Attached files
| file | filename |
|---|---|
| 8-K - 8-K - WILLIAMS COMPANIES, INC. | wmb_20171231x8kxer.htm |
| EX-99.1 - EX-99.1 - WILLIAMS COMPANIES, INC. | wmb_20171231xer.htm |
EXHIBIT 99.2
 | ||
Non-GAAP Reconciliations, | ||
Financial Highlights, and Operating Statistics | ||
(UNAUDITED) | ||
Final | ||
December 31, 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 | 3rd Qtr | 4th Qtr | Year | |||||||||||||||||||||
Income (loss) attributable to The Williams Companies, Inc. available to common stockholders | $ | (65 | ) | $ | (405 | ) | $ | 61 | $ | (15 | ) | $ | (424 | ) | $ | 373 | $ | 81 | $ | 33 | $ | 1,687 | $ | 2,174 | |||||||
Income (loss) - diluted earnings (loss) per common share | $ | (.09 | ) | $ | (.54 | ) | $ | .08 | $ | (.02 | ) | $ | (.57 | ) | $ | .45 | $ | .10 | $ | .04 | $ | 2.03 | $ | 2.62 | |||||||
Adjustments: | |||||||||||||||||||||||||||||||
Williams Partners | |||||||||||||||||||||||||||||||
Estimated minimum volume commitments | $ | 60 | $ | 64 | $ | 70 | $ | (194 | ) | $ | — | $ | 15 | $ | 15 | $ | 18 | $ | (48 | ) | $ | — | |||||||||
Impairment of certain assets | — | 389 | — | 22 | 411 | — | — | 1,142 | 9 | 1,151 | |||||||||||||||||||||
Ad valorem obligation timing adjustment | — | — | — | — | — | — | — | 7 | — | 7 | |||||||||||||||||||||
Organizational realignment-related costs | — | — | — | 24 | 24 | 4 | 6 | 6 | 2 | 18 | |||||||||||||||||||||
Loss related to Canada disposition | — | — | 32 | 2 | 34 | (3 | ) | (1 | ) | 4 | 4 | 4 | |||||||||||||||||||
Severance and related costs | 25 | — | — | 12 | 37 | 9 | 4 | 5 | 4 | 22 | |||||||||||||||||||||
Constitution Pipeline project development costs | — | 8 | 11 | 9 | 28 | 2 | 6 | 4 | 4 | 16 | |||||||||||||||||||||
Potential rate refunds associated with rate case litigation | 15 | — | — | — | 15 | — | — | — | — | — | |||||||||||||||||||||
ACMP Merger and transition costs | 5 | — | — | — | 5 | — | 4 | 3 | 4 | 11 | |||||||||||||||||||||
Share of impairment at equity-method investments | — | — | 6 | 19 | 25 | — | — | 1 | — | 1 | |||||||||||||||||||||
Gain on asset retirement | — | — | — | (11 | ) | (11 | ) | — | — | (5 | ) | 5 | — | ||||||||||||||||||
Geismar Incident adjustments | — | — | — | (7 | ) | (7 | ) | (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 on early retirement of debt | — | — | — | — | — | (30 | ) | — | 3 | — | (27 | ) | |||||||||||||||||||
Gain on sale of RGP Splitter | — | — | — | — | — | — | (12 | ) | — | — | (12 | ) | |||||||||||||||||||
Settlement charge from pension early payout program | — | — | — | — | — | — | — | — | 35 | 35 | |||||||||||||||||||||
Regulatory charges resulting from Tax Reform | — | — | — | — | — | — | — | 713 | 713 | ||||||||||||||||||||||
Share of regulatory charges resulting from Tax Reform for equity-method investments | — | — | — | — | — | — | — | — | 11 | 11 | |||||||||||||||||||||
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 | 101 | 742 | 856 | |||||||||||||||||||
Other | |||||||||||||||||||||||||||||||
Impairment of certain assets | — | 406 | — | 8 | 414 | — | 23 | 68 | — | 91 | |||||||||||||||||||||
Loss related to Canada disposition | — | — | 33 | (1 | ) | 32 | 1 | — | — | 1 | 2 | ||||||||||||||||||||
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 | 5 | — | 9 | |||||||||||||||||||||
