# Williams (WMB)

Sector: Natural gas pipelines

| Field | Value |
|---|---|
| Price | $66.45 |
| Market cap | $81B |
| Intrinsic value source | Analysts |
| Data as of | 2026-11-10 |
| Next earnings | 2027-02-09 (estimate) |

Analysts: Bullish

Picks: Research only

Discount category: Close to intrinsic value

## In short

Williams trades close to its intrinsic value because investors pay for its gas pipelines and new power projects, and growth in line with its plan through 2030 can keep it there.

## Themes and gap

- Themes: Power and energy (power-energy), AI supplier (ai-supplier)
- Gap type: Can close (closable)
- Why: The Q4 2026 report with the 2027 guidance, expected in February 2027, shows whether new pipelines and power projects keep Adjusted EBITDA growth near 11% a year.

## About

Williams owns and operates natural gas infrastructure in the United States. Its largest asset is the Transco interstate pipeline, and the company says that its infrastructure delivers about one third of the natural gas used in the country. It has four reportable segments. Transmission, Power & Gulf has interstate pipelines such as Transco and Northwest Pipeline, gas storage, Gulf Coast assets and power projects. Northeast G&P has gathering and processing in the Northeast. West has gathering and processing in Colorado, Wyoming, Texas and the Haynesville Shale, where Williams bought Momentum Midstream in September 2026. Gas & NGL Marketing Services markets natural gas and natural gas liquids. Its Power Innovation projects build natural gas power plants at the sites of large power users such as data centers. Adjusted EBITDA was $7.75 billion in 2025. The head office is in Tulsa, Oklahoma, and Chad Zamarin is its president and chief executive officer.

## Thesis

Williams trades close to its intrinsic value because investors already pay for steady growth in pipeline fees and for its new power projects for data centers. Adjusted EBITDA rose 9% to $6.2 billion in the first nine months of 2026, and the company expects 2026 Adjusted EBITDA in the upper half of $8.3 billion to $8.5 billion. It targets Adjusted EBITDA growth of 11% or more a year through 2030. The growth needs large spending: growth capex of $7.3 billion to $7.9 billion in 2026, the Momentum purchase of about $5.1 billion in September 2026 and five Power Innovation projects, in which Blackstone and its partners committed $5.34 billion for a 49% interest. For the stock to hold its value, three things must be true. New Transco expansions and power projects must enter service on time and on budget. Debt must stay near 3.8 times Adjusted EBITDA while the company spends. The Haynesville assets must add earnings as LNG and power demand grow. The Q4 2026 report with the 2027 guidance, expected in February 2027, is the next test. Delays or cost increases in the power projects can push the stock below its intrinsic value.

## Checkpoints

- Nov 2, 2026: Q3 2026 results and 2026 guidance. Status: Passed. Watch: Adjusted EBITDA growth and the upper half of the 2026 guidance pass; lower guidance fails. Outcome: Adjusted EBITDA rose 6% to $2.039 billion, and Williams expects 2026 Adjusted EBITDA in the upper half of $8.3 billion to $8.5 billion.
- Feb 9, 2027 (estimate): Q4 2026 results and 2027 guidance. Status: Pending. Watch: 2027 Adjusted EBITDA guidance with growth near 11% or more passes; lower growth fails.
- May 2027 (estimate): Q1 2027 results: power and Transco projects. Status: Pending. Watch: Socrates in full service and new power project contracts pass; delays or cost increases fail.

