Williams (NYSE: WMB) today announced its unaudited financial
results for the three and 12 months ended Dec. 31, 2019.
Full-year 2019 Results Reflect Year-Over-Year Growth Compared
with 2018
- Net income from continuing operations attributable to Williams
available to common stockholders of $862 million – up $1.0 billion
over 2018
- Net income from continuing operations per share is $0.71 vs.
net loss of $0.16 for 2018
- Adjusted income per share is $0.99 – up 25% over 2018
- Cash flow from operations of $3.69 billion – up 12% over
2018
- Adjusted EBITDA of $5.02 billion, up $377 million or 8% over
2018
- DCF of $3.30 billion – up $425 million or 15% over 2018
Solid Execution Delivers Strong 4Q 2019 Results
- Net income from continuing operations attributable to Williams
available to common stockholders of $138 million – up $710 million
over 4Q '18
- Net income per share of $0.11 vs. net loss of $0.47 per share
in 4Q '18
- Adjusted income per share of $0.24 – up 26% over 4Q '18
- Cash flow from operations of $991 million – up $29 million or
3% over 4Q '18
- Adjusted EBITDA of $1.284 billion – up $87 million or 7% over
4Q '18
- Distributable Cash Flow ("DCF") of $828 million – up $80
million or 11% over 4Q '18
- Dividend coverage ratio is 1.80x
- Debt (Net of Cash) to adjusted EBITDA at quarter end:
4.39x
Impressive Business Performance With Records Set for Adjusted
EBITDA, Gathering Volumes and Transportation Capacity
- Record 2019 adjusted EBITDA driven by strong growth in
Atlantic-Gulf and Northeast G&P
- Record 4Q gathered volumes of 13.3 Bcf/d, up 10% over 4Q 2018;
YTD record 12.9 Bcf/d, up 5% over 2018
- Record 4Q '19 firm reserved transportation capacity of ~21.8
Bcf/d, up 8% over 4Q '18, driven by expansion projects including
the Gateway and Rivervale South to Market expansions in the
Northeast and the North Seattle Lateral expansion in the
Northwest
CEO Perspective
Alan Armstrong, president and chief executive officer, made the
following comments:
“Williams achieved yet another year of record results in 2019,
once again delivering impressive year-over-year growth and
exceeding guidance midpoints in our key financial metrics while
dramatically reducing capital expenditures. These results were
underpinned by our strong operations – we set records for both
gathered volumes and firm reserved transportation capacity, and our
safety metrics continue to improve. We also generated cash in
excess of dividends and capital expenditures, reflecting the
combined impact of strong business performance, capital discipline
and our ongoing portfolio optimization efforts. These results are
driving improvement in our credit metrics. Looking ahead to 2020,
our disciplined approach to capital allocation should allow us to
fully fund our increased dividend and capital expenditures with
internally generated cash flows.
"Williams remains extremely well-positioned to capture long-term
sustainable growth with our natural gas focused strategy. We
continue to see demand for new transport capacity along our premier
interstate transmission systems, and the scale and location of our
deepwater Gulf of Mexico assets provide a strong competitive
advantage to capture emerging growth opportunities. Our resilient
G&P business can not only withstand current market pressures,
but is also well-positioned to generate long-term value as demand
for natural gas continues to grow.”
Armstrong added, “Natural gas has been – and will continue to be
– a cornerstone of our nation’s prosperity in the 21st century and
a critical part of our clean energy future. Abundant, low cost and
reliable natural gas has driven significant reductions in U.S. CO2
emissions, lowered consumers’ utility bills and paved the way for
investment in renewables. As the American energy leader that safely
handles 30% of the nation’s natural gas, Williams’ large-scale
infrastructure is ready to meet continued demand growth, both in
the U.S. and abroad.”
Williams Summary Financial
Information
4Q
YTD
Amounts in millions, except ratios and
per-share amounts. Per share amounts are reported on a diluted
basis. Net income (loss) amounts are from continuing operations
attributable to The Williams Companies, Inc. available to common
stockholders.
2019
2018
2019
2018
GAAP Measures
Net Income
$138
($572
)
$862
($156
)
Net Income Per Share
$0.11
($0.47
)
$0.71
($0.16
)
Cash Flow From Operations
$991
$962
$3,693
$3,293
Non-GAAP Measures (1)
Adjusted EBITDA
$1,284
$1,197
$5,015
$4,638
Adjusted Income
$293
$230
$1,200
$775
Adjusted Income Per Share
$0.24
$0.19
$0.99
$0.79
Distributable Cash Flow
$828
$748
$3,297
$2,872
Dividend Coverage Ratio
1.80
x
1.82
x
1.79
x
1.69
x
Other
Debt-to-Adjusted EBITDA at Quarter End
(2)
4.39
x
4.80
x
Capital Investments (3)(4)
$408
$868
$2,476
$4,153
(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 $728 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
- Fourth-quarter 2019 net income benefited from $69 million of
increased service revenues driven by Transco expansion projects,
the consolidation of UEOM revenues beginning in March 2019, and
growth in Northeast G&P volumes. These improvements were
partially offset by lower revenues from our Barnett Shale
operations primarily associated with reduced recognition of
non-cash deferred revenue and the end of a contractual minimum
volume commitment (MVC) period.
- Fourth-quarter 2019 also benefited from $1.7 billion lower net
asset impairments, partially offset by $692 million due to the
absence of 4Q '18 gains on asset sales and $141 million associated
with the absence of 4Q '18 gains from the deconsolidation of
certain businesses.
- Full-year 2019 net income benefited from $431 million of
increased service revenues primarily due to the same drivers
affecting 4Q '19, partially offset by the absence of revenues from
operations sold or deconsolidated during 2018, as well as a $138
million decline in commodity margins.
- The full year also benefited from $1.7 billion lower net asset
impairments, partially offset by the absence of $692 million in
gains on asset sales in 4Q '18 as well as $203 million associated
with gains from the deconsolidation of certain businesses in
2018.
- Full-year 2019 net income also reflects lower income
attributable to non-controlling interests due to the WPZ merger in
2018 and an increased provision for income taxes in 2019 driven by
higher pre-tax income.
- The increase in cash flow from operations for fourth-quarter
and full-year 2019 periods were largely driven by the increased
service revenues as previously described and the collection of
Transco's filed rates, some of which is subject to refund. The YTD
2019 period also benefited from the receipt of an income tax
refund.
Non-GAAP Measures
- The increase in adjusted EBITDA for 4Q 2019 and full-year 2019
largely reflects the previously mentioned increased Transco and
Northeast G&P service revenues and the benefit of Transco's
recently settled general rate case. Lower commodity margins
partially offset the higher service revenues in full-year
2019.
- Adjusted income for both the quarter and full-year periods also
improved, driven by the higher adjusted EBITDA. The full-year
period variance also reflects less income attributable to
noncontrolling interests driven by the WPZ merger, partially offset
by higher interest expense associated with financing obligations
for leased pipeline capacity and an increased provision for income
taxes.
- Fourth-quarter and full-year 2019 DCF are higher, reflecting
the increased adjusted EBITDA and lower maintenance capital,
partially offset by higher net interest expense. The full-year
increase also benefited from an income tax refund received in
2019.
Business Segment Results & Form 10-K
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 2019 Form 10-K,
which Williams expects to file next 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
4Q 2019
4Q 2018
Change
4Q 2019
4Q 2018
Change
2019
2018
Change
2019
2018
Change
Atlantic-Gulf
$212
$605
($393
)
$570
$529
$41
$1,895
$2,023
($128
)
$2,300
$1,931
$369
West
311
(906
)
1,217
336
358
(22
)
1,232
308
924
1,351
1,577
(226
)
Northeast G&P
367
300
67
377
304
73
1,314
1,086
228
1,341
1,090
251
Other
5
20
(15
)
1
6
(5
)
6
(29
)
35
23
40
(17
)
Totals
$895
$19
$876
$1,284
$1,197
$87
$4,447
$3,388
$1,059
$5,015
$4,638
$377
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
- Fourth-quarter and full-year 2019 modified and adjusted EBITDA
reflect increased service revenues from Transco expansion projects
placed in service and the benefit of Transco’s recently settled
general rate case, partially offset by lower revenues from
Gulfstar. Projects placed into full-service in 4Q '19 include the
Gateway and Rivervale South to Market expansions serving the
Northeast.
- Fourth-quarter and full-year 2019 modified EBITDA were
negatively impacted by a $354 million impairment of the
Constitution Pipeline project, of which Williams' 41% share was
$145 million, as well as the absence of an $81 million prior-year
gain on the sale of certain Gulf Coast pipeline assets.
- Full-year 2019 modified EBITDA was also negatively impacted by
lower equity AFUDC due to lower levels of construction activity and
severance expenses.
- The impairment charges, gains on asset sales and severance
expenses reflected in modified EBITDA are excluded from adjusted
EBITDA.
- The company filed a formal stipulation and agreement for
Transco’s rate case with the FERC on December 31. All comments
received during the public comment period were in support of the
settlement. The company anticipates FERC approval of the settlement
in second-quarter 2020.
West
- Fourth-quarter and full-year 2019 modified and adjusted EBITDA
reflect the absence of revenues from operations either sold or
deconsolidated and lower revenues in Barnett Shale and Mid-Con,
partially offset by higher revenue in Eagle Ford, Haynesville, the
Conway fractionation and storage business and growth in JV EBITDA
from Rocky Mountain Midstream. Fourth-quarter 2019 experienced an
improvement in commodity margins driven by marketing activities,
while full-year 2019 was unfavorably impacted by lower NGL
prices.
- The lower revenue at Barnett Shale noted above was primarily
associated with reduced recognition of non-cash deferred revenue
and the end of a contractual MVC period. Lower revenues in Mid-Con
noted above were due to lower rates and volumes.
- Fourth-quarter and full-year 2019 modified EBITDA were
favorably impacted by the absence of the $1.8 billion impairment of
certain Barnett Shale gathering assets in 2018, partially offset by
the absence of a $591 million gain on the 2018 sale of our Four
Corners operations.
- The impairment charges and gains on asset sales reflected in
modified EBITDA are excluded from adjusted EBITDA.
- Fourth-quarter and YTD 2019 results reflect higher gathering
volumes in the Eagle Ford, Haynesville, and Rocky Mountain
Midstream systems. Eagle Ford gathering volumes increased by 9%
versus 4Q '18 and by 10% YTD over 2018. Haynesville gathering
volumes increased by 21% versus 4Q '18 and by 12% YTD over 2018.
Rocky Mountain Midstream gathering volumes grew dramatically on a
percentage basis, achieving an average of approximately 270 MMcf/d
in 4Q 2019.
Northeast G&P
- Improvement in modified and adjusted EBITDA for 4Q and YTD 2019
was driven by increased service revenues from the Susquehanna
Supply Hub, the Utica Shale region, and Ohio Valley, as well as the
acquisition of Utica East Ohio Midstream in March 2019. The YTD
improvements also reflect higher proportional EBITDA from our
Appalachia Midstream investment driven by the Marcellus South
system.
- The 4Q and YTD 2019 periods reflect increases in gross
gathering volumes, including 100% of operated equity-method
investments, of 12% and 15%, respectively, over the same reporting
periods in 2018.
Williams' Fourth-Quarter 2019 Materials to be Posted Shortly;
Q&A Webcast Scheduled for Tomorrow
Williams' fourth-quarter 2019 earnings presentation will be
posted at www.williams.com. The
company’s fourth-quarter 2019 earnings conference call and webcast
with analysts and investors is scheduled for Thursday, Feb. 20, at
9:30 a.m. Eastern Time (8:30 a.m. Central Time). A limited number
of phone lines will be available at (800) 353-6461. International
callers should dial (334) 323-0501. The conference ID is 8801169. 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
Year Ended December
31,
2019
2018
2017
(Millions, except per-share
amounts)
Revenues:
Service revenues
$
5,933
$
5,502
$
5,312
Service revenues – commodity
consideration
203
400
—
Product sales
2,065
2,784
2,719
Total revenues
8,201
8,686
8,031
Costs and expenses:
Product costs
1,961
2,707
2,300
Processing commodity expenses
105
137
—
Operating and maintenance expenses
1,468
1,507
1,576
Depreciation and amortization expenses
1,714
1,725
1,736
Selling, general, and administrative
expenses
558
569
594
Impairment of certain assets
464
1,915
1,248
Gain on sale of certain assets and
businesses
2
(692
)
(1,095
)
Regulatory charges resulting from Tax
Reform
—
(17
)
674
Other (income) expense – net
8
67
71
Total costs and expenses
6,280
7,918
7,104
Operating income (loss)
1,921
768
927
Equity earnings (losses)
375
396
434
Other investing income (loss) – net
(79
)
187
282
Interest incurred
(1,218
)
(1,160
)
(1,116
)
Interest capitalized
32
48
33
Other income (expense) – net
33
92
(25
)
Income (loss) from continuing operations
before income taxes
1,064
331
535
Provision (benefit) for income taxes
335
138
(1,974
)
Income (loss) from continuing
operations
729
193
2,509
Income (loss) from discontinued
operations
(15
)
—
—
Net income (loss)
714
193
2,509
Less: Net income (loss) attributable to
noncontrolling interests
(136
)
348
335
Net income (loss) attributable to The
Williams Companies, Inc.
850
(155
)
2,174
Preferred stock dividends
3
1
—
Net income (loss) available to common
stockholders
$
847
$
(156
)
$
2,174
Amounts attributable to The Williams
Companies, Inc. available to common stockholders:
Income (loss) from continuing
operations
$
862
$
(156
)
$
2,174
Income (loss) from discontinued
operations
(15
)
—
—
Net income (loss)
$
847
$
(156
)
$
2,174
Basic earnings (loss) per common
share:
Income (loss) from continuing
operations
$
.71
$
(.16
)
$
2.63
Income (loss) from discontinued
operations
(.01
)
—
—
Net income (loss)
$
.70
$
(.16
)
$
2.63
Weighted-average shares (thousands)
1,212,037
973,626
826,177
Diluted earnings (loss) per common
share:
Income (loss) from continuing
operations
$
.71
$
(.16
)
$
2.62
Income (loss) from discontinued
operations
(.01
)
—
—
Net income (loss)
$
.70
$
(.16
)
$
2.62
Weighted-average shares (thousands)
1,214,011
973,626
828,518
The Williams Companies,
Inc.
Consolidated Balance
Sheet
December 31,
2019
2018
(Millions, except per-share
amounts)
ASSETS
Current assets:
Cash and cash equivalents
$
289
$
168
Trade accounts and other receivables (net
of allowance of $6 at December 31, 2019 and $9 at December 31,
2018)
996
992
Inventories
125
130
Other current assets and deferred
charges
170
174
Total current assets
1,580
1,464
Investments
6,235
7,821
Property, plant, and equipment – net
29,200
27,504
Intangible assets – net of accumulated
amortization
7,959
7,767
Regulatory assets, deferred charges, and
other
1,066
746
Total assets
$
46,040
$
45,302
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
$
552
$
662
Accrued liabilities
1,276
1,102
Long-term debt due within one year
2,140
47
Total current liabilities
3,968
1,811
Long-term debt
20,148
22,367
Deferred income tax liabilities
1,782
1,524
Regulatory liabilities, deferred income,
and other
3,778
3,603
Contingent liabilities and commitments
Equity:
Stockholders’ equity:
Preferred stock
35
35
Common stock ($1 par value; 1,470 million
shares authorized at December 31, 2019 and December 31, 2018; 1,247
million shares issued at December 31, 2019 and 1,245 million shares
issued at December 31, 2018)
1,247
1,245
Capital in excess of par value
24,323
24,693
Retained deficit
(11,002
)
(10,002
)
Accumulated other comprehensive income
(loss)
(199
)
(270
)
Treasury stock, at cost (35 million shares
of common stock)
(1,041
)
(1,041
)
Total stockholders’ equity
13,363
14,660
Noncontrolling interests in consolidated
subsidiaries
3,001
1,337
Total equity
16,364
15,997
Total liabilities and equity
$
46,040
$
45,302
The Williams Companies,
Inc.
Consolidated Statement of Cash
Flows
Year Ended December
31,
2019
2018
2017
(Millions)
OPERATING ACTIVITIES:
Net income (loss)
$
714
$
193
$
2,509
Adjustments to reconcile to net cash
provided (used) by operating activities:
Depreciation and amortization
1,714
1,725
1,736
Provision (benefit) for deferred income
taxes
376
220
(2,012
)
Equity (earnings) losses
(375
)
(396
)
(434
)
Distributions from unconsolidated
affiliates
657
693
784
Gain on disposition of equity-method
investments
(122
)
—
(269
)
Impairment of equity-method
investments
186
32
—
(Gain) on sale of certain assets and
businesses
2
(692
)
(1,095
)
Impairment of certain assets
464
1,915
1,249
(Gain) loss on deconsolidation of
businesses
29
(203
)
—
Amortization of stock-based awards
57
55
78
Regulatory charges resulting from Tax
Reform
—
(15
)
776
Cash provided (used) by changes in current
assets and liabilities:
Accounts and notes receivable
34
(36
)
(88
)
Inventories
5
(16
)
8
Other current assets and deferred
charges
21
17
(21
)
Accounts payable
(46
)
(93
)
118
Accrued liabilities
153
23
(92
)
Other, including changes in noncurrent
assets and liabilities
(176
)
(129
)
(158
)
Net cash provided (used) by operating
activities
3,693
3,293
3,089
FINANCING ACTIVITIES:
Proceeds from (payments of) commercial
paper – net
(4
)
(2
)
(93
)
Proceeds from long-term debt
767
3,926
3,333
Payments of long-term debt
(909
)
(3,204
)
(5,925
)
Proceeds from issuance of common stock
10
15
2,131
Proceeds from sale of partial interest in
consolidated subsidiary
1,334
—
—
Common dividends paid
(1,842
)
(1,386
)
(992
)
Dividends and distributions paid to
noncontrolling interests
(124
)
(591
)
(822
)
Contributions from noncontrolling
interests
36
15
17
Payments for debt issuance costs
—
(26
)
(17
)
Other – net
(13
)
(46
)
(92
)
Net cash provided (used) by financing
activities
(745
)
(1,299
)
(2,460
)
INVESTING ACTIVITIES:
Property, plant, and equipment:
Capital expenditures (1)
(2,109
)
(3,256
)
(2,399
)
Dispositions – net
(40
)
(7
)
(41
)
Contributions in aid of construction
52
411
426
Proceeds from sale of businesses, net of
cash divested
(2
)
1,296
2,067
Purchases of businesses, net of cash
acquired
(728
)
—
—
Proceeds from dispositions of
equity-method investments
485
—
200
Purchases of and contributions to
equity-method investments
(453
)
(1,132
)
(132
)
Other – net
(32
)
(37
)
(21
)
Net cash provided (used) by investing
activities
(2,827
)
(2,725
)
100
Increase (decrease) in cash and cash
equivalents
121
(731
)
729
Cash and cash equivalents at beginning of
year
168
899
170
Cash and cash equivalents at end of
year
$
289
$
168
$
899
_________
(1) Increases to property, plant, and
equipment
$
(2,023
)
$
(3,021
)
$
(2,662
)
Changes in related accounts payable and
accrued liabilities
(86
)
(235
)
263
Capital expenditures
$
(2,109
)
$
(3,256
)
$
(2,399
)
Atlantic-Gulf
(UNAUDITED)
2018
2019
(Dollars in millions)
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
Revenues:
Service revenues:
Nonregulated gathering & processing
fee-based revenue
$
138
$
128
$
138
$
137
$
541
$
128
$
119
$
117
$
113
$
477
Regulated transportation revenue
413
406
411
508
1,738
517
514
549
548
2,128
Other fee revenues
32
34
34
34
134
34
40
32
34
140
Tracked service revenue
26
22
24
24
96
30
25
33
28
116
Nonregulated commodity consideration
15
12
18
14
59
13
13
7
8
41
Product sales:
NGL sales from gas processing
15
10
16
15
56
12
12
6
9
39
Marketing sales
45
57
67
53
222
40
32
23
34
129
Other sales
1
1
1
—
3
2
1
1
1
5
Tracked product sales
32
37
47
38
154
28
23
46
18
115
Total revenues
717
707
756
823
3,003
804
779
814
793
3,190
Segment costs and expenses:
NGL cost of goods sold
15
12
19
14
60
13
14
6
8
41
Marketing cost of goods sold
44
56
67
53
220
41
28
23
34
126
Other cost of goods sold
—
—
—
—
—
—
2
—
1
3
Tracked cost of goods sold
33
38
48
39
158
28
25
46
19
118
Processing commodity expenses
5
2
3
6
16
5
5
2
4
16
Operating and administrative costs
177
181
181
197
736
168
198
176
208
750
Tracked operating and administrative
costs
26
22
24
23
95
30
25
32
29
116
Other segment costs and expenses
(2
)
(15
)
(29
)
14
(32
)
1
2
(26
)
(29
)
(52
)
Impairment of certain assets (1)
—
—
—
—
—
—
—
—
354
354
Gain on sale of certain assets and
businesses
—
—
—
(81
)
(81
)
—
—
—
—
—
Regulatory charges resulting from Tax
Reform
11
(20
)
—
—
(9
)
—
—
—
—
—
Total segment costs and expenses
309
276
313
265
1,163
286
299
259
628
1,472
Proportional Modified EBITDA of
equity-method investments
43
44
49
47
183
42
44
44
47
177
Modified EBITDA
451
475
492
605
2,023
560
524
599
212
1,895
Adjustments
15
(19
)
(12
)
(76
)
(92
)
—
35
12
358
405
Adjusted EBITDA
$
466
$
456
$
480
$
529
$
1,931
$
560
$
559
$
611
$
570
$
2,300
NGL Margin
$
10
$
8
$
12
$
9
$
39
$
7
$
6
$
5
$
5
$
23
Statistics for Operated Assets
Gathering, Processing, and Crude Oil
Transportation
Gathering volumes (Bcf per day) -
Consolidated (2)
0.29
0.23
0.26
0.24
0.26
0.25
0.25
0.22
0.29
0.25
Gathering volumes (Bcf per day) -
Non-consolidated (3)
0.24
0.25
0.25
0.31
0.26
0.35
0.38
0.36
0.35
0.36
Plant inlet natural gas volumes (Bcf per
day) - Consolidated (2)
0.54
0.43
0.51
0.53
0.50
0.53
0.55
0.50
0.58
0.54
Plant inlet natural gas volumes (Bcf per
day) - Non-consolidated (3)
0.24
0.25
0.25
0.32
0.27
0.35
0.39
0.36
0.35
0.36
Crude transportation volumes (Mbbls/d)
142
132
147
140
140
146
136
128
135
136
Consolidated (2)
Ethane margin ($/gallon)
$
.03
$
.16
$
.24
$
.14
$
.14
$
.10
$
.02
$
.01
$
.01
$
.04
Non-ethane margin ($/gallon)
$
.66
$
.74
$
.76
$
.58
$
.68
$
.48
$
.28
$
.35
$
.37
$
.36
NGL margin ($/gallon)
$
.40
$
.48
$
.51
$
.36
$
.43
$
.26
$
.17
$
.22
$
.24
$
.22
Ethane equity sales (Mbbls/d)
2.82
1.91
3.05
2.98
2.69
4.16
4.11
1.85
1.97
3.01
Non-ethane equity sales (Mbbls/d)
3.87
2.35
3.14
3.21
3.14
3.28
5.34
3.15
3.57
3.84
NGL equity sales (Mbbls/d)
6.69
4.26
6.19
6.19
5.83
7.44
9.45
5.00
5.54
6.85
Ethane production (Mbbls/d)
12
12
15
16
14
17
14
9
10
13
Non-ethane production (Mbbls/d)
19
17
18
19
18
19
19
18
21
19
NGL production (Mbbls/d)
31
29
33
35
32
36
33
27
31
32
Non-consolidated (3)
NGL equity sales (Mbbls/d)
3
5
4
5
4
7
8
6
5
6
NGL production (Mbbls/d)
18
20
20
23
20
24
27
24
26
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
1,216.2
1,227.6
4,737.2
Avg. daily transportation volumes
(Tbtu)
12.2
10.6
11.9
12.5
11.8
13.2
12.2
13.2
13.3
13.0
Avg. daily firm reserved capacity
(Tbtu)
15.4
15.0
15.0
16.4
15.5
17.1
17.0
17.3
17.5
17.2
(1) 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.
