The Williams Companies, Inc. (WMB) | Investment Case

1. Company Snapshot

1.a. Company Description

The Williams Companies, Inc., together with its subsidiaries, operates as an energy infrastructure company primarily in the United States.It operates through Transmission & Gulf of Mexico, Northeast G&P, West, and Gas & NGL Marketing Services segments.The Transmission & Gulf of Mexico segment comprises Transco and Northwest natural gas pipelines; and natural gas gathering and processing, and crude oil production handling and transportation assets in the Gulf Coast region, as well as various petrochemical and feedstock pipelines.

The Northeast G&P segment engages in the midstream gathering, processing, and fractionation activities in the Marcellus Shale region primarily in Pennsylvania and New York, and the Utica Shale region of eastern Ohio.The West segment comprises gas gathering, processing, and treating operations in the Rocky Mountain region of Colorado and Wyoming, the Barnett Shale region of north-central Texas, the Eagle Ford Shale region of South Texas, the Haynesville Shale region of northwest Louisiana, and the Mid-Continent region, which includes the Anadarko, Arkoma, and Permian basins; and operates natural gas liquid (NGL) fractionation and storage facilities in central Kansas near Conway.The Gas & NGL Marketing Services segment provides wholesale marketing, trading, storage, and transportation of natural gas for natural gas utilities, municipalities, power generators, and producers; risk and asset management; and NGL marketing services.

The company owns and operates 30,000 miles of pipelines, 29 processing facilities, 7 fractionation facilities, and approximately 23 million barrels of NGL storage capacity.The Williams Companies, Inc.was founded in 1908 and is headquartered in Tulsa, Oklahoma.

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1.b. Last Insights on WMB

The Williams Companies, Inc.'s recent performance is driven by robust fundamentals, strategic capital expenditure, and geographic diversification. The company's Q3 2025 results demonstrate strong growth, despite energy market volatility, driven by rising natural gas demand, data center expansion, and policy easing. Aviso Financial Inc. and Bailard Inc. increased their stakes in the company, while Allworth Financial LP raised its holdings by 50.2%. Williams' Power Innovation strategy targets AI data center power needs, providing a scalable growth avenue. Its natural gas pipeline network and new BTM generation projects support predictable cash flows and steady dividend growth.

1.c. Company Highlights

Last Price	63.4
Change Percentage	-0.42%
Open	63.66
Previous Close	63.66
Market Cap ( Millions)	77419
Volume	1654543
Year High	65.55
Year Low	51.58
M A 50	60.91
M A 200	59.11

FCF Yield	2.33%
Dividend Yield	3.12%
ROE	19.01%
Debt / Equity	223.54%
Net Debt / EBIDTA	400.65%
Price To Book	6.18
Price Earnings Ratio	32.63
Price To FCF	42.89
Price To sales	6.73
EV / EBITDA	15.1

2. Williams' Q3 2025 Earnings: Strong Growth and Strategic Investments

Williams reported adjusted EBITDA of $7.75 billion, up 13% year-over-year, with a midpoint guidance. The company's EPS came in at $0.49, slightly below estimates of $0.516. Revenue growth is expected to continue, with analysts estimating a 7.8% increase next year. The company's financial performance is supported by its strategic investments, including the completion of several transmission projects, such as Northwest Pipeline's Stanfield South project and Transco's Alabama, Georgia Connector and Commonwealth Energy Connector expansion projects.

Publication Date: Nov -05

                                    📋 Highlights
                                    Adjusted EBITDA Growth:
                                                Increased by 13% to a midpoint of $7.75 billion in Q3 2025 compared to Q3 2024.
Capital Expenditure Expansion:
                                                Full-year 2025 growth CapEx range raised to $3.95 billion–$4.25 billion.
Power Innovation Investment:
                                                $3.1 billion allocated to two new grid-constrained market projects, with a $5 billion backlog of commercialized projects.
LNG Partnership:
                                                3.1 Bcf/day pipeline (Line 200) under development with Woodside Energy, leveraging take-or-pay contracts for international market access.
Haynesville Capacity Boost:
                                                Added 200,000 dekatherms/day transmission capacity through completed projects, enhancing supply access and reliability.

