONTACT:INVESTOR CONTACTS:
media@williams.com
(800) 945-8723
Danilo Juvane
(918) 573-5075
Caroline Sardella
(918) 230-9992

Williams Reports Strong Third-Quarter Results
TULSA, Okla. – Williams (NYSE: WMB) today announced its unaudited financial results for the three and nine months ended September 30, 2023.

Continued strength in base business delivers another quarter of solid financial results
GAAP net income of $654 million, or $0.54 per diluted share (EPS) – up 10% vs. 3Q 2022
Adjusted net income of $547 million, or $0.45 per diluted share (Adjusted EPS)
Adjusted EBITDA of $1.652 billion – up $15 million from 3Q 2022
Cash flow from operations (CFFO) of $1.234 billion
Available funds from operations (AFFO) of $1.230 billion
Dividend coverage ratio of 2.26x (AFFO basis)
Increased midpoint for full-year 2023 guidance to $6.7 billion Adjusted EBITDA
Continued improvement of balance sheet with leverage ratio of 3.45x

Steadfast project execution to drive additional business growth in 2023 and beyond; sale of non-core assets and strategic acquisitions fine-tune portfolio
Placed in-service phase one of Transco's Regional Energy Access expansion Oct. 21 ahead of schedule
Signed precedent agreements on Transco's Southeast Supply Enhancement
Signed anchor shipper precedent agreement on MountainWest Uinta Basin expansion project
Completed NorTex Wolf Hollow, South Mansfield and phase one of Northeast Cardinal Utica expansions
Sold non-core Bayou Ethane system for an attractive multiple greater than 14x
Delaware Supreme Court affirms previous rulings in long-standing suit; Energy Transfer ordered to pay $602 million plus additional interest accrued during the appeal to Williams for failed merger
Optimizing position in DJ Basin through Rocky Mountain Midstream and Cureton Front Range LLC acquisitions
Assuming operatorship of non-consolidated Blue Racer joint venture
Supporting two clean hydrogen hubs announced by U.S. Department of Energy

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

“Williams delivered another quarter of impressive accomplishments with Adjusted EBITDA up 9 percent year-to-date 2023, despite dramatically lower natural gas prices. We expect the strong performance to continue, providing confidence to raise our guidance midpoint by $100 million to $6.7 billion Adjusted EBITDA for 2023.

"Our teams have done an excellent job executing our large-scale expansion projects in a complex and challenging permitting environment. We placed the first phase of our latest Transco expansion project, Regional Energy Access, into service ahead of schedule, progressed on an additional 2 Bcf/d of Transco expansions for completion by year-end 2025, and executed precedent agreements on the 1.4 Bcf/d Southeast Supply
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Enhancement project. Our teams also successfully integrated MountainWest into our operations and are executing on more profitable growth with this asset than we had planned. Additionally, we have once again optimized our portfolio, using proceeds from the sale of non-core assets, along with expected proceeds from a recent legal judgement, to strengthen our position and capture tangible synergies in the DJ Basin."

Armstrong added, “Williams has proven its ability to predictably grow through a variety of commodity cycles, and our natural gas strategy is more relevant than ever as demand for natural gas continues to increase, especially to serve electric power generation and LNG exports. Williams is well positioned to capture significant future growth and return value to our shareholders, while we reliably deliver the benefits of natural gas to the United States and abroad."
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.2023202220232022
GAAP Measures
Net Income$654 $599 $2,127 $1,378 
Net Income Per Share$0.54 $0.49 $1.74 $1.13 
Cash Flow From Operations$1,234 $1,490 $4,125 $3,670 
Non-GAAP Measures (1)
Adjusted EBITDA$1,652 $1,637 $5,058 $4,644 
Adjusted Net Income$547 $592 $1,746 $1,575 
Adjusted Earnings Per Share$0.45 $0.48 $1.43 $1.29 
Available Funds from Operations$1,230 $1,241 $3,890 $3,561 
Dividend Coverage Ratio2.26 x2.40 x2.38 x2.29 x
Other
Debt-to-Adjusted EBITDA at Quarter End (2)3.45 x3.68 x
Capital Investments (3) (4)$805 $526 $2,045 $1,271 
(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 includes 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 2023 capital excludes ($29 million) and $1.024 billion, respectively for the acquisition of MountainWest Pipeline Holding company, which closed February 14, 2023. Third-quarter and year-to-date 2022 capital excludes $424 million for the purchase of NorTex Midstream, which closed August 31, 2022. Year-to-date 2022 capital also excludes $933 million for purchase of the Trace Midstream Haynesville gathering assets, which closed April 29, 2022.

