Summary
Williams Companies, Inc. (WMB) reported mixed financial results for the second quarter and first half of 2009, heavily impacted by the prevailing unfavorable economic and energy commodity price environment. Revenues significantly declined year-over-year due to lower realized prices across segments, particularly in Gas Marketing and Midstream. Despite cost reductions, operating income and net income attributable to the company saw substantial decreases, with a net loss reported for the six months ended June 30, 2009. The company also disclosed the expropriation of its Venezuela operations by the government, classifying them as discontinued operations and recording significant impairment charges. Management is focused on cost control, maintaining liquidity, and strategic investments in growth areas like the Marcellus Shale. Liquidity remains a key focus, with the company expecting to maintain at least $1 billion in cash and unused credit facilities. Capital expenditures were reduced compared to the prior year, with a significant portion designated as non-discretionary. Despite the challenging environment and ongoing legal and environmental matters, management believes the company is positioned to manage its obligations and capitalize on future opportunities when economic conditions improve.
Financial Highlights
44 data points| Revenue | $1.91B |
| SG&A Expenses | $129.00M |
| Operating Income | $351.00M |
| Net Income | $142.00M |
| EPS (Basic) | $0.24 |
| EPS (Diluted) | $0.24 |
| Shares Outstanding (Basic) | 580.73M |
| Shares Outstanding (Diluted) | 588.78M |
Key Highlights
- 1Significant year-over-year decline in total revenues (-48% for Q2, -44% for H1) driven by lower commodity prices and reduced marketing activities.
- 2Net loss attributable to The Williams Companies, Inc. of $(30) million for the six months ended June 30, 2009, compared to a net income of $1,039 million in the prior year period.
- 3Expropriation of Venezuela operations by the government resulted in classification as discontinued operations and significant impairment charges totaling $211 million.
- 4Focus on cost containment and maintaining liquidity, with a projected minimum of $1 billion in cash and unused credit facilities.
- 5Reduction in capital expenditures, with a focus on completing major projects and maintaining a reduced level of natural gas production development.
- 6Strategic investments in growth areas such as the Marcellus Shale through joint ventures and development agreements.
- 7Continued exposure to legal and environmental matters, with ongoing proceedings and accruals for potential liabilities, though management believes the overall impact will not be material.