Williams Delivers Another Year of Record Results; Company to Host Analyst Day Event Today Starting at 8:30 a.m. ET

TULSA, Okla.--()--Williams (NYSE: WMB) today announced its unaudited financial results for the three and 12 months ended December 31, 2023.

Continued strength in base business drives higher financial results

  • GAAP net income of $3.273 billion, or $2.68 per diluted share (EPS) – up 60% vs. 2022
  • Adjusted net income of $2.334 billion, or $1.91 per diluted share (Adj. EPS) – up 5% vs. 2022
  • Adjusted EBITDA of $6.779 billion – up $361 million or 6% vs. 2022
  • Cash flow from operations (CFFO) of $6.055 billion – up $1.166 billion or 24% vs. 2022
  • Available funds from operations (AFFO) of $5.213 billion – up $295 million or 6% vs. 2022
  • Dividend coverage ratio of 2.39x (AFFO basis)
  • Record gathering volumes of nearly 18 Bcf/d and contracted transmission capacity of 32.3 Bcf/d – up 6% and 32%, respectively, from 2022
  • Adjusted EBITDA guidance range of $6.8 billion to $7.1 billion in 2024 and $7.2 billion to $7.6 billion in 2025, yielding an expected 5-year CAGR of 8%
  • Ended year with 3.58x leverage ratio
  • Raised dividend by 6.1% to $1.90 annualized; hit 50 consecutive years of dividend payments

Transmission projects driving additional business growth in 2024-25; strategic acquisitions add highly contracted take-or-pay transmission and fee-based storage assets

  • Pre-filed FERC application for Transco's 1.6 Bcf/d Southeast Supply Enhancement 1Q 2024
  • Received FERC certificates for Transco's Commonwealth Energy Connectors, Southside Reliability Enhancement, Southeast Energy Connector and Texas to Louisiana Energy Pathway
  • Placed Transco's Carolina Market Link in service in 1Q 2024
  • Placed phase one of Transco's Regional Energy Access expansion in service in 4Q 2023 ahead of schedule with remainder expected by 4Q 2024
  • Completed Cardinal and Susquehanna gathering & processing expansions in 4Q 2023
  • Acquired 115-Bcf natural gas storage portfolio, positioning Williams as the largest storage owner on the Gulf Coast as storage spreads and natural gas volatility continue to expand
  • Optimized DJ Basin position with transactions to enhance natural gas and NGL value chain
  • Added more than 8 Bcf/d of transmission capacity and 56 Bcf of gas storage with MountainWest acquisition in the Rockies serving western markets

CEO Perspective

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

“Our natural gas-focused strategy delivered excellent financial results again in 2023 with contracted transmission capacity, gathering volumes and Adjusted EBITDA surpassing previous highs, demonstrating our ability to grow despite low natural gas prices. We expect this strong performance to continue in 2024 and have set our Adjusted EBITDA guidance midpoint at $6.95 billion, paving the way for what we anticipate will be a breakout year in 2025 as several large fee-based projects come online.

"In addition to outstanding financial results in 2023, we acquired strategic natural gas transmission, gathering and storage assets in the Rockies and on the Gulf Coast, enhancing our footprint in key areas and adding highly contracted take-or-pay transmission and fee-based storage assets to our business. We also continue to expand our existing infrastructure with 18 high-return projects in execution, including approximately 3.1 Bcf/d of expansions on Transco coming online over the next few years. I’m extremely proud of our teams for their commitment to best-in-class project execution in what has become a complex and challenging permitting environment for energy infrastructure of all types."

Armstrong added, “Looking ahead, Williams is excited to provide additional natural gas solutions to support the reliability of the U.S. power sector as it faces growing regional demand driven in large part by the emergence of new, large-scale data centers that are accelerating throughout our key markets. With the buildout of electrification and renewables, as well as previously permitted LNG export growth, Williams will be there to provide additional natural gas baseload to ensure reliability. Our infrastructure today is vital to meeting the energy needs of tomorrow. Natural gas is an immediate and scalable climate solution to reduce global emissions and serve the growing need for energy security, while creating long-term value for our shareholders.”

Williams Summary Financial Information

4Q

 

Full Year

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

2023

2022

 

2023

2022

 

 

 

 

 

 

GAAP Measures

 

 

 

 

 

Net Income

$1,146

$668

 

$3,273

$2,046

Net Income Per Share

$0.94

$0.55

 

$2.68

$1.67

Cash Flow From Operations

$1,930

$1,219

 

$6,055

$4,889

 

 

 

 

 

 

Non-GAAP Measures (1)

 

 

 

 

 

Adjusted EBITDA

$1,721

$1,774

 

$6,779

$6,418

Adjusted Net Income

$588

$653

 

$2,334

$2,228

Adjusted Earnings Per Share

$0.48

$0.53

 

$1.91

$1.82

Available Funds from Operations

$1,323

$1,357

 

$5,213

$4,918

Dividend Coverage Ratio

2.43x

2.62x

 

2.39x

2.37x

 

 

 

 

 

 

Other

 

 

 

 

 

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

3.58x

3.55x

 

 

 

Capital Investments (Excluding Acquisitions) (3) (4)

$666

$876

 

$2,711

$2,147

 

 

 

 

 

 

(1) Schedules reconciling Adjusted Net Income, Adjusted EBITDA, Available Funds from Operations and Dividend 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) 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 include increases to property, plant, and equipment (growth & maintenance capital),purchases of and contributions to equity-method investments and purchases of other long-term investments.

(4) Fourth-quarter and full-year 2023 capital excludes $544 million for the DJ Basin acquisitions, which closed in November 2023. Full-year 2023 capital excludes $1.024 billion for the acquisition of MountainWest Pipeline Holding company, which closed February 14, 2023. Full-year 2022 capital excludes $424 million for the purchase of NorTex Midstream, which closed August 31, 2022. Full-year 2022 capital also excludes $933 million for purchase of the Trace Midstream Haynesville gathering assets, which closed April 29, 2022.

GAAP Measures

Fourth-quarter 2023 net income increased by $478 million compared to the prior year driven by a $534 million gain related to the net cash received from the favorable resolution of litigation with Energy Transfer. The improvement also reflects a favorable change of $147 million in net unrealized gains/losses on commodity derivatives and higher service revenues driven by recent acquisitions and expansion projects. These improvements were partially offset by lower gas marketing margins reflecting the absence of favorable severe winter weather impacts in the prior year, lower results from our upstream business, and higher depreciation and operating expenses resulting from acquisitions. The income tax provision increased $114 million primarily due to higher pretax income.

Full-year 2023 net income increased $1.2 billion compared to the prior year reflecting a favorable change of $909 million in net unrealized gains/losses on commodity derivatives, the previously described $534 million net litigation gain, and higher service revenues driven by recent acquisitions, expansion projects, and increased Northeast G&P volumes and rates. The improvement also included a $129 million gain on the sale of the Bayou Ethane system in 2023, partially offset by lower results from our upstream business, and higher depreciation and operating expenses resulting from acquisitions. The income tax provision increased $580 million primarily due to higher pretax income and the absence of $134 million benefit associated with the release of valuation allowances on deferred income tax assets and federal income tax settlements recorded in the prior year, and a lower benefit associated with decreases in our estimate of the state deferred income tax rate in both periods. The 2023 period also reported a loss from discontinued operations associated with an adverse legal ruling involving former refinery operations.

Cash flow from operations for the fourth quarter increased compared to the prior year primarily due to $534 million of net cash received related to the favorable Energy Transfer litigation outcome and favorable net changes in working capital. Full-year cash flow from operations increased compared to the prior year reflecting similar drivers, as well as favorable changes in derivative margin requirements partially offset by lower distributions from certain equity-method investments.

Non-GAAP Measures

Fourth-quarter 2023 Adjusted EBITDA decreased by $53 million from the prior year, driven by the previously described higher service revenues, more than offset by lower gas marketing margins, reduced upstream results and higher operating costs. Full-year 2023 Adjusted EBITDA increased by $361 million over the prior year, driven by the previously described higher service revenues, partially offset by reduced upstream results and higher operating costs.

Fourth-quarter 2023 Adjusted Net Income decreased by $65 million compared to the prior year, driven by the previously described impacts to net income, adjusted primarily to remove the net litigation gain, net unrealized gains/losses on commodity derivatives, and the related tax effects of these adjustments. Full-year Adjusted Net Income increased by $106 million over the prior year driven by the previously described impacts to net income from continuing operations, adjusted primarily for the litigation gain, net unrealized gains/losses on commodity derivatives, the gain on the sale of the Bayou Ethane system, amortization of certain assets from the Sequent acquisition, and the related tax effects of these adjustments as well as excluding the impact of the previously described prior year favorable income tax benefits.

Fourth-quarter 2023 Available Funds From Operations (AFFO) decreased slightly by $34 million compared to the prior year primarily due to lower operating results exclusive of noncash items. Full-year 2023 AFFO increased by $295 million primarily reflecting higher results from continuing operations exclusive of non-cash items partially offset by lower distributions from certain equity method investments.

Business Segment Results & Form 10-K

Williams' operations are comprised of the following reportable segments: Transmission & Gulf of Mexico, Northeast G&P, West and Gas & NGL Marketing Services, as well as Other. For more information, see the company's 2023 Form 10-K.

 

Fourth Quarter

 

Full Year

Amounts in millions

Modified EBITDA

 

Adjusted EBITDA

 

Modified EBITDA

 

Adjusted EBITDA

4Q 2023

4Q 2022

Change

 

4Q 2023

4Q 2022

Change

 

2023

2022

Change

 

2023

2022

Change

Transmission & Gulf of Mexico

$741

$687

$54

 

$752

$700

$52

 

$3,068

$2,674

$394

 

$2,982

$2,720

$262

Northeast G&P

477

464

13

 

485

464

21

 

1,916

1,796

120

 

1,955

1,796

159

West

307

326

(19)

 

323

326

(3)

 

1,238

1,211

27

 

1,236

1,219

17

Gas & NGL Marketing Services

272

209

63

 

69

149

(80)

 

950

(40)

990

 

300

258

42

Other

645

150

495

 

92

135

(43)

 

841

434

407

 

306

425

(119)

Total

$2,442

$1,836

$606

 

$1,721

$1,774

($53)

 

$8,013

$6,075

$1,938

 

$6,779

$6,418

$361

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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.

Transmission & Gulf of Mexico

Fourth-quarter 2023 Modified and Adjusted EBITDA improved compared to the prior year driven by the MountainWest acquisition. Modified EBITDA for full-year 2023 was further impacted by the gain on the sale of the Bayou Ethane system, benefits from the NorTex acquisition and expansion projects, increased benefit of allowance for equity funds used during construction, and one-time MountainWest acquisition and transition costs, while 2022 included a loss related to Eminence storage cavern abandonments and a regulatory charge associated with Transco’s deferred state income tax rate. The gain on sale, MountainWest acquisition and transition costs, Eminence abandonment costs, and Transco’s regulatory charge are all excluded from Adjusted EBITDA.

Northeast G&P

Fourth-quarter and full-year 2023 Modified and Adjusted EBITDA improved reflecting increased rates and volumes driven by the Ohio Valley, Cardinal, and Susquehanna operations. For our joint ventures, the full-year benefits of higher volumes and rates at Marcellus South and higher volumes at Blue Racer were more than offset by lower rates and volumes at Laurel Mountain Midstream and Bradford compared to the prior year. Modified EBITDA for full-year 2023 also reflects our share of a loss contingency accrual at Aux Sable which is excluded from Adjusted EBITDA.

West

Fourth-quarter 2023 Modified and Adjusted EBITDA decreased compared to the prior year primarily reflecting lower NYMEX-based rates in the Barnett partially offset by benefits from the DJ Basin Acquisitions. Full-year Modified and Adjusted EBITDA improved compared to the prior year driven by benefits from the DJ Basin and Trace Midstream Acquisitions and higher volumes at our Overland Pass joint venture. Favorable changes in operating and administrative costs were more than offset by lower processing margins reflecting a short-term gas price spike at Opal early in the year and severe weather impacts and lower service revenues reflecting lower NYMEX-based rates in the Barnett partially offset by favorable changes in realized gains on natural gas hedges and higher Haynesville volumes.

