Williams Reports Fourth-Quarter and Full-Year 2019 Financial Results

TULSA, Okla.--()--Williams (NYSE: WMB) today announced its unaudited financial results for the three and 12 months ended Dec. 31, 2019.

Full-year 2019 Results Reflect Year-Over-Year Growth Compared with 2018

  • Net income from continuing operations attributable to Williams available to common stockholders of $862 million – up $1.0 billion over 2018
  • Net income from continuing operations per share is $0.71 vs. net loss of $0.16 for 2018
  • Adjusted income per share is $0.99 – up 25% over 2018
  • Cash flow from operations of $3.69 billion – up 12% over 2018
  • Adjusted EBITDA of $5.02 billion, up $377 million or 8% over 2018
  • DCF of $3.30 billion – up $425 million or 15% over 2018

Solid Execution Delivers Strong 4Q 2019 Results

  • Net income from continuing operations attributable to Williams available to common stockholders of $138 million – up $710 million over 4Q '18
  • Net income per share of $0.11 vs. net loss of $0.47 per share in 4Q '18
  • Adjusted income per share of $0.24 – up 26% over 4Q '18
  • Cash flow from operations of $991 million – up $29 million or 3% over 4Q '18
  • Adjusted EBITDA of $1.284 billion – up $87 million or 7% over 4Q '18
  • Distributable Cash Flow ("DCF") of $828 million – up $80 million or 11% over 4Q '18
  • Dividend coverage ratio is 1.80x
  • Debt (Net of Cash) to adjusted EBITDA at quarter end: 4.39x

Impressive Business Performance With Records Set for Adjusted EBITDA, Gathering Volumes and Transportation Capacity

  • Record 2019 adjusted EBITDA driven by strong growth in Atlantic-Gulf and Northeast G&P
  • Record 4Q gathered volumes of 13.3 Bcf/d, up 10% over 4Q 2018; YTD record 12.9 Bcf/d, up 5% over 2018
  • Record 4Q '19 firm reserved transportation capacity of ~21.8 Bcf/d, up 8% over 4Q '18, driven by expansion projects including the Gateway and Rivervale South to Market expansions in the Northeast and the North Seattle Lateral expansion in the Northwest

CEO Perspective

Alan Armstrong, president and chief executive officer, made the following comments:

Williams achieved yet another year of record results in 2019, once again delivering impressive year-over-year growth and exceeding guidance midpoints in our key financial metrics while dramatically reducing capital expenditures. These results were underpinned by our strong operations – we set records for both gathered volumes and firm reserved transportation capacity, and our safety metrics continue to improve. We also generated cash in excess of dividends and capital expenditures, reflecting the combined impact of strong business performance, capital discipline and our ongoing portfolio optimization efforts. These results are driving improvement in our credit metrics. Looking ahead to 2020, our disciplined approach to capital allocation should allow us to fully fund our increased dividend and capital expenditures with internally generated cash flows.

"Williams remains extremely well-positioned to capture long-term sustainable growth with our natural gas focused strategy. We continue to see demand for new transport capacity along our premier interstate transmission systems, and the scale and location of our deepwater Gulf of Mexico assets provide a strong competitive advantage to capture emerging growth opportunities. Our resilient G&P business can not only withstand current market pressures, but is also well-positioned to generate long-term value as demand for natural gas continues to grow.”

Armstrong added, “Natural gas has been – and will continue to be – a cornerstone of our nation’s prosperity in the 21st century and a critical part of our clean energy future. Abundant, low cost and reliable natural gas has driven significant reductions in U.S. CO2 emissions, lowered consumers’ utility bills and paved the way for investment in renewables. As the American energy leader that safely handles 30% of the nation’s natural gas, Williams’ large-scale infrastructure is ready to meet continued demand growth, both in the U.S. and abroad.”

Williams Summary Financial Information

4Q

 

YTD

Amounts in millions, except ratios and per-share amounts. Per share amounts are reported on a diluted basis. Net income (loss) amounts are from continuing operations attributable to The Williams Companies, Inc. available to common stockholders.

2019

 

2018

 

2019

 

2018

 

 

 

 

 

 

 

 

GAAP Measures

 

 

 

 

 

 

 

Net Income

$138

 

 

($572

)

 

$862

 

 

($156

)

Net Income Per Share

$0.11

 

 

($0.47

)

 

$0.71

 

 

($0.16

)

Cash Flow From Operations

$991

 

 

$962

 

 

$3,693

 

 

$3,293

 

 

 

 

 

 

 

 

 

Non-GAAP Measures (1)

 

 

 

 

 

 

 

Adjusted EBITDA

$1,284

 

 

$1,197

 

 

$5,015

 

 

$4,638

 

Adjusted Income

$293

 

 

$230

 

 

$1,200

 

 

$775

 

Adjusted Income Per Share

$0.24

 

 

$0.19

 

 

$0.99

 

 

$0.79

 

Distributable Cash Flow

$828

 

 

$748

 

 

$3,297

 

 

$2,872

 

Dividend Coverage Ratio

1.80

x

 

1.82

x

 

1.79

x

 

1.69

x

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

Debt-to-Adjusted EBITDA at Quarter End (2)

4.39

x

 

4.80

x

 

 

 

 

Capital Investments (3)(4)

$408

 

 

$868

 

 

$2,476

 

 

$4,153

 

 

 

 

(1)

 

 

Schedules reconciling adjusted income from continuing operations, adjusted EBITDA, Distributable Cash Flow and Coverage Ratio (non-GAAP measures) to the most comparable GAAP measure are available at www.williams.com and as an attachment to this news release.

(2)

 

 

Debt-to-Adjusted EBITDA ratio does not represent leverage ratios measured for WMB credit agreement compliance or leverage ratios as calculated by the major credit ratings agencies. Debt is net of cash on hand, and Adjusted EBITDA reflects the sum of the last four quarters.

(3)

 

 

Capital Investments includes increases to property, plant, and equipment, purchases of businesses, net of cash acquired, and purchases of and contributions to equity-method investments.

(4)

 

 

YTD 2019 excludes $728 million (net of cash acquired) for the purchase of the remaining 38% of UEO as this amount was provided for at the close of the new Northeast JV by our JV partners, CPPIB, in June 2019.

GAAP Measures

  • Fourth-quarter 2019 net income benefited from $69 million of increased service revenues driven by Transco expansion projects, the consolidation of UEOM revenues beginning in March 2019, and growth in Northeast G&P volumes. These improvements were partially offset by lower revenues from our Barnett Shale operations primarily associated with reduced recognition of non-cash deferred revenue and the end of a contractual minimum volume commitment (MVC) period.
  • Fourth-quarter 2019 also benefited from $1.7 billion lower net asset impairments, partially offset by $692 million due to the absence of 4Q '18 gains on asset sales and $141 million associated with the absence of 4Q '18 gains from the deconsolidation of certain businesses.
  • Full-year 2019 net income benefited from $431 million of increased service revenues primarily due to the same drivers affecting 4Q '19, partially offset by the absence of revenues from operations sold or deconsolidated during 2018, as well as a $138 million decline in commodity margins.
  • The full year also benefited from $1.7 billion lower net asset impairments, partially offset by the absence of $692 million in gains on asset sales in 4Q '18 as well as $203 million associated with gains from the deconsolidation of certain businesses in 2018.
  • Full-year 2019 net income also reflects lower income attributable to non-controlling interests due to the WPZ merger in 2018 and an increased provision for income taxes in 2019 driven by higher pre-tax income.
  • The increase in cash flow from operations for fourth-quarter and full-year 2019 periods were largely driven by the increased service revenues as previously described and the collection of Transco's filed rates, some of which is subject to refund. The YTD 2019 period also benefited from the receipt of an income tax refund.

Non-GAAP Measures

  • The increase in adjusted EBITDA for 4Q 2019 and full-year 2019 largely reflects the previously mentioned increased Transco and Northeast G&P service revenues and the benefit of Transco's recently settled general rate case. Lower commodity margins partially offset the higher service revenues in full-year 2019.
  • Adjusted income for both the quarter and full-year periods also improved, driven by the higher adjusted EBITDA. The full-year period variance also reflects less income attributable to noncontrolling interests driven by the WPZ merger, partially offset by higher interest expense associated with financing obligations for leased pipeline capacity and an increased provision for income taxes.
  • Fourth-quarter and full-year 2019 DCF are higher, reflecting the increased adjusted EBITDA and lower maintenance capital, partially offset by higher net interest expense. The full-year increase also benefited from an income tax refund received in 2019.

Business Segment Results & Form 10-K

Williams' operations are comprised of the following reportable segments: Atlantic-Gulf, West, Northeast G&P and Other. For additional information, please see the company's 2019 Form 10-K, which Williams expects to file next week with the Securities and Exchange Commission (SEC). Once filed, the document will be on the SEC and Williams websites.

 

Quarter-To-Date

 

Year-To-Date

Amounts in millions

Modified EBITDA

 

Adjusted EBITDA

 

Modified EBITDA

 

Adjusted EBITDA

4Q 2019

4Q 2018

Change

 

4Q 2019

4Q 2018

Change

 

2019

2018

Change

 

2019

2018

Change

Atlantic-Gulf

$212

 

$605

 

($393

)

 

$570

 

$529

 

$41

 

 

$1,895

 

$2,023

 

($128

)

 

$2,300

 

$1,931

 

$369

 

West

311

 

(906

)

1,217

 

 

336

 

358

 

(22

)

 

1,232

 

308

 

924

 

 

1,351

 

1,577

 

(226

)

Northeast G&P

367

 

300

 

67

 

 

377

 

304

 

73

 

 

1,314

 

1,086

 

228

 

 

1,341

 

1,090

 

251

 

Other

5

 

20

 

(15

)

 

1

 

6

 

(5

)

 

6

 

(29

)

35

 

 

23

 

40

 

(17

)

Totals

$895

 

$19

 

$876

 

 

$1,284

 

$1,197

 

$87

 

 

$4,447

 

$3,388

 

$1,059

 

 

$5,015

 

$4,638

 

$377

 

 

Note: Williams uses Modified EBITDA for its segment reporting. Definitions of Modified EBITDA and Adjusted EBITDA and schedules reconciling to net income are included in this news release.

Atlantic-Gulf

  • Fourth-quarter and full-year 2019 modified and adjusted EBITDA reflect increased service revenues from Transco expansion projects placed in service and the benefit of Transco’s recently settled general rate case, partially offset by lower revenues from Gulfstar. Projects placed into full-service in 4Q '19 include the Gateway and Rivervale South to Market expansions serving the Northeast.
  • Fourth-quarter and full-year 2019 modified EBITDA were negatively impacted by a $354 million impairment of the Constitution Pipeline project, of which Williams' 41% share was $145 million, as well as the absence of an $81 million prior-year gain on the sale of certain Gulf Coast pipeline assets.
  • Full-year 2019 modified EBITDA was also negatively impacted by lower equity AFUDC due to lower levels of construction activity and severance expenses.
  • The impairment charges, gains on asset sales and severance expenses reflected in modified EBITDA are excluded from adjusted EBITDA.
  • The company filed a formal stipulation and agreement for Transco’s rate case with the FERC on December 31. All comments received during the public comment period were in support of the settlement. The company anticipates FERC approval of the settlement in second-quarter 2020.

West

  • Fourth-quarter and full-year 2019 modified and adjusted EBITDA reflect the absence of revenues from operations either sold or deconsolidated and lower revenues in Barnett Shale and Mid-Con, partially offset by higher revenue in Eagle Ford, Haynesville, the Conway fractionation and storage business and growth in JV EBITDA from Rocky Mountain Midstream. Fourth-quarter 2019 experienced an improvement in commodity margins driven by marketing activities, while full-year 2019 was unfavorably impacted by lower NGL prices.
  • The lower revenue at Barnett Shale noted above was primarily associated with reduced recognition of non-cash deferred revenue and the end of a contractual MVC period. Lower revenues in Mid-Con noted above were due to lower rates and volumes.
  • Fourth-quarter and full-year 2019 modified EBITDA were favorably impacted by the absence of the $1.8 billion impairment of certain Barnett Shale gathering assets in 2018, partially offset by the absence of a $591 million gain on the 2018 sale of our Four Corners operations.
  • The impairment charges and gains on asset sales reflected in modified EBITDA are excluded from adjusted EBITDA.
  • Fourth-quarter and YTD 2019 results reflect higher gathering volumes in the Eagle Ford, Haynesville, and Rocky Mountain Midstream systems. Eagle Ford gathering volumes increased by 9% versus 4Q '18 and by 10% YTD over 2018. Haynesville gathering volumes increased by 21% versus 4Q '18 and by 12% YTD over 2018. Rocky Mountain Midstream gathering volumes grew dramatically on a percentage basis, achieving an average of approximately 270 MMcf/d in 4Q 2019.

Northeast G&P

  • Improvement in modified and adjusted EBITDA for 4Q and YTD 2019 was driven by increased service revenues from the Susquehanna Supply Hub, the Utica Shale region, and Ohio Valley, as well as the acquisition of Utica East Ohio Midstream in March 2019. The YTD improvements also reflect higher proportional EBITDA from our Appalachia Midstream investment driven by the Marcellus South system.
  • The 4Q and YTD 2019 periods reflect increases in gross gathering volumes, including 100% of operated equity-method investments, of 12% and 15%, respectively, over the same reporting periods in 2018.

Williams' Fourth-Quarter 2019 Materials to be Posted Shortly; Q&A Webcast Scheduled for Tomorrow

Williams' fourth-quarter 2019 earnings presentation will be posted at www.williams.com. The company’s fourth-quarter 2019 earnings conference call and webcast with analysts and investors is scheduled for Thursday, Feb. 20, at 9:30 a.m. Eastern Time (8:30 a.m. Central Time). A limited number of phone lines will be available at (800) 353-6461. International callers should dial (334) 323-0501. The conference ID is 8801169. A webcast link to the conference call is available at www.williams.com. A replay of the webcast will be available on the website for at least 90 days following the event.

About Williams

Williams (NYSE: WMB) is committed to being the leader in providing infrastructure that safely delivers natural gas products to reliably fuel the clean energy economy. Headquartered in Tulsa, Oklahoma, Williams is an industry-leading, investment grade C-Corp with operations across the natural gas value chain including gathering, processing, interstate transportation and storage of natural gas and natural gas liquids. With major positions in top U.S. supply basins, Williams connects the best supplies with the growing demand for clean energy. Williams owns and operates more than 30,000 miles of pipelines system wide – including Transco, the nation’s largest volume and fastest growing pipeline – and handles approximately 30 percent of the natural gas in the United States that is used every day for clean-power generation, heating and industrial use.

www.williams.com

The Williams Companies, Inc.

