Summary
Williams Companies, Inc. (WMB) reported mixed financial results for the nine months ended September 30, 2016. While total revenues remained largely stable year-over-year, the company experienced a significant net loss attributable to The Williams Companies, Inc. of $409 million for the nine-month period, a substantial decrease from the $144 million net income in the prior year. This decline was driven by substantial impairment charges on long-lived assets, particularly related to the sale of Canadian operations, and significant litigation expenses. Despite these challenges, the company's core operations within its Williams Partners segment showed resilience, with Modified EBITDA increasing slightly for the nine months, benefiting from higher olefins margins and increased service revenues from expansion projects. Financially, the company saw a decrease in its total assets and equity, reflecting the ongoing divestitures and impairments. The company also reduced its regular quarterly dividend significantly to $0.20 per share, aiming to reinvest more capital into Williams Partners. The termination of the proposed merger with Energy Transfer Equity (ETE) was a major event, leading to litigation and a focus on seeking monetary damages from ETE, while WMB recommits to its core natural gas infrastructure strategy.
Financial Highlights
49 data points| Revenue | $1.91B |
| SG&A Expenses | $177.00M |
| Operating Expenses | $1.56B |
| Operating Income | $345.00M |
| Interest Expense | $297.00M |
| Net Income | $61.00M |
| EPS (Basic) | $0.08 |
| EPS (Diluted) | $0.08 |
| Shares Outstanding (Basic) | 750.75M |
| Shares Outstanding (Diluted) | 751.86M |
Key Highlights
- 1Net loss attributable to The Williams Companies, Inc. for the nine months ended September 30, 2016, was $409 million, a significant decline from a net income of $144 million in the prior year.
- 2Total revenues for the nine months remained relatively flat at $5,301 million compared to $5,354 million in the prior year.
- 3The company recognized substantial impairment charges on long-lived assets, totaling $811 million for the nine months ended September 30, 2016, largely due to the sale of Canadian operations.
- 4Williams Companies, Inc. reduced its quarterly dividend from $0.64 to $0.20 per share in Q3 2016 to reinvest capital into Williams Partners.
- 5The proposed merger with Energy Transfer Equity (ETE) was terminated in June 2016, leading to ongoing litigation for monetary damages.
- 6Modified EBITDA for the Williams Partners segment showed resilience, increasing to $2,629 million for the nine months ended September 30, 2016, up from $2,891 million in the prior year, supported by higher olefin margins and service revenues.
- 7The company completed the sale of its Canadian operations in September 2016 for $1.02 billion, resulting in an impairment charge and a loss on sale.