DATE: Wednesday, August 2, 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 and six months ended June 30, 2023.

•GAAP net income of $547 million, or $0.45 per diluted share (EPS) – up 36% vs. 2Q 2022

•Adjusted net income of $515 million, or $0.42 per diluted share (Adjusted EPS) – up 5% vs. 2Q 2022

•Adjusted EBITDA of $1.611 billion – up $115 million or 8% vs. 2Q 2022

•Cash flow from operations (CFFO) of $1.377 billion – up $279 million or 25% vs. 2Q 2022

•Available funds from operations (AFFO) of $1.215 billion – up $85 million or 8% vs. 2Q 2022

•Dividend coverage ratio of 2.23x (AFFO basis)

•Repurchased $56 million in shares through opportunistic stock buyback program

•Record gathering volumes of 18.03 Bcf/d

•Continued improvement of balance sheet with leverage ratio of 3.50x

•Continued construction of Regional Energy Access with partial in service expected ahead of schedule in 4Q 2023

•Received FERC certificate on Southside Reliability Enhancement Project

•Received favorable environmental assessment on Texas to Louisiana Energy Pathway Project

•Filed FERC applications for Carolina Market Link and Alabama to Georgia Connector Projects

•Signed precedent agreement on MountainWest’s Overthrust Westbound Expansion

•Continued execution of modernization and Emissions Reduction Program (ERP) on transmission systems with completion of first ERP project on Transco compressor station

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

“Our natural gas-centric strategy continues to prove its resiliency in a low gas price environment with second-quarter Adjusted EBITDA up 8 percent over the same period last year driven by strong earnings growth across our base business. In addition to record gathering volumes, we also benefited from our first full quarter of contributions from the MountainWest Pipeline transmission and storage assets, which our teams have quickly integrated into our large-scale platforms in the western U.S.

“On the project execution front, we are in full construction on the Regional Energy Access expansion, and expect to bring half of the project in service ahead of schedule this winter to begin moving additional Northeast gas to nearby markets. We are generating value from our 2022 acquisitions with several growth projects underway, including MountainWest’s Overthrust Westbound Expansion. Elsewhere across our footprint, we are progressing on an impressive list of transmission and deepwater Gulf of Mexico projects, which we expect to drive additional growth toward the end of 2024.”

Armstrong added, “As we continue expanding to serve growing markets, we’re also investing in a multi-year modernization program of our large-scale transmission systems, which will reduce emissions and increase earnings. Our recently issued Sustainability Report details this progress as well as ongoing efforts to support communities, environmental stewardship and workforce development and diversity.”

Williams Summary Financial Information			2Q									Year to Date
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						2023			2022
GAAP Measures
Net Income			$547			$400						$1,473			$779
Net Income Per Share			$0.45			$0.33						$1.20			$0.64
Cash Flow From Operations			$1,377			$1,098						$2,891			$2,180
Non-GAAP Measures (1)
Adjusted EBITDA			$1,611			$1,496						$3,406			$3,007
Adjusted Net Income			$515			$484						$1,199			$983
Adjusted Earnings Per Share			$0.42			$0.40						$0.98			$0.80
Available Funds from Operations			$1,215			$1,130						$2,660			$2,320
Dividend Coverage Ratio			2.23		x	2.19		x				2.44		x	2.24		x
Other
Debt-to-Adjusted EBITDA at Quarter End (2)			3.50		x	3.82		x
Capital Investments (3) (4)			$715			$429						$1,240			$745
(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) Year-to-date 2023 capital excludes $1.053 billion acquisition of MountainWest Pipeline Holding company, which closed February 14, 2023. Second quarter 2022 and full-year 2022 capital excludes $933 million for purchase of the Trace Midstream Haynesville gathering assets, which closed April 29, 2022.

Second-quarter 2023 net income increased by $147 million compared to the prior year reflecting the benefit of higher service revenues driven by contributions from recent acquisitions and increased volumes and rates in the Northeast G&P segment, as well as a favorable change of $324 million in net unrealized gains/losses on commodity derivatives. These improvements were partially offset by lower results from our upstream business driven by lower prices, lower commodity marketing margins, and higher operating and administrative expenses, including the impact from recent acquisitions. The tax provision increased primarily due to higher pretax income and the absence of $134 million associated with the release of valuation allowances on deferred income tax assets and federal income tax settlements recorded in the prior year. The second-quarter and year-to-date 2023 periods also reported a loss from discontinued operations associated with an adverse legal ruling involving former refinery operations.

For year-to-date 2023, net income increased $694 million compared to the prior year reflecting a favorable change of $774 million in net unrealized gains/losses on commodity derivatives. Other drivers of the year-to-date increase are similar to those described for the quarterly comparison, except that improved commodity marketing margins more than offset lower NGL processing margins for the year-to-date period.

Cash flow from operations for the second-quarter and year-to-date 2023 periods increased compared to 2022 primarily due to favorable net changes in working capital. The year-to-date improvement also reflected higher operating results exclusive of non-cash items.

Second-quarter 2023 Adjusted EBITDA increased by $115 million over the prior year, driven by the previously described higher service revenues, partially offset by lower commodity marketing margins, reduced upstream results, and higher operating and administrative expenses. Year-to-date 2023 Adjusted EBITDA increased by $399 million over the prior year, driven by similar factors, except that commodity margins were overall improved.

