Q2 2026 Williams Companies Inc Earnings Call Transcript
Key Points
- Achieved in-service for phase one of Socrates, delivering 200 MW of power on time and within budget, demonstrating strong execution capability.
- Raised full-year 2026 EBITDA guidance by $200 million at the midpoint and increased long-term EBITDA growth target to 11%-plus CAGR through 2030.
- Executed strategic acquisition of Momentum Midstream, expanding Haynesville footprint and creating synergies with Transco and Gulf Coast assets.
- Formed Power Innovation financing JV with Blackstone, providing $5.34 billion in committed capital at an attractive 6.35% cost of equity, enhancing project returns.
- Signed customer agreements for Leidy Access, Garden Connector, and upsized Transco Power Express, driving additional demand growth.
- Maintained strong balance sheet with forecasted leverage of 3.75x, preserving capacity for future investments.
- Reported strong Q2 2026 EBITDA growth of 6% year-over-year, with year-to-date growth of 10%.
- Acquisition of Momentum Midstream adds $3.5 billion in cash and debt, increasing leverage temporarily to 3.9x at year-end 2026.
- Second-quarter results were impacted by seasonally lower opportunities in the marketing business.
- Other segment EBITDA declined $14 million due to divestiture of upstream Haynesville assets.
- Guidance remains conservative due to potential hurricane season impacts and weak gas prices during summer months.
- Power Innovation projects face potential equipment delivery timing constraints, which could affect pace of commercialization.
- Long-term growth target of 11% excludes additional power and pipe projects, indicating potential conservatism in outlook.
Good day, everyone, and welcome to the Williams second-quarter 2026 earnings conference call. Today's conference is being recorded. At this time, for opening remarks and introductions, I would like to turn the call over to Ms. Caroline Sardella, Director of Investor Relations. Please go ahead.
Thank you, and good morning, everyone. Thank you for joining us and for your interest in Williams. Yesterday afternoon, we released our earnings press release and the presentation that our President and CEO, Chad Zamarin; and our Chief Financial Officer, John Porter, will speak to you this morning. Also joining us on the call today are Larry Larsen, our Chief Operating Officer; and Rob Wingo, our Executive Vice President of Corporate Strategic Development.
In our presentation materials, you'll find a disclaimer related to forward-looking statements. This disclaimer is important and integral to our remarks, so please review it. Also included in the presentation materials are non-GAAP
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