Delaware | 1-4174 | 73-0569878 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
One Williams Center Tulsa, Oklahoma | 74172-0172 |
(Address of principal executive offices) | (Zip Code) |
Emerging growth company ¨ |
(a) | None |
(b) | None |
(c) | None |
(d) | Exhibits. |
THE WILLIAMS COMPANIES, INC. | ||
DATED: | November 1, 2017 | By: /s/ John D. Chandler |
John D. Chandler | ||
Senior Vice President and Chief Financial Officer |
News Release | Williams (NYSE: WMB) One Williams Center Tulsa, OK 74172 800-Williams www.williams.com | ![]() |
MEDIA CONTACT: | INVESTOR CONTACT: | ||
Keith Isbell (918) 573-7308 | Brett Krieg (918) 573-4614 |
• | 3Q 2017 Net Income of $33 Million |
• | 3Q 2017 Adjusted EBITDA of $1.113 Billion |
• | Williams Partners Placed 4 Transco Expansions (Gulf Trace, Hillabee Phase 1, Dalton Expansion, and New York Bay Expansion) Into Service to Date in 2017; Design Capacity Up 25% |
• | Company Continues to Significantly Improve Credit Profile; Consolidated Net Debt (Long-term Debt Less Cash) Reduced by $3.3 Billion Since Jan. 1, 2017 |
• | Williams Partners Achieved Key Milestones for Atlantic Sunrise Project |
Williams Summary Financial Information | 3Q | YTD | |||||||||||
Amounts in millions, except per-share amounts. Per share amounts are reported on a diluted basis. All amounts are attributable to The Williams Companies, Inc. | 2017 | 2016 | 2017 | 2016 | |||||||||
GAAP Measures | |||||||||||||
Cash Flow from Operations | $569 | $628 | $1,837 | $2,097 | |||||||||
Net income (loss) | $33 | $61 | $487 | ($409 | ) | ||||||||
Net income (loss) per share | $0.04 | $0.08 | $0.59 | ($0.55 | ) | ||||||||
Non-GAAP Measures (1) | |||||||||||||
Adjusted income from continuing operations | $124 | $148 | $351 | $320 | |||||||||
Adjusted income from continuing operations per share | $0.15 | $0.20 | $0.42 | $0.43 | |||||||||
Adjusted EBITDA | $1,113 | $1,192 | $3,371 | $3,313 | |||||||||
Cash Flow available for Dividends and other uses | $355 | $441 | $1,095 | $1,303 | |||||||||
Dividend Coverage Ratio | 1.43 | x | 2.94 | x | 1.47 | x | 1.17 | x | |||||
(1) Schedules reconciling adjusted income from continuing operations, adjusted EBITDA, Cash Available for Dividends and Dividend Coverage Ratio (non-GAAP measures) are available at www.williams.com and as an attachment to this news release. |
Williams | Modified and Adjusted EBITDA | ||||||||||||||||||||||||||||||||||||||
Amounts in millions | 3Q 2017 | 3Q 2016 | YTD 2017 | YTD 2016 | |||||||||||||||||||||||||||||||||||
Modified EBITDA | Adjust. | Adjusted EBITDA | Modified EBITDA | Adjust. | Adjusted EBITDA | Modified EBITDA | Adjust. | Adjusted EBITDA | Modified EBITDA | Adjust. | Adjusted EBITDA | ||||||||||||||||||||||||||||
Williams Partners | $1,000 | $101 | $1,101 | $1,070 | $119 | $1,189 | $3,208 | $114 | $3,322 | $2,629 | $685 | $3,314 | |||||||||||||||||||||||||||
Other | (61 | ) | 73 | 12 | (67 | ) | 70 | 3 | (60 | ) | 109 | 49 | (534 | ) | 533 | (1 | ) | ||||||||||||||||||||||
Totals | $939 | $174 | $1,113 | $1,003 | $189 | $1,192 | $3,148 | $223 | $3,371 | $2,095 | $1,218 | $3,313 | |||||||||||||||||||||||||||
Definitions of modified EBITDA and adjusted EBITDA and schedules reconciling to net income are included in this news release. |
• | Expected levels of cash distributions by Williams Partners L.P. (WPZ) with respect to limited partner interests; |
• | Levels of dividends to Williams stockholders; |
• | Future credit ratings of Williams, WPZ, and their affiliates; |
• | Amounts and nature of future capital expenditures; |
• | Expansion and growth of our business and operations; |
• | Expected in-service dates for capital projects; |
• | Financial condition and liquidity; |
• | Business strategy; |
• | Cash flow from operations or results of operations; |
• | Seasonality of certain business components; |
• | Natural gas and natural gas liquids prices, supply, and demand; |
• | Demand for our services. |
• | Whether WPZ will produce sufficient cash flows to provide expected levels of cash distributions; |
