-
3Q 2015 Adjusted EBITDA is $1.1 Billion, Up 21% vs. 3Q 2014
-
Williams Partners Fee-Based Revenues Up $204 Million or 18% on
Contributions from Major New Projects, Access Midstream Growth
Williams (NYSE: WMB) today announced third-quarter 2015 adjusted EBITDA
of $1.1 billion, compared with $908 million in third quarter 2014, an
increase of $195 million, or 21 percent.
Year-to-date 2015, Williams reported $3.04 billion in adjusted EBITDA, a
$539 million, or 22 percent increase from the same period last year. The
increases in both the quarterly and year-to-date periods were driven
primarily by Williams Partners’ adjusted EBITDA, which increased $193
million in the quarter and $633 million year-to-date 2015.
Williams Summary Financial Information
|
|
|
3Q
|
|
|
|
YTD
|
Amounts in millions, except per-share amounts. Per share amounts
are reported on a diluted basis. All amounts are attributable to The
Williams Companies, Inc.
|
|
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (1)
|
|
|
$1,103
|
|
|
$908
|
|
|
|
$3,038
|
|
|
$2,499
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income from continuing operations (1)
|
|
|
$167
|
|
|
$157
|
|
|
|
$399
|
|
|
$505
|
Adjusted income from continuing operations per share (1)
|
|
|
$0.22
|
|
|
$0.21
|
|
|
|
$0.53
|
|
|
$0.71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) (2)
|
|
|
($40)
|
|
|
$1,678
|
|
|
|
$144
|
|
|
$1,921
|
Net income (loss) per share (2)
|
|
|
($0.05)
|
|
|
$2.22
|
|
|
|
$0.19
|
|
|
$2.68
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Schedules reconciling adjusted EBITDA, adjusted income from
continuing operations (non-GAAP measures) are available at www.williams.com
and as an attachment to this news release.
|
|
(2) Amounts reported for the 2015 periods reflect pre-tax
impairment charges totaling $477 million associated with certain
equity-method investments. The 2014 results include a $2.522 billion
pre-tax non-cash re-measurement gain related to the consolidation of
our previous equity-method investment in Access Midstream Partners
as of July 1, 2014.
|
|
Williams reported adjusted income from continuing operations of $167
million, or $0.22 per share, in third quarter 2015, compared with $157
million, or $0.21 per share, in third quarter 2014. The increase in
adjusted income for third quarter 2015 is due primarily to new fee
revenue associated with certain growth projects that were placed in
service in 2014 and 2015 and olefins margins from the Geismar plant’s
return to service. These increases were partially offset by declines in
NGL margins driven by lower prices, as well as higher depreciation
expense due to significant projects that were placed into service in
2014 and 2015 and increased net interest expense.
Year-to-date 2015, Williams reported $399 million in adjusted income
from continuing operations, a $106 million decrease from the same period
last year. The decrease in year-to-date adjusted income was driven by
the absence of assumed Geismar business interruption proceeds in 2015,
as well as the same factors that drove the changes in quarterly adjusted
income.
Williams reported unaudited third quarter 2015 net loss attributable to
Williams of $40 million, or $0.05 per share on a diluted basis, compared
with third quarter 2014 net income of $1.678 billion, or $2.22 per share
on a diluted basis.
The unfavorable change was primarily the result of the absence of a
$2.522 billion pre-tax non-cash re-measurement gain in 2014 related to
the consolidation of our previous equity-method investment in Access
Midstream Partners as of July 1, 2014, as well as $477 million of
pre-tax impairment charges in 2015 associated with certain equity-method
investments. These items have been adjusted out of the adjusted income
from continuing operations measure previously discussed. The unfavorable
change also reflects declines in NGL margins and higher operating,
depreciation, general and administrative, and interest expenses
partially offset by increased fee-based revenues and higher olefins
margins.
Year-to-date 2015, Williams reported net income of $144 million, or
$0.19 per share on a diluted basis, compared with net income of $1.921
billion, or $2.68 per share, for the same period last year. The
year-to-date decrease in net income was driven primarily by the same
factors described above.
CEO Comment
Alan Armstrong, Williams’ president and chief executive officer, made
the following comments:
“Our strong third quarter results underscore the effectiveness of our
strategy to connect the best natural gas supplies to the best markets
with fee-based infrastructure, which accounted for more than 90 percent
of our gross margin. Williams Partners achieved record distributable
cash flow and delivered adjusted EBITDA growth across four of the
partnership’s five operating areas.
“In September, we completed Transco’s Virginia Southside Expansion and
we’re on track to place into full service the Leidy Southeast Expansion
by the end of the year, helping relieve supply bottlenecks in the
Northeast and creating more fee-based revenue. Supply development in the
Northeast will continue to be hampered until constraints are addressed.
Fortunately, Williams Partners and other industry participants are hard
at work implementing projects that will solve this problem.
“We recognize the fundamental pressures impacting our direct commodity
margins and volume growth on our gathering and processing systems.
However, our unique position and backlog of fully contracted,
demand-driven projects will drive our continued operating cash flow
growth.”
Business Segment Results
Williams’ business segments for financial reporting are Williams
Partners, Williams NGL & Petchem Services and Other.
For periods prior to July 1, 2014, the Other segment includes Williams’
equity earnings from its 50-percent interest in privately held Access
Midstream Partners GP, L.L.C. and an approximate 23-percent
limited-partner interest in Access Midstream Partners, L.P. As a result
of Williams’ acquisition of additional ownership interests, periods
after July 1, 2014 include the consolidated results of Access Midstream
Partners. Furthermore, following the closing of the merger between
Williams Partners and Access Midstream Partners in February 2015, the
consolidated results of Access Midstream for periods following July 1,
2014 are now reported as part of the Williams Partners segment.
Williams NGL & Petchem Services segment is comprised of projects in
various stages of development, including offgas processing at the CNRL’s
Horizon upgrader plant as well as petchem pipeline projects on the Gulf
Coast.
Williams
|
|
|
Adjusted EBITDA
|
|
|
|
3Q
|
|
|
|
YTD
|
Amounts in millions
|
|
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Williams Partners
|
|
|
$1,100
|
|
|
$907
|
|
|
|
$3,025
|
|
|
$2,392
|
Williams NGL & Petchem
|
|
|
(5)
|
|
|
(4)
|
|
|
|
(13)
|
|
|
(16)
|
Other
|
|
|
8
|
|
|
5
|
|
|
|
26
|
|
|
123
|
Total
|
|
|
$1,103
|
|
|
$908
|
|
|
|
$3,038
|
|
|
$2,499
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedules reconciling adjusted EBITDA to modified EBITDA and net
income are attached to this news release.
|
The first and second quarters of 2014 include Williams’
proportional share of the adjusted EBITDA from its equity-method
investment in Access Midstream in its Other segment. Following the
closing of the merger between Williams Partners and Access
Midstream, the consolidated results of Access Midstream for periods
after July 1, 2014, are reported as part of the Williams Partners
segment. Williams NGL & Petchem Services segment is comprised of
projects in various stages of development, including the CNRL
Horizon offgas processing project in Canada as well as NGL and
petrochemical pipeline projects on the Gulf Coast.
|
|
Williams Partners Segment
Williams Partners is focused on natural gas and natural gas liquids
(NGL) transportation, gathering, treating, processing and storage; NGL
fractionation; olefins production; and crude oil transportation.
Williams Partners reported third quarter 2015 adjusted EBITDA of $1.1
billion, a $193 million, or 21 percent, increase from third quarter
2014. The increase in adjusted EBITDA in third quarter 2015 was driven
by $204 million, or 18 percent, higher fee-based revenues. Olefins
margins increased $58 million reflecting full production at the expanded
Geismar plant in third quarter 2015 at multi-year low per unit ethylene
margins, partially offset by lower margins from our Canadian operations.
Additionally, the proportional EBITDA from non-consolidated equity
investments increased $52 million for third quarter 2015 versus third
quarter 2014, due primarily to Discovery’s Keathley Canyon Connector
project.
