Williams (NYSE: WMB) today announced its financial results for the three
and 12 months ended Dec. 31, 2018.
Highlights
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Net Income (Loss) Attributable to Williams Available to Common
Stockholders of ($572) Million for 4Q 2018 and ($156) Million for
Full-Year 2018 (impacted by certain asset impairments and gains as
described in this press release)
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Net Income (Loss) Per Share of ($0.47) for 4Q 2018 and ($0.16) for
Full-Year 2018
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4Q 2018 Cash Flow From Operations of $962 Million; Up $104 Million
over 4Q 2017
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4Q 2018 Adjusted Income Per Share of $0.19; Full-Year 2018 Adjusted
Income Per Share of $0.79
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4Q 2018 Adjusted EBITDA of $1.197 Billion; Up $37 Million over 4Q 2017
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Full-Year 2018 Adjusted EBITDA of $4.638 Billion; Up $107 Million over
Full-Year 2017
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4Q 2018 DCF of $748 Million; Coverage Ratio is 1.82; Full-Year 2018
DCF of $2.872 Billion; Coverage Ratio is 1.69
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Consolidated Net Debt/ 2018 Adjusted EBITDA Leverage Ratio of 4.80x;
Well Ahead of the Guided ~5x Ratio
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Placed Atlantic Sunrise Project into Full Service on Oct. 6, 2018;
Placed Gulf Connector into Full Service on Jan. 4, 2019
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4Q 2018 Northeast G&P EBITDA (both Modified and Adjusted) Up
Approximately 30% and NE Gathering Volumes Up 13% over 4Q 2017
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Completed Asset Sales Totaling $1.3 Billion during 4Q 2018
CEO Perspective
Alan Armstrong, president and chief executive officer, made the
following comments:
"Once again in 2018, our consistent natural gas-focused strategy
delivered as expected with solid and predictable growth. In fact, our
2018 Adjusted EBITDA was a new record even in the face of asset sales
totaling $4.6 billion over the past two and a half years that
dramatically reduced commodity exposure and improved leverage metrics
for WMB. Thanks to strong execution by our teams, we again delivered at
the top end of the range for nearly all of our key guidance metrics for
the year. Bringing the Atlantic Sunrise project online and dramatically
increasing gathering volumes in our Northeast G&P segment were just a
couple of the many achievements during the year.
"The quality and predictability of our cash flows, even in times of
commodity swings, combined with the accelerating demand for natural gas,
point to continued growth for us in 2019 as we enjoyed strong execution
on all of our major projects in 2018 and the beginning of 2019."
Armstrong added, "With the expected 15 percent compounded annual growth
rate for gathered volumes in our Northeast G&P segment expected through
2021, Transco's continued string of expansion projects, our recently
announced Bluestem Pipeline project, our joint venture in the Permian
with Brazos Midstream, the growing Rocky Mountain Midstream in the DJ
Basin and a growing list of deepwater discoveries, it's easy to see why
Williams is poised for additional growth in 2019 and beyond. And,
Williams is well-positioned for sustained growth as we continue to
capitalize on significant opportunities to connect low-cost natural gas
supplies to premier demand markets.
"The combined impact of strong business performance, capital discipline
and our ongoing portfolio optimization efforts continues to improve our
credit metrics. We finished 2018 with overall leverage of 4.80x, and we
are very focused on further improvement in 2019.”
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Williams Summary Financial Information
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4Q
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Full Year
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Amounts in millions, except per-share amounts. Per share amounts
are reported on a diluted basis. Net income (loss) amounts are
attributable to The Williams Companies, Inc. available to common
stockholders.
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2018
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2017
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2018
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2017
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GAAP Measures
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Cash Flow from Operations
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$
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962
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$
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858
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$
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3,293
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$
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3,089
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Net income (loss)
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($572
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)
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$
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1,687
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($156
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)
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$
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2,174
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Net income (loss) per share
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($0.47
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)
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$
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2.03
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($0.16
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)
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$
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2.62
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Non-GAAP Measures (1)
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Adjusted income
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$
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230
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$
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170
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$
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775
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$
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521
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Adjusted income per share
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$
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0.19
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$
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0.20
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$
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0.79
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$
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0.63
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Adjusted EBITDA
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$
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1,197
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$
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1,160
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$
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4,638
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$
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4,531
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Distributable Cash Flow
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$
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748
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$
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629
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$
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2,872
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$
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2,580
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Coverage Ratio
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1.82
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1.57
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1.69
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1.61
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(1) Schedules reconciling adjusted income from continuing
operations, adjusted EBITDA, Distributable Cash Flow and 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.
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Fourth-Quarter and Full-Year 2018 Financial Results
Williams reported unaudited fourth-quarter 2018 net income (loss)
attributable to Williams available to common stockholders of ($572)
million, a decrease of $2.259 billion from fourth-quarter 2017. The
unfavorable change was driven primarily by a $1.849 billion impairment
of certain gathering assets in the Barnett Shale, partially offset by
gains totaling $833 million from the sale of the Four Corners Area
("FCA") business, the sale of certain gulf coast pipeline systems, and
from the deconsolidation of certain former Permian Basin assets as part
of the formation of a new joint venture with Brazos Midstream. Although
our financial expectations for the Barnett assets have not materially
changed over the next several years, the impairment was the result of
reductions to our long-term estimate of revenues. Revenue estimates were
lowered due to the forward curve for gas prices in this basin that have
been impacted by the widening Permian basis differential. This resulted
in moving the asset from its historical carrying value down to a current
fair value. The impairment will reduce the book value for the assets and
reduce future depreciation, but it does not impact guidance for our key
financial metrics. Results also reflect the absence of a favorable
fourth-quarter 2017 net impact of $1.147 billion, related to the tax
provision benefit due to the Tax Cuts and Jobs Act of 2017 ("Tax Reform
Act") partially offset by regulatory charges associated with the Tax
Reform Act. The quarter benefited from a $111 million increase in
service revenues in the Atlantic-Gulf segment driven by Transco
expansion projects brought online in 2017 and 2018 and a $45 million
improvement in service revenues in the Northeast G&P segment driven by
higher gathering volumes compared to fourth-quarter 2017. Partially
offsetting the improvements were a $39 million decrease in commodity
margins due in part to the absence of results from the company's former
FCA business sold on Oct. 1, 2018, and a decline in service revenues in
the West segment driven by the sale of our FCA business, deconsolidation
of our Jackalope interest as of June 2018, as well as the timing of
recognizing minimum volume commitments (MVCs).
For the year, Williams reported unaudited net income (loss) attributable
to Williams available to common stockholders of ($156) million, a
decrease of $2.330 billion versus full-year 2017. The unfavorable change
was driven primarily by the previously described absence of the
favorable fourth-quarter 2017 net benefit associated with the Tax Reform
Act, $667 million of higher impairments of assets primarily reflecting
the Barnett impairment in 2018 exceeding the impairment of certain
gathering assets in the Mid-Continent region in 2017, $466 million of
lower gains on the sale of assets and lower investing income where the
gains from the sale of the Geismar olefins facility and the transaction
involving certain interests in the Delaware Basin and Marcellus Shale in
2017 exceeded the gains on the sale of the FCA business, the sale of
certain gulf coast pipeline systems, and from the deconsolidation of
both our Jackalope interest and certain former Permian Basin assets in
2018. Results benefited from a $270 million increase in service revenues
in the Atlantic-Gulf segment driven by Transco expansion projects
brought online in 2017 and 2018 and a $104 million improvement in
service revenues in the Northeast G&P segment driven by higher gathering
volumes. Partially offsetting the improvements were $79 million lower
commodity margins due primarily to the absence of results from our
former Geismar olefins facility sold in July 2017, and a decline in
service revenues in the West segment driven by the sale of our FCA
business, deconsolidation of our Jackalope interest as of June 2018, and
unfavorable changes in the recognition of deferred revenue driven by the
adoption of a new accounting standard in 2018.
Cash Flow From Operations
Cash flow from operations (CFFO) for fourth-quarter 2018 was $962
million, an increase of $104 million over fourth-quarter 2017.
Year-to-date, Williams’ CFFO totaled $3.293 billion compared with $3.089
billion for the prior year. The improvements compared to the prior year
periods were driven by increased operating income (excluding
impairments, gains and regulatory charges), due primarily to an increase
in service revenues associated with Transco expansion projects placed in
service in 2017 and 2018. The full-year improvement was partially offset
by a decline in distributions from unconsolidated affiliates, primarily
from deepwater Discovery Producer Services.
Adjusted Results
Williams reported fourth-quarter 2018 Adjusted income of $230 million, a
$60 million increase over fourth-quarter 2017. For the year, Williams
reported Adjusted income of $775 million, a $254 million improvement
over 2017. Both the quarterly and full-year measures reflect the
previously described changes in service revenues, partially offset by
commodity margin declines. Changes in service revenues for the
fourth-quarter and full-year periods were unfavorably impacted by $35
million and $100 million, respectively, reflecting the adoption of new
revenue recognition standards in 2018. The improvements in both periods
also reflect the benefit of less income allocated to noncontrolling
interests following the completion of the WPZ Merger in third-quarter
2018. The full-year change was also impacted by lower equity earnings
from Discovery attributable to Hadrian South production ending in
fourth-quarter 2017. Adjusted income per share was $0.19. Although
fourth-quarter 2018 adjusted income was $60 million higher than
fourth-quarter 2017, the per share amount was slightly unfavorable by
one cent due primarily to higher shares outstanding following completion
of the WPZ merger. For the year, Adjusted income per share was $0.79, a
25 percent improvement over the full-year 2017 result of $0.63.
Williams reported fourth-quarter 2018 Adjusted EBITDA of $1.197 billion,
a $37 million increase from fourth-quarter 2017. The improvement for
fourth-quarter 2018 over fourth-quarter 2017 was driven primarily by the
previously described increases in service revenues in the Atlantic-Gulf
and Northeast G&P segments and a $23 million increase in proportional
EBITDA of joint ventures due primarily to an increase in volumes in
various Northeast G&P gathering systems. Partially offsetting the
improvement were $39 million lower commodity margins primarily in the
West segment. The year-over-year comparison was unfavorably impacted by
$35 million from the adoption of new revenue recognition standards in
2018 and the absence of $27 million of Adjusted EBITDA from the
company's former FCA business, sold Oct. 1, 2018.
For the year, Williams reported Adjusted EBITDA of $4.638 billion, an
increase of $107 million over full-year 2017 results. The favorable
change was driven by the previously described increases in Atlantic-Gulf
and Northeast G&P segments. Partially offsetting the improvements was a
$35 million decrease in proportional EBITDA from joint ventures driven
by less production on the deepwater Discovery System attributable to
Hadrian South production ending in fourth-quarter 2017. The
year-over-year comparison was also unfavorably impacted by $100 million
from the adoption of new revenue recognition standards in 2018, the
absence of EBITDA earned by the former Geismar olefins plant of $72
million and the absence of fourth-quarter 2018 EBITDA earned by the
company's former FCA business of $27 million.
Distributable Cash Flow
For fourth-quarter 2018, Williams generated $748 million in
distributable cash flow (DCF) compared with $629 million in DCF for
fourth-quarter 2017. DCF was favorably impacted by the company's
improvement in Adjusted EBITDA and lower maintenance capital spending,
partially offset by higher net interest expense. Beginning with
first-quarter 2018 results, Williams has discontinued the adjustment
which removed the DCF associated with 2016 contract restructuring
prepayments in the Barnett Shale and Mid-Continent region. For
fourth-quarter 2018, the coverage ratio is 1.82.
For the year, Williams generated $2.872 billion in DCF, a $292 million
increase versus full-year 2017. DCF was favorably impacted by the
company's improvement in Adjusted EBITDA and eliminating the adjustment
in 2018 involving the removal of DCF associated with 2016 contract
restructuring prepayments in the Barnett Shale and Mid-Continent region,
partially offset by increased maintenance capital spending and higher
net interest expense. For full-year 2018, the coverage ratio is 1.69.
Business Segment Results
Williams' operations following the Aug. 10, 2018, completion of
Williams' acquisition of Williams Partners are comprised of the
following reportable segments: Atlantic-Gulf, West, Northeast G&P and
Other.
The below table reflects Modified and Adjusted EBITDA results for
fourth-quarter 2018 and full-year 2018, with comparisons to the previous
year for each of the segments.
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Williams
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Modified and Adjusted EBITDA
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Amounts in millions
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4Q 2018
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4Q 2017
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Full-Year 2018
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Full-Year 2017
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Modified
EBITDA
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Adjust.
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Adjusted EBITDA
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Modified
EBITDA
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Adjust.
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Adjusted
EBITDA
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Modified
EBITDA
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Adjust.
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Adjusted
EBITDA
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Modified
EBITDA
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Adjust.
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Adjusted
EBITDA
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Atlantic-Gulf
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605
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(76
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529
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(96
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529
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433
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2,023
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(92
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1,931
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1,238
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541
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1,779
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West
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(906
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1,264
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358
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286
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195
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481
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308
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1,269
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1,577
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412
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1,256
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1,668
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Northeast G&P
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300
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4
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304
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231
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7
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238
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1,086
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4
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1,090
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819
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140
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959
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Other*
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20
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(14
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6
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(103
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111
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8
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(29
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69
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40
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997
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(872
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125
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Totals
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$
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19
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$
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1,178
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$
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1,197
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$
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318
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$
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842
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$
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1,160
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$
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3,388
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$
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1,250
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$
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4,638
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$
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3,466
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$
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1,065
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$
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4,531
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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.
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*In 2017, Other Modified EBITDA included a $1.095 billion gain on
sale of the Company's former Geismar olefins plant, which was sold
July 6, 2017.
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Atlantic-Gulf
This segment includes Williams' interstate natural gas pipeline,
Transco, and significant natural gas gathering and processing and crude
oil production handling and transportation assets in the Gulf Coast
region, including a 51 percent interest in Gulfstar One (a consolidated
entity), which is a proprietary floating production system, and the
Bayou Ethane feedstock pipeline, as well as a 50 percent equity-method
investment in Gulfstream, a 41 percent interest in Constitution (a
consolidated entity) which is developing a pipeline project, and a 60
percent equity-method investment in Discovery.
The Atlantic-Gulf segment reported Modified EBITDA of $605 million for
fourth-quarter 2018, compared with ($96) million for fourth-quarter
2017. Adjusted EBITDA increased by $96 million to $529 million for the
same time period. Modified EBITDA results benefited from the absence of
$493 million of non-cash regulatory charges at Transco in fourth-quarter
2017 associated with the Tax Reform Act and an $81 million gain on the
sale of certain gulf coast pipeline systems in fourth-quarter 2018,
which do not impact Adjusted EBITDA. The improvement in both measures
reflects $111 million increased service revenues driven primarily by
Transco expansion projects placed into service in 2017 and 2018.
For the year, the Atlantic-Gulf segment reported Modified EBITDA of
$2.023 billion, an increase of $785 million over full-year 2017 results.
Adjusted EBITDA increased $152 million to $1.931 billion. Modified
EBITDA results benefited from the absence of the non-cash regulatory
charges associated with the Tax Reform Act and an $81 million gain on
the sale of certain gulf coast pipeline systems, which do not impact
Adjusted EBITDA. The improvement in both measures reflects $270 million
increased service revenues driven primarily by Transco expansion
projects placed into service in 2017 and 2018. Partially offsetting the
improvement was a $90 million decrease in proportional EBITDA from joint
ventures due primarily to less production on the deepwater Discovery
system attributable to Hadrian South production ending in fourth-quarter
2017.
West
This segment includes Williams' interstate natural gas pipeline,
Northwest Pipeline, and natural gas gathering, processing, and treating
operations in Colorado, and Wyoming, as well as the Barnett Shale region
of north-central Texas, the Eagle Ford Shale region of south Texas, the
Haynesville Shale region of northwest Louisiana, and the Mid-Continent
region which includes the Anadarko, Arkoma, Delaware and Permian basins.
This reporting segment also includes an NGL and natural gas marketing
business, storage facilities, and an undivided 50 percent interest in an
NGL fractionator near Conway, Kansas, a 50 percent equity-method
investment in OPPL, a 50 percent interest in Jackalope Gas Gathering
Services, L.L.C. (Jackalope) (an equity-method investment following
deconsolidation as of June 30, 2018), a 50 percent equity-method
investment in Rocky Mountain Midstream (RMM) and a 15 percent
equity-method investment in Brazos Permian II, LLC. Through
third-quarter 2018, this segment also included natural gas gathering,
processing, and treating operations in New Mexico and in Ignacio,
Colorado, that were part of the company's FCA business, which was sold
on Oct. 1, 2018.
The West segment reported Modified EBITDA of ($906) million for
fourth-quarter 2018, compared with $286 million for fourth-quarter 2017.
Adjusted EBITDA decreased by $123 million to $358 million. The
unfavorable change in Modified EBITDA was driven primarily by a $1.849
billion impairment of certain gathering assets in the Barnett Shale,
partially offset by a $591 million gain on the sale of the FCA business
and the absence of $220 million of non-cash regulatory charges at
Northwest Pipeline in fourth-quarter 2017 associated with the Tax Reform
Act. Modified EBITDA was also unfavorably impacted by the timing of
recognizing MVCs, which were recognized earlier throughout 2018 with the
adoption of a new accounting standard. These items are not included in
Adjusted EBITDA. The unfavorable change in both measures reflects a
decrease in service revenues due primarily to the absence of the former
FCA business, the deconsolidation of the company's interests in the
Jackalope system, and lower volumes. Commodity margins also decreased
$43 million due in part to the sale of the company's former FCA business
and by lower NGL sale prices and volumes. Partially offsetting these
decreases was a $14 million increase in proportional EBITDA from joint
ventures due primarily to contributions from Jackalope and higher RMM
and Overland Pass Pipeline volumes. The change in service revenues was
unfavorably impacted by $35 million reflecting the adoption of new
revenue-recognition standards in 2018.
For the year, the West segment reported Modified EBITDA of $308 million,
a decrease of $104 million from full-year 2017 results. Adjusted EBITDA
decreased by $91 million to $1.577 billion. The unfavorable change in
Modified EBITDA was driven primarily by a $1.849 billion impairment of
certain gathering assets in the Barnett Shale, partially offset by the
absence of a $1.019 billion impairment of certain gathering assets in
the Mid-Continent region and the absence of $220 million of non-cash
regulatory charges at Northwest Pipeline, both in 2017, as well as the
$591 million gain on the sale of the FCA business. These items are not
included in Adjusted EBITDA. The unfavorable change in both measures was
driven by a decrease in service revenues due primarily to the absence of
results from the company's former FCA business, lower Northwest Pipeline
rates and the deconsolidation of the company's interests in the
Jackalope system. The change in service revenues was unfavorably
impacted by $100 million reflecting the adoption of new
revenue-recognition standards in 2018. Results also reflect $24 million
of regulatory charges associated with Northwest Pipeline's approved
rates related to the Tax Reform Act. Partially offsetting these
decreases were $34 million increased commodity margins and lower
operating and administrative costs.
Northeast G&P
This segment includes natural gas gathering and processing, compression
and NGL fractionation businesses in the Marcellus Shale region primarily
in Pennsylvania, New York, and West Virginia and Utica Shale region of
eastern Ohio, as well as a 66 percent interest in Cardinal (a
consolidated entity), a 62 percent equity-method investment in UEOM, a
69 percent equity-method investment in Laurel Mountain, a 58 percent
equity-method investment in Caiman II, and Appalachia Midstream
Services, LLC, which owns an approximate average 66 percent
equity-method investment in multiple gas gathering systems in the
Marcellus Shale. Williams' natural gas gathering position is the largest
in the entire Northeast region.
The Northeast G&P segment reported Modified EBITDA of $300 million for
fourth-quarter 2018, compared with $231 million for fourth-quarter 2017.
Adjusted EBITDA increased by $66 million to $304 million. The
improvement in both measures was driven primarily by $45 million
increased service revenues due to higher volumes at the Susquehanna,
Ohio River and Utica systems and a $21 million increase in proportional
EBITDA of joint ventures due primarily to higher volumes in Marcellus
South and Blue Racer.
For the year, the Northeast G&P segment reported Modified EBITDA of
$1.086 billion, an increase of $267 million over full-year 2017 results.
Adjusted EBITDA increased by $131 million to $1.090 billion. Modified
EBITDA results reflect the absence of a $121 million impairment of
certain operations in 2017, which does not impact Adjusted EBITDA. Both
measures benefited from $104 million increased service revenues due to
higher volumes at the Susquehanna, Ohio River and Utica systems and a
$40 million increase in proportional EBITDA of joint ventures due
primarily to increased ownership in the Bradford gas gathering system
and increased volumes in Marcellus South. Partially offsetting the
improvements was an increase in operating and administrative costs.
Other Segment
Following Williams' completed acquisition of Williams Partners on Aug.
10, 2018, this segment now also includes the historical results of our
former petchem services business.
The Other segment reported fourth-quarter 2018 Modified EBITDA of $20
million, an increase of $123 million from fourth-quarter 2017. Adjusted
EBITDA decreased by $2 million to $6 million. The improvement in
Modified EBITDA reflects the absence of certain 2017 charges associated
with the Tax Reform Act, lower pension settlement charges, and a 2018
gain on the sale of certain gulf coast pipeline systems, all of which
are excluded from Adjusted EBITDA.
For the year, Williams' Other segment reported Modified EBITDA of ($29)
million, a decrease of $1.026 billion over the same 12-month reporting
period in 2017. Adjusted EBITDA decreased by $85 million to $40 million.
In addition to the items previously described, the unfavorable change in
Modified EBITDA was driven primarily by the absence of a $1.095 billion
gain on the sale of the company's former Geismar olefins plant in 2017,
and costs related to the WPZ Merger, partially offset by lower net asset
impairments. All of these impacts are excluded from Adjusted EBITDA.
Both measures reflect the absence of results from the former Geismar
olefins plant.
Today's Joint Announcement from Williams and Targa Resources
Earlier today, Williams and Targa Resources Corp. (NYSE: TRGP) (“Targa”)
announced new natural gas liquids (“NGL”) agreements and NGL pipeline
projects that will link the Conway, Kansas, and Mont Belvieu, Texas, NGL
markets. Williams will build a 188-mile NGL pipeline, called the
“Bluestem Pipeline,” from its fractionator in Conway, Kansas, and the
southern terminus of Overland Pass Pipeline to an interconnect with
Targa’s Grand Prix NGL Pipeline (“Grand Prix”) in Kingfisher County,
Oklahoma. Targa will construct a 110-mile extension of Grand Prix from
southern Oklahoma into the Sooner Trend (oil field), Anadarko (basin),
Canadian and Kingfisher (counties) (“STACK”) region of Central Oklahoma
where it will connect with Williams’ new Bluestem Pipeline. To learn
more about this announcement, please see today's joint news release from
Williams and Targa.
Recent Accomplishments
Williams' Transco Pipeline recently delivered a record amount of natural
gas on its Transco interstate gas pipeline. The nation's largest-volume
natural gas transmission system, Transco delivered a record-breaking
15.68 million dekatherms (MMdt) on Jan. 21, 2019. The new peak-day mark
surpasses the previous high that was set on Jan. 5, 2018. The Transco
system, which stretches from South Texas to New York City, also
established a new three-day market area delivery record, averaging 15.30
MMdt from Jan. 30 to Feb. 1, 2019. The natural gas delivery records were
made possible thanks to additional firm transportation capacity created
by multiple fully-contracted Transco expansions completed in 2018 and
early 2019 (Gulf Connector, Atlantic Sunrise, and Garden State Phase
II). Together, these expansions added more than 2.3 MMdt of firm
transportation capacity to the existing pipeline system.
2019 Guidance
Current guidance for 2019, originally announced at Analyst Day on May
17, 2018, remains unchanged with the exception of Growth Capital
Expenditures. Growth capital expenditure guidance has increased from
prior guidance of $2.6 billion to a range of $2.7 billion to $2.9
billion primarily due to timing shifts from 2018 to 2019.
Williams' Fourth-Quarter and Full-Year 2018 Materials to be Posted
Shortly; Q&A Webcast Scheduled for Tomorrow
Williams' fourth-quarter and full-year 2018 financial results package
will be posted shortly at www.williams.com.
The materials will include the analyst package. The Company’s
fourth-quarter and full-year 2018 earnings conference call and webcast
with analysts and investors is scheduled for Thursday, Feb. 14, 2019, at
9:30 a.m. Eastern Time (8:30 a.m. Central Time). A limited number of
phone lines will be available at (800) 239-9838. International callers
should dial (323) 794-2551. The conference ID is 3043497. A webcast link
to the conference call is available at www.williams.com.
A replay of the webcast will be available on the website for at least 90
days following the event.
Form 10-K
The company plans to file its 2018 Form 10-K with the Securities and
Exchange Commission (SEC) next week. Once filed, the document will be
available on both the SEC and Williams websites.
Non-GAAP Measures
This news release and accompanying materials may include certain
financial measures – Adjusted EBITDA, adjusted income (“earnings”),
adjusted earnings per share, distributable cash flow 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. Management
believes this measure provides investors meaningful insight into results
from ongoing operations.
Distributable cash flow is defined as Adjusted EBITDA less maintenance
capital expenditures, cash portion of net interest expense, income
attributable to noncontrolling interests and cash income taxes, and
certain other adjustments that management believes affects the
comparability of results. Adjustments for maintenance capital
expenditures and cash portion of interest expense include our
proportionate share of these items of our equity-method investments. We
also calculate the ratio of distributable cash flow to the total cash
dividends paid (dividend coverage ratio). This measure reflects
Williams’ distributable cash flow relative to its actual cash dividends
paid.
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 distributable cash flow
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 U.S. natural gas and natural gas products to growing demand
for cleaner fuel and feedstocks. Headquartered in Tulsa, Okla., Williams
is an industry-leading, investment grade C-Corp with operations across
the natural gas value chain including gathering, processing, interstate
transportation and storage of natural gas and natural gas liquids. With
major positions in top U.S. supply basins, Williams owns and operates
more than 33,000 miles of pipelines system wide - including Transco, the
nation’s largest volume and fastest growing pipeline - providing natural
gas for clean-power generation, heating and industrial use. Williams’
operations handle 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) 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
herein 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 may
include, among others, statements regarding:
-
Financial performance, including anticipated leverage and guidance
for 2019;
-
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 and natural gas liquids 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 herein. 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:
-
Whether we are able to pay current and expected levels of dividends;
-
Whether we will be able to effectively execute our financing plan;
-
Availability of supplies, market demand, and volatility of prices;
-
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);
-
The strength and financial resources of our competitors and the
effects of competition;
-
Whether we are able to successfully identify, evaluate and timely
execute our capital projects and other investment opportunities;
-
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;
-
Development and rate of adoption of alternative energy sources;
-
The impact of operational and developmental hazards and unforeseen
interruptions;
-
The impact of existing and future laws and regulations (including
but not limited to the Tax Cuts and Jobs Act of 2017), the regulatory
environment, environmental liabilities, and litigation, as well as our
ability to obtain necessary permits and approvals, and achieve
favorable rate proceeding outcomes;
-
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;
-
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 and physical damage to our facilities;
-
Acts of terrorism, cybersecurity incidents, and related disruptions;
-
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 herein. 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 filed with the SEC on February 22, 2018 and in Part II,
Item 1A. Risk Factors in our Quarterly Reports on Form 10-Q.
|
Reconciliation of Income (Loss) Attributable to The Williams
Companies, Inc. to Adjusted Income
|
(UNAUDITED)
|
|
|
|
|
2017
|
|
|
2018
|
(Dollars in millions, except per-share amounts)
|
|
|
|
1st Qtr
|
|
|
2nd Qtr
|
|
|
3rd Qtr
|
|
|
4th Qtr
|
|
|
Year
|
|
|
1st Qtr
|
|
|
2nd Qtr
|
|
|
3rd Qtr
|
|
|
4th Qtr
|
|
|
Year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) attributable to The Williams Companies, Inc.
available to common stockholders
|
|
|
|
$
|
373
|
|
|
|
$
|
81
|
|
|
|
$
|
33
|
|
|
|
$
|
1,687
|
|
|
|
$
|
2,174
|
|
|
|
$
|
152
|
|
|
|
$
|
135
|
|
|
|
$
|
129
|
|
|
|
$
|
(572
|
)
|
|
|
$
|
(156
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) - diluted earnings (loss) per common share
|
|
|
|
$
|
.45
|
|
|
|
$
|
.10
|
|
|
|
$
|
.04
|
|
|
|
$
|
2.03
|
|
|
|
$
|
2.62
|
|
|
|
$
|
.18
|
|
|
|
$
|
.16
|
|
|
|
$
|
.13
|
|
|
|
$
|
(.47
|
)
|
|
|
$
|
(.16
|
)
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Northeast G&P
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of impairment at equity-method investments
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
$
|
1
|
|
|
|
$
|
—
|
|
|
|
$
|
1
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
Impairment of certain assets
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
121
|
|
|
|
|
—
|
|
|
|
|
121
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Ad valorem obligation timing adjustment
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
7
|
|
|
|
|
—
|
|
|
|
|
7
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Settlement charge from pension early payout program
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
7
|
|
|
|
|
7
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
4
|
|
|
|
|
4
|
|
Organizational realignment-related costs
|
|
|
|
|
1
|
|
|
|
|
1
|
|
|
|
|
2
|
|
|
|
|
—
|
|
|
|
|
4
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Total Northeast G&P adjustments
|
|
|
|
|
1
|
|
|
|
|
1
|
|
|
|
|
131
|
|
|
|
|
7
|
|
|
|
|
140
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
4
|
|
|
|
|
4
|
|
Atlantic-Gulf
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constitution Pipeline project development costs
|
|
|
|
|
2
|
|
|
|
|
6
|
|
|
|
|
4
|
|
|
|
|
4
|
|
|
|
|
16
|
|
|
|
|
2
|
|
|
|
|
1
|
|
|
|
|
1
|
|
|
|
|
—
|
|
|
|
|
4
|
|
Settlement charge from pension early payout program
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
15
|
|
|
|
|
15
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
7
|
|
|
|
|
7
|
|
Regulatory adjustments resulting from Tax Reform
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
493
|
|
|
|
|
493
|
|
|
|
|
11
|
|
|
|
|
(20
|
)
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(9
|
)
|
Benefit of regulatory asset associated with increase in Transco’s
estimated deferred state income tax rate following WPZ Merger
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(3
|
)
|
|
|
|
—
|
|
|
|
|
(3
|
)
|
Share of regulatory charges resulting from Tax Reform for
equity-method investments
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
11
|
|
|
|
|
11
|
|
|
|
|
2
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
2
|
|
Organizational realignment-related costs
|
|
|
|
|
1
|
|
|
|
|
2
|
|
|
|
|
2
|
|
|
|
|
1
|
|
|
|
|
6
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Gain on sale of certain Gulf Coast pipeline assets
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(81
|
)
|
|
|
|
(81
|
)
|
(Gain) loss on asset retirement
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(5
|
)
|
|
|
|
5
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(10
|
)
|
|
|
|
(2
|
)
|
|
|
|
(12
|
)
|
Total Atlantic-Gulf adjustments
|
|
|
|
|
3
|
|
|
|
|
8
|
|
|
|
|
1
|
|
|
|
|
529
|
|
|
|
|
541
|
|
|
|
|
15
|
|
|
|
|
(19
|
)
|
|
|
|
(12
|
)
|
|
|
|
(76
|
)
|
|
|
|
(92
|
)
|
West
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Estimated minimum volume commitments
|
|
|
|
|
15
|
|
|
|
|
15
|
|
|
|
|
18
|
|
|
|
|
(48
|
)
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Impairment of certain assets
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
1,021
|
|
|
|
|
9
|
|
|
|
|
1,030
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
1,849
|
|
|
|
|
1,849
|
|
Settlement charge from pension early payout program
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
13
|
|
|
|
|
13
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
6
|
|
|
|
|
6
|
|
Organizational realignment-related costs
|
|
|
|
|
2
|
|
|
|
|
3
|
|
|
|
|
2
|
|
|
|
|
1
|
|
|
|
|
8
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Regulatory adjustments resulting from Tax Reform
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
220
|
|
|
|
|
220
|
|
|
|
|
(7
|
)
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(7
|
)
|
Charge for regulatory liability associated with the decrease in
Northwest Pipeline’s estimated deferred state income tax rates
following WPZ Merger
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
12
|
|
|
|
|
—
|
|
|
|
|
12
|
|
Gain on sale of Four Corners assets
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(591
|
)
|
|
|
|
(591
|
)
|
Gains from contract settlements and terminations
|
|
|
|
|
(13
|
)
|
|
|
|
(2
|
)
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(15
|
)
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Total West adjustments
|
|
|
|
|
4
|
|
|
|
|
16
|
|
|
|
|
1,041
|
|
|
|
|
195
|
|
|
|
|
1,256
|
|
|
|
|
(7
|
)
|
|
|
|
—
|
|
|
|
|
12
|
|
|
|
|
1,264
|
|
|
|
|
1,269
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Gain) loss related to Canada disposition
|
|
|
|
|
(2
|
)
|
|
|
|
(1
|
)
|
|
|
|
4
|
|
|
|
|
5
|
|
|
|
|
6
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Expenses associated with strategic asset monetizations
|
|
|
|
|
1
|
|
|
|
|
4
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
5
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Geismar Incident adjustments
|
|
|
|
|
(9
|
)
|
|
|
|
2
|
|
|
|
|
8
|
|
|
|
|
(1
|
)
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Gain on sale of Geismar Interest
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(1,095
|
)
|
|
|
|
—
|
|
|
|
|
(1,095
|
)
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Gain on sale of RGP Splitter
|
|
|
|
|
—
|
|
|
|
|
(12
|
)
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(12
|
)
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Accrual for loss contingency
|
|
|
|
|
9
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
9
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Severance and related costs
|
|
|
|
|
9
|
|
|
|
|
4
|
|
|
|
|
5
|
|
|
|
|
4
|
|
|
|
|
22
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
ACMP Merger and transition costs
|
|
|
|
|
—
|
|
|
|
|
4
|
|
|
|
|
3
|
|
|
|
|
4
|
|
|
|
|
11
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Expenses associated with Financial Repositioning
|
|
|
|
|
8
|
|
|
|
|
2
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
10
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
(Gain) loss on early retirement of debt
|
|
|
|
|
(30
|
)
|
|
|
|
—
|
|
|
|
|
3
|
|
|
|
|
—
|
|
|
|
|
(27
|
)
|
|
|
|
7
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
7
|
|
Impairment of certain assets
|
|
|
|
|
—
|
|
|
|
|
23
|
|
|
|
|
68
|
|
|
|
|
—
|
|
|
|
|
91
|
|
|
|
|
—
|
|
|
|
|
66
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
66
|
|
Expenses associated with strategic alternatives
|
|
|
|
|
1
|
|
|
|
|
3
|
|
|
|
|
5
|
|
|
|
|
—
|
|
|
|
|
9
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Settlement charge from pension early payout program
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
36
|
|
|
|
|
36
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
5
|
|
|
|
|
5
|
|
Regulatory adjustments resulting from Tax Reform
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
63
|
|
|
|
|
63
|
|
|
|
|
—
|
|
|
|
|
1
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
1
|
|
Benefit of regulatory assets associated with increase in Transco’s
estimated deferred state income tax rate following WPZ Merger
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(45
|
)
|
|
|
|
—
|
|
|
|
|
(45
|
)
|
WPZ Merger costs
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
4
|
|
|
|
|
15
|
|
|
|
|
1
|
|
|
|
|
20
|
|
Gain on sale of certain Gulf Coast pipeline systems
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(20
|
)
|
|
|
|
(20
|
)
|
Charitable contribution of preferred stock to Williams Foundation
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
35
|
|
|
|
|
—
|
|
|
|
|
35
|
|
Total Other adjustments
|
|
|
|
|
(13
|
)
|
|
|
|
29
|
|
|
|
|
(999
|
)
|
|
|
|
111
|
|
|
|
|
(872
|
)
|
|
|
|
7
|
|
|
|
|
71
|
|
|
|
|
5
|
|
|
|
|
(14
|
)
|
|
|
|
69
|
|
Adjustments included in Modified EBITDA
|
|
|
|
|
(5
|
)
|
|
|
|
54
|
|
|
|
|
174
|
|
|
|
|
842
|
|
|
|
|
1,065
|
|
|
|
|
15
|
|
|
|
|
52
|
|
|
|
|
5
|
|
|
|
|
1,178
|
|
|
|
|
1,250
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments below Modified EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on disposition of equity-method investment
|
|
|
|
|
(269
|
)
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(269
|
)
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Accelerated depreciation by equity-method investments
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
9
|
|
|
|
|
9
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Change in depreciable life associated with organizational
realignment
|
|
|
|
|
(7
|
)
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(7
|
)
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Gain on deconsolidation of Jackalope interest
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(62
|
)
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(62
|
)
|
Impairment of equity-method investments
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
32
|
|
|
|
|
32
|
|
Gain on deconsolidation of certain Permian assets
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(141
|
)
|
|
|
|
(141
|
)
|
Allocation of adjustments to noncontrolling interests
|
|
|
|
|
77
|
|
|
|
|
(10
|
)
|
|
|
|
(28
|
)
|
|
|
|
(199
|
)
|
|
|
|
(160
|
)
|
|
|
|
(5
|
)
|
|
|
|
21
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
16
|
|
|
|
|
|
|
(199
|
)
|
|
|
|
(10
|
)
|
|
|
|
(28
|
)
|
|
|
|
(190
|
)
|
|
|
|
(427
|
)
|
|
|
|
(5
|
)
|
|
|
|
(41
|
)
|
|
|
|
—
|
|
|
|
|
(109
|
)
|
|
|
|
(155
|
)
|
Total adjustments
|
|
|
|
|
(204
|
)
|
|
|
|
44
|
|
|
|
|
146
|
|
|
|
|
652
|
|
|
|
|
638
|
|
|
|
|
10
|
|
|
|
|
11
|
|
|
|
|
5
|
|
|
|
|
1,069
|
|
|
|
|
1,095
|
|
Less tax effect for above items
|
|
|
|
|
77
|
|
|
|
|
(17
|
)
|
|
|
|
(55
|
)
|
|
|
|
(246
|
)
|
|
|
|
(241
|
)
|
|
|
|
(3
|
)
|
|
|
|
(3
|
)
|
|
|
|
(1
|
)
|
|
|
|
(267
|
)
|
|
|
|
(274
|
)
|
Adjustments for tax-related items (1)
|
|
|
|
|
(127
|
)
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(1,923
|
)
|
|
|
|
(2,050
|
)
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
110
|
|
|
|
|
—
|
|
|
|
|
110
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income available to common stockholders
|
|
|
|
$
|
119
|
|
|
|
$
|
108
|
|
|
|
$
|
124
|
|
|
|
$
|
170
|
|
|
|
$
|
521
|
|
|
|
$
|
159
|
|
|
|
$
|
143
|
|
|
|
$
|
243
|
|
|
|
$
|
230
|
|
|
|
$
|
775
|
|
Adjusted diluted earnings per common share (2)
|
|
|
|
$
|
.14
|
|
|
|
$
|
.13
|
|
|
|
$
|
.15
|
|
|
|
$
|
.20
|
|
|
|
$
|
.63
|
|
|
|
$
|
.19
|
|
|
|
$
|
.17
|
|
|
|
$
|
.24
|
|
|
|
$
|
.19
|
|
|
|
$
|
.79
|
|
Weighted-average shares - diluted (thousands)
|
|
|
|
|
826,476
|
|
|
|
|
828,575
|
|
|
|
|
829,368
|
|
|
|
|
829,607
|
|
|
|
|
828,518
|
|
|
|
|
830,197
|
|
|
|
|
830,107
|
|
|
|
|
1,026,504
|
|
|
|
|
1,212,822
|
|
|
|
|
976,097
|
|
(1) The first quarter of 2017 includes an unfavorable adjustment
related to the release of a valuation allowance. The fourth quarter
of 2017 includes an unfavorable adjustment to reverse the tax
benefit associated with remeasuring our deferred tax balances at a
lower corporate rate resulting from Tax Reform. The third quarter of
2018 reflects tax adjustments driven by the WPZ Merger, primarily a
valuation allowance for foreign tax credits.
|
(2) 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 Distributable Cash Flow (DCF)
|
(UNAUDITED)
|
|
|
|
|
2017
|
|
|
2018
|
(Dollars in millions, except coverage ratios)
|
|
|
|
1st Qtr
|
|
|
2nd Qtr
|
|
|
3rd Qtr
|
|
|
4th Qtr
|
|
|
Year
|
|
|
1st Qtr
|
|
|
2nd Qtr
|
|
|
3rd Qtr
|
|
|
4th Qtr
|
|
|
Year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Williams Companies, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP "Net Income (Loss)" to Non-GAAP "Modified
EBITDA", "Adjusted EBITDA" and "Distributable cash flow"
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
$
|
569
|
|
|
|
$
|
193
|
|
|
|
$
|
125
|
|
|
|
$
|
1,622
|
|
|
|
$
|
2,509
|
|
|
|
$
|
270
|
|
|
|
$
|
269
|
|
|
|
$
|
200
|
|
|
|
$
|
(546
|
)
|
|
|
$
|
193
|
|
Provision (benefit) for income taxes
|
|
|
|
|
37
|
|
|
|
|
65
|
|
|
|
|
24
|
|
|
|
|
(2,100
|
)
|
|
|
|
(1,974
|
)
|
|
|
|
55
|
|
|
|
|
52
|
|
|
|
|
190
|
|
|
|
|
(159
|
)
|
|
|
|
138
|
|
Interest expense
|
|
|
|
|
280
|
|
|
|
|
271
|
|
|
|
|
267
|
|
|
|
|
265
|
|
|
|
|
1,083
|
|
|
|
|
273
|
|
|
|
|
275
|
|
|
|
|
270
|
|
|
|
|
294
|
|
|
|
|
1,112
|
|
Equity (earnings) losses
|
|
|
|
|
(107
|
)
|
|
|
|
(125
|
)
|
|
|
|
(115
|
)
|
|
|
|
(87
|
)
|
|
|
|
(434
|
)
|
|
|
|
(82
|
)
|
|
|
|
(92
|
)
|
|
|
|
(105
|
)
|
|
|
|
(117
|
)
|
|
|
|
(396
|
)
|
Impairment of equity-method investments
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
32
|
|
|
|
|
32
|
|
Other investing (income) loss - net
|
|
|
|
|
(272
|
)
|
|
|
|
(2
|
)
|
|
|
|
(4
|
)
|
|
|
|
(4
|
)
|
|
|
|
(282
|
)
|
|
|
|
(4
|
)
|
|
|
|
(68
|
)
|
|
|
|
(2
|
)
|
|
|
|
(145
|
)
|
|
|
|
(219
|
)
|
Proportional Modified EBITDA of equity-method investments
|
|
|
|
|
194
|
|
|
|
|
215
|
|
|
|
|
202
|
|
|
|
|
184
|
|
|
|
|
795
|
|
|
|
|
169
|
|
|
|
|
178
|
|
|
|
|
205
|
|
|
|
|
218
|
|
|
|
|
770
|
|
Depreciation and amortization expenses
|
|
|
|
|
442
|
|
|
|
|
433
|
|
|
|
|
433
|
|
|
|
|
428
|
|
|
|
|
1,736
|
|
|
|
|
431
|
|
|
|
|
434
|
|
|
|
|
425
|
|
|
|
|
435
|
|
|
|
|
1,725
|
|
Accretion for asset retirement obligations associated with
nonregulated operations
|
|
|
|
|
7
|
|
|
|
|
9
|
|
|
|
|
7
|
|
|
|
|
10
|
|
|
|
|
33
|
|
|
|
|
8
|
|
|
|
|
10
|
|
|
|
|
8
|
|
|
|
|
7
|
|
|
|
|
33
|
|
Modified EBITDA
|
|
|
|
|
1,150
|
|
|
|
|
1,059
|
|
|
|
|
939
|
|
|
|
|
318
|
|
|
|
|
3,466
|
|
|
|
|
1,120
|
|
|
|
|
1,058
|
|
|
|
|
1,191
|
|
|
|
|
19
|
|
|
|
|
3,388
|
|
EBITDA adjustments
|
|
|
|
|
(5
|
)
|
|
|
|
54
|
|
|
|
|
174
|
|
|
|
|
842
|
|
|
|
|
1,065
|
|
|
|
|
15
|
|
|
|
|
52
|
|
|
|
|
5
|
|
|
|
|
1,178
|
|
|
|
|
1,250
|
|
Adjusted EBITDA
|
|
|
|
|
1,145
|
|
|
|
|
1,113
|
|
|
|
|
1,113
|
|
|
|
|
1,160
|
|
|
|
|
4,531
|
|
|
|
|
1,135
|
|
|
|
|
1,110
|
|
|
|
|
1,196
|
|
|
|
|
1,197
|
|
|
|
|
4,638
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maintenance capital expenditures (1)
|
|
|
|
|
(58
|
)
|
|
|
|
(105
|
)
|
|
|
|
(143
|
)
|
|
|
|
(165
|
)
|
|
|
|
(471
|
)
|
|
|
|
(110
|
)
|
|
|
|
(160
|
)
|
|
|
|
(138
|
)
|
|
|
|
(122
|
)
|
|
|
|
(530
|
)
|
Preferred dividends
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(1
|
)
|
|
|
|
(1
|
)
|
Net interest expense - cash portion (2) (5)
|
|
|
|
|
(289
|
)
|
|
|
|
(280
|
)
|
|
|
|
(271
|
)
|
|
|
|
(271
|
)
|
|
|
|
(1,111
|
)
|
|
|
|
(276
|
)
|
|
|
|
(279
|
)
|
|
|
|
(274
|
)
|
|
|
|
(299
|
)
|
|
|
|
(1,128
|
)
|
Cash taxes
|
|
|
|
|
(5
|
)
|
|
|
|
(1
|
)
|
|
|
|
(11
|
)
|
|
|
|
(11
|
)
|
|
|
|
(28
|
)
|
|
|
|
(1
|
)
|
|
|
|
(10
|
)
|
|
|
|
(1
|
)
|
|
|
|
1
|
|
|
|
|
(11
|
)
|
Income attributable to noncontrolling interests (3)
|
|
|
|
|
(27
|
)
|
|
|
|
(32
|
)
|
|
|
|
(27
|
)
|
|
|
|
(27
|
)
|
|
|
|
(113
|
)
|
|
|
|
(25
|
)
|
|
|
|
(24
|
)
|
|
|
|
(19
|
)
|
|
|
|
(28
|
)
|
|
|
|
(96
|
)
|
WPZ restricted stock unit non-cash compensation
|
|
|
|
|
2
|
|
|
|
|
1
|
|
|
|
|
1
|
|
|
|
|
1
|
|
|
|
|
5
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Amortization of deferred revenue associated with certain 2016
contract restructurings (4)
|
|
|
|
|
(58
|
)
|
|
|
|
(58
|
)
|
|
|
|
(59
|
)
|
|
|
|
(58
|
)
|
|
|
|
(233
|
)
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Distributable cash flow (5)
|
|
|
|
$
|
710
|
|
|
|
$
|
638
|
|
|
|
$
|
603
|
|
|
|
$
|
629
|
|
|
|
$
|
2,580
|
|
|
|
$
|
723
|
|
|
|
$
|
637
|
|
|
|
$
|
764
|
|
|
|
$
|
748
|
|
|
|
$
|
2,872
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cash distributed (6)
|
|
|
|
$
|
400
|
|
|
|
$
|
400
|
|
|
|
$
|
400
|
|
|
|
$
|
401
|
|
|
|
$
|
1,601
|
|
|
|
$
|
438
|
|
|
|
$
|
443
|
|
|
|
$
|
412
|
|
|
|
$
|
411
|
|
|
|
$
|
1,704
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coverage ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributable cash flow divided by Total cash distributed (5)
|
|
|
|
|
1.78
|
|
|
|
|
1.60
|
|
|
|
|
1.51
|
|
|
|
|
1.57
|
|
|
|
|
1.61
|
|
|
|
|
1.65
|
|
|
|
|
1.44
|
|
|
|
|
1.85
|
|
|
|
|
1.82
|
|
|
|
|
1.69
|
|
Net income (loss) divided by Total cash distributed
|
|
|
|
|
1.42
|
|
|
|
|
0.48
|
|
|
|
|
0.31
|
|
|
|
|
4.04
|
|
|
|
|
1.57
|
|
|
|
|
0.62
|
|
|
|
|
0.61
|
|
|
|
|
0.49
|
|
|
|
|
(1.33
|
)
|
|
|
|
0.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes proportionate share of maintenance capital expenditures
of equity investments.
|
(2) Includes proportionate share of interest expense of equity
investments.
|
(3) Excludes allocable share of certain EBITDA adjustments.
|
(4) Beginning first quarter 2018, as a result of the extended
deferred revenue amortization period under the new GAAP revenue
standard, we have discontinued the adjustment associated with these
2016 contract restructuring payments. For each quarter of 2018, the
adjustments would have been $32 million, $31 million, $32 million,
and $33 million, respectively.
|
(5) The first, second, and third quarters of 2018 have been
corrected to increase amounts reported as Net interest expense -
cash portion by $3 million, $4 million, and $4 million, respectively.
|
(6) Includes cash dividends paid each quarter by WMB, as well as the
public unitholders share of distributions declared by WPZ for the
2017 periods and the first two quarters of 2018.
|
|
|
Reconciliation of "Net Income (Loss)" to “Modified EBITDA” and
Non-GAAP “Adjusted EBITDA”
|
(UNAUDITED)
|
|
|
|
|
2017
|
|
|
2018
|
(Dollars in millions)
|
|
|
|
1st Qtr
|
|
|
2nd Qtr
|
|
|
3rd Qtr
|
|
|
4th Qtr
|
|
|
Year
|
|
|
1st Qtr
|
|
|
2nd Qtr
|
|
|
3rd Qtr
|
|
|
4th Qtr
|
|
|
Year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
$
|
569
|
|
|
|
$
|
193
|
|
|
|
$
|
125
|
|
|
|
$
|
1,622
|
|
|
|
$
|
2,509
|
|
|
|
$
|
270
|
|
|
|
$
|
269
|
|
|
|
$
|
200
|
|
|
|
$
|
(546
|
)
|
|
|
$
|
193
|
|
Provision (benefit) for income taxes
|
|
|
|
|
37
|
|
|
|
|
65
|
|
|
|
|
24
|
|
|
|
|
(2,100
|
)
|
|
|
|
(1,974
|
)
|
|
|
|
55
|
|
|
|
|
52
|
|
|
|
|
190
|
|
|
|
|
(159
|
)
|
|
|
|
138
|
|
Interest expense
|
|
|
|
|
280
|
|
|
|
|
271
|
|
|
|
|
267
|
|
|
|
|
265
|
|
|
|
|
1,083
|
|
|
|
|
273
|
|
|
|
|
275
|
|
|
|
|
270
|
|
|
|
|
294
|
|
|
|
|
1,112
|
|
Equity (earnings) losses
|
|
|
|
|
(107
|
)
|
|
|
|
(125
|
)
|
|
|
|
(115
|
)
|
|
|
|
(87
|
)
|
|
|
|
(434
|
)
|
|
|
|
(82
|
)
|
|
|
|
(92
|
)
|
|
|
|
(105
|
)
|
|
|
|
(117
|
)
|
|
|
|
(396
|
)
|
Impairment of equity-method investments
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
32
|
|
|
|
|
32
|
|
Other investing (income) loss - net
|
|
|
|
|
(272
|
)
|
|
|
|
(2
|
)
|
|
|
|
(4
|
)
|
|
|
|
(4
|
)
|
|
|
|
(282
|
)
|
|
|
|
(4
|
)
|
|
|
|
(68
|
)
|
|
|
|
(2
|
)
|
|
|
|
(145
|
)
|
|
|
|
(219
|
)
|
Proportional Modified EBITDA of equity-method investments
|
|
|
|
|
194
|
|
|
|
|
215
|
|
|
|
|
202
|
|
|
|
|
184
|
|
|
|
|
795
|
|
|
|
|
169
|
|
|
|
|
178
|
|
|
|
|
205
|
|
|
|
|
218
|
|
|
|
|
770
|
|
Depreciation and amortization expenses
|
|
|
|
|
442
|
|
|
|
|
433
|
|
|
|
|
433
|
|
|
|
|
428
|
|
|
|
|
1,736
|
|
|
|
|
431
|
|
|
|
|
434
|
|
|
|
|
425
|
|
|
|
|
435
|
|
|
|
|
1,725
|
|
Accretion expense associated with asset retirement obligations for
nonregulated operations
|
|
|
|
|
7
|
|
|
|
|
9
|
|
|
|
|
7
|
|
|
|
|
10
|
|
|
|
|
33
|
|
|
|
|
8
|
|
|
|
|
10
|
|
|
|
|
8
|
|
|
|
|
7
|
|
|
|
|
33
|
|
Modified EBITDA
|
|
|
|
$
|
1,150
|
|
|
|
$
|
1,059
|
|
|
|
$
|
939
|
|
|
|
$
|
318
|
|
|
|
$
|
3,466
|
|
|
|
$
|
1,120
|
|
|
|
$
|
1,058
|
|
|
|
$
|
1,191
|
|
|
|
$
|
19
|
|
|
|
$
|
3,388
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Northeast G&P
|
|
|
|
$
|
226
|
|
|
|
$
|
247
|
|
|
|
$
|
115
|
|
|
|
$
|
231
|
|
|
|
$
|
819
|
|
|
|
$
|
250
|
|
|
|
$
|
255
|
|
|
|
$
|
281
|
|
|
|
$
|
300
|
|
|
|
$
|
1,086
|
|
Atlantic-Gulf
|
|
|
|
|
450
|
|
|
|
|
454
|
|
|
|
|
430
|
|
|
|
|
(96
|
)
|
|
|
|
1,238
|
|
|
|
|
451
|
|
|
|
|
475
|
|
|
|
|
492
|
|
|
|
|
605
|
|
|
|
|
2,023
|
|
West
|
|
|
|
|
385
|
|
|
|
|
356
|
|
|
|
|
(615
|
)
|
|
|
|
286
|
|
|
|
|
412
|
|
|
|
|
413
|
|
|
|
|
389
|
|
|
|
|
412
|
|
|
|
|
(906
|
)
|
|
|
|
308
|
|
Other
|
|
|
|
|
89
|
|
|
|
|
2
|
|
|
|
|
1,009
|
|
|
|
|
(103
|
)
|
|
|
|
997
|
|
|
|
|
6
|
|
|
|
|
(61
|
)
|
|
|
|
6
|
|
|
|
|
20
|
|
|
|
|
(29
|
)
|
Total Modified EBITDA
|
|
|
|
$
|
1,150
|
|
|
|
$
|
1,059
|
|
|
|
$
|
939
|
|
|
|
$
|
318
|
|
|
|
$
|
3,466
|
|
|
|
$
|
1,120
|
|
|
|
$
|
1,058
|
|
|
|
$
|
1,191
|
|
|
|
$
|
19
|
|
|
|
$
|
3,388
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments included in Modified EBITDA (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Northeast G&P
|
|
|
|
$
|
1
|
|
|
|
$
|
1
|
|
|
|
$
|
131
|
|
|
|
$
|
7
|
|
|
|
$
|
140
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
$
|
4
|
|
|
|
$
|
4
|
|
Atlantic-Gulf
|
|
|
|
|
3
|
|
|
|
|
8
|
|
|
|
|
1
|
|
|
|
|
529
|
|
|
|
|
541
|
|
|
|
|
15
|
|
|
|
|
(19
|
)
|
|
|
|
(12
|
)
|
|
|
|
(76
|
)
|
|
|
|
(92
|
)
|
West
|
|
|
|
|
4
|
|
|
|
|
16
|
|
|
|
|
1,041
|
|
|
|
|
195
|
|
|
|
|
1,256
|
|
|
|
|
(7
|
)
|
|
|
|
—
|
|
|
|
|
12
|
|
|
|
|
1,264
|
|
|
|
|
1,269
|
|
Other
|
|
|
|
|
(13
|
)
|
|
|
|
29
|
|
|
|
|
(999
|
)
|
|
|
|
111
|
|
|
|
|
(872
|
)
|
|
|
|
7
|
|
|
|
|
71
|
|
|
|
|
5
|
|
|
|
|
(14
|
)
|
|
|
|
69
|
|
Total Adjustments included in Modified EBITDA
|
|
|
|
$
|
(5
|
)
|
|
|
$
|
54
|
|
|
|
$
|
174
|
|
|
|
$
|
842
|
|
|
|
$
|
1,065
|
|
|
|
$
|
15
|
|
|
|
$
|
52
|
|
|
|
$
|
5
|
|
|
|
$
|
1,178
|
|
|
|
$
|
1,250
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Northeast G&P
|
|
|
|
$
|
227
|
|
|
|
$
|
248
|
|
|
|
$
|
246
|
|
|
|
$
|
238
|
|
|
|
$
|
959
|
|
|
|
$
|
250
|
|
|
|
$
|
255
|
|
|
|
$
|
281
|
|
|
|
$
|
304
|
|
|
|
$
|
1,090
|
|
Atlantic-Gulf
|
|
|
|
|
453
|
|
|
|
|
462
|
|
|
|
|
431
|
|
|
|
|
433
|
|
|
|
|
1,779
|
|
|
|
|
466
|
|
|
|
|
456
|
|
|
|
|
480
|
|
|
|
|
529
|
|
|
|
|
1,931
|
|
West
|
|
|
|
|
389
|
|
|
|
|
372
|
|
|
|
|
426
|
|
|
|
|
481
|
|
|
|
|
1,668
|
|
|
|
|
406
|
|
|
|
|
389
|
|
|
|
|
424
|
|
|
|
|
358
|
|
|
|
|
1,577
|
|
Other
|
|
|
|
|
76
|
|
|
|
|
31
|
|
|
|
|
10
|
|
|
|
|
8
|
|
|
|
|
125
|
|
|
|
|
13
|
|
|
|
|
10
|
|
|
|
|
11
|
|
|
|
|
6
|
|
|
|
|
40
|
|
Total Adjusted EBITDA
|
|
|
|
$
|
1,145
|
|
|
|
$
|
1,113
|
|
|
|
$
|
1,113
|
|
|
|
$
|
1,160
|
|
|
|
$
|
4,531
|
|
|
|
$
|
1,135
|
|
|
|
$
|
1,110
|
|
|
|
$
|
1,196
|
|
|
|
$
|
1,197
|
|
|
|
$
|
4,638
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Adjustments by segment are detailed in the "Reconciliation of
Income (Loss) Attributable to The Williams Companies, Inc. to
Adjusted Income," which is also included in these materials.
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20190213005728/en/
Copyright Business Wire 2019