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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 | |
---|---|---|---|---|---|---|---|---|
0.13 | 0.34% | 38.67 | 38.89 | 38.425 | 38.67 | 4,420,828 | 01:00:00 |
Williams (NYSE: WMB) today announced its unaudited financial results for the three and six months ended June 30, 2021.
Results exceed expectations and trend toward higher end of previously increased 2021 financial guidance
Recently executed strategic transactions to drive optimization, synergies and volume growth across portfolio of assets
CEO Perspective
Alan Armstrong, president and chief executive officer, made the following comments:
“Williams once again posted another strong quarter of results with Adjusted EBITDA up 6 percent, reflecting record quarterly gas gathering volumes and the successful execution of several critical Transco expansion projects. Our natural gas focused strategy continues to deliver, driven by our connections in the best supply areas and evidenced in another quarter of growth in our gathering volumes despite flat production nationwide. As we move into the second half of the year, we are trending to the higher end of our previously increased 2021 financial guidance and are on track to bring into full service the Leidy South Transco expansion ahead of schedule and in time for the winter heating season.
“Our strategy of connecting the best supplies of affordable, reliable and clean natural gas with growing customer demand continues to produce sustainable growth for our shareholders. Our recent acquisition of Sequent is designed to enhance this strategy and accelerate our natural gas pipeline and storage optimization activities. In addition, our upstream joint ventures with Crowheart in the Wamsutter and GeoSouthern in the Haynesville enhance the value of our midstream infrastructure in those regions, while setting the stage for future clean energy development."
Armstrong added, “As detailed in our latest sustainability report published last week, we continue to capture near-term emissions reduction opportunities while driving a variety of other ESG initiatives focused on building strong communities, environmental stewardship and workforce diversity. I appreciate our employees for their commitment to sustainable operations as we meet today’s growing need for natural gas and leverage our leading infrastructure for additional low-carbon solutions.”
Williams Summary Financial Information
2Q
Year to Date
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.
2021
2020
2021
2020
GAAP Measures
Net Income (Loss)
$304
$303
$729
($215)
Net Income (Loss) Per Share
$0.25
$0.25
$0.60
($0.18)
Cash Flow From Operations
$1,057
$1,143
$1,972
$1,930
Non-GAAP Measures (1)
Adjusted EBITDA
$1,317
$1,240
$2,732
$2,502
Adjusted Income
$327
$305
$756
$618
Adjusted Income Per Share
$0.27
$0.25
$0.62
$0.51
Available Funds from Operations
$919
$872
$1,948
$1,792
Dividend Coverage Ratio
1.85
x
1.79
x
1.96
x
1.85
x
Other
Debt-to-Adjusted EBITDA at Quarter End (2)
4.13x
4.31
x
Capital Investments (3)
$460
$363
$737
$647
(1) Schedules reconciling Adjusted 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 includes increases to property, plant, and equipment, purchases of businesses, net of cash acquired, and purchases of and contributions to equity-method investments.
GAAP Measures
Non-GAAP Measures
Business Segment Results & Form 10-Q
Williams' operations are comprised of the following reportable segments: Transmission & Gulf of Mexico, Northeast G&P, West and Other. For more information, see the company's second-quarter 2021 Form 10-Q.
Second Quarter
Year to Date
Amounts in millions
Modified EBITDA
Adjusted EBITDA
Modified EBITDA
Adjusted EBITDA
2Q 2021
2Q 2020
Change
2Q 2021
2Q 2020
Change
2021
2020
Change
2021
2020
Change
Transmission & Gulf of Mexico
$646
$615
$31
$648
$617
$31
$1,306
$1,277
$29
$1,308
$1,286
$22
Northeast G&P
409
370
39
409
363
46
811
739
72
811
733
78
West
231
253
(22
)
231
252
(21
)
546
468
78
546
468
78
Other
20
8
12
29
8
21
53
15
38
67
15
52
Totals
$1,306
$1,246
$60
$1,317
$1,240
$77
$2,716
$2,499
$217
$2,732
$2,502
$230
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
Northeast G&P
West
Other
2021 Financial Guidance
The company expects 2021 Adjusted EBITDA at the higher end of the previously increased guidance range of $5.2 billion to $5.4 billion and Available Funds from Operations between $3.7 billion and $3.9 billion. Moreover, the leverage ratio is expected to be less than the 4.2x midpoint for year-end 2021; growth capex is reaffirmed at $1 billion to $1.2 billion. Importantly, Williams expects to generate positive free cash flow (after capital expenditures and dividends), allowing it to retain financial flexibility.
