Summary
Williams Companies, Inc. (WMB) reported its 2009 annual results, highlighting significant operational and strategic activities. The company focused on natural gas exploration, production, gathering, processing, and transportation, with operations concentrated in key regions of the U.S. and Canada. A major strategic restructuring was completed in February 2010, involving the contribution of a substantial majority of domestic midstream and gas pipeline businesses into Williams Partners L.P. (WPZ). This move aimed to lower capital costs, improve access to capital markets, and support future growth initiatives. The company's financial performance in 2009 was impacted by the challenging economic environment and lower energy commodity prices, leading to decreased revenues and operating income compared to 2008. Despite the economic headwinds, Williams continued to invest in its core assets, particularly in the Exploration & Production segment, and maintained a strong liquidity position throughout the year, underscoring its resilience and strategic focus on long-term value creation.
Financial Highlights
48 data points| Revenue | $5.28B |
| SG&A Expenses | $330.00M |
| Operating Income | $1.11B |
| Interest Expense | $592.00M |
| Net Income | $285.00M |
| EPS (Basic) | $0.49 |
| EPS (Diluted) | $0.49 |
| Shares Outstanding (Basic) | 581.67M |
| Shares Outstanding (Diluted) | 585.96M |
Key Highlights
- 1Completed a significant strategic restructuring in February 2010 by contributing major midstream and gas pipeline assets to Williams Partners L.P. (WPZ) to enhance capital access and reduce costs.
- 2Exploration & Production segment faced lower revenues and profits due to a 35% decrease in net realized average prices, although production volumes increased by 8%.
- 3Gas Pipeline segment saw slightly decreased revenues and profits, with a focus on completing and advancing several expansion projects across its Transco and Northwest Pipeline systems.
- 4Midstream segment experienced a substantial revenue decline (33%) primarily due to lower NGL and olefin prices and volumes, but margins improved sequentially through the year.
- 5Gas Marketing Services segment reported an unfavorable operating result with lower realized margins on storage contracts, impacted by broader market conditions.
- 6The company maintained liquidity, with approximately $1.9 billion in cash and cash equivalents and $2.1 billion in available credit capacity at year-end 2009.
- 7Adopted new SEC oil and gas reporting rules, which influenced proved reserve estimations by utilizing a 12-month average price and revised guidance for proved undeveloped reserves.