US pipeline operator Williams Companies on Tuesday forecast 2026 profit above analysts' expectations as new pipeline and offshore projects drive growth and natural gas demand continues to rise.
Williams, which also increased its annual dividend by five per cent to $2.10 per share for 2026, saw its shares rise 2.8 per cent in morning trade.
Rising electricity use from crypto-mining, households, businesses and an AI-driven boom in data centres is set to boost natural gas demand this year, strengthening pipeline operators' expectations of sustained long-term need for gas infrastructure.
Williams completed 1.1 billion cubic feet per day (bcfpd) of pipeline transmission projects in 2025, while another 7.1 bcfpd of pipeline projects are currently in execution.
The pipeline operator added a new power-innovation project, "Socrates the Younger", with 340 megawatts (MW) of behind-the-meter capacity under a 10-year agreement to its development pipeline. The project represents a capital cost of about $1.3 billion, the company said on a conference call.
Williams added it had upsized its Aquila and Apollo projects, adding another $900 million in new investment and extending the contract lengths of both projects to 12.5 years.
"We continue to believe Williams is among the best positioned in our coverage to benefit from growing natural gas and power demand with its large backlog of attractive growth projects anchored by Transco and Power Innovation projects," said RBC Capital Markets analyst Elvira Scotto.
The Tulsa, Oklahoma-based company expects its 2026 adjusted earnings to be between $2.20 and $2.38 per share, compared with the average of analysts' estimates of $2.28 per share, according to data compiled by LSEG.
It also expects 2026 growth capital spending of $6.1 billion to $6.7 billion, reflecting continued investment in pipeline expansions and power innovation projects.
However, the company's adjusted profit of 55 cents per share for the quarter ended December 31 missed analysts' estimates of 57 cents per share.
(Reporting by Katha Kalia in Bengaluru; Editing by Leroy Leo and Vijay Kishore)
