Williams to Consolidate Operating Areas -- Update

   By Josh Beckerman 
 

Williams Cos. (WMB) took measures to simplify its structure and reduce commodity exposure by consolidating to three operating areas from five.

By early 2017, the pipeline operator's three operating areas will be Atlantic-Gulf, West and Northeast Gathering & Processing. Currently, its five segments are West, NGL & Petchem Services, Atlantic-Gulf, Central and Northeast Gathering & Processing.

Financial reporting under the new structure is expected to take effect in early January, Williams said.

Activist investor Keith Meister said in late August that he planned to remove the entire Williams board. Several days later, Williams added three new independent directors.

A planned merger of Williams and Energy Transfer Equity that was initially worth $33 billion fell apart in June following a legal battle.

Williams shares rose one cent to $30.35 in after-hours trading Wednesday.

On Aug. 1, Williams said it would reduce its dividend by 69% so it can reinvest about $1.7 billion into its affiliate Williams Partners LP (WPZ).

At that time, Williams Cos. said second-quarter revenue fell 5.6% to $1.74 billion and it swung to a loss amid asset write-downs. However, the company said it posted strong cash flow and made progress on cost-cutting moves.

Williams said Wednesday that operations including the NGL & Petchem Services activities in the Gulf and the Geismar olefins plant will be integrated into the Atlantic-Gulf Operating Area. Atlantic-Gulf will continue to include the Transco pipeline.

All gathering systems, operations and commercial activities in the Barnett, Eagle Ford and Haynesville shales, the Mid-Continent region and Permian Basin will become part of the West area.

Northeast Gathering & Processing will remain unchanged.

Write to Josh Beckerman at [e-mail]

(END) Dow Jones Newswires

September 07, 2016 18:15 ET (22:15 GMT)

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