Attached files
file | filename |
---|---|
EX-99.1 - EX-99.1 - WILLIAMS COMPANIES, INC. | wmb_20180630xer.htm |
8-K - 8-K - WILLIAMS COMPANIES, INC. | wmb_20180630x8kxer.htm |
EXHIBIT 99.2
Non-GAAP Reconciliations, | ||
Financial Highlights, and Operating Statistics | ||
(UNAUDITED) | ||
Final | ||
June 30, 2018 | ||
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 | Year | ||||||||||||||||||
Income (loss) attributable to The Williams Companies, Inc. available to common stockholders | $ | 373 | $ | 81 | $ | 33 | $ | 1,687 | $ | 2,174 | $ | 152 | $ | 135 | $ | 287 | ||||||||||
Income (loss) - diluted earnings (loss) per common share | $ | .45 | $ | .10 | $ | .04 | $ | 2.03 | $ | 2.62 | $ | .18 | $ | .16 | $ | .35 | ||||||||||
Adjustments: | ||||||||||||||||||||||||||
Williams Partners | ||||||||||||||||||||||||||
Estimated minimum volume commitments | $ | 15 | $ | 15 | $ | 18 | $ | (48 | ) | $ | — | $ | — | $ | — | $ | — | |||||||||
Impairment of certain assets | — | — | 1,142 | 9 | 1,151 | — | — | — | ||||||||||||||||||
Ad valorem obligation timing adjustment | — | — | 7 | — | 7 | — | — | — | ||||||||||||||||||
Organizational realignment-related costs | 4 | 6 | 6 | 2 | 18 | — | — | — | ||||||||||||||||||
(Gain) loss related to Canada disposition | (3 | ) | (1 | ) | 4 | 4 | 4 | — | — | — | ||||||||||||||||
Severance and related costs | 9 | 4 | 5 | 4 | 22 | — | — | — | ||||||||||||||||||
Constitution Pipeline project development costs | 2 | 6 | 4 | 4 | 16 | 2 | 1 | 3 | ||||||||||||||||||
ACMP Merger and transition costs | — | 4 | 3 | 4 | 11 | — | — | — | ||||||||||||||||||
Share of impairment at equity-method investments | — | — | 1 | — | 1 | — | — | — | ||||||||||||||||||
(Gain) loss on asset retirement | — | — | (5 | ) | 5 | — | — | — | — | |||||||||||||||||
Geismar Incident adjustments | (9 | ) | 2 | 8 | (1 | ) | — | — | — | — | ||||||||||||||||
Gain on sale of Geismar Interest | — | — | (1,095 | ) | — | (1,095 | ) | — | — | — | ||||||||||||||||
Gains from contract settlements and terminations | (13 | ) | (2 | ) | — | — | (15 | ) | — | — | — | |||||||||||||||
Accrual for loss contingency | 9 | — | — | — | 9 | — | — | — | ||||||||||||||||||
(Gain) loss on early retirement of debt | (30 | ) | — | 3 | — | (27 | ) | 7 | — | 7 | ||||||||||||||||
Gain on sale of RGP Splitter | — | (12 | ) | — | — | (12 | ) | — | — | — | ||||||||||||||||
Settlement charge from pension early payout program | — | — | — | 35 | 35 | — | — | — | ||||||||||||||||||
Regulatory adjustments resulting from Tax Reform | — | — | — | 713 | 713 | 4 | (20 | ) | (16 | ) | ||||||||||||||||
Share of regulatory charges resulting from Tax Reform for equity-method investments | — | — | — | 11 | 11 | 2 | — | 2 | ||||||||||||||||||
Expenses associated with Financial Repositioning | — | 2 | — | — | 2 | — | — | — | ||||||||||||||||||
Expenses associated with strategic asset monetizations | 1 | 4 | — | — | 5 | — | — | — | ||||||||||||||||||
WPZ Merger costs | — | — | — | — | — | — | 1 | 1 | ||||||||||||||||||
Total Williams Partners adjustments | (15 | ) | 28 | 101 | 742 | 856 | 15 | (18 | ) | (3 | ) | |||||||||||||||
Other | ||||||||||||||||||||||||||
Impairment of certain assets | — | 23 | 68 | — | 91 | — | 66 | 66 | ||||||||||||||||||
Loss related to Canada disposition | 1 | — | — | 1 | 2 | — | — | — | ||||||||||||||||||
Expenses associated with strategic alternatives | 1 | 3 | 5 | — | 9 | — | — | — | ||||||||||||||||||
Settlement charge from pension early payout program | — | — | — | 36 | 36 | — | — | — | ||||||||||||||||||
Regulatory adjustments resulting from Tax Reform | — | — | — | 63 | 63 | — | 1 | 1 | ||||||||||||||||||
Expenses associated with Financial Repositioning | 8 | — | — | — | 8 | — | — | — | ||||||||||||||||||
WPZ Merger costs | — | — | — | — | — | — | 3 | 3 | ||||||||||||||||||
Total Other adjustments | 10 | 26 | 73 | 100 | 209 | — | 70 | 70 | ||||||||||||||||||
Adjustments included in Modified EBITDA | (5 | ) | 54 | 174 | 842 | 1,065 | 15 | 52 | 67 | |||||||||||||||||
Adjustments below Modified EBITDA | ||||||||||||||||||||||||||
Gain on disposition of equity-method investment - Williams Partners | (269 | ) | — | — | — | (269 | ) | — | — | — | ||||||||||||||||
Accelerated depreciation by equity-method investments | — | — | — | 9 | 9 | — | — | — | ||||||||||||||||||
Change in depreciable life associated with organizational realignment - Williams Partners | (7 | ) | — | — | — | (7 | ) | — | — | — | ||||||||||||||||
Gain on deconsolidation of Jackalope interest | — | — | — | — | — | — | (62 | ) | (62 | ) | ||||||||||||||||
Allocation of adjustments to noncontrolling interests | 77 | (10 | ) | (28 | ) | (199 | ) | (160 | ) | (5 | ) | 21 | 16 | |||||||||||||
(199 | ) | (10 | ) | (28 | ) | (190 | ) | (427 | ) | (5 | ) | (41 | ) | (46 | ) | |||||||||||
Total adjustments | (204 | ) | 44 | 146 | 652 | 638 | 10 | 11 | 21 | |||||||||||||||||
Less tax effect for above items | 77 | (17 | ) | (55 | ) | (246 | ) | (241 | ) | (3 | ) | (3 | ) | (6 | ) | |||||||||||
Adjustments for tax-related items (1) | (127 | ) | — | — | (1,923 | ) | (2,050 | ) | — | — | — | |||||||||||||||
Adjusted income available to common stockholders | $ | 119 | $ | 108 | $ | 124 | $ | 170 | $ | 521 | $ | 159 | $ | 143 | $ | 302 | ||||||||||
Adjusted diluted earnings per common share (2) | $ | .14 | $ | .13 | $ | .15 | $ | .20 | $ | .63 | $ | .19 | $ | .17 | $ | .36 | ||||||||||
Weighted-average shares - diluted (thousands) | 826,476 | 828,575 | 829,368 | 829,607 | 828,518 | 830,197 | 830,107 | 830,151 | ||||||||||||||||||
(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. | ||||||||||||||||||||||||||
(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 "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 | Year | ||||||||||||||||||
Net income (loss) | $ | 569 | $ | 193 | $ | 125 | $ | 1,622 | $ | 2,509 | $ | 270 | $ | 269 | $ | 539 | ||||||||||
Provision (benefit) for income taxes | 37 | 65 | 24 | (2,100 | ) | (1,974 | ) | 55 | 52 | 107 | ||||||||||||||||
Interest expense | 280 | 271 | 267 | 265 | 1,083 | 273 | 275 | 548 | ||||||||||||||||||
Equity (earnings) losses | (107 | ) | (125 | ) | (115 | ) | (87 | ) | (434 | ) | (82 | ) | (92 | ) | (174 | ) | ||||||||||
Other investing (income) loss - net | (272 | ) | (2 | ) | (4 | ) | (4 | ) | (282 | ) | (4 | ) | (68 | ) | (72 | ) | ||||||||||
Proportional Modified EBITDA of equity-method investments | 194 | 215 | 202 | 184 | 795 | 169 | 178 | 347 | ||||||||||||||||||
Depreciation and amortization expenses | 442 | 433 | 433 | 428 | 1,736 | 431 | 434 | 865 | ||||||||||||||||||
Accretion expense associated with asset retirement obligations for nonregulated operations | 7 | 9 | 7 | 10 | 33 | 8 | 10 | 18 | ||||||||||||||||||
Modified EBITDA | $ | 1,150 | $ | 1,059 | $ | 939 | $ | 318 | $ | 3,466 | $ | 1,120 | $ | 1,058 | $ | 2,178 | ||||||||||
Williams Partners | $ | 1,132 | $ | 1,076 | $ | 1,000 | $ | 408 | $ | 3,616 | $ | 1,107 | $ | 1,115 | $ | 2,222 | ||||||||||
Other | 18 | (17 | ) | (61 | ) | (90 | ) | (150 | ) | 13 | (57 | ) | (44 | ) | ||||||||||||
Total Modified EBITDA | $ | 1,150 | $ | 1,059 | $ | 939 | $ | 318 | $ | 3,466 | $ | 1,120 | $ | 1,058 | $ | 2,178 | ||||||||||
Adjustments included in Modified EBITDA (1): | ||||||||||||||||||||||||||
Williams Partners | $ | (15 | ) | $ | 28 | $ | 101 | $ | 742 | $ | 856 | $ | 15 | $ | (18 | ) | $ | (3 | ) | |||||||
Other | 10 | 26 | 73 | 100 | 209 | — | 70 | 70 | ||||||||||||||||||
Total Adjustments included in Modified EBITDA | $ | (5 | ) | $ | 54 | $ | 174 | $ | 842 | $ | 1,065 | $ | 15 | $ | 52 | $ | 67 | |||||||||
Adjusted EBITDA: | ||||||||||||||||||||||||||
Williams Partners | $ | 1,117 | $ | 1,104 | $ | 1,101 | $ | 1,150 | $ | 4,472 | $ | 1,122 | $ | 1,097 | $ | 2,219 | ||||||||||
Other | 28 | 9 | 12 | 10 | 59 | 13 | 13 | 26 | ||||||||||||||||||
Total Adjusted EBITDA | $ | 1,145 | $ | 1,113 | $ | 1,113 | $ | 1,160 | $ | 4,531 | $ | 1,135 | $ | 1,110 | $ | 2,245 | ||||||||||
(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. |
Dividend Coverage Ratio | ||||||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||||||
2017 | 2018 | |||||||||||||||||||||||||
(Dollars in millions, except per share amounts) | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | 2nd Qtr | Year | ||||||||||||||||||
Distributions from WPZ (accrued / “as declared” basis) | $ | 421 | $ | 421 | $ | 421 | $ | 421 | $ | 1,684 | $ | 431 | $ | 442 | $ | 873 | ||||||||||
Other Segment Adjusted EBITDA | 28 | 9 | 12 | 10 | 59 | 13 | 13 | 26 | ||||||||||||||||||
Corporate interest | (66 | ) | (65 | ) | (66 | ) | (64 | ) | (261 | ) | (64 | ) | (64 | ) | (128 | ) | ||||||||||
Subtotal | 383 | 365 | 367 | 367 | 1,482 | 380 | 391 | 771 | ||||||||||||||||||
WMB cash tax rate | 0 | % | 0 | % | 2 | % | 2 | % | 1 | % | 0 | % | 2 | % | 1 | % | ||||||||||
WMB cash taxes (excludes cash taxes paid by WPZ) | — | — | (7 | ) | (9 | ) | (16 | ) | — | (9 | ) | (9 | ) | |||||||||||||
Other Segment Maintenance Capital | (3 | ) | (5 | ) | (5 | ) | (9 | ) | (22 | ) | (9 | ) | (7 | ) | (16 | ) | ||||||||||
WMB cash available for dividends and other uses (1) | $ | 380 | $ | 360 | $ | 355 | $ | 349 | $ | 1,444 | $ | 371 | $ | 375 | $ | 746 | ||||||||||
WMB dividends paid | (248 | ) | (248 | ) | (248 | ) | (248 | ) | (992 | ) | (281 | ) | (282 | ) | (563 | ) | ||||||||||
Excess cash available after dividends | $ | 132 | $ | 112 | $ | 107 | $ | 101 | $ | 452 | $ | 90 | $ | 93 | $ | 183 | ||||||||||
Dividend per share | $ | 0.3000 | $ | 0.3000 | $ | 0.3000 | $ | 0.3000 | $ | 1.2000 | $ | 0.3400 | $ | 0.3400 | $ | 0.6800 | ||||||||||
Coverage ratio (2) | 1.53 | 1.45 | 1.43 | 1.41 | 1.46 | 1.32 | 1.33 | 1.33 | ||||||||||||||||||
