Sign In  |  Register  |  About Mill Valley  |  Contact Us

Mill Valley, CA
September 01, 2020 1:29pm
7-Day Forecast | Traffic
  • Search Hotels in Mill Valley

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

Williams Reports Strong Third-Quarter Results

Williams (NYSE: WMB) today announced its unaudited financial results for the three and nine months ended September 30, 2023.

Continued strength in base business delivers another quarter of solid financial results

  • GAAP net income of $654 million, or $0.54 per diluted share (EPS) – up 10% vs. 3Q 2022
  • Adjusted net income of $547 million, or $0.45 per diluted share (Adjusted EPS)
  • Adjusted EBITDA of $1.652 billion – up $15 million from 3Q 2022
  • Cash flow from operations (CFFO) of $1.234 billion
  • Available funds from operations (AFFO) of $1.230 billion
  • Dividend coverage ratio of 2.26x (AFFO basis)
  • Increased midpoint for full-year 2023 guidance to $6.7 billion Adjusted EBITDA
  • Continued improvement of balance sheet with leverage ratio of 3.45x

Steadfast project execution to drive additional business growth in 2023 and beyond; sale of non-core assets and strategic acquisitions fine-tune portfolio

  • Placed in-service phase one of Transco's Regional Energy Access expansion Oct. 21 ahead of schedule
  • Signed precedent agreements on Transco's Southeast Supply Enhancement
  • Signed anchor shipper precedent agreement on MountainWest Uinta Basin expansion project
  • Completed NorTex Wolf Hollow, South Mansfield and phase one of Northeast Cardinal Utica expansions
  • Sold non-core Bayou Ethane system for an attractive multiple greater than 14x
  • Delaware Supreme Court affirms previous rulings in long-standing suit; Energy Transfer ordered to pay $602 million plus additional interest accrued during the appeal to Williams for failed merger
  • Optimizing position in DJ Basin through Rocky Mountain Midstream and Cureton Front Range LLC acquisitions
  • Assuming operatorship of non-consolidated Blue Racer joint venture
  • Supporting two clean hydrogen hubs announced by U.S. Department of Energy

CEO Perspective

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

“Williams delivered another quarter of impressive accomplishments with Adjusted EBITDA up 9 percent year-to-date 2023, despite dramatically lower natural gas prices. We expect the strong performance to continue, providing confidence to raise our guidance midpoint by $100 million to $6.7 billion Adjusted EBITDA for 2023.

"Our teams have done an excellent job executing our large-scale expansion projects in a complex and challenging permitting environment. We placed the first phase of our latest Transco expansion project, Regional Energy Access, into service ahead of schedule, progressed on an additional 2 Bcf/d of Transco expansions for completion by year-end 2025, and executed precedent agreements on the 1.4 Bcf/d Southeast Supply Enhancement project. Our teams also successfully integrated MountainWest into our operations and are executing on more profitable growth with this asset than we had planned. Additionally, we have once again optimized our portfolio, using proceeds from the sale of non-core assets, along with expected proceeds from a recent legal judgement, to strengthen our position and capture tangible synergies in the DJ Basin."

Armstrong added, “Williams has proven its ability to predictably grow through a variety of commodity cycles, and our natural gas strategy is more relevant than ever as demand for natural gas continues to increase, especially to serve electric power generation and LNG exports. Williams is well positioned to capture significant future growth and return value to our shareholders, while we reliably deliver the benefits of natural gas to the United States and abroad."

Williams Summary Financial Information

3Q

 

Year to Date

Amounts in millions, except ratios and per-share amounts. Per share amounts are reported on a diluted basis. Net income amounts are from continuing operations attributable to The Williams Companies, Inc. available to common stockholders.

2023

2022

 

2023

2022

 

 

 

 

 

 

GAAP Measures

 

 

 

 

 

Net Income

$654

$599

 

$2,127

$1,378

Net Income Per Share

$0.54

$0.49

 

$1.74

$1.13

Cash Flow From Operations

$1,234

$1,490

 

$4,125

$3,670

 

 

 

 

 

 

Non-GAAP Measures (1)

 

 

 

 

 

Adjusted EBITDA

$1,652

$1,637

 

$5,058

$4,644

Adjusted Net Income

$547

$592

 

$1,746

$1,575

Adjusted Earnings Per Share

$0.45

$0.48

 

$1.43

$1.29

Available Funds from Operations

$1,230

$1,241

 

$3,890

$3,561

Dividend Coverage Ratio

2.26x

2.40x

 

2.38x

2.29x

 

 

 

 

 

 

Other

 

 

 

 

 

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

3.45x

3.68x

 

 

 

Capital Investments (3) (4)

$805

$526

 

$2,045

$1,271

 

 

 

 

 

 

(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) Third-quarter and year-to-date 2023 capital excludes ($29 million) and $1.024 billion, respectively for the acquisition of MountainWest Pipeline Holding company, which closed February 14, 2023. Third-quarter and year-to-date 2022 capital excludes $424 million for the purchase of NorTex Midstream, which closed August 31, 2022. Year-to-date 2022 capital also excludes $933 million for purchase of the Trace Midstream Haynesville gathering assets, which closed April 29, 2022.

GAAP Measures

Third-quarter 2023 net income increased by $55 million compared to the prior year reflecting a $130 million gain on the sale of the Bayou Ethane system and the benefit of higher service revenues driven by contributions from recent acquisitions and increased volumes and rates in the Northeast G&P segment. These improvements were partially offset by our $31 million share of a loss contingency accrual on our Aux Sable equity-method investment and lower results from our upstream business reflecting lower prices partially offset by higher production volumes, and higher operating expenses. The tax provision increased $80 million primarily due to a lower benefit associated with decreases in our estimate of the state deferred income tax rate in both periods and higher pretax income, partially offset by the absence of an unfavorable revision to a state net operating loss carryforward in 2022.

For year-to-date 2023, net income increased $749 million compared to the prior year reflecting a favorable change of $762 million in net unrealized gains/losses on commodity derivatives. Other drivers of the year-to-date increase are similar to those described for the quarterly comparison, except that improved marketing margins more than offset lower natural gas liquids (NGL) processing margins for the year-to-date period. The tax provision increased primarily due to higher pretax income and the absence of $134 million benefit associated with the release of valuation allowances on deferred income tax assets and federal income tax settlements recorded in the prior year, and a lower benefit associated with decreases in our estimate of the state deferred income tax rate in both periods. The year-to-date 2023 period also reported a loss from discontinued operations associated with an adverse legal ruling involving former refinery operations.

Cash flow from operations for the third-quarter decreased compared to the prior year primarily due to unfavorable net changes in working capital and lower distributions from certain equity method investments, partially offset by higher operating results exclusive of noncash items. Year-to-date cash flow from operations increased compared to the prior year primarily due to higher operating results exclusive of non-cash items and favorable changes in derivative margin requirements, partially offset by lower distributions from certain equity method investments.

Non-GAAP Measures

Third-quarter 2023 Adjusted EBITDA increased by $15 million over the prior year, driven by the previously described higher service revenues, partially offset by reduced upstream results, lower marketing margins, higher operating costs and lower JV proportional EBITDA. Year-to-date 2023 Adjusted EBITDA increased by $414 million over the prior year, driven by similar factors, except that marketing margins were overall improved.

Third-quarter 2023 Adjusted Net Income decreased by $45 million compared to 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, the gain on the sale of certain Gulf coast liquids pipelines, amortization of certain assets from the Sequent acquisition, our share of Aux Sable’s loss contingency accrual, NGL linefill volatility, and favorable income tax benefits. Year-to-date Adjusted Net Income increased by $171 million over the prior year driven by the previously described impacts to year-to-date income, adjusted primarily for similar items.