GAAP Measures
Third-quarter 2023 net income increased by $55 million compared to the prior year reflecting a $130 million gain on the sale of the Bayou Ethane system and the benefit of higher service revenues driven by contributions from recent acquisitions and increased volumes and rates in the Northeast G&P segment. These improvements were partially offset by our $31 million share of a loss contingency accrual on our Aux Sable equity-method investment and lower results from our upstream business reflecting lower prices partially offset by higher production volumes, and higher operating expenses. The tax provision increased $80 million primarily due to a lower benefit associated with decreases in our estimate of the state deferred income tax rate in both periods and higher pretax income, partially offset by the absence of an unfavorable revision to a state net operating loss carryforward in 2022.
For year-to-date 2023, net income increased $749 million compared to the prior year reflecting a favorable change of $762 million in net unrealized gains/losses on commodity derivatives. Other drivers of the year-to-date increase are similar to those described for the quarterly comparison, except that improved marketing margins more than offset lower natural gas liquids (NGL) processing margins for the year-to-date period. The tax provision increased primarily due to higher pretax income and the absence of $134 million benefit associated with the release of valuation allowances on deferred income tax assets and federal income tax settlements recorded in the prior year, and a lower benefit associated with decreases in our estimate of the state deferred income tax rate in
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both periods. The year-to-date 2023 period also reported a loss from discontinued operations associated with an adverse legal ruling involving former refinery operations.

Cash flow from operations for the third-quarter decreased compared to the prior year primarily due to unfavorable net changes in working capital and lower distributions from certain equity method investments, partially offset by higher operating results exclusive of noncash items. Year-to-date cash flow from operations increased compared to the prior year primarily due to higher operating results exclusive of non-cash items and favorable changes in derivative margin requirements, partially offset by lower distributions from certain equity method investments.

Non-GAAP Measures
Third-quarter 2023 Adjusted EBITDA increased by $15 million over the prior year, driven by the previously described higher service revenues, partially offset by reduced upstream results, lower marketing margins, higher operating costs and lower JV proportional EBITDA. Year-to-date 2023 Adjusted EBITDA increased by $414 million over the prior year, driven by similar factors, except that marketing margins were overall improved.

Third-quarter 2023 Adjusted Net Income decreased by $45 million compared to the prior year, driven by the previously described impacts to net income, adjusted primarily to remove the effects of net unrealized gains/losses on commodity derivatives, the gain on the sale of certain Gulf coast liquids pipelines, amortization of certain assets from the Sequent acquisition, our share of Aux Sable’s loss contingency accrual, NGL linefill volatility, and favorable income tax benefits. Year-to-date Adjusted Net Income increased by $171 million over the prior year driven by the previously described impacts to year-to-date income, adjusted primarily for similar items.

Third-quarter 2023 Available Funds From Operations (AFFO) decreased slightly by $11 million compared to the prior year primarily due to lower distributions from certain equity method investments partially offset by higher operating results exclusive of noncash items. Year-to-date 2023 AFFO increased by $329 million primarily reflecting higher results from continuing operations exclusive of non-cash items partially offset by lower distributions from certain equity method investments.

Third QuarterYear to Date
Amounts in millionsModified EBITDAAdjusted EBITDAModified EBITDAAdjusted EBITDA
3Q 20233Q 2022Change3Q 20233Q 2022Change20232022Change20232022Change
Transmission & Gulf of Mexico$881 $638 $243 $754 $671 $83 $2,327 $1,987 $340 $2,230 $2,020 $210 
Northeast G&P454 464 (10)485 464 21 1,439 1,332 107 1,470 1,332 138 
West315 337 (22)315 337 (22)931 885 46 913 893 20 
Gas & NGL Marketing Services43 20 23 16 38 (22)678 (249)927 231 109 122 
Other81 140 (59)82 127 (45)196 284 (88)214 290 (76)
Total$1,774 $1,599 $175 $1,652 $1,637 $15 $5,571 $4,239 $1,332 $5,058 $4,644 $414 
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 and year-to-date 2023 Modified and Adjusted EBITDA improved compared to the prior year driven by the MountainWest and NorTex Midstream acquisitions, higher service revenues, lower employee-related costs and increased benefit of allowance for equity funds used during construction. Modified EBITDA for 2023 was further impacted by the gain on the sale the Bayou Ethane system and one-time MountainWest acquisition and transition costs, while 2022 included a loss related to Eminence storage cavern abandonments and a regulatory charge associated with Transco’s deferred state income tax rate, all of which are excluded from Adjusted EBITDA.