(1) Effective with the first quarter of 2018, Williams increased its regular dividend from $0.30 per share to $0.34 per share. | ||||||||||||||||||||||||||
(2) WMB cash available for dividends and other uses / WMB dividends paid. |
Consolidated Statement of Operations | ||||||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||||||
2017 | 2018 | |||||||||||||||||||||||||
(Dollars in millions, except per-share amounts) | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | 2nd Qtr | Year | ||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||
Service revenues | $ | 1,261 | $ | 1,282 | $ | 1,310 | $ | 1,459 | $ | 5,312 | $ | 1,351 | $ | 1,340 | $ | 2,691 | ||||||||||
Service revenues - commodity consideration | — | — | — | — | — | 101 | 94 | 195 | ||||||||||||||||||
Product sales | 727 | 642 | 581 | 769 | 2,719 | 636 | 657 | 1,293 | ||||||||||||||||||
Total revenues | 1,988 | 1,924 | 1,891 | 2,228 | 8,031 | 2,088 | 2,091 | 4,179 | ||||||||||||||||||
Costs and expenses: | ||||||||||||||||||||||||||
Product costs | 579 | 537 | 504 | 680 | 2,300 | 613 | 636 | 1,249 | ||||||||||||||||||
Processing commodity expenses | — | — | — | — | — | 35 | 26 | 61 | ||||||||||||||||||
Operating and maintenance expenses | 371 | 392 | 403 | 410 | 1,576 | 357 | 388 | 745 | ||||||||||||||||||
Depreciation and amortization expenses | 442 | 433 | 433 | 428 | 1,736 | 431 | 434 | 865 | ||||||||||||||||||
Selling, general, and administrative expenses | 161 | 153 | 138 | 142 | 594 | 132 | 130 | 262 | ||||||||||||||||||
Impairment of certain assets | 1 | 25 | 1,210 | 12 | 1,248 | — | 66 | 66 | ||||||||||||||||||
Gain on sale of Geismar Interest | — | — | (1,095 | ) | — | (1,095 | ) | — | — | — | ||||||||||||||||
Regulatory charges resulting from Tax Reform | — | — | — | 674 | 674 | — | — | — | ||||||||||||||||||
Other (income) expense - net | 4 | 6 | 24 | 37 | 71 | 29 | 1 | 30 | ||||||||||||||||||
Total costs and expenses | 1,558 | 1,546 | 1,617 | 2,383 | 7,104 | 1,597 | 1,681 | 3,278 | ||||||||||||||||||
Operating income (loss) | 430 | 378 | 274 | (155 | ) | 927 | 491 | 410 | 901 | |||||||||||||||||
Equity earnings (losses) | 107 | 125 | 115 | 87 | 434 | 82 | 92 | 174 | ||||||||||||||||||
Other investing income (loss) - net | 272 | 2 | 4 | 4 | 282 | 4 | 68 | 72 | ||||||||||||||||||
Interest incurred | (287 | ) | (280 | ) | (275 | ) | (274 | ) | (1,116 | ) | (282 | ) | (288 | ) | (570 | ) | ||||||||||
Interest capitalized | 7 | 9 | 8 | 9 | 33 | 9 | 13 | 22 | ||||||||||||||||||
Other income (expense) - net | 77 | 24 | 23 | (149 | ) | (25 | ) | 21 | 26 | 47 | ||||||||||||||||
Income (loss) before income taxes | 606 | 258 | 149 | (478 | ) | 535 | 325 | 321 | 646 | |||||||||||||||||
Provision (benefit) for income taxes | 37 | 65 | 24 | (2,100 | ) | (1,974 | ) | 55 | 52 | 107 | ||||||||||||||||
Net income (loss) | 569 | 193 | 125 | 1,622 | 2,509 | 270 | 269 | 539 | ||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | 196 | 112 | 92 | (65 | ) | 335 | 118 | 134 | 252 | |||||||||||||||||
Net income (loss) attributable to The Williams Companies, Inc. | $ | 373 | $ | 81 | $ | 33 | $ | 1,687 | $ | 2,174 | $ | 152 | $ | 135 | $ | 287 | ||||||||||
Diluted earnings (loss) per common share: | ||||||||||||||||||||||||||
Net income (loss) (1) | $ | .45 | $ | .10 | $ | .04 | $ | 2.03 | $ | 2.62 | $ | .18 | $ | .16 | $ | .35 | ||||||||||
Weighted-average number of shares (thousands) | 826,476 | 828,575 | 829,368 | 829,607 | 828,518 | 830,197 | 830,107 | 830,151 | ||||||||||||||||||
Common shares outstanding at end of period (thousands) | 826,239 | 826,398 | 826,723 | 826,836 | 826,836 | 827,607 | 827,733 | 827,733 | ||||||||||||||||||
Market price per common share (end of period) | $ | 29.59 | $ | 30.28 | $ | 30.01 | $ | 30.49 | $ | 30.49 | $ | 24.86 | $ | 27.11 | $ | 27.11 | ||||||||||
Cash dividends declared per share | $ | .30 | $ | .30 | $ | .30 | $ | .30 | $ | 1.20 | $ | .34 | $ | .34 | $ | .68 | ||||||||||
(1) The sum of earnings (loss) per share for the quarters may not equal the total earnings (loss) per share for the year due to changes in the weighted-average number of common shares outstanding. | ||||||||||||||||||||||||||
Williams Partners | ||||||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||||||
2017 | 2018 | |||||||||||||||||||||||||
(Dollars in millions) | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | 2nd Qtr | Year | ||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||
Service revenues | $ | 1,256 | $ | 1,277 | $ | 1,304 | $ | 1,455 | $ | 5,292 | $ | 1,346 | $ | 1,335 | $ | 2,681 | ||||||||||
Service revenues - commodity consideration | — | — | — | — | — | 101 | 94 | 195 | ||||||||||||||||||
Product sales | 727 | 642 | 581 | 768 | 2,718 | 636 | 657 | 1,293 | ||||||||||||||||||
Total revenues | 1,983 | 1,919 | 1,885 | 2,223 | 8,010 | 2,083 | 2,086 | 4,169 | ||||||||||||||||||
Segment costs and expenses: | ||||||||||||||||||||||||||
Product costs | 579 | 537 | 504 | 680 | 2,300 | 613 | 636 | 1,249 | ||||||||||||||||||
Processing commodity expenses | — | — | — | — | — | 35 | 26 | 61 | ||||||||||||||||||
Operating and maintenance expenses | 353 | 376 | 387 | 414 | 1,530 | 343 | 376 | 719 | ||||||||||||||||||
Selling, general, and administrative expenses | 156 | 154 | 140 | 160 | 610 | 138 | 134 | 272 | ||||||||||||||||||
Impairment of certain assets | 1 | 2 | 1,142 | 11 | 1,156 | — | — | — | ||||||||||||||||||
Gain on sale of Geismar Interest | — | — | (1,095 | ) | — | (1,095 | ) | — | — | — | ||||||||||||||||
Regulatory charges resulting from Tax Reform | — | — | — | 713 | 713 | 4 | (20 | ) | (16 | ) | ||||||||||||||||
Other segment costs and expenses | (44 | ) | (11 | ) | 9 | 21 | (25 | ) | 12 | (3 | ) | 9 | ||||||||||||||
Total segment costs and expenses | 1,045 | 1,058 | 1,087 | 1,999 | 5,189 | 1,145 | 1,149 | 2,294 | ||||||||||||||||||
Proportional Modified EBITDA of equity-method investments | 194 | 215 | 202 | 184 | 795 | 169 | 178 | 347 | ||||||||||||||||||
Modified EBITDA | 1,132 | 1,076 | 1,000 | 408 | 3,616 | 1,107 | 1,115 | 2,222 | ||||||||||||||||||
Adjustments | (15 | ) | 28 | 101 | 742 | 856 | $ | 15 | (18 | ) | (3 | ) | ||||||||||||||
Adjusted EBITDA | $ | 1,117 | $ | 1,104 | $ | 1,101 | $ | 1,150 | $ | 4,472 | $ | 1,122 | $ | 1,097 | $ | 2,219 | ||||||||||
Statistics for Operated Assets | ||||||||||||||||||||||||||
Interstate Transmission | ||||||||||||||||||||||||||
Throughput (Tbtu) | 1,158.1 | 1,053.0 | 1,094.9 | 1,226.6 | 4,532.6 | 1,326.0 | 1,153.6 | 2,479.6 | ||||||||||||||||||
Avg. daily transportation volumes (Tbtu) | 12.8 | 11.6 | 11.9 | 13.4 | 12.5 | 14.7 | 12.7 | 13.7 | ||||||||||||||||||
Avg. daily firm reserved capacity (Tbtu) | 15.8 | 16.2 | 17.1 | 17.9 | 16.8 | 18.4 | 18.0 | 18.2 | ||||||||||||||||||
Gathering and Processing | ||||||||||||||||||||||||||
Gathering volumes (Bcf per day) - Consolidated (1) | 7.86 | 7.98 | 8.20 | 8.54 | 8.15 | 8.26 | 8.29 | 8.28 | ||||||||||||||||||
Gathering volumes (Bcf per day) - Non-consolidated (2) | 4.10 | 4.12 | 3.87 | 3.89 | 3.99 | 4.06 | 3.84 | 3.95 | ||||||||||||||||||
Plant inlet natural gas volumes (Bcf per day) - Consolidated (1) | 2.92 | 2.98 | 3.08 | 3.22 | 3.05 | 3.18 | 3.10 | 3.14 | ||||||||||||||||||
Plant inlet natural gas volumes (Bcf per day) - Non-consolidated (2) | 0.54 | 0.53 | 0.39 | 0.27 | 0.43 | 0.24 | 0.25 | 0.25 | ||||||||||||||||||
Consolidated (1) | ||||||||||||||||||||||||||
Ethane margin ($/gallon) | $ | .03 | $ | .01 | $ | .03 | $ | .03 | $ | .03 | $ | .01 | $ | .06 | $ | .03 | ||||||||||
Non-ethane margin ($/gallon) | $ | .45 | $ | .41 | $ | .45 | $ | .63 | $ | .48 | $ | .68 | $ | .70 | $ | .69 | ||||||||||
NGL margin ($/gallon) | $ | .33 | $ | .25 | $ | .29 | $ | .41 | $ | .32 | $ | .35 | $ | .44 | $ | .39 | ||||||||||
Ethane equity sales (Mbbls/d) | 11 | 17 | 17 | 15 | 15 | 23 | 15 | 19 | ||||||||||||||||||
Non-ethane equity sales (Mbbls/d) | 29 | 26 | 25 | 25 | 26 | 25 | 23 | 24 | ||||||||||||||||||
NGL equity sales (Mbbls/d) | 40 | 43 | 42 | 40 | 41 | 48 | 38 | 43 | ||||||||||||||||||
Ethane production (Mbbls/d) | 40 | 53 | 49 | 62 | 51 | 65 | 65 | 65 | ||||||||||||||||||
Non-ethane production (Mbbls/d) | 90 | 93 | 99 | 104 | 97 | 102 | 99 | 101 | ||||||||||||||||||
NGL production (Mbbls/d) | 130 | 146 | 148 | 166 | 148 | 167 | 164 | 166 | ||||||||||||||||||
Non-consolidated (2) | ||||||||||||||||||||||||||
NGL equity sales (Mbbls/d) | 5 | 4 | 5 | 4 | 5 | 3 | 5 | 4 | ||||||||||||||||||
NGL production (Mbbls/d) | 21 | 22 | 22 | 19 | 21 | 18 | 20 | 19 | ||||||||||||||||||
Overland Pipeline Company (2) | ||||||||||||||||||||||||||
NGL transportation volumes (Mbbls) | 18,338 | 20,558 | 21,015 | 21,425 | 81,336 | 21,263 | 21,333 | 42,596 | ||||||||||||||||||
(1) Excludes volumes associated with equity-method investments that are not consolidated for financial reporting purposes. | ||||||||||||||||||||||||||
(2) Includes 100% of the volumes associated with operated equity-method investments. | ||||||||||||||||||||||||||
Capital Expenditures and Investments | ||||||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||||||
2017 | 2018 | |||||||||||||||||||||||||
(Dollars in millions) | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | 2nd Qtr | Year | ||||||||||||||||||
Capital expenditures: | ||||||||||||||||||||||||||
Williams Partners | $ | 509 | $ | 540 | $ | 638 | $ | 687 | $ | 2,374 | $ | 948 | $ | 925 | $ | 1,873 | ||||||||||
Other | 2 | 5 | 6 | 12 | 25 | 9 | 8 | 17 | ||||||||||||||||||
Total (1) | $ | 511 | $ | 545 | $ | 644 | $ | 699 | $ | 2,399 | $ | 957 | $ | 933 | $ | 1,890 | ||||||||||
Purchases of investments: | ||||||||||||||||||||||||||
Williams Partners | $ | 52 | $ | 27 | $ | 24 | $ | 29 | $ | 132 | $ | 21 | $ | 70 | $ | 91 | ||||||||||
Other | — | — | — | — | — | — | — | — | ||||||||||||||||||
Total | $ | 52 | $ | 27 | $ | 24 | $ | 29 | $ | 132 | $ | 21 | $ | 70 | $ | 91 | ||||||||||
Summary: | ||||||||||||||||||||||||||
Williams Partners | $ | 561 | $ | 567 | $ | 662 | $ | 716 | $ | 2,506 | $ | 969 | $ | 995 | $ | 1,964 | ||||||||||
Other | 2 | 5 | 6 | 12 | 25 | 9 | 8 | 17 | ||||||||||||||||||
Total | $ | 563 | $ | 572 | $ | 668 | $ | 728 | $ | 2,531 | $ | 978 | $ | 1,003 | $ | 1,981 | ||||||||||
Capital expenditures incurred and purchases of investments: | ||||||||||||||||||||||||||
Increases to property, plant, and equipment | $ | 569 | $ | 591 | $ | 666 | $ | 836 | $ | 2,662 | $ | 934 | $ | 930 | $ | 1,864 | ||||||||||
Purchases of investments | 52 | 27 | 24 | 29 | 132 | 21 | 70 | 91 | ||||||||||||||||||
Total | $ | 621 | $ | 618 | $ | 690 | $ | 865 | $ | 2,794 | $ | 955 | $ | 1,000 | $ | 1,955 | ||||||||||
(1) Increases to property, plant, and equipment | $ | 569 | $ | 591 | $ | 666 | $ | 836 | $ | 2,662 | $ | 934 | $ | 930 | $ | 1,864 | ||||||||||
Changes in related accounts payable and accrued liabilities | (58 | ) | (46 | ) | (22 | ) | (137 | ) | (263 | ) | 23 | 3 | 26 | |||||||||||||
Capital expenditures | $ | 511 | $ | 545 | $ | 644 | $ | 699 | $ | 2,399 | $ | 957 | $ | 933 | $ | 1,890 | ||||||||||
Depreciation and Amortization and Other Selected Financial Data | ||||||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||||||
2017 | 2018 | |||||||||||||||||||||||||
(Dollars in millions) | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | 2nd Qtr | Year | ||||||||||||||||||
Depreciation and amortization: | ||||||||||||||||||||||||||
Williams Partners | $ | 433 | $ | 423 | $ | 424 | $ | 420 | $ | 1,700 | $ | 423 | $ | 426 | $ | 849 | ||||||||||
Other | 9 | 10 | 9 | 8 | 36 | 8 | 8 | 16 | ||||||||||||||||||
Total | $ | 442 | $ | 433 | $ | 433 | $ | 428 | $ | 1,736 | $ | 431 | $ | 434 | $ | 865 | ||||||||||
Other selected financial data: | ||||||||||||||||||||||||||
Cash and cash equivalents | $ | 639 | $ | 1,918 | $ | 1,172 | $ | 899 | $ | 1,292 | $ | 275 | ||||||||||||||
Total assets | $ | 47,512 | $ | 48,770 | $ | 46,120 | $ | 46,352 | $ | 47,052 | $ | 46,374 | ||||||||||||||
Capital structure: | ||||||||||||||||||||||||||
Debt | ||||||||||||||||||||||||||
Current | $ | — | $ | 1,951 | $ | 502 | $ | 501 | $ | 501 | $ | 2 | ||||||||||||||
Noncurrent | $ | 21,825 | $ | 21,325 | $ | 20,567 | $ | 20,434 | $ | 21,379 | $ | 21,313 | ||||||||||||||
Stockholders’ equity | $ | 8,444 | $ | 8,306 | $ | 8,109 | $ | 9,656 | $ | 9,473 | $ | 9,345 | ||||||||||||||
Debt to debt-plus-stockholders’ equity ratio | 72.1 | % | 73.7 | % | 72.2 | % | 68.4 | % | 69.8 | % | 69.5 | % | ||||||||||||||
Cash distributions received from limited partner interest in Williams Partners L.P. | $ | 597 | $ | 421 | $ | 422 | $ | 421 | $ | 1,861 | $ | 421 | $ | 431 | $ | 852 | ||||||||||
Reconciliation of "Net Income (Loss)" to "Modified EBITDA", Non-GAAP "Adjusted EBITDA" and "Distributable Cash Flow" | ||||||||||||||||||||||||
2018 Guidance | 2019 Guidance | |||||||||||||||||||||||
(Dollars in billions, except coverage ratios) | Low | Mid | High | Low | Mid | High | ||||||||||||||||||
Net income (loss) | $ | 0.975 | $ | 1.075 | $ | 1.175 | $ | 1.050 | $ | 1.200 | $ | 1.350 | ||||||||||||
