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10-QPeriod: Q1 FY2014

WILLIAMS COMPANIES, INC. Quarterly Report for Q1 Ended Mar 31, 2014

Filed May 1, 2014For Securities:WMB

Summary

Williams Companies, Inc. (WMB) reported for the first quarter ended March 31, 2014, total revenues of $1.75 billion, a slight decrease from $1.81 billion in the prior year's comparable period. Net income attributable to The Williams Companies, Inc. was $140 million, or $0.20 per diluted share, compared to $161 million, or $0.23 per diluted share, in Q1 2013. The decrease in net income was primarily driven by equity losses related to the Bluegrass Pipeline project and a reduction in NGL margins, partially offset by insurance recoveries from the Geismar Incident and increased service revenues from the Williams Partners segment. Cash flow from operations remained strong at $446 million, though lower than the prior year's $495 million. The company significantly increased its investing activities, with capital expenditures totaling $793 million, a notable increase from $713 million in Q1 2013, largely in support of its growth strategy. Financing activities saw substantial proceeds from debt issuance, particularly by Williams Partners (WPZ), contributing to overall liquidity. The company also reaffirmed its commitment to returning capital to shareholders, increasing its quarterly dividend by 19% year-over-year and expecting further increases in 2014 and 2015.

Financial Statements
Beta
Revenue$1.75B
SG&A Expenses$150.00M
Operating Expenses$1.33B
Operating Income$420.00M
Interest Expense$140.00M
Net Income$140.00M
EPS (Basic)$0.20
EPS (Diluted)$0.20
Shares Outstanding (Basic)684.77M
Shares Outstanding (Diluted)688.90M

Key Highlights

  • 1Total revenues decreased slightly to $1.75 billion from $1.81 billion year-over-year.
  • 2Net income attributable to The Williams Companies, Inc. declined to $140 million ($0.20/share) from $161 million ($0.23/share) in the prior year's quarter.
  • 3Operating cash flow was $446 million, down from $495 million in Q1 2013.
  • 4Capital expenditures increased to $793 million from $713 million in Q1 2013, reflecting continued investment in growth projects.
  • 5Williams Partners (WPZ) issued $1.5 billion in senior unsecured notes to fund capital expenditures and general partnership purposes.
  • 6The company recognized $125 million in insurance recoveries related to the Geismar Incident in the first quarter of 2014.
  • 7Equity losses of $67 million were recognized related to the Bluegrass Pipeline project after management decided to discontinue further funding.
  • 8The quarterly dividend was increased by 19% year-over-year to $0.4025 per share.

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