Summary
Williams Companies, Inc. (WMB) reported solid financial results for the second quarter and first six months of 2018, showing growth in revenues driven by increased service revenues from pipeline expansion projects and higher gathering/processing volumes. While net income attributable to The Williams Companies, Inc. saw a decrease compared to the prior year period, this was primarily due to the absence of a significant gain from the disposition of equity-method investments in 2017. The company's strategic focus on its core Williams Partners segment, particularly its Transco pipeline operations, continues to drive performance. Key developments include the ongoing WPZ Merger, which is expected to close in the third quarter of 2018, and the company's proactive management of regulatory changes, particularly those from FERC concerning income tax recovery for MLPs. Management is focused on growth projects and maintaining operational excellence, with a robust outlook for fee-based businesses that mitigate commodity price volatility. The company also continues to navigate various legal and environmental matters, which are being actively managed and disclosed.
Financial Highlights
49 data points| Revenue | $2.08B |
| SG&A Expenses | $130.00M |
| Operating Expenses | $1.68B |
| Operating Income | $410.00M |
| Interest Expense | $275.00M |
| Net Income | $135.00M |
| EPS (Basic) | $0.16 |
| EPS (Diluted) | $0.16 |
| Shares Outstanding (Basic) | 827.87M |
| Shares Outstanding (Diluted) | 830.11M |
Key Highlights
- 1Total revenues increased by 9% to $2.09 billion for the three months ended June 30, 2018, compared to $1.92 billion for the same period in 2017.
- 2Net income attributable to The Williams Companies, Inc. was $135 million ($0.16 per diluted share) for the second quarter of 2018, compared to $81 million ($0.10 per diluted share) in the prior year's second quarter, however, the six-month period showed a decrease from $454 million to $287 million primarily due to a large one-time gain in the prior year.
- 3The company announced an agreement to acquire all publicly held units of its master limited partnership, Williams Partners L.P. (WPZ), in a stock-for-unit transaction expected to close in the third quarter of 2018.
- 4Significant expansion projects, such as Phase 2 of the Garden State Expansion and the Susquehanna Supply Hub Expansion, were placed into service or nearing completion, contributing to increased capacity and revenues.
- 5The company is actively managing the impact of new FERC policies on income tax recovery for MLPs, noting that the pending WPZ merger is expected to help mitigate potential adverse effects.
- 6Operating and maintenance expenses remained relatively stable, while selling, general, and administrative expenses decreased due to cost containment initiatives and the absence of certain one-time charges from the prior year.
- 7The company's balance sheet remains substantial, with total assets of $46.37 billion at June 30, 2018. Long-term debt stood at $21.31 billion.