                                

Operational Highlights

The company's operational performance was strong, with the completion of Shenandoah and Salamanca deepwater expansion projects and the Haynesville expansion, increasing basin gathering and takeaway capacity. Williams also announced a strategic partnership with Woodside Energy to build and operate Line 200, a 3.1 Bcf/day pipeline connecting Woodside's Louisiana LNG terminal to multiple systems. As Chad Zamarin noted, "We're seeking to connect our customers to the very best end-use markets, including power generation, utilities, and industrial loads."

Growth Prospects

Williams' growth prospects are supported by its backlog of fully contracted projects, which provides confidence in continued industry-leading growth. The company's Power Innovation business continues to grow, with a planned investment of approximately $3.1 billion into two additional projects to deliver speed-to-market solutions in grid-constrained markets. The company's long-term growth outlook is 5-7%, driven by its diversified portfolio and strategic investments.

Valuation

Williams' valuation metrics indicate a relatively high P/E ratio of 29.14, suggesting that the market is pricing in strong future growth. The company's EV/EBITDA ratio is 15.66, and its ROE is 19.01%. The dividend yield is 3.49%, providing a relatively attractive return for income investors. With a P/S ratio of 6.01, Williams' valuation is reasonable compared to its peers.

Investment Implications

Overall, Williams' Q3 2025 earnings report demonstrates strong financial performance and strategic investments that support its growth prospects. While the valuation metrics indicate a relatively high P/E ratio, the company's long-term growth outlook and dividend yield make it an attractive investment opportunity for investors seeking exposure to the energy sector.

3. NewsRoom

7%+ Yields: I Am Giving Thanks For My Favorite Black Friday Special

Nov -28

Source: seekingalpha.com

Aviso Financial Inc. Grows Stock Holdings in Williams Companies, Inc. (The) $WMB

Nov -25

Source: defenseworld.net

Give Oil a Miss, Focus on Natural Gas Stocks: WMB, AR, CRK

Nov -21

Source: zacks.com

Alteri Wealth LLC Sells 1,132 Shares of Williams Companies, Inc. (The) $WMB

Nov -19

Source: defenseworld.net

The Energy Chart Nobody Is Paying Attention To, But It Could Change Everything

Nov -17

Source: seekingalpha.com

My Most Contrarian Call Yet: Energy Is About To Rewrite Wall Street's Playbook

Nov -17

Source: seekingalpha.com

Bailard Inc. Buys 1,008 Shares of Williams Companies, Inc. (The) $WMB

Nov -15

Source: defenseworld.net

One Of The Best High-Yield Setups I've Ever Seen

Nov -14

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.57%)

6. Segments

Transmission & Gulf of Mexico

Expected Growth: 6.5%

The Williams Companies, Inc.’s transmission and Gulf of Mexico operations are poised for growth driven by increasing demand for natural gas, expansion of liquefied natural gas exports and a strong backlog of projects.

West

Expected Growth: 5.5%

Williams’ West segment is anticipated to grow driven by increasing natural gas demand, expansion of the Haynesville and Uinta basins, and investments in pipeline infrastructure, leading to a strong outlook for the segment.

Northeast G&P

Expected Growth: 4.5%

Northeast G&P pipeline growth driven by increasing demand from power generation and industrial markets, coupled with Williams' strategic expansion into the Northeast region, particularly in Pennsylvania and New York.

Gas & NGL Marketing Services

Expected Growth: 4.8%

Williams Companies' Gas & NGL Marketing Services is expected to benefit from the rising demand for clean energy, increasing natural gas production, and growing LNG exports, driving segment growth.

Other

Expected Growth: 4.6%

Williams' other segment, which includes its Canadian and Brazilian operations, is expected to grow driven by increasing natural gas demand and expansion of pipeline infrastructure.

