The Williams Companies, Inc. (WMB) Earnings

Management highlights

### Power Innovation Progress - Phase 1 of the Socrates utility-scale power project was brought in-service on time and under budget, delivering 200 megawatts of power 18 months after commercialization; Phase 2 remains on track for in-service before the end of 2026. - A $5.34 billion committed capital power innovation financing joint venture was formed with Blackstone (with participation from Apollo and KKR): Blackstone provides 49% of total expected growth capex ($4.4 billion) plus $900 million in additional consideration at a capped 6.35% cost of equity, Williams retains operatorship, decision-making control and upside participation, and a buyout option beginning in 2033. The JV improves the invested capital-to-cash flow ratio for the 5 active power projects by ~56% and frees up immediate balance sheet capacity for future growth. ### Pipeline and Midstream Strategic Milestones - Signed customer agreements for the Lighty Access and Garden Connector Transco expansion projects serving demand in Pennsylvania and New Jersey; upsized the Transco Power Express project to 800 million cubic feet per day (MMcf/d) to serve demand growth in Virginia; commercialized an extension of Line 200 (the 3.1 Bcf/d pipeline serving the Woodside LNG terminal) adding a new lateral for growing Lake Charles, Louisiana power demand. - Completed the strategic bolt-on acquisition of Momentum Midstream for $5.5 billion (funded with $3.5 billion cash/debt and $2 billion equity), expanding Williams' Haynesville Basin footprint with 6 Bcf/d of gathering capacity and over 4 Bcf/d of take-or-pay pipeline capacity, solidifying Williams' position as the largest Haynesville gas gatherer connected to the Transco Gulf Coast system. The acquisition is immediately accretive at an 8.5x current run-rate EBITDA multiple, which is expected to compress as growth and synergies are realized. - Announced two new strategic expansion projects tied to the Momentum acquisition: 1) Shelby Connector, an initial 750 MMcf/d expansion (expandable to 1.5 Bcf/d) expected in-service H1 2028, connecting the fast-growing Shelby Trough to the Louisiana Energy Gateway system; 2) Delta Access, a 2.25 Bcf/d fully contracted transmission project (expandable to 3.5 Bcf/d) expected in-service early 2029, serving LNG and power customers along the Transco Gulf Coast corridor. ### Strategic Positioning - The Haynesville Basin is positioned as the most critical U.S. natural gas supply basin to meet growing LNG export and domestic Gulf Coast demand; Haynesville production is expected to grow by over 10 Bcf/d over the next decade, with LNG exports expected to double from current levels.

Guidance

- Full-year 2026 adjusted EBITDA guidance is raised to $8.3 billion to $8.5 billion, a $200 million increase at the midpoint, driven by better than expected base business performance and incremental accretion from the Momentum Midstream acquisition. Revised guidance for EPS and AFFO is also provided reflecting the power innovation JV and Momentum transaction. - Full-year 2026 growth capex guidance is updated to reflect initial spending on the newly announced Shelby Connector and Delta Access projects. - Expected year-end 2026 leverage is ~3.9x debt to EBITDA (including only 3 months of Momentum contributions); on a full-year run-rate basis leverage is ~3.75x, preserving investment capacity for additional near-term projects. - Management increased the long-term (2025-2030) target EBITDA and EPS compound annual growth rate (CAGR) to 11%+, up from the prior 10%+ target. The new 11%+ target is based only on the current contracted backlog of projects, excluding potential additional future power or pipeline projects, so management expects to exceed this target.

Segment performance

In Q2 2026, Williams reported total EBITDA of $1.92 billion, a 6% increase compared to Q2 2025. Year-to-date 2026 EBITDA is up 10% from the same period in 2025. Breakdown by segment: 1. Transmission & Gulf: Segment EBITDA increased by $56 million (6%) year-over-year, with Gulf businesses growing 23% driven by recent expansion projects. Natural gas storage also grew 23%, and expansion projects at Transco and Mountain West Pipeline contributed additional growth. 2. Northeast GMP: Segment EBITDA grew $39 million (8%) year-over-year, primarily driven by growth in rich gas areas. 3. West: Segment EBITDA grew $18 million (5%) year-over-year, led by Haynesville investments including the Louisiana Energy Gateway pipeline. 4. CEQIP Marketing: Segment performance was slightly better than the prior year, despite Q2 being a seasonally lower opportunity period for this business. 5. Other (includes upstream businesses): Segment EBITDA decreased $14 million year-over-year, primarily due to the divestiture of upstream Haynesville assets completed in January 2026.

Risks & headwinds

- Management retains conservatism in modeling Northeast GMP growth, even amid recent outperformance, leaving potential for upside but reflecting ongoing uncertainty near-term. - Hurricane season and continued weak natural gas prices through summer 2026 are cited as near-term uncertainties that could impact full-year 2026 results relative to guidance. - Project execution relies on coordinating with third-party equipment manufacturers and contractors, though management notes performance has stayed on schedule and budget to date. - Near-term balance sheet leverage is expected to be tighter in 2026 and 2027 before large expected earnings growth kicks in from 2028 onward.

Analyst Q&A

• Q: The 11% CAGR target is 100 bps above the prior target, but adding Momentum and Delta Access alone appears to add 200 bps. Is the 11% target intentionally conservative? /

  A: The 11% target only reflects growth from the current contracted book of business, and explicitly excludes any future additional power or pipeline projects from the large existing backlog. Management also retains intentional conservatism in modeling growth for the large $2 billion+ Northeast GMP segment, so management confirms it expects to exceed the 11%+ target. "Plus" is meant to signal upside from these uncounted opportunities.

• Q: Is working with one hyperscaler for behind-the-meter power projects exclusive, or can you pursue deals with other hyperscalers? What is the outlook for large new Transco projects beyond what was announced today? /

  A: Williams does not require exclusivity and actively seeks to provide infrastructure solutions for all customers, so contracts with one do not preclude deals with others. There is a large backlog of organic Transco projects across the Mid-Atlantic and Southeast, driven by growing power demand; large projects are mostly targeted for 2030+ and commercialization depends on customer demand pacing, but the backlog remains robust.

• Q: How does the joint venture with Blackstone structure funding for future behind-the-meter power projects, and can the existing JV be expanded for new projects? /

  A: The current framework leaves Williams with over $2 billion of available capacity to fund near-term projects through the end of 2027, with additional capacity opening up as earnings grow from 2028 onward. The competitive, time-intensive diligence and structuring process for the Blackstone JV created a reusable framework that will allow much faster execution for future partnerships if needed. Future projects could use separate unique partnership structures if that delivers better pricing, and there are multiple interested potential partners available.

• Q: The 8.5x acquisition multiple for Momentum is a current run rate multiple. Does it include future expansion projects, and how does the deal impact your long-term growth rate? /

  A: The 8.5x multiple only reflects Momentum's current run-rate EBITDA, not future growth from the attached expansion projects. All future high-return expansion projects will further compress the multiple over time. The acquisition is explicitly additive to Williams' 11%+ long-term CAGR target and is not dilutive, as Williams only pursues acquisitions that meet or exceed its overall growth target.