Third-quarter 2023 Available Funds From Operations (AFFO) decreased slightly by $11 million compared to the prior year primarily due to lower distributions from certain equity method investments partially offset by higher operating results exclusive of noncash items. Year-to-date 2023 AFFO increased by $329 million primarily reflecting higher results from continuing operations exclusive of non-cash items partially offset by lower distributions from certain equity method investments.

 

Third Quarter

 

Year to Date

Amounts in millions

Modified EBITDA

 

Adjusted EBITDA

 

Modified EBITDA

 

Adjusted EBITDA

3Q 2023

3Q 2022

Change

 

3Q 2023

3Q 2022

Change

 

2023

2022

 

Change

 

2023

2022

Change

Transmission & Gulf of Mexico

$881

$638

$243

 

 

$754

$671

$83

 

 

$2,327

$1,987

 

$340

 

 

$2,230

$2,020

$210

 

Northeast G&P

454

464

(10

)

 

485

464

21

 

 

1,439

1,332

 

107

 

 

1,470

1,332

138

 

West

315

337

(22

)

 

315

337

(22

)

 

931

885

 

46

 

 

913

893

20

 

Gas & NGL Marketing Services

43

20

23

 

 

16

38

(22

)

 

678

(249

)

927

 

 

231

109

122

 

Other

81

140

(59

)

 

82

127

(45

)

 

196

284

 

(88

)

 

214

290

(76

)

Total

$1,774

$1,599

$175

 

 

$1,652

$1,637

$15

 

 

$5,571

$4,239

 

$1,332

 

 

$5,058

$4,644

$414

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

Third-quarter and year-to-date 2023 Modified and Adjusted EBITDA improved compared to the prior year driven by the MountainWest and NorTex Midstream acquisitions, higher service revenues, lower employee-related costs and increased benefit of allowance for equity funds used during construction. Modified EBITDA for 2023 was further impacted by the gain on the sale the Bayou Ethane system and one-time MountainWest acquisition and transition costs, while 2022 included a loss related to Eminence storage cavern abandonments and a regulatory charge associated with Transco’s deferred state income tax rate, all of which are excluded from Adjusted EBITDA.

Northeast G&P

Third-quarter and year-to-date 2023 Modified and Adjusted EBITDA reflect increased gathering rates and volumes, partially offset by lower rates at Laurel Mountain Midstream and Bradford joint ventures compared to the prior year. Modified EBITDA for 2023 also reflects our share of a loss contingency accrual at Aux Sable which is excluded from Adjusted EBITDA.

West

Third-quarter 2023 Modified and Adjusted EBITDA decreased compared to the prior year primarily reflecting lower NYMEX-based rates in the Barnett partially offset by favorable changes in realized gains on natural gas hedges. Year-to-date Modified and Adjusted EBITDA improved compared to the prior year driven by higher service revenues reflecting realized gains on natural gas hedges and higher Haynesville volumes, partially offset by lower NYMEX-based rates in the Barnett, as well increased JV EBITDA. The year-to-date period improvement also included contributions from Trace Midstream acquired in April 2022 and lower processing margins reflecting a short-term gas price spike at Opal early in the year and severe weather impacts.

Gas & NGL Marketing Services

Third-quarter 2023 Modified EBITDA improved from the prior year primarily reflecting a net favorable change in unrealized gains/losses on commodity derivatives. Year-to-date 2023 Modified EBITDA improved from the prior year primarily reflecting higher commodity marketing margins and a $791 million net favorable change in unrealized gains/losses on commodity derivatives. The unrealized gains/losses on commodity derivatives are excluded from Adjusted EBITDA.

Other

Third-quarter and year-to-date 2023 Modified and Adjusted EBITDA decreased compared to the prior year primarily reflecting lower results from our upstream business driven by lower prices, partially offset by higher production volumes. Modified EBITDA also includes net unfavorable changes in unrealized gains/losses on commodity derivatives for both the quarter and year-to-date comparative periods, which is excluded from Adjusted EBITDA.

Optimizing portfolio through non-core asset sale and re-investing in assets strategic to footprint

In the third quarter, Williams sold its Bayou Ethane system for $348 million in cash, representing a last-twelve-month multiple over 14x Adjusted EBITDA. The transaction includes long-term ethane take away agreements, locking in flow assurance for Discovery and Mobile Bay producers. The proceeds from the sale will contribute to funding Williams’ extensive portfolio of attractive growth capital investments, including transactions in Colorado’s Denver-Julesburg (“DJ”) Basin:

  • Williams has agreed to acquire Cureton Front Range LLC, whose assets include gas gathering pipelines and two processing plants to serve producers across 225,000 dedicated acres.
  • Williams has also agreed to purchase KKR’s 50 percent ownership interest in Rocky Mountain Midstream, resulting in 100 percent ownership of Rocky Mountain Midstream for Williams.

The acquisitions have a combined value of $1.27 billion, representing a blended multiple of approximately 7x expected 2024 Adjusted EBITDA. The combination of these two assets will further drive down purchase multiple via increased volumes on existing processing facilities, as well as downstream NGL transportation, fractionation and storage assets. The transactions are expected to close by the end of 2023, making Williams the third largest gatherer in the DJ Basin and progressing toward the company's strategy of maintaining top positions in its areas of operation.

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 third-quarter 2023 Form 10-Q.

2023 Financial Guidance

The company increased its midpoint of guidance and now expects 2023 Adjusted EBITDA between $6.6 billion and $6.8 billion. Growth capex guidance remains the same; between $1.6 billion to $1.9 billion. 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' Third-Quarter 2023 Materials to be Posted Shortly; Q&A Webcast Scheduled for Tomorrow

Williams' third-quarter 2023 earnings presentation will be posted at www.williams.com. The company’s third-quarter 2023 earnings conference call and webcast with analysts and investors is scheduled for Thursday, November 2, 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 natural gas 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

September 30,

 

Nine Months Ended

September 30,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

 

(Millions, except per-share amounts)

Revenues:

 

 

 

 

 

 

 

Service revenues

$

1,770

 

 

$

1,685

 

 

$

5,212

 

 

$

4,828

 

Service revenues – commodity consideration

 

45

 

 

 

60

 

 

 

108

 

 

 

223

 

Product sales

 

720

 

 

 

1,260

 

 

 

2,158

 

 

 

3,475

 

Net gain (loss) on commodity derivatives

 

24

 

 

 

16

 

 

 

645

 

 

 

(491

)

Total revenues

 

2,559

 

 

 

3,021

 

 

 

8,123

 

 

 

8,035

 

Costs and expenses:

 

 

 

 

 

 

 

Product costs

 

484

 

 

 

990

 

 

 

1,458

 

 

 

2,650

 

Net processing commodity expenses

 

31

 

 

 

29

 

 

 

129

 

 

 

99

 

Operating and maintenance expenses

 

522

 

 

 

486

 

 

 

1,466

 

 

 

1,345

 

Depreciation and amortization expenses

 

521

 

 

 

500

 

 

 

1,542

 

 

 

1,504

 

Selling, general, and administrative expenses

 

146

 

 

 

163

 

 

 

483

 

 

 

477

 

Gain on sale of business

 

(130

)

 

 

 

 

 

(130

)

 

 

 

Other (income) expense – net

 

(9

)

 

 

33

 

 

 

(49

)

 

 

14

 

Total costs and expenses

 

1,565

 

 

 

2,201

 

 

 

4,899

 

 

 

6,089

 

Operating income (loss)

 

994

 

 

 

820

 

 

 

3,224

 

 

 

1,946

 

Equity earnings (losses)

 

127

 

 

 

193

 

 

 

434

 

 

 

492

 

Other investing income (loss) – net

 

24

 

 

 

1

 

 

 

45

 

 

 

4

 

Interest incurred

 

(330

)

 

 

(296

)

 

 

(953

)

 

 

(871

)

Interest capitalized

 

16

��

 

 

5

 

 

 

39

 

 

 

13

 

Other income (expense) – net

 

30

 

 

 

(6

)

 

 

69

 

 

 

5

 

Income (loss) before income taxes

 

861

 

 

 

717

 

 

 

2,858

 

 

 

1,589

 

Less: Provision (benefit) for income taxes

 

176

 

 

 

96

 

 

 

635

 

 

 

169

 

Income (loss) from continuing operations

 

685

 

 

 

621

 

 

 

2,223

 

 

 

1,420

 

Income (loss) from discontinued operations

 

(1

)

 

 

 

 

 

(88

)

 

 

 

Net income (loss)

 

684

 

 

 

621

 

 

 

2,135

 

 

 

1,420

 

Less: Net income (loss) attributable to noncontrolling interests

 

30

 

 

 

21

 

 

 

94

 

 

 

40

 

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

 

654

 

 

 

600

 

 

 

2,041

 

 

 

1,380

 

Less: Preferred stock dividends

 

1

 

 

 

1

 

 

 

2

 

 

 

2

 

Net income (loss) available to common stockholders

$

653

 

 

$

599

 

 

$

2,039

 

 

$

1,378

 

Amounts attributable to The Williams Companies, Inc. available to common stockholders:

 

 

 

 

 

 

 

Income (loss) from continuing operations

$

654

 

 

$

599

 

 

$

2,127

 

 

$

1,378

 

Income (loss) from discontinued operations

 

(1

)

 

 

 

 

 

(88

)

 

 

 

Net income (loss) available to common stockholders

$

653

 

 

$

599

 

 

$

2,039

 

 

$

1,378

 

Basic earnings (loss) per common share:

 

 

 

 

 

 

 

Income (loss) from continuing operations

$

.54

 

 

$

.49

 

 

$

1.74

 

 

$

1.13

 

Income (loss) from discontinued operations

 

 

 

 

 

 

 

(.07

)

 

 

 

Net income (loss) available to common stockholders

$

.54

 

 

$

.49

 

 

$

1.67

 

 

$

1.13

 

Weighted-average shares (thousands)

 

1,216,951

 

 

 

1,218,964

 

 

 

1,218,021

 

 

 

1,218,202

 

Diluted earnings (loss) per common share:

 

 

 

 

 

 

 

Income (loss) from continuing operations

$

.54

 

 

$

.49

 

 

$

1.74

 

 

$

1.13

 

Income (loss) from discontinued operations

 

 

 

 

 

 

 

(.07

)

 

 

 

Net income (loss) available to common stockholders

$

.54

 

 

$

.49

 

 

$

1.67

 

 

$

1.13

 

Weighted-average shares (thousands)

 

1,220,073

 

 

 

1,222,472

 

 

 

1,222,650

 

 

 

1,222,153

 

 
 
 
 

The Williams Companies, Inc.

Consolidated Balance Sheet

(Unaudited)
 

 

 

 

September 30,

2023

 

December 31,

2022

 

 

(Millions, except per-share amounts)

ASSETS

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

2,074

 

 

$

152

 

Trade accounts and other receivables (net of allowance of $3 at September 30, 2023 and $6 at December 31, 2022)

 

 

1,419

 

 

 

2,723

 

Inventories

 

 

266

 

 

 

320

 

Derivative assets

 

 

243

 

 

 

323

 

Other current assets and deferred charges

 

 

254

 

 

 

279

 

Total current assets

 

 

4,256

 

 

 

3,797

 

Investments

 

 

4,998

 

 

 

5,065

 

Property, plant, and equipment

 

 

50,805

 

 

 

47,057

 

Accumulated depreciation and amortization

 

 

(18,177

)

 

 

(16,168

)

Property, plant, and equipment – net

 

 

32,628

 

 

 

30,889

 

Intangible assets – net of accumulated amortization

 

 

7,459

 

 

 

7,363

 

Regulatory assets, deferred charges, and other

 

 

1,447

 

 

 

1,319

 

Total assets

 

$

50,788

 

 

$

48,433

 

LIABILITIES AND EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

1,358

 

 

$

2,327

 

Derivative liabilities

 

 

123

 

 

 

316

 

Accrued and other current liabilities

 

 

1,166

 

 

 

1,270

 

Commercial paper

 

 

 

 

 

350

 

Long-term debt due within one year

 

 

2,879

 

 

 

627

 

Total current liabilities

 

 

5,526

 

 

 

4,890

 

Long-term debt

 

 

22,772

 

 

 

21,927

 

Deferred income tax liabilities

 

 

3,496

 

 

 

2,887

 

Regulatory liabilities, deferred income, and other

 

 

4,651

 

 

 

4,684

 

Contingent liabilities and commitments

 

 

 

 

Equity:

 

 

 

 

Stockholders’ equity:

 

 

 

 

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

 

 

35

 

 

 

35

 

Common stock ($1 par value; 1,470 million shares authorized at September 30, 2023 and December 31, 2022; 1,256 million shares issued at September 30, 2023 and 1,253 million shares issued at December 31, 2022)

 

 

1,256

 

 

 

1,253

 

Capital in excess of par value

 

 

24,562

 

 

 

24,542

 

Retained deficit

 

 

(12,876

)

 

 

(13,271

)

Accumulated other comprehensive income (loss)

 

 

48

 

 

 

(24

)

Treasury stock, at cost (39 million shares at September 30, 2023 and 35 million shares at December 31, 2022 of common stock)

 

 

(1,180

)

 

 

(1,050

)

Total stockholders’ equity

 

 

11,845

 

 

 

11,485

 

Noncontrolling interests in consolidated subsidiaries

 

 

2,498

 

 

 

2,560

 

Total equity

 

 

14,343

 

 

 

14,045

 

Total liabilities and equity

 

$

50,788

 

 

$

48,433

 

 
 
 
 

The Williams Companies, Inc.

Consolidated Statement of Cash Flows

(Unaudited)
 

 

 

Nine Months Ended

September 30,

 

 

2023

 

 

 

2022

 

 

(Millions)

OPERATING ACTIVITIES:

 

Net income (loss)

$

2,135

 

 

$

1,420

 

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

 

 

 

Depreciation and amortization

 

1,542

 

 

 

1,504

 

Provision (benefit) for deferred income taxes

 

586

 

 

 

182

 

Equity (earnings) losses

 

(434

)

 

 

(492

)

Distributions from equity-method investees

 

607

 

 

 

688

 

Net unrealized (gain) loss from derivative instruments

 

(433

)

 

 

329

 

Gain on sale of business

 

(130

)

 

 

 

Inventory write-downs

 

28

 

 

 

76

 

Amortization of stock-based awards

 

59

 

 

 

58

 

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

 

 

 

Accounts receivable

 

1,295

 

 

 

(672

)

Inventories

 

29

 

 

 

(152

)

Other current assets and deferred charges

 

(5

)

 

 

(62

)

Accounts payable

 

(1,072

)

 

 

743

 

Accrued and other current liabilities

 

(114

)

 

 

167

 

Changes in current and noncurrent derivative assets and liabilities

 

172

 

 

 

86

 

Other, including changes in noncurrent assets and liabilities

 

(140

)

 

 

(205

)

Net cash provided (used) by operating activities

 

4,125

 

 

 

3,670

 

FINANCING ACTIVITIES:

 

 

 

Proceeds from (payments of) commercial paper – net

 

(352

)

 

 

 

Proceeds from long-term debt

 

2,754

 

 

 

1,752

 

Payments of long-term debt

 

(21

)

 

 

(2,019

)

Proceeds from issuance of common stock

 

8

 

 

 

53

 

Purchases of treasury stock

 

(130

)

 

 

(9

)

Common dividends paid

 

(1,635

)

 

 

(1,553

)

Dividends and distributions paid to noncontrolling interests

 

(174

)

 

 

(141

)

Contributions from noncontrolling interests

 

18

 

 

 

15

 

Payments for debt issuance costs

 

(21

)

 

 

(14

)

Other – net

 

(19

)

 

 

(40

)

Net cash provided (used) by financing activities

 

428

 

 

 

(1,956

)

INVESTING ACTIVITIES:

 

 

 

Property, plant, and equipment:

 

 

 

Capital expenditures (1)

 

(1,845

)

 

 

(1,447

)

Dispositions – net

 

(33

)

 

 

(19

)

Contributions in aid of construction

 

20

 

 

 

8

 

Proceeds from sale of business

 

348

 

 

 

 

Purchases of businesses, net of cash acquired

 

(1,024

)

 

 

(933

)

Purchases of and contributions to equity-method investments

 

(80

)

 

 

(140

)

Other – net

 

(17

)

 

 

(4

)

Net cash provided (used) by investing activities

 

(2,631

)

 

 

(2,535

)

Increase (decrease) in cash and cash equivalents

 

1,922

 

 

 

(821

)

Cash and cash equivalents at beginning of year

 

152

 

 

 

1,680

 

Cash and cash equivalents at end of period

$

2,074

 

 

$

859

 

_____________

 

 

 

(1) Increases to property, plant, and equipment

$

(1,960

)

 

$

(1,549

)

Changes in related accounts payable and accrued liabilities

 

115

 

 

 

102

 

Capital expenditures

$

(1,845

)

 

$

(1,447

)

 
 
 
 

Transmission & Gulf of Mexico

(UNAUDITED)

 

2022

 

2023

(Dollars in millions)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

 

1st Qtr

2nd Qtr

3rd Qtr

Year

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

$

730

 

$

717

 

$

734

 

$

758

 

$

2,939

 

 

$

774

 

$

786

 

$

794

 

$

2,354

 

Gathering, processing, storage and transportation revenues

 

82

 

 

84

 

 

99

 

 

100

 

 

365

 

 

 

100

 

 

104

 

 

114

 

 

318

 

Other fee revenues (1)

 

5

 

 

5

 

 

4

 

 

7

 

 

21

 

 

 

6

 

 

8

 

 

5

 

 

19

 

Commodity margins

 

15

 

 

11

 

 

10

 

 

7

 

 

43

 

 

 

10

 

 

8

 

 

7

 

 

25

 

Net unrealized gain (loss) from derivative instruments

 

 

 

 

 

1

 

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

Operating and administrative costs (1)

 

(202

)

 

(227

)

 

(238

)

 

(239

)

 

(906

)

 

 

(254

)

 

(254

)

 

(257

)

 

(765

)

Other segment income (expenses) - net (1)

 

19

 

 

17

 

 

(22

)

 

5

 

 

19

 

 

 

26

 

 

31

 

 

36

 

 

93

 

Gain on sale of business

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

130

 

 

130

 

Proportional Modified EBITDA of equity-method investments

 

48

 

 

45

 

 

50

 

 

50

 

 

193

 

 

 

53

 

 

48

 

 

52

 

 

153

 

Modified EBITDA

 

697

 

 

652

 

 

638

 

 

687

 

 

2,674

 

 

 

715

 

 

731

 

 

881

 

 

2,327

 

Adjustments

 

 

 

 

 

33

 

 

13

 

 

46

 

 

 

13

 

 

17

 

 

(127

)

 

(97

)

Adjusted EBITDA

$

697

 

$

652

 

$

671

 

$

700

 

$

2,720

 

 

$

728

 

$

748

 

$

754

 

$

2,230

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

13.2

 

 

14.0

 

 

13.8

 

Avg. daily firm reserved capacity (MMdth)

 

19.3

 

 

19.1

 

 

19.2

 

 

19.3

 

 

19.2

 

 

 

19.5

 

 

19.4

 

 

19.4

 

 

19.4

 

Northwest Pipeline LLC

 

 

 

 

 

 

 

 

 

 

Avg. daily transportation volumes (MMdth)

 

2.8

 

 

2.1

 

 

2.0

 

 

2.9

 

 

2.5

 

 

 

3.1

 

 

2.3

 

 

2.3

 

 

2.6

 

Avg. daily firm reserved capacity (MMdth)

 

3.8

 

 

3.8

 

 

3.8

 

 

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

 

 

3.7

 

Avg. daily firm reserved capacity (MMdth)

 

 

 

 

 

 

 

 

 

 

 

 

7.8

 

 

7.5

 

 

7.5

 

 

7.6

 

Gulfstream - Non-consolidated

 

 

 

 

 

 

 

 

 

 

Avg. daily transportation volumes (MMdth)

 

0.9

 

 

1.3

 

 

1.4

 

 

1.1

 

 

1.3

 

 

 

1.0

 

 

1.2

 

 

1.4

 

 

1.2

 

Avg. daily firm reserved capacity (MMdth)

 

1.3

 

 

1.3

 

 

1.4

 

 

1.4

 

 

1.4

 

 

 

1.4

 

 

1.4

 

 

1.4

 

 

1.4

 

Gathering, Processing, and Crude Oil Transportation

 

 

 

 

 

 

 

 

 

 

Consolidated (4)

 

 

 

 

 

 

 

 

 

 

Gathering volumes (Bcf/d)

 

0.30

 

 

0.28

 

 

0.29

 

 

0.28

 

 

0.29

 

 

 

0.28

 

 

0.23

 

 

0.27

 

 

0.26

 

Plant inlet natural gas volumes (Bcf/d)

 

0.48

 

 

0.46

 

 

0.49

 

 

0.46

 

 

0.47

 

 

 

0.43

 

 

0.40

 

 

0.46

 

 

0.43

 

NGL production (Mbbls/d)

 

31

 

 

31

 

 

26

 

 

26

 

 

28

 

 

 

28

 

 

24

 

 

28

 

 

27

 

NGL equity sales (Mbbls/d)

 

7

 

 

7

 

 

4

 

 

5

 

 

6

 

 

 

7

 

 

5

 

 

6

 

 

6

 

Crude oil transportation volumes (Mbbls/d)

 

110

 

 

124

 

 

125

 

 

118

 

 

119

 

 

 

119

 

 

111

 

 

134

 

 

121

 

Non-consolidated (5)

 

 

 

 

 

 

 

 

 

 

Gathering volumes (Bcf/d)

 

0.39

 

 

0.37

 

 

0.41

 

 

0.42

 

 

0.40

 

 

 

0.36

 

 

0.30

 

 

0.36

 

 

0.34

 

Plant inlet natural gas volumes (Bcf/d)

 

0.38

 

 

0.37

 

 

0.41

 

 

0.42

 

 

0.40

 

 

 

0.36

 

 

0.30

 

 

0.36

 

 

0.34

 

NGL production (Mbbls/d)

 

28

 

 

26

 

 

29

 

 

29

 

 

28

 

 

 

28

 

 

21

 

 

30

 

 

26

 

NGL equity sales (Mbbls/d)

 

8

 

 

6

 

 

7

 

 

10

 

 

8

 

 

 

8

 

 

3

 

 

8

 

 

7

 

 

 

 

 

 

 

 

 

 

 

 

(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)

 

2022

 

2023

(Dollars in millions)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

 

1st Qtr

2nd Qtr

3rd Qtr

Year

Gathering, processing, transportation, and fractionation revenues

$

323

 

$

350

 

$

354

 

$

368

 

$

1,395

 

 

$

391

 

$

431

 

$

417

 

$

1,239

 

Other fee revenues (1)

 

27

 

 

27

 

 

27

 

 

46

 

 

127

 

 

 

32

 

 

27

 

 

27

 

 

86

 

Commodity margins

 

6

 

 

1

 

 

3

 

 

 

 

10

 

 

 

5

 

 

(1

)

 

7

 

 

11

 

Operating and administrative costs (1)

 

(85

)

 

(102

)

 

(101

)

 

(97

)

 

(385

)

 

 

(101

)

 

(101

)

 

(115

)

 

(317

)

Other segment income (expenses) - net

 

(3

)

 

 

 