Williams' Second-Quarter 2021 Materials to be Posted Shortly; Q&A Webcast Scheduled for Tomorrow
Williams' second-quarter 2021 earnings presentation will be posted at www.williams.com. The company’s second-quarter 2021 earnings conference call and webcast with analysts and investors is scheduled for Tuesday, Aug. 3, 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: http://www.directeventreg.com/registration/event/9217437
A webcast link to the conference call is available at www.williams.com. A replay of the webcast will be available on the website for at least 90 days following the event.
About Williams
Williams (NYSE: WMB) is committed to being the leader in providing infrastructure that safely delivers natural gas products to reliably fuel the clean energy economy. Headquartered in Tulsa, Oklahoma, Williams is an industry-leading, investment grade C-Corp with operations across the natural gas value chain including gathering, processing, interstate transportation and storage of natural gas and natural gas liquids. With major positions in top U.S. supply basins, Williams connects the best supplies with the growing demand for clean energy. Williams owns and operates more than 30,000 miles of pipelines system wide – including Transco, the nation’s largest volume and fastest growing pipeline – and handles approximately 30 percent of the natural gas in the United States that is used every day for clean-power generation, heating and industrial use. www.williams.com
The Williams Companies, Inc.
Consolidated Statement of Operations
(Unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2021
2020
2021
2020
(Millions, except per-share amounts)
Revenues:
Service revenues
$
1,460
$
1,446
$
2,912
$
2,920
Service revenues – commodity consideration
51
25
100
53
Product sales
772
310
1,883
721
Total revenues
2,283
1,781
4,895
3,694
Costs and expenses:
Product costs
697
271
1,629
667
Processing commodity expenses
18
15
39
28
Operating and maintenance expenses
379
320
739
657
Depreciation and amortization expenses
463
430
901
859
Selling, general, and administrative expenses
114
127
237
240
Impairment of goodwill
—
—
—
187
Other (income) expense – net
12
6
11
13
Total costs and expenses
1,683
1,169
3,556
2,651
Operating income (loss)
600
612
1,339
1,043
Equity earnings (losses)
135
108
266
130
Impairment of equity-method investments
—
—
—
(938
)
Other investing income (loss) – net
2
1
4
4
Interest incurred
(301
)
(299
)
(597
)
(600
)
Interest capitalized
3
5
5
10
Other income (expense) – net
2
5
—
9
Income (loss) before income taxes
441
432
1,017
(342
)
Less: Provision (benefit) for income taxes
119
117
260
(87
)
Net income (loss)
322
315
757
(255
)
Less: Net income (loss) attributable to noncontrolling interests
18
12
27
(41
)
Net income (loss) attributable to The Williams Companies, Inc.
304
303
730
(214
)
Less: Preferred stock dividends
—
—
1
1
Net income (loss) available to common stockholders
$
304
$
303
$
729
$
(215
)
Basic earnings (loss) per common share:
Net income (loss)
$
.25
$
.25
$
.60
$
(.18
)
Weighted-average shares (thousands)
1,215,250
1,213,601
1,214,950
1,213,310
Diluted earnings (loss) per common share:
Net income (loss)
$
.25
$
.25
$
.60
$
(.18
)
Weighted-average shares (thousands)
1,217,476
1,214,581
1,217,344
1,213,310
The Williams Companies, Inc.
