Sign In  |  Register  |  About Santa Clara  |  Contact Us

Santa Clara, CA
September 01, 2020 1:39pm
7-Day Forecast | Traffic
  • Search Hotels in Santa Clara

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

Williams Reports Higher First-Quarter Results

Williams (NYSE: WMB) today announced its unaudited financial results for the three months ended March 31, 2023.

Strong results across key financial metrics demonstrate resiliency through price cycles

  • GAAP net income of $926 million, or $0.76 per diluted share (EPS) – up 144% vs. 1Q 2022
  • Adjusted net income of $684 million, or $0.56 per diluted share (Adjusted EPS) – up 37% vs. 1Q 2022
  • Adjusted EBITDA of $1.795 billion – up $284 million or 19% vs. 1Q 2022
  • Cash flow from operations (CFFO) of $1.514 billion – up $432 million or 40% vs. 1Q 2022
  • Available funds from operations (AFFO) of $1.445 billion – up $255 million or 21% vs. 1Q 2022
  • Dividend coverage ratio of 2.65x (AFFO basis)
  • Record gathering volumes of 17.85 Bcf/d – up 18% from 1Q 2022
  • Record contracted transmission capacity of 32.5 Bcf/d – up 33% from 1Q 2022
  • Continued improvement of balance sheet with leverage ratio of 3.57x

Steadfast project execution to drive additional growth for business in 2023 and beyond

  • Began construction of Regional Energy Access; partial in-service expected ahead of schedule late 2023
  • Closed on acquisition of MountainWest natural gas transmission and storage business
  • Brought into service Taggart in Deepwater Gulf of Mexico, Haynesville Springridge expansion and Marcellus gathering expansion in Southwest Appalachia
  • Executed agreements with Chevron to facilitate fee-based growth in Deepwater Gulf of Mexico, Haynesville gathering and our Louisiana Energy Gateway Expansion (LEG)
  • Advanced NextGen Gas strategy by leveraging Sequent marketing business; Coterra and Dominion committing additional volumes
  • Continued focus on sustainable operations; first major U.S. midstream company to join the Oil & Gas Methane Partnership (OGMP) 2.0 methane performance initiative

CEO Perspective

Alan Armstrong, president and chief executive officer, made the following comments:

“Williams experienced record natural gas gathering volumes and contracted capacity in the first quarter, driving higher earnings across all four core business segments compared to first quarter 2022, with Adjusted EBITDA up nearly 20 percent. These results proved without question that our core business is performing as designed amid volatile price cycles. Our fee-based revenues continued to grow even without including the strong contributions from recent acquisitions. We saw very high gas prices at Opal in the first quarter, which caused negative NGL margins, but the integration of our Sequent marketing business turned this into a positive outcome for Williams, demonstrating our ability to capitalize on volatility.

“We remain squarely focused on our natural gas-focused strategy as we execute a robust list of fully contracted projects within our footprint that will contribute to our long-term adjusted EBITDA growth rate target of 5 to 7 percent. Regional Energy Access, which we expect to start bringing into service ahead of schedule this year, will unlock more of our Northeast gas gathering and processing volumes to serve nearby markets. In addition, the integration of our recent MountainWest acquisition bolsters our position in the Rockies with stable, FERC-regulated natural gas transmission and storage infrastructure.”

Armstrong added, “Williams is making strides to serve both domestic and global energy demand in a lower-carbon and sustainable manner. We were the first major U.S. midstream company to join OGMP 2.0, and we were among the first to invest in and deploy satellite technology to monitor the methane performance of our assets as part of our growing NextGen Gas strategy. It’s certainly an exciting time to be at Williams, and I’m proud of all that our employees are doing across the enterprise to make Williams a leader in the responsible energy market.”

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.

2023

2022

 

 

 

GAAP Measures

 

 

Net Income

$926

$379

Net Income Per Share

$0.76

$0.31

Cash Flow From Operations

$1,514

$1,082

 

 

 

Non-GAAP Measures (1)

 

 

Adjusted EBITDA

$1,795

$1,511

Adjusted Net Income

$684

$499

Adjusted Earnings Per Share

$0.56

$0.41

Available Funds from Operations

$1,445

$1,190

Dividend Coverage Ratio

2.65x

2.30x

 

 

 

Other

 

 

Debt-to-Adjusted EBITDA at Quarter End (2)

3.57x

3.81x

Capital Investments (3) (4)

$525

$316

 

 

 

(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 includes 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) 1Q 2023 capital excludes $1.06 billion acquisition of MountainWest Pipeline Holding company, which closed February 14, 2023.

GAAP Measures

First-quarter 2023 net income increased by $547 million compared to the prior year reflecting a favorable change of $450 million in net unrealized gains/losses on commodity derivatives, the benefit of higher service revenues driven by contributions from recent acquisitions and increased volumes at Ohio Valley Midstream, as well as higher commodity marketing margins. These improvements were partially offset by higher operating and administrative expenses, including the impact from recent acquisitions. The tax provision increased primarily due to higher pretax income.

Cash flow from operations for the first quarter of 2023 increased compared to 2022 primarily due to higher operating results exclusive of non-cash items and favorable net changes in working capital.

Non-GAAP Measures

First-quarter 2023 Adjusted EBITDA increased by $284 million over the prior year, driven by the previously described benefits from service revenues and commodity marketing margins, partially offset by higher operating and administrative expenses.

First-quarter 2023 Adjusted Net Income improved by $185 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 amortization of certain assets from the Sequent acquisition.

First-quarter 2023 Available Funds From Operations (AFFO) increased by $255 million compared to the prior year primarily due to higher 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 2023 Form 10-Q.

 

First Quarter

Amounts in millions

Modified EBITDA

 

Adjusted EBITDA

1Q 2023

1Q 2022

Change

 

1Q 2023

1Q 2022

Change

Transmission & Gulf of Mexico

$715

$697

$18

 

$728

$697

$31

Northeast G&P

470

418

52

 

470

418

52

West

304

260

44

 

286

260

26

Gas & NGL Marketing Services

567

13

554

 

231

65

166

Other

74

5

69

 

80

71

9

Total

$2,130

$1,393

$737

 

$1,795

$1,511

$284

 

 

 

 

 

 

 

 

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 2023 Modified and Adjusted EBITDA improved compared to the prior year driven by the MountainWest and NorTex Midstream acquisitions. Modified EBITDA for 2023 was further impacted by one-time MountainWest acquisition costs, which are excluded from Adjusted EBITDA.

