Summary
Williams Companies, Inc. (WMB) reported its third-quarter 2009 financial results, showing a significant year-over-year decrease in total revenues for both the three and nine months ended September 30, 2009. This decline was primarily driven by unfavorable energy commodity prices and a challenging economic environment. Despite the revenue drop, the company maintained a strong liquidity position with substantial cash and cash equivalents and available credit facilities. The company experienced a notable decline in operating income, largely due to lower commodity prices and the absence of certain one-time gains that benefited the prior year's results. Additionally, WMB reported discontinued operations related to its Venezuela assets, which were expropriated by the government. The company highlighted ongoing efforts to manage risks through hedging strategies, disciplined investment, and a focus on operational efficiency.
Financial Highlights
44 data points| Revenue | $2.10B |
| SG&A Expenses | $126.00M |
| Operating Income | $394.00M |
| Net Income | $143.00M |
| EPS (Basic) | $0.24 |
| EPS (Diluted) | $0.24 |
| Shares Outstanding (Basic) | 583.10M |
| Shares Outstanding (Diluted) | 590.06M |
Key Highlights
- 1Total revenues decreased significantly by 34% for the three months and 41% for the nine months ended September 30, 2009, compared to the prior year, primarily due to lower commodity prices.
- 2Operating income saw a substantial decrease, reflecting the challenging commodity price environment and the absence of prior-year gains.
- 3The company reported income (loss) from discontinued operations, primarily related to the expropriation of its Venezuela assets.
- 4Williams Companies maintained a strong liquidity position, with $1.64 billion in cash and cash equivalents and $3.74 billion in available capacity under revolving credit facilities as of September 30, 2009.
- 5Capital expenditures were reduced significantly, with $1.83 billion incurred in the nine months ended September 30, 2009, down from $2.59 billion in the prior year.
- 6The company issued $600 million in senior unsecured notes in March 2009, with an exchange completed in August 2009.
- 7Exploration & Production segment revenues and profit were down significantly due to lower realized prices, despite higher production volumes.