(1

)

 

(1

)

 

(5

)

 

 

 

 

 

 

(1

)

 

(1

)

Proportional Modified EBITDA of equity-method investments

 

150

 

 

174

 

 

182

 

 

148

 

 

654

 

 

 

143

 

 

159

 

 

119

 

 

421

 

Modified EBITDA

 

418

 

 

450

 

 

464

 

 

464

 

 

1,796

 

 

 

470

 

 

515

 

 

454

 

 

1,439

 

Our share of accrual for loss contingency at Aux Sable Liquid Products LP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31

 

 

31

 

Adjusted EBITDA

$

418

 

$

450

 

$

464

 

$

464

 

$

1,796

 

 

$

470

 

$

515

 

$

485

 

$

1,470

 

 

 

 

 

 

 

 

 

 

 

 

Statistics for Operated Assets and non-operated Blue Racer Midstream

 

 

 

 

 

 

 

 

 

 

Gathering and Processing

 

 

 

 

 

 

 

 

 

 

Consolidated (2)

 

 

 

 

 

 

 

 

 

 

Gathering volumes (Bcf/d) (3)

 

4.03

 

 

4.19

 

 

4.22

 

 

4.31

 

 

4.19

 

 

 

4.42

 

 

4.61

 

 

4.41

 

 

4.48

 

Plant inlet natural gas volumes (Bcf/d)

 

1.46

 

 

1.70

 

 

1.74

 

 

1.70

 

 

1.65

 

 

 

1.92

 

 

1.79

 

 

1.93

 

 

1.88

 

NGL production (Mbbls/d)

 

110

 

 

118

 

 

125

 

 

127

 

 

120

 

 

 

144

 

 

135

 

 

144

 

 

141

 

NGL equity sales (Mbbls/d)

 

2

 

 

1

 

 

1

 

 

1

 

 

1

 

 

 

1

 

 

1

 

 

 

 

1

 

Non-consolidated (4)

 

 

 

 

 

 

 

 

 

 

Gathering volumes (Bcf/d)

 

6.62

 

 

6.76

 

 

6.58

 

 

6.48

 

 

6.61

 

 

 

6.97

 

 

7.03

 

 

6.83

 

 

6.94

 

Plant inlet natural gas volumes (Bcf/d)

 

0.66

 

 

0.76

 

 

0.66

 

 

0.77

 

 

0.71

 

 

 

0.77

 

 

0.93

 

 

0.99

 

 

0.90

 

NGL production (Mbbls/d)

 

50

 

 

53

 

 

45

 

 

56

 

 

51

 

 

 

54

 

 

64

 

 

71

 

 

63

 

NGL equity sales (Mbbls/d)

 

4

 

 

3

 

 

2

 

 

2

 

 

3

 

 

 

4

 

 

5

 

 

4

 

 

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) 1st Qtr 2023 and 2nd Qtr 2023 volumes have been revised for a correction.

(4) 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

2nd Qtr

3rd Qtr

Year

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

$

317

 

$

360

 

$

397

 

$

401

 

$

1,475

 

 

$

382

 

$

373

 

$

371

 

$

1,126

 

Other fee revenues (1)

 

6

 

 

6

 

 

6

 

 

5

 

 

23

 

 

 

5

 

 

7

 

 

4

 

 

16

 

Commodity margins

 

23

 

 

25

 

 

27

 

 

27

 

 

102

 

 

 

(24

)

 

18

 

 

21

 

 

15

 

Operating and administrative costs (1)

 

(112

)

 

(133

)

 

(128

)

 

(133

)

 

(506

)

 

 

(115

)

 

(122

)

 

(122

)

 

(359

)

Other segment income (expenses) - net

 

(1

)

 

(1

)

 

(6

)

 

(7

)

 

(15

)

 

 

23

 

 

(7

)

 

(4

)

 

12

 

Proportional Modified EBITDA of equity-method investments

 

27

 

 

31

 

 

41

 

 

33

 

 

132

 

 

 

33

 

 

43

 

 

45

 

 

121

 

Modified EBITDA

 

260

 

 

288

 

 

337

 

 

326

 

 

1,211

 

 

 

304

 

 

312

 

 

315

 

 

931

 

Adjustments

 

 

 

8

 

 

 

 

 

 

8

 

 

 

(18

)

 

 

 

 

 

(18

)

Adjusted EBITDA

$

260

 

$

296

 

$

337

 

$

326

 

$

1,219

 

 

$

286

 

$

312

 

$

315

 

$

913

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

5.51

 

 

5.60

 

 

5.52

 

Plant inlet natural gas volumes (Bcf/d)

 

1.13

 

 

1.14

 

 

1.21

 

 

1.10

 

 

1.15

 

 

 

0.92

 

 

1.06

 

 

1.12

 

 

1.04

 

NGL production (Mbbls/d)

 

47

 

 

49

 

 

45

 

 

32

 

 

43

 

 

 

25

 

 

40

 

 

61

 

 

42

 

NGL equity sales (Mbbls/d)

 

17

 

 

18

 

 

13

 

 

7

 

 

14

 

 

 

6

 

 

16

 

 

22

 

 

15

 

Non-consolidated (4)

 

 

 

 

 

 

 

 

 

 

Gathering volumes (Bcf/d)

 

0.28

 

 

0.28

 

 

0.29

 

 

0.29

 

 

0.29

 

 

 

0.32

 

 

0.33

 

 

0.33

 

 

0.33

 

Plant inlet natural gas volumes (Bcf/d)

 

0.27

 

 

0.28

 

 

0.29

 

 

0.29

 

 

0.28

 

 

 

0.32

 

 

0.32

 

 

0.32

 

 

0.32

 

NGL production (Mbbls/d)

 

31

 

 

32

 

 

34

 

 

32

 

 

33

 

 

 

37

 

 

38

 

 

38

 

 

38

 

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

 

132

 

 

162

 

 

189

 

 

151

 

 

158

 

 

 

161

 

 

217

 

 

244

 

 

208

 

 

 

 

 

 

 

 

 

 

 

 

(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.

(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 as well as volumes for our consolidated Bluestem pipeline.

 
 
 
 

Gas & NGL Marketing Services

(UNAUDITED)

 

2022

 

2023

(Dollars in millions)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

 

1st Qtr

2nd Qtr

3rd Qtr

Year

Commodity margins

$

100

 

$

23

 

$

39

 

$

161

 

$

323

 

 

$

265

 

$

(2

)

$

38

 

$

301

 

Other fee revenues

 

1

 

 

 

 

1

 

 

1

 

 

3

 

 

 

1

 

 

 

 

 

 

1

 

Net unrealized gain (loss) from derivative instruments

 

(57

)

 

(288

)

 

5

 

 

66

 

 

(274

)

 

 

333

 

 

94

 

 

24

 

 

451

 

Operating and administrative costs

 

(31

)

 

(23

)

 

(24

)

 

(18

)

 

(96

)

 

 

(32

)

 

(24

)

 

(19

)

 

(75

)

Other segment income (expenses) - net

 

 

 

6

 

 

(1

)

 

(1

)

 

4

 

 

 

 

 

 

 

 

 

 

Modified EBITDA

 

13

 

 

(282

)

 

20

 

 

209

 

 

(40

)

 

 

567

 

 

68

 

 

43

 

 

678

 

Adjustments

 

52

 

 

288

 

 

18

 

 

(60

)

 

298

 

 

 

(336

)

 

(84

)

 

(27

)

 

(447

)

Adjusted EBITDA

$

65

 

$

6

 

$

38

 

$

149

 

$

258

 

 

$

231

 

$

(16

)

$

16

 

$

231

 

 

 

 

 

 

 

 

 

 

 

 

Statistics

 

 

 

 

 

 

 

 

 

 

Product Sales Volumes

 

 

 

 

 

 

 

 

 

 

Natural Gas (Bcf/d)

 

7.96

 

 

