Summary
Williams Companies, Inc. (WMB) reported its financial results for the quarter and six months ended June 30, 2011. The company saw an increase in revenues driven primarily by higher energy commodity prices and volumes in its Williams Partners and Midstream Canada & Olefins segments. The Exploration & Production segment experienced mixed results with higher prices offset by lower gas management revenues. A significant strategic initiative underway is the planned separation of the company's exploration and production business through an IPO of WPX Energy, Inc. (WPX), with a subsequent spin-off to shareholders. This plan is progressing, with WPX filing registration statements. Management highlighted that the absence of substantial restructuring costs incurred in the prior year, coupled with a favorable tax benefit, significantly improved the net income from continuing operations year-over-year for the six-month period. Liquidity remains robust, with substantial cash and available credit facilities. The company reaffirmed its commitment to its business plan and value creation through disciplined investment, while acknowledging risks such as volatile commodity prices and potential delays in the WPX separation. Investors should monitor the progress of the WPX separation and the ongoing capital expenditure plans, particularly in key growth areas like the Marcellus Shale and the Gulf of Mexico.
Financial Highlights
46 data points| Revenue | $1.98B |
| SG&A Expenses | $78.00M |
| Operating Expenses | $1.48B |
| Operating Income | $460.00M |
| Net Income | $227.00M |
| EPS (Basic) | $0.39 |
| EPS (Diluted) | $0.38 |
| Shares Outstanding (Basic) | 588.31M |
| Shares Outstanding (Diluted) | 597.63M |
Key Highlights
- 1Total revenues increased to $2.67 billion for Q2 2011 and $5.24 billion for the six months ended June 30, 2011, compared to $2.29 billion and $4.88 billion in the prior year periods, respectively, driven by higher commodity prices and volumes, particularly in the Williams Partners and Midstream Canada & Olefins segments.
- 2The company is actively pursuing the separation of its exploration and production business through the initial public offering (IPO) of WPX Energy, Inc. (WPX), with registration statements filed.
- 3Income from continuing operations attributable to The Williams Companies, Inc. improved significantly, with a favorable change of $566 million for the six months ended June 30, 2011, largely due to the absence of significant 2010 restructuring costs ($606 million in early debt retirement costs) and a $124 million tax benefit recognized in Q1 2011.
- 4Net cash provided by operating activities increased by $387 million for the six months ended June 30, 2011, compared to the prior year, primarily due to improved operating results and favorable working capital changes.
- 5Consolidated liquidity remains strong, with $1.17 billion in cash and cash equivalents and $2.55 billion in available credit capacity as of June 30, 2011.
- 6Capital expenditures for the six months totaled $1.09 billion, with significant investments planned for major expansion projects across various segments, including the Marcellus Shale and Gulf of Mexico.
- 7The company increased its regular quarterly dividend to $0.20 per share in April 2011, a 60% increase from the previous dividend of $0.125 per share.