Consolidated Statement of Operations

 

 

Year Ended December 31,

 

 

2019

 

2018

 

2017

 

(Millions, except per-share amounts)

Revenues:

 

 

 

 

 

 

Service revenues

 

$

5,933

 

 

$

5,502

 

 

$

5,312

 

Service revenues – commodity consideration

 

203

 

 

400

 

 

 

Product sales

 

2,065

 

 

2,784

 

 

2,719

 

Total revenues

 

8,201

 

 

8,686

 

 

8,031

 

Costs and expenses:

 

 

 

 

 

 

Product costs

 

1,961

 

 

2,707

 

 

2,300

 

Processing commodity expenses

 

105

 

 

137

 

 

 

Operating and maintenance expenses

 

1,468

 

 

1,507

 

 

1,576

 

Depreciation and amortization expenses

 

1,714

 

 

1,725

 

 

1,736

 

Selling, general, and administrative expenses

 

558

 

 

569

 

 

594

 

Impairment of certain assets

 

464

 

 

1,915

 

 

1,248

 

Gain on sale of certain assets and businesses

 

2

 

 

(692

)

 

(1,095

)

Regulatory charges resulting from Tax Reform

 

 

 

(17

)

 

674

 

Other (income) expense – net

 

8

 

 

67

 

 

71

 

Total costs and expenses

 

6,280

 

 

7,918

 

 

7,104

 

Operating income (loss)

 

1,921

 

 

768

 

 

927

 

Equity earnings (losses)

 

375

 

 

396

 

 

434

 

Other investing income (loss) – net

 

(79

)

 

187

 

 

282

 

Interest incurred

 

(1,218

)

 

(1,160

)

 

(1,116

)

Interest capitalized

 

32

 

 

48

 

 

33

 

Other income (expense) – net

 

33

 

 

92

 

 

(25

)

Income (loss) from continuing operations before income taxes

 

1,064

 

 

331

 

 

535

 

Provision (benefit) for income taxes

 

335

 

 

138

 

 

(1,974

)

Income (loss) from continuing operations

 

729

 

 

193

 

 

2,509

 

Income (loss) from discontinued operations

 

(15

)

 

 

 

 

Net income (loss)

 

714

 

 

193

 

 

2,509

 

Less: Net income (loss) attributable to noncontrolling interests

 

(136

)

 

348

 

 

335

 

Net income (loss) attributable to The Williams Companies, Inc.

 

850

 

 

(155

)

 

2,174

 

Preferred stock dividends

 

3

 

 

1

 

 

 

Net income (loss) available to common stockholders

 

$

847

 

 

$

(156

)

 

$

2,174

 

Amounts attributable to The Williams Companies, Inc. available to common stockholders:

 

 

 

 

 

 

Income (loss) from continuing operations

 

$

862

 

 

$

(156

)

 

$

2,174

 

Income (loss) from discontinued operations

 

(15

)

 

 

 

 

Net income (loss)

 

$

847

 

 

$

(156

)

 

$

2,174

 

Basic earnings (loss) per common share:

 

 

 

 

 

 

Income (loss) from continuing operations

 

$

.71

 

 

$

(.16

)

 

$

2.63

 

Income (loss) from discontinued operations

 

(.01

)

 

 

 

 

Net income (loss)

 

$

.70

 

 

$

(.16

)

 

$

2.63

 

Weighted-average shares (thousands)

 

1,212,037

 

 

973,626

 

 

826,177

 

Diluted earnings (loss) per common share:

 

 

 

 

 

 

Income (loss) from continuing operations

 

$

.71

 

 

$

(.16

)

 

$

2.62

 

Income (loss) from discontinued operations

 

(.01

)

 

 

 

 

Net income (loss)

 

$

.70

 

 

$

(.16

)

 

$

2.62

 

Weighted-average shares (thousands)

 

1,214,011

 

 

973,626

 

 

828,518

 

The Williams Companies, Inc.

Consolidated Balance Sheet

 

 

December 31,

 

 

2019

 

2018

 

 

(Millions, except per-share amounts)

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

289

 

 

$

168

 

Trade accounts and other receivables (net of allowance of $6 at December 31, 2019 and $9 at December 31, 2018)

 

996

 

 

992

 

Inventories

 

125

 

 

130

 

Other current assets and deferred charges

 

170

 

 

174

 

Total current assets

 

1,580

 

 

1,464

 

 

 

 

 

 

Investments

 

6,235

 

 

7,821

 

Property, plant, and equipment – net

 

29,200

 

 

27,504

 

Intangible assets – net of accumulated amortization

 

7,959

 

 

7,767

 

Regulatory assets, deferred charges, and other

 

1,066

 

 

746

 

Total assets

 

$

46,040

 

 

$

45,302

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

552

 

 

$

662

 

Accrued liabilities

 

1,276

 

 

1,102

 

Long-term debt due within one year

 

2,140

 

 

47

 

Total current liabilities

 

3,968

 

 

1,811

 

 

 

 

 

 

Long-term debt

 

20,148

 

 

22,367

 

Deferred income tax liabilities

 

1,782

 

 

1,524

 

Regulatory liabilities, deferred income, and other

 

3,778

 

 

3,603

 

Contingent liabilities and commitments

 

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

Stockholders’ equity:

 

 

 

 

Preferred stock

 

35

 

 

35

 

Common stock ($1 par value; 1,470 million shares authorized at December 31, 2019 and December 31, 2018; 1,247 million shares issued at December 31, 2019 and 1,245 million shares issued at December 31, 2018)

 

1,247

 

 

1,245

 

Capital in excess of par value

 

24,323

 

 

24,693

 

Retained deficit

 

(11,002

)

 

(10,002

)

Accumulated other comprehensive income (loss)

 

(199

)

 

(270

)

Treasury stock, at cost (35 million shares of common stock)

 

(1,041

)

 

(1,041

)

Total stockholders’ equity

 

13,363

 

 

14,660

 

Noncontrolling interests in consolidated subsidiaries

 

3,001

 

 

1,337

 

Total equity

 

16,364

 

 

15,997

 

Total liabilities and equity

 

$

46,040

 

 

$

45,302

 

The Williams Companies, Inc.

Consolidated Statement of Cash Flows

 

 

Year Ended December 31,

 

 

2019

 

2018

 

2017

 

 

(Millions)

OPERATING ACTIVITIES:

 

 

 

 

 

 

Net income (loss)

 

$

714

 

 

$

193

 

 

$

2,509

 

Adjustments to reconcile to net cash provided (used) by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

1,714

 

 

1,725

 

 

1,736

 

Provision (benefit) for deferred income taxes

 

376

 

 

220

 

 

(2,012

)

Equity (earnings) losses

 

(375

)

 

(396

)

 

(434

)

Distributions from unconsolidated affiliates

 

657

 

 

693

 

 

784

 

Gain on disposition of equity-method investments

 

(122

)

 

 

 

(269

)

Impairment of equity-method investments

 

186

 

 

32

 

 

 

(Gain) on sale of certain assets and businesses

 

2

 

 

(692

)

 

(1,095

)

Impairment of certain assets

 

464

 

 

1,915

 

 

1,249

 

(Gain) loss on deconsolidation of businesses

 

29

 

 

(203

)

 

 

Amortization of stock-based awards

 

57

 

 

55

 

 

78

 

Regulatory charges resulting from Tax Reform

 

 

 

(15

)

 

776

 

Cash provided (used) by changes in current assets and liabilities:

 

 

 

 

 

 

Accounts and notes receivable

 

34

 

 

(36

)

 

(88

)

Inventories

 

5

 

 

(16

)

 

8

 

Other current assets and deferred charges

 

21

 

 

17

 

 

(21

)

Accounts payable

 

(46

)

 

(93

)

 

118

 

Accrued liabilities

 

153

 

 

23

 

 

(92

)

Other, including changes in noncurrent assets and liabilities

 

(176

)

 

(129

)

 

(158

)

Net cash provided (used) by operating activities

 

3,693

 

 

3,293

 

 

3,089

 

FINANCING ACTIVITIES:

 

 

 

 

 

 

Proceeds from (payments of) commercial paper – net

 

(4

)

 

(2

)

 

(93

)

Proceeds from long-term debt

 

767

 

 

3,926

 

 

3,333

 

Payments of long-term debt

 

(909

)

 

(3,204

)

 

(5,925

)

Proceeds from issuance of common stock

 

10

 

 

15

 

 

2,131

 

Proceeds from sale of partial interest in consolidated subsidiary

 

1,334

 

 

 

 

 

Common dividends paid

 

(1,842

)

 

(1,386

)

 

(992

)

Dividends and distributions paid to noncontrolling interests

 

(124

)

 

(591

)

 

(822

)

Contributions from noncontrolling interests

 

36

 

 

15

 

 

17

 

Payments for debt issuance costs

 

 

 

(26

)

 

(17

)

Other – net

 

(13

)

 

(46

)

 