Northeast G&P
Third-quarter and year-to-date 2023 Modified and Adjusted EBITDA reflect increased gathering rates and volumes, partially offset by lower rates at Laurel Mountain Midstream and Bradford joint ventures compared to the prior year. Modified EBITDA for 2023 also reflects our share of a loss contingency accrual at Aux Sable which is excluded from Adjusted EBITDA.

West
Third-quarter 2023 Modified and Adjusted EBITDA decreased compared to the prior year primarily reflecting lower NYMEX-based rates in the Barnett partially offset by favorable changes in realized gains on natural gas hedges. Year-to-date Modified and Adjusted EBITDA improved compared to the prior year driven by higher service
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revenues reflecting realized gains on natural gas hedges and higher Haynesville volumes, partially offset by lower NYMEX-based rates in the Barnett, as well increased JV EBITDA. The year-to-date period improvement also included contributions from Trace Midstream acquired in April 2022 and lower processing margins reflecting a short-term gas price spike at Opal early in the year and severe weather impacts.

Gas & NGL Marketing Services
Third-quarter 2023 Modified EBITDA improved from the prior year primarily reflecting a net favorable change in unrealized gains/losses on commodity derivatives. Year-to-date 2023 Modified EBITDA improved from the prior year primarily reflecting higher commodity marketing margins and a $791 million net favorable change in unrealized gains/losses on commodity derivatives. The unrealized gains/losses on commodity derivatives are excluded from Adjusted EBITDA.

Other
Third-quarter and year-to-date 2023 Modified and Adjusted EBITDA decreased compared to the prior year primarily reflecting lower results from our upstream business driven by lower prices, partially offset by higher production volumes. Modified EBITDA also includes net unfavorable changes in unrealized gains/losses on commodity derivatives for both the quarter and year-to-date comparative periods, which is excluded from Adjusted EBITDA.

Optimizing portfolio through non-core asset sale and re-investing in assets strategic to footprint
In the third quarter, Williams sold its Bayou Ethane system for $348 million in cash, representing a last-twelve-month multiple over 14x Adjusted EBITDA. The transaction includes long-term ethane take away agreements, locking in flow assurance for Discovery and Mobile Bay producers. The proceeds from the sale will contribute to funding Williams’ extensive portfolio of attractive growth capital investments, including transactions in Colorado’s Denver-Julesburg (“DJ”) Basin:

Williams has agreed to acquire Cureton Front Range LLC, whose assets include gas gathering pipelines and two processing plants to serve producers across 225,000 dedicated acres.

Williams has also agreed to purchase KKR’s 50 percent ownership interest in Rocky Mountain Midstream, resulting in 100 percent ownership of Rocky Mountain Midstream for Williams.

The acquisitions have a combined value of $1.27 billion, representing a blended multiple of approximately 7x expected 2024 Adjusted EBITDA. The combination of these two assets will further drive down purchase multiple via increased volumes on existing processing facilities, as well as downstream NGL transportation, fractionation and storage assets. The transactions are expected to close by the end of 2023, making Williams the third largest gatherer in the DJ Basin and progressing toward the company's strategy of maintaining top positions in its areas of operation.

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 2023 Form 10-Q.

2023 Financial Guidance
The company increased its midpoint of guidance and now expects 2023 Adjusted EBITDA between $6.6 billion and $6.8 billion. Growth capex guidance remains the same; between $1.6 billion to $1.9 billion. Importantly, Williams anticipates a leverage ratio midpoint of 3.65x, which will allow it to retain financial flexibility. The dividend was increased by 5.3% on an annualized basis to $1.79 in 2023 from $1.70 in 2022.

Williams' Third-Quarter 2023 Materials to be Posted Shortly; Q&A Webcast Scheduled for Tomorrow
Williams' third-quarter 2023 earnings presentation will be posted at www.williams.com. The company’s third-quarter 2023 earnings conference call and webcast with analysts and investors is scheduled for Thursday, November 2, 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://conferencingportals.com/event/MTgNWtxQ

