Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended June 30, 2026, for The Williams Companies, Inc. (Williams) and its wholly-owned subsidiaries, Transcontinental Gas Pipe Line Company, LLC (Transco) and Northwest Pipeline LLC (NWP). Williams operates as a large accelerated filer, providing natural gas transportation, storage, gathering, processing, and marketing services across the United States. The company is organized into four reportable segments: Transmission, Power & Gulf; Northeast G&P; West; and Gas & NGL Marketing Services.
Key Financial Metrics (Six Months Ended June 30, 2026)
| Metric | 2026 (YTD) | 2025 (YTD) |
|---|---|---|
| Total Revenues | $6,083 million | $5,829 million |
| Net Income (Attributable to Williams) | $1,692 million | $1,237 million |
| Diluted EPS | $1.38 | $1.01 |
| Operating Cash Flow | $2,979 million | $2,883 million |
| Capital Expenditures | $3,193 million | $1,984 million |
| Total Debt (Long-term + Current) | $30,793 million | $29,361 million |
| Cash and Cash Equivalents | $203 million | $63 million |
Material Changes vs. Prior Period
- Revenue Growth: Total revenues increased by $254 million (4.4%) year-over-year, driven by higher service revenues from expansion projects in the Transmission, Power & Gulf and West segments, and increased volumes in the Northeast G&P segment.
- Profitability: Net income attributable to Williams increased by $455 million (37%), primarily due to higher operating income and significant gains from asset sales.
- Asset Divestitures: The company recognized a $194 million gain on the sale of South Mansfield upstream interests and a $127 million gain from the sale of an equity-method investment in Brazos Permian II, LLC.
- Capital Spending: Capital expenditures rose significantly to $3.193 billion, reflecting accelerated investment in growth projects, including Power Innovation initiatives and pipeline expansions.
- Dividend Increase: The quarterly cash dividend was increased to $0.525 per share from $0.500 per share in the prior year.
Guidance, Outlook, and Risks
- 2026 Capital Expenditure Guidance: Williams expects growth capital and investment expenditures for 2026 to range from $7.3 billion to $7.9 billion, excluding acquisitions and certain long-lead time equipment for power innovation projects.
- Recent Developments:
- Momentum Acquisition: In July 2026, Williams agreed to acquire M6 Midstream LLC (Momentum) for up to $5.5 billion, adding 6 Bcf/d of gathering and 4 Bcf/d of pipeline capacity in the Haynesville Shale.
- Power Innovation JV: Sold a 49% noncontrolling interest in five power innovation projects for $5.34 billion of committed capital, with $3.75 billion received in July 2026.
- Key Risks:
- Regulatory & Permitting: Delays or denials in permits for expansion projects (e.g., Gillis West, Southeast Supply Enhancement) could impact in-service dates.
- Commodity Price Volatility: Exposure to natural gas and NGL price fluctuations, particularly in marketing and upstream operations.
- Interest Rates & Inflation: Rising rates and inflation could increase borrowing costs and capital project expenses.
- Environmental Compliance: Ongoing costs related to the Washington State Climate Commitment Act and EPA regulations.
Investor Verification Checklist
- Divestiture Gains: Verify the sustainability of earnings given the $321 million in gains from asset sales (South Mansfield and Brazos Permian II) included in the current period.
- Capital Execution: Monitor the ability to execute the $7.3–$7.9 billion capital plan amidst potential supply chain disruptions and inflation.
- Debt Maturities: Review the $2.2 billion in long-term debt due within one year and the company's refinancing strategy.
- Regulatory Approvals: Track FERC approvals for major expansion projects like Southeast Supply Enhancement and Northeast Supply Enhancement, which are critical for future revenue growth.
- Acquisition Integration: Assess the timeline and integration risks associated with the pending $5.5 billion Momentum acquisition.