(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Emerging growth company |
(a) | None |
(b) | None |
(c) | None |
(d) | Exhibits. |
Exhibit No. | Description | |
99.1 | ||
104 | Cover Page Interactive Data File. The cover page XBRL tags are embedded within the inline XBRL document (contained in Exhibit 101). |
THE WILLIAMS COMPANIES, INC. | |||
Dated: | May 4, 2020 | 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 CONTACTS: | ||
media@williams.com (800) 945-8723 | Brett Krieg (918) 573-4614 | Grace Scott (918) 573-1092 |
• | Net loss of $518 million, resulting in net loss of $0.43 per diluted share (EPS), which includes net non-cash impairment impact of $824 million, or $0.68 per diluted share, with improved business performance being offset by non-cash impairments |
• | EPS of $0.26 per diluted share, excluding primarily non-cash impairment charges |
• | 10% increase in DCF to $861 million |
• | 4% increase in Adjusted EBITDA to $1.26 billion |
• | 2% increase in cash flow from operations to $787 million |
• | 1.78x dividend coverage ratio up from 1Q 19 |
• | Debt-to-Adjusted EBITDA reduced by 0.41x to 4.36x since 1Q 19 |
• | 45% reduction in capital investments; down $233 million vs. 1Q 19 |
• | Natural gas market fundamentals and demand remain strong |
• | Stable and reliable customer base of utilities, power plants, LNG facilities and industrials plants supports firm-committed capacity on demand-pull regulated pipelines |
• | Diversified gas gathering business linked directly to wellheads in premier dry gas basins provides advantaged position over crude basins |
• | Implemented proactive measures that align with federal and state guidelines so operators, security experts and entire workforce continue to do their jobs in a safe and productive manner without interruption to service |
Williams Summary Financial Information | 1Q | |||||
Amounts in millions, except ratios and per-share amounts. Per share amounts are reported on a diluted basis. Net income (loss) amounts are attributable to The Williams Companies, Inc. available to common stockholders. | 2020 | 2019 | ||||
GAAP Measures | ||||||
Net Income (loss) | ($518 | ) | $194 | |||
Net Income (loss) Per Share | ($0.43 | ) | $0.16 | |||
Cash Flow From Operations | $787 | $775 | ||||
Non-GAAP Measures (1) | ||||||
Adjusted EBITDA | $1,262 | $1,216 | ||||
Adjusted Income | $313 | $273 | ||||
Adjusted Income Per Share | $0.26 | $0.22 | ||||
Distributable Cash Flow | $861 | $780 | ||||
Dividend Coverage Ratio | 1.78 | x | 1.70 | x | ||
Other | ||||||
Debt-to-Adjusted EBITDA at Quarter End (2) | 4.36x | 4.77x | ||||
Capital Investments (3) | $284 | $517 | ||||
(1) Schedules reconciling adjusted income from continuing operations, Adjusted EBITDA, Distributable Cash Flow and Coverage Ratio (non-GAAP measures) to the most comparable GAAP measure are available at www.williams.com and as an attachment to this news release. | ||||||
(2) 1Q 2019 Debt-to-Adjusted EBITDA and Capital Investments excludes $727 million (net of cash acquired) for the purchase of the remaining 38% of UEOM as this amount was provided for at the close of the new Northeast JV by our JV partner, CPPIB, in June 2019. | ||||||
(3) Capital Investments includes increases to property, plant, and equipment, purchases of businesses, net of cash acquired, and purchases of and contributions to equity-method investments. |
• | First-quarter 2020 net loss included impairments of equity-method investments, goodwill and goodwill at an equity investee, resulting in a total $1.2 billion pre-tax charge, of which $65 million was attributable to noncontrolling interests, in connection with the recent macroeconomic and geopolitical conditions, including significant declines in crude oil prices driven by both surplus supply and a decrease in crude oil demand caused by the COVID-19 pandemic. In assessing the related fair value measurements that led to these impairments, Williams was required to consider recent publicly available indications of value (including the company's stock price), which included lower observed publicly traded EBITDA market multiples as compared with recent history, and a significantly higher industry weighted average discount rate. First-quarter 2019 included impairments of certain assets and equity-method investments totaling $86 million. |
• | First quarter 2020 also reflects the benefits of $34 million of increased service revenues primarily due to expansion projects and the rate case settlement at Transco and higher gathering, processing and liquids handling volumes in Northeast G&P, $18 million lower operating and administrative costs primarily due to cost-savings initiatives implemented in late 2019, $20 million of higher equity earnings (excluding the effect of the previously mentioned impairment of goodwill at an equity investee), and $15 million of favorable changes in the amortization of regulatory assets and liabilities were partially offset by $19 million lower commodity margins primarily due to lower NGL prices. |
• | The provision for income taxes changed favorably by $273 million primarily due to lower pre-tax income. |
• | The increase in Adjusted EBITDA reflects the previously mentioned increased service revenues, lower operating and administrative costs, and favorable changes in the amortization of regulatory assets and liabilities, partially offset by lower commodity margins. |
• | Adjusted income for the quarter also improved, driven by the higher Adjusted EBITDA and higher equity earnings, partially offset by a higher provision for income taxes. |
• | First-quarter 2020 DCF is higher, reflecting the increased Adjusted EBITDA and lower maintenance capital. |
Quarter-To-Date | |||||||||||||||||||
Amounts in millions | Modified EBITDA | Adjusted EBITDA | |||||||||||||||||
1Q 2020 | 1Q 2019 | Change | 1Q 2020 | 1Q 2019 | Change | ||||||||||||||
Transmission & Gulf of Mexico | $662 | $636 | $26 | $669 | $636 | $33 | |||||||||||||
Northeast G&P | 369 | 299 | 70 | 370 | 302 | 68 | |||||||||||||
West | 215 | 256 | (41 | ) | 216 | 270 | (54 | ) | |||||||||||
Other | 7 | (4 | ) | 11 | 7 | 8 | (1 | ) | |||||||||||
Totals | $1,253 | $1,187 | $66 | $1,262 | $1,216 | $46 | |||||||||||||
Note: Williams uses Modified EBITDA for its segment reporting. Definitions of Modified EBITDA and Adjusted EBITDA and schedules reconciling to net income are included in this news release. |
• | First-quarter 2020 Modified and Adjusted EBITDA reflect increased service revenues from Transco expansion projects placed in service and the benefit of Transco’s settled general rate case, partially offset by lower deferred revenue amortization at Gulfstar. |
• | The period also benefited from favorable changes in the amortization of regulatory assets and liabilities driven by the settlement terms of Transco’s general rate case and lower operating and administrative costs. |
• | On March 24, 2020, the FERC issued an order approving Transco’s uncontested rate case settlement., which will become effective on June 1, 2020. |
• | First-quarter 2020 Modified and Adjusted EBITDA reflect increased service revenues due to higher gathering, processing and liquids handling volumes primarily from the new Northeast JV, Susquehanna Supply Hub, and the Utica Shale region, as well as the additional ownership in Utica East Ohio Midstream following the March 2019 acquisition and contribution into the Northeast JV. |
• | The period also reflects higher proportional Modified and Adjusted EBITDA driven by the Marcellus South system and Blue Racer Midstream. |
• | Gross gathering volumes, including 100% of operated equity-method investments, increased by 4% over the same period in 2019. |
• | Volumes were stable in first-quarter 2020, but Modified and Adjusted EBITDA were down primarily due to $34 million of lower revenue in the Barnett Shale driven by reduced recognition of non-cash deferred revenue and the end of a contractual MVC period as well as a $21 million impact on commodity margins and inventory driven by lower NGL prices. |
• | Lower operating and administrative costs, partially off-set the unfavorable changes described above. The change in Modified EBITDA also benefited from the absence of a 2019 impairment charge of $12 million, which is excluded from Adjusted EBITDA. |
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
(Millions, except per-share amounts) | |||||||
Revenues: | |||||||
Service revenues | $ | 1,474 | $ | 1,440 | |||
Service revenues – commodity consideration | 28 | 64 | |||||
Product sales | 411 | 550 | |||||
Total revenues | 1,913 | 2,054 | |||||
Costs and expenses: | |||||||
Product costs | 396 | 525 | |||||
Processing commodity expenses | 13 | 40 | |||||
Operating and maintenance expenses | 337 | 340 | |||||
Depreciation and amortization expenses | 429 | 416 | |||||
Selling, general, and administrative expenses | 113 | 128 | |||||
Impairment of goodwill | 187 | — | |||||
Other (income) expense – net | 7 | 44 | |||||
Total costs and expenses | 1,482 | 1,493 | |||||
Operating income (loss) | 431 | 561 | |||||
Equity earnings (losses) | 22 | 80 | |||||
Impairment of equity-method investments | (938 | ) | (74 | ) | |||
Other investing income (loss) – net | 3 | 1 | |||||
Interest incurred | (301 | ) | (306 | ) | |||
Interest capitalized | 5 | 10 | |||||
Other income (expense) – net | 4 | 11 | |||||
Income (loss) before income taxes | (774 | ) | 283 | ||||
Provision (benefit) for income taxes | (204 | ) | 69 | ||||
Net income (loss) | (570 | ) | 214 | ||||
Less: Net income (loss) attributable to noncontrolling interests | (53 | ) | 19 | ||||
Net income (loss) attributable to The Williams Companies, Inc. | (517 | ) | 195 | ||||
Preferred stock dividends | 1 | 1 | |||||
Net income (loss) available to common stockholders | $ | (518 | ) | $ | 194 | ||
Basic earnings (loss) per common share: | |||||||
Net income (loss) | $ | (.43 | ) | $ | .16 | ||
Weighted-average shares (thousands) | 1,213,019 | 1,211,489 | |||||
Diluted earnings (loss) per common share: | |||||||
Net income (loss) | $ | (.43 | ) | $ | .16 | ||
Weighted-average shares (thousands) | 1,213,019 | 1,213,592 |
March 31, 2020 | December 31, 2019 | |||||||
(Millions, except per-share amounts) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 400 | $ | 289 | ||||
Trade accounts and other receivables | 940 | 1,002 | ||||||
Allowance for doubtful accounts | (10 | ) | (6 | ) | ||||
Trade accounts and other receivables – net | 930 | 996 | ||||||
Inventories | 105 | 125 | ||||||
Other current assets and deferred charges | 130 | 170 | ||||||
Total current assets | 1,565 | 1,580 | ||||||
Investments | 5,179 | 6,235 | ||||||
Property, plant, and equipment | 41,772 | 41,510 | ||||||
Accumulated depreciation and amortization | (12,631 | ) | (12,310 | ) | ||||
Property, plant, and equipment – net | 29,141 | 29,200 | ||||||
Intangible assets – net of accumulated amortization | 7,688 | 7,959 | ||||||