• | Whether we are able to pay current and expected levels of dividends; |
• | Whether WPZ elects to pay expected levels of cash distributions and we elect to pay expected levels of dividends; |
• | Whether we will be able to effectively execute our financing plan; |
• | Whether we will be able to effectively manage the transition in our board of directors and management as well as successfully execute our business restructuring; |
• | Availability of supplies, including lower than anticipated volumes from third parties served by our business, and market demand; |
• | Volatility of pricing including the effect of lower than anticipated energy commodity prices and margins; |
• | Inflation, interest rates, and general economic conditions (including future disruptions and volatility in the global credit markets and the impact of these events on customers and suppliers); |
• | The strength and financial resources of our competitors and the effects of competition; |
• | Whether we are able to successfully identify, evaluate and timely execute our capital projects and other investment opportunities in accordance with our forecasted capital expenditures budget; |
• | Our ability to successfully expand our facilities and operations; |
• | Development and rate of adoption of alternative energy sources; |
• | The impact of operational and developmental hazards, unforeseen interruptions, and the availability of adequate insurance coverage; |
• | The impact of existing and future laws, regulations, the regulatory environment, environmental liabilities, and litigation, as well as our ability to obtain necessary permits and approvals, and achieve favorable rate proceeding outcomes; |
• | Our costs and funding obligations for defined benefit pension plans and other postretirement benefit plans; |
• | Changes in maintenance and construction costs; |
• | Changes in the current geopolitical situation; |
• | Our exposure to the credit risk of our customers and counterparties; |
• | Risks related to financing, including restrictions stemming from debt agreements, future changes in credit ratings as determined by nationally-recognized credit rating agencies and the availability and cost of capital; |
• | The amount of cash distributions from and capital requirements of our investments and joint ventures in which we participate; |
• | Risks associated with weather and natural phenomena, including climate conditions and physical damage to our facilities; |
• | Acts of terrorism, including cybersecurity threats, and related disruptions; |
• | Additional risks described in our filings with the Securities and Exchange Commission (SEC). |
![]() | ||
Non-GAAP Reconciliations, | ||
Financial Highlights, and Operating Statistics | ||
(UNAUDITED) | ||
Final | ||
September 30, 2017 | ||
2016 | 2017 | |||||||||||||||||||||||||||
(Dollars in millions, except per-share amounts) | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 3rd Qtr | Year | |||||||||||||||||||
Income (loss) attributable to The Williams Companies, Inc. available to common stockholders | $ | (65 | ) | $ | (405 | ) | $ | 61 | $ | (15 | ) | $ | (424 | ) | $ | 373 | $ | 81 | $ | 33 | $ | 487 | ||||||
Income (loss) - diluted earnings (loss) per common share | $ | (.09 | ) | $ | (.54 | ) | $ | .08 | $ | (.02 | ) | $ | (.57 | ) | $ | .45 | $ | .10 | $ | .04 | $ | .59 | ||||||
Adjustments: | ||||||||||||||||||||||||||||
Williams Partners | ||||||||||||||||||||||||||||
Estimated minimum volume commitments | $ | 60 | $ | 64 | $ | 70 | $ | (194 | ) | $ | — | $ | 15 | $ | 15 | $ | 18 | $ | 48 | |||||||||
Impairment of certain assets | — | 389 | — | 22 | 411 | — | — | 1,142 | 1,142 | |||||||||||||||||||
Ad valorem obligation timing adjustment | — | — | — | — | — | — | — | 7 | 7 | |||||||||||||||||||
Organizational realignment-related costs | — | — | — | 24 | 24 | 4 | 6 | 6 | 16 | |||||||||||||||||||
Loss related to Canada disposition | — | — | 32 | 2 | 34 | (3 | ) | (1 | ) | 4 | — | |||||||||||||||||