Consolidated Balance Sheet
(Unaudited)
June 30, 2021
December 31, 2020
(Millions, except per-share amounts)
ASSETS
Current assets:
Cash and cash equivalents
$
1,201
$
142
Trade accounts and other receivables
1,000
1,000
Allowance for doubtful accounts
(1
)
(1
)
Trade accounts and other receivables – net
999
999
Inventories
194
136
Other current assets and deferred charges
231
152
Total current assets
2,625
1,429
Investments
5,124
5,159
Property, plant, and equipment
43,543
42,489
Accumulated depreciation and amortization
(14,244
)
(13,560
)
Property, plant, and equipment – net
29,299
28,929
Intangible assets – net of accumulated amortization
7,277
7,444
Regulatory assets, deferred charges, and other
1,182
1,204
Total assets
$
45,507
$
44,165
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
$
611
$
482
Accrued liabilities
1,005
944
Long-term debt due within one year
2,143
893
Total current liabilities
3,759
2,319
Long-term debt
21,091
21,451
Deferred income tax liabilities
2,179
1,923
Regulatory liabilities, deferred income, and other
4,213
3,889
Contingent liabilities
Equity:
Stockholders’ equity:
Preferred stock
35
35
Common stock ($1 par value; 1,470 million shares authorized at June 30, 2021 and December 31, 2020; 1,249 million shares issued at June 30, 2021 and 1,248 million shares issued at December 31, 2020)
1,249
1,248
Capital in excess of par value
24,401
24,371
Retained deficit
(13,022
)
(12,748
)
Accumulated other comprehensive income (loss)
(110
)
(96
)
Treasury stock, at cost (35 million shares of common stock)
(1,041
)
(1,041
)
Total stockholders’ equity
11,512
11,769
Noncontrolling interests in consolidated subsidiaries
2,753
2,814
Total equity
14,265
14,583
Total liabilities and equity
$
45,507
$
44,165
The Williams Companies, Inc.
Consolidated Statement of Cash Flows
(Unaudited)
Six Months Ended June 30,
2021
2020
(Millions)
OPERATING ACTIVITIES:
Net income (loss)
$
757
$
(255
)
Adjustments to reconcile to net cash provided (used) by operating activities:
Depreciation and amortization
901
859
Provision (benefit) for deferred income taxes
262
(59
)
Equity (earnings) losses
(266
)
(130
)
Distributions from unconsolidated affiliates
345
323
Impairment of goodwill
—
187
Impairment of equity-method investments
—
938
Amortization of stock-based awards
39
24
Cash provided (used) by changes in current assets and liabilities:
Accounts receivable
(50
)
85
Inventories
(58
)
(9
)
Other current assets and deferred charges
(56
)
(13
)
Accounts payable
94
236
Accrued liabilities
14
(236
)
Other, including changes in noncurrent assets and liabilities
(10
)
(20
)
Net cash provided (used) by operating activities
1,972
1,930
FINANCING ACTIVITIES:
Proceeds from long-term debt
898
3,896
Payments of long-term debt
(11
)
(3,226
)
Proceeds from issuance of common stock
3
6
Common dividends paid
(996
)
(971
)
Dividends and distributions paid to noncontrolling interests
(95
)
(98
)
Contributions from noncontrolling interests
6
4
Payments for debt issuance costs
(6
)
(17
)
Other – net
(12
)
(10
)
Net cash provided (used) by financing activities
(213
)
(416
)
INVESTING ACTIVITIES:
Property, plant, and equipment:
Capital expenditures (1)
(685
)
(613
)
Dispositions – net
(5
)
(16
)
Contributions in aid of construction
36
19
Proceeds from dispositions of equity-method investments
1
—
Purchases of and contributions to equity-method investments
(44
)
(66
)
Other – net
(3
)
6
Net cash provided (used) by investing activities
(700
)
(670
)
Increase (decrease) in cash and cash equivalents
1,059
844
Cash and cash equivalents at beginning of year
142
289
Cash and cash equivalents at end of period
$
1,201
$
1,133
_____________
(1) Increases to property, plant, and equipment
$
(693
)
$
(581
)
Changes in related accounts payable and accrued liabilities
8
(32
)
Capital expenditures
$
(685
)
$
(613
)
Transmission & Gulf of Mexico
(UNAUDITED)
2020
2021
(Dollars in millions)
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
1st Qtr
2nd Qtr
Year
Regulated interstate natural gas transportation, storage, and other revenues (1)
$
692
$
676
$
686
$
702
$
2,756
$
708
$
693
$
1,401
Gathering, processing, and transportation revenues
99
78
85
86
348
86
90
176
Other fee revenues (1)
4
5
3
6
18
4
4
8
Commodity margins
3
1
4
4
12
8
7
15
Operating and administrative costs (1)
(184
)
(189
)
(192
)
(192
)
(757
)
(198
)
(197
)
(395
)
Other segment income (expenses) - net
4
2
(8
)
8
6
5
5
10
Impairment of certain assets
—
—
—
(170
)
(170
)
—
(2
)
(2
)
Proportional Modified EBITDA of equity-method investments
44
42
38
42
166
47
46
93
Modified EBITDA
662
615
616
486
2,379
660
646
1,306
Adjustments
7
2
6
158
173
—
2
2
Adjusted EBITDA
$
669
$
617
$
622
$
644
$
2,552
$
660
$
648
$
1,308
Statistics for Operated Assets
Natural Gas Transmission
Transcontinental Gas Pipe Line
Avg. daily transportation volumes (Tbtu)
13.8
12.0
12.8
13.2
12.9
14.1
13.1
13.6
Avg. daily firm reserved capacity (Tbtu)
17.7
17.5
18.0
18.2
17.9
18.6
18.3
18.5
Northwest Pipeline LLC
Avg. daily transportation volumes (Tbtu)
2.6
1.9
1.8
2.5
2.2
2.8
2.2
2.5
Avg. daily firm reserved capacity (Tbtu) (4)
3.9
3.9
3.9
3.8
3.8
3.8
3.8
3.8
Gulfstream - Non-consolidated
Avg. daily transportation volumes (Tbtu)
1.2
1.2
1.3
1.1
1.2
1.0
1.2
1.1
Avg. daily firm reserved capacity (Tbtu)
1.3
1.3
1.3
1.3
1.3
1.3
1.3
1.3
Gathering, Processing, and Crude Oil Transportation
Consolidated (2)
Gathering volumes (Bcf/d)
0.30
0.23
0.23
0.26
0.25
0.28
0.31
0.30
Plant inlet natural gas volumes (Bcf/d)
0.58
0.50
0.40
0.46
0.48
0.46
0.41
0.44
NGL production (Mbbls/d)
32
25
27
30
29
29
26
28
NGL equity sales (Mbbls/d)
5
4
5
5
5
7
5
6
Crude oil transportation volumes (Mbbls/d)
138
92
121
132
121
130
151
141
Non-consolidated (3)
Gathering volumes (Bcf/d)
0.35
0.31
0.26
0.30
0.30
0.36
0.40
0.38
Plant inlet natural gas volumes (Bcf/d)
0.35
0.31
0.25
0.30
0.30
0.37
0.40
0.38
NGL production (Mbbls/d)
24
23
17
21
21
28
31
30
NGL equity sales (Mbbls/d)
5
8
4
6
6
9
7
8
(1) Excludes certain amounts associated with revenues and operating costs for tracked or reimbursable charges.
(2) Excludes volumes associated with equity-method investments that are not consolidated in our results.
(3) Includes 100% of the volumes associated with operated equity-method investments.
(4) Revised to include daily maximum peak capacity.
Northeast G&P
(UNAUDITED)
2020
2021
(Dollars in millions)
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
1st Qtr
2nd Qtr
Year
Gathering, processing, transportation, and fractionation revenues
$
312
$
308
$
332
$
327
$
1,279
$
311
$
315
$
626
Other fee revenues (1)
25
25
22
24
96
25
25
50
Commodity margins
1
1
1
1
4
3
—
3
Operating and administrative costs (1)
(87
)
(86
)
(85
)
(84
)
(342
)
(89
)
(86
)
(175
)
Other segment income (expenses) - net
(2
)
(4
)
(4
)
1
(9
)
(1
)
(7
)
(8
)
Impairment of certain assets
—
—
—
(12
)
(12
)
—
—
—
Proportional Modified EBITDA of equity-method investments
120
126
121
106
473
153
162
315
Modified EBITDA
369
370
387
363
1,489
402
409
811
Adjustments
1
(7
)
9
43
46
—
—
—
Adjusted EBITDA
$
370
$
363
$
396
$
406
$
1,535
$
402
$
409
$
811
Statistics for Operated Assets
Gathering and Processing
Consolidated (2)
Gathering volumes (Bcf/d)
4.27
4.14
4.47
4.36
4.31
4.19
4.10
4.15
Plant inlet natural gas volumes (Bcf/d)
1.23
1.22
1.36
1.45
1.32
1.41
1.62
1.52
NGL production (Mbbls/d) (4)
93
93
114
111
103
102
115
108
NGL equity sales (Mbbls/d)
2
2
2
2
2
1
1
1
Non-consolidated (3)
Gathering volumes (Bcf/d)
4.40
4.68
4.94
5.11
4.78
5.40
5.47
5.44
(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 the Bradford Supply Hub and a portion of the Marcellus South Supply Hub within the Appalachia Midstream Services partnership.