Regulatory assets, deferred charges, and other | 1,056 | 1,066 | ||||||
Total assets | $ | 44,629 | $ | 46,040 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 359 | $ | 552 | ||||
Accrued liabilities | 1,129 | 1,276 | ||||||
Long-term debt due within one year | 628 | 2,140 | ||||||
Total current liabilities | 2,116 | 3,968 | ||||||
Long-term debt | 21,848 | 20,148 | ||||||
Deferred income tax liabilities | 1,602 | 1,782 | ||||||
Regulatory liabilities, deferred income, and other | 3,804 | 3,778 | ||||||
Contingent liabilities | ||||||||
Equity: | ||||||||
Stockholders’ equity: | ||||||||
Preferred stock | 35 | 35 | ||||||
Common stock ($1 par value; 1,470 million shares authorized at March 31, 2020 and December 31, 2019; 1,248 million shares issued at March 31, 2020 and 1,247 million shares issued at December 31, 2019) | 1,248 | 1,247 | ||||||
Capital in excess of par value | 24,330 | 24,323 | ||||||
Retained deficit | (12,013 | ) | (11,002 | ) | ||||
Accumulated other comprehensive income (loss) | (205 | ) | (199 | ) | ||||
Treasury stock, at cost (35 million shares of common stock) | (1,041 | ) | (1,041 | ) | ||||
Total stockholders’ equity | 12,354 | 13,363 | ||||||
Noncontrolling interests in consolidated subsidiaries | 2,905 | 3,001 | ||||||
Total equity | 15,259 | 16,364 | ||||||
Total liabilities and equity | $ | 44,629 | $ | 46,040 |
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
(Millions) | |||||||
OPERATING ACTIVITIES: | |||||||
Net income (loss) | $ | (570 | ) | $ | 214 | ||
Adjustments to reconcile to net cash provided (used) by operating activities: | |||||||
Depreciation and amortization | 429 | 416 | |||||
Provision (benefit) for deferred income taxes | (177 | ) | 75 | ||||
Equity (earnings) losses | (22 | ) | (80 | ) | |||
Distributions from unconsolidated affiliates | 169 | 172 | |||||
Impairment of goodwill | 187 | — | |||||
Impairment of equity-method investments | 938 | 74 | |||||
Amortization of stock-based awards | 9 | 14 | |||||
Cash provided (used) by changes in current assets and liabilities: | |||||||
Accounts receivable | 67 | 97 | |||||
Inventories | 19 | 1 | |||||
Other current assets and deferred charges | 20 | (6 | ) | ||||
Accounts payable | (155 | ) | (39 | ) | |||
Accrued liabilities | (150 | ) | (142 | ) | |||
Other, including changes in noncurrent assets and liabilities | 23 | (21 | ) | ||||
Net cash provided (used) by operating activities | 787 | 775 | |||||
FINANCING ACTIVITIES: | |||||||
Proceeds from (payments of) commercial paper – net | — | 1,014 | |||||
Proceeds from long-term debt | 1,702 | 708 | |||||
Payments of long-term debt | (1,518 | ) | (864 | ) | |||
Proceeds from issuance of common stock | 6 | 6 | |||||
Common dividends paid | (485 | ) | (460 | ) | |||
Dividends and distributions paid to noncontrolling interests | (44 | ) | (41 | ) | |||
Contributions from noncontrolling interests | 2 | 4 | |||||
Other – net | (10 | ) | (9 | ) | |||
Net cash provided (used) by financing activities | (347 | ) | 358 | ||||
INVESTING ACTIVITIES: | |||||||
Property, plant, and equipment: | |||||||
Capital expenditures (1) | (306 | ) | (422 | ) | |||
Dispositions – net | (3 | ) | (4 | ) | |||
Contributions in aid of construction | 14 | 10 | |||||
Purchases of businesses, net of cash acquired | — | (727 | ) | ||||
Purchases of and contributions to equity-method investments | (30 | ) | (99 | ) | |||
Other – net | (4 | ) | (16 | ) | |||
Net cash provided (used) by investing activities | (329 | ) | (1,258 | ) | |||
Increase (decrease) in cash and cash equivalents | 111 | (125 | ) | ||||
Cash and cash equivalents at beginning of year | 289 | 168 | |||||
Cash and cash equivalents at end of period | $ | 400 | $ | 43 | |||
_____________ | |||||||
(1) Increases to property, plant, and equipment | $ | (254 | ) | $ | (418 | ) | |
Changes in related accounts payable and accrued liabilities | (52 | ) | (4 | ) | |||
Capital expenditures | $ | (306 | ) | $ | (422 | ) |
Transmission & Gulf of Mexico | ||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||
2019(1) | 2020 | |||||||||||||||||||
(Dollars in millions) | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | ||||||||||||||
Regulated interstate natural gas transportation, storage, and other revenues (2) | $ | 658 | $ | 650 | $ | 682 | $ | 690 | $ | 2,680 | $ | 692 | ||||||||
Gathering, processing, and transportation revenues | 128 | 121 | 117 | 113 | 479 | 99 | ||||||||||||||
Other fee revenues (2) | 3 | 5 | 3 | 4 | 15 | 4 | ||||||||||||||
Commodity margins | 8 | 7 | 6 | 4 | 25 | 3 | ||||||||||||||
Operating and administrative costs (2) | (197 | ) | (230 | ) | (209 | ) | (242 | ) | (878 | ) | (184 | ) | ||||||||
Other segment income (expenses) - net | (6 | ) | (7 | ) | 22 | 22 | 31 | 4 | ||||||||||||
Impairment of certain assets (3) | — | — | — | (354 | ) | (354 | ) | — | ||||||||||||
Proportional Modified EBITDA of equity-method investments | 42 | 44 | 44 | 47 | 177 | 44 | ||||||||||||||
Modified EBITDA | 636 | 590 | 665 | 284 | 2,175 | 662 | ||||||||||||||
Adjustments | — | 38 | 15 | 359 | 412 | 7 | ||||||||||||||
Adjusted EBITDA | $ | 636 | $ | 628 | $ | 680 | $ | 643 | $ | 2,587 | $ | 669 | ||||||||
Statistics for Operated Assets | ||||||||||||||||||||
Natural Gas Transmission | ||||||||||||||||||||
Transcontinental Gas Pipe Line | ||||||||||||||||||||
Avg. daily transportation volumes (Tbtu) | 13.2 | 12.2 | 13.2 | 13.3 | 13.0 | 13.8 | ||||||||||||||
Avg. daily firm reserved capacity (Tbtu) | 17.1 | 17.0 | 17.3 | 17.5 | 17.2 | 17.7 | ||||||||||||||