(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.
Northeast G&P
(UNAUDITED)
2018
2019
(Dollars in millions)
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
Revenues:
Service revenues:
Nonregulated gathering and processing
fee-based revenue
$
189
$
196
$
211
$
226
$
822
$
230
$
267
$
284
$
299
$
1,080
Other fee revenues
39
36
36
43
154
46
63
69
80
258
Nonregulated commodity consideration
4
4
6
6
20
5
3
1
3
12
Product sales:
NGL sales from gas processing
4
5
6
5
20
5
3
—
3
11
Marketing sales
89
65
57
35
246
37
28
26
30
121
Tracked product sales
5
5
6
5
21
5
6
4
3
18
Total revenues
330
311
322
320
1,283
328
370
384
418
1,500
Segment costs and expenses:
NGL cost of goods sold
4
5
6
5
20
5
3
—
4
12
Marketing cost of goods sold
90
65
57
36
248
37
29
26
30
122
Tracked cost of goods sold
5
7
6
3
21
5
6
3
4
18
Processing commodity expenses
2
2
3
2
9
3
2
1
2
8
Operating and administrative costs
85
91
96
108
380
97
130
120
122
469
Other segment costs and expenses
2
1
4
5
12
4
—
(3
)
—
1
Impairment of certain assets
—
—
—
—
—
—
—
—
10
10
Total segment costs and expenses
188
171
172
159
690
151
170
147
172
640
Proportional Modified EBITDA of
equity-method investments
108
115
131
139
493
122
103
108
121
454
Modified EBITDA
250
255
281
300
1,086
299
303
345
367
1,314
Adjustments
—
—
—
4
4
3
16
(2
)
10
27
Adjusted EBITDA
$
250
$
255
$
281
$
304
$
1,090
$
302
$
319
$
343
$
377
$
1,341
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
4.33
4.41
4.24
Gathering volumes (Bcf per day) -
Non-consolidated (2)
3.82
3.59
3.73
3.89
3.76
4.27
4.08
4.35
4.47
4.29
Plant inlet natural gas volumes (Bcf per
day)
0.49
0.55
0.52
0.52
0.52
0.63
1.04
1.16
1.33
1.04
Ethane equity sales (Mbbls/d)
1.33
3.17
2.74
2.80
2.52
2.73
1.83
1.94
1.05
1.89
Non-ethane equity sales (Mbbls/d)
0.79
1.09
1.49
1.28
1.16
1.21
1.09
0.67
0.83
0.96
NGL equity sales (Mbbls/d)
2.12
4.26
4.23
4.08
3.68
3.94
2.92
2.61
1.88
2.85
Ethane production (Mbbls/d)
23
27
26
20
24
22
24
29
37
28
Non-ethane production (Mbbls/d)
21
21
23
22
22
22
34
63
69
48
NGL production (Mbbls/d)
44
48
49
42
46
44
58
92
106
76
(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.
West
(UNAUDITED)
2018
2019
(Dollars in millions)
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
Revenues:
Service revenues:
Nonregulated gathering & processing
fee-based revenue
$
386
$
398
$
387
$
335
$
1,506
$
319
$
331
$
282
$
276
$
1,208
Regulated transportation revenue
109
104
106
110
429
110
104
107
111
432
Other fee revenues
36
32
40
41
149
44
42
44
41
171
Tracked service revenues
—
1
—
—
1
—
1
—
1
2
Nonregulated commodity consideration
82
78
97
64
321
46
40
30
34
150
Product sales:
NGL sales from gas processing
85
76
90
71
322
48
41
31
34
154
Marketing sales
415
462
613
569
2,059
422
385
352
453
1,612
Other sales
14
12
18
5
49
5
5
2
2
14
Tracked product sales
16
10
11
(19
)
18
4
3
4
6
17
Total revenues
1,143
1,173
1,362
1,176
4,854
998
952
852
958
3,760
Segment costs and expenses:
NGL cost of goods sold
85
81
101
66
333
49
41
32
36
158
Marketing cost of goods sold
415
459
603
585
2,062
419
388
345
437
1,589
Other cost of goods sold
10
7
14
4
35
4
4
—
2
10
Tracked cost of goods sold
16
10
12
(20
)
18
3
4
5
5
17
Processing commodity expenses
30
20
26
40
116
31
19
13
16
79
Operating and administrative costs
193
215
200
166
774
166
180
166
159
671
Tracked operating and administrative
costs
—
1
—
—
1
—
1
—
—
1
Other segment costs and expenses
6
10
19
15
50
6
1
9
—
16
Impairment of certain assets
—
—
—
1,849
1,849
12
64
—
24
100
Gain on sale of certain assets and
businesses
—
—
—
(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
570
679
2,643
Proportional Modified EBITDA of
equity-method investments
18
19
25
32
94
26
28
29
32
115
Modified EBITDA
413
389
412
(906
)
308
332
278
311
311
1,232
Adjustments
(7
)
—
12
1,264
1,269
14
78
2
25
119
Adjusted EBITDA
$
406
$
389
$
424
$
358
$
1,577
$
346
$
356
$
313
$
336
$
1,351
NGL margin
$
52
$
53
$
60
$
29
$
194
$
14
$
21
$
16
$
16
$
67
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
3.61
3.51
3.52
Gathering volumes (Bcf per day) -
Non-consolidated (2)
—
—
0.15
0.16
0.08
0.17
0.15
0.21
0.27
0.20
Plant inlet natural gas volumes (Bcf per
day) - Consolidated (1)
2.16
2.12
2.11
1.65
2.01
1.41
1.52
1.56
1.44
1.48
Plant inlet natural gas volumes (Bcf per
day) - Non-consolidated (2)
—
—
0.14
0.17
0.08
0.17
0.14
0.21
0.26
0.08
Ethane equity sales (Mbbls/d)
19.01
10.23
12.19
16.40
14.44
14.63
14.59
3.32
5.17
9.38
Non-ethane equity sales (Mbbls/d)
19.83
18.80
19.48
14.40
18.12
12.59
13.54
14.02
11.95
13.03
NGL equity sales (Mbbls/d)
38.84
29.03
31.67
30.80
32.56
27.22
28.13
17.34
17.12
22.41
Ethane margin ($/gallon)
$
.01
$
.07
$
.18
$
.02
$
.06
$
(.03
)
$
(.03
)
$
(.06
)
$
(.10
)
$
(.04
)
Non-ethane margin ($/gallon)
$
.69
$
.71
$
.69
$
.49
$
.65
$
.34
$
.42
$
.32
$
.37
$
.36
NGL margin ($/gallon)
$
.35
$
.48
$
.49
$
.24
$
.39
$
.14
$
.19
$
.25
$
.23
$
.19
Ethane production (Mbbls/d) - Consolidated
(1)
31
26
28
29
28
29
22
9
11
18
Ethane production (Mbbls/d) -
Non-consolidated (2)
—
—
—
1
—
1
—
2
3
1
Non-ethane production (Mbbls/d) -
Consolidated (1)
62
61
59
41
55
33
37
39
35
36
Non-ethane production (Mbbls/d) -
Non-consolidated (2)
—
—
5
5
3
6
1
16
19
11
NGL production (Mbbls/d)
93
87
92
76
86
69
60
66
68
66
NGL and Crude Transportation volumes
(Mbbls) (3)
21,263
21,334
22,105
23,049
87,751
22,848
24,465
22,972
21,910
92,195
Northwest Pipeline LLC
Throughput (Tbtu)
226.1
188.1
193.5
212.3
820.0
243.5
184.6
179.2
248.8
856.1
Avg. daily transportation volumes
(Tbtu)
2.5
2.1
2.1
2.3
2.2
2.7
2.0
1.9
2.7
2.3
Avg. daily firm reserved capacity
(Tbtu)
3.1
3.1
3.1
3.1
3.1
3.1
3.0
3.0
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.
Capital Expenditures and
Investments
(UNAUDITED)
2018
2019
(Dollars in millions)
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
Capital expenditures:
Atlantic-Gulf
$
764
$
746
$
549
$
359
$
2,418
$
193
$
234
$
497
$
202
$
1,126
Northeast G&P
114
104
114
139
471
152
177
131
74
534
West
69
74
96
93
332
69
80
153
126
428
Other
10
9
10
6
35
8
6
5
2
21
Total (1)
$
957
$
933
$
769
$
597
$
3,256
$
422
$
497
$
786
$
404
$
2,109
Purchases of investments:
Atlantic-Gulf
$
1
$
—
$
5
$
—
$
6
$
—
$
12
$
3
$
1
$
16
Northeast G&P
20
70
114
58
262
47
61
34
63
205
West
—
—
593
271
864
52
70
82
28
232
Total
$
21
$
70
$
712
$
329
$
1,132
$
99
$
143
$
119
$
92
$
453
Summary:
Atlantic-Gulf
$
765
$
746
$
554
$
359
$
2,424
$
193
$
246
$
500
$
203
$
1,142
Northeast G&P
134
174
228
197
733
199
238
165
137
739
West
69
74
689
364
1,196
121
150
235
154
660
Other
10
9
10
6
35
8
6
5
2
21
Total
$
978
$
1,003
$
1,481
$
926
$
4,388
$
521
$
640
$
905
$
496
$
2,562
Capital investments:
Increases to property, plant, and
equipment
$
934
$
930
$
618
$
539
$
3,021
$
418
$
559
$
730
$
316
$
2,023
Purchases of businesses, net of cash
acquired
—
—
—
—
—
727
—
1
—
728
Purchases of investments
21
70
712
329
1,132
99
143
119
92
453
Total
$
955
$
1,000
$
1,330
$
868
$
4,153
$
1,244
$
702
$
850
$
408
$
3,204
(1) Increases to property, plant, and
equipment
$
934
$
930
$
618
$
539
$
3,021
$
418
$
559
$
730
$
316
$
2,023
Changes in related accounts payable and
accrued liabilities
23
3
151
58
235
4
(62
)
56
88
86
Capital expenditures
$
957
$
933
$
769
$
597
$
3,256
$
422
$
497
$
786
$
404
$
2,109
Contributions from noncontrolling
interests
$
3
$
8
$
2
$
2
$
15
$
4
$
28
$
—
$
4
$
36
Contributions in aid of construction
$
190
$
149
$
56
$
16
$
411
$
10
$
8
$
7
$
27
$
52
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
$
—
$
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)
2018
2019
(Dollars in millions, except per-share
amounts)
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
Income (loss) from continuing
operations attributable to The Williams Companies, Inc. available
to common stockholders
$
152
$
135
$
129
$
(572
)
$
(156
)
$
194
$
310
$
220
$
138
$
862
Income (loss) from continuing
operations - diluted earnings (loss) per common share (1)
$
.18
$
.16
$
.13
$
(.47
)
$
(.16
)
$
.16
$
.26
$
.18
$
.11
$
.71
Adjustments:
Atlantic-Gulf
Constitution Pipeline project development
costs
$
2
$
1
$
1
$
—
$
4
$
—
$
1
$
1
$
1
$
3
Impairment of certain assets (2)
—
—
—
—
—
—
—
—
354
354
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
—
1
16
Gain on sale of certain Gulf Coast
pipeline assets
—
—
—
(81
)
(81
)
—
—
—
—
—
Gain on asset retirement
—
—
(10
)
(2
)
(12
)
—
—
—
—
—
Severance and related costs
—
—
—
—
—
—
19
11
2
32
Total Atlantic-Gulf adjustments
15
(19
)
(12
)
(76
)
(92
)
—
35
12
358
405
Northeast
G&P
Expenses associated with new venture
—
—
—
—
—
3
6
1
—
10
Settlement charge from pension early
payout program
—
—
—
4
4
—
—
—
—
—
Impairment of certain assets
—
—
—
—
—
—
—
—
10
10
Severance and related costs
—
—
—
—
—
—
10
(3
)
—
7
Total Northeast G&P adjustments
—
—
—
4
4
3
16
(2
)
10
27
West
Impairment of certain assets
—
—
—
1,849
1,849
12
64
—
24
100
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
2
1
17
Total West adjustments
(7
)
—
12
1,264
1,269
14
78
2
25
119
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
—
—
—
—
—
Accrual for loss contingencies associated
with former operations
—
—
—
—
—
—
—
9
(5
)
4
Severance and related costs
—
—
—
—
—
—
—
—
1
1
Total Other adjustments
7
71
5
(14
)
69
12
—
9
(4
)
17
Adjustments included in Modified
EBITDA
15
52
5
1,178
1,250
29
129
21
389
568
Adjustments below
Modified EBITDA
Gain on deconsolidation of Jackalope
interest
—
(62
)
—
—
(62
)
—
—
—
—
—
Gain on deconsolidation of certain Permian
assets
—
—
—
(141
)
(141
)
2
—
—
—
2
Loss on deconsolidation of
Constitution
—
—
—
—
—
—
—
—
27
27
Impairment of equity-method
investments
—
—
—
32
32
74
(2
)
114
—
186
Gain on sale of equity-method
investments
—
—
—
—
—
—
(122
)
—
—
(122
)
Allocation of adjustments to
noncontrolling interests
(5
)
21
—
—
16
—
(1
)
—
(210
)
(211
)
(5
)
(41
)
—
(109
)
(155
)
76
(125
)
114
(183
)
(118
)
Total adjustments
10
11
5
1,069
1,095
105
4
135
206
450
Less tax effect for above items
(3
)
(3
)
(1
)
(267
)
(274
)
(26
)
(1
)
(34
)
(51
)
(112
)
Adjustments for tax-related items (3)
—
—
110
—
110
—
—
—
—
—
Adjusted income from continuing
operations available to common stockholders
$
159
$
143
$
243
$
230
$
775
$
273
$
313
$
321
$
293
$
1,200
Adjusted income from continuing
operations - diluted earnings per common share (1)
$
.19
$
.17
$
.24
$
.19
$
.79
$
.22
$
.26
$
.26
$
.24
$
.99
Weighted-average shares - diluted
(thousands)
830,197
830,107
1,026,504
1,212,822
976,097
1,213,592
1,214,065
1,214,165
1,214,212
1,214,011
(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 is reflected below in Allocation of adjustments to
noncontrolling interests.
