WILLIAMS COMPANIES INC

Williams’ Consolidated Overview

The following table and discussion is a summary of Williams’ consolidated results of operations for the three months ended March 31, 2025, compared to the three months ended March 31, 2024, and should be read in conjunction with the results of operations by segment, as discussed in further detail following this consolidated overview discussion.

•Higher revenues associated with expansion projects at the Transmission & Gulf of America segment;

•Higher volumes from the August 2024 Discovery Acquisition at the Transmission & Gulf of America segment (See Note 3 – Acquisitions and Divestitures) and January 2025 Rimrock Asset Purchase at the West segment;

•Higher revenues associated with reimbursable expenses, which is offset by similar changes in the charges reflected in Other segment costs and expenses; partially offset by

•Lower revenues in the Eagle Ford Shale region due to lower MVC revenue.

The net sum of Product sales and service revenues – commodity consideration, Product costs and net processing commodity expenses, and net realized gains and losses on commodity derivatives related to sales of product and shrink gas purchases for processing plants for the reportable segments comprise Commodity Margins. Service revenues - commodity consideration represent payments received in the form of commodities for processing services provided. Most of these commodity volumes are sold during the month processed and are offset within Product costs and net processing commodity expenses. The sum of Product sales and net realized gains and losses on commodity derivatives related to the upstream operations comprise Net realized product sales.

The Product sales and service revenues – commodity consideration increase primarily consists of:

•Higher marketing sales activities primarily related to higher NGLs marketing sales volumes and prices, including volumes from the Discovery Acquisition, and higher net natural gas marketing sales impacted by favorable prices and lower storage costs at the Gas & NGL Marketing Services segment;

•Higher product sales from upstream operations primarily related to higher volumes from the November 2024 Crowheart Acquisition at Other (See Note 3 – Acquisitions and Divestitures);

•Higher equity NGL sales and commodity consideration revenues associated with NGL production activity primarily driven by the Discovery Acquisition at the Transmission & Gulf of America segment.

As Williams is acting as agent for natural gas marketing customers, its natural gas marketing product sales are presented net of the related costs of those activities within the Gas & NGL Marketing Services segment.

Net gain (loss) from commodity derivatives includes realized and unrealized gains and losses from derivative instruments reflected within Total revenues primarily in the Gas & NGL Marketing Services segment, as well as at Other (see Note 9 – Commodity Derivatives).

Williams experiences significant earnings volatility from the fair value accounting required for the derivatives used to hedge a portion of the economic value of the underlying transportation and storage capacity portfolios as well as upstream-related production. However, the unrealized fair value measurement gains and losses are generally offset by valuation changes in the economic value of the underlying production or transportation and storage capacity contracts, which are not recognized until the underlying transaction occurs.

The Product costs and net processing commodity expenses increase primarily consists of:

•Higher marketing activities primarily related to higher NGLs marketing purchases, including from the Discovery Acquisition;

•Higher shrink natural gas purchases and commodity consideration costs associated with Williams’ equity NGL production activities primarily due to the Discovery Acquisition at the Transmission & Gulf of America segment.

Operating and maintenance expenses increased primarily due to operating costs of the assets acquired at the Transmission & Gulf of America and West segments, as well as at Other and higher electricity and fuel (substantially offset by higher Service revenues discussed above).

Depreciation, depletion, and amortization expenses increased primarily related to the assets acquired at the Transmission & Gulf of America and West segments, as well as at Other, and an increase at Transco related to additional assets placed in service.

Interest expense was primarily impacted by Williams’ 2024 and 2025 debt issuances, partially offset by 2024 and 2025 debt retirements (see Note 7 – Debt and Banking Arrangements) and the absence of imputed interest on deferred consideration obligations related to previous acquisitions.

Period-Over-Period Operating Results – Williams’ Segments

Williams’ CODM evaluates segment operating performance based upon Modified EBITDA. Note 11 – Segment Disclosures includes a reconciliation of this non-GAAP measure to Income (loss) before income taxes. Management uses Modified EBITDA because it is an accepted financial indicator used by investors to compare company performance. In addition, management believes that this measure provides investors an enhanced perspective of the operating performance of Williams’ assets. Modified EBITDA should not be considered in isolation or as a substitute for a measure of performance prepared in accordance with GAAP.

(1)Included as a component of Commodity margins.

Transmission & Gulf of America Modified EBITDA increased primarily due to higher Service revenues, partially offset by higher Other segment costs and expensesand lower Proportional Modified EBITDA of equity-method investments.