(4) 1st Qtr and Year columns for 2020 volumes reflect revised NGL production.
West
(UNAUDITED)
2020
2021
(Dollars in millions)
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
1st Qtr
2nd Qtr
Year
Gathering, processing, transportation, storage, and fractionation revenues
$
299
$
297
$
288
$
320
$
1,204
$
262
$
278
$
540
Other fee revenues (1)
6
13
16
15
50
6
5
11
Commodity margins
2
30
28
25
85
128
41
169
Operating and administrative costs (1)
(115
)
(111
)
(108
)
(105
)
(439
)
(106
)
(114
)
(220
)
Other segment income (expenses) - net
(5
)
—
(7
)
—
(12
)
—
(1
)
(1
)
Proportional Modified EBITDA of equity-method investments
28
24
30
28
110
25
22
47
Modified EBITDA
215
253
247
283
998
315
231
546
Adjustments
1
(1
)
(2
)
(6
)
(8
)
—
—
—
Adjusted EBITDA
$
216
$
252
$
245
$
277
$
990
$
315
$
231
$
546
Statistics for Operated Assets
Gathering and Processing
Consolidated (2)
Gathering volumes (Bcf/d)
3.43
3.40
3.28
3.19
3.33
3.11
3.21
3.16
Plant inlet natural gas volumes (Bcf/d)
1.26
1.33
1.31
1.13
1.25
1.20
1.20
1.20
NGL production (Mbbls/d)
35
51
71
39
49
36
39
38
NGL equity sales (Mbbls/d)
12
25
34
18
22
13
16
15
Non-consolidated (3)
Gathering volumes (Bcf/d)
0.20
0.24
0.28
0.30
0.25
0.27
0.30
0.29
Plant inlet natural gas volumes (Bcf/d)
0.20
0.23
0.28
0.29
0.25
0.27
0.30
0.28
NGL production (Mbbls/d)
17
23
26
26
23
24
32
28
NGL and Crude Oil Transportation volumes (Mbbls/d) (4)
227
142
156
147
168
85
101
93
(1) Excludes certain amounts associated with revenues and operating costs for reimbursable charges.
(2) Excludes volumes associated with equity-method investments that are not consolidated in our results.
(3) Includes 100% of the volumes associated with operated equity-method investments, including Rocky Mountain Midstream.
(4) Includes 100% of the volumes associated with operated equity-method investments, including the Overland Pass Pipeline Company and Rocky Mountain Midstream.
Capital Expenditures and Investments
(UNAUDITED)
2020
2021
(Dollars in millions)
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
1st Qtr
2nd Qtr
Year
Capital expenditures:
Transmission & Gulf of Mexico
$
185
$
181
$
192
$
190
$
748
$
109
$
209
$
318
Northeast G&P
46
41
32
38
157
40
46
86
West
72
80
93
65
310
33
76
109
Other
3
5
8
8
24
78
94
172
Total (1)
$
306
$
307
$
325
$
301
$
1,239
$
260
$
425
$
685
Purchases of and contributions to equity-method investments:
Transmission & Gulf of Mexico
$
1
$
1
$
34
$
1
$
37
$
3
$
6
$
9
Northeast G&P
27
30
47
174
278
11
24
35
West
2
5
3
—
10
—
—
—
Total
$
30
$
36
$
84
$
175
$
325
$
14
$
30
$
44
Summary:
Transmission & Gulf of Mexico
$
186
$
182
$
226
$
191
$
785
$
112
$
215
$
327
Northeast G&P
73
71
79
212
435
51
70
121
West
74
85
96
65
320
33
76
109
Other
3
5
8
8
24
78
94
172
Total
$
336
$
343
$
409
$
476
$
1,564
$
274
$
455
$
729
Capital investments:
Increases to property, plant, and equipment
$
254
$
327
$
331
$
248
$
1,160
$
263
$
430
$
693
Purchases of and contributions to equity-method investments
30
36
84
175
325
14
30
44
Total
$
284
$
363
$
415
$
423
$
1,485
$
277
$
460
$
737
(1) Increases to property, plant, and equipment
$
254
$
327
$
331
$
248
$
1,160
$
263
$
430
$
693
Changes in related accounts payable and accrued liabilities
52
(20
)
(6
)
53
79
(3
)
(5
)
(8
)
Capital expenditures
$
306
$
307
$
325
$
301
$
1,239
$
260
$
425
$
685
Contributions from noncontrolling interests
$
2
$
2
$
1
$
2
$
7
$
2
$
4
$
6
Contributions in aid of construction
$
14
$
5
$
8
$
10
$
37
$
19
$
17
$
36
Proceeds from disposition of equity-method investments
$
—
$
—
$
—
$
—
$
—
$
—
$
1
$
1
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, 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. Such items are excluded from net income to determine adjusted income. Management believes this measure provides investors meaningful insight into results from ongoing operations.