Provision (benefit) for income taxes | 0.260 | 0.400 | ||||||||||||||||||||||
Interest expense | 1.100 | 1.225 | ||||||||||||||||||||||
Equity (earnings) losses | (0.375 | ) | (0.450 | ) | ||||||||||||||||||||
Proportional Modified EBITDA of equity-method investments | 0.725 | 0.825 | ||||||||||||||||||||||
Depreciation and amortization expenses and accretion expense associated with asset retirement obligations for nonregulated operations | 1.750 | 1.800 | ||||||||||||||||||||||
Modified EBITDA | $ | 4.435 | $ | 4.535 | $ | 4.635 | $ | 4.850 | $ | 5.000 | $ | 5.150 | ||||||||||||
Adjustments included in Modified EBITDA: | ||||||||||||||||||||||||
Constitution Pipeline project development costs | 0.002 | — | ||||||||||||||||||||||
(Gain) loss on early retirement of debt | 0.007 | — | ||||||||||||||||||||||
Regulatory charges resulting from Tax Reform | 0.004 | — | ||||||||||||||||||||||
Share of regulatory charges resulting from Tax Reform for equity-method investments | 0.002 | — | ||||||||||||||||||||||
Total Adjustments included in Modified EBITDA | 0.015 | — | ||||||||||||||||||||||
Adjusted EBITDA | $ | 4.450 | $ | 4.550 | $ | 4.650 | $ | 4.850 | $ | 5.000 | $ | 5.150 | ||||||||||||
Interest expense - net (1) | (1.150 | ) | (1.235 | ) | ||||||||||||||||||||
Maintenance capital expenditures (2) | (0.575 | ) | (0.525 | ) | (0.475 | ) | (0.675 | ) | (0.625 | ) | (0.575 | ) | ||||||||||||
Cash taxes - (Payment) Benefit | — | 0.075 | ||||||||||||||||||||||
Income attributable to noncontrolling interests (NCI) and other | (0.125 | ) | (0.115 | ) | ||||||||||||||||||||
Distributable cash flow (DCF) | $ | 2.600 | $ | 2.750 | $ | 2.900 | $ | 2.900 | $ | 3.100 | $ | 3.300 | ||||||||||||
Dividends & Distributions paid (3) | (1.705 | ) | (1.850 | ) | ||||||||||||||||||||
Excess cash available after dividends & distributions | $ | 0.895 | $ | 1.045 | $ | 1.195 | $ | 1.050 | $ | 1.250 | $ | 1.450 | ||||||||||||
Dividend per share | $ | 1.36 | $ | 1.52 | ||||||||||||||||||||
Coverage ratio (4) | 1.52x | 1.61x | 1.70x | 1.57x | 1.68x | 1.78x | ||||||||||||||||||
(1) Includes proportionate share of interest expense of equity investments. | ||||||||||||||||||||||||
(2) Includes proportionate share of maintenance capital expenditures of equity investments. | ||||||||||||||||||||||||
(3) Includes WPZ distributions to public unitholders for 1Q and 2Q of 2018. | ||||||||||||||||||||||||
(4) Distributable cash flow / Dividends & distributions paid. |
Reconciliation of Income (Loss) Attributable to The Williams Companies, Inc. to Adjusted Income | ||||
2019 | ||||
Guidance | ||||
(Dollars in billions, except per-share amounts) | Midpoint | |||
Net income (loss) | $ | 1.200 | ||
Less: Net income (loss) attributable to noncontrolling interests | 0.115 | |||
Net income (loss) attributable to The Williams Companies, Inc. | $ | 1.085 | ||
Adjustments: | ||||
Adjustments included in Modified EBITDA | — | |||
Adjustments below Modified EBITDA | — | |||
Total adjustments | — | |||
Less tax effect for above items | — | |||
Adjustments for tax related items | — | |||
Adjusted income available to common stockholders | $ | 1.085 | ||
Adjusted diluted earnings per common share | $ | 0.89 | ||
Weighted-average shares - diluted (billions) | 1.217 | |||