6.66

 

 

7.11

 

 

7.05

 

 

7.20

 

 

 

7.24

 

 

6.56

 

 

7.31

 

 

7.04

 

NGLs (Mbbls/d)

 

246

 

 

234

 

 

267

 

 

254

 

 

250

 

 

 

234

 

 

239

 

 

245

 

 

239

 

 

 

 

 

 

 

 

 

 

 

 

 
 
 
 

Other

(UNAUDITED)

 

2022

 

2023

(Dollars in millions)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

 

1st Qtr

2nd Qtr

3rd Qtr

Year

Service revenues

$

9

 

$

7

 

$

6

 

$

2

 

$

24

 

 

$

3

 

$

5

 

$

4

 

$

12

 

Net realized product sales

 

96

 

 

142

 

 

180

 

 

184

 

 

602

 

 

 

120

 

 

97

 

 

127

 

 

344

 

Net unrealized gain (loss) from derivative instruments

 

(66

)

 

47

 

 

29

 

 

15

 

 

25

 

 

 

(6

)

 

(11

)

 

(1

)

 

(18

)

Operating and administrative costs

 

(33

)

 

(57

)

 

(62

)

 

(59

)

 

(211

)

 

 

(48

)

 

(54

)

 

(58

)

 

(160

)

Other segment income (expenses) - net

 

(1

)

 

 

 

(13

)

 

8

 

 

(6

)

 

 

5

 

 

5

 

 

10

 

 

20

 

Proportional Modified EBITDA of equity-method investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1

)

 

(1

)

 

(2

)

Modified EBITDA

 

5

 

 

139

 

 

140

 

 

150

 

 

434

 

 

 

74

 

 

41

 

 

81

 

 

196

 

Adjustments

 

66

 

 

(47

)

 

(13

)

 

(15

)

 

(9

)

 

 

6

 

 

11

 

 

1

 

 

18

 

Adjusted EBITDA

$

71

 

$

92

 

$

127

 

$

135

 

$

425

 

 

$

80

 

$

52

 

$

82

 

$

214

 

 

 

 

 

 

 

 

 

 

 

 

Statistics

 

 

 

 

 

 

 

 

 

 

Net Product Sales Volumes

 

 

 

 

 

 

 

 

 

 

Natural Gas (Bcf/d)

 

0.12

 

 

0.19

 

 

0.27

 

 

0.31

 

 

0.22

 

 

 

0.26

 

 

0.29

 

 

0.31

 

 

0.28

 

NGLs (Mbbls/d)

 

7

 

 

7

 

 

8

 

 

7

 

 

7

 

 

 

3

 

 

6

 

 

9

 

 

6

 

Crude Oil (Mbbls/d)

 

2

 

 

3

 

 

2

 

 

2

 

 

2

 

 

 

1

 

 

3

 

 

5

 

 

3

 

 

 
 
 
 

Capital Expenditures and Investments

(UNAUDITED)

 

2022

 

2023

(Dollars in millions)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

 

1st Qtr

2nd Qtr

3rd Qtr

Year

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures:

 

 

 

 

 

 

 

 

 

 

Transmission & Gulf of Mexico

$

125

 

$

129

 

$

637

 

$

358

 

$

1,249

 

 

$

205

$

263

 

$

382

 

$

850

 

Northeast G&P

 

40

 

 

30

 

 

52

 

 

92

 

 

214

 

 

 

99

 

74

 

 

115

 

 

288

 

West

 

61

 

 

82

 

 

94

 

 

226

 

 

463

 

 

 

169

 

197

 

 

141

 

 

507

 

Other

 

65

 

 

74

 

 

58

 

 

130

 

 

327

 

 

 

72

 

76

 

 

52

 

 

200

 

Total (1)

$

291

 

$

315

 

$

841

 

$

806

 

$

2,253

 

 

$

545

$

610

 

$

690

 

$

1,845

 

 

 

 

 

 

 

 

 

 

 

 

Purchases of and contributions to equity-method investments:

 

 

 

 

 

 

 

 

 

 

Transmission & Gulf of Mexico

$

16

 

$

26

 

$

11

 

$

17

 

$

70

 

 

$

8

$

18

 

$

6

 

$

32

 

Northeast G&P

 

32

 

 

18

 

 

28

 

 

8

 

 

86

 

 

 

31

 

12

 

 

4

 

 

47

 

West

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

 

1

 

Other

 

8

 

 

 

 

1

 

 

1

 

 

10

 

 

 

 

 

 

 

 

 

Total

$

56

 

$

44

 

$

40

 

$

26

 

$

166

 

 

$

39

$

30

 

$

11

 

$

80

 

 

 

 

 

 

 

 

 

 

 

 

Summary:

 

 

 

 

 

 

 

 

 

 

Transmission & Gulf of Mexico

$

141

 

$

155

 

$

648

 

$

375

 

$

1,319

 

 

$

213

$

281

 

$

388

 

$

882

 

Northeast G&P

 

72

 

 

48

 

 

80

 

 

100

 

 

300

 

 

 

130

 

86

 

 

119

 

 

335

 

West

 

61

 

 

82

 

 

94

 

 

226

 

 

463

 

 

 

169

 

197

 

 

142

 

 

508

 

Other

 

73

 

 

74

 

 

59

 

 

131

 

 

337

 

 

 

72

 

76

 

 

52

 

 

200

 

Total

$

347

 

$

359

 

$

881

 

$

832

 

$

2,419

 

 

$

584

$

640

 

$

701

 

$

1,925

 

 

 

 

 

 

 

 

 

 

 

 

Capital investments:

 

 

 

 

 

 

 

 

 

 

Increases to property, plant, and equipment

$

260

 

$

382

 

$

907

 

$

845

 

$

2,394

 

 

$

484

$

684

 

$

792

 

$

1,960

 

Purchases of businesses, net of cash acquired

 

 

 

933

 

 

 

 

 

 

933

 

 

 

1,056

 

(3

)

 

(29

)

 

1,024

 

Purchases of and contributions to equity-method investments

 

56

 

 

44

 

 

40

 

 

26

 

 

166

 

 

 

39

 

30

 

 

11

 

 

80

 

Purchases of other long-term investments

 

 

 

3

 

 

3

 

 

5

 

 

11

 

 

 

2

 

1

 

 

2

 

 

5

 

Total

$

316

 

$

1,362

 

$

950

 

$

876

 

$

3,504

 

 

$

1,581

$

712

 

$

776

 

$

3,069

 

 

 

 

 

 

 

 

 

 

 

 

(1) Increases to property, plant, and equipment

$

260

 

$

382

 

$

907

 

$

845

 

$

2,394

 

 

$

484

$

684

 

$

792

 

$

1,960

 

Changes in related accounts payable and accrued liabilities

 

31

 

 

(67

)

 

(66

)

 

(39

)

 

(141

)

 

 

61

 

(74

)

 

(102

)

 

(115

)

Capital expenditures

$

291

 

$

315

 

$

841

 

$

806

 

$

2,253

 

 

$

545

$

610

 

$

690

 

$

1,845

 

 

 

 

 

 

 

 

 

 

 

 

Contributions from noncontrolling interests

$

3

 

$

5

 

$

7

 

$

3

 

$

18

 

 

$

3

$

15

 

$

 

$

18

 

Contributions in aid of construction

$

(3

)

$

9

 

$

2

 

$

4

 

$

12

 

 

$

11

$

7

 

$

2

 

$

20

 

Proceeds from sale of business

$

 

$

 

$

 

$

 

$

 

 

$

$

 

$

348

 

$

348

 

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 (AFFO) 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. AFFO may 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)

 

2022

 

2023

(Dollars in millions, except per-share amounts)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

 

1st Qtr

2nd Qtr

3rd Qtr

Year

 

 

 

 

 

 

 

 

 

 

 

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

$

379

 

$

400

 

$

599

 

$

668

 