Northeast G&P

First-quarter 2023 Modified and Adjusted EBITDA increased over the prior year driven by increased volumes at Ohio Valley Midstream, Marcellus South and Cardinal.

West

First-quarter 2023 Modified and Adjusted EBITDA increased compared to the prior year benefiting from realized gains on natural gas hedges and contributions from Trace Midstream acquired in April 2022, partially offset by lower processing margins due to a short-term gas price spike at Opal and severe weather impacts. Modified EBITDA for 2023 was also impacted by a favorable contract settlement, which is excluded from Adjusted EBITDA.

Gas & NGL Marketing Services

First-quarter 2023 Modified EBITDA improved from the prior year primarily reflecting higher commodity marketing margins and a $390 million net favorable change in unrealized gains/losses on commodity derivatives, which is excluded from Adjusted EBITDA.

Other

First-quarter 2023 Modified EBITDA improved compared to the prior year primarily reflecting a $60 million net favorable change in unrealized gains/losses on commodity derivatives, which is excluded from Adjusted EBITDA. These results were partially impacted by severe weather.

2023 Financial Guidance

The company continues to expect 2023 Adjusted EBITDA between $6.4 billion and $6.8 billion. The company expects 2023 growth capex between $1.6 billion to $1.9 billion due to the acceleration of Transco's Regional Energy Access project. Importantly, Williams anticipates a leverage ratio midpoint of 3.65x, which will allow it to retain financial flexibility. The dividend was increased by 5.3% on an annualized basis to $1.79 in 2023 from $1.70 in 2022.

Williams' First-Quarter 2023 Materials to be Posted Shortly; Q&A Webcast Scheduled for Tomorrow

Williams' first-quarter 2023 earnings presentation will be posted at www.williams.com. The company’s first-quarter 2023 earnings conference call and webcast with analysts and investors is scheduled for Thursday, May 4, 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://conferencingportals.com/event/MTgNWtxQ

A webcast link to the conference call will be provided on Williams’ Investor Relations website. A replay of the webcast will be available on the website for at least 90 days following the event.

About Williams

As the world demands reliable, low-cost, low-carbon energy, Williams (NYSE: WMB) will be there with the best transport, storage and delivery solutions 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, storage, wholesale marketing and trading 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 33,000 miles of pipelines system wide – including Transco, the nation’s largest volume and fastest growing pipeline – and handles approximately one third of the natural gas in the United States that is used every day for clean-power generation, heating and industrial use. Learn how the company is leveraging its nationwide footprint to incorporate clean hydrogen, NextGen Gas and other innovations at www.williams.com.

The Williams Companies, Inc.

Consolidated Statement of Income

(Unaudited)

 

 

Three Months Ended

March 31,

 

 

2023

 

 

 

2022

 

 

(Millions, except per-share amounts)

Revenues:

 

 

 

Service revenues

$

1,694

 

 

$

1,537

 

Service revenues – commodity consideration

 

36

 

 

 

77

 

Product sales

 

845

 

 

 

1,104

 

Net gain (loss) on commodity derivatives

 

506

 

 

 

(194

)

Total revenues

 

3,081

 

 

 

2,524

 

Costs and expenses:

 

 

 

Product costs

 

553

 

 

 

803

 

Net processing commodity expenses

 

54

 

 

 

30

 

Operating and maintenance expenses

 

463

 

 

 

394

 

Depreciation and amortization expenses

 

506

 

 

 

498

 

Selling, general, and administrative expenses

 

176

 

 

 

154

 

Other (income) expense – net

 

(31

)

 

 

(9

)

Total costs and expenses

 

1,721

 

 

 

1,870

 

Operating income (loss)

 

1,360

 

 

 

654

 

Equity earnings (losses)

 

147

 

 

 

136

 

Other investing income (loss) – net

 

8

 

 

 

1

 

Interest incurred

 

(304

)

 

 

(289

)

Interest capitalized

 

10

 

 

 

3

 

Other income (expense) – net

 

20

 

 

 

5

 

Income (loss) before income taxes

 

1,241

 

 

 

510

 

Less: Provision (benefit) for income taxes

 

284

 

 

 

118

 

Net income (loss)

 

957

 

 

 

392

 

Less: Net income (loss) attributable to noncontrolling interests

 

30

 

 

 

12

 

Net income (loss) attributable to The Williams Companies, Inc.

 

927

 

 

 

380

 

Less: Preferred stock dividends

 

1

 

 

 

1

 

Net income (loss) available to common stockholders

$

926

 

 

$

379

 

Basic earnings (loss) per common share:

 

 

 

Net income (loss) available to common stockholders

$

.76

 

 

$

.31

 

Weighted-average shares (thousands)

 

1,219,465

 

 

 

1,216,940

 

Diluted earnings (loss) per common share:

 

 

 

Net income (loss) available to common stockholders

$

.76

 

 

$

.31

 

Weighted-average shares (thousands)

 

1,225,781

 

 

 

1,221,279

 

The Williams Companies, Inc.

Consolidated Balance Sheet

(Unaudited)

 

 

March 31,

2023

 

December 31,

2022

 

 

(Millions, except per-share amounts)

ASSETS

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

477

 

 

$

152

 

Trade accounts and other receivables

 

 

1,530

 

 

 

2,729

 

Allowance for doubtful accounts

 

 

(6

)

 

 

(6

)

Trade accounts and other receivables – net

 

 

1,524

 

 

 

2,723

 

Inventories

 

 

244

 

 

 

320

 

Derivative assets

 

 

243

 

 

 

323

 

Other current assets and deferred charges

 

 

269

 

 

 

279

 

Total current assets

 

 

2,757

 

 

 

3,797

 

Investments

 

 

5,067

 

 

 

5,065

 

Property, plant, and equipment

 

 

49,546

 

 

 

47,057

 

Accumulated depreciation and amortization

 

 

(17,451

)

 

 

(16,168

)

Property, plant, and equipment – net

 

 

32,095

 

 

 

30,889

 

Intangible assets – net of accumulated amortization

 

 

7,660

 

 

 

7,363

 

Regulatory assets, deferred charges, and other

 

 

1,357

 

 

 

1,319

 

Total assets

 

$

48,936

 

 

$

48,433

 

LIABILITIES AND EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

1,258

 

 

$

2,327

 

Derivative liabilities

 

 

180

 

 

 

316

 

Accrued and other current liabilities

 

 

955

 

 

 

1,270

 

Commercial paper

 

 

 

 

 

350

 

Long-term debt due within one year

 

 

1,627

 

 

 

627

 

Total current liabilities

 

 

4,020

 

 

 

