The Williams Companies, Inc. WMB expects to sign one or two more power projects by year-end, potentially with longer contracts and phased expansions. Those plans dominated its third-quarter 2026 earnings call.
Management also faced questions about financing, project permitting and how quickly its expanding backlog can contribute to earnings. The company maintained its full-year outlook and emphasized execution across pipelines and storage.
Williams Prepares the Next Power Projects
President and CEO Chad Zamarin said that upcoming power agreements should diversify its hyperscaler customers and extend contract duration. Some projects could specify larger, multistage development plans at signing.
Chief operating officer Larry Larsen said that Socrates' Plato South facility is performing as expected. The final Plato North phase is scheduled to begin service in November.
Asked by TD Cowen whether one agreement could slip into 2027, Zamarin mentioned that Williams waits for executed contracts, secured sites and permit readiness before announcing projects.
WMB Holds Its 2026 Financial Outlook
Chief financial officer John Porter said that existing businesses are tracking toward the upper half of 2026 adjusted EBITDA guidance of $8.3 billion to $8.5 billion. Growth capital spending guidance remains $7.3 billion to $7.9 billion.
Quarterly adjusted EBITDA rose 6% to $2.039 billion. Adjusted EPS of $0.54 missed the $0.55 Zacks Consensus Estimate, whereas revenues of $3.22 billion topped the $3.19 billion estimate.
Williams Companies, Inc. (The) Price, Consensus and EPS Surprise
Williams Companies, Inc. (The) price-consensus-eps-surprise-chart | Williams Companies, Inc. (The) Quote
Porter cited new power revenues, pipeline expansions and gathering volumes as growth drivers. Seasonal weakness in gas marketing and an upstream divestiture partly offset those gains.
Williams Balances Expansion and Leverage
Porter expects year-end leverage around 3.75 times, excluding additional power projects. That leaves roughly $2 billion of financial capacity under the company's internal four-times ceiling.
A Citi analyst pressed management on a compensation framework incorporating a 16% EBITDA growth level through 2030. Porter emphasized organic pipeline and power opportunities, while retaining the stated target of more than 11% compound annual adjusted EBITDA growth through 2030.
On financing, Porter told CIBC that joint ventures remain an option, although costs have shifted since Williams' Blackstone transaction. Project scale and timing will determine capital choices.
WMB Sees More Room on Transco
During Q&A, Larsen told Wells Fargo that Southeast Supply Enhancement II has 150 million cubic feet per day contracted. Its prospective scope extends to 390 million, subject to another customer agreement.
He outlined a four-to-six-times build-multiple range dependent on finalized capital costs. Four other expansions entered service, adding 413 million cubic feet per day of contracted capacity.
Storage remains another growth channel. Larsen pointed to stronger storage rates and additional Gulf Coast prospects after Williams commercialized a 9.4 billion-cubic-foot Clay Basin expansion.
Williams Finds Early Momentum Synergies
Executive vice president of Corporate Strategic Development Robert Wingo said that the September Momentum Midstream acquisition is integrating without surprises, with synergies emerging ahead of plan.
Zamarin mentioned that the original assumptions placed synergy capture in 2028. Larsen described opportunities to move more Haynesville gas into Gulf Coast LNG and power markets through existing infrastructure and expansions.
Wingo also described combining Williams' Woodside LNG capacity with gathering and compression services. Zamarin said that the goal is fixed-margin contracts rather than substantial international price exposure.
WMB Addresses Permit and Equipment Risks
A Goldman Sachs analyst asked about Northeast Supply Enhancement following a court remand of its New Jersey certificate. Zamarin mentioned that the decision could jeopardize service by next winter without materially affecting financial forecasts.
Citi sought clarity on $5.9 billion in power-equipment commitments. Porter said that cancellation terms and customer backstops mitigate risks, cautioning against treating that amount as a direct proxy for the power backlog.
Asked by Jefferies about gas lateral easements, Zamarin stated that pipeline access has not blocked project development.
Williams Keeps Its Focus on Contracted Returns
Zamarin's message centered on delivering contracted projects while adding new power and pipeline opportunities. He emphasized preserving fee-based, take-or-pay returns as designs become more efficient.
Porter, meanwhile, characterized 2026 and 2027 as tighter leverage years, with greater balance-sheet capacity expected as earnings grow from 2028.
WMB Zacks Rank and Style Scores
WMB carries a Zacks Rank #3 (Hold), a neutral near-term assessment. Its Momentum Score of B is favorable relative to its Value Score of D and Growth Score of D, which point to weaker characteristics in those styles. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Its VGM Score of D reflects a less attractive combined profile than the A or B grades favored by Zacks' framework. The Zacks Rank may change as earnings estimates are revised following the third-quarter results.
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Williams Companies, Inc. (The) (WMB): Free Stock Analysis Report
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