ACMP Merger and transition costs | 2 | — | — | — | 2 | — | — | — | — | — | |||||||||||||||||||||
Severance and related costs | 1 | — | — | 4 | 5 | — | — | — | — | — | |||||||||||||||||||||
Settlement charge from pension early payout program | — | — | — | — | — | — | — | — | 36 | 36 | |||||||||||||||||||||
Regulatory charges resulting from Tax Reform | — | — | — | — | — | — | — | — | 63 | 63 | |||||||||||||||||||||
Expenses associated with Financial Repositioning | — | — | — | — | — | 8 | — | — | — | 8 | |||||||||||||||||||||
Total Other adjustments | 33 | 430 | 70 | 18 | 551 | 10 | 26 | 73 | 100 | 209 | |||||||||||||||||||||
Adjustments included in Modified EBITDA | 138 | 891 | 189 | (104 | ) | 1,114 | (5 | ) | 54 | 174 | 842 | 1,065 | |||||||||||||||||||
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 | — | — | — | — | — | |||||||||||||||||||||
Accelerated depreciation by equity-method investments | — | — | — | — | — | — | — | — | 9 | 9 | |||||||||||||||||||||
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 | ) | (28 | ) | (199 | ) | (160 | ) | ||||||||||||
14 | (172 | ) | (68 | ) | 230 | 4 | (199 | ) | (10 | ) | (28 | ) | (190 | ) | (427 | ) | |||||||||||||||
Total adjustments | 152 | 719 | 121 | 126 | 1,118 | (204 | ) | 44 | 146 | 652 | 638 | ||||||||||||||||||||
Less tax effect for above items | (61 | ) | (202 | ) | (39 | ) | 19 | (283 | ) | 77 | (17 | ) | (55 | ) | (246 | ) | (241 | ) | |||||||||||||
Adjustments for tax-related items (1) | — | 34 | 5 | — | 39 | (127 | ) | — | — | (1,923 | ) | (2,050 | ) | ||||||||||||||||||
Adjusted income available to common stockholders | $ | 26 | $ | 146 | $ | 148 | $ | 130 | $ | 450 | $ | 119 | $ | 108 | $ | 124 | $ | 170 | $ | 521 | |||||||||||
Adjusted diluted earnings per common share (2) | $ | .03 | $ | .19 | $ | .20 | $ | .17 | $ | .60 | $ | .14 | $ | .13 | $ | .15 | $ | .20 | $ | .63 | |||||||||||
Weighted-average shares - diluted (thousands) | 751,040 | 751,297 | 751,858 | 752,818 | 751,761 | 826,476 | 828,575 | 829,368 | 829,607 | 828,518 | |||||||||||||||||||||
(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. 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) | |||||||||||||||||||||||||||||||
2016 | 2017 | ||||||||||||||||||||||||||||||
(Dollars in millions) | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | |||||||||||||||||||||
Net income (loss) | $ | (13 | ) | $ | (505 | ) | $ | 131 | $ | 37 | $ | (350 | ) | $ | 569 | $ | 193 | $ | 125 | $ | 1,622 | $ | 2,509 | ||||||||
Provision (benefit) for income taxes | 2 | (145 | ) | 69 | 49 | (25 | ) | 37 | 65 | 24 | (2,100 | ) | (1,974 | ) | |||||||||||||||||
Interest expense | 291 | 298 | 297 | 293 | 1,179 | 280 | 271 | 267 | 265 | 1,083 | |||||||||||||||||||||
Equity (earnings) losses | (97 | ) | (101 | ) | (104 | ) | (95 | ) | (397 | ) | (107 | ) | (125 | ) | (115 | ) | (87 | ) | (434 | ) | |||||||||||
Impairment of equity-method investments | 112 | — | — | 318 | 430 | — | — | — | — | — | |||||||||||||||||||||
Other investing (income) loss - net | (18 | ) | (18 | ) | (28 | ) | 1 | (63 | ) | (272 | ) | (2 | ) | (4 | ) | (4 | ) | (282 | ) | ||||||||||||
Proportional Modified EBITDA of equity-method investments | 189 | 191 | 194 | 180 | 754 | 194 | 215 | 202 | 184 | 795 | |||||||||||||||||||||