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

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About Williams
As the world demands reliable, low-cost, low-carbon energy, Williams (NYSE: WMB) will be there with the best transport, storage and delivery solutions to reliably fuel the clean energy economy. Headquartered in Tulsa, Oklahoma, Williams is an industry-leading, investment grade C-Corp with operations across the natural gas value chain including gathering, processing, interstate transportation, storage, wholesale marketing and trading of natural gas and natural gas liquids. With major positions in top U.S. supply basins, Williams connects the best supplies with the growing demand for clean energy. Williams owns and operates more than 33,000 miles of pipelines system wide – including Transco, the nation’s largest volume natural gas pipeline – and handles approximately one third of the natural gas in the United States that is used every day for clean-power generation, heating and industrial use. Learn how the company is leveraging its nationwide footprint to incorporate clean hydrogen, NextGen Gas and other innovations at www.williams.com.
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The Williams Companies, Inc.
Consolidated Statement of Income
(Unaudited)
Three Months Ended 
September 30,
Nine Months Ended 
September 30,
2023202220232022
(Millions, except per-share amounts)
Revenues:
Service revenues$1,770 $1,685 $5,212 $4,828 
Service revenues – commodity consideration45 60 108 223 
Product sales720 1,260 2,158 3,475 
Net gain (loss) on commodity derivatives24 16 645 (491)
Total revenues2,559 3,021 8,123 8,035 
Costs and expenses:
Product costs484 990 1,458 2,650 
Net processing commodity expenses31 29 129 99 
Operating and maintenance expenses522 486 1,466 1,345 
Depreciation and amortization expenses521 500 1,542 1,504 
Selling, general, and administrative expenses146 163 483 477 
Gain on sale of business(130)— (130)— 
Other (income) expense – net(9)33 (49)14 
Total costs and expenses1,565 2,201 4,899 6,089 
Operating income (loss)994 820 3,224 1,946 
Equity earnings (losses)127 193 434 492 
Other investing income (loss) – net24 45 
Interest incurred(330)(296)(953)(871)
Interest capitalized16 39 13 
Other income (expense) – net30 (6)69 
Income (loss) before income taxes861 717 2,858 1,589 
Less: Provision (benefit) for income taxes176 96 635 169 
Income (loss) from continuing operations685 621 2,223 1,420 
Income (loss) from discontinued operations(1)— (88)— 
Net income (loss)684 621 2,135 1,420 
Less: Net income (loss) attributable to noncontrolling interests
30 21 94 40 
Net income (loss) attributable to The Williams Companies, Inc.
654 600 2,041 1,380 
Less: Preferred stock dividends
Net income (loss) available to common stockholders$653 $599 $2,039 $1,378 
Amounts attributable to The Williams Companies, Inc. available to common stockholders:
Income (loss) from continuing operations$654 $599 $2,127 $1,378 
Income (loss) from discontinued operations(1)— (88)— 
Net income (loss) available to common stockholders$653 $599 $2,039 $1,378 
Basic earnings (loss) per common share:
Income (loss) from continuing operations$.54 $.49 $1.74 $1.13 
Income (loss) from discontinued operations— — (.07)— 
Net income (loss) available to common stockholders$.54 $.49 $1.67 $1.13 
Weighted-average shares (thousands)1,216,951 1,218,964 1,218,021 1,218,202 
Diluted earnings (loss) per common share:
Income (loss) from continuing operations$.54 $.49 $1.74 $1.13 
Income (loss) from discontinued operations— — (.07)— 
Net income (loss) available to common stockholders$.54 $.49 $1.67 $1.13 
Weighted-average shares (thousands)1,220,073 1,222,472 1,222,650 1,222,153 
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The Williams Companies, Inc.
Consolidated Balance Sheet
(Unaudited)
September 30,
2023
December 31,
2022
(Millions, except per-share amounts)
ASSETS
Current assets:
Cash and cash equivalents$2,074 $152 
Trade accounts and other receivables (net of allowance of $3 at September 30, 2023 and $6 at December 31, 2022)
1,419 2,723 
Inventories266 320 
Derivative assets243 323 
Other current assets and deferred charges254 279 
Total current assets4,256 3,797 
Investments4,998 5,065 
Property, plant, and equipment50,805 47,057 
Accumulated depreciation and amortization(18,177)(16,168)
Property, plant, and equipment – net
32,628 30,889 
Intangible assets – net of accumulated amortization7,459 7,363 
Regulatory assets, deferred charges, and other1,447 1,319 
Total assets$50,788 $48,433 
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable$1,358 $2,327 
Derivative liabilities123 316 
Accrued and other current liabilities1,166 1,270 
Commercial paper— 350 
Long-term debt due within one year2,879 627 
Total current liabilities5,526 4,890 
Long-term debt22,772 21,927 
Deferred income tax liabilities3,496 2,887 
Regulatory liabilities, deferred income, and other4,651 4,684 
Contingent liabilities and commitments
Equity:
Stockholders’ equity:
Preferred stock ($1 par value; 30 million shares authorized at September 30, 2023 and December 31, 2022; 35,000 shares issued at September 30, 2023 and December 31, 2022)
35 35 
Common stock ($1 par value; 1,470 million shares authorized at September 30, 2023 and December 31, 2022; 1,256 million shares issued at September 30, 2023 and 1,253 million shares issued at December 31, 2022)
1,256 1,253 
Capital in excess of par value24,562 24,542 
Retained deficit(12,876)(13,271)
Accumulated other comprehensive income (loss)48 (24)
Treasury stock, at cost (39 million shares at September 30, 2023 and 35 million shares at December 31, 2022 of common stock)
(1,180)(1,050)
Total stockholders’ equity11,845 11,485 
Noncontrolling interests in consolidated subsidiaries2,498 2,560 
Total equity14,343 14,045 
Total liabilities and equity$50,788 $48,433 