## Balance sheet

- Cash: $1.8B
- Debt: $33.9B
- Net debt: $32.2B
- Net debt / EBITDA: 3.8× (medium)
- Interest cover: 3.2×
- Undrawn credit line: $3.8B, to May 2031
- Debt due within 12 months: $2.2B

Williams funds itself with senior notes of Williams, Transco and Northwest Pipeline, commercial paper and equity. At September 30, 2026, total debt was $33.93 billion: $31.73 billion of long-term debt and $2.20 billion due within one year. Cash was $1.76 billion, and no commercial paper was outstanding under the $3.5 billion program. In 2026, Williams issued $2.75 billion of notes in January and $2.75 billion in September, repaid $1.1 billion of 5.400% notes in March and kept $869 million of secured debt from the Momentum purchase. A credit agreement of May 19, 2026 gives $3.75 billion of commitments to May 19, 2031, and a 364-day agreement gives $1 billion more; both were available in full. The company states debt of 3.80 times Adjusted EBITDA at September 30, 2026, net of cash and some power equipment purchases. Interest cover is operating income divided by interest expense for the first nine months of 2026 ($3,639 million against $1,132 million). The Blackstone partners committed $5.34 billion for 49% of five power projects; Williams received $3.74 billion in July 2026 and $1 billion in October 2026. The 2026 dividend is $2.10 per share a year, and there were 1,250,202,516 shares outstanding on October 29, 2026.

As of 2026-09-30.

Sources:

- https://www.sec.gov/Archives/edgar/data/107263/000010726326000035/wmb_20260930xer.htm
- https://www.sec.gov/Archives/edgar/data/107263/000010726326000036/wmb-20260930.htm

## Dividends

- Dividend yield: 3.1% (last 12 months, at the current price)
- Paid per share, last 12 months: $2.075 (4 payments)
- Current annual rate: $2.10 ($0.525 x 4 a year)
- Payout ratio: 93% of the earnings of the last fiscal year (the year ended 2025-12-31)
- Latest ex-dividend date: 2026-09-11, $0.525 per share
- Growth over the last 5 years: 4.9% a year
- Growth over the last 10 years: -0.2% a year

Dividends per share by year: 2016: $1.68, 2017: $1.20, 2018: $1.36, 2019: $1.52, 2020: $1.60, 2021: $1.64, 2022: $1.70, 2023: $1.792, 2024: $1.90, 2025: $2.00.

Source: company filings and market data, read on 2026-11-10.

## Recent events

- 2026-11-02: Williams reported Q3 2026 results. Net income was $699 million, or $0.56 per share, and adjusted EPS rose 10% to $0.54. Adjusted EBITDA rose 6% to $2.039 billion, and the dividend coverage ratio was 2.42 times. Williams expects 2026 Adjusted EBITDA in the upper half of $8.3 billion to $8.5 billion. It announced a 9.4 Bcf storage expansion at Clay Basin and Transco's Southeast Supply Enhancement II, and it said that the Plato North power project of Socrates was on track to enter service by mid-November.
- 2026-09-08: Williams priced $2.75 billion of senior notes: $500 million of 5.000% notes due 2029, $1.0 billion of 5.600% notes due 2033, $750 million of 5.800% notes due 2036 and $500 million of 6.400% notes due 2056. It used the proceeds to repay commercial paper and for general purposes.
- 2026-09-03: Williams closed the purchase of Momentum Midstream, which owns gathering, processing and transportation assets in the Haynesville Shale. Total consideration was about $5.1 billion, including cash and about 27 million Williams shares, and Williams kept $869 million of debt of a Momentum subsidiary.
- 2026-08-03: Williams reported Q2 2026 results. Adjusted EPS was $0.50 and Adjusted EBITDA rose 6% to $1.921 billion. Williams agreed to buy Momentum Midstream for up to $5.5 billion, about 8.5 times projected 2027 EBITDA, and raised the midpoint of its 2026 Adjusted EBITDA guidance by $200 million to $8.4 billion.
- 2026-07-13: Williams agreed that funds led by Blackstone, with Apollo and KKR, provide $5.34 billion of committed capital for a 49% interest in five Power Innovation projects: Socrates, Apollo, Aquila, Socrates the Younger and Neo. Williams keeps 51% and control, and it has a right to buy out the partners between years 7 and 14.
- 2026-05-04: Williams reported Q1 2026 results. Adjusted EPS rose 22% to $0.73 and Adjusted EBITDA rose 13% to $2.254 billion. It signed a customer agreement for Neo, a $2.3 billion power project with 682 megawatts of capacity.
- 2026-02-10: Williams reported 2025 results. Adjusted EBITDA rose 9% to $7.75 billion and adjusted EPS was $2.10. It raised the 2026 dividend by 5% to $2.10 per share a year and first guided 2026 Adjusted EBITDA of $8.05 billion to $8.35 billion.

