wmb-20240506
0000107263false00001072632024-05-062024-05-06

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): May 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 May 6, 2024, The Williams Companies, Inc. (the "Company") issued a press release announcing its financial results for the quarter ended March 31, 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:May 6, 2024By:
/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/695ebe6dbdbe40c8d37cd51fc1dadb3d-wmb_image1a19.jpg

DATE: Monday, May 6, 2024


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

Williams Delivers Strong First-Quarter Results; Positioned to Hit Top Half of 2024 Financial Guidance Range

TULSA, Okla. – Williams (NYSE: WMB) today announced its unaudited financial results for the three months ended March 31, 2024.

Business continues to outperform; solid execution on accretive acquisitions and organic growth driving immediate returns
GAAP net income of $631 million, or $0.52 per diluted share (EPS)
Adjusted net income of $719 million, or $0.59 per diluted share (Adj. EPS) – up 5% vs. 1Q 2023
Adjusted EBITDA of $1.934 billion – up $139 million or 8% vs. 1Q 2023
Cash flow from operations (CFFO) of $1.234 billion
Available funds from operations (AFFO) of $1.507 billion – up $62 million or 4% vs. 1Q 2023
Dividend coverage ratio of 2.60x (AFFO basis)
Record contracted transmission capacity of 33.9 Bcf/d – up 4.3% from 1Q 2023
Strong 1Q performance driving expectations to top half of 2024 financial guidance range

Recent acquisitions and large roster of projects in execution building long-term value
Closed acquisition of 6 storage facilities with total capacity of 115 Bcf across Louisiana and Mississippi, strategically located to serve growing LNG exports and power generation demand
Placed Transco's Carolina Market Link into service 1Q 2024
Received FERC notice to proceed on Transco's Commonwealth Energy Connector
Commenced construction on Transco's Southside Reliability Enhancement and Southeast Energy Connector
First phase of Transco's Regional Energy Access continued to deliver earnings with second phase on track to come online in 4Q 2024
Received FERC certificate for Transco's Alabama Georgia Connector and Texas to Louisiana Energy Pathway
Pre-filed FERC application for Transco's ~1.6 Bcf/d Southeast Supply Enhancement
Continued execution of additional transmission, gathering & processing and Deepwater Gulf of Mexico projects



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

“Our 8 percent higher Adjusted EBITDA was driven by the continued outperformance of our transmission, storage and gathering businesses, which delivered 13 percent higher Adjusted EBITDA compared to the same period last year. Contracted transmission capacity achieved another record in the first quarter and our Transco projects recently placed into service contributed additional fee-based revenues, as did our immediately accretive acquisitions, including the Gulf Coast storage portfolio that we closed in the quarter."

“Crisp execution by our teams in both integrating newly acquired assets and building large-scale organic projects has us on track to be in the top half of our original 2024 guidance range. As our natural gas-focused strategy continues to gain momentum, we are successfully executing a full slate of high return growth projects, with new regulatory milestones reached on seven of our FERC-regulated expansion projects so far this year and progressing on a healthy backlog of expansion opportunities to serve accelerating demand for natural gas.

Armstrong added, “Our track record of generating predictable, growing earnings in all market cycles underscores the value of Williams as a resilient, long-term investment with a strong dividend. We’ve built a business positioned for the future, and we’re leveraging our existing infrastructure and project development capabilities to serve rising domestic and global security needs, while lowering emissions and creating sustainable value for our shareholders.”
Williams Summary Financial Information1Q
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.20242023
GAAP Measures
Net Income$631 $926 
Net Income Per Share$0.52 $0.76 
Cash Flow From Operations$1,234 $1,514 
Non-GAAP Measures (1)
Adjusted EBITDA$1,934 $1,795 
Adjusted Net Income$719 $684 
Adjusted Earnings Per Share$0.59 $0.56 
Available Funds from Operations$1,507 $1,445 
Dividend Coverage Ratio2.60 x2.65 x
Other
Debt-to-Adjusted EBITDA at Quarter End (2)3.79 x3.57 x
Capital Investments (Excluding Acquisitions) (3) (4)$563 $525 
(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) First-quarter 2024 capital excludes $1.851 billion for the acquisition of the Gulf Coast Storage assets, which closed in January 2024. First-quarter 2023 capital excludes $1.056 billion for the acquisition of MountainWest, which closed in February 2023.

GAAP Measures
First-quarter 2024 net income decreased by $295 million compared to the prior year reflecting an unfavorable change of $419 million in net unrealized gains/losses on commodity derivatives, higher net interest expense from recent debt issuances and retirements, as well as higher operating costs, depreciation and interest expense resulting from recent acquisitions. These unfavorable changes were
2


partially offset by a $211 million increase in service revenues driven by acquisitions and expansion projects. The tax provision decreased primarily due to lower pretax income.

First-quarter 2024 cash flow from operations decreased compared to the prior year primarily due to unfavorable net changes in both working capital and derivative collateral requirements.
Non-GAAP Measures
First-quarter 2024 Adjusted EBITDA increased by $139 million over the prior year, driven by the previously described favorable net contributions from acquisitions and expansion projects.

First-quarter 2024 Adjusted Net Income improved by $35 million over 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 and the related income tax effects.

First-quarter Available Funds From Operations (AFFO) increased by $62 million compared to the prior year primarily due to the change in operating results 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 first-quarter 2024 Form 10-Q.
First Quarter
Amounts in millionsModified EBITDAAdjusted EBITDA
1Q 20241Q 2023Change1Q 20241Q 2023Change
Transmission & Gulf of Mexico$829 $715 $114 $839 $728 $111 
Northeast G&P504 470 34 504 470 34 
West327 304 23 328 286 42 
Gas & NGL Marketing Services101 567 (466)189 231 (42)
Other76 74 74 80 (6)
Total$1,837 $2,130 ($293)$1,934 $1,795 $139 
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
First-quarter 2024 Modified and Adjusted EBITDA improved compared to the prior year driven by favorable net contributions from the Gulf Coast Storage and MountainWest acquisitions and the Regional Energy Access expansion project. Modified EBITDA for both periods was impacted by one-time acquisition costs, which are excluded from Adjusted EBITDA.

Northeast G&P
First-quarter 2024 Modified and Adjusted EBITDA increased over the prior year driven by higher rates and volumes at Susquehanna Supply Hub, higher rates at Cardinal, and higher contribution from our Aux Sable investment, partially offset by lower volumes at Ohio Valley Midstream.

West
First-quarter 2024 Modified and Adjusted EBITDA increased compared to the prior year benefiting from the DJ Basin Acquisitions and improved commodity margins reflecting favorable changes in shrink prices related to the absence of a short-term gas price spike at Opal in 2023, partially offset by lower realized gains on natural gas hedges. Modified EBITDA was also impacted by the absence of a 2023 favorable contract settlement, which is excluded from Adjusted EBITDA.

Gas & NGL Marketing Services
First-quarter 2024 Modified EBITDA decreased from the prior year primarily reflecting lower commodity marketing margins and a $427 million net unfavorable change in unrealized gains/losses on commodity derivatives, which is excluded from Adjusted EBITDA.
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2024 Financial Guidance
After our strong first-quarter performance, Williams expects Adjusted EBITDA at the top half of its 2024 guidance range of $6.8 billion and $7.1 billion. 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 based on midpoint for emissions reduction and modernization initiatives. Williams continues to anticipate a leverage ratio midpoint for 2024 of 3.85x and has increased the dividend by 6.1% on an annualized basis to $1.90 in 2024 from $1.79 in 2023.