Northwest Pipeline LLC | ||||||||||||||||||||
Avg. daily transportation volumes (Tbtu) | 2.7 | 2.0 | 1.9 | 2.7 | 2.3 | 2.6 | ||||||||||||||
Avg. daily firm reserved capacity (Tbtu) | 3.1 | 3.0 | 3.0 | 3.0 | 3.0 | 3.0 | ||||||||||||||
Gulfstream - Non-consolidated | ||||||||||||||||||||
Avg. daily transportation volumes (Tbtu) | 1.1 | 1.3 | 1.3 | 1.2 | 1.2 | 1.2 | ||||||||||||||
Avg. daily firm reserved capacity (Tbtu) | 1.3 | 1.3 | 1.3 | 1.3 | 1.3 | 1.3 | ||||||||||||||
Gathering, Processing, and Crude Oil Transportation | ||||||||||||||||||||
Consolidated (4) | ||||||||||||||||||||
Gathering volumes (Bcf/d) | 0.25 | 0.25 | 0.22 | 0.29 | 0.25 | 0.30 | ||||||||||||||
Plant inlet natural gas volumes (Bcf/d) | 0.53 | 0.55 | 0.50 | 0.58 | 0.54 | 0.58 | ||||||||||||||
NGL production (Mbbls/d) | 36 | 33 | 27 | 31 | 32 | 32 | ||||||||||||||
NGL equity sales (Mbbls/d) | 7 | 9 | 5 | 6 | 7 | 5 | ||||||||||||||
Crude oil transportation volumes (Mbbls/d) | 146 | 136 | 128 | 135 | 136 | 138 | ||||||||||||||
Non-consolidated (5) | ||||||||||||||||||||
Gathering volumes (Bcf/d) | 0.35 | 0.38 | 0.36 | 0.35 | 0.36 | 0.35 | ||||||||||||||
Plant inlet natural gas volumes (Bcf/d) | 0.35 | 0.39 | 0.36 | 0.35 | 0.36 | 0.35 | ||||||||||||||
NGL production (Mbbls/d) | 24 | 27 | 24 | 26 | 25 | 24 | ||||||||||||||
NGL equity sales (Mbbls/d) | 7 | 8 | 6 | 5 | 6 | 5 | ||||||||||||||
(1) Recast due to the change in segments in the first quarter of 2020. | ||||||||||||||||||||
(2) Excludes certain amounts associated with revenues and operating costs for tracked or reimbursable charges. | ||||||||||||||||||||
(3) Our partners' $209 million share of the fourth-quarter 2019 impairment of the Constitution pipeline project is reflected outside of Modified EBITDA within Net loss attributable to noncontrolling interests. | ||||||||||||||||||||
(4) Excludes volumes associated with equity-method investments that are not consolidated in our results. | ||||||||||||||||||||
(5) Includes 100% of the volumes associated with operated equity-method investments. |
Northeast G&P | ||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||
2019 | 2020 | |||||||||||||||||||
(Dollars in millions) | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | ||||||||||||||
Gathering, processing, transportation, and fractionation revenues | $ | 239 | $ | 291 | $ | 310 | $ | 331 | $ | 1,171 | $ | 312 | ||||||||
Other fee revenues (1) | 23 | 21 | 23 | 24 | 91 | 25 | ||||||||||||||
Commodity margins | 2 | — | 1 | (1 | ) | 2 | 1 | |||||||||||||
Operating and administrative costs (1) | (83 | ) | (112 | ) | (100 | ) | (98 | ) | (393 | ) | (87 | ) | ||||||||
Other segment income (expenses) - net | (4 | ) | — | 3 | — | (1 | ) | (2 | ) | |||||||||||
Impairment of certain assets | — | — | — | (10 | ) | (10 | ) | — | ||||||||||||
Proportional Modified EBITDA of equity-method investments | 122 | 103 | 108 | 121 | 454 | 120 | ||||||||||||||
Modified EBITDA | 299 | 303 | 345 | 367 | 1,314 | 369 | ||||||||||||||
Adjustments | 3 | 16 | (2 | ) | 10 | 27 | 1 | |||||||||||||
Adjusted EBITDA | $ | 302 | $ | 319 | $ | 343 | $ | 377 | $ | 1,341 | $ | 370 | ||||||||
Statistics for Operated Assets | ||||||||||||||||||||
Gathering and Processing | ||||||||||||||||||||
Consolidated (2) | ||||||||||||||||||||
Gathering volumes (Bcf/d) | 4.05 | 4.16 | 4.33 | 4.41 | 4.24 | 4.27 | ||||||||||||||
Plant inlet natural gas volumes (Bcf/d) | 0.63 | 1.04 | 1.16 | 1.33 | 1.04 | 1.24 | ||||||||||||||
NGL production (Mbbls/d) | 44 | 58 | 92 | 106 | 76 | 92 | ||||||||||||||
NGL equity sales (Mbbls/d) | 4 | 3 | 3 | 2 | 3 | 2 | ||||||||||||||
Non-consolidated (3) | ||||||||||||||||||||
Gathering volumes (Bcf/d) | 4.27 | 4.08 | 4.35 | 4.47 | 4.29 | 4.40 | ||||||||||||||
(1) Excludes certain amounts associated with revenues and operating costs for reimbursable charges. | ||||||||||||||||||||
(2) Includes volumes associated with Susquehanna Supply Hub, the Northeast JV, and Utica Supply Hub, all of which are consolidated. The Northeast JV includes 100% of volumes handled by UEOM from the date of consolidation on March 18, 2019, but does not include volumes prior to that date as we did not operate UEOM. | ||||||||||||||||||||
(3) Includes 100% of the volumes associated with operated equity-method investments, including the Laurel Mountain Midstream partnership; and the Bradford Supply Hub and a portion of the Marcellus South Supply Hub within the Appalachia Midstream Services partnership. Volumes handled by Blue Racer Midstream (gathering and processing), which we do not operate, are not included. |
West | ||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||
2019 (1) | 2020 | |||||||||||||||||||
(Dollars in millions) | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | ||||||||||||||
Gathering, processing, transportation, storage, and fractionation revenues | $ | 344 | $ | 355 | $ | 307 | $ | 302 | $ | 1,308 | $ | 299 | ||||||||
Other fee revenues (2) | 7 | 6 | 6 | 4 | 23 | 6 | ||||||||||||||
Commodity margins | 19 | 18 | 24 | 33 | 94 | 2 | ||||||||||||||
Operating and administrative costs (2) | (125 | ) | (135 | ) | (116 | ) | (114 | ) | (490 | ) | (115 | ) | ||||||||
Other segment income (expenses) - net | (3 | ) | 4 | (5 | ) | 6 | 2 | (5 | ) | |||||||||||
Impairment of certain assets | (12 | ) | (64 | ) | — | (24 | ) | (100 | ) | — | ||||||||||
Proportional Modified EBITDA of equity-method investments | 26 | 28 | 29 | 32 | 115 | 28 | ||||||||||||||
