Williams sees higher 2026 profit as pipeline projects drive growth

Feb 10 (Reuters) - U.S. pipeline operator Williams Companies WMB.N on Tuesday forecast 2026 profit above analysts' expectations as new pipeline and offshore projects drive growth and natural gas demand continues to rise.

Williams also increased its annual dividend by 5% to $2.10 per share for 2026. The company's shares rose 4.6% in premarket trading.

Rising electricity use from crypto-mining, households, businesses, and an AI-driven boom in data centers is set to boost natural gas demand this year, strengthening pipeline operators' expectations of sustained long-term need for gas infrastructure.

Williams completed 1.1 billion cubic feet per day (bcfpd) of pipeline transmission projects in 2025, while another 7.1 bcfpd of pipeline projects are currently in execution.

"We continue to believe WMB is among the best positioned in our coverage to benefit from growing natural gas and power demand with its large backlog of attractive growth projects anchored by Transco and Power Innovation projects," said RBC Capital Markets analyst Elvira Scotto.

The Tulsa, Oklahoma-based company expects its 2026 adjusted earnings between $2.20 and $2.38 per share, compared with the average of analysts' estimates of $2.28 per share, according to data compiled by LSEG.

It also expects 2026 growth capital spending of $6.1 billion to $6.7 billion, reflecting continued investment in pipeline expansions and power innovation projects.

However, the company's adjusted profit of 55 cents per share for the quarter ended December 31 missed analysts' estimates of 57 cents per share.