Why Is The Williams Companies (WMB) Up 6.6% Since Last Earnings Report?

It has been about a month since the last earnings report for Williams Companies, Inc. (The) (WMB). Shares have added about 6.6% in that time frame, outperforming the S&P 500.But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is The Williams Companies due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Williams Companies, Inc. (The) before we dive into how investors and analysts have reacted as of late.Williams Q3 Earnings and Revenues Miss Estimates, Expenses Down Y/YThe Williams Companies reported third-quarter 2025 adjusted earnings per share of 49 cents, which missed the Zacks Consensus Estimate of 51 cents, mainly due to weak performance in its West and Northeast G&P segments, which came in 1.6% and 1% below the consensus mark, respectively. However, the bottom line increased from the year-ago period’s level of 43 cents. This can be attributed to the strong year-over-year results delivered by the company’s Transmission & Gulf of America, Gas & NGL Marketing Services, and Other segments.The Tulsa, OK-based oil and gas storage and transportation company’s revenues of $2.9 billion missed the Zacks Consensus Estimate by $113 million. The underperformance was primarily due to weaker-than-expected product sales revenues, which declined 27.5% compared with the Zacks Consensus Estimate. However, the figure increased from the year-ago quarter’s reported number of $2.7 billion, supported by higher service revenues, including those tied to commodity contracts, stronger product sales and gains from commodity derivative instruments.Adjusted EBITDA totaled $1.9 billion in the quarter under review, which was up 12.7% year over year. Cash flow from operations amounted to $1.4 billion, up 15.8% from the corresponding quarter of 2024.Advanced Growth Initiatives & Strategic ExecutionWilliams advanced key growth projects and successfully executed the strategic priorities, underscoring its long-term infrastructure leadership. The company placed into service major projects across its footprint, including Transco’s Alabama-Georgia Connector, Commonwealth Energy Connector and Northwest Pipeline’s Stanfield South expansion, further strengthening natural gas capacity and reliability.In the Gulf of America, Williams brought online the Shenandoah and Salamanca deepwater expansions while also completing the Louisiana Energy Gateway and Haynesville West expansion, emphasizing strong execution in high-value basins.The firm expanded the scope of its Socrates platform by roughly $400 million to $2 billion and unveiled two new Power Innovation initiatives, highlighting its pivot toward lower-carbon energy solutions. Williams also signed precedent agreements for Pine Prairie storage expansion, Mountain West’s Green River West expansion and Transco’s Wharton West expansion, demonstrating strong commercial momentum.Additionally, the company advanced the wellhead-to-water strategy by selling Haynesville E&P assets and forming a strategic partnership with Woodside, reinforcing its commitment to capital-efficient growth and enhanced value creation.Segmental AnalysisTransmission & Gulf of America: The segment reported an adjusted EBITDA of $947 million, up 14.1% from the year-ago quarter’s level. Moreover, the figure beat the Zacks Consensus Estimate of $943 million. The increase was driven by stronger net rates and expansion projects at Transco, as well as incremental Gulf volumes.West: This segment focuses on the gathering and processing of assets in the Western United States. Adjusted EBITDA for this segment totaled $367 million, up 11.2% from the prior-year quarter’s level of $330 million. The strong performance was driven by the Louisiana Energy Gateway project coming into service, new volumes from the 2025 Rimrock and Saber acquisitions and increased volumes in the Haynesville. However, the figure was down from the Zacks Consensus Estimate of $373 million.Northeast G&P: Driven primarily by increased gathering volumes at Bradford, the segment registered an adjusted EBITDA of $505 million. This represents a 4.3% increase from $484 million in the year-earlier quarter, though it missed the Zacks Consensus Estimate by 1%.Gas & NGL Marketing Services: The segment posted $11 million in adjusted EBITDA, a year-over-year increase from $4 million and a notable beat versus the Zacks Consensus Estimate of a loss of $2.14 million.Other: This segment posted an adjusted EBITDA of $90 million, representing a 63.6% increase from $55 million in the year-earlier quarter. The figure was also 18.4% higher than the Zacks Consensus Estimate.Costs, Capex & Balance SheetIn the reported quarter, total costs and expenses of $1.8 billion decreased almost 1% from the year-ago quarter’s figure.Total capital expenditure (Capex) was $2.9 billion. As of Sept. 30, 2025, the company had cash and cash equivalents of $70 million and a long-term debt of $25.6 billion, with a debt-to-capitalization of 67.1%.2025 GuidanceThe company expects the midpoint of its 2025 adjusted EBITDA guidance to remain at $7.75 billion, within a projected range of $7.6 billion to $7.9 billion. Williams has increased its 2025 growth capital spending forecast by $500 million, now estimating between $3.95 billion and $4.25 billion, tied to its recently announced investment in Woodside Energy’s Louisiana LNG project.Maintenance capital expenditures are still expected to range from $650 million to $750 million, excluding spending related to emissions-reduction and modernization initiatives. The company continues to anticipate a 2025 leverage ratio midpoint of approximately 3.7x and has raised its annual dividend by 5.3% to $2 per share for 2025 from $1.90 in 2024.How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended upward during the past month.VGM ScoresCurrently, The Williams Companies has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a grade of D on the value side, putting it in the bottom 40% for this investment strategy.Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, The Williams Companies has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Performance of an Industry PlayerThe Williams Companies belongs to the Zacks Oil and Gas - Production and Pipelines industry. Another stock from the same industry, Kinder Morgan (KMI), has gained 3.9% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.Kinder Morgan reported revenues of $4.15 billion in the last reported quarter, representing a year-over-year change of +12.1%. EPS of $0.29 for the same period compares with $0.25 a year ago.For the current quarter, Kinder Morgan is expected to post earnings of $0.36 per share, indicating a change of +12.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -2.1% over the last 30 days.Kinder Morgan has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI stocks now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Williams Companies, Inc. (The) (WMB): Free Stock Analysis Report Kinder Morgan, Inc. (KMI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks