Williams (NYSE: WMB) today announced its unaudited financial
results for the three and six months ended June 30, 2020.
Strong 2Q 2020 results demonstrate stability and
predictability of business; on track to meet 2020 guidance
expectations
- Net income of $303 million, resulting in net income of $0.25
per diluted share (EPS)
- Adjusted EBITDA of $1.24 billion for the quarter and $2.502
billion year to date, up slightly for the year
- Excluding non-cash deferred revenue step down, 2Q 20 Adjusted
EBITDA is up $31 million or 2.5%
- Cash flow from operations of $1.143 billion, up 7% over 2Q
19
- Debt-to-Adjusted EBITDA improved by 0.12x to 4.31x since 2Q
19
- Continuing to generate excess cash flow - DCF exceeds dividends
and growth capital
Natural gas focused strategy, built for long haul, yields
outstanding performance; natural gas market fundamentals and demand
remain solid
- Transmission & Gulf of Mexico segment up 4% in Modified
EBITDA and 2% in Adjusted EBITDA year-to-date 2020 vs. year-to-date
2019
- Stable and reliable customer base of utilities, power plants,
LNG facilities and industrial plants supports firm-committed
capacity on demand-pull regulated pipelines
- Northeast G&P segment up 23% in Modified EBITDA and 18% in
Adjusted EBITDA year-to-date 2020 vs. year-to-date 2019; gathering
volumes up 7% over 2Q 19
- Diversified gas gathering business linked directly to wellheads
in premier basins provides advantaged position
- Strong business performance driven by steady natural gas
demand
CEO Perspective
Alan Armstrong, president and chief executive officer, made the
following comments:
"We’ve built a business that is steady and predictable, and this
quarter was a chance to show just how durable this business can be
against a number of headwinds. Even with the significant and
unexpected disruptions caused by geopolitical oil disputes, the
COVID-19 pandemic and a tropical storm, our earnings remained
consistent with our projections, largely due to the stability of
our natural gas-focused business, our minimal exposure to commodity
price volatility, and our proactive cost reductions instituted last
year. We are pleased with our business performance to date and are
confident in our ability to achieve 2020 guidance expectations and
continued free cash flow.
“Williams’ employees continue to do their part to ensure the
safe and reliable delivery of natural gas to America’s cities and
communities, ensuring energy stability in these uncertain times.
These efforts are frequently overlooked by the general public as we
often take for granted the highly reliable and safe energy
infrastructure that enables our everyday lives and jobs. I remain
extremely proud of our employees for their steadfast efforts to
keep our operations running smoothly while also going the extra
mile to keep themselves and their coworkers healthy.
“Overall demand for natural gas has proved resilient, and we
continue to successfully execute on a number of critical expansion
projects along our Transco pipeline, in the Northeast G&P and
in the Deepwater Gulf of Mexico. We remain bullish on natural gas
demand growth because we recognize the critical role natural gas
plays in a clean energy economy. Thanks to this clean energy
resource, the U.S. continues to see significant reductions in CO2
emissions, lower consumer utility bills and enhanced opportunities
for investment in renewable energy. Given Williams’ unrivaled
portfolio of assets, there is perhaps no other natural gas company
better positioned to meet the dual challenge of serving increasing
U.S. demand for energy while advancing the transition to a
low-carbon future with immediate, practical solutions that are
available now."
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.
2020
2019
2020
2019
GAAP Measures
Net Income (Loss)
$303
$310
($215
)
$504
Net Income (Loss) Per Share
$0.25
$0.26
($0.18
)
$0.41
Cash Flow From Operations
$1,143
$1,069
$1,930
$1,844
Non-GAAP Measures (1)
Adjusted EBITDA
$1,240
$1,241
$2,502
$2,457
Adjusted Income
$305
$313
$618
$586
Adjusted Income Per Share
$0.25
$0.26
$0.51
$0.48
Distributable Cash Flow
$797
$867
$1,658
$1,647
Dividend Coverage Ratio
1.64
x
1.88
x
1.71
x
1.79
x
Other
Debt-to-Adjusted EBITDA at Quarter End
4.31
x
4.43
x
Capital Investments (2) (3)
$363
$702
$647
$1,219
(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) YTD 2019 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 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.
GAAP Measures
- Second-quarter 2020 net income decreased slightly compared to
the prior year. Service revenues decreased slightly as increases
from Transco’s expansion projects and recent rate case and growth
in our Northeast JV, were offset by decreases in non-cash deferred
revenue at Gulfstar One and the Barnett, as well as the termination
of Barnett minimum volume commitments (MVCs) in 2019.
