Sign In  |  Register  |  About Pleasanton  |  Contact Us

Pleasanton, CA
September 01, 2020 1:32pm
7-Day Forecast | Traffic
  • Search Hotels in Pleasanton

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

Williams Delivers Strong First-Quarter Results; Positioned to Hit Top Half of 2024 Financial Guidance Range

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

  • GAAP net income of $631 million, or $0.52 per diluted share (EPS)
  • Adjusted net income of $719 million, or $0.59 per diluted share (Adj. EPS) – up 5% vs. 1Q 2023
  • Adjusted EBITDA of $1.934 billion – up $139 million or 8% vs. 1Q 2023
  • Cash flow from operations (CFFO) of $1.234 billion
  • Available funds from operations (AFFO) of $1.507 billion – up $62 million or 4% vs. 1Q 2023
  • Dividend coverage ratio of 2.60x (AFFO basis)
  • Record contracted transmission capacity of 33.9 Bcf/d – up 4.3% from 1Q 2023
  • Strong 1Q performance driving expectations to top half of 2024 financial guidance range

Recent acquisitions and large roster of projects in execution building long-term value

  • Closed acquisition of 6 storage facilities with total capacity of 115 Bcf across Louisiana and Mississippi, strategically located to serve growing LNG exports and power generation demand
  • Placed Transco's Carolina Market Link into service 1Q 2024
  • Received FERC notice to proceed on Transco's Commonwealth Energy Connector
  • Commenced construction on Transco's Southside Reliability Enhancement and Southeast Energy Connector
  • First phase of Transco's Regional Energy Access continued to deliver earnings with second phase on track to come online in 4Q 2024
  • Received FERC certificate for Transco's Alabama Georgia Connector and Texas to Louisiana Energy Pathway
  • Pre-filed FERC application for Transco's ~1.6 Bcf/d Southeast Supply Enhancement
  • Continued execution of additional transmission, gathering & processing and Deepwater Gulf of Mexico projects

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:

  • Levels of dividends to Williams stockholders;
  • Future credit ratings of Williams and its affiliates;
  • Amounts and nature of future capital expenditures;
  • Expansion and growth of our business and operations;
  • Expected in-service dates for capital projects;
  • Financial condition and liquidity;
  • Business strategy;
  • Cash flow from operations or results of operations;
  • Seasonality of certain business components;
  • Natural gas, natural gas liquids, and crude oil prices, supply, and demand;
  • Demand for our services.

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 matters, and litigation, as well as our ability and the ability of other energy companies with whom we conduct or seek to conduct business, to obtain necessary permits and approvals, and our ability to 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 consummate asset sales on acceptable terms;
  • Whether we are able to successfully identify, evaluate, and timely execute our capital projects and investment opportunities;
  • The strength and financial resources of our competitors and the effects of competition;
  • The amount of cash distributions from and capital requirements of our investments and joint ventures in which we participate;
  • Whether we will be able to effectively execute our financing plan;
  • Increasing scrutiny and changing expectations from stakeholders with respect to our environmental, social, and governance practices;
  • The physical and financial risks associated with climate change;
  • The impacts of operational and developmental hazards and unforeseen interruptions;
  • The risks resulting from outbreaks or other public health crises;
  • Risks associated with weather and natural phenomena, including climate conditions and physical damage to our facilities;
  • Acts of terrorism, cybersecurity incidents, and related disruptions;
  • Our costs and funding obligations for defined benefit pension plans and other postretirement benefit plans;
  • Changes in maintenance and construction costs, as well as our ability to obtain sufficient construction-related inputs, including skilled labor;
  • Inflation, interest rates, and general economic conditions (including future disruptions and volatility in the global credit markets and the impact of these events on customers and suppliers);
  • Risks related to financing, including restrictions stemming from debt agreements, future changes in credit ratings as determined by nationally recognized credit rating agencies, and the availability and cost of capital;
  • The ability of the members of the Organization of Petroleum Exporting Countries and other oil exporting nations to agree to and maintain oil price and production controls and the impact on domestic production;
  • Changes in the current geopolitical situation, including the Russian invasion of Ukraine and conflicts in the Middle East, including between Israel and Hamas and conflicts involving Iran and its proxy forces;
  • Changes in U.S. governmental administration and policies;
  • Whether we are able to pay current and expected levels of dividends;
  • Additional risks described in our filings with the Securities and Exchange Commission (SEC).

Given the uncertainties and risk factors that could cause our actual results to differ materially from those contained in any forward-looking statement, we caution investors not to unduly rely on our forward-looking statements. We disclaim any obligations to, and do not intend to, update the above list or announce publicly the result of any revisions to any of the forward-looking statements to reflect future events or developments.

In addition to causing our actual results to differ, the factors listed above and referred to below may cause our intentions to change from those statements of intention set forth in this report. Such changes in our intentions may also cause our results to differ. We may change our intentions, at any time and without notice, based upon changes in such factors, our assumptions, or otherwise.

Because forward-looking statements involve risks and uncertainties, we caution that there are important factors, in addition to those listed above, that may cause actual results to differ materially from those contained in the forward-looking statements. For a detailed discussion of those factors, see Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 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.

Contacts

MEDIA CONTACT:

media@williams.com

(800) 945-8723



INVESTOR CONTACTS:

Danilo Juvane

(918) 573-5075



Caroline Sardella

(918) 230-9992

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Photography by Christophe Tomatis
Copyright © 2010-2020 Pleasanton.com & California Media Partners, LLC. All rights reserved.