Second-quarter 2023 Adjusted Net Income improved by $31 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, amortization of certain assets from the Sequent acquisition, and favorable income tax benefits. Year-to-date Adjusted Net Income increased by $216 million over the prior year for similar reasons.

Second-quarter 2023 Available Funds From Operations (AFFO) increased by $85 million compared to the prior year primarily due to higher results from continuing operations exclusive of non-cash items. Year-to-date 2023 AFFO increased by $340 million also primarily reflecting higher results from continuing operations exclusive of non-cash items.

Second-quarter and year-to-date 2023 Modified and Adjusted EBITDA improved compared to the prior year driven by the MountainWest and NorTex Midstream acquisitions, as well as higher service revenues. Modified EBITDA for 2023 was further impacted by one-time MountainWest acquisition and transition costs, which are excluded from Adjusted EBITDA.

Second-quarter and year-to-date 2023 Modified and Adjusted EBITDA increased over the prior year driven by increased gathering rates and volumes, partially offset by lower rates at Laurel Mountain Midstream and Bradford joint ventures.

Second-quarter and year-to-date 2023 Modified and Adjusted EBITDA increased compared to the prior year benefiting from higher service revenues reflecting realized gains on natural gas hedges and higher Haynesville volumes, partially offset by lower NYMEX-based rates in the Barnett, as well increased JV EBITDA. The year-to-date period improvement also included contributions from Trace Midstream acquired in April 2022 and lower processing margins due to a short-term gas price spike at Opal early in the year and severe weather impacts.

Second-quarter 2023 Modified EBITDA improved from the prior year primarily reflecting a $382 million net favorable change in unrealized gains/losses on commodity derivatives. Year-to-date 2023 Modified EBITDA improved from the prior year primarily reflecting higher commodity marketing margins and a $772 million net favorable change in unrealized gains/losses on commodity derivatives. The unrealized gains/losses on commodity derivatives are excluded from Adjusted EBITDA.

Second-quarter 2023 Modified EBITDA decreased compared to the prior year primarily reflecting a $58 million net unfavorable change in unrealized gains/losses on commodity derivatives, which is excluded from Adjusted EBITDA.

The second-quarter and year-to-date periods were also impacted by lower results from our upstream business driven by lower prices.

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 second-quarter 2023 Form 10-Q.

The company continues to expect 2023 Adjusted EBITDA between $6.4 billion and $6.8 billion with 2023 growth capex between $1.6 billion to $1.9 billion. 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' second-quarter 2023 earnings presentation will be posted at www.williams.com. The company’s second-quarter 2023 earnings conference call and webcast with analysts and investors is scheduled for Thursday, Aug. 3, 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 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 (AFFO) 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. AFFO may be adjusted to exclude certain items that we characterize as unrepresentative of our ongoing operations.

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			2nd Qtr									Year
Net income (loss)			$	392		$	407		$	621		$	697		$	2,117					$	957		$	494								$	1,451
Provision (benefit) for income taxes			118			(45)			96			256			425						284			175									459
Interest expense			286			281			291			289			1,147						294			306									600
Equity (earnings) losses			(136)			(163)			(193)			(145)			(637)						(147)			(160)									(307)
Other investing (income) loss - net			(1)			(2)			(1)			(12)			(16)						(8)			(13)									(21)
Proportional Modified EBITDA of equity-method investments			225			250			273			231			979						229			249									478
Depreciation and amortization expenses			498			506			500			505			2,009						506			515									1,021
Accretion expense associated with asset retirement obligations for nonregulated operations			11			13			12			15			51						15			14									29
(Income) loss from discontinued operations, net of tax			—			—			—			—			—						—			87									87
Modified EBITDA			$	1,393		$	1,247		$	1,599		$	1,836		$	6,075					$	2,130		$	1,667								$	3,797
Transmission & Gulf of Mexico			$	697		$	652		$	638		$	687		$	2,674					$	715		$	731								$	1,446
Northeast G&P			418			450			464			464			1,796						470			515									985
West			260			288			337			326			1,211						304			312									616
Gas & NGL Marketing Services			13			(282)			20			209			(40)						567			68									635
Other			5			139			140			150			434						74			41									115
Total Modified EBITDA			$	1,393		$	1,247		$	1,599		$	1,836		$	6,075					$	2,130		$	1,667								$	3,797
Adjustments (1):
Transmission & Gulf of Mexico			$	—		$	—		$	33		$	13		$	46					$	13		$	17								$	30
West			—			8			—			—			8						(18)			—									(18)
Gas & NGL Marketing Services			52			288			18			(60)			298						(336)			(84)									(420)
Other			66			(47)			(13)			(15)			(9)						6			11									17
Total Adjustments			$	118		$	249		$	38		$	(62)		$	343					$	(335)		$	(56)								$	(391)
Adjusted EBITDA:
Transmission & Gulf of Mexico			$	697		$	652		$	671		$	700		$	2,720					$	728		$	748								$	1,476
Northeast G&P			418			450			464			464			1,796						470			515									985
West			260			296			337			326			1,219						286			312									598
Gas & NGL Marketing Services			65			6			38			149			258						231			(16)									215
Other			71			92			127			135			425						80			52									132
Total Adjusted EBITDA			$	1,511		$	1,496		$	1,637		$	1,774		$	6,418					$	1,795		$	1,611								$	3,406
(1) Adjustments by segment are detailed in the "Reconciliation of Income (Loss) from Continuing Operations Attributable to The Williams Companies, Inc. to Non-GAAP Adjusted Income," which is also included in these materials.