Summary
Williams Companies, Inc. (WMB) reported its second-quarter 2015 results, showing a modest increase in net income attributable to common stockholders to $114 million from $103 million in the prior year period. Total revenues rose to $1.84 billion from $1.68 billion year-over-year, driven primarily by strong growth in service revenues, which were bolstered by acquisitions and the successful commissioning of new infrastructure projects. Despite an increase in revenues, the company faced headwinds from lower product sales and higher operating and maintenance expenses. However, these were partially offset by a significant increase in net insurance recoveries related to the Geismar Incident. Management highlighted ongoing strategic reviews, including the pending acquisition of publicly held WPZ units, and noted continued investments in expansion projects across its Williams Partners and Williams NGL & Petchem Services segments. Investors should monitor the progress and outcome of these strategic initiatives and capital expenditures.
Financial Highlights
51 data points| Revenue | $1.84B |
| SG&A Expenses | $174.00M |
| Operating Expenses | $1.45B |
| Operating Income | $392.00M |
| Interest Expense | $262.00M |
| Net Income | $114.00M |
| EPS (Basic) | $0.15 |
| EPS (Diluted) | $0.15 |
| Shares Outstanding (Basic) | 749.25M |
| Shares Outstanding (Diluted) | 752.77M |
Key Highlights
- 1Net income attributable to common stockholders increased to $114 million for Q2 2015 from $103 million in Q2 2014.
- 2Total revenues grew 10% to $1.84 billion in Q2 2015, driven by a 50% increase in service revenues, largely due to the ACMP acquisition and new project completions.
- 3Product sales decreased by 30% to $598 million, primarily due to lower marketing sales driven by reduced commodity prices.
- 4Operating and maintenance expenses increased by 42% to $437 million, reflecting new expenses from acquired operations, the return of the Geismar plant, and planned maintenance.
- 5Net insurance recoveries from the Geismar Incident significantly improved, reaching $126 million in Q2 2015 compared to $42 million in Q2 2014.
- 6The company is actively exploring a range of strategic alternatives, including a potential merger or sale, following the rejection of an unsolicited acquisition proposal.
- 7Williams Companies continues to invest heavily in expansion projects, with planned consolidated capital expenditures for 2015 between $3.96 billion and $4.59 billion.