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Williams Companies Q1 Earnings Beat Estimates, Revenues Miss
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Key Takeaways
WMB posted Q1 EPS of 73 cents, topping estimates as costs and expenses fell 12.5% YoY.
Williams Companies reported adjusted EBITDA of $2.3B, up 13.3%, with strong gains across key segments.
WMB reaffirmed 2026 EBITDA guidance and raised its annual dividend by 5% to $2.10 per share.
The Williams Companies, Inc. (WMB - Free Report) reported first-quarter 2026 adjusted earnings per share of 73 cents, which beat the Zacks Consensus Estimate of 65 cents. The bottom line increased from the year-ago period’s level of 60 cents, driven mainly by a 12.5% decrease in costs and expenses. Moreover, better-than-expected performance of its Transmission, Power & Gulf, Northeast G&P, West and Gas & NGL Marketing Services segments also contributed, with increases of 17.2%, 1.9%, 15.8% and 46.5%, respectively, from the year-ago quarter’s level.
The Tulsa, OK-based oil and gas storage and transportation company’s revenues of $3 billion missed the Zacks Consensus Estimate of $3.3 billion. The figure decreased marginally by 0.6% from the year-ago quarter’s reported revenues. This can be attributed to lower service revenues tied to commodity contracts and an increased loss from commodity derivative instruments.
Williams Companies, Inc. (The) Price, Consensus and EPS Surprise
Adjusted EBITDA totaled $2.3 billion in the quarter under review, which was up 13.3% year over year. Cash flow from operations amounted to $1.6 billion, up 12% from the corresponding quarter of 2025.
WMB’s Q1 Segmental Analysis
Transmission, Power & Gulf:The segment reported an adjusted EBITDA of $1 billion, up 17.2% from the year-ago quarter’s level. The increase was driven by contributions from Transco’s higher net rates and expansion projects, new Gulf volumes associated with Shenandoah, Whale and Ballymore, and higher storage revenues due to winter storms and higher rates. However, the figure missed the Zacks Consensus Estimate by 0.8%.
Northeast G&P: Driven primarily by higher volumes at Ohio Valley Midstream and higher gathering volumes and rates at Bradford within Appalachia Midstream, this segment registered an adjusted EBITDA of $524 million. This represents a 1.9% increase from $514 million in the year-earlier quarter. It beat the Zacks Consensus Estimate of $513 million.
West: This segment focuses on the gathering and processing of assets in the Western United States. Adjusted EBITDA for this segment totaled $410 million, up 15.8% from the prior-year quarter’s level of $354 million. Strong results were fueled by Louisiana Energy Gateway, which was placed into service, as well as higher gathering volumes, including contributions from the 2025 Rimrock and Saber acquisitions. Moreover, the figure beat the Zacks Consensus Estimate of $389 million.
Gas & NGL Marketing Services: The segment posted $227 million in adjusted EBITDA, a year-over-year increase from $155 million, driven by higher gas marketing margins due to winter storms. The figure surpassed the Zacks Consensus Estimate of $150 million.
Other: This segment posted an adjusted EBITDA of $83 million, representing a 20.2% decrease from $104 million in the year-earlier quarter, caused by unfavorable changes in net realized results from upstream operations, including the impact of the divested South Mansfield interests. However, the figure beat the Zacks Consensus Estimate of $71 million.
WMB’s Costs, Capex & Balance Sheet
In the reported quarter, total costs and expenses of $1.7 billion decreased almost 12.5% from the year-ago quarter’s figure.
Total capital expenditure (capex) was $1.3 billion. As of March 31, 2026, this Zacks Rank #3 (Hold) company had cash and cash equivalents of $950 million and a long-term debt of $30 billion, with a debt-to-capitalization of 66.5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
WMB’s 2026 Guidance
The company reaffirmed its 2026 Adjusted EBITDA outlook in the range of $8.05 billion to $8.35 billion. It now projects 2026 growth capital expenditures of $7 billion to $7.6 billion, while maintenance capex is expected to range between $850 million and $950 million. Williams Companies also expects its 2026 leverage ratio to average around 4.1x. In addition, the company raised its annualized dividend by 5% to $2.10 per share for 2026, up from $2 in 2025. The 2026 growth capex and debt-to-adjusted EBITDA guidance exclude certain reimbursable long-lead equipment costs.
Important Earnings at a Glance
While we have discussed WMB’s first-quarter results in detail, let us take a look at three other key reports in this space.
TC Energy Corporation (TRP - Free Report) reported first-quarter 2026 adjusted earnings of 72 cents per share, which beat the Zacks Consensus Estimate of 70 cents. Moreover, the bottom line increased from 66 cents reported in the year-ago period. This outperformance was driven by robust results from all the reportable segments of the company.
This North American energy infrastructure provider's quarterly revenues of $2.8 billion missed the Zacks Consensus Estimate by 5%. However, the figure increased 11.5% year over year.
As of March 31, 2026, TC Energy’s capital investments amounted to C$1.3 billion. The company had cash and cash equivalents worth C$1.1 billion and long-term debt of C$45.4 billion, with a debt-to-capitalization of 60% as of the same date.
Northern Oil and Gas, Inc. (NOG - Free Report) reported first-quarter 2026 adjusted earnings per share of 74 cents, which beat the Zacks Consensus Estimate of 71 cents. The outperformance reflects strong production. However, the bottom line declined from the year-ago adjusted profit of $1.33 due to weaker natural gas prices and a 77% increase in operating expenses.
The Minnetonka, MN-based oil and gas exploration and production company reported oil and gas sales of $539.9 million, beating the Zacks Consensus Estimate of $511 million, supported by higher crude oil realizations. However, the top line decreased from the year-ago figure of $576.9 million. The year-over-year decline was mainly due to lower oil and gas sales during this quarter.
As of March 31, 2026, Northern Oil had $37 million in cash and cash equivalents. The company had a long-term debt of $2.6 billion, with a debt-to-capitalization of 58.8%.
Imperial Oil Limited (IMO - Free Report) reported first-quarter 2026 adjusted earnings per share of $1.41, which missed the Zacks Consensus Estimate of $1.67 and decreased from the year-ago quarter’s $1.75 due to lower net income in the upstream segment and a lower average realized price for synthetic crude.
Revenues of $9.1 billion missed the Zacks Consensus Estimate of $9.8 billion due to weak performance in both the Upstream and Downstream segments. However, the top line increased from the year-ago quarter’s level of $8.7 billion.
As of March 31, 2026, Imperial Oil had cash and cash equivalents of C$1 billion. Total debt of the company amounted to C$4 billion, with a debt-to-capitalization of 14.9%.
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Williams Companies Q1 Earnings Beat Estimates, Revenues Miss
Key Takeaways
The Williams Companies, Inc. (WMB - Free Report) reported first-quarter 2026 adjusted earnings per share of 73 cents, which beat the Zacks Consensus Estimate of 65 cents. The bottom line increased from the year-ago period’s level of 60 cents, driven mainly by a 12.5% decrease in costs and expenses. Moreover, better-than-expected performance of its Transmission, Power & Gulf, Northeast G&P, West and Gas & NGL Marketing Services segments also contributed, with increases of 17.2%, 1.9%, 15.8% and 46.5%, respectively, from the year-ago quarter’s level.
The Tulsa, OK-based oil and gas storage and transportation company’s revenues of $3 billion missed the Zacks Consensus Estimate of $3.3 billion. The figure decreased marginally by 0.6% from the year-ago quarter’s reported revenues. This can be attributed to lower service revenues tied to commodity contracts and an increased loss from commodity derivative instruments.
Williams Companies, Inc. (The) Price, Consensus and EPS Surprise
Williams Companies, Inc. (The) price-consensus-eps-surprise-chart | Williams Companies, Inc. (The) Quote
Adjusted EBITDA totaled $2.3 billion in the quarter under review, which was up 13.3% year over year. Cash flow from operations amounted to $1.6 billion, up 12% from the corresponding quarter of 2025.
WMB’s Q1 Segmental Analysis
Transmission, Power & Gulf: The segment reported an adjusted EBITDA of $1 billion, up 17.2% from the year-ago quarter’s level. The increase was driven by contributions from Transco’s higher net rates and expansion projects, new Gulf volumes associated with Shenandoah, Whale and Ballymore, and higher storage revenues due to winter storms and higher rates. However, the figure missed the Zacks Consensus Estimate by 0.8%.
Northeast G&P: Driven primarily by higher volumes at Ohio Valley Midstream and higher gathering volumes and rates at Bradford within Appalachia Midstream, this segment registered an adjusted EBITDA of $524 million. This represents a 1.9% increase from $514 million in the year-earlier quarter. It beat the Zacks Consensus Estimate of $513 million.
