Summary
Williams Companies, Inc. (WMB) reported its third-quarter 2012 financial results, showing a decrease in net income attributable to the company from $272 million in Q3 2011 to $155 million in Q3 2012. This decline was primarily driven by lower revenues from its Williams Partners segment, influenced by reduced NGL production and marketing margins, as well as increased operating costs. The company also experienced a negative impact from the absence of significant tax benefits recorded in the prior year. Despite the quarterly decline, WMB's nine-month performance showed a reduction in net income from $820 million to $710 million, also impacted by lower revenues and the absence of prior-year tax benefits. The company highlighted strategic acquisitions in the Marcellus Shale region to bolster its Williams Partners segment and continued investment in capital projects, including pipeline expansions and new facilities. WMB also reaffirmed its commitment to dividend growth, expecting a 55% increase in total 2012 dividends compared to 2011, signaling confidence in its operational strategy and financial outlook.
Financial Highlights
51 data points| Revenue | $1.75B |
| Cost of Revenue | $771.00M |
| Gross Profit | $981.00M |
| SG&A Expenses | $137.00M |
| Operating Expenses | $1.38B |
| Operating Income | $373.00M |
| Net Income | $155.00M |
| EPS (Basic) | $0.25 |
| EPS (Diluted) | $0.25 |
| Shares Outstanding (Basic) | 626.81M |
| Shares Outstanding (Diluted) | 632.02M |
Key Highlights
- 1Net income attributable to The Williams Companies, Inc. decreased from $272 million in Q3 2011 to $155 million in Q3 2012, driven by lower revenues and higher costs.
- 2Total revenues for the three months ended September 30, 2012, were $1.75 billion, down from $1.97 billion in the same period last year.
- 3The company completed significant acquisitions in the Marcellus Shale region through its Williams Partners L.P. (WPZ) master limited partnership, including the Laser and Caiman acquisitions, to expand its midstream operations.
- 4Williams Companies announced plans for continued dividend growth, expecting total 2012 dividends to be $1.20 per share, a 55% increase over 2011.
- 5Capital expenditures for the nine months ended September 30, 2012, were $1.65 billion, reflecting ongoing investments in expansion projects.
- 6The company continues to focus on transitioning its business mix towards more fee-based revenues to reduce exposure to commodity price volatility.
- 7Net cash provided by operating activities decreased significantly to $1.29 billion for the nine months ended September 30, 2012, from $2.35 billion in the prior year, largely due to the absence of cash flows from discontinued operations and lower operating results.