U.S. natural gas infrastructure giant Williams Companies reported an 8% increase in third-quarter net income on Monday, supported by expanding pipeline operations, higher storage revenues, and growing demand for natural gas infrastructure serving LNG exports and power generation.
The Tulsa-based company posted net income of $699 million, or $0.56 per diluted share, for the three months ended September 30, compared with $646 million, or $0.53 per share, a year earlier.
Adjusted EBITDA increased 6% year over year to $2.04 billion, while adjusted net income climbed 10% to $663 million. Total quarterly revenues increased to $3.22 billion from $2.92 billion in the corresponding period of 2025.
Operating cash flow rose 5% to $1.51 billion, while available funds from operations increased 10% to $1.59 billion.
The improved financial performance reflected contributions from newly commissioned infrastructure, the acquisition of Momentum Midstream, higher natural gas storage revenues, and the company’s expanding power generation business. Reported net income also benefited from an $83 million gain on the sale of a Permian Basin gathering system.
Williams maintained its full-year 2026 adjusted EBITDA guidance of $8.3 billion to $8.5 billion, with management indicating that performance is tracking toward the upper half of that range.
For the first nine months of 2026, adjusted EBITDA reached $6.21 billion, approximately 9% higher than the same period last year.
The company also reiterated its expectation of achieving an adjusted EBITDA compound annual growth rate of more than 11% through 2030.
Williams continued expanding its natural gas infrastructure portfolio during the quarter, completing its acquisition of Momentum Midstream and strengthening its position in the Haynesville shale region.
The acquisition enhances the company’s ability to transport natural gas from one of the country’s key producing regions to LNG export facilities, industrial consumers, and power generation customers.
Williams also announced a 9.4 billion cubic foot expansion of its Clay Basin natural gas storage facility and advanced several projects on its Transco pipeline system.
These include the Southeast Supply Enhancement II project, designed to add more than 150 million cubic feet per day of transportation capacity, and an 84 million cubic feet per day capacity increase for the Garden Connector project.
Four additional pipeline projects entered service during the quarter, collectively expanding transportation capacity by 413 million cubic feet per day.
Meanwhile, Williams reported progress in its power infrastructure business, with the Socrates project brought fully online ahead of schedule. Its Plato North Power project remained on track to enter service by mid-November.
The developments reflect Williams’ strategy of expanding beyond traditional natural gas transportation into infrastructure supporting increasing electricity consumption.
Williams’ expansion program has also resulted in substantially higher capital investment.
Third-quarter capital investments, excluding acquisitions and certain reimbursable equipment costs, reached $2.73 billion, compared with $1.05 billion a year earlier.
The company maintained its full-year growth capital expenditure guidance of $7.3 billion to $7.9 billion.
Its quarter-end debt-to-adjusted EBITDA ratio stood at 3.80 times, compared with 3.73 times a year earlier, reflecting a modest increase in leverage alongside its investment program.
Williams’ growing pipeline, storage, and power infrastructure portfolio positions the company to benefit from increasing U.S. natural gas consumption, particularly as LNG export capacity expands and electricity demand creates additional opportunities for gas-fired generation.
The company expects its expanding project pipeline and recently completed acquisitions to support continued earnings growth through the end of the decade.
By Charles Kennedy for Oilprice.com
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Source: finance.yahoo.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