Partially offsetting these increases were $68 million in lower NGL
margins due primarily to NGL prices that remain at 10-year lows, as well
as $51 million higher operating and general and administrative expenses
versus third quarter 2014 primarily reflecting higher costs associated
with our growing businesses.
Year-to-date 2015, Williams Partners reported adjusted EBITDA of $3.025
billion, a $633 million, or 26 percent, increase from the same period
last year. The year-to-date increase in adjusted EBITDA was driven
primarily by consolidation of Access Midstream for all of 2015 versus
only the third quarter in 2014.
Williams Partners’ complete financial results for third quarter 2015 are
provided in the earnings news release issued today by Williams Partners.
Other Segment
Year-to-date 2014 includes $104 million for Williams’ proportional share
of the adjusted EBITDA from Williams’ equity-method investment in Access
Midstream, L.P. As a result of Williams’ acquisition of additional
ownership interests, periods after July 1, 2014 include the consolidated
results of Access Midstream Partners in the Williams Partners segment.
Other
As announced on Sept. 28 in connection with the proposed business
combination transaction between Williams and Energy Transfer Equity,
L.P., Williams and Williams Partners withdrew previous financial
guidance and adopted a policy of no longer providing financial guidance.
Third-Quarter 2015 Materials to be Posted Shortly; Q&A Webcast
Scheduled for Tomorrow
Williams’ third-quarter 2015 financial results package will be posted
shortly at www.williams.com.
The package will include the data book and analyst package.
The company and the partnership will host a conference call and live
webcast on Thursday, Oct. 29, at 9 a.m. EDT. A limited number of phone
lines will be available at (800) 505-9568. International callers should
dial (416) 204-9271. A link to the webcast, as well as replays of the
webcast in both streaming and downloadable podcast formats, will be
available following the event at www.williams.com.
Form 10-Q
The company plans to file its third quarter 2015 Form 10-Q with the
Securities and Exchange Commission this week. Once filed, the document
will be available on both the SEC and Williams websites.
Non-GAAP Measures
This news release may include certain financial measures – adjusted
EBITDA, adjusted income from continuing operations (“earnings”),
adjusted earnings per share – that are non-GAAP financial measures as
defined under the rules of the Securities and Exchange Commission.
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, gain on remeasurement of equity
method investment, impairments of equity investments, 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 investments.
Adjusted EBITDA further excludes items of income or loss that we
characterize as unrepresentative of our ongoing operations and may
include assumed business interruption insurance related to the Geismar
plant. Management believes these measures provide investors meaningful
insight into results from 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 the Company’s
assets and the cash that the business is generating.
Neither adjusted EBITDA nor adjusted income from continuing 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.
About Williams
Williams (NYSE: WMB) is a premier provider of large-scale infrastructure
connecting North American natural gas and natural gas products to
growing demand for cleaner fuel and feedstocks. Headquartered in Tulsa,
Okla., Williams owns approximately 60 percent of Williams Partners L.P.
(NYSE: WPZ), including all of the 2 percent general-partner interest.
Williams Partners is an industry-leading, large-cap master limited
partnership with operations across the natural gas value chain from
gathering, processing and interstate transportation of natural gas and
natural gas liquids to petchem production of ethylene, propylene and
other olefins. With major positions in top U.S. supply basins and also
in Canada, Williams Partners owns and operates more than 33,000 miles of
pipelines system wide – including the nation’s largest volume and
fastest growing pipeline – providing natural gas for clean-power
generation, heating and industrial use. Williams Partners’ operations
touch approximately 30 percent of U.S. natural gas. www.williams.com
Forward-Looking Statements
The reports, filings, and other public announcements of The Williams
Companies, Inc. (Williams) and Williams Partners L.P. (WPZ) 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 and Section 21E of the Securities
Exchange Act of 1934, as amended. We make these forward-looking
statements in reliance on the safe harbor protections provided under the
Private Securities Litigation Reform Act of 1995.
