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The Williams Companies, Inc. WMB reported third-quarter 2025 adjusted earnings per share of 49 cents, which missed the Zacks Consensus Estimate of 51 cents, mainly due to weak performance in its West and Northeast G&P segments, which came in 1.6% and 1% below the consensus mark, respectively. However, the bottom line increased from the year-ago period’s level of 43 cents. This can be attributed to the strong year-over-year results delivered by the company’s Transmission & Gulf of America, Gas & NGL Marketing Services, and Other segments.
The Tulsa, OK-based oil and gas storage and transportation company’s revenues of $2.9 billion missed the Zacks Consensus Estimate by $113 million. The underperformance was primarily due to weaker-than-expected product sales revenues, which declined 27.5% compared with the Zacks Consensus Estimate. However, the figure increased from the year-ago quarter’s reported number of $2.7 billion, supported by higher service revenues, including those tied to commodity contracts, stronger product sales and gains from commodity derivative instruments.
Williams Companies, Inc. (The) price-consensus-eps-surprise-chart | Williams Companies, Inc. (The) Quote
Adjusted EBITDA totaled $1.9 billion in the quarter under review, which was up 12.7% year over year. Cash flow from operations amounted to $1.4 billion, up 15.8% from the corresponding quarter of 2024.
Williams advanced key growth projects and successfully executed the strategic priorities, underscoring its long-term infrastructure leadership. The company placed into service major projects across its footprint, including Transco’s Alabama-Georgia Connector, Commonwealth Energy Connector and Northwest Pipeline’s Stanfield South expansion, further strengthening natural gas capacity and reliability.
In the Gulf of America, Williams brought online the Shenandoah and Salamanca deepwater expansions while also completing the Louisiana Energy Gateway and Haynesville West expansion, emphasizing strong execution in high-value basins.
The firm expanded the scope of its Socrates platform by roughly $400 million to $2 billion and unveiled two new Power Innovation initiatives, highlighting its pivot toward lower-carbon energy solutions. Williams also signed precedent agreements for Pine Prairie storage expansion, Mountain West’s Green River West expansion and Transco’s Wharton West expansion, demonstrating strong commercial momentum.
Additionally, the company advanced the wellhead-to-water strategy by selling Haynesville E&P assets and forming a strategic partnership with Woodside, reinforcing its commitment to capital-efficient growth and enhanced value creation.
Transmission & Gulf of America: The segment reported an adjusted EBITDA of $947 million, up 14.1% from the year-ago quarter’s level. Moreover, the figure beat the Zacks Consensus Estimate of $943 million. The increase was driven by stronger net rates and expansion projects at Transco, as well as incremental Gulf volumes.
West: This segment focuses on the gathering and processing of assets in the Western United States. Adjusted EBITDA for this segment totaled $367 million, up 11.2% from the prior-year quarter’s level of $330 million. The strong performance was driven by the Louisiana Energy Gateway project coming into service, new volumes from the 2025 Rimrock and Saber acquisitions and increased volumes in the Haynesville. However, the figure was down from the Zacks Consensus Estimate of $373 million.
Northeast G&P: Driven primarily by increased gathering volumes at Bradford, the segment registered an adjusted EBITDA of $505 million. This represents a 4.3% increase from $484 million in the year-earlier quarter, though it missed the Zacks Consensus Estimate by 1%.
Gas & NGL Marketing Services: The segment posted $11 million in adjusted EBITDA, a year-over-year increase from $4 million and a notable beat versus the Zacks Consensus Estimate of a loss of $2.14 million.
Other: This segment posted an adjusted EBITDA of $90 million, representing a 63.6% increase from $55 million in the year-earlier quarter. The figure was also 18.4% higher than the Zacks Consensus Estimate.
In the reported quarter, total costs and expenses of $1.8 billion decreased almost 1% from the year-ago quarter’s figure.
Total capital expenditure (Capex) was $2.9 billion. As of Sept. 30, 2025, the company had cash and cash equivalents of $70 million and a long-term debt of $25.6 billion, with a debt-to-capitalization of 67.1%.
The company expects the midpoint of its 2025 adjusted EBITDA guidance to remain at $7.75 billion, within a projected range of $7.6 billion to $7.9 billion. Williams has increased its 2025 growth capital spending forecast by $500 million, now estimating between $3.95 billion and $4.25 billion, tied to its recently announced investment in Woodside Energy’s Louisiana LNG project.
Maintenance capital expenditures are still expected to range from $650 million to $750 million, excluding spending related to emissions-reduction and modernization initiatives. The company continues to anticipate a 2025 leverage ratio midpoint of approximately 3.7x and has raised its annual dividend by 5.3% to $2 per share for 2025 from $1.90 in 2024.
WMB currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
While we have discussed WMB’s third-quarter results in detail, let us take a look at three other key reports in this space.
Liberty Energy Inc. LBRT, a leading pressure pumping and oilfield services firm headquartered in Denver, posted a third-quarter 2025 adjusted net loss of 6 cents per share, wider than the Zacks Consensus Estimate of a loss of 1 cent. Moreover, the bottom line decreased sharply from the year-ago quarter’s profit of 45 cents. The company's underperformance can be attributed to macroeconomic headwinds accompanied by a slowdown in the industry’s frac activity and market pricing pressure.
As of Sept. 30, Liberty Energy had approximately $13.4 million in cash and cash equivalents. The pressure pumper’s long-term debt of $253 million represented a debt-to-capitalization of 10.9%.
San Antonio-based Valero Energy Corporation VLO, a leading independent refiner and marketer of transportation fuels and petrochemical products, reported third-quarter 2025 adjusted earnings of $3.66 per share, which beat the Zacks Consensus Estimate of $2.95. The bottom line improved from the year-ago quarter’s level of $1.16. Better-than-expected quarterly results can be primarily attributed to an increase in refining margins, higher ethanol margins and lower total cost of sales.
The company had cash and cash equivalents of $4.8 billion at the end of the third quarter. As of Sept. 30, 2025, it had a total debt of $8.4 billion and finance-lease obligations of $2.2 billion.
Houston-based Halliburton Company HAL, one of the world’s largest oilfield services providers specializing in drilling and well completions, posted third-quarter 2025 adjusted net income per share of 58 cents, beating the Zacks Consensus Estimate of 50 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line fell from the year-ago adjusted profit of 73 cents due to softer activity in North America.
As of Sept. 30, 2025, the company had approximately $2 billion in cash/cash equivalents and $7.2 billion in long-term debt, representing a debt-to-capitalization ratio of 41.1.
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This article originally published on Zacks Investment Research (zacks.com).
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