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what it is
Williams moves, processes, and markets natural gas across the U.S., so utilities and businesses get fuel without thinking about the pipe.
how it gets paid
Last year Williams Cos made $14.9B in revenue. Transmission & Gulf of Mexico was the main engine at $6.7B, or 45% of sales.
why it's growing
Revenue grew 17.9% last year. Revenues climbed to around $3.198 billion, aided by transco’s net rate increases and additional pipeline capacity placed into service in 2025.
what just happened
Williams just posted a 20.0% EPS beat, but the bigger story is that the stock already trades like good news is standard.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
90/100 earnings predictability — you can trust these numbers
32.3x trailing p/e — you're paying up for this one
3.2% dividend yield — cash in your pocket every quarter
12.5% return on capital — nothing to write home about
xvary composite: 58/100 — below average
What they do
Williams moves, processes, and markets natural gas across the U.S., so utilities and businesses get fuel without thinking about the pipe.
Pipelines are hard to copy because steel in the ground beats a slide deck. Williams is adding 4.2 billion cubic feet per day of capacity from 2024 to 2027, and its price stability score is 85 out of 100. If your gas already flows through its network, switching is not a button you click.
How they make money
$14.9B
annual revenue · their business grew +17.9% last year
Transmission & Gulf of Mexico
$6.7B
+9.0%
Northeast G&P
$3.1B
+7.0%
West
$2.6B
+6.0%
Gas marketing services
$1.8B
+28.0%
Other
$0.7B
+0.0%
The products that matter
moves and processes natural gas
Natural Gas Infrastructure
$14.9B revenue · 100% of sales
it's the entire $14.9B business, and it still converts that scale into a 22.3% net profit margin. That's why this does not trade like a random pipeline operator.
100% of revenue
regulated interstate pipeline network
Transco Pipeline
key revenue driver
Recent commentary tied roughly $3.198B of fourth-quarter revenue to net rate increases and extra capacity placed into service in 2025. That's the model in human-speak: add pipe, put it into service, then collect on it.
rate base story
gas supply for power demand
Socrates Project
second-half 2026 catalyst
Management frames this as a second-half 2026 start tied to gas-fired power generation for data center customers. If it arrives on time, the growth story extends. If it slips, you are mostly left owning the existing pipe at a premium multiple.
next leg
Key numbers
32.3x
trailing p/e
P/E → price-to-earnings → how much you pay for each $1 of profit. At 32.3x, you are paying up for a pipeline.
28.2%
operating margin
Operating margin → profit after running the business → real evidence the pipe network throws off cash.
$25.6B
long-term debt
Debt → borrowed money → a big project backlog looks better when funding costs stay under control.
3.2%
dividend yield
Dividend yield → cash paid to shareholders each year → you get income, but not enough to paper over a bad entry price.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 2 — safer than 80% of stocks
- price stability 85 / 100
- long-term debt $25.6B (24% of capital)
- net profit margin 22.5% — keeps 22 cents of every dollar in revenue
- return on equity 32% — $0.32 profit for every $1 investors have put in
B++ with risk rank and net profit margin standing out. your money faces less risk here than at most public companies.
Total return vs. market
You invested $10,000 in WMB 3 years ago → it's now worth $24,760.
The index would have given you $13,880.
source: institutional data · total return
What just happened
beat estimates
Williams just posted a 20.0% EPS beat, but the bigger story is that the stock already trades like good news is standard.
Yahoo shows last EPS at $0.72 versus a $0.60 estimate. lists adjusted fourth-quarter profit at $0.55 per share, so you should treat quarter-to-quarter EPS presentation with caution and focus on the operating trend. EDGAR shows latest-quarter revenue at $11.1B, up 217% vs. prior year.
$3.5B
revenue
$0.72
eps
217%
revenue growth
the number that mattered
The 20.0% earnings beat matters because this stock only has about 12% upside to Value Line's $76 target, so it needs clean execution to keep climbing.
-
williams posted solid fourth-quarter results.revenues climbed to around $3.198 billion, aided by transco’s net rate increases and additional pipeline capacity placed into service in 2025. the top line also benefited from higher gulf of mexico volumes and greater gathering throughput, including contributions from the rimrock and saber acquisitions. still, the company posted an impairment charge of $187 million tied to the planned sale of midcontinent gathering assets, while depreciation and interest costs rose.
-
overall, these factors netted an adjusted profit of $0.55 per share.
-
we expect improved performance in 2026.
-
service revenues should advance from the additional transmission capacity that came online last year, including the southeast energy connector and the louisiana energy gateway.the first phase of the socrates power-fueling capital projects is slated to begin operating during the second half of 2026, providing throughput for gas-fired electricity-generation data center customers. elevated throughput to lng facilities should bolster the top line, while completed deepwater projects should add incremental gulf volumes. still, rising capital expenditures will likely lead to increased depreciation and interest expenses.
-
overall, we project earnings per share of $2.40 in 2026.
source: company earnings report, 2026
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What could go wrong
the risk is not that Williams suddenly stops being a pipeline company. the risk is that a stock at 32.3x trailing earnings is treating predictable growth like guaranteed growth.
med
gas demand softens and volumes stop carrying the system
Williams still lives on moving natural gas. If industrial demand, power demand, or producer activity cools off, pressure shows up across the network.
impact: this puts the full $14.9B revenue base under weaker throughput assumptions.
med
new capacity and rate-driven growth slow down
Recent strength was tied to Transco net rate increases and added capacity placed into service in 2025. If that cadence fades, the recent $3.198B quarter starts looking more like a peak than a base.
impact: the $2.40 2026 EPS bar gets harder to defend if new pipe stops translating into new earnings.
med
Socrates slips past the second half of 2026
The data-center power angle is part of the next growth chapter. If the first phase starts later than expected, investors are left with the existing pipeline business and a growth story pushed to the right.
impact: at 32.3x trailing earnings, the stock has less room for delay than a cheaper midstream name would.
If volumes soften or projects slip, the business still exists. The thing that changes fast is the multiple you are willing to pay for it.
source: institutional data · regulatory filings · risk analysis
Pay attention to
calendar
second-half 2026 Socrates start
This is the visible next catalyst in the page data. On-time startup supports the growth case. Delay means more waiting at a premium valuation.
metric
the $2.40 EPS bar for 2026
That is the street's current earnings marker. If estimates start slipping, the stock's valuation gets harder to defend.
trend
whether quarterly revenue stays near the recent $3.198B–$3.5B range
You want recent capacity additions to show up in reported revenue, not just in commentary.
risk
institutional conviction after three quarters of net buying
764 buyers versus 683 sellers is constructive, not euphoric. If that flow reverses while growth moderates, sentiment cools quickly.
Analyst rankings
short-term outlook
below average
momentum score 4 — analysts see underperformance risk from here. in human-speak: they like the business more than the next 12 months of stock action.
risk profile
above average
stability score 2 — safer than roughly 80% of stocks. This is a steadier operator than the typical energy name.
chart momentum
average
technical score 3 — the chart is behaving normally. No screaming signal, no obvious collapse.
earnings predictability
90 / 100
Management tends to give reliable guidance. You are usually buying a script here, not a plot twist.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 764 buyers vs. 683 sellers in 3q2025. total institutional holdings: 1.1B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$55
$96
$68
current price
$76
target midpoint · +12% from current · 3-5yr high: $85 (+25% · 9% ann'l return)
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