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:
-
The status, expected timing and expected outcome of the proposed
merger between Williams and Energy Transfer Corp LP (ETC Merger);
-
Statements regarding the proposed ETC Merger;
-
Our beliefs relating to value creation as a result of the proposed
ETC Merger;
-
Benefits and synergies of the proposed ETC Merger;
-
Future opportunities for the combined company;
-
Other statements regarding Williams’ and Energy Transfer Equity,
L.P. and its affiliates’ (collectively, Energy Transfer) future
beliefs, expectations, plans, intentions, financial condition or
performance;
-
Events which may occur subsequent to the proposed ETC Merger
including events which directly impact WPZ’s business;
-
Expected levels of cash distributions by WPZ with respect to
general partner interests, incentive distribution rights and limited
partner interests;
-
Levels of dividends to Williams stockholders;
-
Future credit ratings of Williams, WPZ and their affiliates;
-
Amounts and nature of future capital expenditures;
-
Expansion and growth of our business and operations;
-
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 olefins prices, supply, and
demand; and
-
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 document. 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:
-
Satisfaction of the conditions to the completion of the proposed
ETC Merger, including receipt of the approval of Williams’
stockholders;
-
The timing and likelihood of completion of the proposed ETC Merger,
including the timing, receipt and terms and conditions of any required
governmental and regulatory approvals for the proposed ETC Merger that
could reduce anticipated benefits or cause the parties to abandon the
proposed transaction;
-
Energy Transfer’s plans for WPZ, as well as the other master
limited partnerships it currently controls, following the completion
of the proposed ETC merger;
-
The possibility that the expected synergies and value creation from
the proposed ETC Merger will not be realized or will not be realized
within the expected time period;
-
The risk that the businesses of Williams and Energy Transfer will
not be integrated successfully;
-
Disruption from the proposed ETC Merger making it more difficult to
maintain business and operational relationships;
-
The risk that unexpected costs will be incurred in connection with
the proposed ETC Merger;
-
The possibility that the proposed ETC Merger does not close,
including due to the failure to satisfy the closing conditions;
-
Whether WPZ will produce sufficient cash flows to provide the level
of cash distributions we expect;
-
Whether Williams is able to pay current and expected levels of
dividends;
-
Availability of supplies, market demand and volatility of prices;
-
Inflation, interest rates, fluctuation in foreign exchange 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);
-
The strength and financial resources of our competitors and the
effects of competition;
-
Whether we are able to successfully identify, evaluate and execute
investment opportunities;
-
Our ability to acquire new businesses and assets and successfully
integrate those operations and assets into our existing businesses as
well as successfully expand our facilities;
-
Development of alternative energy sources;
-
The impact of operational and developmental hazards and unforeseen
interruptions;
-
Costs of, changes in, or the results of laws, government
regulations (including safety and environmental regulations),
environmental liabilities, litigation, and rate proceedings;
-
Williams’ costs and funding obligations for defined benefit pension
plans and other postretirement benefit plans;
-
WPZ’s allocated costs for defined benefit pension plans and other
postretirement benefit plans sponsored by its affiliates;
-
Changes in maintenance and construction costs;
-
Changes in the current geopolitical situation;
-
Our exposure to the credit risk of our customers and counterparties;
-
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 amount of cash distributions from and capital requirements of
our investments and joint ventures in which we participate;
-
Risks associated with weather and natural phenomena, including
climate conditions;
-
Acts of terrorism, including cybersecurity threats and related
disruptions; and
-
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 may cause our intentions to change from those statements of
intention set forth in this document. 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 Williams’ and
WPZ’s Annual Reports on Form 10-K filed with the SEC on February 25,
2015 and in Part II, Item 1A. Risk Factors in our Quarterly Reports on
Form 10-Q available from our offices or from our website at www.williams.com.