West: This segment focuses on the gathering and processing of assets in the Western United States. Adjusted EBITDA for this segment totaled $410 million, up 15.8% from the prior-year quarter’s level of $354 million. Strong results were fueled by Louisiana Energy Gateway, which was placed into service, as well as higher gathering volumes, including contributions from the 2025 Rimrock and Saber acquisitions. Moreover, the figure beat the Zacks Consensus Estimate of $389 million.
Gas & NGL Marketing Services: The segment posted $227 million in adjusted EBITDA, a year-over-year increase from $155 million, driven by higher gas marketing margins due to winter storms. The figure surpassed the Zacks Consensus Estimate of $150 million.
Other: This segment posted an adjusted EBITDA of $83 million, representing a 20.2% decrease from $104 million in the year-earlier quarter, caused by unfavorable changes in net realized results from upstream operations, including the impact of the divested South Mansfield interests. However, the figure beat the Zacks Consensus Estimate of $71 million.
WMB’s Costs, Capex & Balance Sheet
In the reported quarter, total costs and expenses of $1.7 billion decreased almost 12.5% from the year-ago quarter’s figure.
Total capital expenditure (capex) was $1.3 billion. As of March 31, 2026, this Zacks Rank #3 (Hold) company had cash and cash equivalents of $950 million and a long-term debt of $30 billion, with a debt-to-capitalization of 66.5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
WMB’s 2026 Guidance
The company reaffirmed its 2026 Adjusted EBITDA outlook in the range of $8.05 billion to $8.35 billion. It now projects 2026 growth capital expenditures of $7 billion to $7.6 billion, while maintenance capex is expected to range between $850 million and $950 million. Williams Companies also expects its 2026 leverage ratio to average around 4.1x. In addition, the company raised its annualized dividend by 5% to $2.10 per share for 2026, up from $2 in 2025. The 2026 growth capex and debt-to-adjusted EBITDA guidance exclude certain reimbursable long-lead equipment costs.
Important Earnings at a Glance
While we have discussed WMB’s first-quarter results in detail, let us take a look at three other key reports in this space.
TC Energy Corporation (TRP - Free Report) reported first-quarter 2026 adjusted earnings of 72 cents per share, which beat the Zacks Consensus Estimate of 70 cents. Moreover, the bottom line increased from 66 cents reported in the year-ago period. This outperformance was driven by robust results from all the reportable segments of the company.
This North American energy infrastructure provider's quarterly revenues of $2.8 billion missed the Zacks Consensus Estimate by 5%. However, the figure increased 11.5% year over year.
As of March 31, 2026, TC Energy’s capital investments amounted to C$1.3 billion. The company had cash and cash equivalents worth C$1.1 billion and long-term debt of C$45.4 billion, with a debt-to-capitalization of 60% as of the same date.
Northern Oil and Gas, Inc. (NOG - Free Report) reported first-quarter 2026 adjusted earnings per share of 74 cents, which beat the Zacks Consensus Estimate of 71 cents. The outperformance reflects strong production. However, the bottom line declined from the year-ago adjusted profit of $1.33 due to weaker natural gas prices and a 77% increase in operating expenses.
The Minnetonka, MN-based oil and gas exploration and production company reported oil and gas sales of $539.9 million, beating the Zacks Consensus Estimate of $511 million, supported by higher crude oil realizations. However, the top line decreased from the year-ago figure of $576.9 million. The year-over-year decline was mainly due to lower oil and gas sales during this quarter.
As of March 31, 2026, Northern Oil had $37 million in cash and cash equivalents. The company had a long-term debt of $2.6 billion, with a debt-to-capitalization of 58.8%.
Imperial Oil Limited (IMO - Free Report) reported first-quarter 2026 adjusted earnings per share of $1.41, which missed the Zacks Consensus Estimate of $1.67 and decreased from the year-ago quarter’s $1.75 due to lower net income in the upstream segment and a lower average realized price for synthetic crude.
Revenues of $9.1 billion missed the Zacks Consensus Estimate of $9.8 billion due to weak performance in both the Upstream and Downstream segments. However, the top line increased from the year-ago quarter’s level of $8.7 billion.
As of March 31, 2026, Imperial Oil had cash and cash equivalents of C$1 billion. Total debt of the company amounted to C$4 billion, with a debt-to-capitalization of 14.9%.