## Latest news and filings

- Last earnings: 2026-11-02 (8-K: https://www.sec.gov/Archives/edgar/data/107263/000010726326000035/)
- Next earnings: 2027-02-09 (expected; the company has not confirmed it)

| Filed | Form | Headline | Period end | XBRL document | Link |
| --- | --- | --- | --- | --- | --- |
| 2026-11-02 | 8-K | Other company news |  |  | https://www.sec.gov/Archives/edgar/data/107263/000119312526443903/d121327d8k.htm |
| 2026-11-02 | 10-Q | Quarterly report for the period ended Sep 30, 2026 | 2026-09-30 | wmb-20260930 | https://www.sec.gov/Archives/edgar/data/107263/000010726326000036/wmb-20260930.htm |
| 2026-11-02 | 8-K | Earnings release |  | wmb-20261102 | https://www.sec.gov/Archives/edgar/data/107263/000010726326000035/wmb-20261102.htm |
| 2026-09-10 | 8-K | New material agreement |  |  | https://www.sec.gov/Archives/edgar/data/107263/000119312526387930/d116217d8k.htm |
| 2026-09-10 | 8-K | Investor disclosure and Other company news |  |  | https://www.sec.gov/Archives/edgar/data/107263/000119312526387359/d113424d8k.htm |
| 2026-09-03 | 8-K | Other company news |  |  | https://www.sec.gov/Archives/edgar/data/107263/000119312526381926/d111572d8k.htm |
| 2026-08-21 | 8-K | Change of directors or officers |  | wmb-20260821 | https://www.sec.gov/Archives/edgar/data/107263/000010726326000028/wmb-20260821.htm |
| 2026-08-03 | 10-Q | Quarterly report for the period ended Jun 30, 2026 | 2026-06-30 | wmb-20260630 | https://www.sec.gov/Archives/edgar/data/107263/000010726326000026/wmb-20260630.htm |
| 2026-08-03 | 8-K | Earnings release |  | wmb-20260803 | https://www.sec.gov/Archives/edgar/data/107263/000010726326000024/wmb-20260803.htm |
| 2026-07-13 | 8-K | Investor disclosure |  |  | https://www.sec.gov/Archives/edgar/data/107263/000119312526301533/d152507d8k.htm |

Every filing on SEC EDGAR (CIK 107263): https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000107263&type=&dateb=&owner=include&count=40

## Risks

- Medium: Growth needs large projects: growth capex of $7.3 billion to $7.9 billion in 2026, plus the power projects. Delays, cost increases or permit problems can lower returns.
- Medium: Debt was $33.9 billion at September 30, 2026, and the company states debt of 3.80 times Adjusted EBITDA. Higher interest rates raise the cost of new debt.
- Medium: The power projects depend on a few large customers. The Socrates South power purchase agreement has an initial term of 10 years, and the Blackstone partners receive 49% of the distributions of the five projects.
- Low: Regulators set the rates of the interstate pipelines. Transco paid rate refunds to customers in April 2026.
- Low: Gathering volumes and marketing results move with natural gas prices and production. In the first nine months of 2026, changes in unrealized gains and losses on commodity derivatives lowered net income by $116 million against a year earlier.

## Links

- Page: https://picks.utilarium.app/company/WMB/
- History of changes: https://picks.utilarium.app/company/WMB/history/
- JSON with full history: https://picks.utilarium.app/data/company/WMB.json

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