DATE: Wednesday, May 3, 2023

MEDIA CONTACT:			INVESTOR CONTACTS:
media@williams.com (800) 945-8723			Danilo Juvane (918) 573-5075			Caroline Sardella (918) 230-9992

TULSA, Okla. – Williams (NYSE: WMB) today announced its unaudited financial results for the three months ended March 31, 2023.

•GAAP net income of $926 million, or $0.76 per diluted share (EPS) – up 144% vs. 1Q 2022

•Adjusted net income of $684 million, or $0.56 per diluted share (Adjusted EPS) – up 37% vs. 1Q 2022

•Adjusted EBITDA of $1.795 billion – up $284 million or 19% vs. 1Q 2022

•Cash flow from operations (CFFO) of $1.514 billion – up $432 million or 40% vs. 1Q 2022

•Available funds from operations (AFFO) of $1.445 billion – up $255 million or 21% vs. 1Q 2022

•Dividend coverage ratio of 2.65x (AFFO basis)

•Record gathering volumes of 17.85 Bcf/d – up 18% from 1Q 2022

•Record contracted transmission capacity of 32.5 Bcf/d – up 33% from 1Q 2022

•Continued improvement of balance sheet with leverage ratio of 3.57x

•Began construction of Regional Energy Access; partial in-service expected ahead of schedule late 2023

•Closed on acquisition of MountainWest natural gas transmission and storage business

•Brought into service Taggart in Deepwater Gulf of Mexico, Haynesville Springridge expansion and Marcellus gathering expansion in Southwest Appalachia

•Executed agreements with Chevron to facilitate fee-based growth in Deepwater Gulf of Mexico, Haynesville gathering and our Louisiana Energy Gateway Expansion (LEG)

•Advanced NextGen Gas strategy by leveraging Sequent marketing business; Coterra and Dominion committing additional volumes

•Continued focus on sustainable operations; first major U.S. midstream company to join the Oil & Gas Methane Partnership (OGMP) 2.0 methane performance initiative

Alan Armstrong, president and chief executive officer, made the following comments:

“Williams experienced record natural gas gathering volumes and contracted capacity in the first quarter, driving higher earnings across all four core business segments compared to first quarter 2022, with Adjusted EBITDA up nearly 20 percent. These results proved without question that our core business is performing as designed amid volatile price cycles. Our fee-based revenues continued to grow even without including the strong contributions from recent acquisitions. We saw very high gas prices at Opal in the first quarter, which caused negative NGL margins, but the integration of our Sequent marketing business turned this into a positive outcome for Williams, demonstrating our ability to capitalize on volatility.

“We remain squarely focused on our natural gas-focused strategy as we execute a robust list of fully contracted projects within our footprint that will contribute to our long-term adjusted EBITDA growth rate target of 5 to 7 percent.

Regional Energy Access, which we expect to start bringing into service ahead of schedule this year, will unlock more of our Northeast gas gathering and processing volumes to serve nearby markets. In addition, the integration of our recent MountainWest acquisition bolsters our position in the Rockies with stable, FERC-regulated natural gas transmission and storage infrastructure.”

Armstrong added, “Williams is making strides to serve both domestic and global energy demand in a lower-carbon and sustainable manner. We were the first major U.S. midstream company to join OGMP 2.0, and we were among the first to invest in and deploy satellite technology to monitor the methane performance of our assets as part of our growing NextGen Gas strategy. It’s certainly an exciting time to be at Williams, and I’m proud of all that our employees are doing across the enterprise to make Williams a leader in the responsible energy market.”

Williams Summary Financial Information			1Q
Amounts in millions, except ratios and per-share amounts. Per share amounts are reported on a diluted basis. Net income amounts are from continuing operations attributable to The Williams Companies, Inc. available to common stockholders.			2023			2022
GAAP Measures
Net Income			$926			$379
Net Income Per Share			$0.76			$0.31
Cash Flow From Operations			$1,514			$1,082
Non-GAAP Measures (1)
Adjusted EBITDA			$1,795			$1,511
Adjusted Net Income			$684			$499
Adjusted Earnings Per Share			$0.56			$0.41
Available Funds from Operations			$1,445			$1,190
Dividend Coverage Ratio			2.65		x	2.30		x
Other
Debt-to-Adjusted EBITDA at Quarter End (2)			3.57		x	3.81		x
Capital Investments (3) (4)			$525			$316
(1) Schedules reconciling Adjusted Net Income, Adjusted EBITDA, Available Funds from Operations and Dividend Coverage Ratio (non-GAAP measures) to the most comparable GAAP measure are available at www.williams.com and as an attachment to this news release.
(2) Does not represent leverage ratios measured for WMB credit agreement compliance or leverage ratios as calculated by the major credit ratings agencies. Debt is net of cash on hand, and Adjusted EBITDA reflects the sum of the last four quarters.
(3) Capital Investments includes increases to property, plant, and equipment (growth & maintenance capital),purchases of and contributions to equity-method investments and purchases of other long-term investments.
(4) 1Q 2023 capital excludes $1.06 billion acquisition of MountainWest Pipeline Holding company, which closed February 14, 2023.