Depreciation and amortization expenses | 445 | 446 | 435 | 437 | 1,763 | 442 | 433 | 433 | 428 | 1,736 | |||||||||||||||||||||
Accretion expense associated with asset retirement obligations for nonregulated operations | 7 | 8 | 9 | 7 | 31 | 7 | 9 | 7 | 10 | 33 | |||||||||||||||||||||
Modified EBITDA | $ | 918 | $ | 174 | $ | 1,003 | $ | 1,227 | $ | 3,322 | $ | 1,150 | $ | 1,059 | $ | 939 | $ | 318 | $ | 3,466 | |||||||||||
Williams Partners | $ | 955 | $ | 604 | $ | 1,070 | $ | 1,235 | $ | 3,864 | $ | 1,132 | $ | 1,076 | $ | 1,000 | $ | 408 | $ | 3,616 | |||||||||||
Other | (37 | ) | (430 | ) | (67 | ) | (8 | ) | (542 | ) | 18 | (17 | ) | (61 | ) | (90 | ) | (150 | ) | ||||||||||||
Total Modified EBITDA | $ | 918 | $ | 174 | $ | 1,003 | $ | 1,227 | $ | 3,322 | $ | 1,150 | $ | 1,059 | $ | 939 | $ | 318 | $ | 3,466 | |||||||||||
Adjustments included in Modified EBITDA (1): | |||||||||||||||||||||||||||||||
Williams Partners | $ | 105 | $ | 461 | $ | 119 | $ | (122 | ) | $ | 563 | $ | (15 | ) | $ | 28 | $ | 101 | $ | 742 | $ | 856 | |||||||||
Other | 33 | 430 | 70 | 18 | 551 | 10 | 26 | 73 | 100 | 209 | |||||||||||||||||||||
Total Adjustments included in Modified EBITDA | $ | 138 | $ | 891 | $ | 189 | $ | (104 | ) | $ | 1,114 | $ | (5 | ) | $ | 54 | $ | 174 | $ | 842 | $ | 1,065 | |||||||||
Adjusted EBITDA: | |||||||||||||||||||||||||||||||
Williams Partners | $ | 1,060 | $ | 1,065 | $ | 1,189 | $ | 1,113 | $ | 4,427 | $ | 1,117 | $ | 1,104 | $ | 1,101 | $ | 1,150 | $ | 4,472 | |||||||||||
Other | (4 | ) | — | 3 | 10 | 9 | 28 | 9 | 12 | 10 | 59 | ||||||||||||||||||||
Total Adjusted EBITDA | $ | 1,056 | $ | 1,065 | $ | 1,192 | $ | 1,123 | $ | 4,436 | $ | 1,145 | $ | 1,113 | $ | 1,113 | $ | 1,160 | $ | 4,531 | |||||||||||
(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 | 3rd Qtr | 4th Qtr | Year | |||||||||||||||||||||
Distributions from WPZ (accrued / “as declared” basis) (1) | $ | 513 | $ | 513 | $ | 522 | $ | 597 | $ | 2,145 | $ | 421 | $ | 421 | $ | 421 | $ | 421 | $ | 1,684 | |||||||||||
Other Segment Adjusted EBITDA (2) | (14 | ) | (12 | ) | (13 | ) | (4 | ) | (43 | ) | 28 | 9 | 12 | 10 | 59 | ||||||||||||||||
Corporate interest | (66 | ) | (67 | ) | (68 | ) | (67 | ) | (268 | ) | (66 | ) | (65 | ) | (66 | ) | (64 | ) | (261 | ) | |||||||||||
Subtotal | 433 | 434 | 441 | 526 | 1,834 | 383 | 365 | 367 | 367 | 1,482 | |||||||||||||||||||||
WMB cash tax rate | 0 | % | -1 | % | 0 | % | 1 | % | 0 | % | 0 | % | 0 | % | 2 | % | 2 | % | 1 | % | |||||||||||
WMB cash taxes (excludes cash taxes paid by WPZ) | 2 | 3 | — | (7 | ) | (2 | ) | — | — | (7 | ) | (9 | ) | (16 | ) | ||||||||||||||||
Other Segment Maintenance Capital | (6 | ) | (4 | ) | — | (1 | ) | (11 | ) | (3 | ) | (5 | ) | (5 | ) | (9 | ) | (22 | ) | ||||||||||||
WMB cash available for dividends and other uses (3) | $ | 429 | $ | 433 | $ | 441 | $ | 518 | $ | 1,821 | $ | 380 | $ | 360 | $ | 355 | $ | 349 | $ | 1,444 | |||||||||||
WMB dividends paid | (480 | ) | (481 | ) | (150 | ) | (150 | ) | (1,261 | ) | (248 | ) | (248 | ) | (248 | ) | (248 | ) | (992 | ) | |||||||||||
Excess cash available after dividends | $ | (51 | ) | $ | (48 | ) | $ | 291 | $ | 368 | $ | 560 | $ | 132 | $ | 112 | $ | 107 | $ | 101 | $ | 452 | |||||||||
Dividend per share | $ | 0.6400 | $ | 0.6400 | $ | 0.2000 | $ | 0.2000 | $ | 1.6800 | $ | 0.3000 | $ | 0.3000 | $ | 0.3000 | $ | 0.3000 | $ | 1.2000 | |||||||||||
Coverage ratio (1)(4) | 0.89 | 0.90 | 2.94 | 3.45 | 1.44 | 1.53 | 1.45 | 1.43 | 1.41 | 1.46 | |||||||||||||||||||||
(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. | |||||||||||||||||||||||||||||||
Consolidated Statement of Operations | |||||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||||
2016 | 2017 | ||||||||||||||||||||||||||||||
(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 | |||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||
Service revenues | $ | 1,229 | $ | 1,202 | $ | 1,247 | $ | 1,493 | $ | 5,171 | $ | 1,261 | $ | 1,282 | $ | 1,310 | $ | 1,459 | $ | 5,312 | |||||||||||
Product sales | 431 | 534 | 658 | 705 | 2,328 | 727 | 642 | 581 | 769 | 2,719 | |||||||||||||||||||||
Total revenues | 1,660 | 1,736 | 1,905 | 2,198 | 7,499 | 1,988 | 1,924 | 1,891 | 2,228 | 8,031 | |||||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||||||||||
Product costs | 318 | 401 | 461 | 545 | 1,725 | 579 | 537 | 504 | 680 | 2,300 | |||||||||||||||||||||
Operating and maintenance expenses | 391 | 394 | 394 | 401 | 1,580 | 368 | 389 | 400 | 428 | 1,585 | |||||||||||||||||||||
Depreciation and amortization expenses | 445 | 446 | 435 | 437 | 1,763 | 442 | 433 | 433 | 428 | 1,736 | |||||||||||||||||||||
Selling, general, and administrative expenses | 221 | 158 | 177 | 167 | 723 | 161 | 153 | 138 | 156 | 608 | |||||||||||||||||||||
Impairment of certain assets | 8 | 802 | 1 | 62 | 873 | 1 | 25 | 1,210 | 12 | 1,248 | |||||||||||||||||||||
Gain on sale of Geismar Interest | — | — | — | — | — | — | — | (1,095 | ) | — | (1,095 | ) | |||||||||||||||||||
Regulatory charges resulting from Tax Reform | — | — | — | — | — | — | — | — | 674 | 674 | |||||||||||||||||||||
Other (income) expense - net | 15 | 23 | 92 | 5 | 135 | 4 | 6 | 24 | 37 | 71 | |||||||||||||||||||||
Total costs and expenses | 1,398 | 2,224 | 1,560 | 1,617 | 6,799 | 1,555 | 1,543 | 1,614 | 2,415 | 7,127 | |||||||||||||||||||||
Operating income (loss) | 262 | (488 | ) | 345 | 581 | 700 | 433 | 381 | 277 | (187 | ) | 904 | |||||||||||||||||||
Equity earnings (losses) | 97 | 101 | 104 | 95 | 397 | 107 | 125 | 115 | 87 | 434 | |||||||||||||||||||||
Impairment of equity-method investments | (112 | ) | — | — | (318 | ) | (430 | ) | — | — | — | — | — | ||||||||||||||||||
Other investing income (loss) - net | 18 | 18 | 28 | (1 | ) | 63 | 272 | 2 | 4 | 4 | 282 | ||||||||||||||||||||
Interest incurred | (306 | ) | (306 | ) | (304 | ) | (301 | ) | (1,217 | ) | (287 | ) | (280 | ) | (275 | ) | (274 | ) | (1,116 | ) | |||||||||||
Interest capitalized | 15 | 8 | 7 | 8 | 38 | 7 | 9 | 8 | 9 | 33 | |||||||||||||||||||||
Other income (expense) - net | 15 | 17 | 20 | 22 | 74 | 74 | 21 | 20 | (117 | ) | (2 | ) | |||||||||||||||||||
Income (loss) before income taxes | (11 | ) | (650 | ) | 200 | 86 | (375 | ) | 606 | 258 | 149 | (478 | ) | 535 | |||||||||||||||||
Provision (benefit) for income taxes | 2 | (145 | ) | 69 | 49 | (25 | ) | 37 | 65 | 24 | (2,100 | ) | (1,974 | ) | |||||||||||||||||
Net income (loss) | (13 | ) | (505 | ) | 131 | 37 | (350 | ) | 569 | 193 | 125 | 1,622 | 2,509 | ||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | 52 | (100 | ) | 70 | 52 | 74 | 196 | 112 | 92 | (65 | ) | 335 | |||||||||||||||||||