Severance and related costs | 25 | — | — | 12 | 37 | 9 | 4 | 5 | 18 | |||||||||||||||||||
Constitution Pipeline project development costs | — | 8 | 11 | 9 | 28 | 2 | 6 | 4 | 12 | |||||||||||||||||||
Potential rate refunds associated with rate case litigation | 15 | — | — | — | 15 | — | — | — | — | |||||||||||||||||||
ACMP Merger and transition costs | 5 | — | — | — | 5 | — | 4 | 3 | 7 | |||||||||||||||||||
Share of impairment at equity-method investments | — | — | 6 | 19 | 25 | — | — | 1 | 1 | |||||||||||||||||||
Gain on asset retirement | — | — | — | (11 | ) | (11 | ) | — | — | (5 | ) | (5 | ) | |||||||||||||||
Geismar Incident adjustments | — | — | — | (7 | ) | (7 | ) | (9 | ) | 2 | 8 | 1 | ||||||||||||||||
Gain on sale of Geismar Interest | — | — | — | — | — | — | — | (1,095 | ) | (1,095 | ) | |||||||||||||||||
Gains from contract settlements and terminations | — | — | — | — | — | (13 | ) | (2 | ) | — | (15 | ) | ||||||||||||||||
Accrual for loss contingency | — | — | — | — | — | 9 | — | — | 9 | |||||||||||||||||||
Gain on early retirement of debt | — | — | — | — | — | (30 | ) | — | 3 | (27 | ) | |||||||||||||||||
Gain on sale of RGP Splitter | — | — | — | — | — | — | (12 | ) | — | (12 | ) | |||||||||||||||||
Expenses associated with Financial Repositioning | — | — | — | — | — | — | 2 | — | 2 | |||||||||||||||||||
Expenses associated with strategic asset monetizations | — | — | — | 2 | 2 | 1 | 4 | — | 5 | |||||||||||||||||||
Total Williams Partners adjustments | 105 | 461 | 119 | (122 | ) | 563 | (15 | ) | 28 | 101 | 114 | |||||||||||||||||
Other | ||||||||||||||||||||||||||||
Impairment of certain assets | — | 406 | — | 8 | 414 | — | 23 | 68 | 91 | |||||||||||||||||||
Loss related to Canada disposition | — | — | 33 | (1 | ) | 32 | 1 | — | — | 1 | ||||||||||||||||||
Canadian PDH facility project development costs | 34 | 11 | 16 | — | 61 | — | — | — | — | |||||||||||||||||||
Gain on sale of certain assets | (10 | ) | — | — | — | (10 | ) | — | — | — | — | |||||||||||||||||
Expenses associated with strategic alternatives | 6 | 13 | 21 | 7 | 47 | 1 | 3 | 5 | 9 | |||||||||||||||||||
ACMP Merger and transition costs | 2 | — | — | — | 2 | — | — | — | — | |||||||||||||||||||
Severance and related costs | 1 | — | — | 4 | 5 | — | — | — | — | |||||||||||||||||||
Expenses associated with Financial Repositioning | — | — | — | — | — | 8 | — | — | 8 | |||||||||||||||||||
Total Other adjustments | 33 | 430 | 70 | 18 | 551 | 10 | 26 | 73 | 109 | |||||||||||||||||||
Adjustments included in Modified EBITDA | 138 | 891 | 189 | (104 | ) | 1,114 | (5 | ) | 54 | 174 | 223 | |||||||||||||||||
Adjustments below Modified EBITDA | ||||||||||||||||||||||||||||
Impairment of equity-method investments - Williams Partners | 112 | — | — | 318 | 430 | — | — | — | — | |||||||||||||||||||
Gain on disposition of equity-method investment - Williams Partners | — | — | (27 | ) | — | (27 | ) | (269 | ) | — | — | (269 | ) | |||||||||||||||
Interest expense related to potential rate refunds associated with rate case litigation - Williams Partners | 3 | — | — | — | 3 | — | — | — | — | |||||||||||||||||||
Accelerated depreciation related to reduced salvage value of certain assets - Williams Partners | — | — | — | 4 | 4 | — | — | — | — | |||||||||||||||||||
Change in depreciable life associated with organizational realignment - Williams Partners | — | — | — | (16 | ) | (16 | ) | (7 | ) | — | — | (7 | ) | |||||||||||||||
Interest income on receivable from sale of Venezuela assets - Other | (18 | ) | (18 | ) | — | — | (36 | ) | — | — | — | — | ||||||||||||||||
Allocation of adjustments to noncontrolling interests | (83 | ) | (154 | ) | (41 | ) | (76 | ) | (354 | ) | 77 | (10 | ) | (28 | ) | 39 | ||||||||||||
14 | (172 | ) | (68 | ) | 230 | 4 | (199 | ) | (10 | ) | (28 | ) | (237 | ) | ||||||||||||||
Total adjustments | 152 | 719 | 121 | 126 | 1,118 | (204 | ) | 44 | 146 | (14 | ) | |||||||||||||||||
Less tax effect for above items | (61 | ) | (202 | ) | (39 | ) | 19 | (283 | ) | 77 | (17 | ) | (55 | ) | 5 | |||||||||||||