|
|
Reconciliation of Income (Loss) from Continuing Operations
Attributable to The Williams Companies, Inc. to Adjusted Income
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
|
|
2015
|
(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
|
|
|
$
|
140
|
|
|
$
|
99
|
|
|
$
|
1,678
|
|
|
$
|
193
|
|
|
$
|
2,110
|
|
|
|
|
$
|
70
|
|
|
$
|
114
|
|
|
$
|
(40
|
)
|
|
$
|
144
|
|
Income (loss) from continuing operations - diluted earnings per
common share
|
|
|
$
|
.20
|
|
|
$
|
.14
|
|
|
$
|
2.22
|
|
|
$
|
.26
|
|
|
$
|
2.91
|
|
|
|
|
$
|
.09
|
|
|
$
|
.15
|
|
|
$
|
(.05
|
)
|
|
$
|
.19
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Williams Partners
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACMP Acquisition-related expenses
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
13
|
|
|
$
|
1
|
|
|
$
|
16
|
|
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
ACMP Merger and transition-related expenses
|
|
|
|
—
|
|
|
|
—
|
|
|
|
11
|
|
|
|
30
|
|
|
|
41
|
|
|
|
|
|
32
|
|
|
|
14
|
|
|
|
2
|
|
|
|
48
|
|
|
|
Impairment of certain assets
|
|
|
|
—
|
|
|
|
17
|
|
|
|
—
|
|
|
|
35
|
|
|
|
52
|
|
|
|
|
|
3
|
|
|
|
24
|
|
|
|
2
|
|
|
|
29
|
|
|
|
Share of impairment at equity-method investments
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
8
|
|
|
|
1
|
|
|
|
17
|
|
|
|
26
|
|
|
|
Contingency gain, net of legal costs
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(143
|
)
|
|
|
(143
|
)
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
Net gain related to partial acreage dedication release
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(12
|
)
|
|
|
—
|
|
|
|
(12
|
)
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
Loss related to compressor station fire
|
|
|
|
6
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
6
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
Geismar Incident adjustment for insurance and timing
|
|
|
|
54
|
|
|
|
96
|
|
|
|
—
|
|
|
|
(71
|
)
|
|
|
79
|
|
|
|
|
|
—
|
|
|
|
(126
|
)
|
|
|
—
|
|
|
|
(126
|
)
|
|
|
Loss related to Geismar Incident
|
|
|
|
—
|
|
|
|
—
|
|
|
|
5
|
|
|
|
5
|
|
|
|
10
|
|
|
|
|
|
1
|
|
|
|
1
|
|
|
|
—
|
|
|
|
2
|
|
|
|
Loss (recovery) related to Opal incident
|
|
|
|
—
|
|
|
|
6
|
|
|
|
—
|
|
|
|
2
|
|
|
|
8
|
|
|
|
|
|
1
|
|
|
|
—
|
|
|
|
(8
|
)
|
|
|
(7
|
)
|
|
|
Loss on sale of equipment
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
7
|
|
|
|
7
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
Estimated minimum volume commitments
|
|
|
|
—
|
|
|
|
—
|
|
|
|
47
|
|
|
|
(114
|
)
|
|
|
(67
|
)
|
|
|
|
|
55
|
|
|
|
55
|
|
|
|
65
|
|
|
|
175
|
|
|
|
Gain on extinguishment of debt
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
(14
|
)
|
|
|
—
|
|
|
|
(14
|
)
|
|
|
Proposed WMB/WPZ merger expenses
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1
|
|
|
|
1
|
|
|
|
Total Williams Partners adjustments
|
|
|
|
60
|
|
|
|
121
|
|
|
|
64
|
|
|
|
(248
|
)
|
|
|
(3
|
)
|
|
|
|
|
100
|
|
|
|
(45
|
)
|
|
|
79
|
|
|
|
134
|
|
Williams NGL & Petchem Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bluegrass Pipeline project development costs
|
|
|
|
25
|
|
|
|
1
|
|
|
|
—
|
|
|
|
(1
|
)
|
|
|
25
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
Bluegrass Pipeline and Moss Lake write-off of previously
capitalized project development costs
|
|
|
|
70
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
70
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
Total Williams NGL & Petchem Services adjustments
|
|
|
|
95
|
|
|
|
1
|
|
|
|
—
|
|
|
|
(1
|
)
|
|
|
95