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

Nine Months Ended 
September 30,
20232022
(Millions)
OPERATING ACTIVITIES:
Net income (loss)$2,135 $1,420 
Adjustments to reconcile to net cash provided (used) by operating activities:
Depreciation and amortization1,542 1,504 
Provision (benefit) for deferred income taxes586 182 
Equity (earnings) losses(434)(492)
Distributions from equity-method investees607 688 
Net unrealized (gain) loss from derivative instruments(433)329 
Gain on sale of business(130)— 
Inventory write-downs28 76 
Amortization of stock-based awards59 58 
Cash provided (used) by changes in current assets and liabilities:
Accounts receivable1,295 (672)
Inventories29 (152)
Other current assets and deferred charges(5)(62)
Accounts payable(1,072)743 
Accrued and other current liabilities(114)167 
Changes in current and noncurrent derivative assets and liabilities172 86 
Other, including changes in noncurrent assets and liabilities(140)(205)
Net cash provided (used) by operating activities4,125 3,670 
FINANCING ACTIVITIES:
Proceeds from (payments of) commercial paper – net(352)— 
Proceeds from long-term debt2,754 1,752 
Payments of long-term debt(21)(2,019)
Proceeds from issuance of common stock53 
Purchases of treasury stock(130)(9)
Common dividends paid(1,635)(1,553)
Dividends and distributions paid to noncontrolling interests(174)(141)
Contributions from noncontrolling interests18 15 
Payments for debt issuance costs(21)(14)
Other – net(19)(40)
Net cash provided (used) by financing activities428 (1,956)
INVESTING ACTIVITIES:
Property, plant, and equipment:
Capital expenditures (1)(1,845)(1,447)
Dispositions – net(33)(19)
Contributions in aid of construction20 
Proceeds from sale of business348 — 
Purchases of businesses, net of cash acquired (1,024)(933)
Purchases of and contributions to equity-method investments(80)(140)
Other – net(17)(4)
Net cash provided (used) by investing activities(2,631)(2,535)
Increase (decrease) in cash and cash equivalents1,922 (821)
Cash and cash equivalents at beginning of year152 1,680 
Cash and cash equivalents at end of period$2,074 $859 
_____________
(1) Increases to property, plant, and equipment$(1,960)$(1,549)
Changes in related accounts payable and accrued liabilities115 102 
Capital expenditures$(1,845)$(1,447)
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Transmission & Gulf of Mexico
(UNAUDITED)
20222023
(Dollars in millions)1st Qtr2nd Qtr3rd Qtr4th QtrYear1st Qtr2nd Qtr3rd Qtr Year
Regulated interstate natural gas transportation, storage, and other revenues (1)
$730 $717 $734 $758 $2,939 $774 $786 $794 $2,354 
Gathering, processing, storage and transportation revenues82 84 99 100 365 100 104 114 318 
Other fee revenues (1)
21 19 
Commodity margins15 11 10 43 10 25 
Net unrealized gain (loss) from derivative instruments— — (1)— — — — — 
Operating and administrative costs (1)
(202)(227)(238)(239)(906)(254)(254)(257)(765)
Other segment income (expenses) - net (1)
19 17 (22)19 26 31 36 93 
Gain on sale of business— — — — — — — 130 130 
Proportional Modified EBITDA of equity-method investments
48 45 50 50 193 53 48 52 153 
Modified EBITDA697 652 638 687 2,674 715 731 881 2,327 
Adjustments— — 33 13 46 13 17 (127)(97)
Adjusted EBITDA$697 $652 $671 $700 $2,720 $728 $748 $754 $2,230 
Statistics for Operated Assets
Natural Gas Transmission (2)
Transcontinental Gas Pipe Line
Avg. daily transportation volumes (MMdth)15.0 13.5 14.7 14.2 14.4 14.3 13.2 14.0 13.8 
Avg. daily firm reserved capacity (MMdth) 19.3 19.1 19.2 19.3 19.2 19.5 19.4 19.4 19.4 
Northwest Pipeline LLC
Avg. daily transportation volumes (MMdth)2.8 2.1 2.0 2.9 2.5 3.1 2.3 2.3 2.6 
Avg. daily firm reserved capacity (MMdth) 3.8 3.8 3.8 3.8 3.8 3.8 3.8 3.8 3.8 
MountainWest (3)
Avg. daily transportation volumes (MMdth)— — — — — 4.2 3.2 3.8 3.7 
Avg. daily firm reserved capacity (MMdth)— — — — — 7.8 7.5 7.5 7.6 
Gulfstream - Non-consolidated
Avg. daily transportation volumes (MMdth)0.9 1.3 1.4 1.1 1.3 1.0 1.2 1.4 1.2 
Avg. daily firm reserved capacity (MMdth) 1.3 1.3 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) 0.30 0.28 0.29 0.28 0.29 0.28 0.23 0.27 0.26 
Plant inlet natural gas volumes (Bcf/d) 0.48 0.46 0.49 0.46 0.47 0.43 0.40 0.46 0.43 
NGL production (Mbbls/d)31 31 26 26 28 28 24 28 27 
NGL equity sales (Mbbls/d)
Crude oil transportation volumes (Mbbls/d)110 124 125 118 119 119 111 134 121 
Non-consolidated (5)
Gathering volumes (Bcf/d) 0.39 0.37 0.41 0.42 0.40 0.36 0.30 0.36 0.34 
Plant inlet natural gas volumes (Bcf/d) 0.38 0.37 0.41 0.42 0.40 0.36 0.30 0.36 0.34 
NGL production (Mbbls/d)28 26 29 29 28 28 21 30 26 
NGL equity sales (Mbbls/d)10 
(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) Excludes volumes associated with equity-method investments that are not consolidated in our results.
(5) Includes 100% of the volumes associated with operated equity-method investments, including Discovery Producer Services.
9