$

2,046

 

 

$

926

 

$

547

 

$

654

 

$

2,127

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations - diluted earnings (loss) per common share (1)

$

.31

 

$

.33

 

$

.49

 

$

.55

 

$

1.67

 

 

$

.76

 

$

.45

 

$

.54

 

$

1.74

 

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

 

 

17

 

 

3

 

 

33

 

Gain on sale of business

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(130

)

 

(130

)

Total Transmission & Gulf of Mexico adjustments

 

 

 

 

 

33

 

 

13

 

 

46

 

 

 

13

 

 

17

 

 

(127

)

 

(97

)

Northeast G&P

 

 

 

 

 

 

 

 

 

 

Our share of accrual for loss contingency at Aux Sable Liquid

Products LP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31

 

 

31

 

Total Northeast G&P adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31

 

 

31

 

West

 

 

 

 

 

 

 

 

 

 

Trace acquisition costs

 

 

 

8

 

 

 

 

 

 

8

 

 

 

 

 

 

 

 

 

 

Gain from contract settlement

 

 

 

 

 

 

 

 

 

 

 

 

(18

)

 

 

 

 

 

(18

)

Total West adjustments

 

 

 

8

 

 

 

 

 

 

8

 

 

 

(18

)

 

 

 

 

 

(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

)

 

10

 

 

(3

)

 

4

 

Net unrealized (gain) loss from derivative instruments

 

57

 

 

288

 

 

(5

)

 

(66

)

 

274

 

 

 

(333

)

 

(94

)

 

(24

)

 

(451

)

Total Gas & NGL Marketing Services adjustments

 

52

 

 

288

 

 

18

 

 

(60

)

 

298

 

 

 

(336

)

 

(84

)

 

(27

)

 

(447

)

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

 

 

11

 

 

1

 

 

18

 

Accrual for loss contingencies

 

 

 

 

 

11

 

 

 

 

11

 

 

 

 

 

 

 

 

 

 

Total Other adjustments

 

66

 

 

(47

)

 

(13

)

 

(15

)

 

(9

)

 

 

6

 

 

11

 

 

1

 

 

18

 

Adjustments included in Modified EBITDA

 

118

 

 

249

 

 

38

 

 

(62

)

 

343

 

 

 

(335

)

 

(56

)

 

(122

)

 

(513

)

Adjustments below Modified EBITDA

 

 

 

 

 

 

 

 

 

 

Amortization of intangible assets from Sequent acquisition

 

42

 

 

41

 

 

42

 

 

42

 

 

167

 

 

 

15

 

 

14

 

 

15

 

 

44

 

Depreciation adjustment related to Eminence storage cavern abandonments

 

 

 

 

 

(1

)

 

 

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

42

 

 

41

 

 

41

 

 

42

 

 

166

 

 

 

15

 

 

14

 

 

15

 

 

44

 

Total adjustments

 

160

 

 

290

 

 

79

 

 

(20

)

 

509

 

 

 

(320

)

 

(42

)

 

(107

)

 

(469

)

Less tax effect for above items

 

(40

)

 

(72

)

 

(17

)

 

5

 

 

(124

)

 

 

78

 

 

10

 

 

25

 

 

113

 

Adjustments for tax-related items (2)

 

 

 

(134

)

 

(69

)

 

 

 

(203

)

 

 

 

 

 

 

(25

)

 

(25

)

Adjusted income from continuing operations available to common stockholders

$

499

 

$

484

 

$

592

 

$

653

 

$

2,228

 

 

$

684

 

$

515

 

$

547

 

$

1,746

 

Adjusted income from continuing operations - diluted earnings per common share (1)

$

.41

 

$

.40

 

$

.48

 

$

.53

 

$

1.82

 

 

$

.56

 

$

.42

 

$

.45

 

$

1.43

 

Weighted-average shares - diluted (thousands)

 

1,221,279

 

 

1,222,694

 

 

1,222,472

 

 

1,224,212

 

 

1,222,672

 

 

 

1,225,781

 

 

1,219,915

 

 

1,220,073

 

 

1,222,650

 

 

(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. The third quarter of 2023 includes an adjustment associated with a further decrease in our estimated deferred state income tax rate.

 
 
 
 

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

2nd Qtr

3rd Qtr

Year

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$

392

 

$

407

 

$

621

 

$

697

 

$

2,117

 

 

$

957

 

$

494

 

$

684

 

$

2,135

 

Provision (benefit) for income taxes

 

118

 

 

(45

)

 

96

 

 

256

 

 

425

 

 

 

284

 

 

175

 

 

176

 

 

635

 

Interest expense

 

286

 

 

281

 

 

291

 

 

289

 

 

1,147

 

 

 

294

 

 

306

 

 

314

 

 

914

 

Equity (earnings) losses

 

(136

)

 

(163

)

 

(193

)

 

(145

)

 

(637

)

 

 

(147

)

 

(160

)

 

(127

)

 

(434

)

Other investing (income) loss - net

 

(1

)

 

(2

)

 

(1

)

 

(12

)

 

(16

)

 

 

(8

)

 

(13

)

 

(24

)

 

(45

)

Proportional Modified EBITDA of equity-method investments

 

225

 

 

250

 

 

273

 

 

231

 

 

979

 

 

 

229

 

 

249

 

 

215

 

 

693

 

Depreciation and amortization expenses

 

498

 

 

506

 

 

500

 

 

505

 

 

2,009

 

 

 

506

 

 

515

 

 

521

 

 

1,542

 

Accretion expense associated with asset retirement obligations for nonregulated operations

 

11

 

 

13

 

 

12

 

 

15

 

 

51

 

 

 

15

 

 

14

 

 

14

 

 

43

 

(Income) loss from discontinued operations, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

87

 

 

1

 

 

88

 

Modified EBITDA

$

1,393

 

$

1,247

 

$

1,599

 

$

1,836

 

$

6,075

 

 

$

2,130

 

$

1,667

 

$

1,774

 

$

5,571

 

 

 

 

 

 

 

 

 

 

 

 

Transmission & Gulf of Mexico

$

697

 

$

652

 

$

638

 

$

687

 

$

2,674

 

 

$

715

 

$

731

 

$

881

 

$

2,327

 

Northeast G&P

 

418

 

 

450

 

 

464

 

 

464

 

 

1,796

 

 

 

470

 

 

515

 

 

454

 

 

1,439

 

West

 

260

 

 

288

 

 

337

 

 

326

 

 

1,211

 

 

 

304

 

 

312

 

 

315

 

 

931

 

Gas & NGL Marketing Services

 

13

 

 

(282

)

 

20

 

 

209

 

 

(40

)

 

 

567

 

 

68

 

 

43

 

 

678

 

Other

 

5

 

 

139

 

 

140

 

 

150

 

 

434

 

 

 

74

 

 

41

 

 

81

 

 

196

 

Total Modified EBITDA

$

1,393

 

$

1,247

 

$

1,599

 

$

1,836

 

$

6,075

 

 

$

2,130

 

$

1,667

 

$

1,774

 

$

5,571

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments (1):

 

 

 

 

 

 

 

 

 

 

Transmission & Gulf of Mexico

$

 

$

 

$

33

 

$

13

 

$

46

 

 

$

13

 

$

17

 

$

(127

)

$

(97

)

Northeast G&P

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31

 

 

31

 

West

 

 

 

8

 

 

 

 

 

 

8

 

 

 

(18

)

 

 

 

 

 

(18

)

Gas & NGL Marketing Services

 

52

 

 

288

 

 

18

 

 

(60

)

 

298

 

 

 

(336

)

 

(84

)

 

(27

)

 

(447

)

Other

 

66

 

 

(47

)

 

(13

)

 

(15

)

 

(9

)

 

 

6

 

 

11

 

 

1

 

 

18

 

Total Adjustments

$

118

 

$

249

 

$

38

 

$

(62

)

$

343

 