4,890

 

Long-term debt

 

 

22,785

 

 

 

21,927

 

Deferred income tax liabilities

 

 

3,177

 

 

 

2,887

 

Regulatory liabilities, deferred income, and other

 

 

4,631

 

 

 

4,684

 

Contingent liabilities and commitments

 

 

 

 

Equity:

 

 

 

 

Stockholders’ equity:

 

 

 

 

Preferred stock ($1 par value; 30 million shares authorized at March 31, 2023 and December 31, 2022; 35,000 shares issued at March 31, 2023 and December 31, 2022)

 

 

35

 

 

 

35

 

Common stock ($1 par value; 1,470 million shares authorized at March 31, 2023 and December 31, 2022; 1,256 million shares issued at March 31, 2023 and 1,253 million shares issued at December 31, 2022)

 

 

1,256

 

 

 

1,253

 

Capital in excess of par value

 

 

24,516

 

 

 

24,542

 

Retained deficit

 

 

(12,895

)

 

 

(13,271

)

Accumulated other comprehensive income (loss)

 

 

(3

)

 

 

(24

)

Treasury stock, at cost (37 million shares at March 31, 2023 and 35 million shares at December 31, 2022 of common stock)

 

 

(1,124

)

 

 

(1,050

)

Total stockholders’ equity

 

 

11,785

 

 

 

11,485

 

Noncontrolling interests in consolidated subsidiaries

 

 

2,538

 

 

 

2,560

 

Total equity

 

 

14,323

 

 

 

14,045

 

Total liabilities and equity

 

$

48,936

 

 

$

48,433

 

The Williams Companies, Inc.

Consolidated Statement of Cash Flows

(Unaudited)

 

 

Three Months Ended

March 31,

 

 

2023

 

 

 

2022

 

 

(Millions)

OPERATING ACTIVITIES:

 

Net income (loss)

$

957

 

 

$

392

 

Adjustments to reconcile to net cash provided (used) by operating activities:

 

 

 

Depreciation and amortization

 

506

 

 

 

498

 

Provision (benefit) for deferred income taxes

 

283

 

 

 

115

 

Equity (earnings) losses

 

(147

)

 

 

(136

)

Distributions from equity-method investees

 

208

 

 

 

212

 

Net unrealized (gain) loss from derivative instruments

 

(327

)

 

 

123

 

Inventory write-downs

 

18

 

 

 

 

Amortization of stock-based awards

 

17

 

 

 

21

 

Cash provided (used) by changes in current assets and liabilities:

 

 

 

Accounts receivable

 

1,269

 

 

 

(3

)

Inventories

 

27

 

 

 

178

 

Other current assets and deferred charges

 

(4

)

 

 

(65

)

Accounts payable

 

(1,017

)

 

 

(138

)

Accrued and other current liabilities

 

(318

)

 

 

(149

)

Changes in current and noncurrent derivative assets and liabilities

 

82

 

 

 

101

 

Other, including changes in noncurrent assets and liabilities

 

(40

)

 

 

(67

)

Net cash provided (used) by operating activities

 

1,514

 

 

 

1,082

 

FINANCING ACTIVITIES:

 

 

 

Proceeds from (payments of) commercial paper – net

 

(352

)

 

 

 

Proceeds from long-term debt

 

1,502

 

 

 

3

 

Payments of long-term debt

 

(7

)

 

 

(1,256

)

Proceeds from issuance of common stock

 

3

 

 

 

37

 

Purchases of treasury stock

 

(74

)

 

 

 

Common dividends paid

 

(546

)

 

 

(518

)

Dividends and distributions paid to noncontrolling interests

 

(54

)

 

 

(37

)

Contributions from noncontrolling interests

 

3

 

 

 

3

 

Payments for debt issuance costs

 

(8

)

 

 

 

Other – net

 

(17

)

 

 

(30

)

Net cash provided (used) by financing activities

 

450

 

 

 

(1,798

)

INVESTING ACTIVITIES:

 

 

 

Property, plant, and equipment:

 

 

 

Capital expenditures (1)

 

(545

)

 

 

(291

)

Dispositions – net

 

(7

)

 

 

(6

)

Contributions in aid of construction

 

11

 

 

 

(3

)

Purchases of businesses, net of cash acquired

 

(1,056

)

 

 

 

Purchases of and contributions to equity-method investments

 

(39

)

 

 

(56

)

Other – net

 

(3

)

 

 

(4

)

Net cash provided (used) by investing activities

 

(1,639

)

 

 

(360

)

Increase (decrease) in cash and cash equivalents

 

325

 

 

 

(1,076

)

Cash and cash equivalents at beginning of year

 

152

 

 

 

1,680

 

Cash and cash equivalents at end of period

$

477

 

 

$

604

 

_____________

 

 

 

(1) Increases to property, plant, and equipment

$

(484

)

 

$

(260

)

Changes in related accounts payable and accrued liabilities

 

(61

)

 

 

(31

)

Capital expenditures

$

(545

)

 

$

(291

)

Transmission & Gulf of Mexico

 

(UNAUDITED)

 

 

2022

 

 

2023

 

 

(Dollars in millions)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

 

1st Qtr

 

Regulated interstate natural gas transportation, storage, and other revenues (1)

$

730

 

$

717

 

$

734

 

$

758

 

$

2,939

 

 

$

774

 

 

Gathering, processing, storage and transportation revenues

 

82

 

 

84

 

 

99

 

 

100

 

 

365

 

 

 

100

 

 

Other fee revenues (1)

 

5

 

 

5

 

 

4

 

 

7

 

 

21

 

 

 

6

 

 

Commodity margins

 

15

 

 

11

 

 

10

 

 

7

 

 

43

 

 

 

10

 

 

Net unrealized gain (loss) from derivative instruments

 

 

 

 

 

1

 

 

(1

)

 

 

 

 

 

 

Operating and administrative costs (1)

 

(202

)

 

(227

)

 

(238

)

 

(239

)

 

(906

)

 

 

(254

)

 

Other segment income (expenses) - net (1)

 

19

 

 

17

 

 

(22

)

 

5

 

 

19

 

 

 

26

 

 

Proportional Modified EBITDA of equity-method investments

 

48

 

 

45

 

 

50

 

 

50

 

 

193

 

 

 

53

 

 

Modified EBITDA

 

697

 

 

652

 

 

638

 

 

687

 

 

2,674

 

 

 

715

 

 

Adjustments

 

 

 

 

 

33

 

 

13

 

 

46

 

 

 

13

 

 

Adjusted EBITDA

$

697

 