Northeast G&P
(UNAUDITED)
20222023
(Dollars in millions)1st Qtr2nd Qtr3rd Qtr4th Qtr Year1st Qtr2nd Qtr3rd Qtr Year
Gathering, processing, transportation, and fractionation revenues$323 $350 $354 $368 $1,395 $391 $431 $417 $1,239 
Other fee revenues (1)
27 27 27 46 127 32 27 27 86 
Commodity margins— 10 (1)11 
Operating and administrative costs (1)
(85)(102)(101)(97)(385)(101)(101)(115)(317)
Other segment income (expenses) - net(3)— (1)(1)(5)— — (1)(1)
Proportional Modified EBITDA of equity-method investments150 174 182 148 654 143 159 119 421 
Modified EBITDA418 450 464 464 1,796 470 515 454 1,439 
Our share of accrual for loss contingency at Aux Sable Liquid Products LP— — — — — — — 31 31 
Adjusted EBITDA$418 $450 $464 $464 $1,796 $470 $515 $485 $1,470 
Statistics for Operated Assets and non-operated Blue Racer Midstream
Gathering and Processing
Consolidated (2)
Gathering volumes (Bcf/d) (3)
4.03 4.19 4.22 4.31 4.19 4.42 4.61 4.41 4.48 
Plant inlet natural gas volumes (Bcf/d)1.46 1.70 1.74 1.70 1.65 1.92 1.79 1.93 1.88 
NGL production (Mbbls/d)110 118 125 127 120 144 135 144 141 
NGL equity sales (Mbbls/d)— 
Non-consolidated (4)
Gathering volumes (Bcf/d)6.62 6.76 6.58 6.48 6.61 6.97 7.03 6.83 6.94 
Plant inlet natural gas volumes (Bcf/d)0.66 0.76 0.66 0.77 0.71 0.77 0.93 0.99 0.90 
NGL production (Mbbls/d)50 53 45 56 51 54 64 71 63 
NGL equity sales (Mbbls/d)
(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) 1st Qtr 2023 and 2nd Qtr 2023 volumes have been revised for a correction.
(4) Includes 100% of the volumes associated with operated equity-method investments, including the Laurel Mountain Midstream partnership; and the Bradford Supply Hub and the Marcellus South Supply Hub within the Appalachia Midstream Services partnership. Also, all periods include non-operated Blue Racer Midstream.

