Williams Companies 8-K
PositiveEarningsGuidance raised
Planned Momentum Midstream acquisition and two Haynesville pipeline expansions target growing LNG and power demand.
Filed 2026-08-03 16:18 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q2 2026 results, higher FY2026 Adjusted EBITDA guidance and a strategic acquisition. Williams agreed to acquire Momentum Midstream for up to $5.5B, adding Haynesville assets and announcing two pipeline expansions aimed at growing LNG and power demand. It raised the midpoint of its 2026 Adjusted EBITDA guidance by $200M to $8.4B.
Key Figures
| Metric | Q2 2026 | Q2 2025 | Y/Y |
|---|---|---|---|
| Revenue | $3.05B | $2.78B | +9.8% |
| Operating income | $1.18B | $945M | +25.1% |
| Net income available to common stockholders | $827M | $546M | +51.5% |
| Adjusted net income (non-GAAP) | $614M | $566M | +8.5% |
| Diluted EPS | $0.68 | $0.45 | +51.1% |
| Adjusted diluted EPS (non-GAAP) | $0.50 | $0.46 | +8.7% |
| Cash flow from operations | $1.38B | $1.45B | -5.1% |
| Adjusted EBITDA (non-GAAP) | $1.92B | $1.81B | +6.2% |
| Available funds from operations (non-GAAP) | $1.45B | $1.32B | +10.1% |
| Dividend coverage ratio (AFFO basis) | 2.26x | 2.16x | +4.6% |
- YTD net income available to common stockholders was $1.69B vs $1.24B (+36.8%); Adjusted EBITDA was $4.18B vs $3.80B (+10.0%), AFFO was $3.22B vs $2.76B (+16.6%), and cash flow from operations was $2.98B vs $2.88B (+3.3%). Quarterly operating cash flow fell as working capital was affected by Transco rate-refund payments, partly offset by higher operating results.
- Higher service revenues, gas marketing margins and equity earnings supported results; higher operating and administrative expenses partly offset the improvement. Quarter-end debt-to-Adjusted EBITDA was 3.67x vs 3.80x a year earlier.
- Momentum consideration is up to $5.5B: approximately $3.5B in cash and debt consideration and roughly $2B in Williams equity. The assets include more than 4,000 miles of pipe, over 1 million dedicated acres and gathering capacity of 6 Bcf/d; the deal is valued at approximately 8.5x projected 2027 EBITDA and is expected to be accretive to AFFO per share and EPS. The $1.5B Delta Access project is planned for 2.25 Bcf/d initial capacity and Q1 2029 service; the Shelby Trough Connector is planned for 750 MMcf/d initial capacity, expandable to 1.5 Bcf/d, and Q2 2028 service. Closing is subject to customary conditions, including HSR clearance.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Adjusted EBITDA (non-GAAP) | FY2026 | $8.3B-$8.5B | $8.2B midpoint | Raised |
| Growth capital expenditures | FY2026 | $7.3B-$7.9B | — | — |
| Net income from continuing operations (GAAP, midpoint) | FY2026 | $3.355B | — | — |
| Adjusted diluted EPS (non-GAAP, midpoint) | FY2026 | $2.35 | — | — |
| Available funds from operations (non-GAAP, midpoint) | FY2026 | $6.375B | — | — |
| AFFO per common share (midpoint) | FY2026 | $5.15 | — | — |
| Common dividends (midpoint) | FY2026 | $2.585B | — | — |
| Dividend coverage ratio (AFFO basis, midpoint) | FY2026 | 2.47x | — | — |
| Debt-to-Adjusted EBITDA ratio (midpoint; pro forma for Momentum) | FY2026 | ≈3.75x | — | — |
Investor Takeaways
- Watch for HSR clearance and completion of the Momentum acquisition; closing and integration will affect the expected accretion.
- Track the Shelby Trough Connector and Delta Access against their planned service dates and capacity targets.
- Compare FY2026 Adjusted EBITDA and growth capital spending with the stated guidance ranges.
The summary is written by an AI model reading the filing.
Model 005 · prompt 01d34d48e3