Gas & NGL Marketing Services

Fourth-quarter 2023 Modified EBITDA improved from the prior year primarily reflecting a $142 million net favorable change in unrealized gains/losses on commodity derivatives partially offset by lower gas marketing margins reflecting the absence of favorable severe winter weather impacts in the prior year. Full-year 2023 Modified EBITDA improved from the prior year primarily reflecting a $933 million net favorable change in unrealized gains/losses on commodity derivatives and higher commodity marketing margins reflecting reduced levels of inventory write-downs partially offset by the previously discussed lower gas marketing margins. The unrealized gains/losses on commodity derivatives are excluded from Adjusted EBITDA.

Other

Fourth-quarter and full-year 2023 Modified EBITDA increased compared to the prior year primarily reflecting the $534 million gain from the net cash received from the favorable resolution of our litigation with Energy Transfer, partially offset by lower results from our upstream business driven by lower prices, partially offset by higher production volumes. The full-year comparison also reflects a $24 million unfavorable change in unrealized gains/losses on commodity derivatives. Adjusted EBITDA for both comparative periods was lower and excludes the favorable litigation gain and the effects of changes in unrealized gains/losses on commodity derivatives.

Financial Guidance

The company expects 2024 Adjusted EBITDA between $6.8 billion and $7.1 billion. The company also expects 2024 growth capex between $1.45 billion and $1.75 billion and maintenance capex between $1.1 billion and $1.3 billion, which includes capital of $350 million based on midpoint for emissions reduction and modernization initiatives. For 2025, the company expects Adjusted EBITDA between $7.2 billion and $7.6 billion with growth capex between $1.65 billion and $1.95 billion and maintenance capex between $750 million and $850 million, which includes capital of $100 million based on midpoint for emissions reduction and modernization initiatives. Williams anticipates a leverage ratio midpoint for 2024 of 3.85x and has increased the dividend by 6.1% on an annualized basis to $1.90 in 2024 from $1.79 in 2023.

Williams 2024 Analyst Day Scheduled for Today, Materials to be Posted Shortly

Williams is hosting its 2024 Analyst Day event this morning, beginning at 8:30 a.m. Eastern Time (7:30 a.m. Central Time). In addition to discussing 2023 results, Williams' management will give in-depth presentations covering the company's natural gas infrastructure strategy designed to meet growing clean energy demands. These presentations will highlight the company’s efficient operations, disciplined project execution, strong financial position and financial guidance. Presentation slides and earnings materials will be accessible on the Williams’ Investor Relations website shortly.

Participants who wish to view the live presentation can access the webcast here: https://wmb.link/73f

A replay of the 2024 Analyst Day webcast will also be available on the website for at least 90 days following the event.

About Williams

Williams (NYSE: WMB) is a trusted energy industry leader committed to safely, reliably, and responsibly meeting growing energy demand. We use our 33,000-mile pipeline infrastructure to move a third of the nation’s natural gas to where it's needed most, supplying the energy used to heat our homes, cook our food and generate low-carbon electricity. For over a century, we’ve been driven by a passion for doing things the right way. Today, our team of problem solvers is leading the charge into the clean energy future – by powering the global economy while delivering immediate emissions reductions within our natural gas network and investing in new energy technologies. Learn more at www.williams.com.

The Williams Companies, Inc.

Consolidated Statement of Income

(Unaudited)

 

 

 

Year Ended December 31,

 

 

 

2023

 

 

 

2022

 

 

 

2021

 

 

(Millions, except per-share amounts)

Revenues:

 

 

 

 

 

 

Service revenues

 

$

7,026

 

 

$

6,536

 

 

$

6,001

 

Service revenues – commodity consideration

 

 

146

 

 

 

260

 

 

 

238

 

Product sales

 

 

2,779

 

 

 

4,556

 

 

 

4,536

 

Net gain (loss) from commodity derivatives

 

 

956

 

 

 

(387

)

 

 

(148

)

Total revenues

 

 

10,907

 

 

 

10,965

 

 

 

10,627

 

Costs and expenses:

 

 

 

 

 

 

Product costs

 

 

1,884

 

 

 

3,369

 

 

 

3,931

 

Net processing commodity expenses

 

 

151

 

 

 

88

 

 

 

101

 

Operating and maintenance expenses

 

 

1,984

 

 

 

1,817

 

 

 

1,548

 

Depreciation and amortization expenses

 

 

2,071

 

 

 

2,009

 

 

 

1,842

 

Selling, general, and administrative expenses

 

 

665

 

 

 

636

 

 

 

558

 

Gain on sale of business

 

 

(129

)

 

 

 

 

 

 

Other (income) expense – net

 

 

(30

)

 

 

28

 

 

 

16

 

Total costs and expenses

 

 

6,596

 

 

 

7,947

 

 

 

7,996

 

Operating income (loss)

 

 

4,311

 

 

 

3,018

 

 

 

2,631

 

Equity earnings (losses)

 

 

589

 

 

 

637

 

 

 

608

 

Other investing income (loss) – net

 

 

108

 

 

 

16

 

 

 

7

 

Interest expense.