Adjustments for tax-related items (1) | — | 34 | 5 | — | 39 | (127 | ) | — | — | (127 | ) | |||||||||||||||||
Adjusted income available to common stockholders | $ | 26 | $ | 146 | $ | 148 | $ | 130 | $ | 450 | $ | 119 | $ | 108 | $ | 124 | $ | 351 | ||||||||||
Adjusted diluted earnings per common share (2) | $ | .03 | $ | .19 | $ | .20 | $ | .17 | $ | .60 | $ | .14 | $ | .13 | $ | .15 | $ | .42 | ||||||||||
Weighted-average shares - diluted (thousands) | 751,040 | 751,297 | 751,858 | 752,818 | 751,761 | 826,476 | 828,575 | 829,368 | 828,150 | |||||||||||||||||||
(1) The second and third quarters of 2016 include a favorable adjustment related to the reversal of a cumulative anticipatory foreign tax credit. The first quarter of 2017 includes an unfavorable adjustment related to the release of a valuation allowance. | ||||||||||||||||||||||||||||
(2) The sum of earnings per share for the quarters may not equal the total earnings per share for the year due to changes in the weighted-average number of common shares outstanding. |
2016 | 2017 | |||||||||||||||||||||||||||
(Dollars in millions) | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 3rd Qtr | Year | |||||||||||||||||||
Net income (loss) | $ | (13 | ) | $ | (505 | ) | $ | 131 | $ | 37 | $ | (350 | ) | $ | 569 | $ | 193 | $ | 125 | $ | 887 | |||||||
Provision (benefit) for income taxes | 2 | (145 | ) | 69 | 49 | (25 | ) | 37 | 65 | 24 | 126 | |||||||||||||||||
Interest expense | 291 | 298 | 297 | 293 | 1,179 | 280 | 271 | 267 | 818 | |||||||||||||||||||
Equity (earnings) losses | (97 | ) | (101 | ) | (104 | ) | (95 | ) | (397 | ) | (107 | ) | (125 | ) | (115 | ) | (347 | ) | ||||||||||
Impairment of equity-method investments | 112 | — | — | 318 | 430 | — | — | — | — | |||||||||||||||||||
Other investing (income) loss - net | (18 | ) | (18 | ) | (28 | ) | 1 | (63 | ) | (272 | ) | (2 | ) | (4 | ) | (278 | ) | |||||||||||
Proportional Modified EBITDA of equity-method investments | 189 | 191 | 194 | 180 | 754 | 194 | 215 | 202 | 611 | |||||||||||||||||||
Depreciation and amortization expenses | 445 | 446 | 435 | 437 | 1,763 | 442 | 433 | 433 | 1,308 | |||||||||||||||||||
Accretion for asset retirement obligations associated with nonregulated operations | 7 | 8 | 9 | 7 | 31 | 7 | 9 | 7 | 23 | |||||||||||||||||||
Modified EBITDA | $ | 918 | $ | 174 | $ | 1,003 | $ | 1,227 | $ | 3,322 | $ | 1,150 | $ | 1,059 | $ | 939 | $ | 3,148 | ||||||||||
Williams Partners | $ | 955 | $ | 604 | $ | 1,070 | $ | 1,235 | $ | 3,864 | $ | 1,132 | $ | 1,076 | $ | 1,000 | $ | 3,208 | ||||||||||
Other | (37 | ) | (430 | ) | (67 | ) | (8 | ) | (542 | ) | 18 | (17 | ) | (61 | ) | (60 | ) | |||||||||||
Total Modified EBITDA | $ | 918 | $ | 174 | $ | 1,003 | $ | 1,227 | $ | 3,322 | $ | 1,150 | $ | 1,059 | $ | 939 | $ | 3,148 | ||||||||||
Adjustments included in Modified EBITDA (1): | ||||||||||||||||||||||||||||
Williams Partners | $ | 105 | $ | 461 | $ | 119 | $ | (122 | ) | $ | 563 | $ | (15 | ) | $ | 28 | $ | 101 | $ | 114 | ||||||||
Other | 33 | 430 | 70 | 18 | 551 | 10 | 26 | 73 | 109 | |||||||||||||||||||
Total Adjustments included in Modified EBITDA | $ | 138 | $ | 891 | $ | 189 | $ | (104 | ) | $ | 1,114 | $ | (5 | ) | $ | 54 | $ | 174 | $ | 223 | ||||||||
Adjusted EBITDA: | ||||||||||||||||||||||||||||
Williams Partners | $ | 1,060 | $ | 1,065 | $ | 1,189 | $ | 1,113 | $ | 4,427 | $ | 1,117 | $ | 1,104 | $ | 1,101 | $ | 3,322 | ||||||||||
Other | (4 | ) | — | 3 | 10 | 9 | 28 | 9 | 12 | 49 | ||||||||||||||||||
Total Adjusted EBITDA | $ | 1,056 | $ | 1,065 | $ | 1,192 | $ | 1,123 | $ | 4,436 | $ | 1,145 | $ | 1,113 | $ | 1,113 | $ | 3,371 | ||||||||||
(1) Adjustments by segment are detailed in the "Reconciliation of Income (Loss) Attributable to The Williams Companies, Inc. to Adjusted Income," which is also included in these materials. |
2016 | 2017 | |||||||||||||||||||||||||||
(Dollars in millions, except per share amounts) | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 3rd Qtr | Year | |||||||||||||||||||