Williams' First-Quarter 2024 Materials to be Posted Shortly; Q&A Webcast Scheduled for Tomorrow
Williams' first-quarter 2024 earnings presentation will be posted at www.williams.com. The company's first-quarter 2024 earnings conference call and webcast with analysts and investors is scheduled for Tuesday, May 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/BI2af82b1f777e448892c40bafefdffe05

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.
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The Williams Companies, Inc.
Consolidated Statement of Income
(Unaudited)
Three Months Ended  
March 31,
20242023
(Millions, except per-share amounts)
Revenues:
Service revenues$1,905 $1,694 
Service revenues – commodity consideration30 36 
Product sales845 845 
Net gain (loss) from commodity derivatives
(9)506 
  Total revenues
2,771 3,081 
Costs and expenses:
Product costs526 553 
Net processing commodity expenses54 
Operating and maintenance expenses511 463 
Depreciation and amortization expenses548 506 
Selling, general, and administrative expenses186 176 
Other (income) expense – net(17)(31)
  Total costs and expenses
1,759 1,721 
Operating income (loss)1,012 1,360 
Equity earnings (losses)
137 147 
Other investing income (loss) – net24 
Interest expense
(349)(294)
Other income (expense) – net31 20 
Income (loss) before income taxes855 1,241 
  Less: Provision (benefit) for income taxes
193 284 
Net income (loss)662 957 
  Less: Net income (loss) attributable to noncontrolling interests
30 30 
Net income (loss) attributable to The Williams Companies, Inc.632 927 
  Less: Preferred stock dividends
Net income (loss) available to common stockholders$631 $926 
Basic earnings (loss) per common share:
Net income (loss) available to common stockholders$.52 $.76 
Weighted-average shares (thousands)1,218,155 1,219,465 
Diluted earnings (loss) per common share:
Net income (loss) available to common stockholders$.52 $.76 
Weighted-average shares (thousands)1,222,222 1,225,781 
5


The Williams Companies, Inc.
Consolidated Balance Sheet
(Unaudited)

March 31,December 31,
20242023
(Millions, except per-share amounts)
ASSETS
Current assets:
Cash and cash equivalents$667 $2,150 
Trade accounts and other receivables (net of allowance of $3 at March 31, 2024 and December 31, 2023)
1,355 1,655 
Inventories239 274 
Derivative assets173 239 
Other current assets and deferred charges176 195 
Total current assets2,610 4,513 
Investments4,639 4,637 
Property, plant and equipment54,305 51,842 
Accumulated depreciation and amortization(17,854)(17,531)
Property, plant, and equipment – net36,451 34,311 
Intangible assets – net of accumulated amortization7,496 7,593 
Regulatory assets, deferred charges, and other1,551 1,573 
Total assets$52,747 $52,627 
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable$1,042 $1,379 
Derivative liabilities75 105 
Accrued and other current liabilities1,077 1,284 
Commercial paper— 725 
Long-term debt due within one year2,787 2,337 
Total current liabilities4,981 5,830 
Long-term debt24,100 23,376 
Deferred income tax liabilities4,001 3,846 
Regulatory liabilities, deferred income, and other4,735 4,684 
Contingent liabilities and commitments
Equity:
Stockholders’ equity:
Preferred stock ($1 par value; 30 million shares authorized at March 31, 2024 and December 31, 2023; 35,000 shares issued at March 31, 2024 and December 31, 2023)
35 35 
Common stock ($1 par value; 1,470 million shares authorized at March 31, 2024 and December 31, 2023; 1,258 million shares issued at March 31, 2024 and 1,256 million shares issued at December 31, 2023)
1,258 1,256 
Capital in excess of par value24,564 24,578 
Retained deficit(12,238)(12,287)
Accumulated other comprehensive income (loss)10 — 
Treasury stock, at cost (39 million shares at March 31, 2024 and December 31, 2023 of common stock)
(1,180)(1,180)
Total stockholders’ equity12,449 12,402 
Noncontrolling interests in consolidated subsidiaries2,481 2,489 
Total equity14,930 14,891 
Total liabilities and equity$52,747 $52,627 