 

 

(1,236

)

 

 

(1,147

)

 

 

(1,179

)

Net gain from Energy Transfer litigation judgment

 

 

534

 

 

 

 

 

 

 

Other income (expense) – net

 

 

99

 

 

 

18

 

 

 

6

 

Income (loss) before income taxes

 

 

4,405

 

 

 

2,542

 

 

 

2,073

 

Less: Provision (benefit) for income taxes

 

 

1,005

 

 

 

425

 

 

 

511

 

Income (loss) from continuing operations

 

 

3,400

 

 

 

2,117

 

 

 

1,562

 

Income (loss) from discontinued operations

 

 

(97

)

 

 

 

 

 

 

Net income (loss)

 

 

3,303

 

 

 

2,117

 

 

 

1,562

 

Less: Net income (loss) attributable to noncontrolling interests

 

 

124

 

 

 

68

 

 

 

45

 

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

 

 

3,179

 

 

 

2,049

 

 

 

1,517

 

Less: Preferred stock dividends

 

 

3

 

 

 

3

 

 

 

3

 

Net income (loss) available to common stockholders

 

$

3,176

 

 

$

2,046

 

 

$

1,514

 

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

 

 

 

 

 

 

Income (loss) from continuing operations

 

$

3,273

 

 

$

2,046

 

 

$

1,514

 

Income (loss) from discontinued operations

 

 

(97

)

 

 

 

 

 

 

Net income (loss) available to common stockholders

 

$

3,176

 

 

$

2,046

 

 

$

1,514

 

Basic earnings (loss) per common share:

 

 

 

 

 

 

Income (loss) from continuing operations

 

$

2.69

 

 

$

1.68

 

 

$

1.25

 

Income (loss) from discontinued operations

 

 

(.08

)

 

 

 

 

 

 

Net income (loss) available to common stockholders

 

$

2.61

 

 

$

1.68

 

 

$

1.25

 

Weighted-average shares (thousands)

 

 

1,217,784

 

 

 

1,218,362

 

 

 

1,215,221

 

Diluted earnings (loss) per common share:

 

 

 

 

 

 

Income (loss) from continuing operations

 

$

2.68

 

 

$

1.67

 

 

$

1.24

 

Income (loss) from discontinued operations

 

 

(.08

)

 

 

 

 

 

 

Net income (loss) available to common stockholders

 

$

2.60

 

 

$

1.67

 

 

$

1.24

 

Weighted-average shares (thousands)

 

 

1,222,715

 

 

 

1,222,672

 

 

 

1,218,215

 

The Williams Companies, Inc.

Consolidated Balance Sheet

(Unaudited)

 

 

 

December 31,

 

 

 

2023

 

 

 

2022

 

 

 

(Millions, except per-share amounts)

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

2,150

 

 

$

152

 

Trade accounts and other receivables (net of allowance of $3 at December 31, 2023 and $6 at December 31, 2022)

 

 

1,655

 

 

 

2,723

 

Inventories

 

 

274

 

 

 

320

 

Derivative assets

 

 

239

 

 

 

323

 

Other current assets and deferred charges

 

 

195

 

 

 

279

 

Total current assets

 

 

4,513

 

 

 

3,797

 

 

 

 

 

 

Investments

 

 

4,637

 

 

 

5,065

 

Property, plant, and equipment – net

 

 

34,311

 

 

 

30,889

 

Intangible assets – net of accumulated amortization

 

 

7,593

 

 

 

7,363

 

Regulatory assets, deferred charges, and other

 

 

1,573

 

 

 

1,319

 

Total assets

 

$

52,627

 

 

$

48,433

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

1,379

 

 

$

2,327

 

Derivative liabilities

 

 

105

 

 

 

316

 

Accrued and other current liabilities

 

