Williams Q3 Adjusted EBITDA Rises 6% on Momentum and Pipeline Growth

The Williams Companies Inc. (NYSE: WMB) reported record third-quarter adjusted EBITDA of $2.04 billion, up 6% from a year earlier, as transmission expansions, higher Northeast gathering volumes and the Momentum Midstream acquisition lifted results. The natural gas infrastructure company said it is tracking toward the upper half of its 2026 adjusted EBITDA guidance and presented an updated target of more than 11% annual adjusted EBITDA growth through 2030.

Net income from continuing operations attributable to Williams common stockholders rose to $699 million, or $0.56 per diluted share, from $646 million, or $0.53 per share, in the third quarter of 2025. Adjusted diluted earnings increased 10% to $0.54 per share.

Available funds from operations, a non-GAAP measure, advanced 10% to $1.59 billion. The AFFO-based dividend coverage ratio was 2.42 times, compared with 2.37 times a year earlier. Net cash provided by operating activities totaled $1.51 billion.

For the first nine months of 2026, adjusted EBITDA increased 9% to $6.21 billion, adjusted diluted earnings rose 14% to $1.77 per share, and AFFO climbed 14% to $4.81 billion.

Transmission, Northeast volumes and Momentum drive growth

Transmission, Power & Gulf adjusted EBITDA increased to $1.03 billion from $947 million a year earlier. Williams attributed the improvement to the first phase of its Socrates power project entering service, higher storage revenue and transmission expansions.

Northeast Gathering & Processing adjusted EBITDA rose to $542 million from $505 million, supported by higher volumes at Ohio Valley Midstream and Marcellus South, along with higher volumes and rates in Susquehanna.

West adjusted EBITDA increased to $401 million from $367 million. The Momentum acquisition, the start-up of the Louisiana Energy Gateway project and higher Haynesville volumes outweighed lower Eagle Ford and DJ Basin volumes and the sale of Permian assets.

Momentum, which Williams closed ahead of schedule, adds 6 billion cubic feet per day of gathering capacity and 4.05 Bcf/d of take-or-pay capacity. The company valued the transaction at $5.5 billion, comprising $3.5 billion of cash and debt and $2 billion of equity. Approximately 46% of the acquired business’s EBITDA comes from take-or-pay assets, according to the presentation.

Gas and NGL Marketing Services adjusted EBITDA declined to $4 million from $11 million because of unfavorable realized derivatives in gas marketing storage. Other adjusted EBITDA fell to $62 million from $90 million, primarily reflecting the divestiture of Haynesville upstream assets.

2026 outlook and capital program

Williams retained the 2026 guidance ranges last updated in August. It expects adjusted EBITDA of $8.3 billion to $8.5 billion, adjusted diluted earnings of $2.30 to $2.40 per share and AFFO of $6.31 billion to $6.44 billion. AFFO per share is projected at $5.10 to $5.20, with dividend coverage of 2.47 times at the guidance midpoint.

The company expects debt-to-adjusted EBITDA of approximately 3.75 times on a full-year acquisition-normalized basis. The ratio stood at 3.80 times at the end of the third quarter, compared with 3.73 times a year earlier. Williams reported $4.75 billion of credit facilities and said it had issued $5.5 billion of long-term debt during 2026.

Growth capital expenditure guidance is $7.3 billion to $7.9 billion, excluding Momentum and reimbursable long-lead equipment. Maintenance capital spending is expected to range from $850 million to $950 million. Williams also plans annual dividend growth of 5%.

The company completed four pipeline projects during the quarter, adding a combined 413 million cubic feet per day of capacity. It also announced the Southeast Supply Enhancement II project with more than 150 MMcf/d of committed capacity, commercialized a 9.4 billion-cubic-foot expansion of the Clay Basin storage facility and increased the planned Garden Connector capacity to 144 MMcf/d.

Williams said Socrates is on track to be fully in service by mid-November. Its broader portfolio includes about $6.7 billion of spending on 13 transmission expansions under development, with fully contracted year-end delivery capacity expected to exceed 44 Bcf/d by 2030.

Power projects represent another major component of the growth plan. Williams is investing about $9.6 billion in projects designed to provide gas supply, pipelines and power generation for data centers. A joint venture with Blackstone Credit & Insurance is expected to provide 59% of project capital, excluding capitalized interest, in exchange for a 49% ownership interest. The commitment includes $4.4 billion toward growth capital and approximately $900 million of additional consideration to Williams.

Execution and regulatory risks

Williams’ growth targets depend on completing a large portfolio of transmission, gathering, storage and power projects on schedule and within budget. Some disclosed project capacities reflect firm customer commitments but remain subject to ongoing negotiations, potential additional commitments and customer exit rights.

The company also identified permitting and regulatory approvals, construction costs and labor availability, commodity supply and demand, customer and counterparty credit, integration of acquired assets, financing conditions and interest rates as factors that could affect results. Operational interruptions, extreme weather, cybersecurity incidents, tariffs on construction materials and changes in environmental or energy policy also remain risks to the outlook.