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August 4, 2025 • 4 min read
The Williams Companies (WMB), a major player in the United States' natural gas infrastructure network, recently released its financial results for the second quarter of 2025. In this post, we'll dive into the numbers from their latest 10-Q filing to see what's driving their performance and what it tells us about the company's health and strategic direction.
Overall, Williams posted a strong first half of the year, with both revenue and net income showing healthy growth compared to the same period in 2024, signaling robust demand for its energy infrastructure services.
For the six months ended June 30, 2025, Williams' total revenues climbed to $5.83 billion, up from $5.11 billion in the first half of 2024. A significant portion of this growth came from its core Service Revenues, which are largely fee-based and less susceptible to commodity price swings. These services, which include natural gas transportation, gathering, and processing, grew by 8% to $4.04 billion for the six-month period. The company attributes this solid performance to expansion projects coming online and contributions from recent acquisitions.
The following flow diagram illustrates how the company's revenues for the first half of 2025 were converted into profit, highlighting the major costs and expenses along the way.
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As the chart shows, after accounting for all costs, Williams' operating income for the first six months was a strong $2.04 billion. This ultimately translated into a Net Income Attributable to The Williams Companies of $1.24 billion, a notable 20% increase from the $1.03 billion earned in the first half of 2024. This jump in profitability underscores the company's successful execution of its growth strategy.
To understand the engines behind this growth, we can look at the performance of Williams' key business segments, which the company measures using a metric called Modified EBITDA (a segment's earnings before interest, taxes, depreciation, and amortization, with certain adjustments).
Transmission & Gulf of America: This is the company's largest segment, housing its massive Transco interstate pipeline system. It saw its Modified EBITDA rise to $1.75 billion for the first six months of 2025, up from $1.64 billion a year prior, fueled by acquisitions like the Discovery system and new expansion projects.
Northeast G&P: Operating in the prolific Marcellus and Utica shale basins, this segment also delivered growth, with Modified EBITDA increasing to $1.02 billion from $985 million, thanks to higher volumes and favorable rates.
West: This segment, which operates across several basins from the Rockies to the Gulf Coast, posted an 8% increase in Modified EBITDA to $695 million for the half-year. The company credits this to higher gathering volumes from recent asset purchases and stronger commodity-linked rates.
Gas & NGL Marketing Services: This segment is inherently more volatile as it deals with marketing and trading. It showed a dramatic improvement, swinging from a $25 million loss in the first half of 2024 to a $122 million profit in the first half of 2025. This significant turnaround was primarily driven by a favorable change in unrealized gains and losses from commodity derivatives, highlighting the dynamic nature of energy markets.
Williams' financial results paint a picture of a company capitalizing on the critical role of natural gas in the energy landscape. The steady growth in its fee-based service revenues provides a resilient foundation, while strategic investments in acquisitions and expansion projects continue to bear fruit.
The company's management highlighted a portfolio of ongoing projects, from the Southeast Supply Enhancement to the Haynesville Gathering Expansion, signaling a continued focus on expanding its infrastructure to connect natural gas supplies to growing demand centers, including those for LNG export and power generation. While risks such as regulatory hurdles for new projects and commodity price volatility always loom, Williams appears well-positioned to continue its growth trajectory.
Last updated: August 4, 2025