6


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

 Three Months Ended  
March 31,
20242023
(Millions)
OPERATING ACTIVITIES:
Net income (loss)$662 $957 
Adjustments to reconcile to net cash provided (used) by operating activities:
Depreciation and amortization548 506 
Provision (benefit) for deferred income taxes152 283 
Equity (earnings) losses(137)(147)
Distributions from equity-method investees188 208 
Net unrealized (gain) loss from commodity derivative instruments92 (327)
Inventory write-downs18 
Amortization of stock-based awards24 17 
Cash provided (used) by changes in current assets and liabilities:
Accounts receivable314 1,269 
Inventories34 27 
Other current assets and deferred charges(4)
Accounts payable(309)(1,017)
Accrued and other current liabilities(218)(318)
Changes in current and noncurrent commodity derivative assets and liabilities(68)82 
Other, including changes in noncurrent assets and liabilities(61)(40)
Net cash provided (used) by operating activities1,234 1,514 
FINANCING ACTIVITIES:
Proceeds from (payments of) commercial paper – net(723)(352)
Proceeds from long-term debt2,099 1,502 
Payments of long-term debt(1,012)(7)
Payments for debt issuance costs(16)(8)
Proceeds from issuance of common stock
Purchases of treasury stock— (74)
Common dividends paid(579)(546)
Dividends and distributions paid to noncontrolling interests(64)(54)
Contributions from noncontrolling interests26 
Other – net(17)(17)
Net cash provided (used) by financing activities(281)450 
INVESTING ACTIVITIES:
Property, plant, and equipment:
Capital expenditures (1)(544)(545)
Dispositions - net(7)
Purchases of businesses, net of cash acquired(1,851)(1,056)
Purchases of and contributions to equity-method investments(52)(39)
Other – net
Net cash provided (used) by investing activities(2,436)(1,639)
Increase (decrease) in cash and cash equivalents(1,483)325 
Cash and cash equivalents at beginning of year2,150 152 
Cash and cash equivalents at end of period$667 $477 
_________
(1)  Increases to property, plant, and equipment$(509)$(484)
Changes in related accounts payable and accrued liabilities(35)(61)
Capital expenditures$(544)$(545)
7


Transmission & Gulf of Mexico
(UNAUDITED)
20232024
(Dollars in millions)1st Qtr2nd Qtr3rd Qtr4th QtrYear1st Qtr
Regulated interstate natural gas transportation, storage, and other revenues (1)
$774 $786 $794 $822 $3,176 $836 
Gathering, processing, storage and transportation revenues100 104 114 100 418 137 
Other fee revenues (1)
23 12 
Commodity margins10 33 
Operating and administrative costs (1)
(254)(254)(257)(270)(1,035)(254)
Other segment income (expenses) - net (1)
26 31 36 26 119 43 
Gain on sale of business— — 130 (1)129 — 
Proportional Modified EBITDA of equity-method investments
53 48 52 52 205 46 
Modified EBITDA715 731 881 741 3,068 829 
Adjustments13 17 (127)11 (86)10 
Adjusted EBITDA$728 $748 $754 $752 $2,982 $839 
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 
Avg. daily firm reserved capacity (MMdth) 19.5 19.4 19.4 19.3 19.4 20.3 
Northwest Pipeline LLC
Avg. daily transportation volumes (MMdth)3.1 2.3 2.3 2.8 2.6 3.1 
Avg. daily firm reserved capacity (MMdth) 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 4.2 3.9 4.3 
Avg. daily firm reserved capacity (MMdth)7.8 7.5 7.5 7.9 7.7 8.4 
Gulfstream - Non-consolidated
Avg. daily transportation volumes (MMdth)1.0 1.2 1.4 1.1 1.2 1.0 
Avg. daily firm reserved capacity (MMdth) 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 
Plant inlet natural gas volumes (Bcf/d) 0.43 0.40 0.46 0.46 0.44 0.45 
NGL production (Mbbls/d)28 24 28 26 27 28 
NGL equity sales (Mbbls/d)
Crude oil transportation volumes (Mbbls/d)119 111 134 130 123 118 
Non-consolidated (5)
Gathering volumes (Bcf/d) 0.36 0.30 0.36 0.33 0.34 0.27 
Plant inlet natural gas volumes (Bcf/d) 0.36 0.30 0.36 0.33 0.34 0.27 
NGL production (Mbbls/d)28 21 30 28 27 15 
NGL equity sales (Mbbls/d)
(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.
8


Northeast G&P
(UNAUDITED)
20232024
(Dollars in millions)1st Qtr2nd Qtr3rd Qtr4th Qtr Year1st Qtr
Gathering, processing, transportation, and fractionation revenues$391 $431 $417 $411 $1,650 $411 
Other fee revenues (1)
32 27 27 28 114 34 
Commodity margins(1)12 11 
Operating and administrative costs (1)
(101)(101)(115)(107)(424)(108)
Other segment income (expenses) - net— — (1)(9)(10)(1)
Proportional Modified EBITDA of equity-method investments143 159 119 153 574 157 
Modified EBITDA470 515 454 477 1,916 504 
Adjustments— — 31 39 — 
Adjusted EBITDA$470 $515 $485 $485 $1,955 $504 
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 
Plant inlet natural gas volumes (Bcf/d)1.92 1.79 1.93 1.93 1.89 1.76 
NGL production (Mbbls/d)144 135 144 133 139 133 
NGL equity sales (Mbbls/d)— 
Non-consolidated (3)
Gathering volumes (Bcf/d)6.97 7.03 6.83 6.85 6.92 6.79 
Plant inlet natural gas volumes (Bcf/d)0.77 0.93 0.99 1.01 0.93 0.98 
NGL production (Mbbls/d)54 64 71 69 65 72 
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) Includes 100% of the volumes associated with operated equity-method investments, including the Laurel Mountain Midstream partnership and Blue Racer Midstream which we operate effective January 1, 2024; and the Bradford Supply Hub and the Marcellus South Supply Hub within the Appalachia Midstream Services partnership.

9


West
(UNAUDITED)
20232024
(Dollars in millions)1st Qtr2nd Qtr3rd Qtr4th QtrYear 1st Qtr
Net gathering, processing, transportation, storage, and fractionation revenues$382 $373 $371 $397 $1,523 $421 
Other fee revenues (1)
24 
Commodity margins(24)18 21 19 34 12 
Operating and administrative costs (1)
(115)(122)(122)(144)(503)(139)
Other segment income (expenses) - net23 (7)(4)(14)(2)— 
Proportional Modified EBITDA of equity-method investments
33 43 45 41 162 25 
Modified EBITDA304 312 315 307 1,238 327 
Adjustments(18)— — 16 (2)
Adjusted EBITDA$286 $312 $315 $323 $1,236 $328 
Statistics for Operated Assets
Gathering and Processing
Consolidated (2) (4)
Gathering volumes (Bcf/d) (3)
5.47 5.51 5.60 6.03 6.02 5.75 
Plant inlet natural gas volumes (Bcf/d)0.92 1.06 1.12 1.63 1.54 1.52 
NGL production (Mbbls/d)25 40 61 99 91 87 
NGL equity sales (Mbbls/d)16 22 14 14 
Non-consolidated (5)
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) (6)
161 217 244 250 218 220 
(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) Volumes associated with the Rocky Mountain Midstream (RMM) assets for 4th Qtr 2023 and Year 2023 are presented entirely in the Consolidated section. We acquired the remaining 50 percent of RMM on November 30, 2023.
(5) Includes 100% of the volumes associated with operated equity-method investment RMM through 3rd Qtr 2023.
(6) Includes 100% of the volumes associated with Overland Pass Pipeline Company (an operated equity-method investment), RMM (see Note 4 above) as well as volumes for our consolidated Bluestem pipeline.
10