First-quarter 2023 net income increased by $547 million compared to the prior year reflecting a favorable change of $450 million in net unrealized gains/losses on commodity derivatives, the benefit of higher service revenues driven by contributions from recent acquisitions and increased volumes at Ohio Valley Midstream, as well as higher commodity marketing margins. These improvements were partially offset by higher operating and administrative expenses, including the impact from recent acquisitions. The tax provision increased primarily due to higher pretax income.

Cash flow from operations for the first quarter of 2023 increased compared to 2022 primarily due to higher operating results exclusive of non-cash items and favorable net changes in working capital.

First-quarter 2023 Adjusted EBITDA increased by $284 million over the prior year, driven by the previously described benefits from service revenues and commodity marketing margins, partially offset by higher operating and administrative expenses.

First-quarter 2023 Adjusted Net Income improved by $185 million over the prior year, driven by the previously described impacts to net income, adjusted primarily to remove the effects of net unrealized gains/losses on commodity derivatives and amortization of certain assets from the Sequent acquisition.

First-quarter 2023 Available Funds From Operations (AFFO) increased by $255 million compared to the prior year primarily due to higher operating results exclusive of non-cash items.

Williams' operations are comprised of the following reportable segments: Transmission & Gulf of Mexico, Northeast G&P, West and Gas & NGL Marketing Services, as well as Other. For more information, see the company's first-quarter 2023 Form 10-Q.

First-quarter 2023 Modified and Adjusted EBITDA improved compared to the prior year driven by the MountainWest and NorTex Midstream acquisitions. Modified EBITDA for 2023 was further impacted by one-time MountainWest acquisition costs, which are excluded from Adjusted EBITDA.

First-quarter 2023 Modified and Adjusted EBITDA increased over the prior year driven by increased volumes at Ohio Valley Midstream, Marcellus South and Cardinal.

First-quarter 2023 Modified and Adjusted EBITDA increased compared to the prior year benefiting from realized gains on natural gas hedges and contributions from Trace Midstream acquired in April 2022, partially offset by lower processing margins due to a short-term gas price spike at Opal and severe weather impacts. Modified EBITDA for 2023 was also impacted by a favorable contract settlement, which is excluded from Adjusted EBITDA.

First-quarter 2023 Modified EBITDA improved from the prior year primarily reflecting higher commodity marketing margins and a $390 million net favorable change in unrealized gains/losses on commodity derivatives, which is excluded from Adjusted EBITDA.

First-quarter 2023 Modified EBITDA improved compared to the prior year primarily reflecting a $60 million net favorable change in unrealized gains/losses on commodity derivatives, which is excluded from Adjusted EBITDA. These results were partially impacted by severe weather.

The company continues to expect 2023 Adjusted EBITDA between $6.4 billion and $6.8 billion. The company expects 2023 growth capex between $1.6 billion to $1.9 billion due to the acceleration of Transco's Regional Energy Access project. Importantly, Williams anticipates a leverage ratio midpoint of 3.65x, which will allow it to retain financial flexibility. The dividend was increased by 5.3% on an annualized basis to $1.79 in 2023 from $1.70 in 2022.

Williams' first-quarter 2023 earnings presentation will be posted at www.williams.com. The company’s first-quarter 2023 earnings conference call and webcast with analysts and investors is scheduled for Thursday, May 4, at 9:30 a.m. Eastern Time (8:30 a.m. Central Time). Participants who wish to join the call by phone must register using the following link: https://conferencingportals.com/event/MTgNWtxQ A webcast link to the conference call will be provided on Williams’ Investor Relations website.

A replay of the webcast will be available on the website for at least 90 days following the event.