Net income (loss) attributable to The Williams Companies, Inc. | $ | (65 | ) | $ | (405 | ) | $ | 61 | $ | (15 | ) | $ | (424 | ) | $ | 373 | $ | 81 | $ | 33 | $ | 1,687 | $ | 2,174 | |||||||
Diluted earnings (loss) per common share: | |||||||||||||||||||||||||||||||
Net income (loss) (1) | $ | (.09 | ) | $ | (.54 | ) | $ | .08 | $ | (.02 | ) | $ | (.57 | ) | $ | .45 | $ | .10 | $ | .04 | $ | 2.03 | $ | 2.62 | |||||||
Weighted-average number of shares (thousands) | 750,322 | 750,649 | 751,858 | 750,954 | 750,673 | 826,476 | 828,575 | 829,368 | 829,607 | 828,518 | |||||||||||||||||||||
Common shares outstanding at end of period (thousands) | 750,484 | 750,599 | 750,757 | 750,934 | 750,934 | 826,239 | 826,398 | 826,723 | 826,836 | 826,836 | |||||||||||||||||||||
Market price per common share (end of period) | $ | 16.07 | $ | 21.63 | $ | 30.73 | $ | 31.14 | $ | 31.14 | $ | 29.59 | $ | 30.28 | $ | 30.01 | $ | 30.49 | $ | 30.49 | |||||||||||
Cash dividends declared per share | $ | .64 | $ | .64 | $ | .20 | $ | .20 | $ | 1.68 | $ | .30 | $ | .30 | $ | .30 | $ | .30 | $ | 1.20 | |||||||||||
(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) | |||||||||||||||||||||||||||||||
2016 | 2017 | ||||||||||||||||||||||||||||||
(Dollars in millions) | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | |||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||
Service revenues | $ | 1,226 | $ | 1,210 | $ | 1,252 | $ | 1,485 | $ | 5,173 | $ | 1,256 | $ | 1,277 | $ | 1,304 | $ | 1,455 | $ | 5,292 | |||||||||||
Product sales | 428 | 530 | 655 | 705 | 2,318 | 727 | 642 | 581 | 768 | 2,718 | |||||||||||||||||||||
Total revenues | 1,654 | 1,740 | 1,907 | 2,190 | 7,491 | 1,983 | 1,919 | 1,885 | 2,223 | 8,010 | |||||||||||||||||||||
Segment costs and expenses: | |||||||||||||||||||||||||||||||
Product costs | 317 | 403 | 463 | 545 | 1,728 | 579 | 537 | 504 | 680 | 2,300 | |||||||||||||||||||||
Operating and maintenance expenses | 374 | 379 | 377 | 386 | 1,516 | 353 | 376 | 387 | 414 | 1,530 | |||||||||||||||||||||
Selling, general, and administrative expenses | 181 | 139 | 147 | 163 | 630 | 156 | 154 | 140 | 160 | 610 | |||||||||||||||||||||
Gain on sale of Geismar Interest | — | — | — | — | — | — | — | (1,095 | ) | — | (1,095 | ) | |||||||||||||||||||
Impairment of certain assets | 6 | 396 | 1 | 54 | 457 | 1 | 2 | 1,142 | 11 | 1,156 | |||||||||||||||||||||
Regulatory charges resulting from Tax Reform | — | — | — | — | — | — | — | — | 713 | 713 | |||||||||||||||||||||
Other segment costs and expenses | 10 | 10 | 43 | (13 | ) | 50 | (44 | ) | (11 | ) | 9 | 21 | (25 | ) | |||||||||||||||||
Total segment costs and expenses | 888 | 1,327 | 1,031 | 1,135 | 4,381 | 1,045 | 1,058 | 1,087 | 1,999 | 5,189 | |||||||||||||||||||||
Proportional Modified EBITDA of equity-method investments | 189 | 191 | 194 | 180 | 754 | 194 | 215 | 202 | 184 | 795 | |||||||||||||||||||||
Modified EBITDA | 955 | 604 | 1,070 | 1,235 | 3,864 | 1,132 | 1,076 | 1,000 | 408 | 3,616 | |||||||||||||||||||||
Adjustments | 105 | 461 | 119 | (122 | ) | 563 | (15 | ) | 28 | 101 | 742 | 856 | |||||||||||||||||||
Adjusted EBITDA | $ | 1,060 | $ | 1,065 | $ | 1,189 | $ | 1,113 | $ | 4,427 | $ | 1,117 | $ | 1,104 | $ | 1,101 | $ | 1,150 | $ | 4,472 | |||||||||||