Distributions from WPZ (accrued / “as declared” basis) (1) | $ | 513 | $ | 513 | $ | 522 | $ | 597 | $ | 2,145 | $ | 421 | $ | 421 | $ | 421 | $ | 1,263 | ||||||||||
Other Segment Adjusted EBITDA (2) | (14 | ) | (12 | ) | (13 | ) | (4 | ) | (43 | ) | 28 | 9 | 12 | 49 | ||||||||||||||
Corporate interest | (66 | ) | (67 | ) | (68 | ) | (67 | ) | (268 | ) | (66 | ) | (65 | ) | (66 | ) | (197 | ) | ||||||||||
Subtotal | 433 | 434 | 441 | 526 | 1,834 | 383 | 365 | 367 | 1,115 | |||||||||||||||||||
WMB cash tax rate | 0 | % | -1 | % | 0 | % | 1 | % | 0 | % | 0 | % | 0 | % | 2 | % | 1 | % | ||||||||||
WMB cash taxes (excludes cash taxes paid by WPZ) | 2 | 3 | — | (7 | ) | (2 | ) | — | — | (7 | ) | (7 | ) | |||||||||||||||
Other Segment Maintenance Capital | (6 | ) | (4 | ) | — | (1 | ) | (11 | ) | (3 | ) | (5 | ) | (5 | ) | (13 | ) | |||||||||||
WMB cash available for dividends and other uses (3) | $ | 429 | $ | 433 | $ | 441 | $ | 518 | $ | 1,821 | $ | 380 | $ | 360 | $ | 355 | $ | 1,095 | ||||||||||
WMB dividends paid | (480 | ) | (481 | ) | (150 | ) | (150 | ) | (1,261 | ) | (248 | ) | (248 | ) | (248 | ) | (744 | ) | ||||||||||
Excess cash available after dividends | $ | (51 | ) | $ | (48 | ) | $ | 291 | $ | 368 | $ | 560 | $ | 132 | $ | 112 | $ | 107 | $ | 351 | ||||||||
Dividend per share | $ | 0.6400 | $ | 0.6400 | $ | 0.2000 | $ | 0.2000 | $ | 1.6800 | $ | 0.3000 | $ | 0.3000 | $ | 0.3000 | $ | 0.9000 | ||||||||||
Coverage ratio (1)(4) | 0.89 | 0.90 | 2.94 | 3.45 | 1.44 | 1.53 | 1.45 | 1.43 | 1.47 | |||||||||||||||||||
(1) Cash distributions for the first quarter of 2016 was increased by $10 million in order to exclude the impact of the IDR waiver associated with the WPZ merger termination fee from the determination of coverage ratios. Cash distributions for the third quarter of 2016 was increased by $150 million in order to exclude the impact of the IDR waiver associated with the sale of the Canadian operations. | ||||||||||||||||||||||||||||
(2) For periods prior to 2017, includes only former Williams NGL & Petchem Services segment. | ||||||||||||||||||||||||||||
(3) As previously announced, effective with the third quarter of 2016, Williams reduced its regular dividend from $0.64 per share to $0.20 per share to support Williams' plan to reinvest a portion of the cash available for dividends and other uses into Williams Partners. Effective with the first quarter of 2017, Williams increased its regular dividend from $0.20 per share to $0.30 per share as part of the Financial Repositioning announced in the first quarter of 2017. | ||||||||||||||||||||||||||||
(4) WMB cash available for dividends and other uses / WMB dividends paid. |
2016 | 2017 | |||||||||||||||||||||||||||
(Dollars in millions, except per-share amounts) | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 3rd Qtr | Year | |||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||
Service revenues | $ | 1,229 | $ | 1,202 | $ | 1,247 | $ | 1,493 | $ | 5,171 | $ | 1,261 | $ | 1,282 | $ | 1,310 | $ | 3,853 | ||||||||||
Product sales | 431 | 534 | 658 | 705 | 2,328 | 727 | 642 | 581 | 1,950 | |||||||||||||||||||
Total revenues | 1,660 | 1,736 | 1,905 | 2,198 | 7,499 | 1,988 | 1,924 | 1,891 | 5,803 | |||||||||||||||||||
Costs and expenses: | ||||||||||||||||||||||||||||
Product costs | 318 | 401 | 461 | 545 | 1,725 | 579 | 537 | 504 | 1,620 | |||||||||||||||||||
Operating and maintenance expenses | 391 | 394 | 394 | 401 | 1,580 | 368 | 389 | 400 | 1,157 | |||||||||||||||||||
Depreciation and amortization expenses | 445 | 446 | 435 | 437 | 1,763 | 442 | 433 | 433 | 1,308 | |||||||||||||||||||
Selling, general, and administrative expenses | 221 | 158 | 177 | 167 | 723 | 161 | 153 | 138 | 452 | |||||||||||||||||||
Gain on sale of Geismar Interest | — | — | — | — | — | — | — | (1,095 | ) | (1,095 | ) | |||||||||||||||||
Impairment of certain assets | 8 | 802 | 1 | 62 | 873 | 1 | 25 | 1,210 | 1,236 | |||||||||||||||||||
Other (income) expense - net | 15 | 23 | 92 | 5 | 135 | 4 | 6 | 24 | 34 | |||||||||||||||||||
Total costs and expenses | 1,398 | 2,224 | 1,560 | 1,617 | 6,799 | 1,555 | 1,543 | 1,614 | 4,712 | |||||||||||||||||||
Operating income (loss) | 262 | (488 | ) | 345 | 581 | 700 | 433 | 381 | 277 | 1,091 | ||||||||||||||||||
Equity earnings (losses) | 97 | 101 | 104 | 95 | 397 | 107 | 125 | 115 | 347 | |||||||||||||||||||
Impairment of equity-method investments | (112 | ) | — | — | (318 | ) | (430 | ) | — | — | — | — | ||||||||||||||||
Other investing income (loss) - net | 18 | 18 | 28 | (1 | ) | 63 | 272 | 2 | 4 | 278 | ||||||||||||||||||
Interest incurred | (306 | ) | (306 | ) | (304 | ) | (301 | ) | (1,217 | ) | (287 | ) | (280 | ) | (275 | ) | (842 | ) | ||||||||||
Interest capitalized | 15 | 8 | 7 | 8 | 38 | 7 | 9 | 8 | 24 | |||||||||||||||||||
Other income (expense) - net | 15 | 17 | 20 | 22 | 74 | 74 | 21 | 20 | 115 | |||||||||||||||||||
Income (loss) before income taxes | (11 | ) | (650 | ) | 200 | 86 | (375 | ) | 606 | 258 | 149 | 1,013 | ||||||||||||||||
Provision (benefit) for income taxes | 2 | (145 | ) | 69 | 49 | (25 | ) | 37 | 65 | 24 | 126 | |||||||||||||||||
Net income (loss) | (13 | ) | (505 | ) | 131 | 37 | (350 | ) | 569 | 193 | 125 | 887 | ||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | 52 | (100 | ) | 70 | 52 | 74 | 196 | 112 | 92 | 400 | ||||||||||||||||||
Net income (loss) attributable to The Williams Companies, Inc. | $ | (65 | ) | $ | (405 | ) | $ | 61 | $ | (15 | ) | $ | (424 | ) | $ | 373 | $ | 81 | $ | 33 | $ | 487 | ||||||
Diluted earnings (loss) per common share: | ||||||||||||||||||||||||||||
Net income (loss) (1) | $ | (.09 | ) | $ | (.54 | ) | $ | .08 | $ | (.02 | ) | $ | (.57 | ) | $ | .45 | $ | .10 | $ | .04 | $ | .59 | ||||||
Weighted-average number of shares (thousands) | 750,322 | 750,649 | 751,858 | 750,954 | 750,673 | 826,476 | 828,575 | 829,368 | 828,150 | |||||||||||||||||||
Common shares outstanding at end of period (thousands) | 750,484 | 750,599 | 750,757 | 750,934 | 750,934 | 826,239 | 826,398 | 826,723 | 826,723 | |||||||||||||||||||
Market price per common share (end of period) | $ | 16.07 | $ | 21.63 | $ | 30.73 | $ | 31.14 | $ | 31.14 | $ | 29.59 | $ | 30.28 | $ | 30.01 | $ | 30.01 | ||||||||||
Cash dividends declared per share | $ | .64 | $ | .64 | $ | .20 | $ | .20 | $ | 1.68 | $ | .30 | $ | .30 | $ | .30 | $ | .90 | ||||||||||
(1) The sum of earnings (loss) per share for the quarters may not equal the total earnings (loss) per share for the year due to changes in the weighted-average number of common shares outstanding. |
2016 | 2017 | |||||||||||||||||||||||||||
(Dollars in millions) | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 3rd Qtr | Year | |||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||
Service revenues | $ | 1,226 | $ | 1,210 | $ | 1,252 | $ | 1,485 | $ | 5,173 | $ | 1,256 | $ | 1,277 | $ | 1,304 | $ | 3,837 | ||||||||||
Product sales | 428 | 530 | 655 | 705 | 2,318 | 727 | 642 | 581 | 1,950 | |||||||||||||||||||
Total revenues | 1,654 | 1,740 | 1,907 | 2,190 | 7,491 | 1,983 | 1,919 | 1,885 | 5,787 | |||||||||||||||||||
Segment costs and expenses: | ||||||||||||||||||||||||||||
Product costs | 317 | 403 | 463 | 545 | 1,728 | 579 | 537 | 504 | 1,620 | |||||||||||||||||||
Operating and maintenance expenses | 374 | 379 | 377 | 386 | 1,516 | 353 | 376 | 387 | 1,116 | |||||||||||||||||||
Selling, general, and administrative expenses | 181 | 139 | 147 | 163 | 630 | 156 | 154 | 140 | 450 | |||||||||||||||||||
Gain on sale of Geismar Interest | — | — | — | — | — | — | — | (1,095 | ) | (1,095 | ) | |||||||||||||||||
Impairment of certain assets | 6 | 396 | 1 | 54 | 457 | 1 | 2 | 1,142 | 1,145 | |||||||||||||||||||
Other segment costs and expenses | 10 | 10 | 43 | (13 | ) | 50 | (44 | ) | (11 | ) | 9 | (46 | ) | |||||||||||||||
Total segment costs and expenses | 888 | 1,327 | 1,031 | 1,135 | 4,381 | 1,045 | 1,058 | 1,087 | 3,190 | |||||||||||||||||||
Proportional Modified EBITDA of equity-method investments | 189 | 191 | 194 | 180 | 754 | 194 | 215 | 202 | 611 | |||||||||||||||||||
Modified EBITDA | 955 | 604 | 1,070 | 1,235 | 3,864 | 1,132 | 1,076 | 1,000 | 3,208 | |||||||||||||||||||
Adjustments | 105 | 461 | 119 | (122 | ) | 563 | (15 | ) | 28 | 101 | 114 | |||||||||||||||||
Adjusted EBITDA | $ | 1,060 | $ | 1,065 | $ | 1,189 | $ | 1,113 | $ | 4,427 | $ | 1,117 | $ | 1,104 | $ | 1,101 | $ | 3,322 | ||||||||||
Statistics for Operated Assets | ||||||||||||||||||||||||||||
Interstate Transmission | ||||||||||||||||||||||||||||
Throughput (Tbtu) | 1,132.8 | 983.9 | 1,040.0 | 1,073.1 | 4,229.8 | 1,158.1 | 1,053.0 | 1,094.9 | 3,306.0 | |||||||||||||||||||
Avg. daily transportation volumes (Tbtu) | 12.5 | 10.8 | 11.3 | 11.7 | 11.6 | 12.8 | 11.6 | 11.9 | 12.1 | |||||||||||||||||||
Avg. daily firm reserved capacity (Tbtu) | 15.0 | 14.5 | 14.6 | 14.7 | 14.7 | 15.8 | 16.2 | 17.1 | 16.4 | |||||||||||||||||||
Gathering and Processing | ||||||||||||||||||||||||||||
Gathering volumes (Bcf per day) - Consolidated (1) | 8.24 | 8.13 | 8.39 | 8.21 | 8.25 | 7.86 | 7.98 | 8.20 | 8.02 | |||||||||||||||||||
Gathering volumes (Bcf per day) - Non-consolidated (2) | 3.74 | 3.69 | 3.67 | 3.80 | 3.73 | 4.10 | 4.12 | 3.87 | 4.03 | |||||||||||||||||||
Plant inlet natural gas volumes (Bcf per day) - Consolidated (1) | 3.46 | 3.40 | 3.66 | 3.47 | 3.50 | 2.92 | 2.98 | 3.08 | 2.99 | |||||||||||||||||||
Plant inlet natural gas volumes (Bcf per day) - Non-consolidated (2) | 0.56 | 0.54 | 0.60 | 0.60 | 0.57 | 0.54 | 0.53 | 0.39 | 0.49 | |||||||||||||||||||
Consolidated (1) | ||||||||||||||||||||||||||||
Ethane margin ($/gallon) | $ | .08 | $ | .02 | $ | .06 | $ | — | $ | .04 | $ | .03 | $ | .01 | $ | .03 | $ | .02 | ||||||||||
Non-ethane margin ($/gallon) | $ | .20 | $ | .36 | $ | .25 | $ | .39 | $ | .29 | $ | .45 | $ | .41 | $ | .45 | $ | .44 | ||||||||||
NGL margin ($/gallon) | $ | .15 | $ | .20 | $ | .18 | $ | .27 | $ | .20 | $ | .33 | $ | .25 | $ | .29 | $ | .29 | ||||||||||
Ethane equity sales (Mbbls/d) | 22 | 26 | 23 | 15 | 22 | 11 | 17 | 17 | 15 | |||||||||||||||||||
Non-ethane equity sales (Mbbls/d) | 35 | 29 | 40 | 34 | 34 | 29 | 26 | 25 | 27 | |||||||||||||||||||
NGL equity sales (Mbbls/d) | 57 | 55 | 63 | 49 | 56 | 40 | 43 | 42 | 42 | |||||||||||||||||||
Ethane production (Mbbls/d) | 49 | 61 | 56 | 48 | 54 | 40 | 53 | 49 | 47 | |||||||||||||||||||
Non-ethane production (Mbbls/d) | 103 | 100 | 120 | 107 | 108 | 90 | 93 | 99 | 94 | |||||||||||||||||||
NGL production (Mbbls/d) | 152 | 161 | 176 | 155 | 162 | 130 | 146 | 148 | 141 | |||||||||||||||||||
Non-consolidated (2) | ||||||||||||||||||||||||||||
NGL equity sales (Mbbls/d) | 5 | 5 | 5 | 5 | 5 | 5 | 4 | 5 | 5 | |||||||||||||||||||
NGL production (Mbbls/d) | 17 | 19 | 21 | 21 | 20 | 21 | 22 | 22 | 22 | |||||||||||||||||||
Petrochemical Services | ||||||||||||||||||||||||||||
Geismar ethylene sales volumes (million lbs) | 423 | 391 | 419 | 405 | 1,638 | 266 | 300 | — | 566 | |||||||||||||||||||
Geismar ethylene margin ($/lb) (3) | $ | .13 | $ | .15 | $ | .21 | $ | .15 | $ | .16 | $ | .19 | $ | .13 | $ | — | $ | .16 | ||||||||||
Canadian propylene sales volumes (million lbs) | 33 | 8 | 46 | — | 87 | — | — | — | — | |||||||||||||||||||
Canadian alky feedstock sales volumes (million gallons) | 7 | 2 | 6 | — | 15 | — | — | — | — | |||||||||||||||||||
Overland Pipeline Company (2) | ||||||||||||||||||||||||||||
NGL transportation volumes (Mbbls) | 16,814 | 18,410 | 18,535 | 18,078 | 71,837 | 18,338 | 20,558 | 21,015 | 59,911 | |||||||||||||||||||
(1) Excludes volumes associated with equity-method investments that are not consolidated for financial reporting purposes. | ||||||||||||||||||||||||||||
(2) Includes 100% of the volumes associated with operated equity-method investments. | ||||||||||||||||||||||||||||
(3) Ethylene margin and ethylene margin per pound are calculated using financial results determined in accordance with GAAP, which include realized ethylene sales prices and ethylene COGS. Realized sales and COGS per unit metrics may vary from publicly quoted market indices or spot prices due to various factors, including, but not limited to, basis differentials, transportation costs, contract provisions, and inventory accounting methods. |