Modified EBITDA | 256 | 212 | 245 | 239 | 952 | 215 | ||||||||||||||
Adjustments | 14 | 75 | (1 | ) | 24 | 112 | 1 | |||||||||||||
Adjusted EBITDA | $ | 270 | $ | 287 | $ | 244 | $ | 263 | $ | 1,064 | $ | 216 | ||||||||
Statistics for Operated Assets | ||||||||||||||||||||
Gathering and Processing | ||||||||||||||||||||
Consolidated (3) | ||||||||||||||||||||
Gathering volumes (Bcf/d) | 3.42 | 3.53 | 3.61 | 3.51 | 3.52 | 3.43 | ||||||||||||||
Plant inlet natural gas volumes (Bcf/d) | 1.41 | 1.52 | 1.56 | 1.44 | 1.48 | 1.26 | ||||||||||||||
NGL production (Mbbls/d) | 62 | 59 | 48 | 46 | 54 | 35 | ||||||||||||||
NGL equity sales (Mbbls/d) | 27 | 28 | 17 | 17 | 22 | 12 | ||||||||||||||
Non-consolidated (4) | ||||||||||||||||||||
Gathering volumes (Bcf/d) | 0.17 | 0.15 | 0.21 | 0.27 | 0.20 | 0.20 | ||||||||||||||
Plant inlet natural gas volumes (Bcf/d) | 0.17 | 0.14 | 0.21 | 0.26 | 0.20 | 0.20 | ||||||||||||||
NGL production (Mbbls/d) | 7 | 1 | 18 | 22 | 12 | 17 | ||||||||||||||
NGL and Crude Oil Transportation volumes (Mbbls/d) (5) | 254 | 269 | 250 | 238 | 253 | 227 | ||||||||||||||
(1) Recast due to the change in segments in the first quarter of 2020. | ||||||||||||||||||||
(2) Excludes certain amounts associated with revenues and operating costs for reimbursable charges. | ||||||||||||||||||||
(3) Excludes volumes associated with equity-method investments that are not consolidated in our results. | ||||||||||||||||||||
(4) Includes 100% of the volumes associated with operated equity-method investments, including the Jackalope Gas Gathering System (sold in April 2019) and Rocky Mountain Midstream. | ||||||||||||||||||||
(5) Includes 100% of the volumes associated with operated equity-method investments, including the Overland Pass Pipeline Company and Rocky Mountain Midstream. |
Capital Expenditures and Investments | ||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||
2019(1) | 2020 | |||||||||||||||||||
(Dollars in millions) | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | ||||||||||||||
Capital expenditures: | ||||||||||||||||||||
Transmission & Gulf of Mexico | $ | 204 | $ | 255 | $ | 543 | $ | 252 | $ | 1,254 | $ | 185 | ||||||||
Northeast G&P | 152 | 177 | 131 | 74 | 534 | 46 | ||||||||||||||
West | 58 | 59 | 107 | 76 | 300 | 72 | ||||||||||||||
Other | 8 | 6 | 5 | 2 | 21 | 3 | ||||||||||||||
Total (2) | $ | 422 | $ | 497 | $ | 786 | $ | 404 | $ | 2,109 | $ | 306 | ||||||||
Purchases of investments: | ||||||||||||||||||||
Transmission & Gulf of Mexico | $ | — | $ | 12 | $ | 3 | $ | 1 | $ | 16 | $ | 1 | ||||||||
Northeast G&P | 47 | 61 | 34 | 63 | 205 | 27 | ||||||||||||||
West | 52 | 70 | 82 | 28 | 232 | 2 | ||||||||||||||
Total | $ | 99 | $ | 143 | $ | 119 | $ | 92 | $ | 453 | $ | 30 | ||||||||
Summary: | ||||||||||||||||||||
Transmission & Gulf of Mexico | $ | 204 | $ | 267 | $ | 546 | $ | 253 | $ | 1,270 | $ | 186 | ||||||||
Northeast G&P | 199 | 238 | 165 | 137 | 739 | 73 | ||||||||||||||
West | 110 | 129 | 189 | 104 | 532 | 74 | ||||||||||||||
Other | 8 | 6 | 5 | 2 | 21 | 3 | ||||||||||||||
Total | $ | 521 | $ | 640 | $ | 905 | $ | 496 | $ | 2,562 | $ | 336 | ||||||||
Capital investments: | ||||||||||||||||||||
Increases to property, plant, and equipment | $ | 418 | $ | 559 | $ | 730 | $ | 316 | $ | 2,023 | $ | 254 | ||||||||
Purchases of businesses, net of cash acquired | 727 | — | 1 | — | 728 | — | ||||||||||||||
Purchases of investments | 99 | 143 | 119 | 92 | 453 | 30 | ||||||||||||||
Total | $ | 1,244 | $ | 702 | $ | 850 | $ | 408 | $ | 3,204 | $ | 284 | ||||||||
(2) Increases to property, plant, and equipment | $ | 418 | $ | 559 | $ | 730 | $ | 316 | $ | 2,023 | $ | 254 | ||||||||
Changes in related accounts payable and accrued liabilities | 4 | (62 | ) | 56 | 88 | 86 | 52 | |||||||||||||
Capital expenditures | $ | 422 | $ | 497 | $ | 786 | $ | 404 | $ | 2,109 | $ | 306 | ||||||||
Contributions from noncontrolling interests | $ | 4 | $ | 28 | $ | — | $ | 4 | $ | 36 | $ | 2 | ||||||||
Contributions in aid of construction | $ | 10 | $ | 8 | $ | 7 | $ | 27 | $ | 52 | $ | 14 | ||||||||
Proceeds from sale of businesses, net of cash divested | $ | (2 | ) | $ | — | $ | — | $ | — | $ | (2 | ) | $ | — | ||||||
Proceeds from sale of partial interest in consolidated subsidiary | $ | — | $ | 1,330 | $ | — | $ | 4 | $ | 1,334 | $ | — | ||||||||
Proceeds from disposition of equity-method investments | $ | — | $ | 485 | $ | — | $ | — | $ | 485 | $ | — | ||||||||
(1) Recast due to the change in segments in the first quarter of 2020. |
Reconciliation of Income (Loss) from Continuing Operations Attributable to The Williams Companies, Inc. to Adjusted Income | ||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||
2019(1) | 2020 | |||||||||||||||||||
(Dollars in millions, except per-share amounts) | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | ||||||||||||||
Income (loss) from continuing operations attributable to The Williams Companies, Inc. available to common stockholders | $ | 194 | $ | 310 | $ | 220 | $ | 138 | $ | 862 | $ | (518 | ) | |||||||
Income (loss) from continuing operations - diluted earnings (loss) per common share (2) | $ | .16 | $ | .26 | $ | .18 | $ | .11 | $ | .71 | $ | (.43 | ) | |||||||
Adjustments: | ||||||||||||||||||||
Transmission & Gulf of Mexico | ||||||||||||||||||||
Constitution Pipeline project development costs | $ | — | $ | 1 | $ | 1 | $ | 1 | $ | 3 | $ | — | ||||||||
Impairment of certain assets (3) | — | — | — | 354 | 354 | — | ||||||||||||||
Pension plan settlement charge | — | — | — | — | — | 4 | ||||||||||||||
Adjustment of Transco’s regulatory asset for post-WPZ Merger state deferred income tax change consistent with filed rate case | — | — | — | — | — | 2 | ||||||||||||||
Reversal of expenditures capitalized in prior years | — | 15 | — | 1 | 16 | — | ||||||||||||||
Severance and related costs | — | 22 | 14 | 3 | 39 | 1 | ||||||||||||||
Total Transmission & Gulf of Mexico adjustments | — | 38 | 15 | 359 | 412 | 7 | ||||||||||||||
Northeast G&P | ||||||||||||||||||||
Expenses associated with new venture | 3 | 6 | 1 | — | 10 | — | ||||||||||||||
Pension plan settlement charge | — | — | — | — | — | 1 | ||||||||||||||
Impairment of certain assets | — | — | — | 10 | 10 | — | ||||||||||||||
Severance and related costs | — | 10 | (3 | ) | — | 7 | — | |||||||||||||
Total Northeast G&P adjustments | 3 | 16 | (2 | ) | 10 | 27 | 1 | |||||||||||||
West | ||||||||||||||||||||
Impairment of certain assets | 12 | 64 | — | 24 | 100 | — | ||||||||||||||
Pension plan settlement charge | — | — | — | — | — | 1 | ||||||||||||||
Adjustment of gain on sale of Four Corners assets | 2 | — | — | — | 2 | — | ||||||||||||||
Severance and related costs | — | 11 | (1 | ) | — | 10 | — | |||||||||||||
Total West adjustments | 14 | 75 | (1 | ) | 24 | 112 | 1 | |||||||||||||
Other | ||||||||||||||||||||
Adjustment of Transco’s regulatory asset for post-WPZ Merger state deferred income tax change consistent with filed rate case | 12 | — | — | — | 12 | — | ||||||||||||||
Accrual for loss contingencies associated with former operations | — | — | 9 | (5 | ) | 4 | — | |||||||||||||
Severance and related costs | — | — | — | 1 | 1 | — | ||||||||||||||
Total Other adjustments | 12 | — | 9 | (4 | ) | 17 | — | |||||||||||||
Adjustments included in Modified EBITDA | 29 | 129 | 21 | 389 | 568 | 9 | ||||||||||||||
Adjustments below Modified EBITDA | ||||||||||||||||||||
Impairment of equity-method investments | 74 | (2 | ) | 114 | — | 186 | 938 | |||||||||||||
Impairment of goodwill (3) | — | — | — | — | — | 187 | ||||||||||||||
Share of impairment of goodwill at equity-method investment | — | — | — | — | — | 78 | ||||||||||||||
Adjustment of gain on deconsolidation of certain Permian assets | 2 | — | — | — | 2 | — | ||||||||||||||
Loss on deconsolidation of Constitution | — | — | — | 27 | 27 | — | ||||||||||||||
Gain on sale of equity-method investments | — | (122 | ) | — | — | (122 | ) | — | ||||||||||||
Allocation of adjustments to noncontrolling interests | — | (1 | ) | — | (210 | ) | (211 | ) | (65 | ) | ||||||||||
76 | (125 | ) | 114 | (183 | ) | (118 | ) | 1,138 | ||||||||||||
Total adjustments | 105 | 4 | 135 | 206 | 450 | 1,147 | ||||||||||||||
Less tax effect for above items | (26 | ) | (1 | ) | (34 | ) | (51 | ) | (112 | ) | (316 | ) | ||||||||
Adjusted income from continuing operations available to common stockholders | $ | 273 | $ | 313 | $ | 321 | $ | 293 | $ | 1,200 | $ | 313 | ||||||||
Adjusted income from continuing operations - diluted earnings per common share (2) | $ | .22 | $ | .26 | $ | .26 | $ | .24 | $ | .99 | $ | .26 | ||||||||
Weighted-average shares - diluted (thousands) | 1,213,592 | 1,214,065 | 1,214,165 | 1,214,212 | 1,214,011 | 1,214,348 | ||||||||||||||
(1) Recast due to the change in segments in the first quarter of 2020. | ||||||||||||||||||||
(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. | ||||||||||||||||||||
(3) Our partners' $209 million share of the fourth-quarter 2019 impairment of the Constitution pipeline project and $65 million share of the first-quarter 2020 impairment of goodwill are reflected below in Allocation of adjustments to noncontrolling interests. |
Reconciliation of Distributable Cash Flow (DCF) | ||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||
2019 | 2020 | |||||||||||||||||||
(Dollars in millions, except coverage ratios) | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | ||||||||||||||
The Williams Companies, Inc. | ||||||||||||||||||||
Reconciliation of GAAP "Net Income (Loss)" to Non-GAAP "Modified EBITDA", "Adjusted EBITDA" and "Distributable cash flow" | ||||||||||||||||||||
Net income (loss) | $ | 214 | $ | 324 | $ | 242 | $ | (66 | ) | $ | 714 | $ | (570 | ) | ||||||
Provision (benefit) for income taxes | 69 | 98 | 77 | 91 | 335 | (204 | ) | |||||||||||||
Interest expense | 296 | 296 | 296 | 298 | 1,186 | 296 | ||||||||||||||
Equity (earnings) losses | (80 | ) | (87 | ) | (93 | ) | (115 | ) | (375 | ) | (22 | ) | ||||||||
Impairment of goodwill | — | — | — | — | — | 187 | ||||||||||||||
Impairment of equity-method investments | 74 | (2 | ) | 114 | — | 186 | 938 | |||||||||||||
Other investing (income) loss - net | (1 | ) | (124 | ) | (7 | ) | 25 | (107 | ) | (3 | ) | |||||||||
Proportional Modified EBITDA of equity-method investments | 190 | 175 | 181 | 200 | 746 | 192 | ||||||||||||||
Depreciation and amortization expenses | 416 | 424 | 435 | 439 | 1,714 | 429 | ||||||||||||||
Accretion expense associated with asset retirement obligations for nonregulated operations | 9 | 8 | 8 | 8 | 33 | 10 | ||||||||||||||
(Income) loss from discontinued operations, net of tax | — | — | — | 15 | 15 | — | ||||||||||||||
Modified EBITDA | 1,187 | 1,112 | 1,253 | 895 | 4,447 | 1,253 | ||||||||||||||
EBITDA adjustments | 29 | 129 | 21 | 389 | 568 | 9 | ||||||||||||||
Adjusted EBITDA | 1,216 | 1,241 | 1,274 | 1,284 | 5,015 | 1,262 | ||||||||||||||
Maintenance capital expenditures (1) | (93 | ) | (130 | ) | (128 | ) | (113 | ) | (464 | ) | (52 | ) | ||||||||
Preferred dividends | (1 | ) | — | (1 | ) | (1 | ) | (3 | ) | (1 | ) | |||||||||
Net interest expense - cash portion (2) | (304 | ) | (302 | ) | (301 | ) | (306 | ) | (1,213 | ) | (304 | ) | ||||||||
Cash taxes | 3 | 85 | (2 | ) | — | 86 | — | |||||||||||||
Dividends and distributions paid to noncontrolling interests | (41 | ) | (27 | ) | (20 | ) | (36 | ) | (124 | ) | (44 | ) | ||||||||
Distributable cash flow | $ | 780 | $ | 867 | $ | 822 | $ | 828 | $ | 3,297 | $ | 861 | ||||||||
Common dividends paid | $ | 460 | $ | 461 | $ | 461 | $ | 460 | $ | 1,842 | $ | 485 | ||||||||
Coverage ratios: | ||||||||||||||||||||
Distributable cash flow divided by Common dividends paid | 1.70 | 1.88 | 1.78 | 1.80 | 1.79 | 1.78 | ||||||||||||||
Net income (loss) divided by Common dividends paid | 0.47 | 0.70 | 0.52 | (0.14 | ) | 0.39 | (1.18 | ) | ||||||||||||
(1) Includes proportionate share of maintenance capital expenditures of equity-method investments. | ||||||||||||||||||||
(2) Includes proportionate share of interest expense of equity-method investments. |
Reconciliation of "Net Income (Loss)" to “Modified EBITDA” and Non-GAAP “Adjusted EBITDA” | ||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||
2019(1) | 2020 | |||||||||||||||||||
(Dollars in millions) | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | ||||||||||||||
Net income (loss) | $ | 214 | $ | 324 | $ | 242 | $ | (66 | ) | $ | 714 | $ | (570 | ) | ||||||
Provision (benefit) for income taxes | 69 | 98 | 77 | 91 | 335 | (204 | ) | |||||||||||||
Interest expense | 296 | 296 | 296 | 298 | 1,186 | 296 | ||||||||||||||
Equity (earnings) losses | (80 | ) | (87 | ) | (93 | ) | (115 | ) | (375 | ) | (22 | ) | ||||||||
Impairment of goodwill | — | — | — | — | — | 187 | ||||||||||||||
Impairment of equity-method investments | 74 | (2 | ) | 114 | — | 186 | 938 | |||||||||||||
Other investing (income) loss - net | (1 | ) | (124 | ) | (7 | ) | 25 | (107 | ) | (3 | ) | |||||||||
Proportional Modified EBITDA of equity-method investments | 190 | 175 | 181 | 200 | 746 | 192 | ||||||||||||||
Depreciation and amortization expenses | 416 | 424 | 435 | 439 | 1,714 | 429 | ||||||||||||||
Accretion expense associated with asset retirement obligations for nonregulated operations | 9 | 8 | 8 | 8 | 33 | 10 | ||||||||||||||
(Income) loss from discontinued operations, net of tax | — | — | — | 15 | 15 | — | ||||||||||||||
Modified EBITDA | $ | 1,187 | $ | 1,112 | $ | 1,253 | $ | 895 | $ | 4,447 | $ | 1,253 | ||||||||
Transmission & Gulf of Mexico | $ | 636 | $ | 590 | $ | 665 | $ | 284 | $ | 2,175 | $ | 662 | ||||||||
Northeast G&P | 299 | 303 | 345 | 367 | 1,314 | 369 | ||||||||||||||
West | 256 | 212 | 245 | 239 | 952 | 215 | ||||||||||||||
Other | (4 | ) | 7 | (2 | ) | 5 | 6 | 7 | ||||||||||||
Total Modified EBITDA | $ | 1,187 | $ | 1,112 | $ | 1,253 | $ | 895 | $ | 4,447 | $ | 1,253 | ||||||||
Adjustments included in Modified EBITDA (2): | ||||||||||||||||||||
Transmission & Gulf of Mexico | $ | — | $ | 38 | $ | 15 | $ | 359 | $ | 412 | $ | 7 | ||||||||
Northeast G&P | 3 | 16 | (2 | ) | 10 | 27 | 1 | |||||||||||||
West | 14 | 75 | (1 | ) | 24 | 112 | 1 | |||||||||||||
Other | 12 | — | 9 | (4 | ) | 17 | — | |||||||||||||
Total Adjustments included in Modified EBITDA | $ | 29 | $ | 129 | $ | 21 | $ | 389 | $ | 568 | $ | 9 | ||||||||
Adjusted EBITDA: | ||||||||||||||||||||
Transmission & Gulf of Mexico | $ | 636 | $ | 628 | $ | 680 | $ | 643 | $ | 2,587 | $ | 669 | ||||||||
Northeast G&P | 302 | 319 | 343 | 377 | 1,341 | 370 | ||||||||||||||
West | 270 | 287 | 244 | 263 | 1,064 | 216 | ||||||||||||||
Other | 8 | 7 | 7 | 1 | 23 | 7 | ||||||||||||||
Total Adjusted EBITDA | $ | 1,216 | $ | 1,241 | $ | 1,274 | $ | 1,284 | $ | 5,015 | $ | 1,262 | ||||||||
(1) Recast due to change in segments in the first quarter of 2020. | ||||||||||||||||||||
(2) Adjustments by segment are detailed in the "Reconciliation of Income (Loss) from Continuing Operations Attributable to The Williams Companies, Inc. to Adjusted Income," which is also included in these materials. |
Reconciliation of GAAP "Net Income (Loss)" to Non-GAAP "Modified EBITDA", "Adjusted EBITDA" and "Distributable Cash Flow" | ||||||||||||
2020 Guidance | ||||||||||||
(Dollars in millions, except per share amounts and coverage ratio) | Low | Mid | High | |||||||||
Net income (loss) | $ | 304 | $ | 454 | $ | 604 | ||||||
Provision (benefit) for income taxes | 134 | |||||||||||
Interest expense | 1,180 | |||||||||||
Equity (earnings) losses | (450 | ) | ||||||||||
Share of impairment of goodwill at equity-method investment | 78 | |||||||||||
Impairment of equity-method investments | 938 | |||||||||||
Impairment of goodwill | 187 | |||||||||||
Proportional Modified EBITDA of equity-method investments | 820 | |||||||||||
Depreciation and amortization expenses and accretion for asset retirement obligations associated with nonregulated operations | 1,750 | |||||||||||
Modified EBITDA | $ | 4,941 | $ | 5,091 | $ | 5,241 | ||||||
EBITDA Adjustments (1) | 9 | |||||||||||
Adjusted EBITDA | $ | 4,950 | $ | 5,100 | $ | 5,250 | ||||||
Net interest expense - cash portion (2) | (1,215 | ) | ||||||||||
Maintenance capital expenditures (2) | (550 | ) | (500 | ) | (450 | ) | ||||||
Cash taxes | 60 | |||||||||||
Dividends and distributions paid to noncontrolling interests and other | (195 | ) | ||||||||||
