Williams (WMB) Q3 2026 Earnings: Socrates Power Project Online Early, Capex on Plan

Williams (WMB) reported third-quarter 2026 earnings that confirmed execution on its first data center power project, Socrates. The company published its 8-K earnings release and 10-Q on November 2, 2026, and held its earnings call on November 3, covering the quarter ended September 30 [1][2][3]. Third-quarter Adjusted EBITDA was $2.039 billion, up 6% year over year, and the company maintained its expectation to finish in the upper half of its $8.3 billion to $8.5 billion full-year guidance [1].

Four questions framed this quarter: whether the power projects would stay on schedule with capex and leverage under control, whether the pipeline segment could keep growing after the rate-case benefit faded, whether rich-gas processing in the Northeast could sustain its growth rate, and how the legacy Haynesville business performed once the acquisition is excluded. The power project stayed on schedule and within its funding plan. The pipeline segment grew 8.8%, but most of the increase came from power and storage. Northeast G&P grew 7.3%. Growth in the West segment came mostly from Momentum, which joined in September. Taken together, growth is now more concentrated in power and storage, and the pipeline reservation fees and legacy West business still need to show growth in the fourth quarter.

Williams is one of the largest natural gas infrastructure companies in the US and says it moves about one third of the nation's natural gas [1]. It earns most of its money from fixed reservation fees that gas utilities, power plants and LNG exporters pay on interstate pipelines such as Transco. It also gathers and processes gas for producers, and it builds behind-the-meter gas-fired power for data center customers, meaning power plants built next to the customer's site that supply it directly [2].

Socrates came online on or ahead of schedule

Socrates moved from construction into revenue as planned. According to the 10-Q, Socrates South was placed into service in late July 2026, and Socrates North is expected to enter service later in the fourth quarter of 2026; the two phases have an expected combined capacity of 556 MW [2]. The earnings release said North was on track for service by mid-November, and the CEO said on the call that the second phase would come online that week, ahead of schedule and within budget [1][3]. That timing meets the earlier plan for a fourth-quarter start.

Power revenue is already flowing into segment results, but its profit contribution is not disclosed separately. The 10-Q shows that power revenue in the Transmission, Power & Gulf (TP&G) segment rose $53 million year over year in the third quarter, mainly from Socrates South, and that figure includes reimbursable fuel revenue [2]. The 10-Q does not explain the difference between its 556 MW figure and the earlier 400 MW description. The gap may include redundant capacity and should not be read as an increase in contracted power supply.

Capital spending and leverage stayed within plan

Third-quarter capital spending matched the pace implied by full-year guidance. Capital investments, excluding acquisitions and reimbursable long-lead power equipment, were $2.727 billion in the quarter, compared with $1.053 billion a year earlier, and $6.011 billion for the first nine months. Full-year growth capex guidance of $7.3 billion to $7.9 billion was unchanged [1].

Leverage rose at quarter end, but the year-end outlook was not raised. Debt to trailing four-quarter Adjusted EBITDA was 3.80x at quarter end, compared with 3.67x at the end of the second quarter [1]. Debt already includes the financing for the Momentum acquisition, while trailing EBITDA includes less than one month of Momentum. The CFO expects year-end leverage of about 3.75x, treating Momentum on a full-year run-rate basis and excluding any new power projects [3].

The joint venture partner funded on schedule and is taking a larger share of project profit. The partner in the five power projects contributed $3.74 billion in July and another $1 billion in October [2]. The joint venture reduces Williams' capital burden, but 49% of project profit goes to the partner. Net income attributable to noncontrolling interests rose to $67 million in the third quarter from $36 million a year earlier [1][2]. Available funds from operations (AFFO), the cash from operations available for distribution, were $1.589 billion, up 10% year over year [1].

Conclusion

The quarter confirmed Williams' ability to execute in power, but its sources of growth became more concentrated. TP&G segment profit grew 8.8%, yet regulated pipeline revenue was flat year over year; the increase came mainly from power revenue and higher Gulf Coast storage rates [1][2]. Excluding Momentum's $40 million contribution, the legacy West business was about 1.6% lower than a year earlier [1][2]. On cash, capital investment still far exceeds operating cash flow, and the gap is being filled by joint venture contributions and debt issuance.

The next evidence will come from the fourth quarter and from new power contracts. The fourth quarter needs to confirm that Socrates is fully online, show Momentum's first full-quarter contribution, and test whether the pipeline expansions placed in service in October restore growth in regulated revenue [2]. Management plans to announce one to two more power projects by year-end, which remains a target. The CFO said financing costs for new projects are already higher than the 6.35% achieved in the July Blackstone deal, and the financing structure will determine whether leverage stays within 4.0x [3].

Sources

• [1] WMB 8-K filed 2026-11-02 (3Q26 earnings release and data book)
• [2] WMB 10-Q filed 2026-11-02 (3Q26)
• [3] WMB earnings call 2026-11-03 (3Q26)