![](/cdn/assets/images/search/clock.png)
We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Williams Companies Inc | NYSE:WMB | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-0.55 | -1.32% | 40.97 | 41.48 | 41.02 | 41.38 | 3,602,348 | 01:00:00 |
Williams (NYSE: WMB) today announced its unaudited financial results for the three months ended March 31, 2024.
Business continues to outperform; solid execution on accretive acquisitions and organic growth driving immediate returns
Recent acquisitions and large roster of projects in execution building long-term value
CEO Perspective
Alan Armstrong, president and chief executive officer, made the following comments:
“Our 8 percent higher Adjusted EBITDA was driven by the continued outperformance of our transmission, storage and gathering businesses, which delivered 13 percent higher Adjusted EBITDA compared to the same period last year. Contracted transmission capacity achieved another record in the first quarter and our Transco projects recently placed into service contributed additional fee-based revenues, as did our immediately accretive acquisitions, including the Gulf Coast storage portfolio that we closed in the quarter.
“Crisp execution by our teams in both integrating newly acquired assets and building large-scale organic projects has us on track to be in the top half of our original 2024 guidance range. As our natural gas-focused strategy continues to gain momentum, we are successfully executing a full slate of high return growth projects, with new regulatory milestones reached on seven of our FERC-regulated expansion projects so far this year and progressing on a healthy backlog of expansion opportunities to serve accelerating demand for natural gas.
Armstrong added, “Our track record of generating predictable, growing earnings in all market cycles underscores the value of Williams as a resilient, long-term investment with a strong dividend. We’ve built a business positioned for the future, and we’re leveraging our existing infrastructure and project development capabilities to serve rising domestic and global security needs, while lowering emissions and creating sustainable value for our shareholders.”
Williams Summary Financial Information
1Q
Amounts in millions, except ratios and per-share amounts. Per share amounts are reported on a diluted basis. Net income amounts are from continuing operations attributable to The Williams Companies, Inc. available to common stockholders.
2024
2023
GAAP Measures
Net Income
$
631
$
926
Net Income Per Share
$
0.52
$
0.76
Cash Flow From Operations
$
1,234
$
1,514
Non-GAAP Measures (1)
Adjusted EBITDA
$
1,934
$
1,795
Adjusted Net Income
$
719
$
684
Adjusted Earnings Per Share
$
0.59
$
0.56
Available Funds from Operations
$
1,507
$
1,445
Dividend Coverage Ratio
2.60x
2.65x
Other
Debt-to-Adjusted EBITDA at Quarter End (2)
3.79x
3.57x
Capital Investments (Excluding Acquisitions) (3) (4)
$
563
$
525
(1) Schedules reconciling Adjusted Net Income, Adjusted EBITDA, Available Funds from Operations and Dividend 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) 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 include increases to property, plant, and equipment (growth & maintenance capital), purchases of and contributions to equity-method investments and purchases of other long-term investments.
(4) First-quarter 2024 capital excludes $1.851 billion for the acquisition of the Gulf Coast Storage assets, which closed in January 2024. First-quarter 2023 capital excludes $1.056 billion for the acquisition of MountainWest, which closed in February 2023.
GAAP Measures
First-quarter 2024 net income decreased by $295 million compared to the prior year reflecting an unfavorable change of $419 million in net unrealized gains/losses on commodity derivatives, higher net interest expense from recent debt issuances and retirements, as well as higher operating costs, depreciation and interest expense resulting from recent acquisitions. These unfavorable changes were partially offset by a $211 million increase in service revenues driven by acquisitions and expansion projects. The tax provision decreased primarily due to lower pretax income.
First-quarter 2024 cash flow from operations decreased compared to the prior year primarily due to unfavorable net changes in both working capital and derivative collateral requirements.
Non-GAAP Measures
First-quarter 2024 Adjusted EBITDA increased by $139 million over the prior year, driven by the previously described favorable net contributions from acquisitions and expansion projects.
First-quarter 2024 Adjusted Net Income improved by $35 million over the prior year, driven by the previously described impacts to net income, adjusted primarily to remove the effects of net unrealized gains/losses on commodity derivatives and the related income tax effects.
First-quarter Available Funds From Operations (AFFO) increased by $62 million compared to the prior year primarily due to the change in operating results exclusive of non-cash items.
Business Segment Results & Form 10-Q
Williams' operations are comprised of the following reportable segments: Transmission & Gulf of Mexico, Northeast G&P, West and Gas & NGL Marketing Services, as well as Other. For more information, see the company's first-quarter 2024 Form 10-Q.
First Quarter
Amounts in millions
Modified EBITDA
Adjusted EBITDA
1Q 2024
1Q 2023
Change
1Q 2024
1Q 2023
Change
Transmission & Gulf of Mexico
$
829
$
715
$
114
$
839
$
728
$
111
Northeast G&P
504
470
34
504
470
34
West
327
304
23
328
286
42
Gas & NGL Marketing Services
101
567
(466
)
189
231
(42
)
Other
76
74
2
74
80
(6
)
Total
$
1,837
$
2,130
$
(293
)
$
1,934
$
1,795
$
139
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
First-quarter 2024 Modified and Adjusted EBITDA improved compared to the prior year driven by favorable net contributions from the Gulf Coast Storage and MountainWest acquisitions and the Regional Energy Access expansion project. Modified EBITDA for both periods was impacted by one-time acquisition costs, which are excluded from Adjusted EBITDA.
Northeast G&P
First-quarter 2024 Modified and Adjusted EBITDA increased over the prior year driven by higher rates and volumes at Susquehanna Supply Hub, higher rates at Cardinal, and higher contribution from our Aux Sable investment, partially offset by lower volumes at Ohio Valley Midstream.
West
First-quarter 2024 Modified and Adjusted EBITDA increased compared to the prior year benefiting from the DJ Basin Acquisitions and improved commodity margins reflecting favorable changes in shrink prices related to the absence of a short-term gas price spike at Opal in 2023, partially offset by lower realized gains on natural gas hedges. Modified EBITDA was also impacted by the absence of a 2023 favorable contract settlement, which is excluded from Adjusted EBITDA.
Gas & NGL Marketing Services
First-quarter 2024 Modified EBITDA decreased from the prior year primarily reflecting lower commodity marketing margins and a $427 million net unfavorable change in unrealized gains/losses on commodity derivatives, which is excluded from Adjusted EBITDA.
2024 Financial Guidance
After our strong first-quarter performance, Williams expects Adjusted EBITDA at the top half of its 2024 guidance range of $6.8 billion and $7.1 billion. The company continues to expect 2024 growth capex between $1.45 billion and $1.75 billion and maintenance capex between $1.1 billion and $1.3 billion, which includes capital of $350 million for emissions reduction and modernization initiatives. For 2025, the company continues to expect Adjusted EBITDA between $7.2 billion and $7.6 billion with growth capex between $1.65 billion and $1.95 billion and maintenance capex between $750 million and $850 million, which includes capital of $100 million based on midpoint for emissions reduction and modernization initiatives. Williams continues to anticipate a leverage ratio midpoint for 2024 of 3.85x and has increased the dividend by 6.1% on an annualized basis to $1.90 in 2024 from $1.79 in 2023.
Williams' First-Quarter 2024 Materials to be Posted Shortly; Q&A Webcast Scheduled for Tomorrow
Williams' first-quarter 2024 earnings presentation will be posted at www.williams.com. The company's first-quarter 2024 earnings conference call and webcast with analysts and investors is scheduled for Tuesday, May 7, at 9:30 a.m. Eastern Time (8:30 a.m. Central Time). Participants who wish to join the call by phone must register using the following link: https://register.vevent.com/register/BI2af82b1f777e448892c40bafefdffe05
A webcast link to the conference call will be provided on Williams' Investor Relations website. A replay of the webcast will also be available on the website for at least 90 days following the event.
About Williams
Williams (NYSE: WMB) is a trusted energy industry leader committed to safely, reliably, and responsibly meeting growing energy demand. We use our 33,000-mile pipeline infrastructure to move a third of the nation’s natural gas to where it's needed most, supplying the energy used to heat our homes, cook our food and generate low-carbon electricity. For over a century, we’ve been driven by a passion for doing things the right way. Today, our team of problem solvers is leading the charge into the clean energy future – by powering the global economy while delivering immediate emissions reductions within our natural gas network and investing in new energy technologies. Learn more at www.williams.com.
The Williams Companies, Inc.
Consolidated Statement of Income
(Unaudited)
Three Months Ended March 31,
2024
2023
(Millions, except per-share amounts)
Revenues:
Service revenues
$
1,905
$
1,694
Service revenues – commodity consideration
30
36
Product sales
845
845
Net gain (loss) from commodity derivatives
(9
)
506
Total revenues
2,771
3,081
Costs and expenses:
Product costs
526
553
Net processing commodity expenses
5
54
Operating and maintenance expenses
511
463
Depreciation and amortization expenses
548
506
Selling, general, and administrative expenses
186
176
Other (income) expense – net
(17
)
(31
)
Total costs and expenses
1,759
1,721
Operating income (loss)
1,012
1,360
Equity earnings (losses)
137
147
Other investing income (loss) – net
24
8
Interest expense
(349
)
(294
)
Other income (expense) – net
31
20
Income (loss) before income taxes
855
1,241
Less: Provision (benefit) for income taxes
193
284
Net income (loss)
662
957
Less: Net income (loss) attributable to noncontrolling interests
30
30
Net income (loss) attributable to The Williams Companies, Inc.
632
927
Less: Preferred stock dividends
1
1
Net income (loss) available to common stockholders
$
631
$
926
Basic earnings (loss) per common share:
Net income (loss) available to common stockholders
$
.52
$
.76
Weighted-average shares (thousands)
1,218,155
1,219,465
Diluted earnings (loss) per common share:
Net income (loss) available to common stockholders
$
.52
$
.76
Weighted-average shares (thousands)
1,222,222
1,225,781
The Williams Companies, Inc.
Consolidated Balance Sheet
(Unaudited)
March 31,
December 31,
2024
2023
(Millions, except per-share amounts)
ASSETS
Current assets:
Cash and cash equivalents
$
667
$
2,150
Trade accounts and other receivables (net of allowance of $3 at March 31, 2024 and December 31, 2023)
1,355
1,655
Inventories
239
274
Derivative assets
173
239
Other current assets and deferred charges
176
195
Total current assets
2,610
4,513
Investments
4,639
4,637
Property, plant and equipment
54,305
51,842
Accumulated depreciation and amortization
(17,854
)
(17,531
)
Property, plant, and equipment – net
36,451
34,311
Intangible assets – net of accumulated amortization
7,496
7,593
Regulatory assets, deferred charges, and other
1,551
1,573
Total assets
$
52,747
$
52,627
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
$
1,042
$
1,379
Derivative liabilities
75
105
Accrued and other current liabilities
1,077
1,284
Commercial paper
—
725
Long-term debt due within one year
2,787
2,337
Total current liabilities
4,981
5,830
Long-term debt
24,100
23,376
Deferred income tax liabilities
4,001
3,846
Regulatory liabilities, deferred income, and other
4,735
4,684
Contingent liabilities and commitments
Equity:
Stockholders’ equity:
Preferred stock ($1 par value; 30 million shares authorized at March 31, 2024 and December 31, 2023; 35,000 shares issued at March 31, 2024 and December 31, 2023)
35
35
Common stock ($1 par value; 1,470 million shares authorized at March 31, 2024 and December 31, 2023; 1,258 million shares issued at March 31, 2024 and 1,256 million shares issued at December 31, 2023)
1,258
1,256
Capital in excess of par value
24,564
24,578
Retained deficit
(12,238
)
(12,287
)
Accumulated other comprehensive income (loss)
10
—
Treasury stock, at cost (39 million shares at March 31, 2024 and December 31, 2023 of common stock)
(1,180
)
(1,180
)
Total stockholders’ equity
12,449
12,402
Noncontrolling interests in consolidated subsidiaries
2,481
2,489
Total equity
14,930
14,891
Total liabilities and equity
$
52,747
$
52,627
The Williams Companies, Inc.
Consolidated Statement of Cash Flows
(Unaudited)
Three Months Ended March 31,
2024
2023
(Millions)
OPERATING ACTIVITIES:
Net income (loss)
$
662
$
957
Adjustments to reconcile to net cash provided (used) by operating activities:
Depreciation and amortization
548
506
Provision (benefit) for deferred income taxes
152
283
Equity (earnings) losses
(137
)
(147
)
Distributions from equity-method investees
188
208
Net unrealized (gain) loss from commodity derivative instruments
92
(327
)
Inventory write-downs
4
18
Amortization of stock-based awards
24
17
Cash provided (used) by changes in current assets and liabilities:
Accounts receivable
314
1,269
Inventories
34
27
Other current assets and deferred charges
9
(4
)
Accounts payable
(309
)
(1,017
)
Accrued and other current liabilities
(218
)
(318
)
Changes in current and noncurrent commodity derivative assets and liabilities
(68
)
82
Other, including changes in noncurrent assets and liabilities
(61
)
(40
)
Net cash provided (used) by operating activities
1,234
1,514
FINANCING ACTIVITIES:
Proceeds from (payments of) commercial paper – net
(723
)
(352
)
Proceeds from long-term debt
2,099
1,502
Payments of long-term debt
(1,012
)
(7
)
Payments for debt issuance costs
(16
)
(8
)
Proceeds from issuance of common stock
5
3
Purchases of treasury stock
—
(74
)
Common dividends paid
(579
)
(546
)
Dividends and distributions paid to noncontrolling interests
(64
)
(54
)
Contributions from noncontrolling interests
26
3
Other – net
(17
)
(17
)
Net cash provided (used) by financing activities
(281
)
450
INVESTING ACTIVITIES:
Property, plant, and equipment:
Capital expenditures (1)
(544
)
(545
)
Dispositions - net
5
(7
)
Purchases of businesses, net of cash acquired
(1,851
)
(1,056
)
Purchases of and contributions to equity-method investments
(52
)
(39
)
Other – net
6
8
Net cash provided (used) by investing activities
(2,436
)
(1,639
)
Increase (decrease) in cash and cash equivalents
(1,483
)
325
Cash and cash equivalents at beginning of year
2,150
152
Cash and cash equivalents at end of period
$
667
$
477
(1) Increases to property, plant, and equipment
$
(509
)
$
(484
)
Changes in related accounts payable and accrued liabilities
(35
)
(61
)
Capital expenditures
$
(544
)
$
(545
)
Transmission & Gulf of Mexico
(UNAUDITED)
2023
2024
(Dollars in millions)
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
1st Qtr
Regulated interstate natural gas transportation, storage, and other revenues (1)
$
774
$
786
$
794
$
822
$
3,176
$
836
Gathering, processing, storage and transportation revenues
100
104
114
100
418
137
Other fee revenues (1)
6
8
5
4
23
12
Commodity margins
10
8
7
8
33
9
Operating and administrative costs (1)
(254
)
(254
)
(257
)
(270
)
(1,035
)
(254
)
Other segment income (expenses) - net (1)
26
31
36
26
119
43
Gain on sale of business
—
—
130
(1
)
129
—
Proportional Modified EBITDA of equity-method investments
53
48
52
52
205
46
Modified EBITDA
715
731
881
741
3,068
829
Adjustments
13
17
(127
)
11
(86
)
10
Adjusted EBITDA
$
728
$
748
$
754
$
752
$
2,982
$
839
Statistics for Operated Assets
Natural Gas Transmission (2)
Transcontinental Gas Pipe Line
Avg. daily transportation volumes (MMdth)
14.3
13.2
14.0
14.0
13.9
14.6
Avg. daily firm reserved capacity (MMdth)
19.5
19.4
19.4
19.3
19.4
20.3
Northwest Pipeline LLC
Avg. daily transportation volumes (MMdth)
3.1
2.3
2.3
2.8
2.6
3.1
Avg. daily firm reserved capacity (MMdth)
3.8
3.8
3.8
3.8
3.8
3.8
MountainWest (3)
Avg. daily transportation volumes (MMdth)
4.2
3.2
3.8
4.2
3.9
4.3
Avg. daily firm reserved capacity (MMdth)
7.8
7.5
7.5
7.9
7.7
8.4
Gulfstream - Non-consolidated
Avg. daily transportation volumes (MMdth)
1.0
1.2
1.4
1.1
1.2
1.0
Avg. daily firm reserved capacity (MMdth)
1.4
1.4
1.4
1.4
1.4
1.4
Gathering, Processing, and Crude Oil Transportation
Consolidated (4)
Gathering volumes (Bcf/d)
0.28
0.23
0.27
0.27
0.26
0.25
Plant inlet natural gas volumes (Bcf/d)
0.43
0.40
0.46
0.46
0.44
0.45
NGL production (Mbbls/d)
28
24
28
26
27
28
NGL equity sales (Mbbls/d)
7
5
6
5
6
5
Crude oil transportation volumes (Mbbls/d)
119
111
134
130
123
118
Non-consolidated (5)
Gathering volumes (Bcf/d)
0.36
0.30
0.36
0.33
0.34
0.27
Plant inlet natural gas volumes (Bcf/d)
0.36
0.30
0.36
0.33
0.34
0.27
NGL production (Mbbls/d)
28
21
30
28
27
15
NGL equity sales (Mbbls/d)
8
3
8
7
7
3
(1) Excludes certain amounts associated with revenues and operating costs for tracked or reimbursable charges.
(2) Tbtu converted to MMdth at one trillion British thermal units = one million dekatherms.
(3) Includes 100% of the volumes associated with the MountainWest Acquisition transmission assets after the purchase on February 14, 2023, including 100% of the volumes associated with the operated equity-method investment White River Hub, LLC. Average volumes were calculated over the period owned.
(4) Excludes volumes associated with equity-method investments that are not consolidated in our results.
(5) Includes 100% of the volumes associated with operated equity-method investments, including Discovery Producer Services.
Northeast G&P
(UNAUDITED)
2023
2024
(Dollars in millions)
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
1st Qtr
Gathering, processing, transportation, and fractionation revenues
$
391
$
431
$
417
$
411
$
1,650
$
411
Other fee revenues (1)
32
27
27
28
114
34
Commodity margins
5
(1
)
7
1
12
11
Operating and administrative costs (1)
(101
)
(101
)
(115
)
(107
)
(424
)
(108
)
Other segment income (expenses) - net
—
—
(1
)
(9
)
(10
)
(1
)
Proportional Modified EBITDA of equity-method investments
143
159
119
153
574
157
Modified EBITDA
470
515
454
477
1,916
504
Adjustments
—
—
31
8
39
—
Adjusted EBITDA
$
470
$
515
$
485
$
485
$
1,955
$
504
Statistics for Operated Assets
Gathering and Processing
Consolidated (2)
Gathering volumes (Bcf/d)
4.42
4.61
4.41
4.37
4.45
4.33
Plant inlet natural gas volumes (Bcf/d)
1.92
1.79
1.93
1.93
1.89
1.76
NGL production (Mbbls/d)
144
135
144
133
139
133
NGL equity sales (Mbbls/d)
1
1
—
1
1
1
Non-consolidated (3)
Gathering volumes (Bcf/d)
6.97
7.03
6.83
6.85
6.92
6.79
Plant inlet natural gas volumes (Bcf/d)
0.77
0.93
0.99
1.01
0.93
0.98
NGL production (Mbbls/d)
54
64
71
69
65
72
NGL equity sales (Mbbls/d)
4
5
4
4
4
3
(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.
(3) Includes 100% of the volumes associated with operated equity-method investments, including the Laurel Mountain Midstream partnership and Blue Racer Midstream which we operate effective January 1, 2024; and the Bradford Supply Hub and the Marcellus South Supply Hub within the Appalachia Midstream Services partnership.
West
(UNAUDITED)
2023
2024
(Dollars in millions)
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
1st Qtr
Net gathering, processing, transportation, storage, and fractionation revenues
$
382
$
373
$
371
$
397
$
1,523
$
421
Other fee revenues (1)
5
7
4
8
24
8
Commodity margins
(24
)
18
21
19
34
12
Operating and administrative costs (1)
(115
)
(122
)
(122
)
(144
)
(503
)
(139
)
Other segment income (expenses) - net
23
(7
)
(4
)
(14
)
(2
)
—
Proportional Modified EBITDA of equity-method investments
33
43
45
41
162
25
Modified EBITDA
304
312
315
307
1,238
327
Adjustments
(18
)
—
—
16
(2
)
1
Adjusted EBITDA
$
286
$
312
$
315
$
323
$
1,236
$
328
Statistics for Operated Assets
Gathering and Processing
Consolidated (2) (4)
Gathering volumes (Bcf/d) (3)
5.47
5.51
5.60
6.03
6.02
5.75
Plant inlet natural gas volumes (Bcf/d)
0.92
1.06
1.12
1.63
1.54
1.52
NGL production (Mbbls/d)
25
40
61
99
91
87
NGL equity sales (Mbbls/d)
6
16
22
14
14
6
Non-consolidated (5)
Gathering volumes (Bcf/d)
0.32
0.33
0.33
—
—
—
Plant inlet natural gas volumes (Bcf/d)
0.32
0.32
0.32
—
—
—
NGL production (Mbbls/d)
37
38
38
—
—
—
NGL and Crude Oil Transportation volumes (Mbbls/d) (6)
161
217
244
250
218
220
(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 the Cureton Acquisition gathering assets after the purchase on November 30, 2023. Average volumes were calculated over the period owned.
(4) Volumes associated with the Rocky Mountain Midstream (RMM) assets for 4th Qtr 2023 and Year 2023 are presented entirely in the Consolidated section. We acquired the remaining 50 percent of RMM on November 30, 2023.
(5) Includes 100% of the volumes associated with operated equity-method investment RMM through 3rd Qtr 2023.
(6) Includes 100% of the volumes associated with Overland Pass Pipeline Company (an operated equity-method investment), RMM (see Note 4 above) as well as volumes for our consolidated Bluestem pipeline.
Gas & NGL Marketing Services
(UNAUDITED)
2023
2024
(Dollars in millions)
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
1st Qtr
Commodity margins
$
265
$
(2
)
$
38
$
88
$
389
$
236
Other fee revenues
1
—
—
—
1
—
Net unrealized gain (loss) from derivative instruments
333
94
24
208
659
(95
)
Operating and administrative costs
(32
)
(24
)
(19
)
(24
)
(99
)
(40
)
Modified EBITDA
567
68
43
272
950
101
Adjustments
(336
)
(84
)
(27
)
(203
)
(650
)
88
Adjusted EBITDA
$
231
$
(16
)
$
16
$
69
$
300
$
189
Statistics
Product Sales Volumes
Natural Gas (Bcf/d)
7.24
6.56
7.31
7.11
7.05
7.53
NGLs (Mbbls/d)
234
239
245
173
223
170
Other
(UNAUDITED)
2023
2024
(Dollars in millions)
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
1st Qtr
Service revenues
$
3
$
5
$
4
$
4
$
16
$
4
Net realized product sales
120
97
127
145
489
113
Net unrealized gain (loss) from derivative instruments
(6
)
(11
)
(1
)
19
1
3
Operating and administrative costs
(48
)
(54
)
(58
)
(65
)
(225
)
(51
)
Other segment income (expenses) - net
5
5
10
8
28
7
Net gain from Energy Transfer litigation judgment
—
—
—
534
534
—
Proportional Modified EBITDA of equity-method investments
—
(1
)
(1
)
—
(2
)
—
Modified EBITDA
74
41
81
645
841
76
Adjustments
6
11
1
(553
)
(535
)
(2
)
Adjusted EBITDA
$
80
$
52
$
82
$
92
$
306
$
74
Statistics
Net Product Sales Volumes
Natural Gas (Bcf/d)
0.26
0.29
0.31
0.30
0.29
0.28
NGLs (Mbbls/d)
3
6
9
10
7
8
Crude Oil (Mbbls/d)
1
3
5
7
4
5
Capital Expenditures and Investments
(UNAUDITED)
2023
2024
(Dollars in millions)
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr*
Year*
1st Qtr
Capital expenditures:
Transmission & Gulf of Mexico
$
205
$
263
$
382
$
404
$
1,254
$
310
Northeast G&P
99
74
115
71
359
71
West
169
197
141
121
628
120
Other
72
76
52
75
275
43
Total (1)
$
545
$
610
$
690
$
671
$
2,516
$
544
Purchases of and contributions to equity-method investments:
Transmission & Gulf of Mexico
$
8
$
18
$
6
$
9
$
41
$
27
Northeast G&P
31
12
4
52
99
25
West
—
—
1
—
1
—
Other
—
—
—
—
—
—
Total
$
39
$
30
$
11
$
61
$
141
$
52
Summary:
Transmission & Gulf of Mexico
$
213
$
281
$
388
$
413
$
1,295
$
337
Northeast G&P
130
86
119
123
458
96
West
169
197
142
121
629
120
Other
72
76
52
75
275
43
Total
$
584
$
640
$
701
$
732
$
2,657
$
596
Capital investments:
Increases to property, plant, and equipment
$
484
$
684
$
792
$
604
$
2,564
$
509
Purchases of businesses, net of cash acquired
1,056
(3
)
(29
)
544
1,568
1,851
Purchases of and contributions to equity-method investments
39
30
11
61
141
52
Purchases of other long-term investments
2
1
2
1
6
2
Total
$
1,581
$
712
$
776
$
1,210
$
4,279
$
2,414
(1) Increases to property, plant, and equipment
$
484
$
684
$
792
$
604
$
2,564
$
509
Changes in related accounts payable and accrued liabilities
61
(74
)
(102
)
67
(48
)
35
Capital expenditures
$
545
$
610
$
690
$
671
$
2,516
$
544
Contributions from noncontrolling interests
$
3
$
15
$
—
$
—
$
18
$
26
Contributions in aid of construction
$
11
$
7
$
2
$
8
$
28
$
10
Proceeds from sale of business
$
—
$
—
$
348
$
(2
)
$
346
$
—
* Certain amounts for the fourth quarter of 2023 were revised to agree to final reported amounts.
Non-GAAP Measures
This news release and accompanying materials may include certain financial measures – adjusted EBITDA, adjusted income (“earnings”), adjusted earnings per share, available funds from operations 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, 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. Such items are excluded from net income to determine adjusted income and adjusted earnings per share. Management believes this measure provides investors meaningful insight into results from ongoing operations.
Available funds from operations (AFFO) is defined as net income (loss) excluding the effect of certain noncash items, reduced by distributions from equity-method investees, net distributions to noncontrolling interests, and preferred dividends. AFFO may also be adjusted to exclude certain items that we characterize as unrepresentative of our ongoing operations.
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 available funds from operations 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 Non-GAAP Adjusted Income
(UNAUDITED)
2023
2024
(Dollars in millions, except per-share amounts)
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
1st Qtr
Income (loss) from continuing operations attributable to The Williams Companies, Inc. available to common stockholders
$
926
$
547
$
654
$
1,146
$
3,273
$
631
Income (loss) from continuing operations - diluted earnings (loss) per common share (1)
$
.76
$
.45
$
.54
$
.94
$
2.68
$
.52
Adjustments:
Transmission & Gulf of Mexico
MountainWest acquisition and transition-related costs
$
13
$
17
$
3
$
9
$
42
$
—
Gulf Coast Storage acquisition and transition-related costs*
—
—
—
1
1
10
Gain on sale of business
—
—
(130
)
1
(129
)
—
Total Transmission & Gulf of Mexico adjustments
13
17
(127
)
11
(86
)
10
Northeast G&P
Accrual for loss contingency
—
—
—
10
10
—
Our share of accrual for loss contingency at Aux Sable Liquid Products LP
—
—
31
(2
)
29
—
Total Northeast G&P adjustments
—
—
31
8
39
—
West
Cureton acquisition and transition-related costs*
—
—
—
6
6
1
Gain from contract settlement
(18
)
—
—
—
(18
)
—
Impairment of assets held for sale
—
—
—
10
10
—
Total West adjustments
(18
)
—
—
16
(2
)
1
Gas & NGL Marketing Services
Impact of volatility on NGL linefill transactions*
(3
)
10
(3
)
5
9
(6
)
Net unrealized (gain) loss from derivative instruments
(333
)
(94
)
(24
)
(208
)
(659
)
94
Total Gas & NGL Marketing Services adjustments
(336
)
(84
)
(27
)
(203
)
(650
)
88
Other
Net unrealized (gain) loss from derivative instruments
6
11
1
(19
)
(1
)
(2
)
Net gain from Energy Transfer litigation judgment
—
—
—
(534
)
(534
)
—
Total Other adjustments
6
11
1
(553
)
(535
)
(2
)
Adjustments included in Modified EBITDA
(335
)
(56
)
(122
)
(721
)
(1,234
)
97
Adjustments below Modified EBITDA
Gain on remeasurement of RMM investment
—
—
—
(30
)
(30
)
—
Imputed interest expense on deferred consideration obligations*
—
—
—
—
—
12
Amortization of intangible assets from Sequent acquisition
15
14
15
15
59
7
15
14
15
(15
)
29
19
Total adjustments
(320
)
(42
)
(107
)
(736
)
(1,205
)
116
Less tax effect for above items
78
10
25
178
291
(28
)
Adjustments for tax-related items (2)
—
—
(25
)
—
(25
)
—
Adjusted income from continuing operations available to common stockholders
$
684
$
515
$
547
$
588
$
2,334
$
719
Adjusted income from continuing operations - diluted earnings per common share (1)
$
.56
$
.42
$
.45
$
.48
$
1.91
$
.59
Weighted-average shares - diluted (thousands)
1,225,781
1,219,915
1,220,073
1,221,894
1,221,616
1,222,222
(1) The sum of earnings per share for the quarters may not equal the total earnings per share for the year due to changes in the weighted-average number of common shares outstanding.
(2) The third quarter of 2023 includes an adjustment associated with a decrease in our estimated deferred state income tax rate.
*Amounts for the 2024 periods are included in Additional adjustments on the Reconciliation of Cash Flow from Operating Activities to Non-GAAP Available Funds from Operations (AFFO).
Reconciliation of "Net Income (Loss)" to “Modified EBITDA” and Non-GAAP “Adjusted EBITDA”
(UNAUDITED)
2023
2024
(Dollars in millions)
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
1st Qtr
Net income (loss)
$
957
$
494
$
684
$
1,168
$
3,303
$
662
Provision (benefit) for income taxes
284
175
176
370
1,005
193
Interest expense
294
306
314
322
1,236
349
Equity (earnings) losses
(147
)
(160
)
(127
)
(155
)
(589
)
(137
)
Other investing (income) loss - net
(8
)
(13
)
(24
)
(63
)
(108
)
(24
)
Proportional Modified EBITDA of equity-method investments
229
249
215
246
939
228
Depreciation and amortization expenses
506
515
521
529
2,071
548
Accretion expense associated with asset retirement obligations for nonregulated operations
15
14
14
16
59
18
(Income) loss from discontinued operations, net of tax
—
87
1
9
97
—
Modified EBITDA
$
2,130
$
1,667
$
1,774
$
2,442
$
8,013
$
1,837
Transmission & Gulf of Mexico
$
715
$
731
$
881
$
741
$
3,068
$
829
Northeast G&P
470
515
454
477
1,916
504
West
304
312
315
307
1,238
327
Gas & NGL Marketing Services
567
68
43
272
950
101
Other
74
41
81
645
841
76
Total Modified EBITDA
$
2,130
$
1,667
$
1,774
$
2,442
$
8,013
$
1,837
Adjustments (1):
Transmission & Gulf of Mexico
$
13
$
17
$
(127
)
$
11
$
(86
)
$
10
Northeast G&P
—
—
31
8
39
—
West
(18
)
—
—
16
(2
)
1
Gas & NGL Marketing Services
(336
)
(84
)
(27
)
(203
)
(650
)
88
Other
6
11
1
(553
)
(535
)
(2
)
Total Adjustments
$
(335
)
$
(56
)
$
(122
)
$
(721
)
$
(1,234
)
$
97
Adjusted EBITDA:
Transmission & Gulf of Mexico
$
728
$
748
$
754
$
752
$
2,982
$
839
Northeast G&P
470
515
485
485
1,955
504
West
286
312
315
323
1,236
328
Gas & NGL Marketing Services
231
(16
)
16
69
300
189
Other
80
52
82
92
306
74
Total Adjusted EBITDA
$
1,795
$
1,611
$
1,652
$
1,721
$
6,779
$
1,934
(1) Adjustments by segment are detailed in the "Reconciliation of Income (Loss) from Continuing Operations Attributable to The Williams Companies, Inc. to Non-GAAP Adjusted Income," which is also included in these materials.
Reconciliation of Cash Flow from Operating Activities to Non-GAAP Available Funds from Operations (AFFO)
(UNAUDITED)
2023
2024
(Dollars in millions, except coverage ratios)
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr**
Year**
1st Qtr
Net cash provided (used) by operating activities
$
1,514
$
1,377
$
1,234
$
1,813
$
5,938
$
1,234
Exclude: Cash (provided) used by changes in:
Accounts receivable
(1,269
)
(154
)
128
206
(1,089
)
(314
)
Inventories, including write-downs
(45
)
(19
)
7
14
(43
)
(38
)
Other current assets and deferred charges
4
(28
)
29
(65
)
(60
)
(9
)
Accounts payable
1,017
203
(148
)
(63
)
1,009
309
Accrued and other current liabilities
318
(246
)
42
(95
)
19
218
Changes in current and noncurrent commodity derivative assets and liabilities
(82
)
(37
)
(53
)
(28
)
(200
)
68
Other, including changes in noncurrent assets and liabilities
40
47
53
106
246
61
Preferred dividends paid
(1
)
—
(1
)
(1
)
(3
)
(1
)
Dividends and distributions paid to noncontrolling interests
(54
)
(58
)
(62
)
(39
)
(213
)
(64
)
Contributions from noncontrolling interests
3
15
—
—
18
26
Adjustment to exclude litigation-related charges in discontinued operations
—
115
1
9
125
—
Adjustment to exclude net gain from Energy Transfer litigation judgment
—
—
—
(534
)
(534
)
—
Additional Adjustments *
—
—
—
—
—
17
Available funds from operations
$
1,445
$
1,215
$
1,230
$
1,323
$
5,213
$
1,507
Common dividends paid
$
546
$
545
$
544
$
544
$
2,179
$
579
Coverage ratio:
Available funds from operations divided by Common dividends paid
2.65
2.23
2.26
2.43
2.39
2.60
* See detail on Reconciliation of Income (Loss) from Continuing Operations Attributable to The Williams Companies, Inc. to Non-GAAP Adjusted Income.
** Certain amounts for the fourth quarter of 2023 were revised to agree to final reported amounts, with no impact to previously reported AFFO for that period.
Reconciliation of Net Income (Loss) from Continuing Operations to Modified EBITDA, Non-GAAP Adjusted EBITDA and Cash Flow from Operating Activities to Non-GAAP Available Funds from Operations (AFFO)
2024 Guidance
2025 Guidance
(Dollars in millions, except per-share amounts and coverage ratio)
Low
Mid
High
Low
Mid
High
Net income (loss) from continuing operations
$
2,094
$
2,219
$
2,344
$
2,373
$
2,523
$
2,673
Provision (benefit) for income taxes
670
695
720
735
785
835
Interest expense
1,380
1,390
Equity (earnings) losses
(535
)
(610
)
Proportional Modified EBITDA of equity-method investments
895
990
Depreciation and amortization expenses and accretion for asset retirement obligations associated with nonregulated operations
2,270
2,325
Other
(6
)
(8
)
Modified EBITDA
$
6,768
$
6,918
$
7,068
$
7,195
$
7,395
$
7,595
EBITDA Adjustments
32
5
Adjusted EBITDA
$
6,800
$
6,950
$
7,100
$
7,200
$
7,400
$
7,600
Net income (loss) from continuing operations
$
2,094
$
2,219
$
2,344
$
2,373
$
2,523
$
2,673
Less: Net income (loss) attributable to noncontrolling interests and preferred dividends
115
115
Net income (loss) from continuing operations attributable to The Williams Companies, Inc. available to common stockholders
$
1,979
$
2,104
$
2,229
$
2,258
$
2,408
$
2,558
Adjustments:
Adjustments included in Modified EBITDA (1)
32
5
Adjustments below Modified EBITDA (2)
29
18
Allocation of adjustments to noncontrolling interests
—
—
Total adjustments
61
23
Less tax effect for above items
(15
)
(6
)
Adjusted income from continuing operations available to common stockholders
$
2,025
$
2,150
$
2,275
$
2,275
$
2,425
$
2,575
Adjusted income from continuing operations - diluted earnings per common share
$
1.65
$
1.76
$
1.86
$
1.85
$
1.97
$
2.10
Weighted-average shares - diluted (millions)
1,224
1,228
Available Funds from Operations (AFFO):
Net cash provided by operating activities (net of changes in working capital, changes in current and noncurrent derivative assets and liabilities, and changes in other, including changes in noncurrent assets and liabilities)
$
5,125
$
5,250
$
5,375
$
5,295
$
5,445
$
5,595
Preferred dividends paid
(3
)
(3
)
Dividends and distributions paid to noncontrolling interests
(215
)
(235
)
Contributions from noncontrolling interests
18
18
Available funds from operations (AFFO)
$
4,925
$
5,050
$
5,175
$
5,075
$
5,225
$
5,375
AFFO per common share
$
4.02
$
4.13
$
4.23
$
4.13
$
4.25
$
4.38
Common dividends paid
$
2,320
5%-7% Dividend growth
Coverage Ratio (AFFO/Common dividends paid)
2.12x
2.18x
2.23x
~2.12x
(1) Adjustments reflect transaction and transition costs of acquisitions
(2) Adjustments reflect amortization of intangible assets from Sequent acquisition
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, outcomes 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:
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:
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, 2023, as filed with the SEC on February 21, 2024, and as may be supplemented by disclosures in Part II, Item 1A. Risk Factors in subsequent Quarterly Reports on Form 10-Q.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240506608318/en/
MEDIA CONTACT: media@williams.com (800) 945-8723 INVESTOR CONTACTS: Danilo Juvane (918) 573-5075 Caroline Sardella (918) 230-9992
1 Year Williams Companies Chart |
1 Month Williams Companies Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions