Williams Delivers Record Third-Quarter Results Driven by Continued Strength of Base Business
TULSA, Okla.–(BUSINESS WIRE)–Williams (NYSE: WMB) today announced its unaudited financial results for the three and nine months ended Sept. 30, 2024.
Demonstrated track record of year-over-year financial gains
- GAAP net income of $705 million, or $0.58 per diluted share (EPS) – up 8% vs. 3Q 2023
- Adjusted net income of $528 million, or $0.43 per diluted share (Adj. EPS)
- Record 3Q Adjusted EBITDA of $1.703 billion – up $51 million or 3% vs. 3Q 2023
- Cash flow from operations (CFFO) of $1.243 billion
- Available funds from operations (AFFO) of $1.286 billion – up $56 million or 5% vs. 3Q 2023
- Dividend coverage ratio of 2.22x (AFFO basis)
- Increased midpoint for full-year 2024 guidance by $125 million to $7.075 billion Adjusted EBITDA
Proven project execution continues to deliver long-term, stable growth
- Placed Transco’s Regional Energy Access into full service ahead of schedule on Aug. 1
- Placed MountainWest’s Uinta Basin expansion in-service
- Placed portion of Transco’s Southside Reliability Enhancement in-service
- Placed Anchor in-service and completed construction on Whale in Deepwater Gulf of Mexico
- Began construction on Transco’s Commonwealth Energy Connector
- Obtained favorable rulings and began construction on Louisiana Energy Gateway project
- Began construction on two solar projects in the Northeast and signed commercial agreements with Florida utility fully subscribing large-scale Lakeland Solar project
Captured new, high-return growth projects across footprint
- Received FERC certificate for MountainWest Overthrust Westbound expansion
- Filed FERC application for Transco’s ~1.6 Bcf/d Southeast Supply Enhancement project
- Executed agreement on Transco’s Dalton Lateral Expansion II
- Executed agreements on three new expansions on Northwest Pipeline, totaling ~260 MMcf/d of firm capacity
CEO Perspective
Alan Armstrong, president and chief executive officer, made the following comments:
“Williams delivered another quarter of impressive financial results, with Adjusted EBITDA hitting a third quarter record of $1.7 billion, up 3 percent over third quarter 2023, driven primarily by our natural gas transmission expansions and Gulf Coast storage acquisition. We’ve exceeded financial expectations each quarter this year, and our crisp execution along with our core business strength gives us the confidence to raise our 2024 Adjusted EBITDA guidance midpoint by $125 million to $7.075 billion.
“Our teams continue to excel in executing large-scale expansion projects to serve growing natural gas demand for residential, commercial and industrial use. In addition to placing Transco’s Regional Energy Access in service ahead of schedule, we also brought online an expansion to MountainWest as well as a portion of Transco’s Southside Reliability Enhancement. Construction is underway on the Louisiana Energy Gateway project as well as Transco’s Commonwealth Energy Connector. In the Deepwater Gulf of Mexico, we commissioned our large-scale facilities to receive production from both Chevron’s Anchor field in August and Shell’s Whale field as they ramp up production in the fourth quarter.
“Not only do we have a clear line of sight to a full roster of projects in execution, but we continue to commercialize vital, high-return projects across our footprint. We executed a precedent agreement on another expansion to the Transco Dalton Lateral driven by load growth from data center demand and industrial re-shoring in the Atlanta area. In the Rockies and Northwest, we entered into new binding agreements for three separate natural gas transmission expansions to serve power and load growth, including a large coal-to-gas power plant conversion. In addition, we filed the FERC application for Transco’s Southeast Supply Enhancement project, a 1.6 Bcf/d expansion to meet growing residential, commercial and industrial demand in cities across the Mid-Atlantic and Southeast.”
Armstrong added, “All this activity underscores the accelerating demand for natural gas transmission capacity in the United States, particularly in the growing regions where we operate. As the most natural gas-centric energy infrastructure provider with access to the most prolific U.S. basins, Williams is the best positioned to serve steadily increasing domestic needs for clean and affordable energy, while also helping unlock vast U.S. reserves for the global market.”
Williams Summary Financial Information |
3Q |
|
Year to Date |
||||||
Amounts in millions, except ratios and per-share amounts. Per share amounts are reported on a diluted basis. Net income amounts are from continuing operations attributable to The Williams Companies, Inc. available to common stockholders. |
2024 |
2023 |
|
2024 |
2023 |
||||
|
|
|
|
|
|
||||
GAAP Measures |
|
|
|
|
|
||||
Net Income |
$705 |
$654 |
|
$1,737 |
$2,127 |
||||
Net Income Per Share |
$0.58 |
|
$0.54 |
|
|
$1.42 |
|
$1.74 |
|
Cash Flow From Operations |
$1,243 |
|
$1,234 |
|
|
$3,756 |
|
$4,125 |
|
|
|
|
|
|
|
||||
Non-GAAP Measures (1) |
|
|
|
|
|
||||
Adjusted EBITDA |
$1,703 |
|
$1,652 |
|
|
$5,304 |
|
$5,058 |
|
Adjusted Net Income |
$528 |
|
$547 |
|
|
$1,768 |
|
$1,746 |
|
Adjusted Earnings Per Share |
$0.43 |
|
$0.45 |
|
|
$1.45 |
|
$1.43 |
|
Available Funds from Operations |
$1,286 |
|
$1,230 |
|
|
$4,043 |
|
$3,890 |
|
Dividend Coverage Ratio |
2.22x |
2.26x |
|
2.33x |
2.38x |
||||
|
|
|
|
|
|
||||
Other |
|
|
|
|
|
||||
Debt-to-Adjusted EBITDA at Quarter End (2) |
3.75x |
3.45x |
|
|
|
||||
Capital Investments (Excluding Acquisitions) (3) (4) |
$720 |
|
$805 |
|
|
$1,946 |
|
$2,045 |
|
|
|
|
|
|
|
||||
(1) Schedules reconciling Adjusted Net Income, Adjusted EBITDA, Available Funds from Operations and Dividend Coverage Ratio (non-GAAP measures) to the most comparable GAAP measure are available at www.williams.com and as an attachment to this news release. |
|||||||||
(2) Does not represent leverage ratios measured for WMB credit agreement compliance or leverage ratios as calculated by the major credit ratings agencies. Debt is net of cash on hand, and Adjusted EBITDA reflects the sum of the last four quarters. |
|||||||||
(3) Capital Investments include increases to property, plant, and equipment (growth & maintenance capital), purchases of and contributions to equity-method investments and purchases of other long-term investments. |
|||||||||
(4) Third-quarter and year-to-date 2024 capital excludes $151 million for the consolidation of our Discovery JV, which closed in August 2024. Year-to-date 2024 capital also excludes $1.844 billion for the acquisition of the Gulf Coast storage assets, which closed January 2024. Third-quarter and year-to-date 2023 capital excludes ($29) million and $1.024 billion, respectively, for the acquisition of MountainWest Pipeline Holding Company, which closed February 2023.
|
GAAP Measures
Third-quarter 2024 net income increased by $51 million compared to the prior year reflecting $141 million of higher service revenues driven by acquisitions and expansion projects, partially offset by higher net interest expense from recent debt issuances and retirements, higher operating costs, depreciation and interest expense resulting from recent acquisitions, and lower net realized product sales from upstream operations. Third-quarter 2024 gains of $149 million from the sale of our interests in Aux Sable and $127 million associated with the Discovery Acquisition were partially offset by the absence of a $130 million gain on the sale of the Bayou Ethane system in 2023. The tax provision changed unfavorably primarily due to higher pretax income and the absence of a $25 million benefit in 2023 associated with a decrease in our estimated deferred state income tax rate.
Year-to-date 2024 net income decreased by $390 million compared to the prior year reflecting an unfavorable change of $643 million in net unrealized gains/losses on commodity derivatives, higher net interest expense from recent debt issuances and retirements, lower realized hedge gains in the West, and higher operating costs, depreciation and interest expense resulting from recent acquisitions. These unfavorable changes were partially offset by a $441 million increase in service revenues driven by acquisitions and expansion projects, and the net favorable change of $146 million from the previously discussed Aux Sable, Discovery, and Bayou Ethane transactions. The tax provision decreased primarily due to lower pretax income.
Third-quarter 2024 cash flow from operations was generally consistent with the prior year, while year-to-date 2024 decreased compared to the prior year primarily due to unfavorable net changes in both working capital and derivative collateral requirements, partially offset by higher operating results exclusive of non-cash items.
Non-GAAP Measures
Third-quarter 2024 Adjusted EBITDA increased by $51 million over the prior year, driven by the previously described favorable net contributions from acquisitions and expansion projects. Year-to-date 2024 Adjusted EBITDA increased by $246 million over the prior year, similarly reflecting favorable net contributions from acquisitions and expansion projects, partially offset by lower realized hedge gains in the West.
Third-quarter 2024 Adjusted Net Income declined by $19 million over the prior year, while year-to-date 2024 Adjusted Net Income increased $22 million over the prior year, both driven by the previously described impacts to net income, adjusted primarily to remove the effects of the gains associated with Bayou Ethane, Discovery, and Aux Sable, net unrealized gains/losses on commodity derivatives, acquisition-related costs, and the related income tax effects.
Third-quarter and year-to-date Available Funds From Operations (AFFO) increased by $56 million and $153 million, respectively, compared to the prior year primarily due to higher results from continuing operations exclusive of non-cash items.
Business Segment Results & Form 10-Q
Williams’ operations are comprised of the following reportable segments: Transmission & Gulf of Mexico, Northeast G&P, West and Gas & NGL Marketing Services, as well as Other. For more information, see the company’s third-quarter 2024 Form 10-Q.
|
Third Quarter |
|
Year to Date |
||||||||||||||||||||||||
Amounts in millions |
Modified EBITDA |
|
Adjusted EBITDA |
|
Modified EBITDA |
|
Adjusted EBITDA |
||||||||||||||||||||
3Q 2024 |
3Q 2023 |
Change |
|
3Q 2024 |
3Q 2023 |
Change |
|
2024 |
2023 |
Change |
|
2024 |
2023 |
Change |
|||||||||||||
Transmission & Gulf of Mexico |
$811 |
$881 |
($70 |
) |
|
$830 |
$754 |
$76 |
|
|
$2,448 |
|
$2,327 |
$121 |
|
|
$2,481 |
$2,230 |
$251 |
|
|||||||
Northeast G&P |
476 |
|
454 |
|
22 |
|
|
484 |
|
485 |
|
(1 |
) |
|
1,461 |
|
1,439 |
|
22 |
|
|
1,467 |
|
1,470 |
|
(3 |
) |
West |
323 |
|
315 |
|
8 |
|
|
330 |
|
315 |
|
15 |
|
|
968 |
|
931 |
|
37 |
|
|
977 |
|
913 |
|
64 |
|
Gas & NGL Marketing Services |
11 |
|
43 |
|
(32 |
) |
|
4 |
|
16 |
|
(12 |
) |
|
(14 |
) |
678 |
|
(692 |
) |
|
179 |
|
231 |
|
(52 |
) |
Other |
58 |
|
81 |
|
(23 |
) |
|
55 |
|
82 |
|
(27 |
) |
|
181 |
|
196 |
|
(15 |
) |
|
200 |
|
214 |
|
(14 |
) |
Total |
$1,679 |
|
$1,774 |
|
($95 |
) |
|
$1,703 |
|
$1,652 |
|
$51 |
|
|
$5,044 |
|
$5,571 |
|
($527 |
) |
|
$5,304 |
|
$5,058 |
|
$246 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Note: Williams uses Modified EBITDA for its segment reporting. Definitions of Modified EBITDA and Adjusted EBITDA and schedules reconciling to net income are included in this news release. |
Transmission & Gulf of Mexico
Third-quarter 2024 Modified EBITDA declined compared to the prior year driven by the absence of the previously mentioned gain on the sale of the Bayou Ethane system, as well as hurricane impacts, partially offset by favorable net contributions from the Gulf Coast Storage acquisition and the Regional Energy Access expansion project. Year-to-date 2024 Modified EBITDA improved as the favorable net contributions from acquisitions, including MountainWest, and transmission expansions, along with lower one-time acquisition and transition costs, more than offset the absence of the Bayou Ethane gain and the absence of earnings from the Bayou Ethane system. Third-quarter and year-to-date Adjusted EBITDA, which excludes the Bayou Ethane gain and acquisition and transition costs, improved compared to the prior year.
Northeast G&P
Third-quarter and year-to-date 2024 Modified EBITDA increased compared to the prior year driven by higher rates at Susquehanna Supply Hub and Bradford, partially offset by lower gathering volumes. The improved Modified EBITDA for both periods also reflects the absence of our share of a loss contingency accrual at Aux Sable in 2023, which is excluded from Adjusted EBITDA.
West
Third-quarter 2024 Modified and Adjusted EBITDA increased compared to the prior year benefiting from the DJ Basin Acquisitions, partially offset by lower gathering volumes and lower realized gains on natural gas hedges. Both metrics also improved for the year-to-date period reflecting similar drivers, as well as improved commodity margins reflecting favorable changes in shrink prices related to the absence of a short-term gas price spike at Opal in 2023. The year-to-date Modified EBITDA was also impacted by the absence of a first-quarter 2023 favorable contract settlement, which is excluded from Adjusted EBITDA.
Gas & NGL Marketing Services
Third-quarter 2024 Modified EBITDA decreased from the prior year reflecting lower NGL marketing margins and a $14 million net unfavorable change in unrealized gains/losses on commodity derivatives, which is excluded from Adjusted EBITDA. Year-to-date 2024 Modified EBITDA also decreased from the prior year reflecting a decline in both gas marketing margins and NGL marketing margins, as well as a $642 million net unfavorable change in unrealized gains/losses on commodity derivatives, which is excluded from Adjusted EBITDA.
Other
Third-quarter and year-to-date 2024 Modified and Adjusted EBITDA decreased compared to the prior year driven by lower net realized product sales from upstream operations.
2024 Financial Guidance
The company now expects 2024 Adjusted EBITDA between $7 billion and $7.150 billion, which is an increase to the midpoint of guidance by $125 million. In addition, the company continues to expect 2024 growth capex between $1.45 billion and $1.75 billion and maintenance capex between $1.1 billion and $1.3 billion, which includes capital of $350 million for emissions reduction and modernization initiatives. For 2025, the company continues to expect Adjusted EBITDA between $7.2 billion and $7.6 billion with growth capex between $1.65 billion and $1.95 billion and maintenance capex between $750 million and $850 million, which includes capital of $100 million for emissions reduction and modernization initiatives. Williams anticipates a leverage ratio midpoint for 2024 of 3.80x and an increase in the dividend by 6.1% on an annualized basis to $1.90 in 2024 from $1.79 in 2023.
Williams’ Third-Quarter 2024 Materials to be Posted Shortly; Q&A Webcast Scheduled for Tomorrow
Williams’ third-quarter 2024 earnings presentation will be posted at www.williams.com. The company’s third-quarter 2024 earnings conference call and webcast with analysts and investors is scheduled for Thursday, Nov. 7, at 9:30 a.m. Eastern Time (8:30 a.m. Central Time). Participants who wish to join the call by phone must register using the following link: https://register.vevent.com/register/BIf053fa45b660426a89b026a932aec0ae.
A webcast link to the conference call will be provided on Williams’ Investor Relations website. A replay of the webcast will also be available on the website for at least 90 days following the event.
About Williams
Williams (NYSE: WMB) is a trusted energy industry leader committed to safely, reliably, and responsibly meeting growing energy demand. We use our 33,000-mile pipeline infrastructure to move a third of the nation’s natural gas to where it’s needed most, supplying the energy used to heat our homes, cook our food and generate low-carbon electricity. For over a century, we’ve been driven by a passion for doing things the right way. Today, our team of problem solvers is leading the charge into the clean energy future – by powering the global economy while delivering immediate emissions reductions within our natural gas network and investing in new energy technologies. Learn more at www.williams.com.
The Williams Companies, Inc. Consolidated Statement of Income (Unaudited)
|
||||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
(Millions, except per-share amounts) |
|||||||||||||||
Revenues: |
|
|
|
|
|
|
|
|
||||||||
Service revenues |
|
$ |
1,911 |
|
|
$ |
1,770 |
|
|
$ |
5,653 |
|
|
$ |
5,212 |
|
Service revenues – commodity consideration |
|
|
34 |
|
|
|
45 |
|
|
|
82 |
|
|
|
108 |
|
Product sales |
|
|
703 |
|
|
|
720 |
|
|
|
2,158 |
|
|
|
2,158 |
|
Net gain (loss) from commodity derivatives |
|
|
5 |
|
|
|
24 |
|
|
|
(133 |
) |
|
|
645 |
|
Total revenues |
|
|
2,653 |
|
|
|
2,559 |
|
|
|
7,760 |
|
|
|
8,123 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
||||||||
Product costs |
|
|
517 |
|
|
|
484 |
|
|
|
1,467 |
|
|
|
1,458 |
|
Net processing commodity expenses |
|
|
7 |
|
|
|
31 |
|
|
|
29 |
|
|
|
129 |
|
Operating and maintenance expenses |
|
|
580 |
|
|
|
522 |
|
|
|
1,613 |
|
|
|
1,466 |
|
Depreciation and amortization expenses |
|
|
566 |
|
|
|
521 |
|
|
|
1,654 |
|
|
|
1,542 |
|
Selling, general, and administrative expenses |
|
|
170 |
|
|
|
146 |
|
|
|
520 |
|
|
|
483 |
|
Gain on sale of business |
|
|
— |
|
|
|
(130 |
) |
|
|
— |
|
|
|
(130 |
) |
Other (income) expense – net |
|
|
(25 |
) |
|
|
(9 |
) |
|
|
(69 |
) |
|
|
(49 |
) |
Total costs and expenses |
|
|
1,815 |
|
|
|
1,565 |
|
|
|
5,214 |
|
|
|
4,899 |
|
Operating income (loss) |
|
|
838 |
|
|
|
994 |
|
|
|
2,546 |
|
|
|
3,224 |
|
Equity earnings (losses) |
|
|
147 |
|
|
|
127 |
|
|
|
431 |
|
|
|
434 |
|
Other investing income (loss) – net |
|
|
290 |
|
|
|
24 |
|
|
|
332 |
|
|
|
45 |
|
Interest expense |
|
|
(338 |
) |
|
|
(314 |
) |
|
|
(1,026 |
) |
|
|
(914 |
) |
Other income (expense) – net |
|
|
31 |
|
|
|
30 |
|
|
|
95 |
|
|
|
69 |
|
Income (loss) before income taxes |
|
|
968 |
|
|
|
861 |
|
|
|
2,378 |
|
|
|
2,858 |
|
Less: Provision (benefit) for income taxes |
|
|
227 |
|
|
|
176 |
|
|
|
549 |
|
|
|
635 |
|
Income (loss) from continuing operations |
|
|
741 |
|
|
|
685 |
|
|
|
1,829 |
|
|
|
2,223 |
|
Income (loss) from discontinued operations |
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
(88 |
) |
Net income (loss) |
|
|
741 |
|
|
|
684 |
|
|
|
1,829 |
|
|
|
2,135 |
|
Less: Net income (loss) attributable to noncontrolling interests |
|
|
35 |
|
|
|
30 |
|
|
|
90 |
|
|
|
94 |
|
Net income (loss) attributable to The Williams Companies, Inc. |
|
|
706 |
|
|
|
654 |
|
|
|
1,739 |
|
|
|
2,041 |
|
Less: Preferred stock dividends |
|
|
1 |
|
|
|
1 |
|
|
|
2 |
|
|
|
2 |
|
Net income (loss) available to common stockholders |
|
$ |
705 |
|
|
$ |
653 |
|
|
$ |
1,737 |
|
|
$ |
2,039 |
|
Amounts attributable to The Williams Companies, Inc. available to common stockholders: |
|
|
|
|
|
|
|
|
||||||||
Income (loss) from continuing operations |
|
$ |
705 |
|
|
$ |
654 |
|
|
$ |
1,737 |
|
|
$ |
2,127 |
|
Income (loss) from discontinued operations |
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
(88 |
) |
Net income (loss) available to common stockholders |
|
$ |
705 |
|
|
$ |
653 |
|
|
$ |
1,737 |
|
|
$ |
2,039 |
|
Basic earnings (loss) per common share: |
|
|
|
|
|
|
|
|
||||||||
Income (loss) from continuing operations |
|
$ |
.58 |
|
|
$ |
.54 |
|
|
$ |
1.43 |
|
|
$ |
1.74 |
|
Income (loss) from discontinued operations |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(.07 |
) |
Net income (loss) available to common stockholders |
|
$ |
.58 |
|
|
$ |
.54 |
|
|
$ |
1.43 |
|
|
$ |
1.67 |
|
Weighted-average shares (thousands) |
|
|
1,219,537 |
|
|
|
1,216,951 |
|
|
|
1,219,021 |
|
|
|
1,218,021 |
|
Diluted earnings (loss) per common share: |
|
|
|
|
|
|
|
|
||||||||
Income (loss) from continuing operations |
|
$ |
.58 |
|
|
$ |
.54 |
|
|
$ |
1.42 |
|
|
$ |
1.74 |
|
Income (loss) from discontinued operations |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(.07 |
) |
Net income (loss) available to common stockholders |
|
$ |
.58 |
|
|
$ |
.54 |
|
|
$ |
1.42 |
|
|
$ |
1.67 |
|
Weighted-average shares (thousands) |
|
|
1,222,869 |
|
|
|
1,220,073 |
|
|
|
1,222,444 |
|
|
|
1,222,650 |
|
The Williams Companies, Inc. Consolidated Balance Sheet (Unaudited)
|
||||||||
|
|
September 30, |
|
December 31, |
||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
(Millions, except per-share amounts) |
||||||
ASSETS |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
762 |
|
|
$ |
2,150 |
|
Trade accounts and other receivables (net of allowance of ($4) at September 30, 2024 and($3) at December 31, 2023) |
|
|
1,310 |
|
|
|
1,655 |
|
Inventories |
|
|
275 |
|
|
|
274 |
|
Derivative assets |
|
|
143 |
|
|
|
239 |
|
Other current assets and deferred charges |
|
|
208 |
|
|
|
195 |
|
Total current assets |
|
|
2,698 |
|
|
|
4,513 |
|
Investments |
|
|
4,201 |
|
|
|
4,637 |
|
Property, plant, and equipment |
|
|
56,479 |
|
|
|
51,842 |
|
Accumulated depreciation and amortization |
|
|
(18,505 |
) |
|
|
(17,531 |
) |
Property, plant, and equipment – net |
|
|
37,974 |
|
|
|
34,311 |
|
Intangible assets – net of accumulated amortization |
|
|
7,305 |
|
|
|
7,593 |
|
Regulatory assets, deferred charges, and other |
|
|
1,659 |
|
|
|
1,573 |
|
Total assets |
|
$ |
53,837 |
|
|
$ |
52,627 |
|
|
|
|
|
|
||||
LIABILITIES AND EQUITY |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
1,137 |
|
|
$ |
1,379 |
|
Derivative liabilities |
|
|
95 |
|
|
|
105 |
|
Accrued and other current liabilities |
|
|
1,203 |
|
|
|
1,284 |
|
Commercial paper |
|
|
— |
|
|
|
725 |
|
Long-term debt due within one year |
|
|
2,284 |
|
|
|
2,337 |
|
Total current liabilities |
|
|
4,719 |
|
|
|
5,830 |
|
Long-term debt |
|
|
24,825 |
|
|
|
23,376 |
|
Deferred income tax liabilities |
|
|
4,312 |
|
|
|
3,846 |
|
Regulatory liabilities, deferred income, and other |
|
|
5,116 |
|
|
|
4,684 |
|
Contingent liabilities and commitments |
|
|
|
|
||||
|
|
|
|
|
||||
Equity: |
|
|
|
|
||||
Stockholders’ equity: |
|
|
|
|
||||
Preferred stock ($1 par value; 30 million shares authorized at September 30, 2024 and December 31, 2023; 35 thousand shares issued at September 30, 2024 and December 31, 2023) |
|
|
35 |
|
|
|
35 |
|
Common stock ($1 par value; 1,470 million shares authorized at September 30, 2024 and December 31, 2023; 1,258 million shares issued at September 30, 2024 and 1,256 million shares issued at December 31, 2023) |
|
|
1,258 |
|
|
|
1,256 |
|
Capital in excess of par value |
|
|
24,611 |
|
|
|
24,578 |
|
Retained deficit |
|
|
(12,296 |
) |
|
|
(12,287 |
) |
Accumulated other comprehensive income (loss) |
|
|
— |
|
|
|
— |
|
Treasury stock, at cost (39 million shares at September 30, 2024 and December 31, 2023 of common stock) |
|
|
(1,180 |
) |
|
|
(1,180 |
) |
Total stockholders’ equity |
|
|
12,428 |
|
|
|
12,402 |
|
Noncontrolling interests in consolidated subsidiaries |
|
|
2,437 |
|
|
|
2,489 |
|
Total equity |
|
|
14,865 |
|
|
|
14,891 |
|
Total liabilities and equity |
|
$ |
53,837 |
|
|
$ |
52,627 |
|
The Williams Companies, Inc. Consolidated Statement of Cash Flows (Unaudited)
|
||||||||
|
|
Nine Months Ended |
||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
(Millions) |
||||||
OPERATING ACTIVITIES: |
|
|
|
|
||||
Net income (loss) |
|
$ |
1,829 |
|
|
$ |
2,135 |
|
Adjustments to reconcile to net cash provided (used) by operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
1,654 |
|
|
|
1,542 |
|
Provision (benefit) for deferred income taxes |
|
|
467 |
|
|
|
586 |
|
Equity (earnings) losses |
|
|
(431 |
) |
|
|
(434 |
) |
Distributions from equity-method investees |
|
|
580 |
|
|
|
607 |
|
Net unrealized (gain) loss from commodity derivative instruments |
|
|
210 |
|
|
|
(433 |
) |
Gain on sale of business |
|
|
— |
|
|
|
(130 |
) |
Gain on disposition of equity-method investments |
|
|
(149 |
) |
|
|
— |
|
Gain on consolidation of equity-method investments |
|
|
(127 |
) |
|
|
— |
|
Inventory write-downs |
|
|
8 |
|
|
|
28 |
|
Amortization of stock-based awards |
|
|
69 |
|
|
|
59 |
|
Cash provided (used) by changes in current assets and liabilities: |
|
|
|
|
||||
Accounts receivable |
|
|
367 |
|
|
|
1,295 |
|
Inventories |
|
|
(6 |
) |
|
|
29 |
|
Other current assets and deferred charges |
|
|
(16 |
) |
|
|
(5 |
) |
Accounts payable |
|
|
(317 |
) |
|
|
(1,072 |
) |
Accrued and other current liabilities |
|
|
(108 |
) |
|
|
(114 |
) |
Changes in current and noncurrent commodity derivative assets and liabilities |
|
|
(74 |
) |
|
|
172 |
|
Other, including changes in noncurrent assets and liabilities |
|
|
(200 |
) |
|
|
(140 |
) |
Net cash provided (used) by operating activities |
|
|
3,756 |
|
|
|
4,125 |
|
FINANCING ACTIVITIES: |
|
|
|
|
||||
Proceeds from (payments of) commercial paper – net |
|
|
(723 |
) |
|
|
(352 |
) |
Proceeds from long-term debt |
|
|
3,594 |
|
|
|
2,754 |
|
Payments of long-term debt |
|
|
(2,286 |
) |
|
|
(21 |
) |
Payments for debt issuance costs |
|
|
(31 |
) |
|
|
(21 |
) |
Proceeds from issuance of common stock |
|
|
8 |
|
|
|
8 |
|
Purchases of treasury stock |
|
|
— |
|
|
|
(130 |
) |
Common dividends paid |
|
|
(1,737 |
) |
|
|
(1,635 |
) |
Dividends and distributions paid to noncontrolling interests |
|
|
(178 |
) |
|
|
(174 |
) |
Contributions from noncontrolling interests |
|
|
36 |
|
|
|
18 |
|
Other – net |
|
|
(34 |
) |
|
|
(19 |
) |
Net cash provided (used) by financing activities |
|
|
(1,351 |
) |
|
|
428 |
|
INVESTING ACTIVITIES: |
|
|
|
|
||||
Property, plant, and equipment: |
|
|
|
|
||||
Capital expenditures (1) |
|
|
(1,805 |
) |
|
|
(1,845 |
) |
Dispositions – net |
|
|
(73 |
) |
|
|
(33 |
) |
Proceeds from sale of business |
|
|
— |
|
|
|
348 |
|
Purchases of businesses, net of cash acquired |
|
|
(1,995 |
) |
|
|
(1,024 |
) |
Proceeds from dispositions of equity-method investments |
|
|
161 |
|
|
|
— |
|
Purchases of and contributions to equity-method investments |
|
|
(101 |
) |
|
|
(80 |
) |
Other – net |
|
|
20 |
|
|
|
3 |
|
Net cash provided (used) by investing activities |
|
|
(3,793 |
) |
|
|
(2,631 |
) |
Increase (decrease) in cash and cash equivalents |
|
|
(1,388 |
) |
|
|
1,922 |
|
Cash and cash equivalents at beginning of year |
|
|
2,150 |
|
|
|
152 |
|
Cash and cash equivalents at end of period |
|
$ |
762 |
|
|
$ |
2,074 |
|
|
|
|
|
|
||||
(1) Increases to property, plant, and equipment |
|
$ |
(1,840 |
) |
|
$ |
(1,960 |
) |
Changes in related accounts payable and accrued liabilities |
|
|
35 |
|
|
|
115 |
|
Capital expenditures |
|
$ |
(1,805 |
) |
|
$ |
(1,845 |
) |
Contacts
MEDIA CONTACT:
media@williams.com
(800) 945-8723
INVESTOR CONTACTS:
Danilo Juvane
(918) 573-5075
Caroline Sardella
(918) 230-9992