$

652

 

$

671

 

$

700

 

$

2,720

 

 

$

728

 

 

 

 

 

 

 

 

 

 

 

Statistics for Operated Assets

 

 

 

 

 

 

 

 

Natural Gas Transmission (2)

 

 

 

 

 

 

 

 

Transcontinental Gas Pipe Line

 

 

 

 

 

 

 

 

Avg. daily transportation volumes (MMdth)

 

15.0

 

 

13.5

 

 

14.7

 

 

14.2

 

 

14.4

 

 

 

14.3

 

 

Avg. daily firm reserved capacity (MMdth)

 

19.3

 

 

19.1

 

 

19.2

 

 

19.3

 

 

19.2

 

 

 

19.5

 

 

Northwest Pipeline LLC

 

 

 

 

 

 

 

 

Avg. daily transportation volumes (MMdth)

 

2.8

 

 

2.1

 

 

2.0

 

 

2.9

 

 

2.5

 

 

 

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

 

 

Avg. daily firm reserved capacity (MMdth)

 

 

 

 

 

 

 

 

 

 

 

 

7.8

 

 

Gulfstream - Non-consolidated

 

 

 

 

 

 

 

 

Avg. daily transportation volumes (MMdth)

 

0.9

 

 

1.3

 

 

1.4

 

 

1.1

 

 

1.3

 

 

 

1.0

 

 

Avg. daily firm reserved capacity (MMdth)

 

1.3

 

 

1.3

 

 

1.4

 

 

1.4

 

 

1.4

 

 

 

1.4

 

 

Gathering, Processing, and Crude Oil Transportation

 

 

 

 

 

 

 

 

Consolidated (4)

 

 

 

 

 

 

 

 

Gathering volumes (Bcf/d)

 

0.30

 

 

0.28

 

 

0.29

 

 

0.28

 

 

0.29

 

 

 

0.28

 

 

Plant inlet natural gas volumes (Bcf/d)

 

0.48

 

 

0.46

 

 

0.49

 

 

0.46

 

 

0.47

 

 

 

0.43

 

 

NGL production (Mbbls/d)

 

31

 

 

31

 

 

26

 

 

26

 

 

28

 

 

 

28

 

 

NGL equity sales (Mbbls/d)

 

7

 

 

7

 

 

4

 

 

5

 

 

6

 

 

 

7

 

 

Crude oil transportation volumes (Mbbls/d)

 

110

 

 

124

 

 

125

 

 

118

 

 

119

 

 

 

119

 

 

Non-consolidated (5)

 

 

 

 

 

 

 

 

Gathering volumes (Bcf/d)

 

0.39

 

 

0.37

 

 

0.41

 

 

0.42

 

 

0.40

 

 

 

0.36

 

 

Plant inlet natural gas volumes (Bcf/d)

 

0.38

 

 

0.37

 

 

0.41

 

 

0.42

 

 

0.40

 

 

 

0.36

 

 

NGL production (Mbbls/d)

 

28

 

 

26

 

 

29

 

 

29

 

 

28

 

 

 

28

 

 

NGL equity sales (Mbbls/d)

 

8

 

 

6

 

 

7

 

 

10

 

 

8

 

 

 

8

 

 

 

 

 

 

 

 

 

 

 

(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. Avg. daily transportation volumes and Avg. daily firm reserved capacity for 1st quarter 2023 if averaged over the entire period would have been 2.1 MMdth and 4.0 MMdth, respectively.

 

(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.

 

Northeast G&P

 

(UNAUDITED)

 

 

2022

 

 

2023

 

 

(Dollars in millions)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

 

1st Qtr

 

Gathering, processing, transportation, and fractionation revenues

$

323

 

$

350

 

$

354

 

$

368

 

$

1,395

 

 

$

391

 

 

Other fee revenues (1)

 

27

 

 

27

 

 

27

 

 

46

 

 

127

 

 

 

32

 

 

Commodity margins

 

6

 

 

1

 

 

3

 

 

 

 

10

 

 

 

5

 

 

Operating and administrative costs (1)

 

(85

)

 

(102

)

 

(101

)

 

(97

)

 

(385

)

 

 

(101

)

 

Other segment income (expenses) - net

 

(3

)

 

 

 

(1

)

 

(1

)

 

(5

)

 

 

 

 

Proportional Modified EBITDA of equity-method investments

 

150

 

 

174

 

 

182

 

 

148

 

 

654

 

 

 

143

 

 

Modified EBITDA

 

418

 

 

450

 

 

464

 

 

464

 

 

1,796

 

 

 

470

 

 

Adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

$

418

 

$

450

 

$

464

 

$

464

 

$

1,796

 

 

$

470

 

 

 

 

 

 

 

 

 

 

 

Statistics for Operated Assets and non-operated Blue Racer Midstream

 

 

 

 

 

 

 

 

Gathering and Processing

 

 

 

 

 

 

 

 

Consolidated (2)

 

 

 

 

 

 

 

 

Gathering volumes (Bcf/d)

 

4.03

 

 

4.19

 

 

4.22

 

 

4.31

 

 

4.19

 

 

 

4.45

 

 

Plant inlet natural gas volumes (Bcf/d)

 

1.46

 

 

1.70

 

 

1.74

 

 

1.70

 

 

1.65

 

 

 

1.92

 

 

NGL production (Mbbls/d)

 

110

 

 

118

 

 

125

 

 

127

 

 

120

 

 

 

144

 

 

NGL equity sales (Mbbls/d)

 

2

 

 

1

 

 

1

 

 

1

 

 

1

 

 

 

4

 

 

Non-consolidated (3)

 

 

 

 

 

 

 

 

Gathering volumes (Bcf/d)

 

6.62

 

 

6.76

 

 

6.58

 

 

6.48

 

 

6.61

 

 

 

6.97

 

 

Plant inlet natural gas volumes (Bcf/d)

 

0.66

 

 

0.76

 

 

0.66

 

 

0.77

 

 

0.71

 

 

 

0.77

 

 

NGL production (Mbbls/d)

 

50

 

 

53

 

 

45

 

 

56

 

 

51

 

 

 

54

 

 

NGL equity sales (Mbbls/d)

 

4

 

 

3

 

 

2

 

 

2

 

 

3

 

 

 

4

 

 

 

 

 

 

 

 

 

 

 

(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 the Marcellus South Supply Hub within the Appalachia Midstream Services partnership. Also, all periods include non-operated Blue Racer Midstream.