Distributable cash flow (DCF) | $ | 3,050 | $ | 3,250 | $ | 3,450 | ||||||
--Distributable cash flow per share (3) | $ | 2.50 | $ | 2.67 | $ | 2.83 | ||||||
Dividends paid | (1,950 | ) | ||||||||||
Excess cash available after dividends | $ | 1,100 | $ | 1,300 | $ | 1,500 | ||||||
Dividend per share | $ | 1.60 | ||||||||||
Coverage ratio (Distributable cash flow / Dividends paid) | 1.56x | 1.67x | 1.77x | |||||||||
(1) See 1Q 2020 "Reconciliation of Income (Loss) Attributable to Williams to Adjusted Income" for additional details of adjustments | ||||||||||||
(2) Includes proportionate share of equity-method investments | ||||||||||||
(3) Distributable cash flow / diluted weighted-average common shares of 1,218 million |
Reconciliation of GAAP Net Income (Loss) to Non-GAAP Adjusted Income Available to Common Stockholders | ||||||||||||
2020 Guidance | ||||||||||||
(Dollars in millions, except per-share amounts) | Low | Mid | High | |||||||||
Net income (loss) | $ | 304 | $ | 454 | $ | 604 | ||||||
Less: Net income (loss) attributable to noncontrolling interests & preferred dividends | (25 | ) | ||||||||||
Net income (loss) attributable to The Williams Companies, Inc. available to common stockholders | 329 | 479 | 629 | |||||||||
Adjustments: | ||||||||||||
Adjustments included in Modified EBITDA (1) | 9 | |||||||||||
Adjustments below Modified EBITDA (1) | 1,203 | |||||||||||
Allocation of adjustments to noncontrolling interests (1) | (65 | ) | ||||||||||
Total adjustments | 1,147 | |||||||||||
Less tax effect for above items | (316 | ) | ||||||||||
Adjusted income available to common stockholders | $ | 1,160 | $ | 1,310 | $ | 1,460 | ||||||
Adjusted diluted earnings per common share | $ | 0.95 | $ | 1.08 | $ | 1.20 | ||||||
Weighted-average shares - diluted (millions) | 1,218 | |||||||||||
(1) See 1Q 2020 "Reconciliation of Income (Loss) Attributable to Williams to Adjusted Income" for additional details of adjustments |
• | Levels of dividends to Williams stockholders; |
• | Future credit ratings of Williams and its 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, natural gas liquids and crude oil prices, supply, and demand; |
• | Demand for our services; |
• | The impact of the novel coronavirus (COVID-19) pandemic. |
• | Availability of supplies, market demand, and volatility of prices; |
• | Development and rate of adoption of alternative energy sources; |
• | The impact of existing and future laws and 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 exposure to the credit risk of our customers and counterparties; |
• | Our ability to acquire new businesses and assets and successfully integrate those operations and assets into existing businesses as well as successfully expand our facilities, and to consummate asset sales on acceptable terms; |
• | Whether we are able to successfully identify, evaluate, and timely execute our capital projects and investment opportunities; |
• | The strength and financial resources of our competitors and the effects of competition; |
• | The amount of cash distributions from and capital requirements of our investments and joint ventures in which we participate; |
• | Whether we will be able to effectively execute our financing plan; |
• | Increasing scrutiny and changing expectations from stakeholders with respect to our environmental, social, and governance practices; |
• | The physical and financial risks associated with climate change; |
• | The impact of operational and developmental hazards and unforeseen interruptions; |
• | The risks resulting from outbreaks or other public health crises, including the novel coronavirus (COVID-19); |
• | Risks associated with weather and natural phenomena, including climate conditions and physical damage to our facilities; |
• | Acts of terrorism, cybersecurity incidents, and related disruptions; |
• | Our costs and funding obligations for defined benefit pension plans and other postretirement benefit plans; |
• | Changes in maintenance and construction costs, as well as our ability to obtain sufficient construction-related inputs, including skilled labor; |
• | 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); |
• | 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 ability of the members of the Organization of Petroleum Exporting Countries and other oil exporting nations to agree to and maintain oil price and production controls and the impact on domestic production; |
• | Changes in the current geopolitical situation; |
• | Whether we are able to pay current and expected levels of dividends; |
• | Additional risks described in our filings with the Securities and Exchange Commission (SEC). |
Document and Entity Information |
May 04, 2020 |
---|---|
Document and Entity Information [Abstract] | |
Document Type | 8-K |
Document Period End Date | May 04, 2020 |
Entity Registrant Name | Williams Companies, Inc. |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 1-4174 |
Entity Tax Identification Number | 73-0569878 |
Entity Address, Address Line One | One Williams Center |
Entity Address, City or Town | Tulsa |
Entity Address, State or Province | OK |
Entity Address, Postal Zip Code | 74172-0172 |
City Area Code | 918 |
Local Phone Number | 573-2000 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common Stock, $1.00 par value |
Trading Symbol | WMB |
Security Exchange Name | NYSE |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0000107263 |
Amendment Flag | false |
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