2016 | 2017 | |||||||||||||||||||||||||||
(Dollars in millions) | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 3rd Qtr | Year | |||||||||||||||||||
Capital expenditures: | ||||||||||||||||||||||||||||
Williams Partners | $ | 463 | $ | 518 | $ | 491 | $ | 472 | $ | 1,944 | $ | 509 | $ | 540 | $ | 638 | $ | 1,687 | ||||||||||
Other | 50 | 38 | 17 | 2 | 107 | 2 | 5 | 6 | 13 | |||||||||||||||||||
Total(1) | $ | 513 | $ | 556 | $ | 508 | $ | 474 | $ | 2,051 | $ | 511 | $ | 545 | $ | 644 | $ | 1,700 | ||||||||||
Purchases of investments: | ||||||||||||||||||||||||||||
Williams Partners | $ | 63 | $ | 59 | $ | 10 | $ | 45 | $ | 177 | $ | 52 | $ | 27 | $ | 24 | $ | 103 | ||||||||||
Other | — | — | — | — | — | — | — | — | — | |||||||||||||||||||
Total | $ | 63 | $ | 59 | $ | 10 | $ | 45 | $ | 177 | $ | 52 | $ | 27 | $ | 24 | $ | 103 | ||||||||||
Summary: | ||||||||||||||||||||||||||||
Williams Partners | $ | 526 | $ | 577 | $ | 501 | $ | 517 | $ | 2,121 | $ | 561 | $ | 567 | $ | 662 | $ | 1,790 | ||||||||||
Other | 50 | 38 | 17 | 2 | 107 | 2 | 5 | 6 | 13 | |||||||||||||||||||
Total | $ | 576 | $ | 615 | $ | 518 | $ | 519 | $ | 2,228 | $ | 563 | $ | 572 | $ | 668 | $ | 1,803 | ||||||||||
Capital expenditures incurred and purchases of investments: | ||||||||||||||||||||||||||||
Increases to property, plant, and equipment | $ | 525 | $ | 495 | $ | 448 | $ | 444 | $ | 1,912 | $ | 569 | $ | 591 | $ | 666 | $ | 1,826 | ||||||||||
Purchases of investments | 63 | 59 | 10 | 45 | 177 | 52 | 27 | 24 | 103 | |||||||||||||||||||
Total | $ | 588 | $ | 554 | $ | 458 | $ | 489 | $ | 2,089 | $ | 621 | $ | 618 | $ | 690 | $ | 1,929 | ||||||||||
(1) Increases to property, plant, and equipment | $ | 525 | $ | 495 | $ | 448 | $ | 444 | $ | 1,912 | $ | 569 | $ | 591 | $ | 666 | $ | 1,826 | ||||||||||
Changes in related accounts payable and accrued liabilities | (12 | ) | 61 | 60 | 30 | 139 | (58 | ) | (46 | ) | (22 | ) | (126 | ) | ||||||||||||||
Capital expenditures | $ | 513 | $ | 556 | $ | 508 | $ | 474 | $ | 2,051 | $ | 511 | $ | 545 | $ | 644 | $ | 1,700 | ||||||||||
2016 | 2017 | |||||||||||||||||||||||||||
(Dollars in millions) | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 3rd Qtr | Year | |||||||||||||||||||
Depreciation and amortization: | ||||||||||||||||||||||||||||
Williams Partners | $ | 435 | $ | 432 | $ | 426 | $ | 427 | $ | 1,720 | $ | 433 | $ | 423 | $ | 424 | $ | 1,280 | ||||||||||
Other | 10 | 14 | 9 | 10 | 43 | 9 | 10 | 9 | 28 | |||||||||||||||||||
Total | $ | 445 | $ | 446 | $ | 435 | $ | 437 | $ | 1,763 | $ | 442 | $ | 433 | $ | 433 | $ | 1,308 | ||||||||||
Other selected financial data: | ||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 164 | $ | 135 | $ | 77 | $ | 170 | $ | 639 | $ | 1,918 | $ | 1,172 | ||||||||||||||
Total assets | $ | 48,807 | $ | 48,124 | $ | 47,288 | $ | 46,835 | $ | 47,512 | $ | 48,770 | $ | 46,120 | ||||||||||||||
Capital structure: | ||||||||||||||||||||||||||||
Debt | ||||||||||||||||||||||||||||
Commercial paper | $ | 135 | $ | 196 | $ | 2 | $ | 93 | $ | — | $ | — | $ | — | ||||||||||||||
Current | $ | 976 | $ | 786 | $ | 785 | $ | 785 | $ | — | $ | 1,951 | $ | 502 | ||||||||||||||
Noncurrent | $ | 23,701 | $ | 24,394 | $ | 23,932 | $ | 22,624 | $ | 21,825 | $ | 21,325 | $ | 20,567 | ||||||||||||||
Stockholders’ equity | $ | 5,691 | $ | 4,830 | $ | 4,860 | $ | 4,643 | $ | 8,444 | $ | 8,306 | $ | 8,109 | ||||||||||||||
Debt to debt-plus-stockholders’ equity ratio | 81.3 | % | 84.0 | % | 83.6 | % | 83.5 | % | 72.1 | % | 73.7 | % | 72.2 | % | ||||||||||||||
Cash distributions received from interests in: | ||||||||||||||||||||||||||||
Williams Partners L.P. | ||||||||||||||||||||||||||||
General partner | $ | 15 | $ | 216 | $ | 224 | $ | 78 | $ | 533 | $ | — | $ | — | $ | — | $ | — | ||||||||||
Limited partner | 289 | 288 | 289 | 295 | 1,161 | 597 | 421 | 422 | 1,440 | |||||||||||||||||||
$ | 304 | $ | 504 | $ | 513 | $ | 373 | $ | 1,694 | $ | 597 | $ | 421 | $ | 422 | $ | 1,440 | |||||||||||