10


West
(UNAUDITED)
20222023
(Dollars in millions)1st Qtr2nd Qtr3rd Qtr4th QtrYear 1st Qtr2nd Qtr3rd Qtr Year
Net gathering, processing, transportation, storage, and fractionation revenues$317 $360 $397 $401 $1,475 $382 $373 $371 $1,126 
Other fee revenues (1)
23 16 
Commodity margins23 25 27 27 102 (24)18 21 15 
Operating and administrative costs (1)
(112)(133)(128)(133)(506)(115)(122)(122)(359)
Other segment income (expenses) - net(1)(1)(6)(7)(15)23 (7)(4)12 
Proportional Modified EBITDA of equity-method investments
27 31 41 33 132 33 43 45 121 
Modified EBITDA260 288 337 326 1,211 304 312 315 931 
Adjustments— — — (18)— — (18)
Adjusted EBITDA$260 $296 $337 $326 $1,219 $286 $312 $315 $913 
Statistics for Operated Assets
Gathering and Processing
Consolidated (2)
Gathering volumes (Bcf/d) (3)
3.47 5.14 5.20 5.50 5.19 5.47 5.51 5.60 5.52 
Plant inlet natural gas volumes (Bcf/d)1.13 1.14 1.21 1.10 1.15 0.92 1.06 1.12 1.04 
NGL production (Mbbls/d)47 49 45 32 43 25 40 61 42 
NGL equity sales (Mbbls/d)17 18 13 14 16 22 15 
Non-consolidated (4)
Gathering volumes (Bcf/d)0.28 0.28 0.29 0.29 0.29 0.32 0.33 0.33 0.33 
Plant inlet natural gas volumes (Bcf/d) 0.27 0.28 0.29 0.29 0.28 0.32 0.32 0.32 0.32 
NGL production (Mbbls/d)31 32 34 32 33 37 38 38 38 
NGL and Crude Oil Transportation volumes (Mbbls/d) (5)
132 162 189 151 158 161 217 244 208 
(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 Trace Acquisition gathering assets after the purchase on April 29, 2022. Average volumes were calculated over the period owned.
(4) Includes 100% of the volumes associated with operated equity-method investments, including Rocky Mountain Midstream.
(5) Includes 100% of the volumes associated with operated equity-method investments, including Overland Pass Pipeline Company and Rocky Mountain Midstream as well as volumes for our consolidated Bluestem pipeline.
11


Gas & NGL Marketing Services
(UNAUDITED)
20222023
(Dollars in millions)1st Qtr2nd Qtr3rd Qtr4th QtrYear 1st Qtr2nd Qtr3rd Qtr Year
Commodity margins$100 $23 $39 $161 $323 $265 $(2)$38 $301 
Other fee revenues— — — 
Net unrealized gain (loss) from derivative instruments(57)(288)66 (274)333 94 24 451 
Operating and administrative costs(31)(23)(24)(18)(96)(32)(24)(19)(75)
Other segment income (expenses) - net— (1)(1)— — — — 
Modified EBITDA13 (282)20 209 (40)567 68 43 678 
Adjustments52 288 18 (60)298 (336)(84)(27)(447)
Adjusted EBITDA$65 $6 $38 $149 $258 $231 $(16)$16 $231 
Statistics
Product Sales Volumes
Natural Gas (Bcf/d)7.96 6.66 7.11 7.05 7.20 7.24 6.56 7.31 7.04 
NGLs (Mbbls/d)246 234 267 254 250 234 239 245 239 
12


Other
(UNAUDITED)
20222023
(Dollars in millions)1st Qtr2nd Qtr3rd Qtr4th Qtr Year1st Qtr2nd Qtr3rd Qtr Year
Service revenues$$$$$24 $$$$12 
Net realized product sales96 142 180 184 602 120 97 127 344 
Net unrealized gain (loss) from derivative instruments(66)47 29 15 25 (6)(11)(1)(18)
Operating and administrative costs(33)(57)(62)(59)(211)(48)(54)(58)(160)
Other segment income (expenses) - net(1)— (13)(6)10 20 
Proportional Modified EBITDA of equity-method investments
— — — — — — (1)(1)(2)
Modified EBITDA5 139 140 150 434 74 41 81 196 
Adjustments66 (47)(13)(15)(9)11 18 
Adjusted EBITDA$71 $92 $127 $135 $425 $80 $52 $82 $214 
Statistics
Net Product Sales Volumes
Natural Gas (Bcf/d)0.12 0.19 0.27 0.31 0.22 0.26 0.29 0.31 0.28 
NGLs (Mbbls/d)
Crude Oil (Mbbls/d)
13


Capital Expenditures and Investments
(UNAUDITED)
20222023
(Dollars in millions)1st Qtr2nd Qtr3rd Qtr4th QtrYear1st Qtr2nd Qtr3rd Qtr Year
Capital expenditures:
Transmission & Gulf of Mexico$125 $129 $637 $358 $1,249 $205 $263 $382 $850 
Northeast G&P40 30 52 92 214 99 74 115 288 
West61 82 94 226 463 169 197 141 507 
Other65 74 58 130 327 72 76 52 200 
Total (1)
$291 $315 $841 $806 $2,253 $545 $610 $690 $1,845 
Purchases of and contributions to equity-method investments:
Transmission & Gulf of Mexico$16 $26 $11 $17 $70 $$18 $$32 
Northeast G&P32 18 28 86 31 12 47 
West— — — — — — — 
Other— 10 — — — — 
Total$56 $44 $40 $26 $166 $39 $30 $11 $80 
Summary:
Transmission & Gulf of Mexico$141 $155 $648 $375 $1,319 $213 $281 $388 $882 
Northeast G&P72 48 80 100 300 130 86 119 335 
West61 82 94 226 463 169 197 142 508 
Other73 74 59 131 337 72 76 52 200 
Total$347 $359 $881 $832 $2,419 $584 $640 $701 $1,925 
Capital investments:
Increases to property, plant, and equipment$260 $382 $907 $845 $2,394 $484 $684 $792 $1,960 
Purchases of businesses, net of cash acquired— 933 — — 933 1,056 (3)(29)1,024 
Purchases of and contributions to equity-method investments56 44 40 26 166 39 30 11 80 
Purchases of other long-term investments— 11 
Total$316 $1,362 $950 $876 $3,504 $1,581 $712 $776 $3,069 
(1) Increases to property, plant, and equipment
$260 $382 $907 $845 $2,394 $484 $684 $792 $1,960 
Changes in related accounts payable and accrued liabilities31 (67)(66)(39)(141)61 (74)(102)(115)
Capital expenditures$291 $315 $841 $806 $2,253 $545 $610 $690 $1,845 
Contributions from noncontrolling interests$$$$$18 $$15 $— $18 
Contributions in aid of construction$(3)$$$$12 $11 $$$20 
Proceeds from sale of business$— $— $— $— $— $— $— $348 $348 
Proceeds from disposition of equity-method investments$— $— $$— $$— $— $— $— 
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, net 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 cash flow from operations excluding the effect of changes in working capital and certain other changes in noncurrent assets and liabilities, reduced by preferred dividends and net distributions to noncontrolling interests. AFFO may 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)
20222023
(Dollars in millions, except per-share amounts)1st Qtr2nd Qtr3rd Qtr4th QtrYear1st Qtr2nd Qtr3rd Qtr Year
Income (loss) from continuing operations attributable to The Williams Companies, Inc. available to common stockholders$379 $400 $599 $668 $2,046 $926 $547 $654 $2,127 
Income (loss) from continuing operations - diluted earnings (loss) per common share (1)
$.31 $.33 $.49 $.55 $1.67 $.76 $.45 $.54 $1.74 
Adjustments:
Transmission & Gulf of Mexico
Loss related to Eminence storage cavern abandonments and monitoring$— $— $19 $12 $31 $— $— $— $— 
Regulatory liability charges associated with decrease in Transco’s estimated deferred state income tax rate— — 15 — 15 — — — — 
Net unrealized (gain) loss from derivative instruments— — (1)— — — — — 
MountainWest acquisition and transition-related costs— — — — — 13 17 33 
Gain on sale of business— — — — — — — (130)(130)
Total Transmission & Gulf of Mexico adjustments— — 33 13 46 13 17 (127)(97)
Northeast G&P
Our share of accrual for loss contingency at Aux Sable Liquid
   Products LP
— — — — — — — 31 31 
Total Northeast G&P adjustments— — — — — — — 31 31 
West
Trace acquisition costs— — — — — — — 
Gain from contract settlement— — — — — (18)— — (18)
Total West adjustments— — — (18)— — (18)
Gas & NGL Marketing Services
Amortization of purchase accounting inventory fair value adjustment15 — — — 15 — — — — 
Impact of volatility on NGL linefill transactions
(20)— 23 (3)10 (3)
Net unrealized (gain) loss from derivative instruments
57 288 (5)(66)274 (333)(94)(24)(451)
Total Gas & NGL Marketing Services adjustments52 288 18 (60)298 (336)(84)(27)(447)
Other
Regulatory liability charge associated with decrease in Transco’s estimated deferred state income tax rate— — — — — — — 
Net unrealized (gain) loss from derivative instruments
66 (47)(29)(15)(25)11 18 
Accrual for loss contingencies— — 11 — 11 — — — — 
Total Other adjustments66 (47)(13)(15)(9)11 18 
Adjustments included in Modified EBITDA118 249 38 (62)343