Statistics for Operated Assets | |||||||||||||||||||||||||||||||
Interstate Transmission | |||||||||||||||||||||||||||||||
Throughput (Tbtu) | 1,132.8 | 983.9 | 1,040.0 | 1,073.1 | 4,229.8 | 1,158.1 | 1,053.0 | 1,094.9 | 1,226.6 | 4,532.6 | |||||||||||||||||||||
Avg. daily transportation volumes (Tbtu) | 12.5 | 10.8 | 11.3 | 11.7 | 11.6 | 12.8 | 11.6 | 11.9 | 13.4 | 12.5 | |||||||||||||||||||||
Avg. daily firm reserved capacity (Tbtu) | 15.0 | 14.5 | 14.6 | 14.7 | 14.7 | 15.8 | 16.2 | 17.1 | 17.9 | 16.8 | |||||||||||||||||||||
Gathering and Processing | |||||||||||||||||||||||||||||||
Gathering volumes (Bcf per day) - Consolidated (1) | 8.24 | 8.13 | 8.39 | 8.21 | 8.25 | 7.86 | 7.98 | 8.20 | 8.54 | 8.15 | |||||||||||||||||||||
Gathering volumes (Bcf per day) - Non-consolidated (2) | 3.74 | 3.69 | 3.67 | 3.80 | 3.73 | 4.10 | 4.12 | 3.87 | 3.89 | 3.99 | |||||||||||||||||||||
Plant inlet natural gas volumes (Bcf per day) - Consolidated (1) | 3.46 | 3.40 | 3.66 | 3.47 | 3.50 | 2.92 | 2.98 | 3.08 | 3.22 | 3.05 | |||||||||||||||||||||
Plant inlet natural gas volumes (Bcf per day) - Non-consolidated (2) | 0.56 | 0.54 | 0.60 | 0.60 | 0.57 | 0.54 | 0.53 | 0.39 | 0.27 | 0.43 | |||||||||||||||||||||
Consolidated (1) | |||||||||||||||||||||||||||||||
Ethane margin ($/gallon) | $ | .08 | $ | .02 | $ | .06 | $ | — | $ | .04 | $ | .03 | $ | .01 | $ | .03 | $ | .03 | $ | .03 | |||||||||||
Non-ethane margin ($/gallon) | $ | .20 | $ | .36 | $ | .25 | $ | .39 | $ | .29 | $ | .45 | $ | .41 | $ | .45 | $ | .63 | $ | .48 | |||||||||||
NGL margin ($/gallon) | $ | .15 | $ | .20 | $ | .18 | $ | .27 | $ | .20 | $ | .33 | $ | .25 | $ | .29 | $ | .41 | $ | .32 | |||||||||||
Ethane equity sales (Mbbls/d) | 22 | 26 | 23 | 15 | 22 | 11 | 17 | 17 | 15 | 15 | |||||||||||||||||||||
Non-ethane equity sales (Mbbls/d) | 35 | 29 | 40 | 34 | 34 | 29 | 26 | 25 | 25 | 26 | |||||||||||||||||||||
NGL equity sales (Mbbls/d) | 57 | 55 | 63 | 49 | 56 | 40 | 43 | 42 | 40 | 41 | |||||||||||||||||||||
Ethane production (Mbbls/d) | 49 | 61 | 56 | 48 | 54 | 40 | 53 | 49 | 62 | 51 | |||||||||||||||||||||
Non-ethane production (Mbbls/d) | 103 | 100 | 120 | 107 | 108 | 90 | 93 | 99 | 104 | 97 | |||||||||||||||||||||
NGL production (Mbbls/d) | 152 | 161 | 176 | 155 | 162 | 130 | 146 | 148 | 166 | 148 | |||||||||||||||||||||
Non-consolidated (2) | |||||||||||||||||||||||||||||||
NGL equity sales (Mbbls/d) | 5 | 5 | 5 | 5 | 5 | 5 | 4 | 5 | 4 | 5 | |||||||||||||||||||||
NGL production (Mbbls/d) | 17 | 19 | 21 | 21 | 20 | 21 | 22 | 22 | 19 | 21 | |||||||||||||||||||||
Petrochemical Services | |||||||||||||||||||||||||||||||
Geismar ethylene sales volumes (million lbs) | 423 | 391 | 419 | 405 | 1,638 | 266 | 300 | — | — | 566 | |||||||||||||||||||||
Geismar ethylene margin ($/lb) (3) | $ | .13 | $ | .15 | $ | .21 | $ | .15 | $ | .16 | $ | .19 | $ | .13 | $ | — | $ | — | $ | .16 | |||||||||||
Canadian propylene sales volumes (million lbs) | 33 | 8 | 46 | — | 87 | — | — | — | — | — | |||||||||||||||||||||
Canadian alky feedstock sales volumes (million gallons) | 7 | 2 | 6 | — | 15 | — | — | — | — | — | |||||||||||||||||||||
Overland Pipeline Company (2) | |||||||||||||||||||||||||||||||
NGL transportation volumes (Mbbls) | 16,814 | 18,410 | 18,535 | 18,078 | 71,837 | 18,338 | 20,558 | 21,015 | 21,425 | 81,336 | |||||||||||||||||||||
(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. | |||||||||||||||||||||||||||||||
(3) Ethylene margin and ethylene margin per pound are calculated using financial results determined in accordance with GAAP, which include realized ethylene sales prices and ethylene COGS. Realized sales and COGS per unit metrics may vary from publicly quoted market indices or spot prices due to various factors, including, but not limited to, basis differentials, transportation costs, contract provisions, and inventory accounting methods. | |||||||||||||||||||||||||||||||
Capital Expenditures and Investments | |||||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||||
2016 | 2017 | ||||||||||||||||||||||||||||||
(Dollars in millions) | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | |||||||||||||||||||||
Capital expenditures: | |||||||||||||||||||||||||||||||
Williams Partners | $ | 463 | $ | 518 | $ | 491 | $ | 472 | $ | 1,944 | $ | 509 | $ | 540 | $ | 638 | $ | 687 | $ | 2,374 | |||||||||||
Other | 50 | 38 | 17 | 2 | 107 | 2 | 5 | 6 | 12 | 25 | |||||||||||||||||||||
Total(1) | $ | 513 | $ | 556 | $ | 508 | $ | 474 | $ | 2,051 | $ | 511 | $ | 545 | $ | 644 | $ | 699 | $ | 2,399 | |||||||||||
Purchases of investments: | |||||||||||||||||||||||||||||||
Williams Partners | $ | 63 | $ | 59 | $ | 10 | $ | 45 | $ | 177 | $ | 52 | $ | 27 | $ | 24 | $ | 29 | $ | 132 | |||||||||||
Other | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||
Total | $ | 63 | $ | 59 | $ | 10 | $ | 45 | $ | 177 | $ | 52 | $ | 27 | $ | 24 | $ | 29 | $ | 132 | |||||||||||
Summary: | |||||||||||||||||||||||||||||||
Williams Partners | $ | 526 | $ | 577 | $ | 501 | $ | 517 | $ | 2,121 | $ | 561 | $ | 567 | $ | 662 | $ | 716 | $ | 2,506 | |||||||||||
Other | 50 | 38 | 17 | 2 | 107 | 2 | 5 | 6 | 12 | 25 | |||||||||||||||||||||
Total | $ | 576 | $ | 615 | $ | 518 | $ | 519 | $ | 2,228 | $ | 563 | $ | 572 | $ | 668 | $ | 728 | $ | 2,531 | |||||||||||
Capital expenditures incurred and purchases of investments: | |||||||||||||||||||||||||||||||
Increases to property, plant, and equipment | $ | 525 | $ | 495 | $ | 448 | $ | 444 | $ | 1,912 | $ | 569 | $ | 591 | $ | 666 | $ | 836 | $ | 2,662 | |||||||||||
Purchases of investments | 63 | 59 | 10 | 45 | 177 | 52 | 27 | 24 | 29 | 132 | |||||||||||||||||||||
Total | $ | 588 | $ | 554 | $ | 458 | $ | 489 | $ | 2,089 | $ | 621 | $ | 618 | $ | 690 | $ | 865 | $ | 2,794 | |||||||||||
(1) Increases to property, plant, and equipment | $ | 525 | $ | 495 | $ | 448 | $ | 444 | $ | 1,912 | $ | 569 | $ | 591 | $ | 666 | $ | 836 | $ | 2,662 | |||||||||||
Changes in related accounts payable and accrued liabilities | (12 | ) | 61 | 60 | 30 | 139 | (58 | ) | (46 | ) | (22 | ) | (137 | ) | (263 | ) | |||||||||||||||
Capital expenditures | $ | 513 | $ | 556 | $ | 508 | $ | 474 | $ | 2,051 | $ | 511 | $ | 545 | $ | 644 | $ | 699 | $ | 2,399 | |||||||||||
Depreciation and Amortization and Other Selected Financial Data | |||||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||||
2016 | 2017 | ||||||||||||||||||||||||||||||
(Dollars in millions) | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | |||||||||||||||||||||
Depreciation and amortization: | |||||||||||||||||||||||||||||||
