WMB · 10-Q · 2026Q3 · Full report

Operating Expense Trends

WILLIAMS COMPANIES, INC. · 2026-11-02 · Importance 41 · Surprise 48

For the nine months ended September 30, 2026, operating and maintenance expense increased $104 million, or 6%, primarily because of employee-related expenses, operating taxes, electricity and fuel, and costs of Momentum-acquired assets. General and administrative expense increased 22% year over year, driven by employee-related costs including incentive compensation and transaction and acquisition-related costs in Transmission, Power & Gulf and West. Depreciation, depletion, and amortization expense increased $42 million, or 2%, as assets entered service and Momentum assets were added, partly offset by the South Mansfield sale.

Key facts

• Williams’ three-month operating and maintenance expenses increased primarily due to higher employee-related costs, Momentum operating costs, and operating taxes.
• Williams’ three-month depreciation, depletion, and amortization expenses increased primarily due to the absence of 2025 Transco depreciation-rate adjustments, assets placed in service, and Momentum, partly offset by the South Mansfield upstream-interest sale.
• Williams’ three-month general and administrative expenses increased due to higher employee-related costs, including incentive compensation, and transaction and acquisition costs in the Transmission, Power & Gulf and West segments.
• Williams’ nine-month operating and maintenance expenses increased primarily due to employee-related expenses, operating taxes, electricity and fuel, and operating costs of assets acquired in Momentum.
• Williams’ nine-month depreciation, depletion, and amortization expenses increased primarily due to assets placed in service in West and Transmission, Power & Gulf and Momentum, partly offset by the South Mansfield upstream-interest sale.
• Williams’ nine-month general and administrative expenses increased due to higher employee-related costs, including incentive compensation, and transaction and acquisition costs in the Transmission, Power & Gulf and West segments.
• Transmission, Power & Gulf other segment costs increased due to operating expenses, administrative costs, transaction expenses, employee-related costs, corporate allocations, and fuel expenses; higher eligible capital expenditures at Transco and Driftwood Pipeline’s Line 200 partly offset the increase through equity AFUDC.
• Transco depreciation and amortization expenses increased primarily due to the 2025 depreciation rate change and new assets placed into service.