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WMB impact of ACMP transaction-related compensation expenses
|
|
|
|
—
|
|
|
|
—
|
|
|
|
19
|
|
|
|
—
|
|
|
|
19
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
Other ACMP Merger and transition-related expenses
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3
|
|
|
|
7
|
|
|
|
10
|
|
|
|
|
|
6
|
|
|
|
9
|
|
|
|
7
|
|
|
|
22
|
|
|
|
Expenses associated with strategic alternatives
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
7
|
|
|
|
18
|
|
|
|
25
|
|
|
|
Total Other adjustments
|
|
|
|
—
|
|
|
|
—
|
|
|
|
22
|
|
|
|
7
|
|
|
|
29
|
|
|
|
|
|
6
|
|
|
|
16
|
|
|
|
25
|
|
|
|
47
|
|
Adjustments included in Modified EBITDA
|
|
|
|
155
|
|
|
|
122
|
|
|
|
86
|
|
|
|
(242
|
)
|
|
|
121
|
|
|
|
|
|
106
|
|
|
|
(29
|
)
|
|
|
104
|
|
|
|
181
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments below Modified EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of equity-method investments
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
461
|
|
|
|
461
|
|
|
|
ACMP Acquisition-related financing expenses - Williams Partners
|
|
|
|
—
|
|
|
|
9
|
|
|
|
—
|
|
|
|
—
|
|
|
|
9
|
|
|
|
|
|
2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2
|
|
|
|
Gain on remeasurement of equity-method investment in ACMP - Other
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(2,522
|
)
|
|
|
(22
|
)
|
|
|
(2,544
|
)
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
Gain associated with ACMP equity issuance - Other
|
|
|
|
—
|
|
|
|
(4
|
)
|
|
|
4
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
Interest income on receivable from sale of Venezuela assets -
Other
|
|
|
|
(13
|
)
|
|
|
(14
|
)
|
|
|
(14
|
)
|
|
|
—
|
|
|
|
(41
|
)
|
|
|
|
|
—
|
|
|
|
(9
|
)
|
|
|
(18
|
)
|
|
|
(27
|
)
|
|
|
Allocation of adjustments to noncontrolling interests
|
|
|
|
(25
|
)
|
|
|
(36
|
)
|
|
|
3
|
|
|
|
38
|
|
|
|
(20
|
)
|
|
|
|
|
(33
|
)
|
|
|
21
|
|
|
|
(212
|
)
|
|
|
(224
|
)
|
|
|
|
|
|
|
(38
|
)
|
|
|
(45
|
)
|
|
|
(2,529
|
)
|
|
|
16
|
|
|
|
(2,596
|
)
|
|
|
|
|
(31
|
)
|
|
|
12
|
|
|
|
231
|
|
|
|
212
|
|
Total adjustments
|
|
|
|
117
|
|
|
|
77
|
|
|
|
(2,443
|
)
|
|
|
(226
|
)
|
|
|
(2,475
|
)
|
|
|
|
|
75
|
|
|
|
(17
|
)
|
|
|
335
|
|
|
|
393
|
|
Less tax effect for above items
|
|
|
|
(47
|
)
|
|
|
(32
|
)
|
|
|
925
|
|
|
|
41
|
|
|
|
887
|
|
|
|
|
|
(28
|
)
|
|
|
4
|
|
|
|
(129
|
)
|
|
|
(153
|
)
|
Adjustments for tax-related items (1)
|
|
|
|
(20
|
)
|
|
|
14
|
|
|
|
(3
|
)
|
|
|
2
|
|
|
|
(7
|
)
|
|
|
|
|
5
|
|
|
|
9
|
|
|
|
1
|
|
|
|
15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income from continuing operations available to common
stockholders
|
|
|
$
|
190
|
|
|
$
|
158
|
|
|
$
|
157
|
|
|
$
|
10
|
|
|
$
|
515
|
|
|
|
|
$
|
122
|
|
|
$
|
110
|
|
|
$
|
167
|
|
|
$
|
399
|
|
Adjusted diluted earnings per common share
|
|
|
$
|
.28
|
|
|
$
|
.23
|
|
|
$
|
.21
|
|
|
$
|
.01
|
|
|
$
|
.71
|
|
|
|
|
$
|
.16
|
|
|
$
|
.15
|
|
|
$
|
.22
|
|
|
$
|
.53
|
|
Weighted-average shares - diluted (thousands)
|
|
|
|
688,904
|
|
|
|
700,696
|
|
|
|
752,064
|
|
|
|
751,898
|
|
|
|
723,641
|
|
|
|
|
|
752,028
|
|
|
|
752,775
|
|
|
|
753,100
|
|
|
|
752,638
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
The first quarter of 2014 includes an unfavorable adjustment related
to completing the dropdown of certain Canadian operations to
Williams Partners. The second quarter of 2014 includes a favorable
adjustment to reflect taxes on undistributed earnings of certain
foreign operations that are no longer considered permanently
reinvested.