Available funds from operations is defined as cash flow from operations excluding the effect of changes in working capital and certain other changes in noncurrent assets and liabilities, reduced by preferred dividends and net distributions to noncontrolling interests.
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) Attributable to The Williams Companies, Inc. to Non-GAAP Adjusted Income
(UNAUDITED)
2020
2021
(Dollars in millions, except per-share amounts)
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
1st Qtr
2nd Qtr
Year
Income (loss) attributable to The Williams Companies, Inc. available to common stockholders
$
(518
)
$
303
$
308
$
115
$
208
$
425
$
304
$
729
Income (loss) - diluted earnings (loss) per common share (1)
$
(.43
)
$
.25
$
.25
$
.09
$
.17
$
.35
$
.25
$
.60
Adjustments:
Transmission & Gulf of Mexico
Northeast Supply Enhancement project development costs
$
—
$
3
$
3
$
—
$
6
$
—
$
—
$
—
Impairment of certain assets
—
—
—
170
170
—
2
2
Pension plan settlement charge
4
1
—
—
5
—
—
—
Adjustment of Transco’s regulatory asset for post-WPZ Merger state deferred income tax change consistent with filed rate case
2
—
—
—
2
—
—
—
Benefit of change in employee benefit policy
—
(3
)
(6
)
(13
)
(22
)
—
—
—
Reversal of costs capitalized in prior periods
—
—
10
1
11
—
—
—
Severance and related costs
1
1
(1
)
—
1
—
—
—
Total Transmission & Gulf of Mexico adjustments
7
2
6
158
173
—
2
2
Northeast G&P
Share of early debt retirement gain at equity-method investment
—
(5
)
—
—
(5
)
—
—
—
Share of impairment of certain assets at equity-method investments
—
—
11
36
47
—
—
—
Pension plan settlement charge
1
—
—
—
1
—
—
—
Impairment of certain assets
—
—
—
12
12
—
—
—
Benefit of change in employee benefit policy
—
(2
)
(2
)
(5
)
(9
)
—
—
—
Total Northeast G&P adjustments
1
(7
)
9
43
46
—
—
—
West
Pension plan settlement charge
1
—
—
—
1
—
—
—
Benefit of change in employee benefit policy
—
(1
)
(2
)
(6
)
(9
)
—
—
—
Total West adjustments
1
(1
)
(2
)
(6
)
(8
)
—
—
—
Other
Regulatory asset reversals from impaired projects
—
—
8
7
15
—
—
—
Commodity derivative non-cash mark-to-market
—
—
—
—
—
—
4
4
Reversal of costs capitalized in prior periods
—
—
3
—
3
—
—
—
Pension plan settlement charge
—
—
—
1
1
—
—
—
Accrual for loss contingencies
—
—
—
24
24
5
5
10
Total Other adjustments
—
—
11
32
43
5
9
14
Adjustments included in Modified EBITDA
9
(6
)
24
227
254
5
11
16
Adjustments below Modified EBITDA
Accelerated depreciation for decommissioning assets
—
—
—
—
—
—
20
20
Impairment of equity-method investments
938
—
—
108
1,046
—
—
—
Impairment of goodwill (2)
187
—
—
—
187
—
—
—
Share of impairment of goodwill at equity-method investment
78
—
—
—
78
—
—
—
Allocation of adjustments to noncontrolling interests
(65
)
—
—
—
(65
)
—
—
—
1,138
—
—
108
1,246
—
20
20
Total adjustments
1,147
(6
)
24
335
1,500
5
31
36
Less tax effect for above items
(316
)
8
1
(68
)
(375
)
(1
)
(8
)
(9
)
Adjusted income available to common stockholders
$
313
$
305
$
333
$
382
$
1,333
$
429
$
327
$
756
Adjusted income - diluted earnings per common share (1)
$
.26
$
.25
$
.27
$
.31
$
1.10
$
.35
$
.27
$
.62
Weighted-average shares - diluted (thousands)
1,214,348
1,214,581
1,215,335
1,216,381
1,215,165
1,217,211
1,217,476
1,217,344
(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 partner's $65 million share of the first-quarter 2020 impairment of goodwill is reflected below in Allocation of adjustments to noncontrolling interests.
Reconciliation of Cash Flow from Operating Activities to Available Funds from Operations (AFFO)
(UNAUDITED)
2020
2021
(Dollars in millions, except coverage ratios)
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
1st Qtr
2nd Qtr
Year
The Williams Companies, Inc.
Reconciliation of GAAP "Net cash provided (used) by operating activities" to Non-GAAP "Available funds from operations"
Net cash provided (used) by operating activities
$
787
$
1,143
$
452
$
1,114
$
3,496
$
915
$
1,057
$
1,972
Exclude: Cash (provided) used by changes in:
Accounts receivable
(67
)
(18
)
103
(16
)
2
59
(9
)
50
Inventories
(19
)
28
24
(22
)
11
8
50
58
Other current assets and deferred charges
(20
)
33
2
(26
)
(11
)
6
50
56
Accounts payable
155
(391
)
313
(70
)
7
(38
)
(56
)
(94
)
Accrued liabilities
150
86
50
23
309
116
(130
)
(14
)
Other, including changes in noncurrent assets and liabilities
(23
)
43
(32
)
17
5
16
(6
)
10
Preferred dividends paid
(1
)
—
(1
)
(1
)
(3
)
(1
)
—
(1
)
Dividends and distributions paid to noncontrolling interests
(44
)
(54
)
(49
)
(38
)
(185
)
(54
)
(41
)
(95
)
Contributions from noncontrolling interests
2
2
1
2
7
2
4
6
Available funds from operations
$
920
$
872
$
863
$
983
$
3,638
$
1,029
$
919
$
1,948
Common dividends paid
$
485
$
486
$
485
$
485
$
1,941
$
498
$
498
$
996
Coverage ratio:
Available funds from operations divided by Common dividends paid
1.90
1.79
1.78
2.03
1.87
2.07
1.85
1.96
Reconciliation of "Net Income (Loss)" to “Modified EBITDA” and Non-GAAP “Adjusted EBITDA”
(UNAUDITED)
2020
2021
(Dollars in millions)
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
1st Qtr
2nd Qtr
Year
Net income (loss)
$
(570
)
$
315
$
323
$
130
$
198
$
435
$
322
$
757
Provision (benefit) for income taxes
(204
)
117
111
55
79
141
119
260
Interest expense
296
294
292
290
1,172
294
298
592
Equity (earnings) losses
(22
)
(108
)
(106
)
(92
)
(328
)
(131
)
(135
)
(266
)
Impairment of goodwill
187
—
—
—
187
—
—
—
Impairment of equity-method investments
938
—
—
108
1,046
—
—
—
Other investing (income) loss - net
(3
)
(1
)
(2
)
(2
)
(8
)
(2
)
(2
)
(4
)
Proportional Modified EBITDA of equity-method investments
192
192
189
176
749
225
230
455
Depreciation and amortization expenses
429
430
426
436
1,721
438
463
901
Accretion expense associated with asset retirement obligations for nonregulated operations
10
7
10
8
35
10
11
21
Modified EBITDA
$
1,253
$
1,246
$
1,243
$
1,109
$
4,851
$
1,410
$
1,306
$
2,716
Transmission & Gulf of Mexico
$
662
$
615
$
616
$
486
$
2,379
$
660
$
646
$
1,306
Northeast G&P
369
370
387
363
1,489
402
409
811
West
215
253
247
283
998
315
231
546
Other
7
8
(7
)
(23
)
(15
)
33
20
53
Total Modified EBITDA
$
1,253
$
1,246
$
1,243
$
1,109
$
4,851
$
1,410
$
1,306
$
2,716
Adjustments (1):
Transmission & Gulf of Mexico
$
7
$
2
$
6
$
158
$
173
$
—
$
2
$
2
Northeast G&P
1
(7
)
9
43
46
—
—
—
West
1
(1
)
(2
)
(6
)
(8
)
—
—
—
Other
—
—
11
32
43
5
9
14
Total Adjustments
$
9
$
(6
)
$
24
$
227
$
254
$
5
$
11
$
16
Adjusted EBITDA:
Transmission & Gulf of Mexico
$
669
$
617
$
622
$
644
$
2,552
$
660
$
648
$
1,308
Northeast G&P
370
363
396
406
1,535
402
409
811
West
216
252
245
277
990
315
231
546
Other
7
8
4
9
28
38
29
67
Total Adjusted EBITDA
$
1,262
$
1,240
$
1,267
$
1,336
$
5,105
$
1,415
$
1,317
$
2,732
(1) Adjustments by segment are detailed in the "Reconciliation of Income (Loss) Attributable to The Williams Companies, Inc. to Non-GAAP Adjusted Income," which is also included in these materials.
Reconciliation of Net Income (Loss) to Modified EBITDA, Non-GAAP Adjusted EBITDA and Cash Flow from Operating Activities to Non-GAAP Available Funds from Operations (AFFO)
2021 Guidance
(Dollars in millions, except per share amounts and coverage ratio)
Low
Mid
High
Net income (loss)
$
1,385
$
1,485
$
1,585
Provision (benefit) for income taxes
490
Interest expense
1,175
Equity (earnings) losses
(475
)
Proportional Modified EBITDA of equity-method investments
835
Depreciation and amortization expenses and accretion for asset retirement obligations associated with nonregulated operations
1,795
Other
(10
)
Modified EBITDA
$
5,195
$
5,295
$
5,395
EBITDA Adjustments
5
Adjusted EBITDA
$
5,200
$
5,300
$
5,400
Net income (loss)
$
1,385
$
1,485
$
1,585
Less: Net income (loss) attributable to noncontrolling interests & preferred dividends
64
Net income (loss) attributable to The Williams Companies, Inc. available to common stockholders
$
1,321
$
1,421
$
1,521
Adjustments:
Adjustments included in Modified EBITDA (1)
5
Adjustments below Modified EBITDA (1)
—
Allocation of adjustments to noncontrolling interests (1)
—
Total adjustments
5
Less tax effect for above items (1)
(1
)
Adjusted income available to common stockholders
$
1,325
$
1,425
$
1,525
Adjusted diluted earnings per common share
$
1.09
$
1.17
$
1.25
Weighted-average shares - diluted (millions)
1,217
Available Funds from Operations (AFFO):
Net cash provided by operating activities (net of changes in working capital and changes in other, including changes in noncurrent assets and liabilities)
$
3,890
$
3,990
$
4,090
Preferred dividends paid
(3
)
Dividends and distributions paid to noncontrolling interests
(200
)
Contributions from noncontrolling interests
13
Available funds from operations (AFFO)
$
3,700
$
3,800
$
3,900
AFFO per common share
$
3.04
$
3.12
$
3.20
Common dividends paid
$
2,000
Coverage Ratio (AFFO/Common dividends paid)
1.85
x
1.90
x
1.95
x
(1) See "Reconciliation of Income (Loss) Attributable to The Williams Companies, Inc. to Non-GAAP Adjusted Income" for additional details.
Forward-Looking Statements
The reports, filings, and other public announcements of The Williams Companies, Inc. (Williams) may contain or incorporate by reference statements that do not directly or exclusively relate to historical facts. Such statements are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended (Exchange Act). These forward-looking statements relate to anticipated financial performance, management’s plans and objectives for future operations, business prospects, outcome of regulatory proceedings, market conditions, and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995.
All statements, other than statements of historical facts, included in this report that address activities, events, or developments that we expect, believe, or anticipate will exist or may occur in the future, are forward-looking statements. Forward-looking statements can be identified by various forms of words such as “anticipates,” “believes,” “seeks,” “could,” “may,” “should,” “continues,” “estimates,” “expects,” “forecasts,” “intends,” “might,” “goals,” “objectives,” “targets,” “planned,” “potential,” “projects,” “scheduled,” “will,” “assumes,” “guidance,” “outlook,” “in-service date,” or other similar expressions. These forward-looking statements are based on management’s beliefs and assumptions and on information currently available to management and include, among others, statements regarding:
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, 2020, as filed with the SEC on February 24, 2021.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210802005687/en/
MEDIA CONTACT: media@williams.com (800) 945-8723
INVESTOR CONTACT: Danilo Juvane (918) 573-5075
Grace Scott (918) 573-1092
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