 

1,284

 

 

 

1,270

 

Commercial paper

 

 

725

 

 

 

350

 

Long-term debt due within one year

 

 

2,337

 

 

 

627

 

Total current liabilities

 

 

5,830

 

 

 

4,890

 

 

 

 

 

 

Long-term debt

 

 

23,376

 

 

 

21,927

 

Deferred income tax liabilities

 

 

3,846

 

 

 

2,887

 

Regulatory liabilities, deferred income, and other

 

 

4,684

 

 

 

4,684

 

Contingent liabilities and commitments

 

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

Stockholders’ equity:

 

 

 

 

Preferred stock ($1 par value; 30 million shares authorized at December 31, 2023 and December 31, 2022; 35,000 shares issued at December 31, 2023 and December 31, 2022)

 

 

35

 

 

 

35

 

Common stock ($1 par value; 1,470 million shares authorized at December 31, 2023 and December 31, 2022; 1,256 million shares issued at December 31, 2023 and 1,253 million shares issued at December 31, 2022)

 

 

1,256

 

 

 

1,253

 

Capital in excess of par value

 

 

24,578

 

 

 

24,542

 

Retained deficit

 

 

(12,287

)

 

 

(13,271

)

Accumulated other comprehensive income (loss)

 

 

 

 

 

(24

)

Treasury stock, at cost (39 million shares at December 31, 2023 and 35 million shares at December 31, 2022 of common stock)

 

 

(1,180

)

 

 

(1,050

)

Total stockholders’ equity

 

 

12,402

 

 

 

11,485

 

Noncontrolling interests in consolidated subsidiaries

 

 

2,489

 

 

 

2,560

 

Total equity

 

 

14,891

 

 

 

14,045

 

Total liabilities and equity

 

$

52,627

 

 

$

48,433

 

The Williams Companies, Inc.

Consolidated Statement of Cash Flows

(Unaudited)

 

 

 

Year Ended December 31,

 

 

 

2023

 

 

 

2022

 

 

 

2021

 

 

 

(Millions)

OPERATING ACTIVITIES:

 

 

 

 

 

 

Net income (loss)

 

$

3,303

 

 

$

2,117

 

 

$

1,562

 

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

 

 

 

 

 

 

Depreciation and amortization

 

 

2,071

 

 

 

2,009

 

 

 

1,842

 

Provision (benefit) for deferred income taxes

 

 

951

 

 

 

431

 

 

 

509

 

Equity (earnings) losses

 

 

(589

)

 

 

(637

)

 

 

(608

)

Distributions from equity-method investees

 

 

796

 

 

 

865

 

 

 

757

 

Net unrealized (gain) loss from commodity derivative instruments

 

 

(660

)

 

 

249

 

 

 

109

 

Gain on sale of business

 

 

(129

)

 

 

 

 

 

 

Inventory write-downs

 

 

30

 

 

 

161

 

 

 

15

 

Amortization of stock-based awards

 

 

77

 

 

 

73

 

 

 

81

 

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

 

 

 

 

 

 

Accounts receivable

 

 

1,089

 

 

 

(733

)

 

 

(545

)

Inventories

 

 

13

 

 

 

(110

)

 

 

(139

)

Other current assets and deferred charges

 

 

60

 

 

 

(33

)

 

 

(63

)

Accounts payable

 

 

(892

)

 

 

410

 

 

 

643

 

Accrued and other current liabilities

 

 

(19

)

 

 

209

 

 

 

58

 

Changes in current and noncurrent commodity derivative assets and

 

 

200

 

 

 

94

 

 

 

(277

)

Other, including changes in noncurrent assets and liabilities

 

 

(246

)

 

 

(216

)

 

 

1

 

Net cash provided (used) by operating activities

 

 

6,055

 

 

 

4,889

 

 

 

3,945

 

FINANCING ACTIVITIES:

 

 

 

 

 

 

Proceeds from (payments of) commercial paper – net

 

 

372

 

 

 

345

 

 

 

 

Proceeds from long-term debt

 

 

2,755

 

 

 

1,755

 

 

 

2,155

 

Payments of long-term debt

 

 

(634

)

 

 

(2,876

)

 

 

(894

)

Proceeds from issuance of common stock

 

 

6

 

 

 

54

 

 

 