|
|
|
|
Note:
|
|
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.
|
|
|
|
|
Reconciliation of Non-GAAP “Modified EBITDA” to Non-GAAP
“Adjusted EBITDA”
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
|
|
2015
|
(Dollars in millions)
|
|
|
1st Qtr
|
|
2nd Qtr
|
|
3rd Qtr
|
|
4th Qtr
|
|
Year
|
|
|
|
1st Qtr
|
|
2nd Qtr
|
|
3rd Qtr
|
|
Year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$
|
196
|
|
|
$
|
127
|
|
|
$
|
1,708
|
|
|
$
|
308
|
|
|
$
|
2,339
|
|
|
|
|
$
|
13
|
|
|
$
|
183
|
|
|
$
|
(173
|
)
|
|
$
|
23
|
|
|
|
(Income) loss from discontinued operations
|
|
|
|
—
|
|
|
|
(4
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(4
|
)
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
Provision (benefit) for income taxes
|
|
|
|
51
|
|
|
|
84
|
|
|
|
998
|
|
|
|
116
|
|
|
|
1,249
|
|
|
|
|
|
30
|
|
|
|
83
|
|
|
|
(65
|
)
|
|
|
48
|
|
|
|
Interest expense
|
|
|
|
140
|
|
|
|
163
|
|
|
|
210
|
|
|
|
234
|
|
|
|
747
|
|
|
|
|
|
251
|
|
|
|
262
|
|
|
|
263
|
|
|
|
776
|
|
|
|
Equity (earnings) losses
|
|
|
|
48
|
|
|
|
(37
|
)
|
|
|
(66
|
)
|
|
|
(89
|
)
|
|
|
(144
|
)
|
|
|
|
|
(51
|
)
|
|
|
(93
|
)
|
|
|
(92
|
)
|
|
|
(236
|
)
|
|
|
Gain on remeasurement of equity-method investments
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(2,522
|
)
|
|
|
(22
|
)
|
|
|
(2,544
|
)
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
Impairment of equity-method investments
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
461
|
|
|
|
461
|
|
|
|
Other investing (income) loss
|
|
|
|
(14
|
)
|
|
|
(18
|
)
|
|
|
(11
|
)
|
|
|
—
|
|
|
|
(43
|
)
|
|
|
|
|
—
|
|
|
|
(9
|
)
|
|
|
(18
|
)
|
|
|
(27
|
)
|
|
|
Proportional Modified EBITDA of equity-method investments
|
|
|
|
28
|
|
|
|
113
|
|
|
|
132
|
|
|
|
165
|
|
|
|
438
|
|
|
|
|
|
136
|
|
|
|
183
|
|
|
|
185
|
|
|
|
504
|
|
|
|
Depreciation and amortization expenses
|
|
|
|
214
|
|
|
|
214
|
|
|
|
369
|
|
|
|
379
|
|
|
|
1,176
|
|
|
|
|
|
427
|
|
|
|
428
|
|
|
|
432
|
|
|
|
1,287
|
|
|
|
Accretion for asset retirement obligations associated with
nonregulated operations
|
|
|
|
3
|
|
|
|
6
|
|
|
|
4
|
|
|
|
5
|
|
|
|
18
|
|
|
|
|
|
6
|
|
|
|
9
|
|
|
|
6
|
|
|
|
21
|
|
Modified EBITDA
|
|
|
$
|
666
|
|
|
$
|
648
|
|
|
$
|