Gas & NGL Marketing Services
(UNAUDITED)
20232024
(Dollars in millions)1st Qtr2nd Qtr3rd Qtr4th QtrYear 1st Qtr
Commodity margins$265 $(2)$38 $88 $389 $236 
Other fee revenues— — — — 
Net unrealized gain (loss) from derivative instruments333 94 24 208 659 (95)
Operating and administrative costs(32)(24)(19)(24)(99)(40)
Modified EBITDA567 68 43 272 950 101 
Adjustments(336)(84)(27)(203)(650)88 
Adjusted EBITDA$231 $(16)$16 $69 $300 $189 
Statistics
Product Sales Volumes
Natural Gas (Bcf/d)7.24 6.56 7.31 7.11 7.05 7.53 
NGLs (Mbbls/d)234 239 245 173 223 170 
11


Other
(UNAUDITED)
20232024
(Dollars in millions)1st Qtr2nd Qtr3rd Qtr4th Qtr Year1st Qtr
Service revenues$$$$$16 $
Net realized product sales120 97 127 145 489 113 
Net unrealized gain (loss) from derivative instruments(6)(11)(1)19 
Operating and administrative costs(48)(54)(58)(65)(225)(51)
Other segment income (expenses) - net10 28 
Net gain from Energy Transfer litigation judgment— — — 534 534 — 
Proportional Modified EBITDA of equity-method investments
— (1)(1)— (2)— 
Modified EBITDA74 41 81 645 841 76 
Adjustments11 (553)(535)(2)
Adjusted EBITDA$80 $52 $82 $92 $306 $74 
Statistics
Net Product Sales Volumes
Natural Gas (Bcf/d)0.26 0.29 0.31 0.30 0.29 0.28 
NGLs (Mbbls/d)10 
Crude Oil (Mbbls/d)
12


Capital Expenditures and Investments
(UNAUDITED)
20232024
(Dollars in millions)1st Qtr2nd Qtr3rd Qtr4th Qtr*Year*1st Qtr
Capital expenditures:
Transmission & Gulf of Mexico$205 $263 $382 $404 $1,254 $310 
Northeast G&P99 74 115 71 359 71 
West169 197 141 121 628 120 
Other72 76 52 75 275 43 
Total (1)
$545 $610 $690 $671 $2,516 $544 
Purchases of and contributions to equity-method investments:
Transmission & Gulf of Mexico$$18 $$$41 $27 
Northeast G&P31 12 52 99 25 
West— — — — 
Other— — — — — — 
Total$39 $30 $11 $61 $141 $52 
Summary:
Transmission & Gulf of Mexico$213 $281 $388 $413 $1,295 $337 
Northeast G&P130 86 119 123 458 96 
West169 197 142 121 629 120 
Other72 76 52 75 275 43 
Total$584 $640 $701 $732 $2,657 $596 
Capital investments:
Increases to property, plant, and equipment$484 $684 $792 $604 $2,564 $509 
Purchases of businesses, net of cash acquired1,056 (3)(29)544 1,568 1,851 
Purchases of and contributions to equity-method investments39 30 11 61 141 52 
Purchases of other long-term investments
Total$1,581 $712 $776 $1,210 $4,279 $2,414 
(1) Increases to property, plant, and equipment
$484 $684 $792 $604 $2,564 $509 
Changes in related accounts payable and accrued liabilities61 (74)(102)67 (48)35 
Capital expenditures$545 $610 $690 $671 $2,516 $544 
Contributions from noncontrolling interests$$15 $— $— $18 $26 
Contributions in aid of construction$11 $$$$28 $10 
Proceeds from sale of business$— $— $348 $(2)$346 $— 
* Certain amounts for the fourth quarter of 2023 were revised to agree to final reported amounts.
13


