Summary
Williams Companies, Inc. (WMB) reported a significant net loss for the nine months ended September 30, 2010, largely driven by substantial impairment charges totaling $1.681 billion, including a $1 billion goodwill impairment in its Exploration & Production segment due to declining natural gas prices. The company also incurred $606 million in early debt retirement costs associated with its February 2010 strategic restructuring. This restructuring involved contributing key midstream and gas pipeline assets to its master limited partnership, Williams Partners L.P. (WPZ), aiming to lower capital costs and enhance access to capital markets. Despite the significant losses, the company highlighted positive trends such as improved energy commodity prices in the first nine months of 2010 compared to the prior year, and a $183 million increase in net cash provided by operating activities. The Williams Partners segment showed revenue growth, and recent strategic initiatives like the merger with WMZ and the acquisition of additional interest in OPPL position the company for future growth. Management expressed confidence in maintaining sufficient liquidity and meeting financial obligations.
Financial Highlights
44 data points| Revenue | $2.30B |
| SG&A Expenses | $122.00M |
| Operating Income | -$1.29B |
| Net Income | -$1.26B |
| EPS (Basic) | $-2.16 |
| EPS (Diluted) | $-2.16 |
| Shares Outstanding (Basic) | 584.74M |
| Shares Outstanding (Diluted) | 584.74M |
Key Highlights
- 1Significant Net Loss: WMB reported a net loss of $1.226 billion for the three months ended September 30, 2010, and $1.271 billion for the nine months ended September 30, 2010.
- 2Substantial Impairments: The company recorded $1.681 billion in impairments, including a $1 billion goodwill impairment and $678 million in impairments of producing properties and acquired unproved reserves in the Exploration & Production segment due to declining natural gas prices.
- 3Strategic Restructuring: Completed a significant restructuring in February 2010, contributing midstream and gas pipeline businesses to Williams Partners L.P. (WPZ) to improve capital structure and access.
- 4Early Debt Retirement Costs: Incurred $606 million in costs related to early debt retirement as part of the restructuring.
- 5Increased Operating Cash Flow: Net cash provided by operating activities increased by $183 million for the nine months ended September 30, 2010, compared to the same period in 2009.
- 6Williams Partners Performance: The Williams Partners segment showed revenue growth and completed strategic transactions including a merger with WMZ and increased ownership in OPPL.
- 7Future Growth Initiatives: The company is pursuing growth opportunities and has significant capital expenditure plans for pipeline expansions and asset acquisitions.