- 2Q 2017 Net Income of $81 Million
- 2Q 2017 Adjusted EBITDA of $1.113
Billion, Up $48 Million
- Williams Partners Has Placed 3 Transco
Expansions (Dalton Expansion, Hillabee Phase 1 and Gulf Trace) Into
Service So Far in 2017
- On July 6, 2017, Williams Partners
Completed Sale of Its Interests in Geismar Plant for $2.1 Billion
in Cash; Entered into Long-Term Supply and Transportation
Agreements with Plant Buyer
- Geismar Sale Proceeds Used by Williams
Partners to Pay Off $850 Million Term Loan and Prefund a Portion of
Growth Capex
Williams (NYSE: WMB) today announced its financial results for
the three and six months ended June 30, 2017.
Williams Summary Financial Information
2Q YTD Amounts in millions,
except per-share amounts. Per share amounts are reported on a
diluted basis. All amounts are attributable to The Williams
Companies, Inc. 2017 2016 2017 2016
GAAP Measures Cash Flow from
Operations $662 $686 $1,268 $1,469 Net income (loss) $81 ($405)
$454 ($470) Net income (loss) per share $0.10 ($0.54) $0.55 ($0.63)
Non-GAAP Measures (1) Adjusted income from continuing
operations $108 $146 $227 $172 Adjusted income from continuing
operations per share $0.13 $0.19 $0.27 $0.23 Adjusted EBITDA $1,113
$1,065 $2,258 $2,121 Cash Flow available for Dividends and other
uses $360 $433 $740 $862 Dividend Coverage Ratio 1.45x 0.90x 1.49x
0.90x
(1) Schedules reconciling adjusted income
from continuing operations, adjusted EBITDA, Cash Available for
Dividends and Dividend Coverage Ratio (non-GAAP measures) are
available at www.williams.com and as an attachment to this news
release.
Second-Quarter 2017 Financial Results
Williams reported unaudited second-quarter 2017 net income
attributable to Williams of $81 million, an improvement of $486
million over second-quarter 2016. The favorable change was driven
by an $869 million improvement in operating income primarily
reflecting a $777 million decrease in impairments of certain assets
and increased fee-based revenue from expansion projects. The
decrease in impairments includes the absence of $747 million of
impairments recognized in 2016 related to our former Canadian
operations. These favorable changes are partially offset by
unfavorable changes in income tax provision and income attributable
to non-controlling interests, both driven by higher income.
Year-to-date, Williams reported unaudited net income
attributable to Williams of $454 million, an improvement of $924
million over the same period in 2016. The favorable change was
driven by a $1.04 billion improvement in operating income primarily
reflecting a $784 million decrease in impairments of certain assets
and increased fee-based revenue from expansion projects. The
decrease in impairments includes the absence of the impairment
charges referenced above. The improvement in net income also
reflects a gain of $269 million associated with the disposition of
certain equity-method investments in 2017 and the absence of $112
million of impairments of certain equity-method investments in
2016. These favorable changes are partially offset by unfavorable
changes in income tax provision and income attributable to
non-controlling interests, both driven by higher income. The
unfavorable change in income tax provision includes a $127 million
benefit associated with the expected utilization of a capital loss
carryover.
Williams reported second-quarter 2017 Adjusted EBITDA of $1.113
billion, a $48 million increase over second-quarter 2016. The
improvement is due primarily to $18 million increased fee-based
revenues at Williams Partners and a $24 million increase in
proportional EBITDA of joint ventures in the Williams Partners
segment. Partially offsetting these increases were $22 million
lower olefins margins in the Williams Partners segment.
Year-to-date, Williams reported Adjusted EBITDA of $2.258
billion, an increase of $137 million over the same six-month
reporting period in 2016. The favorable change is primarily driven
by the Williams Partners segment, which reflects $36 million lower
operating and maintenance (O&M) and selling, general and
administrative (SG&A) expenses, a $28 million improvement in
other income and expense, and a $29 million increase in
proportional EBITDA of joint ventures.
CEO Perspective
Alan Armstrong, president and chief executive officer, made the
following comments:
“The second quarter demonstrated once again the long-term,
sustainable benefits of our focused strategy as we recognized
year-over-year growth in Adjusted EBITDA for the 15th consecutive
quarter. We met or exceeded business performance expectations in
Williams Partners’ remaining businesses, offset by
weaker-than-expected performance at Geismar, which was impacted by
a continuing outage and lower margins. Strong performance in the
Atlantic-Gulf, coupled with expected growth for the balance of the
year, gives us confidence in achieving our prior guidance on
Adjusted EBITDA and DCF.
“We continue to deliver on project execution as planned for
2017. So far this year, we have successfully brought into service
three Transco expansion projects including the 1.2 Bcf/d Gulf Trace
project, the 0.8 Bcf/d Hillabee Phase 1 project, and just this
week, the 0.4 Bcf/d Dalton Expansion project. The line of sight to
future growth is evident as well as we are targeting second-half
2017 in-service dates for three more fully-contracted growth
projects including Virginia Southside II, New York Bay, and Garden
State Phase 1.
“In addition to year-over-year fee-based revenue growth in the
Atlantic-Gulf, we also saw gathered volumes in the West up
approximately 4 percent versus first-quarter 2017, adjusted for the
Marcellus-for-Permian transaction. While pipeline takeaway
constraints continue to impact volumes in the Northeast, we remain
well-positioned for volume growth as those constraints are lifted.
We’re also pleased our Susquehanna and Ohio River Systems delivered
year-over-year fee-based revenue growth. As we look ahead, around
97 percent of our gross margins will come from predictable
fee-based sources now that we have successfully completed the sale
of Geismar – reducing our commodity exposure and further
strengthening our natural gas-focused strategy.
“We continue to see benefits from the reorganization of our
operating areas and operational support functions such as safety
and procurement. Continuous improvement in safety performance and
project execution is another commitment that we are delivering on
at the mid-point of 2017 and will continue to focus on as we move
through the second half of the year.”
Business Segment Results
Williams’ business segments for financial reporting are Williams
Partners and Other. In September 2016, Williams announced
organizational changes aiming to simplify our structure, increase
direct operational alignment to advance our natural gas-focused
strategy, and drive continued focus on customer service and
execution. Effective, Jan. 1, 2017, Williams implemented these
changes which combined the management of certain of our operations
and reduced the overall number of operating areas managed within
our business. As a result of this realignment and the sale of our
Canadian operations, the Williams NGL & Petchem Services
reporting segment has been eliminated and the remaining assets are
reported with Other.
Williams Modified and Adjusted EBITDA
2Q 2017 2Q 2016
YTD 2017 YTD 2016 Amounts
in millions
Modified EBITDA Adjust.
Adjusted EBITDA Modified EBITDA Adjust.
Adjusted EBITDA Modified EBITDA
Adjust. Adjusted EBITDA Modified EBITDA
Adjust. Adjusted EBITDA
Williams Partners $1,076
$28 $1,104 $604 $461 $1,065 $2,208 $13 $2,221 $1,559 $566 $2,125
Other (17) 26 9 (430) 430 - 1 36
37 (467) 463 (4) Total
$1,059
$54 $1,113 $174
$891 $1,065 $2,209
$49 $2,258 $1,092
$1,029 $2,121 Definitions of
modified EBITDA and adjusted EBITDA and schedules reconciling to
net income are included in this news release.
Williams Partners Segment
Comprised of our consolidated master limited partnership, WPZ,
the Williams Partners segment includes gas pipeline and midstream
businesses. The gas pipeline business includes interstate natural
gas pipelines and pipeline joint project investments. The midstream
business provides natural gas gathering, treating, processing and
compression services; NGL production, fractionation, storage,
marketing and transportation; deepwater production handling and
crude oil transportation services; a former olefin production
business, and is comprised of several wholly owned and partially
owned subsidiaries and joint project investments.
The Williams Partners segment reported second-quarter 2017
Modified EBITDA of $1.076 billion, an increase of $472 million from
second-quarter 2016. Adjusted EBITDA increased $39 million to
$1.104 billion. The favorable change in Modified EBITDA was driven
primarily by the absence of a second-quarter 2016, $341 million
impairment charge associated with Williams Partners’ now former
Canadian business that was sold in September 2016. The improvement
in Adjusted EBITDA is due primarily to $18 million increased
fee-based revenues and a $24 million increase in proportional
EBITDA of joint ventures. Partially offsetting these increases were
$22 million lower olefins margins.
Year-to-date, the Williams Partners segment reported Modified
EBITDA of $2.208 billion, an improvement of $649 million over the
same six-month reporting period in 2016. The favorable change was
driven by the absence of a second-quarter 2016, $341 million
impairment charge associated with Williams Partners’ now former
Canadian business that was sold in September 2016. Adjusted EBITDA
increased by $96 million to $2.221 billion. The improvement in
Adjusted EBITDA is due primarily to $36 million lower O&M and
SG&A expenses, a $28 million improvement in other income and
expense, and a $29 million increase in proportional EBITDA of joint
ventures. Partially offsetting these increases were lower fee-based
revenues in the West and NGL & Petchem segments.
On July 6, 2017, Williams Partners announced that it had
completed the sale of all of its membership interest in the Geismar
olefins production facility and associated complex. As a result of
this transaction, Williams Partners expects to record a gain of
approximately $1.1 billion in the third quarter of 2017.
Williams Partners’ complete financial results for second-quarter
2017 are provided in the earnings news release issued today by
Williams Partners.
Other Segment
Williams’ Other segment reported second-quarter 2017 Modified
EBITDA of ($17) million, an improvement of $413 million from
second-quarter 2016 primarily reflecting the absence of a
second-quarter 2016, $406 million impairment charge associated with
its former Canadian business that was sold in September 2016.
Adjusted EBITDA realized a $9 million improvement to $9
million.
Year-to-date, Williams’ Other segment reported Modified EBITDA
of $1 million, an improvement of $468 million over the same
six-month reporting period in 2016 primarily reflecting the absence
of the previously mentioned 2016 impairment. Adjusted EBITDA
realized a $41 million increase to $37 million.
Atlantic Sunrise Update
Williams Partners received notice to proceed on the mainline
portion of the project, and construction activities are underway.
In third-quarter 2017, the partnership expects to begin early
mainline service and to receive final permits on the greenfield
portion of the project. Williams Partners continues to target
mid-2018 for the project’s full in-service date.
Guidance
The Guidance previously provided at our Analyst Day event on May
11, 2017, remains unchanged.
Williams’ Second-Quarter 2017 Materials to be Posted Shortly;
Q&A Webcast Scheduled for Tomorrow
Williams’ second-quarter 2017 financial results package will be
posted shortly at www.williams.com. The materials will include the
analyst package.
Williams and Williams Partners will host a joint Q&A live
webcast on Thursday, Aug. 3 at 9:30 a.m. Eastern Daylight Time
(8:30 a.m. Central Daylight Time). A limited number of phone lines
will be available at (877) 419-6594. International callers should
dial (719) 325-4888. The conference ID is 9171330. The link to the
webcast, as well as replays of the webcast, will be available for
at least 90 days following the event at www.williams.com.
Form 10-Q
The company plans to file its second-quarter 2017 Form 10-Q with
the Securities and Exchange Commission (SEC) this week. Once filed,
the document will be available on both the SEC and Williams
websites.
Non-GAAP Measures
This news release may include certain financial measures –
Adjusted EBITDA, adjusted income (“earnings”), adjusted earnings
per share, cash available for dividends and other uses, WMB
economic DCF, dividend coverage ratio, and economic 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 these measures provide investors meaningful
insight into results from ongoing operations.
Cash available for dividends and other uses is defined as cash
received from our ownership in WPZ and Adjusted EBITDA from our
Other segment, less interest, taxes and maintenance capital
expenditures associated with our Other segment. We also calculate
the ratio of cash available for dividends to the total cash
dividends paid (dividend coverage ratio). This measure reflects our
cash available for dividends relative to actual cash dividends
paid. We further adjust these metrics to include Williams’
proportional share of WPZ’s distributable cash flow in excess of
distributions, resulting in WMB economic DCF and economic coverage
ratio.
This news release is accompanied by a reconciliation of these
non-GAAP financial measures to their nearest GAAP financial
measures. Management uses these financial measures because they are
accepted financial indicators used by investors to compare company
performance. In addition, management believes that these measures
provide investors an enhanced perspective of the operating
performance of the Company’s assets and the cash that the business
is generating.
Neither Adjusted EBITDA, adjusted income, or cash available for
dividends and other uses 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 owns approximately 74 percent of Williams
Partners L.P. (NYSE: WPZ). Williams Partners is an
industry-leading, large-cap master limited partnership with
operations across the natural gas value chain including gathering,
processing and interstate transportation of natural gas and natural
gas liquids. With major positions in top U.S. supply basins,
Williams Partners owns and operates more than 33,000 miles of
pipelines system wide – including the nation’s largest volume and
fastest growing pipeline – providing natural gas for clean-power
generation, heating and industrial use. Williams Partners’
operations touch approximately 30 percent of U.S. natural gas.
www.williams.com
Forward-Looking Statements
The reports, filings, and other public announcements of The
Williams Companies, Inc. (Williams) 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 include, among others, statements regarding:
- Expected levels of cash distributions
by Williams Partners L.P. (WPZ) with respect to limited partner
interests;
- Levels of dividends to Williams
stockholders;
- Future credit ratings of Williams, WPZ,
and their affiliates;
- Amounts and nature of future capital
expenditures;
- Expansion and growth of our business
and operations;
- 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;
- 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 WPZ will produce sufficient
cash flows to provide expected levels of cash distributions;
- Whether we are able to pay current and
expected levels of dividends;
- Whether WPZ elects to pay expected
levels of cash distributions and we elect to pay expected levels of
dividends;
- Whether we will be able to effectively
execute our financing plan;
- Whether we will be able to effectively
manage the transition in our board of directors and management as
well as successfully execute our business restructuring;
- Availability of supplies, including
lower than anticipated volumes from third parties served by our
business, and market demand;
- Volatility of pricing including the
effect of lower than anticipated energy commodity prices and
margins;
- 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 in accordance with our forecasted
capital expenditures budget;
- Our ability to successfully expand our
facilities and operations;
- Development and rate of adoption of
alternative energy sources;
- The impact of operational and
developmental hazards, unforeseen interruptions, and the
availability of adequate insurance coverage;
- The impact of existing and future laws,
regulations, the regulatory environment, environmental liabilities,
and litigation, as well as our ability to obtain permits 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;
- 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, including
cybersecurity threats, 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, 2017.
Reconciliation of Income (Loss)
Attributable to The Williams Companies, Inc. to Adjusted Income
(UNAUDITED)
2016 2017 (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
$ (65 ) $ (405 ) $ 61 $ (15 ) $
(424 ) $ 373 $ 81 $ 454
Income (loss) - diluted earnings (loss) per common share $
(.09 ) $ (.54 ) $ .08 $ (.02 ) $
(.57 ) $ .45 $ .10 $ .55
Adjustments:
Williams
Partners
Estimated minimum volume commitments $ 60 $ 64 $ 70 (194 ) $ — $ 15
$ 15 $ 30 Impairment of certain assets — 389 — 22 411 — — —
Organizational realignment-related costs — — — 24 24 4 6 10 Loss
related to Canada disposition — — 32 2 34 (3 ) (1 ) (4 ) Severance
and related costs 25 — — 12 37 9 4 13 Constitution Pipeline project
development costs — 8 11 9 28 2 6 8 Potential rate refunds
associated with rate case litigation 15 — — — 15 — — — ACMP Merger
and transition-related expenses 5 — — — 5 — 4 4 Share of impairment
at equity-method investments — — 6 19 25 — — — Gain on asset
retirement — — — (11 ) (11 ) — — — Geismar Incident adjustment for
insurance and timing — — — (7 ) (7 ) (9 ) 2 (7 )
Gains from contract settlements and
terminations
— — — — — (13 ) (2 ) (15 ) Accrual for loss contingency — — — — — 9
— 9 Gain on early retirement of debt — — — — — (30 ) — (30 ) Gain
on sale of RGP Splitter — — — — — — (12 ) (12 ) Expenses associated
with Financial Repositioning — — — — — — 2 2 Expenses associated
with strategic asset monetizations — —
— 2
2 1 4 5
Total Williams Partners adjustments 105 461 119 (122 ) 563
(15 ) 28 13
Other
Impairment of certain assets — 406 — 8 414 — 23 23 Loss related to
Canada disposition — — 33 (1 ) 32 1 — 1 Canadian PDH facility
project development costs 34 11 16 — 61 — — — Gain on sale of
certain assets (10 ) — — — (10 ) — — — Expenses associated with
strategic alternatives 6 13 21 7 47 1 3 4 Other ACMP Merger and
transition-related expenses 2 — — — 2 — — — Severance and related
costs 1 — — 4 5 — — — Expenses associated with Financial
Repositioning — —
— — — 8
— 8 Total Other
adjustments 33 430
70 18 551
10 26 36
Adjustments included in Modified EBITDA 138 891 189 (104 ) 1,114 (5
) 54 49
Adjustments below
Modified EBITDA
Impairment of equity-method investments - Williams Partners 112 — —
318 430 — — — Gain on disposition of equity-method investment -
Williams Partners — — (27 ) — (27 ) (269 ) — (269 )
Interest expense related to potential rate
refunds associated with rate case litigation - Williams
Partners
3 — — — 3 — — —
Accelerated depreciation related to
reduced salvage value of certain assets - Williams Partners
— — — 4 4 — — —
Change in depreciable life associated with
organizational realignment - Williams Partners
— — — (16 ) (16 ) (7 ) — (7 ) Interest income on receivable from
sale of Venezuela assets - Other (18 ) (18 ) — — (36 ) — — —
Allocation of adjustments to noncontrolling interests (83 )
(154 ) (41 ) (76 )
(354 ) 77 (10 ) 67
14 (172 ) (68 ) 230 4 (199 ) (10 ) (209 )
Total
adjustments 152 719 121 126 1,118 (204 ) 44 (160 ) Less tax
effect for above items (61 ) (202 ) (39 ) 19 (283 ) 77 (17 ) 60
Adjustments for tax-related items (1) —
34 5 —
39 (127 ) —
(127 )
Adjusted income available to common stockholders $ 26
$ 146 $ 148 $ 130
$ 450 $ 119 $ 108 $ 227
Adjusted diluted earnings per common share (2) $ .03
$ .19 $ .20 $ .17
$ .60 $ .14 $ .13 $ .27
Weighted-average shares - diluted (thousands) 751,040
751,297 751,858 752,818 751,761 826,476 828,575 827,531 (1)
The second and third quarters of 2016 include a favorable
adjustment related to the reversal of a cumulative anticipatory
foreign tax credit. The first quarter of 2017 includes an
unfavorable adjustment related to the release of a valuation
allowance. (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 Non-GAAP “Modified EBITDA” to Non-GAAP “Adjusted EBITDA”
(UNAUDITED) 2016
2017 (Dollars in millions) 1st Qtr 2nd Qtr
3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr
Year
Net income (loss) $ (13 ) $ (505 ) $ 131 $ 37
$ (350 ) $ 569 $ 193 $ 762 Provision (benefit) for income taxes 2
(145 ) 69 49 (25 ) 37 65 102 Interest expense 291 298 297 293 1,179
280 271 551 Equity (earnings) losses (97 ) (101 ) (104 ) (95 ) (397
) (107 ) (125 ) (232 ) Impairment of equity-method investments 112
— — 318 430 — — — Other investing (income) loss - net (18 ) (18 )
(28 ) 1 (63 ) (272 ) (2 ) (274 ) Proportional Modified EBITDA of
equity-method investments 189 191 194 180 754 194 215 409
Depreciation and amortization expenses 445 446 435 437 1,763 442
433 875
Accretion for asset retirement obligations
associated with nonregulated operations
7 8 9
7 31 7
9
16
Modified EBITDA $ 918
$ 174 $ 1,003
$ 1,227 $ 3,322
$ 1,150 $ 1,059
$ 2,209 Williams Partners
$ 955 $ 604 $ 1,070 $ 1,235 $ 3,864 $ 1,132 $ 1,076 $ 2,208 Other
(37 ) (430 ) (67 )
(8 ) (542 ) 18 (17 )
1
Total Modified EBITDA $
918 $ 174 $
1,003 $ 1,227
$ 3,322 $ 1,150
$ 1,059 $ 2,209
Adjustments included in Modified EBITDA (1):
Williams Partners $ 105 $ 461 $ 119 $ (122 ) $ 563 $ (15 ) $ 28 $
13 Other 33 430 70
18 551 10
26 36
Total
Adjustments included in Modified EBITDA $ 138
$ 891 $ 189
$ (104 ) $
1,114 $ (5 ) $
54 $ 49
Adjusted EBITDA: Williams Partners $ 1,060 $ 1,065 $
1,189 $ 1,113 $ 4,427 $ 1,117 $ 1,104 $ 2,221 Other (4 )
— 3 10
9 28 9
37
Total Adjusted EBITDA
$ 1,056 $ 1,065
$ 1,192 $ 1,123
$ 4,436 $ 1,145
$ 1,113 $
2,258 (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)
2016 2017 (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) (1) $
513 $ 513 $ 522 $ 597
$ 2,145 $ 421 $ 421
$ 842 Other Segment Adjusted EBITDA (2) (14 ) (12 )
(13 ) (4 ) (43 ) 28 9 37 Corporate interest (66 )
(67 ) (68 ) (67 )
(268 ) (66 ) (65 ) (131 )
Subtotal 433 434 441 526 1,834 383 365 748 WMB cash tax rate 0 % -1
% 0 % 1 % 0 % 0 % 0 % 0 % WMB cash taxes (excludes cash taxes paid
by WPZ) 2 3 — (7 ) (2 ) — — — Other Segment Maintenance Capital
(6 ) (4 ) —
(1 ) (11 ) (3 ) (5 )
(8 ) WMB cash available for dividends and other uses (3) $
429 $ 433 $ 441 $ 518 $ 1,821 $ 380 $ 360 $ 740 WMB dividends paid
(480 ) (481 ) (150 )
(150 ) (1,261 ) (248 )
(248 ) (496 ) Excess cash available after dividends $
(51 ) $ (48 ) $ 291 $ 368 $ 560 $ 132 $ 112 $ 244 Dividend
per share $ 0.6400 $ 0.6400 $ 0.2000 $ 0.2000 $ 1.6800 $ 0.3000 $
0.3000 $ 0.6000 Coverage ratio (1)(4) 0.89 0.90 2.94 3.45
1.44 1.53 1.45 1.49 (1) Cash distributions for the
first quarter of 2016 was increased by $10 million in order to
exclude the impact of the IDR waiver associated with the WPZ merger
termination fee from the determination of coverage ratios. Cash
distributions for the third quarter of 2016 was increased by $150
million in order to exclude the impact of the IDR waiver associated
with the sale of the Canadian operations. (2) For periods
prior to 2017, includes only former Williams NGL & Petchem
Services segment. (3) As previously announced, effective
with the third quarter of 2016, Williams reduced its regular
dividend from $0.64 per share to $0.20 per share to support
Williams' plan to reinvest a portion of the cash available for
dividends and other uses into Williams Partners. Effective with the
first quarter of 2017, Williams increased its regular dividend from
$0.20 per share to $0.30 per share as part of the Financial
Repositioning announced in the first quarter of 2017. (4)
WMB cash available for dividends and other uses / WMB dividends
paid.
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version on businesswire.com: http://www.businesswire.com/news/home/20170802006240/en/
WilliamsMedia Contact:Keith Isbell,
918-573-7308orInvestor Contact:Brett Krieg, 918-573-4614
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