 

$

(335

)

$

(56

)

$

(122

)

$

(513

)

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA:

 

 

 

 

 

 

 

 

 

 

Transmission & Gulf of Mexico

$

697

 

$

652

 

$

671

 

$

700

 

$

2,720

 

 

$

728

 

$

748

 

$

754

 

$

2,230

 

Northeast G&P

 

418

 

 

450

 

 

464

 

 

464

 

 

1,796

 

 

 

470

 

 

515

 

 

485

 

 

1,470

 

West

 

260

 

 

296

 

 

337

 

 

326

 

 

1,219

 

 

 

286

 

 

312

 

 

315

 

 

913

 

Gas & NGL Marketing Services

 

65

 

 

6

 

 

38

 

 

149

 

 

258

 

 

 

231

 

 

(16

)

 

16

 

 

231

 

Other

 

71

 

 

92

 

 

127

 

 

135

 

 

425

 

 

 

80

 

 

52

 

 

82

 

 

214

 

Total Adjusted EBITDA

$

1,511

 

$

1,496

 

$

1,637

 

$

1,774

 

$

6,418

 

 

$

1,795

 

$

1,611

 

$

1,652

 

$

5,058

 

 

 

 

 

 

 

 

 

 

 

 

(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)

 

2022

 

2023

(Dollars in millions, except coverage ratios)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

 

1st Qtr

2nd Qtr

3rd Qtr

Year

 

 

 

 

 

 

 

 

 

 

 

Net cash provided (used) by operating activities

$

1,082

 

$

1,098

 

$

1,490

 

$

1,219

 

$

4,889

 

 

$

1,514

 

$

1,377

 

$

1,234

 

$

4,125

 

Exclude: Cash (provided) used by changes in:

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

3

 

 

794

 

 

(125

)

 

61

 

 

733

 

 

 

(1,269

)

 

(154

)

 

128

 

 

(1,295

)

Inventories, including write-downs

 

(178

)

 

177

 

 

77

 

 

(127

)

 

(51

)

 

 

(45

)

 

(19

)

 

7

 

 

(57

)

Other current assets and deferred charges

 

65

 

 

(50

)

 

47

 

 

(29

)

 

33

 

 

 

4

 

 

(28

)

 

29

 

 

5

 

Accounts payable

 

138

 

 

(828

)

 

(53

)

 

333

 

 

(410

)

 

 

1,017

 

 

203

 

 

(148

)

 

1,072

 

Accrued and other current liabilities

 

149

 

 

(125

)

 

(191

)

 

(42

)

 

(209

)

 

 

318

 

 

(246

)

 

42

 

 

114

 

Changes in current and noncurrent derivative assets and liabilities

 

(101

)

 

52

 

 

(37

)

 

(8

)

 

(94

)

 

 

(82

)

 

(37

)

 

(53

)

 

(172

)

Other, including changes in noncurrent assets and liabilities

 

67

 

 

65

 

 

73

 

 

11

 

 

216

 

 

 

40

 

 

47

 

 

53

 

 

140

 

Preferred dividends paid

 

(1

)

 

 

 

(1

)

 

(1

)

 

(3

)

 

 

(1

)

 

 

 

(1

)

 

(2

)

Dividends and distributions paid to noncontrolling interests

 

(37

)

 

(58

)

 

(46

)

 

(63

)

 

(204

)

 

 

(54

)

 

(58

)

 

(62

)

 

(174

)

Contributions from noncontrolling interests

 

3

 

 

5

 

 

7

 

 

3

 

 

18

 

 

 

3

 

 

15

 

 

 

 

18

 

Adjustment to exclude litigation-related charges in discontinued operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

115

 

 

1

 

 

116

 

Available funds from operations

$

1,190

 

$

1,130

 

$

1,241

 

$

1,357

 

$

4,918

 

 

$

1,445

 

$

1,215

 

$

1,230

 

$

3,890

 

 

 

 

 

 

 

 

 

 

 

 

Common dividends paid

$

518

 

$

517

 

$

518

 

$

518

 

$

2,071

 

 

$

546

 

$

545

 

$

544

 

$

1,635

 

 

 

 

 

 

 

 

 

 

 

 

Coverage ratio:

 

 

 

 

 

 

 

 

 

 

Available funds from operations divided by Common dividends paid

 

2.30

 

 

2.19

 

 

2.40

 

 

2.62

 

 

2.37

 

 

 

2.65

 

 

2.23

 

 

2.26

 

 

2.38

 

 
 
 
 

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)

 

 

 

2023 Guidance

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

 

Low

 

Mid

 

High

 

 

 

 

 

 

 

Net income (loss) from continuing operations

 

$

2,675

 

$

2,750

 

 

$

2,825

Provision (benefit) for income taxes

 

 

800

 

 

825

 

 

 

850

Interest expense

 

 

 

 

1,225

 

 

 

Equity (earnings) losses

 

 

 

 

(590

)

 

 

Proportional Modified EBITDA of equity-method investments

 

 

 

 

945

 

 

 

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

 

 

 

 

2,110

 

 

 

Other

 

 

 

 

(52

)

 

 

Modified EBITDA

 

$

7,113

 

$

7,213

 

 

$

7,313

EBITDA Adjustments

 

 

 

 

(513

)

 

 

Adjusted EBITDA

 

$

6,600

 

$

6,700

 

 

$

6,800

 

 

 

 

 

 

 

Net income (loss) from continuing operations

 

$

2,675

 

$

2,750

 

 

$

2,825

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

 

 

 

 

130

 

 

 

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

 

$

2,545

 

$

2,620

 

 

$

2,695

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

Adjustments included in Modified EBITDA (1)

 

 

 

 

(513

)

 

 

Adjustments below Modified EBITDA (2)

 

 

 

 

59

 

 

 

Allocation of adjustments to noncontrolling interests

 

 

 

 

 

 

 

Total adjustments

 

 

 

 

(454

)

 

 

Less tax effect for above items (3)

 

 

 

 

84

 

 

 

Adjusted income from continuing operations available to common stockholders

 

$

2,175

 

$

2,250

 

 

$

2,325

Adjusted income from continuing operations - diluted earnings per common share

 

$

1.78

 

$

1.84

 

 

$

1.90

Weighted-average shares - diluted (millions)

 

 

 

 

1,222

 

 

 

 

 

 

 

 

 

 

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)

 

$

5,075

 

$

5,175

 

 

$

5,275

Preferred dividends paid

 

 

 

 

(3

)

 

 

Dividends and distributions paid to noncontrolling interests

 

 

 

 

(210

)

 

 

Contributions from noncontrolling interests

 

 

 

 

22

 

 

 

Adjustment to exclude litigation-related charges in discontinued operations

 

 

 

 

116

 

 

 

Available funds from operations (AFFO)

 

$

5,000

 

$

5,100

 

 

$

5,200

AFFO per common share

 

$

4.09

 

$

4.17

 

 

$

4.26

Common dividends paid

 

 

 

$

2,180

 

 

 

Coverage Ratio (AFFO/Common dividends paid)

 

2.29x

 

2.34x

 

2.39x

 

 

 

 

 

 

 

(1) 1Q, 2Q and 3Q adjustments of ($513) million as shown in the "Reconciliation of Income/(Loss) from Continuing Operations Attributable to The Williams Companies, Inc. to Non-GAAP Adjusted Income"

(2) Includes 1Q, 2Q and 3Q amortization of intangible assets from Sequent acquisition of $44 million and 4Q amortization of $15 million

(3) Includes 1Q, 2Q and 3Q tax on adjustments of $113 million, 3Q adjustment associated with a further decrease in our estimated deferred state income tax rate of ($25) million, and 4Q tax on adjustments of ($4) 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 and the developing conflict between Israel and Hamas;
  • 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, 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.
 
 
Copyright © 2010-2020 MillValley.com & California Media Partners, LLC. All rights reserved.