Eliminations

Expected Growth: 5.5%

Strong demand for natural gas, coupled with Williams' strategic pipeline expansion projects, will drive growth in the Eliminations segment.

7. Detailed Products

Natural Gas Pipelines

Williams owns and operates over 30,000 miles of pipelines, providing transportation services for natural gas and natural gas liquids.

Natural Gas Gathering and Processing

Williams gathers and processes natural gas and natural gas liquids from wells, treating and separating the products for transportation and sale.

Natural Gas Liquids (NGLs) Fractionation

Williams fractionates NGLs into their component parts, such as ethane, propane, and butane, for use in various industries.

Olefin Production

Williams produces olefins, such as ethylene and propylene, which are used to manufacture plastics, fibers, and other products.

8. The Williams Companies, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for The Williams Companies, Inc. is medium due to the availability of alternative energy sources and transportation methods.

Bargaining Power Of Customers

The bargaining power of customers for The Williams Companies, Inc. is low due to the company's strong market position and limited customer concentration.

Bargaining Power Of Suppliers

The bargaining power of suppliers for The Williams Companies, Inc. is medium due to the company's dependence on a few key suppliers and the availability of alternative suppliers.

Threat Of New Entrants

The threat of new entrants for The Williams Companies, Inc. is low due to the high barriers to entry in the energy industry and the company's established market position.

Intensity Of Rivalry

The intensity of rivalry for The Williams Companies, Inc. is high due to the competitive nature of the energy industry and the company's position as a midstream energy company.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	68.07%
Debt Cost	6.06%
Equity Weight	31.93%
Equity Cost	9.26%
WACC	7.08%
Leverage	213.18%

11. Quality Control: The Williams Companies, Inc. passed 5 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Cheniere Energy Partners

A-Score: 7.5/10

Value: 7.2

Growth: 6.8

Quality: 7.1

Yield: 10.0

Momentum: 6.5

Volatility: 7.7

1-Year Total Return ->

MPLX

A-Score: 7.3/10

Value: 4.7

Growth: 5.3

Quality: 6.7

Yield: 10.0

Momentum: 7.0

Volatility: 10.0

1-Year Total Return ->

Enterprise Products Partners

A-Score: 6.9/10

Value: 5.7

Growth: 5.0

Quality: 4.9

Yield: 10.0

Momentum: 6.0

Volatility: 10.0

1-Year Total Return ->

Energy Transfer

A-Score: 6.7/10

Value: 7.2

Growth: 3.6

Quality: 4.1

Yield: 10.0

Momentum: 6.0

Volatility: 9.3

1-Year Total Return ->

Williams

A-Score: 6.2/10

Value: 2.0

Growth: 4.6

Quality: 5.6

Yield: 8.0

Momentum: 8.0

Volatility: 9.0

1-Year Total Return ->

ONEOK

A-Score: 6.0/10

Value: 5.5

Growth: 5.2

Quality: 4.8

Yield: 10.0

Momentum: 2.0

Volatility: 8.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

11.75%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.08%

The Williams Companies, Inc. - US9694571004

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on WMB

1.c. Company Highlights

Less Volatile

Expensive

Higher Yield

Earnings Beats

Revenues Beats

Strong Momentum

Earnings Miss

2. Williams' Q3 2025 Earnings: Strong Growth and Strategic Investments

Operational Highlights

Growth Prospects

Valuation

Investment Implications

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.57%)

6. Segments

Transmission & Gulf of Mexico

Expected Growth: 6.5%

West

Expected Growth: 5.5%

Northeast G&P

Expected Growth: 4.5%

Gas & NGL Marketing Services

Expected Growth: 4.8%

Other

Expected Growth: 4.6%

Eliminations

Expected Growth: 5.5%

7. Detailed Products

Natural Gas Pipelines

Natural Gas Gathering and Processing

Natural Gas Liquids (NGLs) Fractionation

Olefin Production

8. The Williams Companies, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: The Williams Companies, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

63.39$

Current Price

63.4$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA