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Williams Co
(NYSE:WMB)
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Rating:69Neutral
Price Target:
$82.00
â–²(15.36% Upside)
Action:Reiterated
Date:09/10/26
The score is primarily held back by pressured cash conversion (TTM free cash flow slightly negative) and elevated leverage, despite strong profitability. Offsetting that, the earnings call was notably positive with raised 2026 guidance and a higher long-term growth target supported by large strategic transactions and funding, while technicals are constructive and valuation is somewhat expensive relative to the dividend yield.
Positive Factors
Scaled fee-based infrastructure network
Williams’ large-scale gathering, processing, transportation and storage network serves essential natural-gas demand centers. Its fee-based and contract-based services can provide recurring revenue, while network scale and access to multiple customer groups support durable utilization and market relevance.
Negative Factors
Elevated leverage limits flexibility
Higher debt and leverage reduce Williams’ financial flexibility as it pursues acquisitions and major infrastructure projects. Management expects leverage near 3.9x at year-end, leaving less room below its internal ceiling and making project pacing, funding choices, and deleveraging more important.
Read all positive and negative factors
Positive Factors
Negative Factors
Scaled fee-based infrastructure network
Williams’ large-scale gathering, processing, transportation and storage network serves essential natural-gas demand centers. Its fee-based and contract-based services can provide recurring revenue, while network scale and access to multiple customer groups support durable utilization and market relevance.
Read all positive factors
Williams Co Key Performance Indicators (KPIs)
Any
Revenue by Type
Separates fee‑based, commodity‑sensitive, and usage‑based revenue to show how much cash flow is predictable versus exposed to price or seasonal swings. A larger share of contracted, fee‑based revenue means steadier distributions and lower volatility; greater commodity exposure increases earnings and cash‑flow variability.
Separates fee‑based, commodity‑sensitive, and usage‑based revenue to show how much cash flow is predictable versus exposed to price or seasonal swings. A larger share of contracted, fee‑based revenue means steadier distributions and lower volatility; greater commodity exposure increases earnings and cash‑flow variability.
Data provided by:
The Fly
The FlyWilliams Co (WMB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$87.62B
Dividend Yield2.93%
Average Volume (3M)6.71M
Price to Earnings (P/E)28.1
Beta (1Y)0.29
Revenue Growth8.70%
EPS Growth26.28%
CountryUS
Employees5,987
SectorEnergy
Sector Strength52
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)2.52
Shares Outstanding1,223,167,500
10 Day Avg. Volume6,743,110
30 Day Avg. Volume6,711,794
Financial Highlights & Ratios
PEG Ratio1.60
Price to Book (P/B)5.73
Price to Sales (P/S)6.14
P/FCF Ratio73.03
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$86.41Price Target Upside21.57% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
EPS Forecast (FY)2.46
Revenue Forecast (FY)$12.40B
Williams Co Business Overview & Revenue Model
Company Description
The Williams Companies, Inc., alongside its subsidiaries, operates as a prominent energy infrastructure entity, primarily conducting business throughout the United States. The company’s operations are organized into four key segments: Transmission...
How the Company Makes Money
Williams makes money primarily by charging fees for midstream services across the natural gas value chain. Its key revenue streams generally include: (1) Transportation: earning regulated or contract-based fees for moving natural gas on its inters...
Williams Co Earnings Call Summary
Earnings Call Date:Aug 03, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 02, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational execution, meaningful growth initiatives, and strategically accretive transactions (Power Innovation JV and Momentum acquisition) that led to raised guidance and an upgraded long-term EBITDA CAGR target (11%+). Most near-term challenges cited (leverage pacing, seasonality, equipment timing, and some integration uncertainty) are being actively managed and mitigated through financing structures and project pacing. Overall, positives around commercial wins, validated execution (Socrates), funding secured, and expanded footprint materially outweigh the manageable near-term constraints.Positive Updates
Socrates Phase 1 In-Service — Power Innovation Validation
Phase 1 of Socrates reached in-service, delivering 200 MW utility-scale power in under 18 months since commercialization, on time and within budget; commissioning and load testing went smoothly and the site is ramping to full capacity over the coming month, validating the Power Innovation execution model.
Negative Updates
Near-Term Leverage Tightness and Funding Constraints
Management acknowledges 2026–2027 leverage is a constraint (year-end ~3.9x including partial Momentum), requiring careful pacing of new project commercialization; 3.75x normalized leverage still implies limited near-term headroom versus the 4x internal threshold.
Read all updates
Q2-2026 Updates
Positive
Negative
Socrates Phase 1 In-Service — Power Innovation Validation
Phase 1 of Socrates reached in-service, delivering 200 MW utility-scale power in under 18 months since commercialization, on time and within budget; commissioning and load testing went smoothly and the site is ramping to full capacity over the coming month, validating the Power Innovation execution model.
Read all positive updates
Company Guidance
Williams raised full‑year 2026 adjusted EBITDA guidance to $8.3–$8.5 billion (≈$200M midpoint increase) after Q2 EBITDA rose 6% y/y (YTD +10% to $1.92B from $1.8B) and increased its long‑term EBITDA CAGR target to 11%+ through 2030 (from 10%+). The move reflects the $5.5B Momentum Midstream acquisition (funded $3.5B cash/debt, $2B equity) adding ~6 Bcf/d gathering and >4 Bcf/d take‑or‑pay capacity at ~8.5x consolidated EBITDA (~9x net), plus a $5.34B Power Innovation JV (including $4.4B for 49% of expected growth capex and $900M to Williams at a capped 6.35% equity cost) that improves the cash‑flow‑to‑capital multiple by ~56% and includes a buyout option from 2033; balance sheet guidance assumes year‑end leverage ~3.9x (with ~3 months of Momentum) and a normalized full‑year leverage of ~3.75x, preserving in excess of $2B of incremental near‑term capacity vs a 4x ceiling. Key project metrics called out include Socrates Phase 1 delivering 200 MW in <18 months, Transco Power Express upsized by 800 MMcf/d, Shelby Connector 0.75–1.5 Bcf/d (ISD H1 2028) and Delta Access 2.25–3.5 Bcf/d (ISD early 2029).Williams Co Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
64
Positive
Cash Flow
52
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.20B | 11.95B | 10.50B | 10.91B | 10.96B | 10.63B |
| Gross Profit | 8.98B | 5.12B | 6.17B | 6.80B | 5.50B | 4.75B |
| EBITDA | 7.45B | 7.41B | 6.57B | 7.71B | 5.70B | 5.09B |
| Net Income | 3.07B | 2.62B | 2.23B | 3.18B | 2.05B | 1.52B |
Balance Sheet | ||||||
| Total Assets | 60.61B | 58.57B | 54.53B | 52.63B | 48.43B | 47.61B |
| Cash, Cash Equivalents and Short-Term Investments | 203.00M | 63.00M | 60.00M | 2.15B | 152.00M | 1.68B |
| Total Debt | 30.79B | 29.39B | 27.08B | 26.46B | 22.90B | 23.68B |
| Total Liabilities | 45.24B | 43.58B | 39.69B | 37.74B | 34.39B | 33.51B |
| Stockholders Equity | 13.19B | 12.81B | 12.44B | 12.40B | 11.48B | 11.42B |
Cash Flow | ||||||
| Free Cash Flow | -214.00M | 1.00B | 2.40B | 3.37B | 2.61B | 2.70B |
| Operating Cash Flow | 5.99B | 5.90B | 4.97B | 5.94B | 4.89B | 3.94B |
| Investing Cash Flow | -6.08B | -5.45B | -4.86B | -3.89B | -3.38B | -1.47B |
| Financing Cash Flow | -609.00M | -442.00M | -2.20B | -49.00M | -3.04B | -942.00M |
Williams Co Technical Analysis
Negative
71.08
Price Trends
72.69
Negative
72.97
Negative
69.60
Positive
Market Momentum
-0.10
Positive
42.41
Neutral
15.04
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WMB, the sentiment is Negative. The current price of 71.08 is below the 20-day moving average (MA) of 72.80, below the 50-day MA of 72.69, and above the 200-day MA of 69.60, indicating a neutral trend. The MACD of -0.10 indicates Positive momentum. The RSI at 42.41 is Neutral, neither overbought nor oversold. The STOCH value of 15.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WMB.
Williams Co Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $59.23B | 12.43 | 33.42% | 7.43% | 4.79% | 10.20% | |
75 Outperform | $83.81B | 13.23 | 21.21% | 5.79% | 7.38% | 7.45% | |
74 Outperform | $59.71B | 15.96 | 16.28% | 4.57% | 41.83% | 12.74% | |
73 Outperform | $73.45B | 13.11 | 16.77% | 6.37% | 33.27% | 12.55% | |
70 Outperform | $68.52B | 19.70 | 11.11% | 3.84% | 12.44% | 27.19% | |
69 Neutral | $87.62B | 28.13 | 23.86% | 2.93% | 8.70% | 26.28% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
WMB
Williams Co
71.81
13.22
22.55%
ET
Energy Transfer
21.05
4.82
29.74%
EPD
Enterprise Products Partners
38.45
8.57
28.66%
KMI
Kinder Morgan
30.73
4.13
15.52%
OKE
Oneok
93.22
23.43
33.57%
MPLX
MPLX
58.62
11.67
24.86%
Williams Co Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Williams Co Prices $2.75 Billion Senior Notes Offering
Positive
Sep 10, 2026
On September 8, 2026, Williams priced a $2.75 billion underwritten public offering of senior notes across four maturities from 2029 to 2056, with coupons ranging from 5.000% to 6.400% and prices near par. The offering, expected to settle on Septem...
Private Placements and FinancingRegulatory Filings and Compliance
Williams Companies Files Prospectus for Large Share Resale
Neutral
Sep 3, 2026
On September 3, 2026, The Williams Companies, Inc. filed a prospectus supplement to an existing shelf registration statement to register the potential resale of up to 26,874,496 shares of its common stock by certain selling securityholders. The mo...
Executive/Board Changes
Williams Co Announces Upcoming Board Director Retirement
Neutral
Aug 21, 2026
The Williams Companies, Inc. announced that director Michael A. Creel has informed the company that he will not stand for reelection to its Board of Directors at the 2027 Annual Meeting of Stockholders. As a result, he will retire from the board w...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Williams Launches Major Blackstone-Led Power Projects Joint Venture
Positive
Jul 13, 2026
On July 13, 2026, Williams announced a $5.34 billion joint venture investment led by Blackstone Credit Insurance, alongside Apollo and KKR-affiliated vehicles, to fund five behind-the-meter Power Innovation projects: Socrates, Apollo, Aquila, Soc...
Business Operations and StrategyExecutive/Board Changes
Williams Co Adds Two Independent Directors to Board
Positive
Jul 1, 2026
On July 1, 2026, Williams expanded its Board of Directors from ten to twelve members and appointed Lloyd W. “Billy” Helms, Jr. and Robb E. Turner as independent directors, bringing the share of independent directors to eleven. Helms jo...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.