- Second-quarter 2020 net income benefited from significantly
lower operating and administrative costs, including reduced
employee costs from cost-savings initiatives and the absence of
prior year severance charges, as well as higher equity earnings
from our Northeast G&P investments.
- Last year’s second-quarter net income also included a $122
million gain on the sale of our Jackalope investment, and
impairments totaling $64 million.
- Similar to the second quarter comparison, year-to-date service
revenues also declined slightly as increases from Transco’s
expansion projects and recent rate case and growth in our Northeast
JV, were offset by decreases in non-cash deferred revenue
recognition at Gulfstar One and the Barnett, as well as the
termination of the Barnett MVCs in 2019. Commodity margins also
declined, driven by lower NGL prices and volumes.
- Also similar to the second quarter comparison, year-to-date
2020 net income benefited from significantly lower operating and
administrative costs, including reduced employee costs from
cost-savings initiatives and the absence of prior year severance
charges, as well as higher equity earnings from our Northeast
G&P investments.
- The year-to-date change was also significantly impacted by
first-quarter 2020 impairments of equity-method investments and
goodwill, which resulted in a total $1.2 billion pre-tax charge, of
which $65 million was attributable to noncontrolling interests. The
2019 year-to-date period included impairments of assets and
equity-method investments totaling $148 million and a $122 million
gain on the sale of Jackalope.
- The year-to-date provision for income taxes changed favorably
by $254 million primarily due to the change in pre-tax
earnings.
Non-GAAP Measures
- Adjusted EBITDA for the quarter was consistent with the prior
year as increased service revenues from Transco’s expansion
projects and rate case, growth in our Northeast JV, lower operating
costs and higher contributions from our Northeast G&P
investments were offset by decreases in non-cash deferred revenue
recognition at Gulfstar One and in the Barnett, along with the
absence of Barnett MVCs.
- Year-to-date Adjusted EBITDA improved driven by lower operating
and administrative costs and higher contributions from our
Northeast G&P investments, partially offset by lower commodity
margins and lower service revenues.
- Changes in Adjusted Income for the quarter and year-to-date
periods were driven by the changes in Adjusted EBITDA, as well as
higher provisions for income taxes.
- Although second-quarter 2020 Adjusted EBITDA was consistent
with the prior year, DCF is lower due primarily to the absence of a
prior year income tax refund. Additionally, lower maintenance
capital more than offset increased distributions to noncontrolling
interests. Year-to-date DCF is higher, reflecting increased
Adjusted EBITDA and lower maintenance capital, partially offset by
the absence of a prior year income tax refund and increased
distributions to noncontrolling interests.
Business Segment Results & Form 10-Q
Williams' operations are comprised of the following reportable
segments: Transmission & Gulf of Mexico, Northeast G&P,
West and Other. For more information, see the company's
second-quarter 2020 Form 10-Q.
Quarter-To-Date
Year-To-Date
Amounts in millions
Modified EBITDA
Adjusted EBITDA
Modified EBITDA
Adjusted EBITDA
2Q 2020
2Q 2019
Change
2Q 2020
2Q 2019
Change
2020
2019
Change
2020
2019
Change
Transmission & Gulf of Mexico
$615
$590
$25
$617
$628
($11
)
$1,277
$1,226
$51
$1,286
$1,264
$22
Northeast G&P
370
303
67
363
319
44
739
602
137
733
621
112
West
253
212
41
252
287
(35
)
468
468
—
468
557
(89
)
Other
8
7
1
8
7
1
15
3
12
15
15
—
Totals
$1,246
$1,112
$134
$1,240
$1,241
($1
)
$2,499
$2,299
$200
$2,502
$2,457
$45
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.
Transmission & Gulf of Mexico
- Second-quarter and year-to-date 2020 Modified and Adjusted
EBITDA reflect decreased service revenues from lower deferred
revenue amortization at Gulfstar One, and various temporary
production shut-ins across the Gulf of Mexico related to oil
prices, maintenance and Tropical Storm Cristobal, partially offset
by Transco expansion projects placed in service and the benefit of
Transco’s settled general rate case.
- The comparative periods also benefited from lower operating and
administrative costs and favorable changes in the amortization of
regulatory assets and liabilities driven by the settlement terms of
Transco’s general rate case.
- Modified EBITDA for the comparative periods benefited from the
absence of 2019 severance charges and the 2019 reversal of
previously capitalized expenses, both of which are excluded from
Adjusted EBITDA.
Northeast G&P
- Second-quarter and year-to-date 2020 Modified and Adjusted
EBITDA reflect increased service revenues due to higher gathering,
processing and liquids handling volumes primarily from our
Northeast JV. The year-to-date revenue comparison also benefited
from the additional ownership in Utica East Ohio Midstream
following the March 2019 acquisition and contribution to our
Northeast JV.
