Summary
Williams Companies, Inc. (WMB) filed an 8-K on October 14, 2008, to disclose the estimated financial impact of Hurricanes Gustav and Ike on its third and fourth quarters of 2008. The company anticipates a reduction in consolidated segment profit between $50 million and $70 million for the third quarter, primarily affecting its Midstream business segment. This impact stems from repair costs, insurance deductibles, facility downtime, and reduced volumes. Additionally, a rupture on the Transco system is expected to further reduce the Gas Pipeline segment's third-quarter profit by approximately $5 million. No material financial impact is anticipated for the fourth quarter of 2008 from these events.
Key Highlights
- 1Williams Companies estimates a $50 million to $70 million reduction in third-quarter 2008 consolidated segment profit due to Hurricanes Gustav and Ike.
- 2The Midstream business segment is expected to bear the brunt of the hurricane impact, with an estimated profit reduction of $45 million to $65 million in Q3 2008.
- 3Hurricane-related impacts include repair costs, insurance deductibles, facility downtime, and reduced volumes.
- 4A further $5 million reduction in segment profit is estimated for the Gas Pipeline segment in Q3 2008 due to hurricane repairs and an unrelated Transco system rupture.
- 5The company does not foresee a material financial impact on its Q4 2008 results from these specific hurricane-related events.
- 6The financial information provided is based on preliminary estimates and is subject to change as more information becomes available.