•A $44 million increase in Transco’s revenues primarily associated with expansion projects placed in service, notably Regional Energy Access in August 2024 and Southside Reliability Enhancement in November 2024;

•A $22 million increase primarily in gathering revenues due to the Discovery Acquisition in August 2024 (see Note 3 – Acquisitions and Divestitures);

•A $13 million increase in Gulf Coast Storage’s revenues primarily associated with higher storage rates;

•A $10 million increase in the Gulf Coast region primarily due to higher gathering and transportation volumes from the Whale expansion project that went in-service in January 2025 and production handling volumes from a new well at Gulfstar One in the Pickerel field, partially offset by shut-ins for maintenance activities at Devil’s Tower in the Taggart and Kodiak fields.

Commodity margins increased primarily due to the Discovery Acquisition.

Other segment costs and expenses increased primarily due to:

•Higher operating expenses and administrative costs including increased operating costs resulting from Williams’ Discovery Acquisition and higher employee-related costs; partially offset by the absence of acquisition and transition costs related to Williams’ Gulf Coast Storage Acquisition in January 2024 (see Note 3 – Acquisitions and Divestitures);

•Unfavorable change in equity AFUDC primarily as a result of decreased capital expenditures at Williams’ regulated businesses;

•Unfavorable change in the amortization of regulatory assets and liabilities at Transco;

•Unfavorable change in the deferral of ARO-related depreciation at Transco.

Proportional Modified EBITDA of equity-method investments decreased primarily due to lower proportional results as Discovery was consolidated.

Northeast G&P

(1)Included as a component of Commodity margins.

Northeast G&P Modified EBITDA increased primarily due to higher Service revenues and higher Proportional Modified EBITDA of equity-method investments, partially offset by higher Other segment costs and expenses.

•A $12 million increase in revenues at the Northeast JV primarily related to higher gathering and processing rates and volumes;

•An $8 million increase in revenues associated with reimbursable expenses, which is offset by similar changes in the charges reflected in Other segment costs and expenses.

Other segment costs and expenses increased primarily due to higher operating expenses, including higher electricity and fuel (substantially offset by higher Service revenues discussed above).

Proportional Modified EBITDA of equity-method investments increased at Laurel Mountain Midstream, LLC primarily due to higher commodity-based gathering rates and at Blue Racer primarily due to annual rate escalations. The increase was partially offset by a decrease at Aux Sable Liquid Products LP due to the sale of Williams’ investment in the third quarter of 2024. Additionally, Appalachia Midstream Investments decreased primarily driven by lower volumes partially offset by higher gathering rates.

West

(1) Included as a component of Commodity margins.

West Modified EBITDA increased primarily due to higher Commodity marginsand higher Proportional Modified EBITDA of equity-method investments.

•A $9 million increase in the DJ Basin region primarily due to higher gathering volumes associated with the Rimrock Asset Purchase;

•A $6 million increase in the Barnett Shale region primarily due to higher gathering rates driven by favorable commodity pricing, partially offset by lower gathering volumes due to decreased producer activity; substantially offset by

•A $13 million decrease in the Eagle Ford Shale region primarily due to lower MVC revenue.

Commodity margins increased $22 million primarily due to a $13 million increase in marketing margins from increased sales activities associated primarily with higher prices and $11 million higher margins from equity NGLs primarily due to higher net realized NGL sales prices.

Proportional Modified EBITDA of equity-method investments increased primarily due to higher volumes at OPPL.

Gas & NGL Marketing Services

(1) Included as a component of Commodity margins.

Gas & NGL Marketing Services Modified EBITDA increased primarily due to a favorable change in Net unrealized gain (loss) from commodity derivative instruments, partially offset by lower Commodity margins.

Commodity margins decreased $45 million primarily due to a $38 million decrease in Williams’ natural gas marketing margins, including $24 million of lower natural gas transportation capacity marketing margins due to unfavorable net realized pricing spreads. The decrease in its natural gas marketing margins also includes $14 million of lower natural gas storage marketing margins primarily driven by less favorable realized derivative gains, partially offset by lower storage fees and higher withdrawals from colder winter weather in first quarter 2025 compared to 2024.

The change in Net unrealized gain (loss) from commodity derivative instruments within Segment revenues and Net processing commodity expenses relates to derivative contracts that are not designated as hedges for accounting purposes. The change from 2024 is primarily due to a change in forward commodity prices relative to Williams’ hedge positions in 2025 compared to 2024.

Other

(1) Included as a component of Net realized product sales.

Modified EBITDA from upstream operations, corporate, and other business activities decreased slightly primarily due to:

•A $32 million unfavorable change in Net unrealized gain (loss) from derivative instruments due to a change in forward commodity prices relative to hedge positions;

•A $9 million unfavorable change in other costs and expenses primarily related to upstream operations, including an increase from the Crowheart Acquisition in November 2024; partially offset by

•A $40 million increase in Net realized product sales from upstream operations primarily due to higher production volumes and higher net realized commodity prices associated with Williams’ Wamsutter region production, including the Crowheart Acquisition. The first quarter of 2025 also benefited from higher net realized commodity prices associated with Williams’ South Mansfield production in the Haynesville Shale region.