As the world demands reliable, low-cost, low-carbon energy, Williams (NYSE: WMB) will be there with the best transport, storage and delivery solutions to reliably fuel the clean energy economy. Headquartered in Tulsa, Oklahoma, Williams is an industry-leading, investment grade C-Corp with operations across the natural gas value chain including gathering, processing, interstate transportation, storage, wholesale marketing and trading of natural gas and natural gas liquids. With major positions in top U.S. supply basins, Williams connects the best supplies with the growing demand for clean energy. Williams owns and operates more than 33,000 miles of pipelines system wide – including Transco, the nation’s largest volume and fastest growing pipeline – and handles approximately one third of the natural gas in the United States that is used every day for clean-power generation, heating and industrial use. Learn how the company is leveraging its nationwide footprint to incorporate clean hydrogen, NextGen Gas and other innovations at www.williams.com.

This news release and accompanying materials may include certain financial measures – adjusted EBITDA, adjusted income (“earnings”), adjusted earnings per share, available funds from operations and dividend coverage ratio – that are non-GAAP financial measures as defined under the rules of the SEC.

Our segment performance measure, modified EBITDA, is defined as net income (loss) before income (loss) from discontinued operations, income tax expense, net interest expense, equity earnings from equity-method investments, other net investing income, impairments of equity investments and goodwill, depreciation and amortization expense, and accretion expense associated with asset retirement obligations for nonregulated operations. We also add our proportional ownership share (based on ownership interest) of modified EBITDA of equity-method investments.

Adjusted EBITDA further excludes items of income or loss that we characterize as unrepresentative of our ongoing operations. Such items are excluded from net income to determine adjusted income and adjusted earnings per share. Management believes this measure provides investors meaningful insight into results from ongoing operations.

Available funds from operations is defined as cash flow from operations excluding the effect of changes in working capital and certain other changes in noncurrent assets and liabilities, reduced by preferred dividends and net distributions to noncontrolling interests.

This news release is accompanied by a reconciliation of these non-GAAP financial measures to their nearest GAAP financial measures. Management uses these financial measures because they are accepted financial indicators used by investors to compare company performance. In addition, management believes that these measures provide investors an enhanced perspective of the operating performance of assets and the cash that the business is generating.

Neither adjusted EBITDA, adjusted income, nor available funds from operations are intended to represent cash flows for the period, nor are they presented as an alternative to net income or cash flow from operations. They should not be considered in isolation or as substitutes for a measure of performance prepared in accordance with United States generally accepted accounting principles.

Reconciliation of "Net Income (Loss)" to “Modified EBITDA” and Non-GAAP “Adjusted EBITDA”
(UNAUDITED)
			2022																		2023
(Dollars in millions)			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year						1st Qtr
Net income (loss)			$	392		$	407		$	621		$	697		$	2,117					$	957
Provision (benefit) for income taxes			118			(45)			96			256			425						284
Interest expense			286			281			291			289			1,147						294
Equity (earnings) losses			(136)			(163)			(193)			(145)			(637)						(147)
Other investing (income) loss - net			(1)			(2)			(1)			(12)			(16)						(8)
Proportional Modified EBITDA of equity-method investments			225			250			273			231			979						229
Depreciation and amortization expenses			498			506			500			505			2,009						506
Accretion expense associated with asset retirement obligations for nonregulated operations			11			13			12			15			51						15
Modified EBITDA			$	1,393		$	1,247		$	1,599		$	1,836		$	6,075					$	2,130
Transmission & Gulf of Mexico			$	697		$	652		$	638		$	687		$	2,674					$	715
Northeast G&P			418			450			464			464			1,796						470
West			260			288			337			326			1,211						304
Gas & NGL Marketing Services			13			(282)			20			209			(40)						567
Other			5			139			140			150			434						74
Total Modified EBITDA			$	1,393		$	1,247		$	1,599		$	1,836		$	6,075					$	2,130
Adjustments (1):
Transmission & Gulf of Mexico			$	—		$	—		$	33		$	13		$	46					$	13
West			—			8			—			—			8						(18)
Gas & NGL Marketing Services			52			288			18			(60)			298						(336)
Other			66			(47)			(13)			(15)			(9)						6
Total Adjustments			$	118		$	249		$	38		$	(62)		$	343					$	(335)
Adjusted EBITDA:
Transmission & Gulf of Mexico			$	697		$	652		$	671		$	700		$	2,720					$	728
Northeast G&P			418			450			464			464			1,796						470
West			260			296			337			326			1,219						286
Gas & NGL Marketing Services			65			6			38			149			258						231
Other			71			92			127			135			425						80
Total Adjusted EBITDA			$	1,511		$	1,496		$	1,637		$	1,774		$	6,418					$	1,795
(1) Adjustments by segment are detailed in the "Reconciliation of Income (Loss) Attributable to The Williams Companies, Inc. to Non-GAAP Adjusted Income," which is also included in these materials.