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.
14


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 Qtr
Income (loss) from continuing operations attributable to The Williams Companies, Inc. available to common stockholders$926 $547 $654 $1,146 $3,273 $631 
Income (loss) from continuing operations - diluted earnings (loss) per common share (1)
$.76 $.45 $.54 $.94 $2.68 $.52 
Adjustments:
Transmission & Gulf of Mexico
MountainWest acquisition and transition-related costs$13 $17 $$$42 $— 
Gulf Coast Storage acquisition and transition-related costs*— — — 10 
Gain on sale of business— — (130)(129)— 
Total Transmission & Gulf of Mexico adjustments13 17 (127)11 (86)10 
Northeast G&P
Accrual for loss contingency— — — 10 10 — 
Our share of accrual for loss contingency at Aux Sable Liquid
   Products LP
— — 31 (2)29 — 
Total Northeast G&P adjustments— — 31 39 — 
West
Cureton acquisition and transition-related costs*— — — 
Gain from contract settlement(18)— — — (18)— 
Impairment of assets held for sale— — — 10 10 — 
Total West adjustments(18)— — 16 (2)
Gas & NGL Marketing Services
Impact of volatility on NGL linefill transactions*
(3)10 (3)(6)
Net unrealized (gain) loss from derivative instruments
(333)(94)(24)(208)(659)94 
Total Gas & NGL Marketing Services adjustments(336)(84)(27)(203)(650)88 
Other
Net unrealized (gain) loss from derivative instruments
11 (19)(1)(2)
Net gain from Energy Transfer litigation judgment— — — (534)(534)— 
Total Other adjustments11 (553)(535)(2)
Adjustments included in Modified EBITDA(335)(56)(122)(721)(1,234)97 
Adjustments below Modified EBITDA
Gain on remeasurement of RMM investment— — — (30)(30)— 
Imputed interest expense on deferred consideration obligations*— — — — — 12 
Amortization of intangible assets from Sequent acquisition15 14 15 15 59 
15 14 15 (15)29 19 
Total adjustments(320)(42)(107)(736)(1,205)116 
Less tax effect for above items78 10 25 178 291 (28)
Adjustments for tax-related items (2)
— — (25)— (25)— 
Adjusted income from continuing operations available to common stockholders$684 $515 $547 $588 $2,334 $719 
Adjusted income from continuing operations - diluted earnings per common share (1)
$.56 $.42 $.45 $.48 $1.91 $.59 
Weighted-average shares - diluted (thousands)1,225,781 1,219,915 1,220,073 1,221,894 1,221,616 1,222,222 
(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).
15


Reconciliation of "Net Income (Loss)" to “Modified EBITDA” and Non-GAAP “Adjusted EBITDA”
(UNAUDITED)
20232024
(Dollars in millions)1st Qtr2nd Qtr3rd Qtr4th QtrYear1st Qtr
Net income (loss)$957 $494 $684 $1,168 $3,303 $662 
Provision (benefit) for income taxes284 175 176 370 1,005 193 
Interest expense294 306 314 322 1,236 349 
Equity (earnings) losses(147)(160)(127)(155)(589)(137)
Other investing (income) loss - net(8)(13)(24)(63)(108)(24)
Proportional Modified EBITDA of equity-method investments
229 249 215 246 939 228 
Depreciation and amortization expenses
506 515 521 529 2,071 548 
Accretion expense associated with asset retirement obligations for nonregulated operations
15 14 14 16 59 18 
(Income) loss from discontinued operations, net of tax— 87 97 — 
Modified EBITDA$2,130 $1,667 $1,774 $2,442 $8,013 $1,837 
Transmission & Gulf of Mexico$715 $731 $881 $741 $3,068 $829 
Northeast G&P470 515 454 477 1,916 504 
West304 312 315 307 1,238 327 
Gas & NGL Marketing Services567 68 43 272 950 101 
Other74 41 81 645 841 76 
Total Modified EBITDA$2,130 $1,667 $1,774 $2,442 $8,013 $1,837 
Adjustments (1):
Transmission & Gulf of Mexico$13 $17 $(127)$11 $(86)$10 
Northeast G&P— — 31 39 — 
West(18)— — 16 (2)
Gas & NGL Marketing Services(336)(84)(27)(203)(650)88 
Other11 (553)(535)(2)
Total Adjustments$(335)$(56)$(122)$(721)$(1,234)$97 
Adjusted EBITDA:
Transmission & Gulf of Mexico$728 $748 $754 $752 $2,982 $839 
Northeast G&P470 515 485 485 1,955 504 
West286 312 315 323 1,236 328 
Gas & NGL Marketing Services231 (16)16 69 300 189 
Other80 52 82 92 306 74 
Total Adjusted EBITDA$1,795 $1,611 $1,652 $1,721 $6,779 $1,934 
(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.