(92

)

Net cash provided (used) by financing activities

 

(745

)

 

(1,299

)

 

(2,460

)

INVESTING ACTIVITIES:

 

 

 

 

 

 

Property, plant, and equipment:

 

 

 

 

 

 

Capital expenditures (1)

 

(2,109

)

 

(3,256

)

 

(2,399

)

Dispositions – net

 

(40

)

 

(7

)

 

(41

)

Contributions in aid of construction

 

52

 

 

411

 

 

426

 

Proceeds from sale of businesses, net of cash divested

 

(2

)

 

1,296

 

 

2,067

 

Purchases of businesses, net of cash acquired

 

(728

)

 

 

 

 

Proceeds from dispositions of equity-method investments

 

485

 

 

 

 

200

 

Purchases of and contributions to equity-method investments

 

(453

)

 

(1,132

)

 

(132

)

Other – net

 

(32

)

 

(37

)

 

(21

)

Net cash provided (used) by investing activities

 

(2,827

)

 

(2,725

)

 

100

 

Increase (decrease) in cash and cash equivalents

 

121

 

 

(731

)

 

729

 

Cash and cash equivalents at beginning of year

 

168

 

 

899

 

 

170

 

Cash and cash equivalents at end of year

 

$

289

 

 

$

168

 

 

$

899

 

_________

 

 

 

 

 

 

(1) Increases to property, plant, and equipment

 

$

(2,023

)

 

$

(3,021

)

 

$

(2,662

)

Changes in related accounts payable and accrued liabilities

 

(86

)

 

(235

)

 

263

 

Capital expenditures

 

$

(2,109

)

 

$

(3,256

)

 

$

(2,399

)

Atlantic-Gulf

 

(UNAUDITED)

 

 

2018

 

 

2019

 

(Dollars in millions)

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

4th Qtr

 

Year

 

 

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

4th Qtr

 

Year

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Service revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Nonregulated gathering & processing fee-based revenue

$

138

 

$

128

 

$

138

 

$

137

 

$

541

 

 

$

128

 

$

119

 

$

117

 

$

113

 

$

477

 

 

Regulated transportation revenue

413

 

406

 

411

 

508

 

1,738

 

 

517

 

514

 

549

 

548

 

2,128

 

 

Other fee revenues

32

 

34

 

34

 

34

 

134

 

 

34

 

40

 

32

 

34

 

140

 

 

Tracked service revenue

26

 

22

 

24

 

24

 

96

 

 

30

 

25

 

33

 

28

 

116

 

 

Nonregulated commodity consideration

15

 

12

 

18

 

14

 

59

 

 

13

 

13

 

7

 

8

 

41

 

 

Product sales:

 

 

 

 

 

 

 

 

 

 

 

 

NGL sales from gas processing

15

 

10

 

16

 

15

 

56

 

 

12

 

12

 

6

 

9

 

39

 

 

Marketing sales

45

 

57

 

67

 

53

 

222

 

 

40

 

32

 

23

 

34

 

129

 

 

Other sales

1

 

1

 

1

 

 

3

 

 

2

 

1

 

1

 

1

 

5

 

 

Tracked product sales

32

 

37

 

47

 

38

 

154

 

 

28

 

23

 

46

 

18

 

115

 

 

Total revenues

717

 

707

 

756

 

823

 

3,003

 

 

804

 

779

 

814

 

793

 

3,190

 

 

Segment costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

NGL cost of goods sold

15

 

12

 

19

 

14

 

60

 

 

13

 

14

 

6

 

8

 

41

 

 

Marketing cost of goods sold

44

 

56

 

67

 

53

 

220

 

 

41

 

28

 

23

 

34

 

126

 

 

Other cost of goods sold

 

 

 

 

 

 

 

2

 

 

1

 

3

 

 

Tracked cost of goods sold

33

 

38

 

48

 

39

 

158

 

 

28

 

25

 

46

 

19

 

118

 

 

Processing commodity expenses

5

 

2

 

3

 

6

 

16

 

 

5

 

5

 

2

 

4

 

16

 

 

Operating and administrative costs

177

 

181

 

181

 

197

 

736

 

 

168

 

198

 

176

 

208

 

750

 

 

Tracked operating and administrative costs

26

 

22

 

24

 

23

 

95

 

 

30

 

25

 

32

 

29

 

116

 

 

Other segment costs and expenses

(2

)

(15

)

(29

)

14

 

(32

)

 

1

 

2

 

(26

)

(29

)

(52

)

 

Impairment of certain assets (1)

 

 

 

 

 

 

 

 

 

354

 

354

 

 

Gain on sale of certain assets and businesses

 

 

 

(81

)

(81

)

 

 

 

 

 

 

 

Regulatory charges resulting from Tax Reform

11

 

(20

)

 

 

(9

)

 

 

 

 

 

 

 

Total segment costs and expenses

309

 

276

 

313

 

265

 

1,163

 

 

286

 

299

 

259

 

628

 

1,472

 

 

Proportional Modified EBITDA of equity-method investments

43

 

44

 

49

 

47

 

183

 

 

42

 

44

 

44

 

47

 

177

 

 

Modified EBITDA

451

 

475

 

492

 

605

 

2,023

 

 

560

 

524

 

599

 

212

 

1,895

 

 

Adjustments

15

 

(19

)

(12

)

(76

)

(92

)

 

 

35

 

12

 

358

 

405

 

 

Adjusted EBITDA

$

466

 

$

456

 

$

480

 

$

529

 

$

1,931

 

 

$

560

 

$

559

 

$

611

 

$

570

 

$

2,300

 

 

NGL Margin

$

10

 

$

8

 

$

12

 

$

9

 

$

39

 

 

$

7

 

$

6

 

$

5

 

$

5

 

$

23

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Statistics for Operated Assets

 

 

 

 

 

 

 

 

 

 

 

 

Gathering, Processing, and Crude Oil Transportation

 

 

 

 

 

 

 

 

 

 

 

 

Gathering volumes (Bcf per day) - Consolidated (2)

0.29

 

0.23

 

0.26

 

0.24

 

0.26

 

 

0.25

 

0.25

 

0.22

 

0.29

 

0.25

 

 

Gathering volumes (Bcf per day) - Non-consolidated (3)

0.24

 

0.25

 

0.25

 

0.31

 

0.26

 

 

0.35

 

0.38

 

0.36

 

0.35

 

0.36

 

 

Plant inlet natural gas volumes (Bcf per day) - Consolidated (2)

0.54

 

0.43

 

0.51

 

0.53

 

0.50

 

 

0.53

 

0.55

 

0.50

 

0.58

 

0.54

 

 

Plant inlet natural gas volumes (Bcf per day) - Non-consolidated (3)

0.24

 

0.25

 

0.25

 

0.32

 

0.27

 

 

0.35

 

0.39

 

0.36

 

0.35

 

0.36

 

 

Crude transportation volumes (Mbbls/d)

142

 

132

 

147

 

140

 

140

 

 

146

 

136

 

128

 

135

 

136

 

 

Consolidated (2)

 

 

 

 

 

 

 

 

 

 

 

 

Ethane margin ($/gallon)

$

.03

 

$

.16

 

$

.24

 

$

.14

 

$

.14

 

 

$

.10

 

$

.02

 

$

.01

 

$

.01

 

$

.04

 

 

Non-ethane margin ($/gallon)

$

.66

 

$

.74

 

$

.76

 

$

.58

 

$

.68

 

 

$

.48

 

$

.28

 

$

.35

 

$

.37

 

$

.36

 

 

NGL margin ($/gallon)

$

.40

 

$

.48

 

$

.51

 

$

.36

 

$

.43

 

 

$

.26

 

$

.17

 

$

.22

 

$

.24

 

$

.22

 

 

Ethane equity sales (Mbbls/d)

2.82

 

1.91

 

3.05

 

2.98

 

2.69

 

 

4.16

 

4.11

 

1.85

 

1.97

 

3.01

 

 

Non-ethane equity sales (Mbbls/d)

3.87

 

2.35

 

3.14

 

3.21

 

3.14

 

 

3.28

 

5.34

 

3.15

 

3.57

 

3.84

 

 

NGL equity sales (Mbbls/d)

6.69

 

4.26

 

6.19

 

6.19

 

5.83

 

 

7.44

 

9.45

 

5.00

 

5.54

 

6.85

 

 

Ethane production (Mbbls/d)

12

 

12

 

15

 

16

 

14

 

 

17

 

14

 

9

 

10

 

13

 

 

Non-ethane production (Mbbls/d)

19

 

17

 

18

 

19

 

18

 

 

19

 

19

 

18

 

21

 

19

 

 

NGL production (Mbbls/d)

31

 

29

 

33

 

35

 

32

 

 

36

 

33

 

27

 

31

 

32

 

 

Non-consolidated (3)

 

 

 

 

 

 

 

 

 

 

 

 

NGL equity sales (Mbbls/d)

3

 

5

 

4

 

5

 

4

 

 

7

 

8

 

6

 

5

 

6

 

 

NGL production (Mbbls/d)

18

 

20

 

20

 

23

 

20

 

 

24

 

27

 

24

 

26

 

25

 

 

Transcontinental Gas Pipe Line

 

 

 

 

 

 

 

 

 

 

 

 

Throughput (Tbtu)

1,099.9

 

965.5

 

1,092.3

 

1,150.9

 

4,308.5

 

 

1,183.9

 

1,109.4

 

1,216.2

 

1,227.6

 

4,737.2

 

 

Avg. daily transportation volumes (Tbtu)

12.2

 

10.6

 

11.9

 

12.5

 

11.8

 

 

13.2

 

12.2

 

13.2

 

13.3

 

13.0

 

 

Avg. daily firm reserved capacity (Tbtu)

15.4

 

15.0

 

15.0

 

16.4

 

15.5

 

 

17.1

 

17.0

 

17.3

 

17.5

 

17.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Our partners' $209 million share of the fourth-quarter 2019 impairment of the Constitution pipeline project is reflected outside of Modified EBITDA within Net loss attributable to noncontrolling interests.

 

(2) Excludes volumes associated with equity-method investments that are not consolidated in our results.

 

(3) Includes 100% of the volumes associated with operated equity-method investments.

 

Northeast G&P

 

(UNAUDITED)

 

 

2018

 

 

2019

 

(Dollars in millions)

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

4th Qtr

 

Year

 

 

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

4th Qtr

 

Year

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Service revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Nonregulated gathering and processing fee-based revenue

$

189

 

$

196

 

$

211

 

$

226

 

$

822

 

 

$

230

 

$

267

 

$

284

 

$

299

 

$

1,080

 

 

Other fee revenues

39

 

36

 

36

 

43

 

154

 

 

46

 

63

 

69

 

80

 

258

 

 

Nonregulated commodity consideration

4

 

4

 

6

 

6

 

20

 

 

5

 

3

 

1

 

3

 

12

 

 

Product sales:

 

 

 

 

 

 

 

 

 

 

 

 

NGL sales from gas processing

4

 

5

 

6

 

5

 

20

 

 

5

 

3

 

 

3

 

11

 

 

Marketing sales

89

 

65

 

57

 

35

 

246

 

 

37

 

28

 

26

 

30

 

121

 

 

Tracked product sales

5

 

5

 

6

 

5

 

21

 

 

5

 

6

 

4

 

3

 

18

 

 

Total revenues

330

 

311

 

322

 

320

 

1,283

 

 

328

 

370

 

384

 

418

 

1,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

NGL cost of goods sold

4

 

5

 

6

 

5

 

20

 

 

5

 

3

 

 

4

 

12

 

 

Marketing cost of goods sold

90

 

65

 

57

 

36

 

248

 

 

37

 

29

 

26

 

30

 

122

 

 

Tracked cost of goods sold

5

 

7

 

6

 

3

 

21

 

 

5

 

6

 

3

 

4

 

18

 

 

Processing commodity expenses

2

 

2

 

3

 

2

 

9

 

 

3

 

2

 

1

 

2

 

8

 

 

Operating and administrative costs

85

 

91

 

96

 

108

 

380

 

 

97

 

130

 

120

 

122

 

469

 

 

Other segment costs and expenses

2

 

1

 

4

 

5

 

12

 

 

4

 

 

(3

)

 

1

 

 

Impairment of certain assets

 

 

 

 

 

 

 

 

 

10

 

10

 

 

Total segment costs and expenses

188

 

171

 

172

 

159

 

690

 

 

151

 

170

 

147

 

172

 

640

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proportional Modified EBITDA of equity-method investments

108

 

115

 

131

 

139

 

493

 

 

122

 

103

 

108

 

121

 

454

 

 

Modified EBITDA

250

 

255

 

281

 

300

 

1,086

 

 

299

 

303

 

345

 

367

 

1,314

 

 

Adjustments

 

 

 

4

 

4

 

 

3

 

16

 

(2

)

10

 

27

 

 

Adjusted EBITDA

$

250

 

$

255

 

$

281

 

$

304

 

$

1,090

 

 

$

302

 

$

319

 

$

343

 

$

377

 

$

1,341

 

 

NGL margin

$

2

 

$

2

 

$

3

 

$

4

 

$

11

 

 

$

2

 

$

1

 

$

 

$

 

$

3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Statistics for Operated Assets

 

 

 

 

 

 

 

 

 

 

 

 

Gathering and Processing

 

 

 

 

 

 

 

 

 

 

 

 

Gathering volumes (Bcf per day) - Consolidated (1)

3.38

 

3.45

 

3.67

 

4.02

 

3.63

 

 

4.05

 

4.16

 

4.33

 

4.41

 

4.24

 

 

Gathering volumes (Bcf per day) - Non-consolidated (2)

3.82

 

3.59

 

3.73

 

3.89

 

3.76

 

 

4.27

 

4.08

 

4.35

 

4.47

 

4.29

 

 

Plant inlet natural gas volumes (Bcf per day)

0.49

 

0.55

 

0.52

 

0.52

 

0.52

 

 

0.63

 

1.04

 

1.16

 

1.33

 

1.04

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ethane equity sales (Mbbls/d)

1.33

 

3.17

 

2.74

 

2.80

 

2.52

 

 

2.73

 

1.83

 

1.94

 

1.05

 

1.89

 

 

Non-ethane equity sales (Mbbls/d)

0.79

 

1.09

 

1.49

 

1.28

 

1.16

 

 

1.21

 

1.09

 

0.67

 

0.83

 

0.96

 

 

NGL equity sales (Mbbls/d)

2.12

 

4.26

 

4.23

 

4.08

 

3.68

 

 

3.94

 

2.92

 

2.61

 

1.88

 

2.85

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ethane production (Mbbls/d)

23

 

27

 

26

 

20

 

24

 

 

22

 

24

 

29

 

37

 

28

 

 

Non-ethane production (Mbbls/d)

21

 

21

 

23

 

22

 

22

 

 

22

 

34

 

63

 

69

 

48

 

 

NGL production (Mbbls/d)

44

 

48

 

49

 

42

 

46

 

 

44

 

58

 

92

 

106

 

76

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes gathering volumes associated with Susquehanna Supply Hub, the Northeast JV, and Utica Supply Hub, all of which are consolidated.

 

(2) Includes 100% of the volumes associated with operated equity-method investments, including the Laurel Mountain Midstream partnership; and the Bradford Supply Hub and a portion of the Marcellus South Supply Hub within the Appalachia Midstream Services partnership. Volumes handled by Blue Racer Midstream (gathering and processing), which we do not operate, are not included.

 

West

 

(UNAUDITED)

 

 

 

2018

 

2019

 

(Dollars in millions)

 

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

4th Qtr

 

Year

 

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

4th Qtr

 

Year

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonregulated gathering & processing fee-based revenue

 

$

386

 

 

$

398

 

 

$

387

 

 

$

335

 

 

$

1,506

 

 

$

319

 

 

$

331

 

 

$

282

 

 

$

276

 

 

$

1,208

 

 

Regulated transportation revenue

 

109

 

 

104

 

 

106

 

 

110

 

 

429

 

 

110

 

 

104

 

 

107

 

 

111

 

 

432

 

 

Other fee revenues

 

36

 

 

32

 

 

40

 

 

41

 

 

149

 

 

44

 

 

42

 

 

44

 

 

41

 

 

171

 

 

Tracked service revenues

 

 

 

1

 

 

 

 

 

 

1

 

 

 

 

1

 

 

 

 

1

 

 

2

 

 

Nonregulated commodity consideration

 

82

 

 

78

 

 

97

 

 

64

 

 

321

 

 

46

 

 

40

 

 

30

 

 

34

 

 

150

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NGL sales from gas processing

 

85

 

 

76

 

 

90

 

 

71

 

 

322

 

 

48

 

 

41

 

 

31

 

 

34

 

 

154

 

 

Marketing sales

 

415

 

 

462

 

 

613

 

 

569

 

 

2,059

 

 

422

 

 

385

 

 

352

 

 

453

 

 

1,612

 

 

Other sales

 

14

 

 

12

 

 

18

 

 

5

 

 

49

 

 

5

 

 

5

 

 

2

 

 

2

 

 

14

 

 

Tracked product sales

 

16

 

 

10

 

 

11

 

 

(19

)

 

18

 

 

4

 

 

3

 

 

4

 

 

6

 

 

17

 

 

Total revenues

 

1,143

 

 

1,173

 

 

1,362

 

 

1,176

 

 

4,854

 

 

998

 

 

952

 

 

852

 

 

958

 

 

3,760

 

 

Segment costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NGL cost of goods sold

 

85

 

 

81

 

 

101

 

 

66

 

 

333

 

 

49

 

 

41

 

 

32

 

 

36

 

 

158

 

 

Marketing cost of goods sold

 

415

 

 

459

 

 

603

 

 

585

 

 

2,062

 

 

419

 

 

388

 

 

345

 

 

437

 

 

1,589

 

 

Other cost of goods sold

 

10

 

 

7

 

 

14

 

 

4

 

 

35

 

 

4

 

 

4

 

 

 

 

2

 

 

10

 

 

Tracked cost of goods sold

 

16

 

 

10

 

 

12

 

 

(20

)

 

18

 

 

3

 

 

4

 

 

5

 

 

5

 

 

17

 

 

Processing commodity expenses

 

30

 

 

20

 

 

26

 

 

40

 

 

116

 

 

31

 

 

19

 

 

13

 

 

16

 

 

79

 

 

Operating and administrative costs

 

193

 

 

215

 

 

200

 

 

166

 

 

774

 

 

166

 

 

180

 

 

166

 

 

159

 

 

671

 

 

Tracked operating and administrative costs

 

 

 

1

 

 

 

 

 

 

1

 

 

 

 

1

 

 

 

 

 

 

1

 

 

Other segment costs and expenses

 

6

 

 

10

 

 

19

 

 

15

 

 

50

 

 

6

 

 

1

 

 

9

 

 

 

 

16

 

 

Impairment of certain assets

 

 

 

 

 

 

 

1,849

 

 

1,849

 

 

12

 

 

64

 

 

 

 

24

 

 

100

 

 

Gain on sale of certain assets and businesses

 

 

 

 

 

 

 

(591

)

 

(591

)

 

2

 

 

 

 

 

 

 

 

2

 

 

Regulatory charges resulting from Tax Reform

 

(7

)

 

 

 

 

 

 

 

(7

)

 

 

 

 

 

 

 

 

 

 

 

Total segment costs and expenses

 

748

 

 

803

 

 

975

 

 

2,114

 

 

4,640

 

 

692

 

 

702

 

 

570

 

 

679

 

 

2,643

 

 

Proportional Modified EBITDA of equity-method investments

 

18

 

 

19

 

 

25

 

 

32

 

 

94

 

 

26

 

 

28

 

 

29

 

 

32

 

 

115

 

 

Modified EBITDA

 

413

 

 

389

 

 

412

 

 

(906

)

 

308

 

 

332

 

 

278

 

 

311

 

 

311

 

 

1,232

 

 

Adjustments

 

(7

)

 

 

 

12

 

 

1,264

 

 

1,269

 

 

14

 

 

78

 

 

2

 

 

25

 

 

119

 

 

Adjusted EBITDA

 

$

406

 

 

$

389

 

 

$

424

 

 

$

358

 

 

$

1,577

 

 

$

346

 

 

$

356

 

 

$

313

 

 

$

336

 

 

$

1,351

 

 

NGL margin

 

$

52

 

 

$

53

 

 

$

60

 

 

$

29

 

 

$

194

 

 

$

14

 

 

$

21

 

 

$

16

 

 

$

16

 

 

$

67

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Statistics for Operated Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gathering and Processing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gathering volumes (Bcf per day) - Consolidated (1)

 

4.58

 

 

4.60

 

 

4.48

 

 

3.44

 

 

4.27

 

 

3.42

 

 

3.53

 

 

3.61

 

 

3.51

 

 

3.52

 

 

Gathering volumes (Bcf per day) - Non-consolidated (2)

 

 

 

 

 

0.15

 

 

0.16

 

 

0.08

 

 

0.17

 

 

0.15

 

 

0.21

 

 

0.27

 

 

0.20

 

 

Plant inlet natural gas volumes (Bcf per day) - Consolidated (1)

 

2.16

 

 

2.12

 

 

2.11

 

 

1.65

 

 

2.01

 

 

1.41

 

 

1.52

 

 

1.56

 

 

1.44

 

 

1.48

 

 

Plant inlet natural gas volumes (Bcf per day) - Non-consolidated (2)

 

 

 

 

 

0.14

 

 

0.17

 

 

0.08

 

 

0.17

 

 

0.14

 

 

0.21

 

 

0.26

 

 

0.08

 

 

Ethane equity sales (Mbbls/d)

 

19.01

 

 

10.23

 

 

12.19

 

 

16.40

 

 

14.44

 

 

14.63

 

 

14.59

 

 

3.32

 

 

5.17

 

 

9.38

 

 

Non-ethane equity sales (Mbbls/d)

 

19.83

 

 

18.80

 

 

19.48

 

 

14.40

 

 

18.12

 

 

12.59

 

 

13.54

 

 

14.02

 

 

11.95

 

 

13.03

 

 

NGL equity sales (Mbbls/d)

 

38.84

 

 

29.03

 

 

31.67

 

 

30.80

 

 

32.56

 

 

27.22

 

 

28.13

 

 

17.34

 

 

17.12

 

 

22.41

 

 

Ethane margin ($/gallon)

 

$

.01

 

 

$

.07

 

 

$

.18

 

 

$

.02

 

 

$

.06

 

 

$

(.03

)

 

$

(.03

)

 

$

(.06

)

 

$

(.10

)

 

$

(.04

)

 

Non-ethane margin ($/gallon)

 

$

.69

 

 

$

.71

 

 

$

.69

 

 

$

.49

 

 

$

.65

 

 

$

.34

 

 

$

.42

 

 

$

.32

 

 

$

.37

 

 

$

.36

 

 

NGL margin ($/gallon)

 

$

.35

 

 

$

.48

 

 

$

.49

 

 

$

.24

 

 

$

.39

 

 

$

.14

 

 

$

.19

 

 

$

.25

 

 

$

.23

 

 

$

.19

 

 

Ethane production (Mbbls/d) - Consolidated (1)

 

31

 

 

26

 

 

28

 

 

29

 

 

28

 

 

29

 

 

22

 

 

9

 

 

11

 

 

18

 

 

Ethane production (Mbbls/d) - Non-consolidated (2)

 

 

 

 

 

 

 

1

 