Williams Partners | $ | 435 | $ | 432 | $ | 426 | $ | 427 | $ | 1,720 | $ | 433 | $ | 423 | $ | 424 | $ | 420 | $ | 1,700 | |||||||||||
Other | 10 | 14 | 9 | 10 | 43 | 9 | 10 | 9 | 8 | 36 | |||||||||||||||||||||
Total | $ | 445 | $ | 446 | $ | 435 | $ | 437 | $ | 1,763 | $ | 442 | $ | 433 | $ | 433 | $ | 428 | $ | 1,736 | |||||||||||
Other selected financial data: | |||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 164 | $ | 135 | $ | 77 | $ | 170 | $ | 639 | $ | 1,918 | $ | 1,172 | $ | 899 | |||||||||||||||
Total assets | $ | 48,807 | $ | 48,124 | $ | 47,288 | $ | 46,835 | $ | 47,512 | $ | 48,770 | $ | 46,120 | $ | 46,352 | |||||||||||||||
Capital structure: | |||||||||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||||
Commercial paper | $ | 135 | $ | 196 | $ | 2 | $ | 93 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Current | $ | 976 | $ | 786 | $ | 785 | $ | 785 | $ | — | $ | 1,951 | $ | 502 | $ | 501 | |||||||||||||||
Noncurrent | $ | 23,701 | $ | 24,394 | $ | 23,932 | $ | 22,624 | $ | 21,825 | $ | 21,325 | $ | 20,567 | $ | 20,434 | |||||||||||||||
Stockholders’ equity | $ | 5,691 | $ | 4,830 | $ | 4,860 | $ | 4,643 | $ | 8,444 | $ | 8,306 | $ | 8,109 | $ | 9,656 | |||||||||||||||
Debt to debt-plus-stockholders’ equity ratio | 81.3 | % | 84.0 | % | 83.6 | % | 83.5 | % | 72.1 | % | 73.7 | % | 72.2 | % | 68.4 | % | |||||||||||||||
Cash distributions received from interests in: | |||||||||||||||||||||||||||||||
Williams Partners L.P. | |||||||||||||||||||||||||||||||
General partner | $ | 15 | $ | 216 | $ | 224 | $ | 78 | $ | 533 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Limited partner | 289 | 288 | 289 | 295 | 1,161 | 597 | 421 | 422 | 421 | 1,861 | |||||||||||||||||||||
$ | 304 | $ | 504 | $ | 513 | $ | 373 | $ | 1,694 | $ | 597 | $ | 421 | $ | 422 | $ | 421 | $ | 1,861 | ||||||||||||
WMB Dividend Coverage Ratio | 2018 | ||
(Dollars in billions, except per share amounts) | Guidance | ||
Distributions from WPZ (accrued / “as declared” basis) | $ | 1.800 | |
Other Segment Adjusted EBITDA | 0.025 | ||
Corporate interest | (0.250 | ) | |
Subtotal | $ | 1.575 | |
WMB cash tax rate | 0.0 | % | |
WMB cash taxes (excludes cash taxes paid by WPZ) | — | ||
Other Segment Maintenance Capital | (0.050 | ) | |
WMB cash available for dividends and other uses | $ | 1.525 | |
WMB dividends paid | (1.125 | ) | |
Excess cash available after dividends | $ | 0.400 | |
Dividend per share | $ | 1.36 | |
Coverage ratio (1) | 1.36 | x | |
Memo: | |||
WMB Economic Interest in WPZ Cash Coverage - Guidance Midpoint (2) | $ | 0.445 | |
WMB cash available for dividends and other uses | 1.525 | ||
WMB Economic Distributable Cash Flow (3) | $ | 1.970 | |
Economic coverage ratio (4) | 1.75 | x | |
Notes: | |||
WMB does not expect to be a U.S. federal income cash taxpayer through at least 2021, excluding taxes on any potential asset monetizations. | |||
(1) WMB cash available for dividends and other uses / WMB dividends paid | |||
(2) WMB pro rata share (~74%) of WPZ Distributable cash flow in excess of Total cash distributed | |||
(3) WMB Economic Interest in WPZ Cash Coverage + WMB cash available for dividends and other uses | |||
(4) WMB Economic Distributable Cash Flow / WMB dividends paid | |||