16


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 Qtr**Year**1st Qtr
Net cash provided (used) by operating activities$1,514 $1,377 $1,234 $1,813 $5,938 $1,234 
Exclude: Cash (provided) used by changes in:
Accounts receivable(1,269)(154)128 206 (1,089)(314)
Inventories, including write-downs(45)(19)14 (43)(38)
Other current assets and deferred charges(28)29 (65)(60)(9)
Accounts payable1,017 203 (148)(63)1,009 309 
Accrued and other current liabilities318 (246)42 (95)19 218 
Changes in current and noncurrent commodity derivative assets and liabilities(82)(37)(53)(28)(200)68 
Other, including changes in noncurrent assets and liabilities40 47 53 106 246 61 
Preferred dividends paid(1)— (1)(1)(3)(1)
Dividends and distributions paid to noncontrolling interests(54)(58)(62)(39)(213)(64)
Contributions from noncontrolling interests15 — — 18 26 
Adjustment to exclude litigation-related charges in discontinued operations— 115 125 — 
Adjustment to exclude net gain from Energy Transfer litigation judgment— — — (534)(534)— 
Additional Adjustments *— — — — — 17 
Available funds from operations$1,445 $1,215 $1,230 $1,323 $5,213 $1,507 
Common dividends paid$546 $545 $544 $544 $2,179 $579 
Coverage ratio:
Available funds from operations divided by Common dividends paid2.65 2.23 2.26 2.43 2.39 2.60 
* See detail on Reconciliation of Income (Loss) from Continuing Operations Attributable to The Williams Companies, Inc. to Non-GAAP Adjusted Income.
** Certain amounts for the fourth quarter of 2023 were revised to agree to final reported amounts, with no impact to previously reported AFFO for that period.
17


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$2,094 $2,219 $2,344 $2,373 $2,523 $2,673 
Provision (benefit) for income taxes670695 720735785 835
Interest expense1,380 1,390 
Equity (earnings) losses(535)(610)
Proportional Modified EBITDA of equity-method investments
895 990 
Depreciation and amortization expenses and accretion for asset retirement obligations associated with nonregulated operations
2,270 2,325 
Other(6)(8)
Modified EBITDA$6,768 $6,918 $7,068 $7,195 $7,395 $7,595 
EBITDA Adjustments32 
Adjusted EBITDA$6,800 $6,950 $7,100 $7,200 $7,400 $7,600 
Net income (loss) from continuing operations$2,094 $2,219 $2,344 $2,373 $2,523 $2,673 
Less: Net income (loss) attributable to noncontrolling interests and preferred dividends115 115 
Net income (loss) from continuing operations attributable to The Williams Companies, Inc. available to common stockholders$1,979 $2,104 $2,229 $2,258 $2,408 $2,558 
Adjustments:
Adjustments included in Modified EBITDA (1)
32 
Adjustments below Modified EBITDA (2)
29 18 
Allocation of adjustments to noncontrolling interests— — 
Total adjustments61 23 
Less tax effect for above items