(3) 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
3rd Qtr
4th 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
$
242
$
(66
)
$
714
Provision (benefit) for income taxes
55
52
190
(159
)
138
69
98
77
91
335
Interest expense
273
275
270
294
1,112
296
296
296
298
1,186
Equity (earnings) losses
(82
)
(92
)
(105
)
(117
)
(396
)
(80
)
(87
)
(93
)
(115
)
(375
)
Other investing (income) loss - net
(4
)
(68
)
(2
)
(113
)
(187
)
73
(126
)
107
25
79
Proportional Modified EBITDA of
equity-method investments
169
178
205
218
770
190
175
181
200
746
Depreciation and amortization expenses
431
434
425
435
1,725
416
424
435
439
1,714
Accretion for asset retirement obligations
associated with nonregulated operations
8
10
8
7
33
9
8
8
8
33
(Income) loss from discontinued
operations, net of tax
—
—
—
—
—
—
—
—
15
15
Modified EBITDA
1,120
1,058
1,191
19
3,388
1,187
1,112
1,253
895
4,447
EBITDA adjustments
15
52
5
1,178
1,250
29
129
21
389
568
Adjusted EBITDA
1,135
1,110
1,196
1,197
4,638
1,216
1,241
1,274
1,284
5,015
Maintenance capital expenditures (1)
(110
)
(160
)
(138
)
(122
)
(530
)
(93
)
(130
)
(128
)
(113
)
(464
)
Preferred dividends
—
—
—
(1
)
(1
)
(1
)
—
(1
)
(1
)
(3
)
Net interest expense - cash portion
(2)
(276
)
(279
)
(274
)
(299
)
(1,128
)
(304
)
(302
)
(301
)
(306
)
(1,213
)
Cash taxes
(1
)
(10
)
(1
)
1
(11
)
3
85
(2
)
—
86
Income attributable to noncontrolling
interests (3)
(25
)
(24
)
(19
)
(28
)
(96
)
Dividends and distributions paid to
noncontrolling interests
(41
)
(27
)
(20
)
(36
)
(124
)
Distributable cash flow
$
723
$
637
$
764
$
748
$
2,872
$
780
$
867
$
822
$
828
$
3,297
Total cash distributed (4)
$
438
$
443
$
412
$
411
$
1,704
$
460
$
461
$
461
$
460
$
1,842
Coverage ratios:
Distributable cash flow divided by Total
cash distributed
1.65
1.44
1.85
1.82
1.69
1.70
1.88
1.78
1.80
1.79
Net income (loss) divided by Total cash
distributed
0.62
0.61
0.49
(1.33
)
0.11
0.47
0.70
0.52
(0.14
)
0.39
(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
3rd Qtr
4th Qtr
Year
Net income (loss)
$
270
$
269
$
200
$
(546
)
$
193
$
214
$
324
$
242
$
(66
)
$
714
Provision (benefit) for income taxes
55
52
190
(159
)
138
69
98
77
91
335
Interest expense
273
275
270
294
1,112
296
296
296
298
1,186
Equity (earnings) losses
(82
)
(92
)
(105
)
(117
)
(396
)
(80
)
(87
)
(93
)
(115
)
(375
)
Other investing (income) loss - net
(4
)
(68
)
(2
)
(113
)
(187
)
73
(126
)
107
25
79
Proportional Modified EBITDA of
equity-method investments
169
178
205
218
770
190
175
181
200
746
Depreciation and amortization expenses
431
434
425
435
1,725
416
424
435
439
1,714
Accretion expense associated with asset
retirement obligations for nonregulated operations
8
10
8
7
33
9
8
8
8
33
(Income) loss from discontinued
operations, net of tax
—
—
—
—
—
—
—
—
15
15
Modified EBITDA
$
1,120
$
1,058
$
1,191
$
19
$
3,388
$
1,187
$
1,112
$
1,253
$
895
$
4,447
Atlantic-Gulf
$
451
$
475
$
492
$
605
$
2,023
$
560
$
524
$
599
$
212
$
1,895
Northeast G&P
250
255
281
300
1,086
299
303
345
367
1,314
West
413
389
412
(906
)
308
332
278
311
311
1,232
Other
6
(61
)
6
20
(29
)
(4
)
7
(2
)
5
6
Total Modified EBITDA
$
1,120
$
1,058
$
1,191
$
19
$
3,388
$
1,187
$
1,112
$
1,253
$
895
$
4,447
Adjustments included in Modified EBITDA
(1):
Atlantic-Gulf
$
15
$
(19
)
$
(12
)
$
(76
)
$
(92
)
$
—
$
35
$
12
$
358
$
405
Northeast G&P
—
—
—
4
4
3
16
(2
)
10
27
West
(7
)
—
12
1,264
1,269
14
78
2
25
119
Other
7
71
5
(14
)
69
12
—
9
(4
)
17
Total Adjustments included in Modified
EBITDA
$
15
$
52
$
5
$
1,178
$
1,250
$
29
$
129
$
21
$
389
$
568
Adjusted EBITDA:
Atlantic-Gulf
$
466
$
456
$
480
$
529
$
1,931
$
560
$
559
$
611
$
570
$
2,300
Northeast G&P
250
255
281
304
1,090
302
319
343
377
1,341
West
406
389
424
358
1,577
346
356
313
336
1,351
Other
13
10
11
6
40
8
7
7
1
23
Total Adjusted EBITDA
$
1,135
$
1,110
$
1,196
$
1,197
$
4,638
$
1,216
$
1,241
$
1,274
$
1,284
$
5,015
(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)
$
1,200
$
1,350
$
1,500
Provision (benefit) for income taxes
450
Interest expense
1,180
Equity (earnings) losses
(450
)
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
$
4,950
$
5,100
$
5,250
EBITDA Adjustments
—
Adjusted EBITDA
$
4,950
$
5,100
$
5,250
Net interest expense - cash portion
(1)
(1,215
)
Maintenance capital expenditures (1)
(550
)
(500
)
(450
)
Cash taxes
30
Dividends and distributions paid to
noncontrolling interests and other
(165
)
Distributable cash flow (DCF)
$
3,050
$
3,250
$
3,450
--Distributable cash flow per share
(2)
$
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) Includes proportionate share of
equity-method investments.
(2) Distributable cash flow / diluted
weighted-average common shares of 1,218 million in 2020.
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)
$
1,200
$
1,350
$
1,500
Less: Net income (loss) attributable to
noncontrolling interests & preferred dividends
40
Net income (loss) attributable to The
Williams Companies, Inc. available to common stockholders
1,160
1,310
1,460
Adjustments:
Adjustments included in Modified
EBITDA
—
Adjustments below Modified EBITDA
—
Total adjustments
—
Less tax effect for above items
—
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
Forward-Looking Statements
The reports, filings, and other public announcements of 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.
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 as discussed below. 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 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 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 impact of operational and developmental hazards and
unforeseen interruptions;
- 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;
- 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.
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 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. These factors are described in the following section.
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200219005930/en/
MEDIA CONTACT: media@williams.com (800) 945-8723
INVESTOR CONTACTS: Brett Krieg (918) 573-4614
Grace Scott (918) 573-1092
Williams Companies (NYSE:WMB)
Historical Stock Chart
From Mar 2024 to Apr 2024
Williams Companies (NYSE:WMB)
Historical Stock Chart
From Apr 2023 to Apr 2024