 

 

 

1

 

 

 

 

2

 

 

3

 

 

1

 

 

Non-ethane production (Mbbls/d) - Consolidated (1)

 

62

 

 

61

 

 

59

 

 

41

 

 

55

 

 

33

 

 

37

 

 

39

 

 

35

 

 

36

 

 

Non-ethane production (Mbbls/d) - Non-consolidated (2)

 

 

 

 

 

5

 

 

5

 

 

3

 

 

6

 

 

1

 

 

16

 

 

19

 

 

11

 

 

NGL production (Mbbls/d)

 

93

 

 

87

 

 

92

 

 

76

 

 

86

 

 

69

 

 

60

 

 

66

 

 

68

 

 

66

 

 

NGL and Crude Transportation volumes (Mbbls) (3)

 

21,263

 

 

21,334

 

 

22,105

 

 

23,049

 

 

87,751

 

 

22,848

 

 

24,465

 

 

22,972

 

 

21,910

 

 

92,195

 

 

Northwest Pipeline LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Throughput (Tbtu)

 

226.1

 

 

188.1

 

 

193.5

 

 

212.3

 

 

820.0

 

 

243.5

 

 

184.6

 

 

179.2

 

 

248.8

 

 

856.1

 

 

Avg. daily transportation volumes (Tbtu)

 

2.5

 

 

2.1

 

 

2.1

 

 

2.3

 

 

2.2

 

 

2.7

 

 

2.0

 

 

1.9

 

 

2.7

 

 

2.3

 

 

Avg. daily firm reserved capacity (Tbtu)

 

3.1

 

 

3.1

 

 

3.1

 

 

3.1

 

 

3.1

 

 

3.1

 

 

3.0

 

 

3.0

 

 

3.0

 

 

3.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Excludes volumes associated with equity-method investments that are not consolidated in our results.

 

(2) Includes 100% of the volumes associated with operated equity-method investments, including the Jackalope Gas Gathering System and Rocky Mountain Midstream.

 

(3) Includes 100% of the volumes associated with operated equity-method investments, including the Overland Pass Pipeline Company and Rocky Mountain Midstream.

Capital Expenditures and Investments

 

(UNAUDITED)

 

 

2018

 

2019

 

(Dollars in millions)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

 

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures:

 

 

 

 

 

 

 

 

 

 

 

 

Atlantic-Gulf

$

764

 

$

746

 

$

549

 

$

359

 

$

2,418

 

 

$

193

 

$

234

 

$

497

 

$

202

 

$

1,126

 

 

Northeast G&P

114

 

104

 

114

 

139

 

471

 

 

152

 

177

 

131

 

74

 

534

 

 

West

69

 

74

 

96

 

93

 

332

 

 

69

 

80

 

153

 

126

 

428

 

 

Other

10

 

9

 

10

 

6

 

35

 

 

8

 

6

 

5

 

2

 

21

 

 

Total (1)

$

957

 

$

933

 

$

769

 

$

597

 

$

3,256

 

 

$

422

 

$

497

 

$

786

 

$

404

 

$

2,109

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchases of investments:

 

 

 

 

 

 

 

 

 

 

 

 

Atlantic-Gulf

$

1

 

$

 

$

5

 

$

 

$

6

 

 

$

 

$

12

 

$

3

 

$

1

 

$

16

 

 

Northeast G&P

20

 

70

 

114

 

58

 

262

 

 

47

 

61

 

34

 

63

 

205

 

 

West

 

 

593

 

271

 

864

 

 

52

 

70

 

82

 

28

 

232

 

 

Total

$

21

 

$

70

 

$

712

 

$

329

 

$

1,132

 

 

$

99

 

$

143

 

$

119

 

$

92

 

$

453

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Summary:

 

 

 

 

 

 

 

 

 

 

 

 

Atlantic-Gulf

$

765

 

$

746

 

$

554

 

$

359

 

$

2,424

 

 

$

193

 

$

246

 

$

500

 

$

203

 

$

1,142

 

 

Northeast G&P

134

 

174

 

228

 

197

 

733

 

 

199

 

238

 

165

 

137

 

739

 

 

West

69

 

74

 

689

 

364

 

1,196

 

 

121

 

150

 

235

 

154

 

660

 

 

Other

10

 

9

 

10

 

6

 

35

 

 

8

 

6

 

5

 

2

 

21

 

 

Total

$

978

 

$

1,003

 

$

1,481

 

$

926

 

$

4,388

 

 

$

521

 

$

640

 

$

905

 

$

496

 

$

2,562

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital investments:

 

 

 

 

 

 

 

 

 

 

 

 

Increases to property, plant, and equipment

$

934

 

$

930

 

$

618

 

$

539

 

$

3,021

 

 

$

418

 

$

559

 

$

730

 

$

316

 

$

2,023

 

 

Purchases of businesses, net of cash acquired

 

 

 

 

 

 

727

 

 

1

 

 

728

 

 

Purchases of investments

21

 

70

 

712

 

329

 

1,132

 

 

99

 

143

 

119

 

92

 

453

 

 

Total

$

955

 

$

1,000

 

$

1,330

 

$

868

 

$

4,153

 

 

$

1,244

 

$

702

 

$

850

 

$

408

 

$

3,204

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Increases to property, plant, and equipment

$

934

 

$

930

 

$

618

 

$

539

 

$

3,021

 

 

$

418

 

$

559

 

$

730

 

$

316

 

$

2,023

 

 

Changes in related accounts payable and accrued liabilities

23

 

3

 

151

 

58

 

235

 

 

4

 

(62

)

56

 

88

 

86

 

 

Capital expenditures

$

957

 

$

933

 

$

769

 

$

597

 

$

3,256

 

 

$

422

 

$

497

 

$

786

 

$

404

 

$

2,109

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contributions from noncontrolling interests

$

3

 

$

8

 

$

2

 

$

2

 

$

15

 

 

$

4

 

$

28

 

$

 

$

4

 

$

36

 

 

Contributions in aid of construction

$

190

 

$

149

 

$

56

 

$

16

 

$

411

 

 

$

10

 

$

8

 

$

7

 

$

27

 

$

52

 

 

Proceeds from sale of businesses, net of cash divested

$

 

$

 

$

 

$

1,296

 

$

1,296

 

 

$

(2

)

$

 

$

 

$

 

$

(2

)

 

Proceeds from sale of partial interest in consolidated subsidiary

$

 

$

 

$

 

$

 

$

 

 

$

 

$

1,330

 

$

 

$

4

 

$

1,334

 

 

Proceeds from disposition of equity-method investments

$

 

$

 

$

 

$

 

$

 

 

$

 

$

485

 

$

 

$

 

$

485

 

 

Non-GAAP Measures

This news release and accompanying materials may include certain financial measures – Adjusted EBITDA, adjusted income (“earnings”), adjusted earnings per share, distributable cash flow and dividend coverage ratio – that are non-GAAP financial measures as defined under the rules of the SEC.

Our segment performance measure, Modified EBITDA, is defined as net income (loss) before income (loss) from discontinued operations, income tax expense, net interest expense, equity earnings from equity-method investments, other net investing income, impairments of equity investments and goodwill, depreciation and amortization expense, and accretion expense associated with asset retirement obligations for nonregulated operations. We also add our proportional ownership share (based on ownership interest) of Modified EBITDA of equity-method investments.

Adjusted EBITDA further excludes items of income or loss that we characterize as unrepresentative of our ongoing operations. Management believes this measure provides investors meaningful insight into results from ongoing operations.

Distributable cash flow is defined as Adjusted EBITDA less maintenance capital expenditures, cash portion of net interest expense, income attributable to or dividends/ distributions paid to noncontrolling interests and cash income taxes, and certain other adjustments that management believes affects the comparability of results. Adjustments for maintenance capital expenditures and cash portion of interest expense include our proportionate share of these items of our equity-method investments. We also calculate the ratio of distributable cash flow to the total cash dividends paid (dividend coverage ratio). This measure reflects Williams’ distributable cash flow relative to its actual cash dividends paid.

This news release is accompanied by a reconciliation of these non-GAAP financial measures to their nearest GAAP financial measures. Management uses these financial measures because they are accepted financial indicators used by investors to compare company performance. In addition, management believes that these measures provide investors an enhanced perspective of the operating performance of assets and the cash that the business is generating.

Neither Adjusted EBITDA, adjusted income, nor distributable cash flow are intended to represent cash flows for the period, nor are they presented as an alternative to net income or cash flow from operations. They should not be considered in isolation or as substitutes for a measure of performance prepared in accordance with United States generally accepted accounting principles.

Reconciliation of Income (Loss) from Continuing Operations Attributable to The Williams Companies, Inc. to Adjusted Income

 

(UNAUDITED)

 

 

2018

 

2019

 

(Dollars in millions, except per-share amounts)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

 

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations attributable to The Williams Companies, Inc. available to common stockholders

$

152

 

$

135

 

$

129

 

$

(572

)

$

(156

)

 

$

194

 

$

310

 

$

220

 

$

138

 

$

862

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations - diluted earnings (loss) per common share (1)

$

.18

 

$

.16

 

$

.13

 

$

(.47

)

$

(.16

)

 

$

.16

 

$

.26

 

$

.18

 

$

.11

 

$

.71

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

Atlantic-Gulf

 

 

 

 

 

 

 

 

 

 

 

 

Constitution Pipeline project development costs

$

2

 

$

1

 

$

1

 

$

 

$

4

 

 

$

 

$

1

 

$

1

 

$

1

 

$

3

 

 

Impairment of certain assets (2)

 

 

 

 

 

 

 

 

 

354

 

354

 

 

Settlement charge from pension early payout program

 

 

 

7

 

7

 

 

 

 

 

 

 

 

Regulatory adjustments resulting from Tax Reform

11

 

(20

)

 

 

(9

)

 

 

 

 

 

 

 

Benefit of regulatory asset associated with increase in Transco’s estimated deferred state income tax rate following WPZ Merger

 

 

(3

)

 

(3

)

 

 

 

 

 

 

 

Share of regulatory charges resulting from Tax Reform for equity-method investments

2

 

 

 

 

2

 

 

 

 

 

 

 

 

Reversal of expenditures capitalized in prior years

 

 

 

 

 

 

 

15

 

 

1

 

16

 

 

Gain on sale of certain Gulf Coast pipeline assets

 

 

 

(81

)

(81

)

 

 

 

 

 

 

 

Gain on asset retirement

 

 

(10

)

(2

)

(12

)

 

 

 

 

 

 

 

Severance and related costs

 

 

 

 

 

 

 

19

 

11

 

2

 

32

 

 

Total Atlantic-Gulf adjustments

15

 

(19

)

(12

)

(76

)

(92

)

 

 

35

 

12

 

358

 

405

 

 

Northeast G&P

 

 

 

 

 

 

 

 

 

 

 

 

Expenses associated with new venture

 

 

 

 

 

 

3

 

6

 

1

 

 

10

 

 

Settlement charge from pension early payout program

 

 

 

4

 

4

 

 

 

 

 

 

 

 

Impairment of certain assets

 

 

 

 

 

 

 

 

 

10

 

10

 

 

Severance and related costs

 

 

 

 

 

 

 

10

 

(3

)

 

7

 

 

Total Northeast G&P adjustments

 

 

 

4

 

4

 

 

3

 

16

 

(2

)

10

 

27

 

 

West

 

 

 

 

 

 

 

 

 

 

 

 

Impairment of certain assets

 

 

 

1,849

 

1,849

 

 

12

 

64

 

 

24

 

100

 

 

Settlement charge from pension early payout program

 

 

 

6

 

6

 

 

 

 

 

 

 

 

Regulatory adjustments resulting from Tax Reform

(7

)

 

 

 

(7

)

 

 

 

 

 

 

 

Charge for regulatory liability associated with the decrease in Northwest Pipeline’s estimated deferred state income tax rates following WPZ Merger

 

 

12

 

 

12

 

 

 

 

 

 

 

 

Gain on sale of Four Corners assets

 

 

 

(591

)

(591

)

 

2

 

 

 

 

2

 

 

Severance and related costs

 

 

 

 

 

 

 

14

 

2

 

1

 

17

 

 

Total West adjustments

(7

)

 

12

 

1,264

 

1,269

 

 

14

 

78

 

2

 

25

 

119

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

Loss on early retirement of debt

7

 

 

 

 

7

 

 

 

 

 

 

 

 

Impairment of certain assets

 

66

 

 

 

66

 

 

 

 

 

 

 

 

Settlement charge from pension early payout program

 

 

 

5

 

5

 

 

 

 

 

 

 

 

Regulatory adjustments resulting from Tax Reform

 

1

 

 

 

1

 

 

 

 

 

 

 

 

(Benefit) adjustment of regulatory assets associated with increase in Transco’s estimated deferred state income tax rate following WPZ Merger

 

 

(45

)

 

(45

)

 

12

 

 

 

 

12

 

 

WPZ Merger costs

 

4

 

15

 

1

 

20

 

 

 

 

 

 

 

 

Gain on sale of certain Gulf Coast pipeline systems

 

 

 

(20

)

(20

)

 

 

 

 

 

 

 

Charitable contribution of preferred stock to Williams Foundation

 

 

35

 

 

35

 

 

 

 

 

 

 

 

Accrual for loss contingencies associated with former operations

 

 

 

 

 

 

 

 

9

 

(5

)

4

 

 

Severance and related costs

 

 

 

 

 

 

 

 

 

1

 

1

 

 

Total Other adjustments

7

 

71

 

5

 

(14

)

69

 

 

12

 

 

9

 

(4

)

17

 

 

Adjustments included in Modified EBITDA

15

 

52

 

5

 

1,178

 

1,250

 

 

29

 

129

 

21

 

389

 

568

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments below Modified EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

Gain on deconsolidation of Jackalope interest

 

(62

)

 

 

(62

)

 

 

 

 

 

 

 

Gain on deconsolidation of certain Permian assets

 

 

 

(141

)

(141

)

 

2

 

 

 

 

2

 

 

Loss on deconsolidation of Constitution

 

 

 

 

 

 

 

 

 

27

 

27

 

 

Impairment of equity-method investments

 

 

 

32

 

32

 

 

74

 

(2

)

114

 

 

186

 

 

Gain on sale of equity-method investments

 

 

 

 

 

 

 

(122

)

 

 

(122

)

 

Allocation of adjustments to noncontrolling interests

(5

)

21

 

 

 

16

 

 

 

(1

)

 

(210

)

(211

)

 

 

(5

)

(41

)

 

(109

)

(155

)

 

76

 

(125

)

114

 

(183

)

(118

)

 

Total adjustments

10

 

11

 

5

 

1,069

 

1,095

 

 

105

 

4

 

135

 

206

 

450

 

 

Less tax effect for above items

(3

)

(3

)

(1

)

(267

)

(274

)

 

(26

)

(1

)

(34

)

(51

)

(112

)

 

Adjustments for tax-related items (3)

 

 

110

 

 

110

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted income from continuing operations available to common stockholders

$

159

 

$

143

 

$

243

 

$

230

 

$

775

 

 

$

273

 

$

313

 

$

321

 

$

293

 

$

1,200

 

 

Adjusted income from continuing operations - diluted earnings per common share (1)

$

.19

 

$

.17

 

$

.24

 

$

.19

 

$

.79

 

 

$

.22

 

$

.26

 

$

.26

 

$

.24

 

$

.99

 

 

Weighted-average shares - diluted (thousands)

830,197

 

830,107

 

1,026,504

 

1,212,822

 

976,097

 

 

1,213,592

 

1,214,065

 

1,214,165

 

1,214,212

 

1,214,011

 

 

(1) The sum of earnings per share for the