 

West

 

(UNAUDITED)

 

 

2022

 

 

2023

 

 

(Dollars in millions)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

 

1st Qtr

 

Net gathering, processing, transportation, storage, and fractionation revenues

$

317

 

$

360

 

$

397

 

$

401

 

$

1,475

 

 

$

382

 

 

Other fee revenues (1)

 

6

 

 

6

 

 

6

 

 

5

 

 

23

 

 

 

5

 

 

Commodity margins

 

23

 

 

25

 

 

27

 

 

27

 

 

102

 

 

 

(24

)

 

Operating and administrative costs (1)

 

(112

)

 

(133

)

 

(128

)

 

(133

)

 

(506

)

 

 

(115

)

 

Other segment income (expenses) - net

 

(1

)

 

(1

)

 

(6

)

 

(7

)

 

(15

)

 

 

23

 

 

Proportional Modified EBITDA of equity-method investments

 

27

 

 

31

 

 

41

 

 

33

 

 

132

 

 

 

33

 

 

Modified EBITDA

 

260

 

 

288

 

 

337

 

 

326

 

 

1,211

 

 

 

304

 

 

Adjustments

 

 

 

8

 

 

 

 

 

 

8

 

 

 

(18

)

 

Adjusted EBITDA

$

260

 

$

296

 

$

337

 

$

326

 

$

1,219

 

 

$

286

 

 

 

 

 

 

 

 

 

 

 

Statistics for Operated Assets

 

 

 

 

 

 

 

 

Gathering and Processing

 

 

 

 

 

 

 

 

Consolidated (2)

 

 

 

 

 

 

 

 

Gathering volumes (Bcf/d) (3)

 

3.47

 

 

5.14

 

 

5.20

 

 

5.50

 

 

5.19

 

 

 

5.47

 

 

Plant inlet natural gas volumes (Bcf/d)

 

1.13

 

 

1.14

 

 

1.21

 

 

1.10

 

 

1.15

 

 

 

0.92

 

 

NGL production (Mbbls/d)

 

47

 

 

49

 

 

45

 

 

32

 

 

43

 

 

 

25

 

 

NGL equity sales (Mbbls/d)

 

17

 

 

18

 

 

13

 

 

7

 

 

14

 

 

 

6

 

 

Non-consolidated (4)

 

 

 

 

 

 

 

 

Gathering volumes (Bcf/d)

 

0.28

 

 

0.28

 

 

0.29

 

 

0.29

 

 

0.29

 

 

 

0.32

 

 

Plant inlet natural gas volumes (Bcf/d)

 

0.27

 

 

0.28

 

 

0.29

 

 

0.29

 

 

0.28

 

 

 

0.32

 

 

NGL production (Mbbls/d)

 

31

 

 

32

 

 

34

 

 

32

 

 

33

 

 

 

37

 

 

NGL and Crude Oil Transportation volumes (Mbbls/d) (5)

 

118

 

 

144

 

 

172

 

 

151

 

 

146

 

 

 

153

 

 

 

 

 

 

 

 

 

 

 

(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 Trace Acquisition gathering assets after the purchase on April 29, 2022. Average volumes were calculated over the period owned. Volumes for 2nd quarter 2022 and year-to-date 2022 if averaged over the entire period would have been 4.68 Bcf/d and 4.72 Bcf/d, respectively.

 

(4) Includes 100% of the volumes associated with operated equity-method investments, including Rocky Mountain Midstream.

 

(5) Includes 100% of the volumes associated with operated equity-method investments, including Overland Pass Pipeline Company and Rocky Mountain Midstream.

 

Gas & NGL Marketing Services

 

(UNAUDITED)

 

 

2022

 

 

2023

 

 

(Dollars in millions)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

 

1st Qtr

 

Commodity margins

$

100

 

$

23

 

$

39

 

$

161

 

$

323

 

 

$

265

 

 

Other fee revenues

 

1

 

 

 

 

1

 

 

1

 

 

3

 

 

 

1

 

 

Net unrealized gain (loss) from derivative instruments

 

(57

)

 

(288

)

 

5

 

 

66

 

 

(274

)

 

 

333

 

 

Operating and administrative costs

 

(31

)

 

(23

)

 

(24

)

 

(18

)

 

(96

)

 

 

(32

)

 

Other segment income (expenses) - net

 

 

 

6

 

 

(1

)

 

(1

)

 

4

 

 

 

 

 

Modified EBITDA

 

13

 

 

(282

)

 

20

 

 

209

 

 

(40

)

 

 

567

 

 

Adjustments

 

52

 

 

288

 

 

18

 

 

(60

)

 

298

 

 

 

(336

)

 

Adjusted EBITDA

$

65

 

$

6

 

$

38

 

$

149

 

$

258

 

 

$

231

 

 

 

 

 

 

 

 

 

 

 

Statistics

 

 

 

 

 

 

 

 

Product Sales Volumes

 

 

 

 

 

 

 

 

Natural Gas (Bcf/d)

 

7.96

 

 

6.66

 

 

7.11

 

 

7.05

 

 

7.20

 

 

 

7.24

 

 

NGLs (Mbbls/d)

 

246

 

 

234

 

 

267

 

 

254

 

 

250

 

 

 

234

 

 

 

 

 

 

 

 

 

 

 

Other

 

(UNAUDITED)

 

 

2022

 

 

2023

 

 

(Dollars in millions)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

 

1st Qtr

 

Service revenues

$

9

 

$

7

 

$

6

 

$

2

 

$

24

 

 

$

3

 

 

Net realized product sales

 

96

 

 

142

 

 

180

 

 

184

 

 

602

 

 

 

120

 

 

Net unrealized gain (loss) from derivative instruments

 

(66

)

 

47

 

 

29

 

 

15

 

 

25

 

 

 

(6

)

 

Operating and administrative costs

 

(33

)

 

(57

)

 

(62

)

 

(59

)

 

(211

)

 

 

(48

)

 

Other segment income (expenses) - net

 

(1

)

 

 

 

(13

)

 

8

 

 

(6

)

 

 

5

 

 

Modified EBITDA

 

5

 

 

139

 

 

140

 

 

150

 

 

434

 

 

 

74

 

 

Adjustments

 

66

 

 

(47

)

 

(13

)

 

(15

)

 

(9

)

 

 

6

 

 

Adjusted EBITDA

$

71

 

$

92

 

$

127

 

$

135

 

$

425

 

 

$

80

 

 

 

 

 

 

 

 

 

 

 

Statistics

 

 

 

 

 

 

 

 

Net Product Sales Volumes

 

 

 

 

 

 

 

 

Natural Gas (Bcf/d)

 

0.12

 

 

0.19

 

 

0.27

 

 

0.31

 

 

0.22

 

 

 

0.26

 

 

NGLs (Mbbls/d)

 

7

 

 

7

 

 

8

 

 

7

 

 

7

 

 

 

3

 

 

Crude Oil (Mbbls/d)

 

2

 

 

3

 

 

2

 

 

2

 

 

2

 

 

 

1

 

 

 

 

Capital Expenditures and Investments

 

(UNAUDITED)

 

 

2022

 

 

2023

 

(Dollars in millions)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

 

1st Qtr

 

 

 

 

 

 

 

 

 

 

Capital expenditures:

 

 

 

 

 

 

 

 

Transmission & Gulf of Mexico

$

125

 

$

129

 

$

637

 

$

358

 

$

1,249

 

 

$

205

 

Northeast G&P

 

40

 

 

30

 

 

52

 

 

92

 

 

214

 

 

 

99

 

West

 

61

 

 

82

 

 

94

 

 

226

 

 

463

 

 

 

169

 

Other

 

65

 

 

74

 

 

58

 

 

130

 

 

327

 

 

 

72

 

Total (1)

$

291

 

$

315

 

$

841

 

$

806

 

$

2,253

 

 

$

545

 

 

 

 

 

 

 

 

 

 

Purchases of and contributions to equity-method investments:

 

 

 

 

 

 

 

 

Transmission & Gulf of Mexico

$

16

 

$

26

 

$

11

 

$

17

 

$

70

 

 

$

8

 

Northeast G&P

 

32

 

 

18

 

 

28

 

 

8

 

 

86

 

 

 

31

 

Other

 

8

 

 

 

 

1

 

 

1

 

 

10

 

 

 

 

Total

$

56

 

$

44

 

$

40

 

$

26

 

$

166

 

 

$

39

 

 

 

 

 

 

 

 

 

 

Summary:

 

 

 

 

 

 

 

 

Transmission & Gulf of Mexico

$

141

 

$

155

 

$

648

 

$

375

 

$

1,319

 

 

$

213

 

Northeast G&P

 

72

 

 

48

 

 

80

 

 

100

 

 

300

 

 

 

130

 

West

 

61

 

 

82

 

 

94

 

 

226

 

 

463

 

 

 

169

 

Other

 

73

 

 

74

 

 

59

 

 

131

 

 

337

 

 

 

72

 

Total

$

347

 

$

359

 

$

881

 

$

832

 

$

2,419

 

 

$

584

 

 

 

 

 

 

 

 

 

 

Capital investments:

 

 

 

 

 

 

 

 

Increases to property, plant, and equipment

$

260

 

$

382

 

$

907

 

$

845

 

$

2,394

 

 

$

484

 

Purchases of businesses, net of cash acquired

 

 

 

933

 

 

 

 

 

 

933

 

 

 

1,056

 

Purchases of and contributions to equity-method investments

 

56

 

 

44

 

 

40

 

 

26

 

 

166

 

 

 

39

 

Purchases of other long-term investments

 

 

 

3

 

 

3

 

 

5

 

 

11

 

 

 

2

 

Total

$

316

 

$

1,362

 

$

950

 

$

876

 

$

3,504

 

 

$

1,581

 

 

 

 

 

 

 

 

 

 

(1) Increases to property, plant, and equipment

$

260

 

$

382

 

$

907

 

$

845

 

$

2,394

 

 

$

484

 

Changes in related accounts payable and accrued liabilities

 

31

 

 

(67

)

 

(66

)

 

(39

)

 

(141

)

 

 

61

 

Capital expenditures

$

291

 

$

315

 

$

841

 

$

806

 

$

2,253

 

 

$

545

 

 

 

 

 

 

 

 

 

 

Contributions from noncontrolling interests

$

3

 

$

5

 

$

7

 

$

3

 

$

18

 

 

$

3

 

Contributions in aid of construction

$

(3

)

$

9

 

$

2

 

$

4

 

$

12

 

 

$

11

 

Proceeds from disposition of equity-method investments

$

 

$

 

$

7

 

$

 

$

7

 

 

$

 

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 and adjusted earnings per share. 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)

 

 

2022

 

 

2023

 

 

(Dollars in millions, except per-share amounts)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

 

1st Qtr

 

 

 

 

 

 

 

 

 

 

Income (loss) attributable to The Williams Companies, Inc. available to common stockholders

$

379

 

$

400

 

$

599

 

$

668

 

$

2,046

 

 

$

926

 

 

 

 

 

 

 

 

 

 

 

Income (loss) - diluted earnings (loss) per common share (1)

$

.31

 

$

.33

 

$

.49

 

$

.55

 

$

1.67

 

 

$

.76

 

 

Adjustments:

 

 

 

 

 

 

 

 

Transmission & Gulf of Mexico

 

 

 

 

 

 

 

 

Loss related to Eminence storage cavern abandonments and monitoring

$

 

$

 

$

19

 

$

12

 

$

31

 

 

$

 

 

Regulatory liability charges associated with decrease in Transco’s estimated deferred state income tax rate

 

 

 

 

 

15

 

 

 

 

15

 

 

 

 

 

Net unrealized (gain) loss from derivative instruments

 

 

 

 

 

(1

)

 

1

 

 

 

 

 

 

 

MountainWest acquisition and transition-related costs

 

 

 

 

 

 

 

 

 

 

 

 

13

 

 

Total Transmission & Gulf of Mexico adjustments

 

 

 

 

 

33

 

 

13

 

 

46

 

 

 

13

 

 

West

 

 

 

 

 

 

 

 

Trace acquisition costs

 

 

 

8

 

 

 

 

 

 

8

 

 

 

 

 

Gain from contract settlement

 

 

 

 

 

 

 

 

 

 

 

 

(18

)

 

Total West adjustments

 

 

 

8

 

 

 

 

 

 

8

 

 

 

(18

)

 

Gas & NGL Marketing Services

 

 

 

 

 

 

 

 

Amortization of purchase accounting inventory fair value adjustment

 

15

 

 

 

 

 

 

 

 

15

 

 

 

 

 

Impact of volatility on NGL linefill transactions

 

(20

)

 

 

 

23

 

 

6

 

 

9

 

 

 

(3

)

 

Net unrealized (gain) loss from derivative instruments

 

57

 

 

288

 

 

(5

)

 

(66

)

 

274

 

 

 

(333

)

 

Total Gas & NGL Marketing Services adjustments

 

52

 

 

288

 

 

18

 

 

(60

)

 

298

 

 

 

(336

)

 

Other

 

 

 

 

 

 

 

 

Regulatory liability charge associated with decrease in Transco’s estimated deferred state income tax rate

 

 

 

 

 

5

 

 

 

 

5

 

 

 

 

 

Net unrealized (gain) loss from derivative instruments

 

66

 

 

(47

)

 

(29

)

 

(15

)

 

(25

)

 

 

6

 

 

Accrual for loss contingencies

 

 

 

 

 

11

 

 

 

 

11

 

 

 

 

 

Total Other adjustments

 

66

 

 

(47

)

 

(13

)

 

(15

)

 

(9

)

 

 

6

 

 

Adjustments included in Modified EBITDA

 

118

 

 

249

 

 

38

 

 

(62

)

 

343

 

 

 

(335

)

 

Adjustments below Modified EBITDA

 

 

 

 

 

 

 

 

Amortization of intangible assets from Sequent acquisition

 

42

 

 

41

 

 

42

 

 

42

 

 

167

 

 

 

15

 

 

Depreciation adjustment related to Eminence storage cavern abandonments

 

 

 

 

 

(1

)

 

 

 

(1

)

 

 

 

 

 

 

42

 

 

41

 

 

41

 

 

42

 

 

166

 

 

 

15

 

 

Total adjustments

 

160

 

 

290

 

 

79

 

 

(20

)

 

509

 

 

 

(320

)

 

Less tax effect for above items

 

(40

)

 

(72

)

 

(17

)

 

5

 

 

(124

)

 

 

78

 

 

Adjustments for tax-related items (2)

 

 

 

(134

)

 

(69

)

 

 

 

(203

)

 

 

 

 

Adjusted income available to common stockholders

$

499

 

$

484

 

$

592

 

$

653

 

$

2,228

 

 

$

684

 

 

Adjusted income - diluted earnings per common share (1)

$

.41

 

$

.40

 

$

.48

 

$

.53

 

$

1.82

 

 

$

.56

 

 

Weighted-average shares - diluted (thousands)

 

1,221,279

 

 

1,222,694

 

 

1,222,472

 

 

1,224,212

 

 

1,222,672

 

 

 

1,225,781

 

 

(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 second quarter of 2022 includes adjustments for the reversal of valuation allowance due to the expected utilization of certain deferred income tax assets and previously unrecognized tax benefits from the resolution of certain federal income tax audits. The third quarter of 2022 includes an unfavorable adjustment to reverse the net benefit primarily associated with a significant decrease in our estimated deferred state income tax rate, partially offset by an unfavorable revision to a state net operating loss carryforward.

 

Reconciliation of "Net Income (Loss)" to “Modified EBITDA” and Non-GAAP “Adjusted EBITDA”

 

(UNAUDITED)

 

 

2022

 

 

2023

 

 

(Dollars in millions)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

 

1st Qtr

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$

392

 

$

407

 

$

621

 

$

697

 

$

2,117

 

 

$

957

 

 

Provision (benefit) for income taxes

 

118

 

 

(45

)

 

96

 

 

256

 

 

425

 

 

 

284

 

 

Interest expense

 

286

 

 

281

 

 

291

 

 

289

 

 

1,147

 

 

 

294

 

 

Equity (earnings) losses

 

(136

)

 

(163

)

 

(193

)

 

(145

)

 

(637

)

 

 

(147

)

 

Other investing (income) loss - net

 

(1

)

 

(2

)

 

(1

)

 

(12

)

 

(16

)

 

 

(8

)

 

Proportional Modified EBITDA of equity-method investments

 

225

 

 

250

 

 

273

 

 

231

 

 

979

 

 

 

229

 

 

Depreciation and amortization expenses

 

498

 

 

506

 

 

500

 

 

505

 

 

2,009

 

 

 

506

 

 

Accretion expense associated with asset retirement obligations for nonregulated operations

 

11

 

 

13

 

 

12

 

 

15

 

 

51

 

 

 

15

 

 

Modified EBITDA

$

1,393

 

$

1,247

 

$

1,599

 

$

1,836

 

$

6,075

 

 

$

2,130

 

 

 

 

 

 

 

 

 

 

 

Transmission & Gulf of Mexico

$

697

 

$

652

 

$

638

 

$

687

 

$

2,674

 

 

$

715

 

 

Northeast G&P

 

418

 

 

450

 

 

464

 

 

464

 

 

1,796

 

 

 

470

 

 

West

 

260

 

 

288

 

 

337

 

 

326

 

 

1,211

 

 

 

304

 

 

Gas & NGL Marketing Services

 

13

 

 

(282

)

 

20

 

 

209

 

 

(40

)

 

 

567

 

 

Other

 

5

 

 

139

 

 

140

 

 

150

 

 

434

 

 

 

74

 

 

Total Modified EBITDA

$

1,393

 

$

1,247

 

$

1,599

 

$

1,836

 

$

6,075

 

 

$

2,130

 

 

 

 

 

 

 

 

 

 

 

Adjustments (1):

 

 

 

 

 

 

 

 

Transmission & Gulf of Mexico

$

 

$

 

$

33

 

$

13

 

$

46

 

 

$

13

 

 

West

 

 

 

8

 

 

 

 

 

 

8

 

 

 

(18

)

 

Gas & NGL Marketing Services

 

52

 

 

288

 

 

18

 

 

(60

)

 

298

 

 

 

(336

)

 

Other

 

66

 

 

(47

)

 

(13

)

 

(15

)

 

(9

)

 

 

6

 

 

Total Adjustments

$

118

 

$

249

 

$

38

 

$

(62

)

$

343

 

 

$

(335

)

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA:

 

 

 

 

 

 

 

 

Transmission & Gulf of Mexico

$

697

 

$

652

 

$

671

 

$

700

 

$

2,720

 

 

$

728

 

 

Northeast G&P

 

418

 

 

450

 

 

464

 

 

464

 

 

1,796

 

 

 

470

 

 

West

 

260

 

 

296

 

 

337

 

 

326

 

 

1,219

 

 

 

286

 

 

Gas & NGL Marketing Services

 

65

 

 

6

 

 

38

 

 

149

 

 

258

 

 

 

231

 

 

Other

 

71

 

 

92

 

 

127

 

 

135

 

 

425

 

 

 

80

 

 

Total Adjusted EBITDA

$

1,511

 

$

1,496

 

$

1,637

 

$

1,774

 

$

6,418

 

 

$

1,795

 

 

 

 

 

 

 

 

 

 

 

(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 Cash Flow from Operating Activities to Available Funds from Operations (AFFO)

