Williams (NYSE: WMB) today announced its unaudited financial
results for the three and six months ended June 30, 2019.
Strong 2Q 2019 Results Compared with 2Q 2018
- Net Income Attributable to Williams available to common
stockholders of $310 million; up $175 million or 130%; Year-to-Date
("YTD") up $217 million or 76%
- Net Income Per Share of $0.26; up 63%; Adjusted Income Per
Share of $0.26; up 53%
- Cash Flow From Operations of $1.069 billion; up $178 million or
20%; YTD up $259 million or 16%
- Adjusted EBITDA of $1.241 billion; up $131 million or 12%; YTD
up $212 million or 9%
- Distributable Cash Flow ("DCF") of $867 million; up $230
million or 36%; YTD up $287 million or 21%
- Dividend Coverage Ratio is 1.88x
Improvement of Leverage Metrics Continues
- Completed formation of joint venture with Canada Pension Plan
Investment Board ("CPPIB"); received $1.33 billion from CPPIB in
exchange for 35% interest in new Northeast JV
- Completed sale of our 50% interest in Jackalope Gas Gathering
Services, LLC to an affiliate of Crestwood Equity Partners L.P. for
$485 million
- Debt (Net of Cash) to Adjusted EBITDA at Quarter End:
4.43x
Solid Execution Delivers Strong Results
- Northeast G&P segment up 19% in Modified EBITDA and 25% in
Adjusted EBITDA 2Q 2019 vs. 2Q 2018
- Atlantic-Gulf segment up 10% in Modified EBITDA and 23% in
Adjusted EBITDA 2Q 2019 vs. 2Q 2018
- Norphlet Deepwater-Gulf project placed in service; first gas
delivery on June 22; increasing volumes at Mobile Bay processing
facility
- Gathering volumes on operated assets up 11% 2Q 2019 vs. 2Q
2018
CEO Perspective
Alan Armstrong, president and chief executive officer, made the
following comments:
"Strong demand for natural gas and the resiliency of our
well-positioned business are clearly reflected in our
second-quarter 2019 results. Compared to second-quarter 2018, our
Cash Flow From Operations increased by 20% and Adjusted Income Per
Share rose by 53%. Low gas prices will continue to incentivize
demand growth, and demand for low cost power generation, LNG
exports and new industrial loads will grow even faster in the
second half of the year. So we expect this predictable cash flow
growth to continue.
"We expect to maintain the momentum we've achieved in
deleveraging as we continue our intense focus on the efficiency of
our operations and lowering our costs. This disciplined approach
ensures we deliver the most competitive cost structure in our space
for our shareholders. We now see our 2019 leverage coming in better
than expected at less than 4.5x versus our original guidance of
less than 4.75x. That's a tribute to crisp execution in operations,
growth projects and value-adding transactions."
Armstrong added, "This quarter also saw the delivery of our 2018
Sustainability Report. We recognize the important role natural gas
plays in helping to address environmental concerns about air
quality and climate change, while providing lower utility bills to
consumers and industry. As our actions demonstrate, Williams is
eager to do its part to help our country meet its climate goals
with low carbon natural gas solutions that are ready now and keep
jobs and industry here at home."
Williams Summary Financial Information
2Q
YTD
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.
2019
2018
2019
2018
GAAP Measures
Net Income
$310
$135
$504
$287
Net Income Per Share
$0.26
$0.16
$0.41
$0.35
Cash Flow From Operations
$1,069
$891
$1,844
$1,585
Non-GAAP Measures (1)
Adjusted EBITDA
$1,241
$1,110
$2,457
$2,245
Adjusted Income
$313
$143
$586
$302
Adjusted Income Per Share
$0.26
$0.17
$0.48
$0.36
Distributable Cash Flow
$867
$637
$1,647
$1,360
Dividend Coverage Ratio
1.88x
1.44x
1.79x
1.54x
Other
Debt-to-Adjusted EBITDA at Quarter End (2)
4.43x
4.66x
Capital Investments (3)(4)
$702
$1,000
$1,219
$1,955
(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)
Debt-to-Adjusted EBITDA ratio does not
represent leverage ratios measured for WMB credit agreement
compliance or leverage ratios as calculated by the major credit
ratings agencies. Debt is net of cash on hand, and Adjusted EBITDA
reflects the sum of the last four quarters.
(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.
(4)
YTD 2019 excludes $727 million (net of
cash acquired) for the purchase of the remaining 38% of UEO as this
amount was provided for at the close of the new Northeast JV by our
JV partners, CPPIB, in June 2019.
GAAP Measures
- Second-quarter 2019 Net Income benefited from increased service
revenues in the Atlantic-Gulf segment primarily from Transco
expansion projects and in the Northeast G&P segment driven by
growth in gathering volumes, partially offset by a decline in the
West segment results due to lower commodity margins and the absence
of the former Four Corners area business sold in fourth-quarter
2018. The current year benefited from a $122 million gain on the
sale of our 50 percent interest in Jackalope, partially offset by
the absence of a $62 million gain in the prior year associated with
the deconsolidation of that Jackalope interest. Asset impairments
in the current year were substantially offset by similar levels of
impairments in the prior year. Second-quarter 2019 also includes
$43 million of estimated employee severance and related costs. The
estimated severance costs are primarily associated with a voluntary
separation program announced in anticipation of our pending
organizational realignment and considering our ongoing evaluation
of cost structure. The current year also reflects higher interest
expense associated with financing obligations for leased pipeline
capacity and higher provision for income taxes driven by higher
pre-tax income. Net Income also reflects less income attributable
to noncontrolling interests driven by the WPZ merger in the
third-quarter 2018.
- Year-to-date 2019 Net Income benefited from increased service
revenues in the Atlantic-Gulf segment primarily from Transco
expansion projects and in the Northeast G&P segment driven by
growth in volumes, partially offset by a decline in West segment
results due to lower commodity margins and the absence of the
former Four Corners area business. Other drivers of the improvement
are similar to those described for the second-quarter results,
partially offset by a $74 million first-quarter 2019 impairment of
an equity-method investment.
- The increase in Cash Flow From Operations for second-quarter
and year-to-date 2019 periods was largely driven by the increased
service revenues in the Atlantic-Gulf and Northeast G&P
segments, the collection of Transco's filed rates subject to
refund, and the receipt of an income tax refund, partially offset
by the decline in West segment results.
Non-GAAP Measures
- The increase in Adjusted EBITDA for second-quarter 2019 and
year-to-date 2019 largely reflects the previously mentioned
increased service revenues in the Atlantic-Gulf and Northeast
G&P segments, partially offset by the decline in West segment
results.
- Adjusted Income for both the quarter and year-to-date periods
also improved, driven by the higher Adjusted EBITDA and less income
attributable to noncontrolling interests, partially offset by
higher interest expense and provision for income taxes.
- Second-quarter and year-to-date 2019 DCF are higher, reflecting
the increased Adjusted EBITDA, an income tax refund received in
2019, and lower maintenance capital, partially offset by higher net
interest expense.
Business Segment Results & Form 10-Q
Williams' operations are comprised of the following reportable
segments: Atlantic-Gulf, West, Northeast G&P and Other. For
additional information, please see the company's second-quarter
2019, Form 10-Q, which Williams expects to file this week, with the
Securities and Exchange Commission (SEC). Once filed, the document
will be on the SEC and Williams websites.
Quarter-To-Date
Year-To-Date
Amounts in millions
Modified EBITDA
Adjusted EBITDA
Modified EBITDA
Adjusted EBITDA
2Q 2019
2Q 2018
Change
2Q 2019
2Q 2018
Change
2019
2018
Change
2019
2018
Change
Atlantic-Gulf
$524
$475
$49
$559
$456
$103
$1,084
$926
$158
$1,119
$922
$197
West
278
389
(111
)
356
389
(33
)
610
802
(192
)
702
795
(93
)
Northeast G&P
303
255
48
319
255
64
602
505
97
621
505
116
Other
7
(61
)
68
7
10
(3
)
3
(55
)
58
15
23
(8
)
Totals
$1,112
$1,058
$54
$1,241
$1,110
$131
$2,299
$2,178
$121
$2,457
$2,245
$212
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.
Atlantic-Gulf
- Improvement in second-quarter and year-to-date 2019 Modified
and Adjusted EBITDA is driven by Transco expansion projects,
including Atlantic Sunrise (in service October 2018) and Gulf
Connector (in service early January 2019).
- Unfavorable impact from a reduced allowance for equity funds
used during construction due to lower levels of construction
activity.
- Modified EBITDA was further impacted by the absence of a net
favorable regulatory adjustment resulting from Tax Reform in the
prior year, along with current-year charges for estimated employee
severance and related costs and the reversal of expenditures
capitalized in prior years, all of which are excluded from Adjusted
EBITDA.
West
- Lower second-quarter and year-to-date 2019 Modified and
Adjusted EBITDA reflect lower NGL margins (excluding Four Corners)
driven by lower NGL prices.
- Additionally, both second-quarter and year-to-date results
reflect the absence of EBITDA from our former Four Corners area
business.
- Modified EBITDA for both the quarter and year-to-date 2019
periods includes asset impairment charges and estimated employee
severance and related costs that are excluded from Adjusted
EBITDA.
- Completed sale of our 50% interest in Jackalope (an
equity-method investment) for $485 million in second-quarter
2019.
- Placed into service Ft. Lupton III processing plant expansion
of 200 MMcf/d.
Northeast G&P
- Improvement in Modified and Adjusted EBITDA for second-quarter
and year-to-date 2019 driven by increased gathering volumes in the
Susquehanna Supply Hub and in the Utica Shale region and higher
proportional EBITDA from investments in the Marcellus South and
Bradford gas gathering systems. Modified EBITDA also includes
estimated employee severance and related costs that are excluded
from Adjusted EBITDA.
- Gross gathering volumes, including 100% of operated
equity-method investments, reflect a 17% increase for
second-quarter 2019 over second-quarter 2018. Year-to-date, gross
gathering volumes increased 16% over the same reporting period in
2018.
- The consolidation of Utica East Ohio Midstream ("UEO")
following our March 2019 purchase of the remaining 38% ownership
stake in UEO favorably impacted both Modified and Adjusted EBITDA,
driving an $11 million increase for second-quarter 2019 over
second-quarter 2018. Year-to-date results reflect a $13 million
favorable impact over the same reporting period in 2018 due to the
consolidation of UEO.
- Successfully completed the formation of the new Northeast JV
with CPPIB in June 2019, receiving approximately $1.33 billion from
CPPIB for its 35% interest in the venture.
Williams' Second-Quarter 2019 Materials to be Posted Shortly;
Q&A Webcast Scheduled for Tomorrow
Williams' second-quarter 2019 earnings presentation will be
posted at www.williams.com. The
company’s second-quarter 2019 earnings conference call and webcast
with analysts and investors is scheduled for Thursday, Aug. 1, at
9:30 a.m. Eastern Time (8:30 a.m. Central Time). A limited number
of phone lines will be available at (888) 882-4478. International
callers should dial (720) 452-9217. The conference ID is
6602168.
A webcast link to the conference call is available at
www.williams.com. A replay of the
webcast will be available on the website for at least 90 days
following the event.
About Williams
Williams (NYSE: WMB) is a premier provider of large-scale
infrastructure connecting U.S. natural gas and natural gas products
to growing demand for cleaner fuel and feedstocks. Headquartered in
Tulsa, Oklahoma, Williams is an industry-leading, investment grade
C-Corp with operations across the natural gas value chain including
gathering, processing, interstate transportation and storage of
natural gas and natural gas liquids. With major positions in top
U.S. supply basins, Williams owns and operates more than 30,000
miles of pipelines system wide – including Transco, the nation’s
largest volume and fastest growing pipeline - providing natural gas
for clean-power generation, heating and industrial use. Williams’
operations handle approximately 30% of U.S. natural gas.
www.williams.com
The Williams Companies,
Inc.
Consolidated Statement of
Income
(Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2019
2018
2019
2018
(Millions, except per-share
amounts)
Revenues:
Service revenues
$
1,489
$
1,340
$
2,929
$
2,691
Service revenues – commodity
consideration
56
94
120
195
Product sales
496
657
1,046
1,293
Total revenues
2,041
2,091
4,095
4,179
Costs and expenses:
Product costs
483
636
1,008
1,249
Processing commodity expenses
24
26
64
61
Operating and maintenance expenses
387
388
727
745
Depreciation and amortization expenses
424
434
840
865
Selling, general, and administrative
expenses
152
130
280
262
Impairment of certain assets
64
66
76
66
Other (income) expense – net
9
1
41
30
Total costs and expenses
1,543
1,681
3,036
3,278
Operating income (loss)
498
410
1,059
901
Equity earnings (losses)
87
92
167
174
Other investing income (loss) – net
126
68
53
72
Interest incurred
(306
)
(288
)
(612
)
(570
)
Interest capitalized
10
13
20
22
Other income (expense) – net
7
26
18
47
Income (loss) before income taxes
422
321
705
646
Provision (benefit) for income taxes
98
52
167
107
Net income (loss)
324
269
538
539
Less: Net income (loss) attributable to
noncontrolling interests
14
134
33
252
Net income (loss) attributable to The
Williams Companies, Inc.
310
135
505
287
Preferred stock dividends
—
—
1
—
Net income (loss) available to common
stockholders
$
310
$
135
$
504
$
287
Basic earnings (loss) per common
share:
Net income (loss)
$
.26
$
.16
$
.42
$
.35
Weighted-average shares (thousands)
1,212,045
827,868
1,211,769
827,689
Diluted earnings (loss) per common
share:
Net income (loss)
$
.26
$
.16
$
.41
$
.35
Weighted-average shares (thousands)
1,214,065
830,107
1,213,830
830,151
The Williams Companies,
Inc.
Consolidated Balance
Sheet
(Unaudited)
June 30, 2019
December 31, 2018
(Millions, except per-share
amounts)
ASSETS
Current assets:
Cash and cash equivalents
$
806
$
168
Trade accounts and other receivables (net
of allowance of $6 at June 30, 2019 and $9 at December 31,
2018)
879
992
Inventories
134
130
Other current assets and deferred
charges
209
174
Total current assets
2,028
1,464
Investments
6,261
7,821
Property, plant, and equipment
40,868
38,661
Accumulated depreciation and
amortization
(11,737
)
(11,157
)
Property, plant, and equipment – net
29,131
27,504
Intangible assets – net of accumulated
amortization
8,123
7,767
Regulatory assets, deferred charges, and
other
966
746
Total assets
$
46,509
$
45,302
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
$
627
$
662
Accrued liabilities
1,199
1,102
Long-term debt due within one year
1,563
47
Total current liabilities
3,389
1,811
Long-term debt
20,711
22,367
Deferred income tax liabilities
1,567
1,524
Regulatory liabilities, deferred income,
and other
3,761
3,603
Contingent liabilities
Equity:
Stockholders’ equity:
Preferred stock
35
35
Common stock ($1 par value; 1,470 million
shares authorized at June 30, 2019 and December 31, 2018; 1,246
million shares issued at June 30, 2019 and 1,245 million shares
issued at December 31, 2018)
1,246
1,245
Capital in excess of par value
24,296
24,693
Retained deficit
(10,423
)
(10,002
)
Accumulated other comprehensive income
(loss)
(265
)
(270
)
Treasury stock, at cost (35 million shares
of common stock)
(1,041
)
(1,041
)
Total stockholders’ equity
13,848
14,660
Noncontrolling interests in consolidated
subsidiaries
3,233
1,337
Total equity
17,081
15,997
Total liabilities and equity
$
46,509
$
45,302
The Williams Companies,
Inc.
Consolidated Statement of Cash
Flows
(Unaudited)
Six Months Ended June
30,
2019
2018
(Millions)
OPERATING ACTIVITIES:
Net income (loss)
$
538
$
539
Adjustments to reconcile to net cash
provided (used) by operating activities:
Depreciation and amortization
840
865
Provision (benefit) for deferred income
taxes
182
142
Equity (earnings) losses
(167
)
(174
)
Distributions from unconsolidated
affiliates
327
316
Net (gain) loss on disposition of
equity-method investments
(122
)
—
Impairment of equity-method
investments
72
—
(Gain) loss on deconsolidation of
businesses
2
(62
)
Impairment of certain assets
76
66
Amortization of stock-based awards
30
30
Cash provided (used) by changes in current
assets and liabilities:
Accounts and notes receivable
149
121
Inventories
4
(33
)
Other current assets and deferred
charges
(16
)
(63
)
Accounts payable
(98
)
(70
)
Accrued liabilities
70
(7
)
Other, including changes in noncurrent
assets and liabilities
(43
)
(85
)
Net cash provided (used) by operating
activities
1,844
1,585
FINANCING ACTIVITIES:
Proceeds from (payments of) commercial
paper – net
(4
)
—
Proceeds from long-term debt
720
2,179
Payments of long-term debt
(868
)
(1,761
)
Proceeds from issuance of common stock
6
11
Proceeds from sale of partial interest in
consolidated subsidiary
1,330
—
Common dividends paid
(921
)
(563
)
Dividends and distributions paid to
noncontrolling interests
(68
)
(356
)
Contributions from noncontrolling
interests
32
11
Payments for debt issuance costs
—
(18
)
Other – net
(9
)
(43
)
Net cash provided (used) by financing
activities
218
(540
)
INVESTING ACTIVITIES:
Property, plant, and equipment:
Capital expenditures (1)
(919
)
(1,890
)
Dispositions – net
(15
)
3
Contributions in aid of construction
18
339
Purchases of businesses, net of cash
acquired
(727
)
—
Proceeds from dispositions of
equity-method investments
485
—
Purchases of and contributions to
equity-method investments
(242
)
(91
)
Other – net
(24
)
(30
)
Net cash provided (used) by investing
activities
(1,424
)
(1,669
)
Increase (decrease) in cash and cash
equivalents
638
(624
)
Cash and cash equivalents at beginning of
year
168
899
Cash and cash equivalents at end of
period
$
806
$
275
_____________
(1) Increases to property, plant, and
equipment
$
(977
)
$
(1,864
)
Changes in related accounts payable and
accrued liabilities
58
(26
)
Capital expenditures
$
(919
)
$
(1,890
)
Atlantic-Gulf
(UNAUDITED)
2018
2019
(Dollars in millions)
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
1st Qtr
2nd Qtr
Year
Revenues:
Service revenues:
Nonregulated gathering & processing
fee-based revenue
$
138
$
128
$
138
$
137
$
541
$
128
$
119
$
247
Regulated transportation revenue
413
406
411
508
1,738
517
514
1,031
Other fee revenues
32
34
34
34
134
34
40
74
Tracked service revenue
26
22
24
24
96
30
25
55
Nonregulated commodity consideration
15
12
18
14
59
13
13
26
Product sales:
NGL sales from gas processing
15
10
16
15
56
12
12
24
Marketing sales
45
57
67
53
222
40
32
72
Other sales
1
1
1
—
3
2
1
3
Tracked product sales
32
37
47
38
154
28
23
51
Total revenues
717
707
756
823
3,003
804
779
1,583
Segment costs and expenses:
NGL cost of goods sold
15
12
19
14
60
13
14
27
Marketing cost of goods sold
44
56
67
53
220
41
28
69
Other cost of goods sold
—
—
—
—
—
—
2
2
Tracked cost of goods sold
33
38
48
39
158
28
25
53
Processing commodity expenses
5
2
3
6
16
5
5
10
Operating and administrative costs
177
181
181
197
736
168
198
366
Tracked operating and administrative
costs
26
22
24
23
95
30
25
55
Other segment costs and expenses
(2
)
(15
)
(29
)
14
(32
)
1
2
3
Gain on sale of certain assets
—
—
—
(81
)
(81
)
—
—
—
Regulatory charges resulting from Tax
Reform
11
(20
)
—
—
(9
)
—
—
—
Total segment costs and expenses
309
276
313
265
1,163
286
299
585
Proportional Modified EBITDA of
equity-method investments
43
44
49
47
183
42
44
86
Modified EBITDA
451
475
492
605
2,023
560
524
1,084
Adjustments
15
(19
)
(12
)
(76
)
(92
)
—
35
35
Adjusted EBITDA
$
466
$
456
$
480
$
529
$
1,931
$
560
$
559
$
1,119
NGL Margin
$
10
$
8
$
12
$
9
$
39
$
7
$
6
$
13
Statistics for Operated Assets
Gathering, Processing and Crude Oil
Transportation
Gathering volumes (Bcf per day) -
Consolidated (1)
0.29
0.23
0.26
0.24
0.26
0.25
0.25
0.25
Gathering volumes (Bcf per day) -
Non-consolidated (2)
0.24
0.25
0.25
0.31
0.26
0.35
0.38
0.37
Plant inlet natural gas volumes (Bcf per
day) - Consolidated (1)
0.54
0.43
0.51
0.53
0.50
0.53
0.55
0.54
Plant inlet natural gas volumes (Bcf per
day) - Non-consolidated (2)
0.24
0.25
0.25
0.32
0.27
0.35
0.39
0.37
Crude transportation volumes (Mbbls/d)
142
132
147
140
140
146
136
141
Consolidated (1)
Ethane margin ($/gallon)
$
.03
$
.16
$
.24
$
.14
$
.14
$
.10
$
.02
$
.06
Non-ethane margin ($/gallon)
$
.66
$
.74
$
.76
$
.58
$
.68
$
.48
$
.28
$
.36
NGL margin ($/gallon)
$
.40
$
.48
$
.51
$
.36
$
.43
$
.26
$
.17
$
.21
Ethane equity sales (Mbbls/d)
2.82
1.91
3.05
2.98
2.69
4.16
4.11
4.13
Non-ethane equity sales (Mbbls/d)
3.87
2.35
3.14
3.21
3.14
3.28
5.34
4.32
NGL equity sales (Mbbls/d)
6.69
4.26
6.19
6.19
5.83
7.44
9.45
8.45
Ethane production (Mbbls/d)
12
12
15
16
14
17
14
15
Non-ethane production (Mbbls/d)
19
17
18
19
18
19
19
19
NGL production (Mbbls/d)
31
29
33
35
32
36
33
34
Non-consolidated (2)
NGL equity sales (Mbbls/d)
3
5
4
5
4
7
8
8
NGL production (Mbbls/d)
18
20
20
23
20
24
27
25
Transcontinental Gas Pipe Line
Throughput (Tbtu)
1,099.9
965.5
1,092.3
1,150.9
4,308.5
1,183.9
1,109.4
2,293.3
Avg. daily transportation volumes
(Tbtu)
12.2
10.6
11.9
12.5
11.8
13.2
12.2
12.7
Avg. daily firm reserved capacity
(Tbtu)
15.4
15.0
15.0
16.4
15.5
17.1
17.0
17.1
(1) Excludes volumes associated with
equity-method investments that are not consolidated in our
results.
(2) Includes 100% of the volumes
associated with operated equity-method investments.
West
(UNAUDITED)
2018
2019
(Dollars in millions)
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
1st Qtr
2nd Qtr
Year
Revenues:
Service revenues:
Nonregulated gathering & processing
fee-based revenue
$
386
$
398
$
387
$
335
$
1,506
$
319
$
331
$
650
Regulated transportation revenue
109
104
106
110
429
110
104
214
Other fee revenues
36
32
40
41
149
44
42
86
Nonregulated commodity consideration
82
78
97
64
321
46
40
86
Tracked service revenues
—
1
—
—
1
—
1
1
Product sales:
NGL sales from gas processing
85
76
90
71
322
48
41
89
Marketing sales
419
465
615
571
2,070
426
389
815
Other sales
10
9
16
3
38
1
1
2
Tracked product sales
16
10
11
(19
)
18
4
3
7
Total revenues
1,143
1,173
1,362
1,176
4,854
998
952
1,950
Segment costs and expenses:
NGL cost of goods sold
85
81
101
66
333
49
41
90
Marketing cost of goods sold
418
458
605
587
2,068
421
389
810
Other cost of goods sold
7
8
12
2
29
2
3
5
Tracked cost of goods sold
16
10
12
(20
)
18
3
4
7
Processing commodity expenses
30
20
26
40
116
31
19
50
Operating and administrative costs
193
215
200
166
774
166
180
346
Tracked operating and administrative
costs
—
1
—
—
1
—
1
1
Other segment costs and expenses
6
10
19
15
50
6
1
7
Impairment of certain assets
—
—
—
1,849
1,849
12
64
76
Gain on sale of certain assets
—
—
—
(591
)
(591
)
2
—
2
Regulatory charges resulting from Tax
Reform
(7
)
—
—
—
(7
)
—
—
—
Total segment costs and expenses
748
803
975
2,114
4,640
692
702
1,394
Proportional Modified EBITDA of
equity-method investments
18
19
25
32
94
26
28
54
Modified EBITDA
413
389
412
(906
)
308
332
278
610
Adjustments
(7
)
—
12
1,264
1,269
14
78
92
Adjusted EBITDA
$
406
$
389
$
424
$
358
$
1,577
$
346
$
356
$
702
NGL margin
$
52
$
53
$
60
$
29
$
194
$
14
$
21
$
35
Statistics for Operated Assets
Gathering and Processing
Gathering volumes (Bcf per day) -
Consolidated (1)
4.58
4.60
4.48
3.44
4.27
3.42
3.53
3.48
Gathering volumes (Bcf per day) -
Non-consolidated (2)
—
—
0.15
0.16
0.08
0.17
0.15
0.16
Plant inlet natural gas volumes (Bcf per
day) - Consolidated (1)
2.16
2.12
2.11
1.65
2.01
1.41
1.52
1.46
Plant inlet natural gas volumes (Bcf per
day) - Non-consolidated (2)
—
—
0.14
0.17
0.08
0.17
0.14
0.16
Ethane equity sales (Mbbls/d)
19.01
10.23
12.19
16.40
14.44
14.63
14.59
14.61
Non-ethane equity sales (Mbbls/d)
19.83
18.80
19.48
14.40
18.12
12.59
13.54
13.07
NGL equity sales (Mbbls/d)
38.84
29.03
31.67
30.80
32.56
27.22
28.13
27.68
Ethane margin ($/gallon)
$
.01
$
.07
$
.18
$
.02
$
.06
$
(.03
)
$
(.03
)
$
(.03
)
Non-ethane margin ($/gallon)
$
.69
$
.71
$
.69
$
.49
$
.65
$
.34
$
.42
$
.38
NGL margin ($/gallon)
$
.35
$
.48
$
.49
$
.24
$
.39
$
.14
$
.19
$
.16
Ethane production (Mbbls/d)
31
26
28
29
28
29
22
26
Non-ethane production (Mbbls/d) -
Consolidated (1)
62
61
59
41
55
33
37
35
Non-ethane production (Mbbls/d) -
Jackalope equity-method investment - 100%
—
—
5
5
3
6
1
4
NGL production (Mbbls/d)
93
87
92
75
86
68
60
65
NGL and Crude Transportation volumes
(Mbbls) (3)
21,263
21,334
22,105
23,049
87,751
22,848
24,465
47,313
Northwest Pipeline LLC
Throughput (Tbtu)
226.1
188.1
193.5
212.3
820.0
243.5
184.6
428.1
Avg. daily transportation volumes
(Tbtu)
2.5
2.1
2.1
2.3
2.2
2.7
2.0
2.4
Avg. daily firm reserved capacity
(Tbtu)
3.1
3.1
3.1
3.1
3.1
3.1
3.0
3.0
(1) Excludes volumes associated
with equity-method investments that are not consolidated in our
results.
(2) Includes 100% of the volumes
associated with operated equity-method investments, including the
Jackalope Gas Gathering System and Rocky Mountain Midstream.
(3) Includes 100% of the volumes
associated with operated equity-method investments, including the
Overland Pass Pipeline Company and Rocky Mountain Midstream.
Northeast G&P
(UNAUDITED)
2018
2019
(Dollars in millions)
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
1st Qtr
2nd Qtr
Year
Revenues:
Service revenues:
Nonregulated gathering and processing
fee-based revenue
$
189
$
196
$
211
$
226
$
822
$
230
$
267
$
497
Other fee revenues
39
36
36
43
154
46
63
109
Nonregulated commodity consideration
4
4
6
6
20
5
3
8
Product sales:
NGL sales from gas processing
4
5
6
5
20
5
3
8
Marketing sales
89
65
57
35
246
37
28
65
Tracked product sales
5
5
6
5
21
5
6
11
Total revenues
330
311
322
320
1,283
328
370
698
Segment costs and expenses:
NGL cost of goods sold
4
5
6
5
20
5
3
8
Marketing cost of goods sold
90
65
57
36
248
37
29
66
Processing commodity expenses
2
2
3
2
9
3
2
5
Operating and administrative costs
85
91
96
108
380
97
130
227
Other segment costs and expenses
2
1
4
5
12
4
—
4
Tracked cost of goods sold
5
7
6
3
21
5
6
11
Total segment costs and expenses
188
171
172
159
690
151
170
321
Proportional Modified EBITDA of
equity-method investments
108
115
131
139
493
122
103
225
Modified EBITDA
250
255
281
300
1,086
299
303
602
Adjustments
—
—
—
4
4
3
16
19
Adjusted EBITDA
$
250
$
255
$
281
$
304
$
1,090
$
302
$
319
$
621
NGL margin
$
2
$
2
$
3
$
4
$
11
$
2
$
1
$
3
Statistics for Operated Assets
Gathering and Processing
Gathering volumes (Bcf per day) -
Consolidated (1)
3.38
3.45
3.67
4.02
3.63
4.05
4.16
4.11
Gathering volumes (Bcf per day) -
Non-consolidated (2)
3.82
3.59
3.73
3.89
3.76
4.27
4.08
4.17
Plant inlet natural gas volumes (Bcf per
day)
0.49
0.55
0.52
0.52
0.52
0.63
1.04
0.83
Ethane equity sales (Mbbls/d)
1.33
3.17
2.74
2.80
2.52
2.73
1.83
2.27
Non-ethane equity sales (Mbbls/d)
0.79
1.09
1.49
1.28
1.16
1.21
1.09
1.15
NGL equity sales (Mbbls/d)
2.12
4.26
4.23
4.08
3.68
3.94
2.92
3.42
Ethane production (Mbbls/d)
23
27
26
20
24
22
24
23
Non-ethane production (Mbbls/d)
21
21
23
22
22
22
34
29
NGL production (Mbbls/d)
44
48
49
42
46
44
58
52
(1) Includes gathering volumes
associated with Susquehanna Supply Hub, the Northeast JV, and Utica
Supply Hub, all of which are consolidated.
(2) 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.
Capital Expenditures and Investments
(UNAUDITED)
2018
2019
(Dollars in millions)
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
1st Qtr
2nd Qtr
Year
Capital expenditures:
Northeast G&P
$
114
$
104
$
114
$
139
$
471
$
152
$
177
$
329
Atlantic-Gulf
764
746
549
359
2,418
193
234
427
West
69
74
96
93
332
69
80
149
Other
10
9
10
6
35
8
6
14
Total (1)
$
957
$
933
$
769
$
597
$
3,256
$
422
$
497
$
919
Purchases of investments:
Northeast G&P
$
20
$
70
$
114
$
58
$
262
$
47
$
61
$
108
Atlantic-Gulf
1
—
5
—
6
—
12
12
West
—
—
593
271
864
52
70
122
Total
$
21
$
70
$
712
$
329
$
1,132
$
99
$
143
$
242
Summary:
Northeast G&P
$
134
$
174
$
228
$
197
$
733
$
199
$
238
$
437
Atlantic-Gulf
765
746
554
359
2,424
193
246
439
West
69
74
689
364
1,196
121
150
271
Other
10
9
10
6
35
8
6
14
Total
$
978
$
1,003
$
1,481
$
926
$
4,388
$
521
$
640
$
1,161
Capital investments:
Increases to property, plant, and
equipment
$
934
$
930
$
618
$
539
$
3,021
$
418
$
559
$
977
Purchases of businesses, net of cash
acquired
—
—
—
—
—
727
—
727
Purchases of investments
21
70
712
329
1,132
99
143
242
Total
$
955
$
1,000
$
1,330
$
868
$
4,153
$
1,244
$
702
$
1,946
(1) Increases to property, plant, and
equipment
$
934
$
930
$
618
$
539
$
3,021
$
418
$
559
$
977
Changes in related accounts payable and
accrued liabilities
23
3
151
58
235
4
(62
)
(58
)
Capital expenditures
$
957
$
933
$
769
$
597
$
3,256
$
422
$
497
$
919
Contributions from noncontrolling
interests
$
3
$
8
$
2
$
2
$
15
$
4
$
28
$
32
Contributions in aid of construction
$
190
$
149
$
56
$
16
$
411
$
10
$
8
$
18
Proceeds from sale of businesses, net of
cash divested
$
—
$
—
$
—
$
1,296
$
1,296
$
(2
)
$
—
$
(2
)
Proceeds from sale of partial interest in
consolidated subsidiary
$
—
$
—
$
—
$
—
$
—
$
—
$
1,330
$
1,330
Proceeds from disposition of equity-method
investments
$
—
$
—
$
—
$
—
$
—
$
—
$
485
$
485
Non-GAAP Measures
This news release and accompanying materials may include certain
financial measures – Adjusted EBITDA, adjusted income (“earnings”),
adjusted earnings per share, distributable cash flow and dividend
coverage ratio – that are non-GAAP financial measures as defined
under the rules of the SEC.
Our segment performance measure, Modified EBITDA, is defined as
net income (loss) before income (loss) from discontinued
operations, income tax expense, net interest expense, equity
earnings from equity-method investments, other net investing
income, impairments of equity investments and goodwill,
depreciation and amortization expense, and accretion expense
associated with asset retirement obligations for nonregulated
operations. We also add our proportional ownership share (based on
ownership interest) of Modified EBITDA of equity-method
investments.
Adjusted EBITDA further excludes items of income or loss that we
characterize as unrepresentative of our ongoing operations.
Management believes this measure provides investors meaningful
insight into results from ongoing operations.
Distributable cash flow is defined as Adjusted EBITDA less
maintenance capital expenditures, cash portion of net interest
expense, income attributable to or dividends/ distributions paid to
noncontrolling interests and cash income taxes, and certain other
adjustments that management believes affects the comparability of
results. Adjustments for maintenance capital expenditures and cash
portion of interest expense include our proportionate share of
these items of our equity-method investments. We also calculate the
ratio of distributable cash flow to the total cash dividends paid
(dividend coverage ratio). This measure reflects Williams’
distributable cash flow relative to its actual cash dividends
paid.
This news release is accompanied by a reconciliation of these
non-GAAP financial measures to their nearest GAAP financial
measures. Management uses these financial measures because they are
accepted financial indicators used by investors to compare company
performance. In addition, management believes that these measures
provide investors an enhanced perspective of the operating
performance of assets and the cash that the business is
generating.
Neither Adjusted EBITDA, adjusted income, nor distributable cash
flow are intended to represent cash flows for the period, nor are
they presented as an alternative to net income or cash flow from
operations. They should not be considered in isolation or as
substitutes for a measure of performance prepared in accordance
with United States generally accepted accounting principles.
Reconciliation of Income (Loss)
Attributable to The Williams Companies, Inc. to Adjusted
Income
(UNAUDITED)
2018
2019
(Dollars in millions, except per-share
amounts)
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
1st Qtr
2nd Qtr
Year
Income (loss) attributable to The
Williams Companies, Inc. available to common stockholders
$
152
$
135
$
129
$
(572
)
$
(156
)
$
194
$
310
$
504
Income (loss) - diluted earnings (loss)
per common share (1)
$
.18
$
.16
$
.13
$
(.47
)
$
(.16
)
$
.16
$
.26
$
.41
Adjustments:
Northeast
G&P
Expenses associated with new venture
$
—
$
—
$
—
$
—
$
—
$
3
$
6
$
9
Settlement charge from pension early
payout program
—
—
—
4
4
—
—
—
Severance and related costs
—
—
—
—
—
—
10
10
Total Northeast G&P adjustments
—
—
—
4
4
3
16
19
Atlantic-Gulf
Constitution Pipeline project development
costs
2
1
1
—
4
—
1
1
Settlement charge from pension early
payout program
—
—
—
7
7
—
—
—
Regulatory adjustments resulting from Tax
Reform
11
(20
)
—
—
(9
)
—
—
—
Benefit of regulatory asset associated
with increase in Transco’s estimated deferred state income tax rate
following WPZ Merger
—
—
(3
)
—
(3
)
—
—
—
Share of regulatory charges resulting from
Tax Reform for equity-method investments
2
—
—
—
2
—
—
—
Reversal of expenditures capitalized in
prior years
—
—
—
—
—
—
15
15
Gain on sale of certain Gulf Coast
pipeline assets
—
—
—
(81
)
(81
)
—
—
—
Gain on asset retirement
—
—
(10
)
(2
)
(12
)
—
—
—
Severance and related costs
—
—
—
—
—
—
19
19
Total Atlantic-Gulf adjustments
15
(19
)
(12
)
(76
)
(92
)
—
35
35
West
Impairment of certain assets
—
—
—
1,849
1,849
12
64
76
Settlement charge from pension early
payout program
—
—
—
6
6
—
—
—
Regulatory adjustments resulting from Tax
Reform
(7
)
—
—
—
(7
)
—
—
—
Charge for regulatory liability associated
with the decrease in Northwest Pipeline’s estimated deferred state
income tax rates following WPZ Merger
—
—
12
—
12
—
—
—
Gain on sale of Four Corners assets
—
—
—
(591
)
(591
)
2
—
2
Severance and related costs
—
—
—
—
—
—
14
14
Total West adjustments
(7
)
—
12
1,264
1,269
14
78
92
Other
Loss on early retirement of debt
7
—
—
—
7
—
—
—
Impairment of certain assets
—
66
—
—
66
—
—
—
Settlement charge from pension early
payout program
—
—
—
5
5
—
—
—
Regulatory adjustments resulting from Tax
Reform
—
1
—
—
1
—
—
—
(Benefit) adjustment of regulatory assets
associated with increase in Transco’s estimated deferred state
income tax rate following WPZ Merger
—
—
(45
)
—
(45
)
12
—
12
WPZ Merger costs
—
4
15
1
20
—
—
—
Gain on sale of certain Gulf Coast
pipeline systems
—
—
—
(20
)
(20
)
—
—
—
Charitable contribution of preferred stock
to Williams Foundation
—
—
35
—
35
—
—
—
Total Other adjustments
7
71
5
(14
)
69
12
—
12
Adjustments included in Modified
EBITDA
15
52
5
1,178
1,250
29
129
158
Adjustments below
Modified EBITDA
Gain on deconsolidation of Jackalope
interest
—
(62
)
—
—
(62
)
—
—
—
Gain on deconsolidation of certain Permian
assets
—
—
—
(141
)
(141
)
2
—
2
Impairment of equity-method
investments
—
—
—
32
32
74
(2
)
72
Gain on sale of equity-method
investments
—
—
—
—
—
—
(122
)
(122
)
Allocation of adjustments to
noncontrolling interests
(5
)
21
—
—
16
—
(1
)
(1
)
(5
)
(41
)
—
(109
)
(155
)
76
(125
)
(49
)
Total adjustments
10
11
5
1,069
1,095
105
4
109
Less tax effect for above items
(3
)
(3
)
(1
)
(267
)
(274
)
(26
)
(1
)
(27
)
Adjustments for tax-related items (2)
—
—
110
—
110
—
—
—
Adjusted income available to common
stockholders
$
159
$
143
$
243
$
230
$
775
$
273
$
313
$
586
Adjusted diluted earnings per common
share (1)
$
.19
$
.17
$
.24
$
.19
$
.79
$
.22
$
.26
$
.48
Weighted-average shares - diluted
(thousands)
830,197
830,107
1,026,504
1,212,822
976,097
1,213,592
1,214,065
1,213,830
(1) 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.
(2) The third quarter of 2018 reflects tax
adjustments driven by the WPZ Merger, primarily a valuation
allowance for foreign tax credits.
Reconciliation of Distributable Cash
Flow (DCF)
(UNAUDITED)
2018
2019
(Dollars in millions, except coverage
ratios)
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
1st Qtr
2nd Qtr
Year
The Williams Companies, Inc.
Reconciliation of GAAP "Net Income (Loss)"
to Non-GAAP "Modified EBITDA", "Adjusted EBITDA" and "Distributable
cash flow"
Net income (loss)
$
270
$
269
$
200
$
(546
)
$
193
$
214
$
324
$
538
Provision (benefit) for income taxes
55
52
190
(159
)
138
69
98
167
Interest expense
273
275
270
294
1,112
296
296
592
Equity (earnings) losses
(82
)
(92
)
(105
)
(117
)
(396
)
(80
)
(87
)
(167
)
Other investing (income) loss - net
(4
)
(68
)
(2
)
(113
)
(187
)
73
(126
)
(53
)
Proportional Modified EBITDA of
equity-method investments
169
178
205
218
770
190
175
365
Depreciation and amortization expenses
431
434
425
435
1,725
416
424
840
Accretion for asset retirement obligations
associated with nonregulated operations
8
10
8
7
33
9
8
17
Modified EBITDA
1,120
1,058
1,191
19
3,388
1,187
1,112
2,299
EBITDA adjustments
15
52
5
1,178
1,250
29
129
158
Adjusted EBITDA
1,135
1,110
1,196
1,197
4,638
1,216
1,241
2,457
Maintenance capital expenditures (1)
(110
)
(160
)
(138
)
(122
)
(530
)
(93
)
(130
)
(223
)
Preferred dividends
—
—
—
(1
)
(1
)
(1
)
—
(1
)
Net interest expense - cash portion
(2)
(276
)
(279
)
(274
)
(299
)
(1,128
)
(304
)
(302
)
(606
)
Cash taxes
(1
)
(10
)
(1
)
1
(11
)
3
85
88
Income attributable to noncontrolling
interests (3)
(25
)
(24
)
(19
)
(28
)
(96
)
Dividend and distributions paid to
noncontrolling interests
(41
)
(27
)
(68
)
Distributable cash flow
$
723
$
637
$
764
$
748
$
2,872
$
780
$
867
$
1,647
Total cash distributed (4)
$
438
$
443
$
412
$
411
$
1,704
$
460
$
461
$
921
Coverage ratios:
Distributable cash flow divided by Total
cash distributed
1.65
1.44
1.85
1.82
1.69
1.70
1.88
1.79
Net income (loss) divided by Total cash
distributed
0.62
0.61
0.49
(1.33
)
0.11
0.47
0.70
0.58
(1) Includes proportionate share of
maintenance capital expenditures of equity-method investments.
(2) Includes proportionate share of
interest expense of equity-method investments.
(3) Excludes allocable share of certain
EBITDA adjustments.
(4) Includes cash dividends paid on common
stock each quarter by WMB, as well as the public unitholders share
of distributions declared by WPZ for the first two quarters of
2018.
Reconciliation of "Net Income (Loss)"
to “Modified EBITDA” and Non-GAAP “Adjusted EBITDA”
(UNAUDITED)
2018
2019
(Dollars in millions)
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
1st Qtr
2nd Qtr
Year
Net income (loss)
$
270
$
269
$
200
$
(546
)
$
193
$
214
$
324
$
538
Provision (benefit) for income taxes
55
52
190
(159
)
138
69
98
167
Interest expense
273
275
270
294
1,112
296
296
592
Equity (earnings) losses
(82
)
(92
)
(105
)
(117
)
(396
)
(80
)
(87
)
(167
)
Other investing (income) loss - net
(4
)
(68
)
(2
)
(113
)
(187
)
73
(126
)
(53
)
Proportional Modified EBITDA of
equity-method investments
169
178
205
218
770
190
175
365
Depreciation and amortization expenses
431
434
425
435
1,725
416
424
840
Accretion expense associated with asset
retirement obligations for nonregulated operations
8
10
8
7
33
9
8
17
Modified EBITDA
$
1,120
$
1,058
$
1,191
$
19
$
3,388
$
1,187
$
1,112
$
2,299
Northeast G&P
$
250
$
255
$
281
$
300
$
1,086
$
299
$
303
$
602
Atlantic-Gulf
451
475
492
605
2,023
560
524
1,084
West
413
389
412
(906
)
308
332
278
610
Other
6
(61
)
6
20
(29
)
(4
)
7
3
Total Modified EBITDA
$
1,120
$
1,058
$
1,191
$
19
$
3,388
$
1,187
$
1,112
$
2,299
Adjustments included in Modified EBITDA
(1):
Northeast G&P
$
—
$
—
$
—
$
4
$
4
$
3
$
16
$
19
Atlantic-Gulf
15
(19
)
(12
)
(76
)
(92
)
—
35
35
West
(7
)
—
12
1,264
1,269
14
78
92
Other
7
71
5
(14
)
69
12
—
12
Total Adjustments included in Modified
EBITDA
$
15
$
52
$
5
$
1,178
$
1,250
$
29
$
129
$
158
Adjusted EBITDA:
Northeast G&P
$
250
$
255
$
281
$
304
$
1,090
$
302
$
319
$
621
Atlantic-Gulf
466
456
480
529
1,931
560
559
1,119
West
406
389
424
358
1,577
346
356
702
Other
13
10
11
6
40
8
7
15
Total Adjusted EBITDA
$
1,135
$
1,110
$
1,196
$
1,197
$
4,638
$
1,216
$
1,241
$
2,457
(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.
Reconciliation of GAAP "Net Income
(Loss)" to Non-GAAP "Modified EBITDA", "Adjusted EBITDA" and
"Distributable Cash Flow"
2019 Guidance
(Dollars in millions, except coverage
ratio)
Low
Mid
High
Net income (loss)
$
1,100
$
1,250
$
1,400
Provision (benefit) for income taxes
425
Interest expense
1,200
Equity (earnings) losses
(410
)
Impairment of equity-method
investments
74
Estimated 2Q 2019 gain on sale of
equity-method investment (Jackalope)
(120
)
Proportional Modified EBITDA of
equity-method investments
780
Depreciation and amortization expenses and
accretion for asset retirement obligations associated with
nonregulated operations
1,760
Other
2
Modified EBITDA
$
4,811
$
4,961
$
5,111
EBITDA Adjustments (1)
39
Adjusted EBITDA
$
4,850
$
5,000
$
5,150
Net interest expense - cash portion
(2)
(1,210
)
Maintenance capital expenditures (2)
(625
)
(575
)
(525
)
Cash taxes
75
Dividends and distributions paid to
noncontrolling interests and other
(190
)
Distributable cash flow (DCF)
$
2,900
$
3,100
$
3,300
Dividends paid
(1,850
)
Excess cash available after dividends
$
1,050
$
1,250
$
1,450
Dividend per share
$
1.52
Coverage ratio (Distributable cash flow
/ Dividends paid)
1.57x
1.68x
1.78x
(1) Includes 1Q 2019 adjustments of $29
and anticipated future adjustments of $10.
(2) Includes proportionate share of equity
investments.
Reconciliation of Income (Loss)
Attributable to The Williams Companies, Inc. to Adjusted
Income
2019 Guidance
(Dollars in millions, except per-share
amounts)
Low
Mid
High
Net income (loss)
$
1,100
$
1,250
$
1,400
Less: Net income (loss) attributable to
noncontrolling interests
90
90
90
Less: Preferred stock dividends
3
3
3
Net income (loss) attributable to The
Williams Companies, Inc. available to common stockholders
1,007
1,157
1,307
Adjustments:
Adjustments included in Modified EBITDA
(1)
39
Adjustments below Modified EBITDA (2)
(44
)
Total adjustments
(5
)
Less tax effect for above items (3)
4
Adjusted income available to common
stockholders
$
1,006
$
1,156
$
1,306
Adjusted diluted earnings per common
share
$
0.83
$
0.95
$
1.07
Weighted-average shares - diluted
(millions)
1,217
1,217
1,217
(1) Includes 1Q 2019 adjustments of $29
and anticipated future adjustments of $10.
(2) Includes 1Q 2019 adjustments of $76
and anticipated gain on sale of Jackalope equity investment of
~($120).
(3) Includes 1Q 2019 tax effect for
adjustments of ($26) and taxes on anticipated gain on sale of
Jackalope equity investment of ~$30.
Forward-Looking Statements
The reports, filings, and other public announcements of The
Williams Companies, Inc. (Williams) may contain or incorporate by
reference statements that do not directly or exclusively relate to
historical facts. Such statements are “forward-looking statements”
within the meaning of Section 27A of the Securities Act of 1933, as
amended (Securities Act), and Section 21E of the Securities
Exchange Act of 1934, as amended (Exchange Act). These
forward-looking statements relate to anticipated financial
performance, management’s plans and objectives for future
operations, business prospects, outcome of regulatory proceedings,
market conditions, and other matters. We make these forward-looking
statements in reliance on the safe harbor protections provided
under the Private Securities Litigation Reform Act of 1995.
All statements, other than statements of historical facts,
included herein that address activities, events or developments
that we expect, believe or anticipate will exist or may occur in
the future, are forward-looking statements. Forward-looking
statements can be identified by various forms of words such as
“anticipates,” “believes,” “seeks,” “could,” “may,” “should,”
“continues,” “estimates,” “expects,” “forecasts,” “intends,”
“might,” “goals,” “objectives,” “targets,” “planned,” “potential,”
“projects,” “scheduled,” “will,” “assumes,” “guidance,” “outlook,”
“in-service date” or other similar expressions. These
forward-looking statements are based on management’s beliefs and
assumptions and on information currently available to management
and include, among others, statements regarding:
- 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 and natural gas liquids prices, supply, and
demand;
- Demand for our services.
Forward-looking statements are based on numerous assumptions,
uncertainties and risks that could cause future events or results
to be materially different from those stated or implied herein.
Many of the factors that will determine these results are beyond
our ability to control or predict. Specific factors that could
cause actual results to differ from results contemplated by the
forward-looking statements include, among others, the
following:
- Whether we are able to pay current and expected levels of
dividends;
- Whether we will be able to effectively execute our financing
plan;
- Availability of supplies, market demand, and volatility of
prices;
- 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 investment
opportunities;
- 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;
- Development and rate of adoption of alternative energy
sources;
- The impact of operational and developmental hazards and
unforeseen interruptions;
- 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 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;
- 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, cybersecurity incidents, and related
disruptions;
- Additional risks described in our filings with the Securities
and Exchange Commission (SEC).
Given the uncertainties and risk factors that could cause our
actual results to differ materially from those contained in any
forward-looking statement, we caution investors not to unduly rely
on our forward-looking statements. We disclaim any obligations to
and do not intend to update the above list or announce publicly the
result of any revisions to any of the forward-looking statements to
reflect future events or developments.
In addition to causing our actual results to differ, the factors
listed above and referred to below may cause our intentions to
change from those statements of intention set forth herein. Such
changes in our intentions may also cause our results to differ. We
may change our intentions, at any time and without notice, based
upon changes in such factors, our assumptions, or otherwise.
Because forward-looking statements involve risks and
uncertainties, we caution that there are important factors, in
addition to those listed above, that may cause actual results to
differ materially from those contained in the forward-looking
statements. For a detailed discussion of those factors, see Part I,
Item 1A. Risk Factors in our Annual Report on Form 10-K filed with
the SEC on February 21, 2019.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190731005873/en/
MEDIA CONTACT: Keith Isbell (918) 573-7308
INVESTOR CONTACTS: John Porter (918) 573-0797
Grace Scott (918) 573-1092
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