- Second-quarter Modified and Adjusted EBITDA benefited from cost
reduction efforts.
- Both comparative periods also reflect higher contributions from
several equity-method investments including the Marcellus South
system, Bradford system and Laurel Mountain.
- Gross gathering volumes for second-quarter 2020, including 100%
of operated equity-method investments, increased by 7% over the
same period in 2019.
West
- The changes in second-quarter and year-to-date 2020 Modified
and Adjusted EBITDA reflect lower revenue in the Barnett driven by
reduced recognition of non-cash deferred revenue and the
second-quarter 2019 expiration of a contractual MVC period. The
changes also include reduced employee costs from cost-savings
initiatives and lower maintenance expenses.
- Modified EBITDA also benefited from the absence of prior year
impairment and severance charges, which are excluded from Adjusted
EBITDA.
- The quarterly period benefited from increased commodity margins
as lower NGL margins compared to the prior-year period were more
than offset by higher marketing margins driven by second-quarter
2020 NGL prices rebounding from first quarter 2020 lows.
Year-to-date commodity margins were lower, driven by lower NGL
margins reflecting lower prices and volumes.
2020 Financial Guidance
The company continues to expect 2020 Adjusted EBITDA toward the
lower end of its previously stated range of between $4.95 billion
and $5.25 billion. The company now expects 2020 growth capex of $1
billion to $1.2 billion, down from the original range of $1.1
billion to $1.3 billion. Also, the company now expects
Distributable Cash Flow toward the midpoint of the original
guidance range due primarily to lower maintenance capital
expenditures as well as certain tax benefits expected in the second
half of 2020.
Williams' Second-Quarter 2020 Materials to be Posted Shortly;
Q&A Webcast Scheduled for Tomorrow
Williams' second-quarter 2020 earnings presentation will be
posted at www.williams.com. The
company’s second-quarter 2020 earnings conference call and webcast
with analysts and investors is scheduled for Tuesday, Aug. 4, at
9:30 a.m. Eastern Time (8:30 a.m. Central Time). A limited number
of phone lines will be available at (866) 742-6614. International
callers should dial (778) 560-2598. The conference ID is 7669696. 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 committed to being the leader in
providing infrastructure that safely delivers natural gas products
to reliably fuel the clean energy economy. 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 connects the best supplies with the
growing demand for clean energy. Williams owns and operates more
than 30,000 miles of pipelines system wide – including Transco, the
nation’s largest volume and fastest growing pipeline – and handles
approximately 30 percent of the natural gas in the United States
that is used every day for clean-power generation, heating and
industrial use. www.williams.com
The Williams Companies,
Inc.
Consolidated Statement of
Operations
(Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2020
2019
2020
2019
(Millions, except per-share
amounts)
Revenues:
Service revenues
$
1,446
$
1,489
$
2,920
$
2,929
Service revenues – commodity
consideration
25
56
53
120
Product sales
310
496
721
1,046
Total revenues
1,781
2,041
3,694
4,095
Costs and expenses:
Product costs
271
483
667
1,008
Processing commodity expenses
15
24
28
64
Operating and maintenance expenses
320
387
657
727
Depreciation and amortization expenses
430
424
859
840
Selling, general, and administrative
expenses
127
152
240
280
Impairment of certain assets
—
64
—
76
Impairment of goodwill
—
—
187
—
Other (income) expense – net
6
9
13
41
Total costs and expenses
1,169
1,543
2,651
3,036
Operating income (loss)
612
498
1,043
1,059
Equity earnings (losses)
108
87
130
167
Impairment of equity-method
investments
—
2
(938
)
(72
)
Other investing income (loss) – net
1
124
4
125
Interest incurred
(299
)
(306
)
(600
)
(612
)
Interest capitalized
5
10
10
20
Other income (expense) – net
5
7
9
18
Income (loss) before income taxes
432
422
(342
)
705
Provision (benefit) for income taxes
117
98
(87
)
167
Net income (loss)
315
324
(255
)
538
Less: Net income (loss) attributable to
noncontrolling interests
12
14
(41
)
33
Net income (loss) attributable to The
Williams Companies, Inc.
303
310
(214
)
505
Preferred stock dividends
—
—
1
1
Net income (loss) available to common
stockholders
$
303
$
310
$
(215
)
$
504
Basic earnings (loss) per common
share:
Net income (loss)
$
.25
$
.26
$
(.18
)
$
.42
Weighted-average shares (thousands)
1,213,601
1,212,045
1,213,310
1,211,769
Diluted earnings (loss) per common
share:
Net income (loss)
$
.25
$
.26
$
(.18
)
$
.41
Weighted-average shares (thousands)
1,214,581
1,214,065
1,213,310
1,213,830
The Williams Companies,
Inc.
Consolidated Balance
Sheet
(Unaudited)
June 30, 2020
December 31, 2019
(Millions, except per-share
amounts)
ASSETS
Current assets:
Cash and cash equivalents
$
1,133
$
289
Trade accounts and other receivables
917
1,002
Allowance for doubtful accounts
(10
)
(6
)
Trade accounts and other receivables –
net
907
996
Inventories
134
125
Other current assets and deferred
charges
164
170
Total current assets
2,338
1,580
Investments
5,155
6,235
Property, plant, and equipment
42,092
41,510
Accumulated depreciation and
amortization
(12,955
)
(12,310
)
Property, plant, and equipment – net
29,137
29,200
Intangible assets – net of accumulated
amortization
7,609
7,959
Regulatory assets, deferred charges, and
other
1,104
1,066
Total assets
$
45,343
$
46,040
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
$
769
$
552
Accrued liabilities
1,043
1,276
Long-term debt due within one year
626
2,140
Total current liabilities
2,438
3,968
Long-term debt
22,323
20,148
Deferred income tax liabilities
1,729
1,782
Regulatory liabilities, deferred income,
and other
3,773
3,778
Contingent liabilities
Equity:
Stockholders’ equity:
Preferred stock
35
35
Common stock ($1 par value; 1,470 million
shares authorized at June 30, 2020 and December 31, 2019; 1,248
million shares issued at June 30, 2020 and 1,247 million shares
issued at December 31, 2019)
1,248
1,247
Capital in excess of par value
24,343
24,323
Retained deficit
(12,197
)
(11,002
)
Accumulated other comprehensive income
(loss)
(176
)
(199
)
Treasury stock, at cost (35 million shares
of common stock)
(1,041
)
(1,041
)
Total stockholders’ equity
12,212
13,363
Noncontrolling interests in consolidated
subsidiaries
2,868
3,001
Total equity
15,080
16,364
Total liabilities and equity
$
45,343
$
46,040
The Williams Companies,
Inc.
Consolidated Statement of Cash
Flows
(Unaudited)
Six Months Ended June
30,
2020
2019
(Millions)
OPERATING ACTIVITIES:
Net income (loss)
$
(255
)
$
538
Adjustments to reconcile to net cash
provided (used) by operating activities:
Depreciation and amortization
859
840
Provision (benefit) for deferred income
taxes
(59
)
182
Equity (earnings) losses
(130
)
(167
)
Distributions from unconsolidated
affiliates
323
327
Gain on disposition of equity-method
investments
—
(122
)
Impairment of goodwill
187
—
Impairment of equity-method
investments
938
72
Impairment of certain assets
—
76
Amortization of stock-based awards
24
30
Cash provided (used) by changes in current
assets and liabilities:
Accounts receivable
85
149
Inventories
(9
)
4
Other current assets and deferred
charges
(13
)
(16
)
Accounts payable
236
(98
)
Accrued liabilities
(236
)
70
Other, including changes in noncurrent
assets and liabilities
(20
)
(41
)
Net cash provided (used) by operating
activities
1,930
1,844
FINANCING ACTIVITIES:
Proceeds from (payments of) commercial
paper – net
—
(4
)
Proceeds from long-term debt
3,896
720
Payments of long-term debt
(3,226
)
(868
)
Proceeds from issuance of common stock
6
6
Proceeds from sale of partial interest in
consolidated subsidiary
—
1,330
Common dividends paid
(971
)
(921
)
Dividends and distributions paid to
noncontrolling interests
(98
)
(68
)
Contributions from noncontrolling
interests
4
32
Payments for debt issuance costs
(17
)
—
Other – net
(10
)
(9
)
Net cash provided (used) by financing
activities
(416
)
218
INVESTING ACTIVITIES:
Property, plant, and equipment:
Capital expenditures (1)
(613
)
(919
)
Dispositions – net
(16
)
(15
)
Contributions in aid of construction
19
18
Purchases of businesses, net of cash
acquired
—
(727
)
Proceeds from dispositions of
equity-method investments
—
485
Purchases of and contributions to
equity-method investments
(66
)
(242
)
Other – net
6
(24
)
Net cash provided (used) by investing
activities
(670
)
(1,424
)
Increase (decrease) in cash and cash
equivalents
844
638
Cash and cash equivalents at beginning of
year
289
168
Cash and cash equivalents at end of
period
$
1,133
$
806
_____________
(1) Increases to property, plant, and
equipment
$
(581
)
$
(977
)
Changes in related accounts payable and
accrued liabilities
(32
)
58
Capital expenditures
$
(613
)
$
(919
)
Transmission & Gulf of
Mexico
(UNAUDITED)
2019
2020
(Dollars in millions)
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
1st Qtr
2nd Qtr
Year
Regulated interstate natural gas
transportation, storage, and other revenues (1)
$
658
$
650
$
682
$
690
$
2,680
$
692
$
676
$
1,368
Gathering, processing, and transportation
revenues
128
121
117
113
479
99
78
177
Other fee revenues (1)
3
5
3
4
15
4
5
9
Commodity margins
8
7
6
4
25
3
1
4
Operating and administrative costs (1)
(197
)
(230
)
(209
)
(242
)
(878
)
(184
)
(189
)
(373
)
Other segment income (expenses) - net
(6
)
(7
)
22
22
31
4
2
6
Impairment of certain assets (2)
—
—
—
(354
)
(354
)
—
—
—
Proportional Modified EBITDA of
equity-method investments
42
44
44
47
177
44
42
86
Modified EBITDA
636
590
665
284
2,175
662
615
1,277
Adjustments
—
38
15
359
412
7
2
9
Adjusted EBITDA
$
636
$
628
$
680
$
643
$
2,587
$
669
$
617
$
1,286
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
12.0
12.9
Avg. daily firm reserved capacity
(Tbtu)
17.1
17.0
17.3
17.5
17.2
17.7
17.5
17.6
Northwest Pipeline LLC
Avg. daily transportation volumes
(Tbtu)
2.7
2.0
1.9
2.7
2.3
2.6
1.9
2.3
Avg. daily firm reserved capacity
(Tbtu)
3.1
3.0
3.0
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
1.2
1.2
Avg. daily firm reserved capacity
(Tbtu)
1.3
1.3
1.3
1.3
1.3
1.3
1.3
1.3
Gathering, Processing, and Crude Oil
Transportation
Consolidated (3)
Gathering volumes (Bcf/d)
0.25
0.25
0.22
0.29
0.25
0.30
0.23
0.26
Plant inlet natural gas volumes
(Bcf/d)
0.53
0.55
0.50
0.58
0.54
0.58
0.50
0.54
NGL production (Mbbls/d)
36
33
27
31
32
32
25
28
NGL equity sales (Mbbls/d)
7
9
5
6
7
5
4
5
Crude oil transportation volumes
(Mbbls/d)
146
136
128
135
136
138
92
115
Non-consolidated (4)
Gathering volumes (Bcf/d)
0.35
0.38
0.36
0.35
0.36
0.35
0.31
0.33
Plant inlet natural gas volumes
(Bcf/d)
0.35
0.39
0.36
0.35
0.36
0.35
0.31
0.33
NGL production (Mbbls/d)
24
27
24
26
25
24
23
24
NGL equity sales (Mbbls/d)
7
8
6
5
6
5
8
7
(1) Excludes certain amounts associated
with revenues and operating costs for tracked or reimbursable
charges.
(2) 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.
(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.
Northeast G&P
(UNAUDITED)
2019
2020
(Dollars in millions)
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
1st Qtr
2nd Qtr
Year
Gathering, processing, transportation, and
fractionation revenues
$
239
$
291
$
310
$
331
$
1,171
$
312
$
308
$
620
Other fee revenues (1)
23
21
23
24
91
25
25
50
Commodity margins
2
—
1
(1
)
2
1
1
2
Operating and administrative costs (1)
(83
)
(112
)
(100
)
(98
)
(393
)
(87
)
(86
)
(173
)
Other segment income (expenses) - net
(4
)
—
3
—
(1
)
(2
)
(4
)
(6
)
Impairment of certain assets
—
—
—
(10
)
(10
)
—
—
—
Proportional Modified EBITDA of
equity-method investments
122
103
108
121
454
120
126
246
Modified EBITDA
299
303
345
367
1,314
369
370
739
Adjustments
3
16
(2
)
10
27
1
(7
)
(6
)
Adjusted EBITDA
$
302
$
319
$
343
$
377
$
1,341
$
370
$
363
$
733
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
4.14
4.20
Plant inlet natural gas volumes
(Bcf/d)
0.63
1.04
1.16
1.33
1.04
1.24
1.22
1.23
NGL production (Mbbls/d)
44
58
92
106
76
92
85
89
NGL equity sales (Mbbls/d)
4
3
3
2
3
2
2
2
Non-consolidated (3)
Gathering volumes (Bcf/d)
4.27
4.08
4.35
4.47
4.29
4.40
4.68
4.54
(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
2020
(Dollars in millions)
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
1st Qtr
2nd Qtr
Year
Gathering, processing, transportation,
storage, and fractionation revenues
$
344
$
355
$
307
$
302
$
1,308
$
299
$
297
$
596
Other fee revenues (1)
7
6
6
4
23
6
13
19
Commodity margins
19
18
24
33
94
2
30
32
Operating and administrative costs (1)
(125
)
(135
)
(116
)
(114
)
(490
)
(115
)
(111
)
(226
)
Other segment income (expenses) - net
(3
)
4
(5
)
6
2
(5
)
—
(5
)
Impairment of certain assets
(12
)
(64
)
—
(24
)
(100
)
—
—
—
Proportional Modified EBITDA of
equity-method investments
26
28
29
32
115
28
24
52
Modified EBITDA
256
212
245
239
952
215
253
468
Adjustments
14
75
(1
)
24
112
1
(1
)
—
Adjusted EBITDA
$
270
$
287
$
244
$
263
$
1,064
$
216
$
252
$
468
Statistics for Operated Assets
Gathering and Processing
Consolidated (2)
Gathering volumes (Bcf/d)
3.42
3.53
3.61
3.51
3.52
3.43
3.40
3.41
Plant inlet natural gas volumes
(Bcf/d)
1.41
1.52
1.56
1.44
1.48
1.26
1.33
1.29
NGL production (Mbbls/d)
62
59
48
46
54
35
51
43
NGL equity sales (Mbbls/d)
27
28
17
17
22
12
25
18
Non-consolidated (3)
Gathering volumes (Bcf/d)
0.17
0.15
0.21
0.27
0.20
0.20
0.24
0.22
Plant inlet natural gas volumes
(Bcf/d)
0.17
0.14
0.21
0.26
0.20
0.20
0.23
0.22
NGL production (Mbbls/d)
7
1
18
22
12
17
23
20
NGL and Crude Oil Transportation volumes
(Mbbls/d) (4)
254
269
250
238
253
227
142
369
(1) Excludes certain amounts associated
with revenues and operating costs for reimbursable charges.
(2) Excludes volumes associated with
equity-method investments that are not consolidated in our
results.
(3) 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.
(4) 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
2020
(Dollars in millions)
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
1st Qtr
2nd Qtr
Year
Capital expenditures:
Transmission & Gulf of Mexico
$
204
$
255
$
543
$
252
$
1,254
$
185
$
181
$
366
Northeast G&P
152
177
131
74
534
46
41
87
West
58
59
107
76
300
72
80
152
Other
8
6
5
2
21
3
5
8
Total (1)
$
422
$
497
$
786
$
404
$
2,109
$
306
$
307
$
613
Purchases of investments:
Transmission & Gulf of Mexico
$
—
$
12
$
3
$
1
$
16
$
1
$
1
$
2
Northeast G&P
47
61
34
63
205
27
30
57
West
52
70
82
28
232
2
5
7
Total
$
99
$
143
$
119
$
92
$
453
$
30
$
36
$
66
Summary:
Transmission & Gulf of Mexico
$
204
$
267
$
546
$
253
$
1,270
$
186
$
182
$
368
Northeast G&P
199
238
165
137
739
73
71
144
West
110
129
189
104
532
74
85
159
Other
8
6
5
2
21
3
5
8
Total
$
521
$
640
$
905
$
496
$
2,562
$
336
$
343
$
679
Capital investments:
Increases to property, plant, and
equipment
$
418
$
559
$
730
$
316
$
2,023
$
254
$
327
$
581
Purchases of businesses, net of cash
acquired
727
—
1
—
728
—
—
—
Purchases of investments
99
143
119
92
453
30
36
66
Total
$
1,244
$
702
$
850
$
408
$
3,204
$
284
$
363
$
647
(1) Increases to property, plant, and
equipment
$
418
$
559
$
730
$
316
$
2,023
$
254
$
327
$
581
Changes in related accounts payable and
accrued liabilities
4
(62
)
56
88
86
52
(20
)
32
Capital expenditures
$
422
$
497
$
786
$
404
$
2,109
$
306
$
307
$
613
Contributions from noncontrolling
interests
$
4
$
28
$
—
$
4
$
36
$
2
$
2
$
4
Contributions in aid of construction
$
10
$
8
$
7
$
27
$
52
$
14
$
5
$
19
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
$
—
$
—
$
—
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) from
Continuing Operations Attributable to The Williams Companies, Inc.
to Adjusted Income
(UNAUDITED)
2019
2020
(Dollars in millions, except per-share
amounts)
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
1st Qtr
2nd Qtr
Year
Income (loss) from continuing
operations attributable to The Williams Companies, Inc. available
to common stockholders
$
194
$
310
$
220
$
138
$
862
$
(518
)
$
303
$
(215
)
Income (loss) from continuing
operations - diluted earnings (loss) per common share (1)
$
.16
$
.26
$
.18
$
.11
$
.71
$
(.43
)
$
.25
$
(.18
)
Adjustments:
Transmission &
Gulf of Mexico
Constitution Pipeline project development
costs
$
—
$
1
$
1
$
1
$
3
$
—
$
—
$
—
Northeast Supply Enhancement project
development costs
—
—
—
—
—
—
3
3
Impairment of certain assets (2)
—
—
—
354
354
—
—
—
Pension plan settlement charge
—
—
—
—
—
4
1
5
Adjustment of Transco’s regulatory asset
for post-WPZ Merger state deferred income tax change consistent
with filed rate case
—
—
—
—
—
2
—
2
Benefit of change in employee benefit
policy
—
—
—
—
—
—
(3
)
(3
)
Reversal of expenditures capitalized in
prior years
—
15
—
1
16
—
—
—
Severance and related costs
—
22
14
3
39
1
1
2
Total Transmission & Gulf of Mexico
adjustments
—
38
15
359
412
7
2
9
Northeast
G&P
Expenses associated with new venture
3
6
1
—
10
—
—
—
Share of early debt retirement gain at
equity-method investment
—
—
—
—
—
—
(5
)
(5
)
Pension plan settlement charge
—
—
—
—
—
1
—
1
Impairment of certain assets
—
—
—
10
10
—
—
—
Severance and related costs
—
10
(3
)
—
7
—
—
—
Benefit of change in employee benefit
policy
—
—
—
—
—
—
(2
)
(2
)
Total Northeast G&P adjustments
3
16
(2
)
10
27
1
(7
)
(6
)
West
Impairment of certain assets
12
64
—
24
100
—
—
—
Pension plan settlement charge
—
—
—
—
—
1
—
1
Benefit of change in employee benefit
policy
—
—
—
—
—
—
(1
)
(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
(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
(6
)
3
Adjustments below
Modified EBITDA
Impairment of equity-method
investments
74
(2
)
114
—
186
938
—
938
Impairment of goodwill (2)
—
—
—
—
—
187
—
187
Share of impairment of goodwill at
equity-method investment
—
—
—
—
—
78
—
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
)
—
(65
)
76
(125
)
114
(183
)
(118
)
1,138
—
1,138
Total adjustments
105
4
135
206
450
1,147
(6
)
1,141
Less tax effect for above items
(26
)
(1
)
(34
)
(51
)
(112
)
(316
)
8
(308
)
Adjusted income from continuing
operations available to common stockholders
$
273
$
313
$
321
$
293
$
1,200
$
313
$
305
$
618
Adjusted income from continuing
operations - diluted earnings per common share (1)
$
.22
$
.26
$
.26
$
.24
$
.99
$
.26
$
.25
$
.51
Weighted-average shares - diluted
(thousands)
1,213,592
1,214,065
1,214,165
1,214,212
1,214,011
1,214,348
1,214,581
1,214,464
(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) 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
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)
$
214
$
324
$
242
$
(66
)
$
714
$
(570
)
$
315
$
(255
)
Provision (benefit) for income taxes
69
98
77
91
335
(204
)
117
(87
)
Interest expense
296
296
296
298
1,186
296
294
590
Equity (earnings) losses
(80
)
(87
)
(93
)
(115
)
(375
)
(22
)
(108
)
(130
)
Impairment of goodwill
—
—
—
—
—
187
—
187
Impairment of equity-method
investments
74
(2
)
114
—
186
938
—
938
Other investing (income) loss - net
(1
)
(124
)
(7
)
25
(107
)
(3
)
(1
)
(4
)
Proportional Modified EBITDA of
equity-method investments
190
175
181
200
746
192
192
384
Depreciation and amortization expenses
416
424
435
439
1,714
429
430
859
Accretion expense associated with asset
retirement obligations for nonregulated operations
9
8
8
8
33
10
7
17
(Income) loss from discontinued
operations, net of tax
—
—
—
15
15
—
—
—
Modified EBITDA
1,187
1,112
1,253
895
4,447
1,253
1,246
2,499
EBITDA adjustments
29
129
21
389
568
9
(6
)
3
Adjusted EBITDA
1,216
1,241
1,274
1,284
5,015
1,262
1,240
2,502
Maintenance capital expenditures (1)
(93
)
(130
)
(128
)
(113
)
(464
)
(52
)
(83
)
(135
)
Preferred dividends
(1
)
—
(1
)
(1
)
(3
)
(1
)
—
(1
)
Net interest expense - cash portion
(2)
(304
)
(302
)
(301
)
(306
)
(1,213
)
(304
)
(304
)
(608
)
Cash taxes
3
85
(2
)
—
86
—
(2
)
(2
)
Dividends and distributions paid to
noncontrolling interests
(41
)
(27
)
(20
)
(36
)
(124
)
(44
)
(54
)
(98
)
Distributable cash flow
$
780
$
867
$
822
$
828
$
3,297
$
861
$
797
$
1,658
Common dividends paid
$
460
$
461
$
461
$
460
$
1,842
$
485
$
486
$
971
Coverage ratios:
Distributable cash flow divided by Common
dividends paid
1.70
1.88
1.78
1.80
1.79
1.78
1.64
1.71
Net income (loss) divided by Common
dividends paid
0.47
0.70
0.52
(0.14
)
0.39
(1.18
)
0.65
(0.26
)
(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
2020
(Dollars in millions)
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
1st Qtr
2nd Qtr
Year
Net income (loss)
$
214
$
324
$
242
$
(66
)
$
714
$
(570
)
$
315
$
(255
)
Provision (benefit) for income taxes
69
98
77
91
335
(204
)
117
(87
)
Interest expense
296
296
296
298
1,186
296
294
590
Equity (earnings) losses
(80
)
(87
)
(93
)
(115
)
(375
)
(22
)
(108
)
(130
)
Impairment of goodwill
—
—
—
—
—
187
—
187
Impairment of equity-method
investments
74
(2
)
114
—
186
938
—
938
Other investing (income) loss - net
(1
)
(124
)
(7
)
25
(107
)
(3
)
(1
)
(4
)
Proportional Modified EBITDA of
equity-method investments
190
175
181
200
746
192
192
384
Depreciation and amortization expenses
416
424
435
439
1,714
429
430
859
Accretion expense associated with asset
retirement obligations for nonregulated operations
9
8
8
8
33
10
7
17
(Income) loss from discontinued
operations, net of tax
—
—
—
15
15
—
—
—
Modified EBITDA
$
1,187
$
1,112
$
1,253
$
895
$
4,447
$
1,253
$
1,246
$
2,499
Transmission & Gulf of Mexico
$
636
$
590
$
665
$
284
$
2,175
$
662
$
615
$
1,277
Northeast G&P
299
303
345
367
1,314
369
370
739
West
256
212
245
239
952
215
253
468
Other
(4
)
7
(2
)
5
6
7
8
15
Total Modified EBITDA
$
1,187
$
1,112
$
1,253
$
895
$
4,447
$
1,253
$
1,246
$
2,499
Adjustments included in Modified EBITDA
(1):
Transmission & Gulf of Mexico
$
—
$
38
$
15
$
359
$
412
$
7
$
2
$
9
Northeast G&P
3
16
(2
)
10
27
1
(7
)
(6
)
West
14
75
(1
)
24
112
1
(1
)
—
Other
12
—
9
(4
)
17
—
—
—
Total Adjustments included in Modified
EBITDA
$
29
$
129
$
21
$
389
$
568
$
9
$
(6
)
$
3
Adjusted EBITDA:
Transmission & Gulf of Mexico
$
636
$
628
$
680
$
643
$
2,587
$
669
$
617
$
1,286
Northeast G&P
302
319
343
377
1,341
370
363
733
West
270
287
244
263
1,064
216
252
468
Other
8
7
7
1
23
7
8
15
Total Adjusted EBITDA
$
1,216
$
1,241
$
1,274
$
1,284
$
5,015
$
1,262
$
1,240
$
2,502
(1) 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
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 in this report 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, natural gas liquids and crude oil prices, supply,
and demand;
- Demand for our services;
- The impact of the novel coronavirus (COVID-19) pandemic.
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 in this
report. 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:
- 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 impacts of operational and developmental hazards and
unforeseen interruptions;
- The risks resulting from outbreaks or other public health
crises, including 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).
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 in this report.
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 for the
year ended December 31, 2019, as filed with the SEC on February 24,
2020, as supplemented by the disclosure in Part II, Item 1A. Risk
Factors in our Quarterly Report on Form 10-Q for the quarter ended
March 31, 2020.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200803005717/en/
MEDIA CONTACT: media@williams.com (800) 945-8723
INVESTOR CONTACTS: Brett Krieg (918) 573-4614
Grace Scott (918) 573-1092
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