Summary
Williams Companies, Inc. (WMB) reported strong financial performance for the nine months ended September 30, 2014, driven by a significant non-cash gain from remeasuring its equity-method investment in Access Midstream Partners, L.P. (ACMP) to fair value following the acquisition of controlling interest. This acquisition boosted revenues and expanded the company's midstream operations in key shale plays. While operating income saw a slight decrease due to lower NGL and olefin margins, the overall net income attributable to The Williams Companies, Inc. surged, reflecting the substantial gain and increased service revenues from its Williams Partners segment. The company also continued its focus on dividend growth and capital investments to support its strategy of connecting North American resource plays to growing markets.
Financial Highlights
51 data points| Revenue | $2.07B |
| SG&A Expenses | $171.00M |
| Operating Expenses | $1.76B |
| Operating Income | $307.00M |
| Interest Expense | $210.00M |
| Net Income | $1.68B |
| EPS (Basic) | $2.24 |
| EPS (Diluted) | $2.22 |
| Shares Outstanding (Basic) | 747.41M |
| Shares Outstanding (Diluted) | 752.06M |
Key Highlights
- 1Reported a significant non-cash gain of $2.5 billion in the third quarter of 2014 from remeasuring its equity-method investment in ACMP to fair value after acquiring control, which substantially boosted net income.
- 2Total revenues increased to $5.5 billion for the nine months ended September 30, 2014, up from $5.2 billion in the prior year, primarily driven by higher service revenues.
- 3The company completed the acquisition of a controlling interest in ACMP on July 1, 2014, enhancing its position in the Marcellus and Utica shale plays and diversifying its midstream business.
- 4Declared cash dividends per common share increased to $0.56 for the third quarter of 2014, up from $0.36625 in the prior year, with expectations of continued quarterly increases.
- 5Significant capital expenditures of approximately $10.9 billion are planned for 2014, including the ACMP acquisition and ongoing expansion projects.
- 6Williams Partners reported strong service revenues and segment profit, driven by gathering, processing, and transportation services, while facing headwinds from lower olefin margins.
- 7The Geismar incident resulted in $175 million of insurance recoveries in the first nine months of 2014, offsetting some of the financial impact, though total losses are expected to exceed insurance policy limits.