822
|
|
|
$
|
1,096
|
|
|
$
|
3,232
|
|
|
|
|
$
|
812
|
|
|
$
|
1,046
|
|
|
$
|
999
|
|
|
$
|
2,857
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Williams Partners
|
|
|
$
|
708
|
|
|
$
|
596
|
|
|
$
|
843
|
|
|
$
|
1,097
|
|
|
$
|
3,244
|
|
|
|
|
$
|
817
|
|
|
$
|
1,053
|
|
|
$
|
1,021
|
|
|
$
|
2,891
|
|
|
Williams NGL & Petchem Services
|
|
|
|
(100
|
)
|
|
|
(8
|
)
|
|
|
(4
|
)
|
|
|
(3
|
)
|
|
|
(115
|
)
|
|
|
|
|
(5
|
)
|
|
|
(3
|
)
|
|
|
(5
|
)
|
|
|
(13
|
)
|
|
Other
|
|
|
|
58
|
|
|
|
60
|
|
|
|
(17
|
)
|
|
|
2
|
|
|
|
103
|
|
|
|
|
|
—
|
|
|
|
(4
|
)
|
|
|
(17
|
)
|
|
|
(21
|
)
|
|
|
Total Modified EBITDA
|
|
|
$
|
666
|
|
|
$
|
648
|
|
|
$
|
822
|
|
|
$
|
1,096
|
|
|
$
|
3,232
|
|
|
|
|
$
|
812
|
|
|
$
|
1,046
|
|
|
$
|
999
|
|
|
$
|
2,857
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments included in Modified EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Williams Partners
|
|
|
$
|
60
|
|
|
$
|
121
|
|
|
$
|
64
|
|
|
$
|
(248
|
)
|
|
$
|
(3
|
)
|
|
|
|
$
|
100
|
|
|
$
|
(45
|
)
|
|
$
|
79
|
|
|
$
|
134
|
|
|
Williams NGL & Petchem Services
|
|
|
|
95
|
|
|
|
1
|
|
|
|
—
|
|
|
|
(1
|
)
|
|
|
95
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Other
|
|
|
|
—
|
|
|
|
—
|
|
|
|
22
|
|
|
|
7
|
|
|
|
29
|
|
|
|
|
|
6
|
|
|
|
16
|
|
|
|
25
|
|
|
|
47
|
|
|
|
EBITDA
|
|
|
$
|
155
|
|
|
$
|
122
|
|
|
$
|
86
|
|
|
$
|
(242
|
)
|
|
$
|
121
|
|
|
|
|
$
|
106
|
|
|
$
|
(29
|
)
|
|
$
|
104
|
|
|
$
|
181
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Williams Partners
|
|
|
$
|
768
|
|
|
$
|
717
|
|
|
$
|
907
|
|
|
$
|
849
|
|
|
$
|
3,241
|
|
|
|
|
$
|
917
|
|
|
$
|
1,008
|
|
|
$
|
1,100
|
|
|
$
|
3,025
|
|
|
Williams NGL & Petchem Services
|
|
|
|
(5
|
)
|
|
|
(7
|
)
|
|
|
(4
|
)
|
|
|
(4
|
)
|
|
|
(20
|
)
|
|
|
|
|
(5
|
)
|
|
|
(3
|
)
|
|
|
(5
|
)
|
|
|
(13
|
)
|
|
Other
|
|
|
|
58
|
|
|
|
60
|
|
|
|
5
|
|
|
|
9
|
|
|
|
132
|
|
|
|
|
|
6
|
|
|
|
12
|
|
|
|
8
|
|
|
|
26
|
|
|
|
Total Adjusted EBITDA
|
|
|
$
|
821
|
|
|
$
|
770
|
|
|
$
|
908
|
|
|
$
|
854
|
|
|
$
|
3,353
|
|
|
|
|
$
|
918
|
|
|
$
|
1,017
|
|
|
$
|
1,103
|
|
|
$
|
3,038
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20151028006500/en/
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