 

(UNAUDITED)

 

 

2022

 

 

2023

 

 

(Dollars in millions, except coverage ratios)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

 

1st Qtr

 

 

 

 

 

 

 

 

 

 

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

$

1,082

 

$

1,098

 

$

1,490

 

$

1,219

 

$

4,889

 

 

$

1,514

 

 

Exclude: Cash (provided) used by changes in:

 

 

 

 

 

 

 

 

Accounts receivable

 

3

 

 

794

 

 

(125

)

 

61

 

 

733

 

 

 

(1,269

)

 

Inventories, including write-downs

 

(178

)

 

177

 

 

77

 

 

(127

)

 

(51

)

 

 

(45

)

 

Other current assets and deferred charges

 

65

 

 

(50

)

 

47

 

 

(29

)

 

33

 

 

 

4

 

 

Accounts payable

 

138

 

 

(828

)

 

(53

)

 

333

 

 

(410

)

 

 

1,017

 

 

Accrued and other current liabilities

 

149

 

 

(125

)

 

(191

)

 

(42

)

 

(209

)

 

 

318

 

 

Changes in current and noncurrent derivative assets and liabilities

 

(101

)

 

52

 

 

(37

)

 

(8

)

 

(94

)

 

 

(82

)

 

Other, including changes in noncurrent assets and liabilities

 

67

 

 

65

 

 

73

 

 

11

 

 

216

 

 

 

40

 

 

Preferred dividends paid

 

(1

)

 

 

 

(1

)

 

(1

)

 

(3

)

 

 

(1

)

 

Dividends and distributions paid to noncontrolling interests

 

(37

)

 

(58

)

 

(46

)

 

(63

)

 

(204

)

 

 

(54

)

 

Contributions from noncontrolling interests

 

3

 

 

5

 

 

7

 

 

3

 

 

18

 

 

 

3

 

 

Available funds from operations

$

1,190

 

$

1,130

 

$

1,241

 

$

1,357

 

$

4,918

 

 

$

1,445

 

 

 

 

 

 

 

 

 

 

 

Common dividends paid

$

518

 

$

517

 

$

518

 

$

518

 

$

2,071

 

 

$

546

 

 

 

 

 

 

 

 

 

 

 

Coverage ratio:

 

 

 

 

 

 

 

 

Available funds from operations divided by Common dividends paid

 

2.30

 

 

2.19

 

 

2.40

 

 

2.62

 

 

2.37

 

 

 

2.65

 

 

 

 

 

 

 

 

 

 

 

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)

 

 

 

2023 Guidance

(Dollars in millions, except per-share amounts and coverage ratio)

 

Low

 

Mid

 

High

 

 

 

 

 

 

 

Net income (loss)

 

$

2,080

 

$

2,230

 

 

$

2,380

Provision (benefit) for income taxes

 

 

665

 

 

715

 

 

 

765

Interest expense

 

 

 

 

1,220

 

 

 

Equity (earnings) losses

 

 

 

 

(580

)

 

 

Proportional Modified EBITDA of equity-method investments

 

 

 

 

930

 

 

 

Depreciation and amortization expenses and accretion for asset retirement obligations associated with nonregulated operations

 

 

 

 

2,065

 

 

 

Other

 

 

 

 

(14

)

 

 

Modified EBITDA

 

$

6,366

 

$

6,566

 

 

$

6,766

EBITDA Adjustments

 

 

 

 

34

 

 

 

Adjusted EBITDA

 

$

6,400

 

$

6,600

 

 

$

6,800

 

 

 

 

 

 

 

Net income (loss)

 

$

2,080

 

$

2,230

 

 

$

2,380

Less: Net income (loss) attributable to noncontrolling interests & preferred dividends

 

 

 

 

100

 

 

 

Net income (loss) attributable to The Williams Companies, Inc. available to common stockholders

 

$

1,980

 

$

2,130

 

 

$

2,280

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

Adjustments included in Modified EBITDA (1)

 

 

 

 

34

 

 

 

Adjustments below Modified EBITDA (2)

 

 

 

 

59

 

 

 

Allocation of adjustments to noncontrolling interests

 

 

 

 

 

 

 

Total adjustments

 

 

 

 

93

 

 

 

Less tax effect for above items

 

 

 

 

(23

)

 

 

Adjusted income available to common stockholders

 

$

2,050

 

$

2,200

 

 

$

2,350

Adjusted diluted earnings per common share

 

$

1.67

 

$

1.80

 

 

$

1.92

Weighted-average shares - diluted (millions)

 

 

 

 

1,225

 

 

 

 

 

 

 

 

 

 

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)

 

$

4,900

 

$

5,100

 

 

$

5,300

Preferred dividends paid

 

 

 

 

(3

)

 

 

Dividends and distributions paid to noncontrolling interests

 

 

 

 

(225

)

 

 

Contributions from noncontrolling interests

 

 

 

 

53

 

 

 

Available funds from operations (AFFO)

 

$

4,725

 

$

4,925

 

 

$

5,125

AFFO per common share

 

$

3.86

 

$

4.02

 

 

$

4.18

Common dividends paid

 

 

 

$

2,190

 

 

 

Coverage Ratio (AFFO/Common dividends paid)

 

2.16x

 

2.25x

 

2.34x

 

 

 

 

 

 

 

(1) Includes transaction and transition costs associated with the MountainWest acquisition

(2) Includes amortization of Sequent intangible asset of $59 million

 

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:

  • 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 to obtain necessary permits and approvals, and achieve favorable rate proceeding outcomes;
  • Our exposure to the credit risk of our customers and counterparties;
  • Our ability to acquire new businesses and assets and successfully integrate those operations and assets into existing businesses as well as successfully expand our facilities, and to consummate asset sales on acceptable terms;
  • Whether we are able to successfully identify, evaluate, and timely execute our capital projects and investment opportunities;
  • The strength and financial resources of our competitors and the effects of competition;
  • The amount of cash distributions from and capital requirements of our investments and joint ventures in which we participate;
  • Whether we will be able to effectively execute our financing plan;
  • Increasing scrutiny and changing expectations from stakeholders with respect to our environmental, social, and governance practices;
  • The physical and financial risks associated with climate change;
  • The impacts of operational and developmental hazards and unforeseen interruptions;
  • The risks resulting from outbreaks or other public health crises, including COVID-19;
  • 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;
  • 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, 2022, as filed with the SEC on February 27, 2023.

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.
 
 
Copyright © 2010-2020 SantaClara.com & California Media Partners, LLC. All rights reserved.