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    WMB
    Earnings call· Jun 2026(Q2 FY26)

    WILLIAMS COMPANIES Q2 FY26 earnings call WMB

    Aug 4, 2026 Source

    Executive summary

    The Williams Companies Q2 FY26 — Raised Guidance and Strategic Acquisitions Drive Growth

    The Williams Companies delivered a strong Q2 FY26, marked by the successful in-service of Socrates Phase 1 and strategic moves to accelerate future growth. The acquisition of Momentum Midstream and a significant Power Innovation financing joint venture with Blackstone have enabled the company to raise its full-year EBITDA guidance and long-term growth targets. Management is focused on capital recycling and disciplined execution to support continued expansion in pipeline and power infrastructure.

    Highlights

    5

    • Socrates Phase 1 achieved in-service on time and within budget, delivering 200 megawatts of power.

    • Full-year 2026 Adjusted EBITDA guidance raised by $200 million at the midpoint to $8.3 billion-$8.5 billion.

    • Long-term EBITDA growth rate target increased to 11%+ CAGR through 2030, up from 10%+.

    • Strategic acquisition of Momentum Midstream for $5.5 billion, expanding Haynesville footprint and unlocking new projects.

    • Power Innovation financing joint venture with Blackstone provides $5.34 billion of committed capital at an attractive 6.35% cost of equity.

    Concerns

    4

    • Leverage tightness

    • Weak gas prices

    • Hurricane season

    • Rainier weather impacting construction

    Guidance & targets

    5
    CategoryTargetConfidence
    Full-year 2026 Adjusted EBITDA
    $8.3 billion to $8.5 billion
    high materiality
    High
    Long-term EBITDA growth rate target
    11%+ compound annual growth
    high materiality
    High
    Long-term EPS growth rate target
    11%+ CAGR
    high materiality
    High
    Year-end 2026 Leverage
    around 3.9x
    medium materiality
    High
    Growth CapEx guidance
    updated
    medium materiality
    High

    Segment performance

    4
    SegmentRevenueYoYQoQMargin
    Transmission and Gulf
    Overall segment performance led by Gulf businesses and natural gas storage, with contributions from expansion projects.
    Gulf businesses growth: 23%Natural gas storage growth: 23%Growth from expansion projects at Transco and Mountain West Pipeline
    		—6%—$56 million improvement
    Northeast G&P
    Strong growth driven by rich gas areas, with potential for further upside.
    Growth primarily due to rich gas areas
    		—8%—$39 million improvement
    West
    Performance driven by strategic investments in the Haynesville basin.
    Led by Haynesville investments, including Louisiana Energy Gateway Pipeline
    		—5%—$18 million improvement
    Other (includes upstream)
    Primarily due to the divestiture of upstream Haynesville assets, which closed in January 2026.
    		———down $14 million

    Operational metrics

    8
    Adjusted EBITDA
    $1.92 billionup 6% over Q2 FY25
    Q2 FY26

    Continued strong start to 2026.

    Adjusted EBITDA
    up 10%from $1.8 billion to $1.92 billion
    YTD FY26

    Year-to-date performance.

    Power Innovation JV Committed Capital
    $5.34 billion
    near-term

    Provided by financing joint venture with Blackstone.

    Power Innovation Project Return Enhancement
    56%
    primary term of contracts

    Effect of the Power Innovation JV on the 5 projects currently underway.

    Leverage Capacity
    in excess of $2 billion
    near-term

    Additional capacity versus internal 4x leveraged ceiling, based on 3.75x full-year run rate leverage.

    Socrates Phase 1 Power Delivery
    200 megawatts
    current

    Achieved in-service in under 18 months since commercialization, on time and within budget.

    Transco Power Express Expansion
    800 million cubic feet per day
    future

    Upsized expansion to serve load growth, power demand, and data center growth in Virginia.

    Line 200 Transmission Pipeline
    3.1 Bcf per day
    current

    Pipeline from Gillis to serve the Woodside LNG terminal, with an extension to serve Lake Charles power demand.

    Industry KPIs

    6
    MetricValueDetails
    Pipeline throughput storage6 Bcf per dayBcf/d
    Realized price differentialpretty weakdirectional
    Sanctioned expansion backlog750 million cubic feet per dayMMcf/d
    Basin level production volumeover 10 Bcf per dayBcf/d
    Take or pay contract structureover 4 Bcf per dayBcf/d
    Weather event volume earnings impactcaused some challengesdirectional

    Deals & partnerships

    2
    Blackstone, Apollo, KRPower Innovation financing joint venture$5.34 billion committed capital

    Creates a flexible source of low-cost equity to fund near-term power innovation projects while preserving Williams' operatorship and upside participation.

    Momentum MidstreamStrategic bolt-on acquisition$5.5 billion ($3.5 billion in cash and debt, $2 billion of equity)

    Complements Haynesville gathering and Transco Gulf Coast pipeline footprint, strengthening position in a key natural gas growth basin tied to LNG exports. Unlocks new expansion projects like Shelby Connector and Delta Access.

    Capital programs

    6
    Socrates Phase 1completed

    Benefit: 200 megawatts

    Achieved in-service on time and within budget.

    Socrates next phaseunderway

    Remaining on track for delivery.

    Shelby Connectorannounced

    Benefit: 750 million cubic feet per day (expandable to 1.5 billion cubic feet per day)

    Large diameter pipeline expansion from Momentum gathering system connecting into Williams Louisiana Energy Gateway (LEG) system, with initial customer committed capacity.

    Delta Access Pipelineannounced

    Benefit: 2.25 Bcf per day (expandable to 3.5 Bcf per day)

    Large-scale transmission project from combined Momentum and Williams systems to LNG and power customers along the Transco corridor, fully contracted.

    Southeast Supply Enhancement (SESE)under construction

    Progressing forward and trending on time and on budget.

    Northeast Supply Enhancement (NESE)under construction
    Start: end of this year (compression)

    Initial construction kicking up, with the real work for compression starting end of year and offshore build in 2027.

    Risks & headwinds

    4
    Leverage tightness2026-2027

    primarily an issue for '26 and '27

    Mitigation: preserving near-term investment capacity; additional capacity from Power Innovation JV; internal 4x leveraged ceiling is not a hard and fast number.

    Weak gas pricessummer months

    pretty weak gas prices

    Mitigation: Not explicitly stated, but management acknowledges it as a factor for guidance conservatism.

    Hurricane seasonearly on here

    impact our business

    Mitigation: Not explicitly stated, but management considers it a factor for guidance conservatism.

    Rainier weather impacting constructionQ2 FY26

    caused some challenges

    Mitigation: Teams navigated it well, no impacts on budget or schedule at this point.

    What to watch in Q3 FY26

    5

    Socrates next phase in-service

    before year-end
    Currentunderway
    Targetin-service

    Why it matters

    Demonstrates continued execution on key power innovation projects and validates the business model.

    We remain on track to deliver the next phase of soccer tees before year-end with many more projects to come thereafter.

    Q&A highlights

    5

    Is the 11%+ EBITDA CAGR target conservative, and can you quantify operational/cost synergies from Momentum? Also, clarify the 8.5x acquisition multiple.

    Management confirmed the 11%+ CAGR is conservative and they are well-positioned to exceed it, as it primarily reflects existing contracted business and excludes additional power/pipeline projects. They did not quantify synergies but highlighted significant operational synergies and growth opportunities in the Haynesville. The 8.5x multiple is based on Momentum's consolidated EBITDA, which would be approximately 9x after non-controlling interests, and is expected to compress with growth and synergies.

    “Again, this 11% plus -- the 11% that we're discussing really serves as an update to the 8% we gave back in February and the 9% we gave in May. And specifically, we're really talking about a number here that continues to be centered on our existing contracted book of business. And so we're excluding the commercialization of any additional power or pipes projects...”

    asked by Praneeth Satish · answered by John Porter

    2 min read5 chapters

    Detailed Narrative

    01

    Socrates Project Success

    Williams achieved in-service for Phase 1 of its Socrates Power Innovation project, delivering 200 megawatts of utility-scale power to a customer in under 18 months since commercialization, on time and within budget. This success validates the company's ability to deliver large-scale power projects efficiently. The team is on track to deliver the next phase of Socrates before year-end, with learnings from Phase 1 being applied to optimize future projects and potentially accelerate timelines.

    02

    Momentum Midstream Acquisition

    The company announced the strategic acquisition of Momentum Midstream for $5.5 billion, funded by $3.5 billion in cash and debt and $2 billion in equity. This bolt-on acquisition expands Williams' Haynesville footprint, adding roughly 6 Bcf per day of gathering capacity and over 4 Bcf per day of take-or-pay pipeline capacity. The acquisition is expected to be accretive at an attractive multiple of approximately 8.5x consolidated EBITDA, which is anticipated to compress over time⏳ with growth and synergies, solidifying Williams' position in a critical natural gas growth basin.

    03

    Power Innovation Financing Joint Venture

    Williams formed a financing joint venture with Blackstone, Apollo, and KR for its Power Innovation business. This JV provides $5.34 billion of committed capital, including $4.4 billion for 49% of expected total growth capital expenditures and $900 million of additional consideration to Williams. The capital comes at an attractive capped 6.35% cost of equity, significantly enhancing project returns by approximately 56% on invested capital over the primary term of underlying contracts. This structure creates immediate balance sheet capacity for continued growth in the power innovation business.

    04

    Transco Expansion Projects

    Williams secured customer agreements for the Leidy Access and Garden Connector projects on Transco and further upsized the Transco Power Express project to an 800 million cubic feet per day expansion. An extension of Line 200 was commercialized to serve growing power demand in Lake Charles, Louisiana. Alongside the Momentum acquisition, two new strategic projects were announced: the Shelby Connector (750 MMcf/d, expandable to 1.5 Bcf/d, in-service H1 2028) and the Delta Access Pipeline (2.25 Bcf/d, expandable to 3.5 Bcf/d, in-service early 2029), both fully contracted and connecting Haynesville supply to Gulf Coast LNG and power demand.

    05

    Enhanced Long-term Growth Outlook

    The company raised its long-term EBITDA and EPS compound annual growth rate target to 11%+ through 2030, up from the previously announced 10%+. This increase is driven by the Momentum acquisition and other recently announced projects. Management expressed confidence in exceeding this new target, supported by a strong backlog of projects, new opportunities, and value creation from the legacy business, while maintaining financial flexibility and balance sheet capacity.

    AI-generated summary of the company’s earnings call. Not investment advice.