9

 

Purchases of treasury stock

 

 

(130

)

 

 

(9

)

 

 

 

Common dividends paid

 

 

(2,179

)

 

 

(2,071

)

 

 

(1,992

)

Dividends and distributions paid to noncontrolling interests

 

 

(213

)

 

 

(204

)

 

 

(187

)

Contributions from noncontrolling interests

 

 

18

 

 

 

18

 

 

 

9

 

Payments for debt issuance costs

 

 

(23

)

 

 

(17

)

 

 

(26

)

Other – net

 

 

(21

)

 

 

(37

)

 

 

(16

)

Net cash provided (used) by financing activities

 

 

(49

)

 

 

(3,042

)

 

 

(942

)

INVESTING ACTIVITIES:

 

 

 

 

 

 

Property, plant, and equipment:

 

 

 

 

 

 

Capital expenditures (1)

 

 

(2,633

)

 

 

(2,253

)

 

 

(1,239

)

Dispositions - net

 

 

(51

)

 

 

(30

)

 

 

(8

)

Proceeds from sale of business

 

 

346

 

 

 

 

 

 

 

Purchases of businesses, net of cash acquired

 

 

(1,568

)

 

 

(933

)

 

 

(151

)

Purchases of and contributions to equity-method investments

 

 

(141

)

 

 

(166

)

 

 

(115

)

Other – net

 

 

39

 

 

 

7

 

 

 

48

 

Net cash provided (used) by investing activities

 

 

(4,008

)

 

 

(3,375

)

 

 

(1,465

)

Increase (decrease) in cash and cash equivalents

 

 

1,998

 

 

 

(1,528

)

 

 

1,538

 

Cash and cash equivalents at beginning of year

 

 

152

 

 

 

1,680

 

 

 

142

 

Cash and cash equivalents at end of year

 

$

2,150

 

 

$

152

 

 

$

1,680

 

_________

 

 

 

 

 

 

(1) Increases to property, plant, and equipment.

 

$

(2,564

)

 

$

(2,394

)

 

$

(1,305

)

Changes in related accounts payable and accrued liabilities

 

 

(69

)

 

 

141

 

 

 

66

 

Capital expenditures

 

$

(2,633

)

 

$

(2,253

)

 

$

(1,239

)

Transmission & Gulf of Mexico

 

(UNAUDITED)

 

 

2022

 

2023

 

(Dollars in millions)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

 

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

 

Regulated interstate natural gas transportation, storage, and other revenues (1)

$

730

 

$

717

 

$

734

 

$

758

 

$

2,939

 

 

$

774

 

$

786

 

$

794

 

$

822

 

$

3,176

 

 

Gathering, processing, storage and transportation revenues

 

82

 

 

84

 

 

99

 

 

100

 

 

365

 

 

 

100

 

 

104

 

 

114

 

 

100

 

 

418

 

 

Other fee revenues (1)

 

5

 

 

5

 

 

4

 

 

7

 

 

21

 

 

 

6

 

 

8

 

 

5

 

 

4

 

 

23

 

 

Commodity margins

 

15

 

 

11

 

 

10

 

 

7

 

 

43

 

 

 

10

 

 

8

 

 

7

 

 

8

 

 

33

 

 

Net unrealized gain (loss) from derivative instruments

 

 

 

 

 

1

 

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating and administrative costs (1)

 

(202

)

 

(227

)

 

(238

)

 

(239

)

 

(906

)

 

 

(254

)

 

(254

)

 

(257

)

 

(270

)

 

(1,035

)

 

Other segment income (expenses) - net (1)

 

19

 

 

17

 

 

(22

)

 

5

 

 

19

 

 

 

26

 

 

31

 

 

36

 

 

26

 

 

119

 

 

Gain on sale of business

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

130

 

 

(1

)

 

129

 

 

Proportional Modified EBITDA of equity-method investments

 

48

 

 

45

 

 

50

 

 

50

 

 

193

 

 

 

53

 

 

48

 

 

52

 

 

52

 

 

205

 

 

Modified EBITDA

 

697

 

 

652

 

 

638

 

 

687

 

 

2,674

 

 

 

715

 

 

731

 

 

881

 

 

741

 

 

3,068

 

 

Adjustments

 

 

 

 

 

33

 

 

13

 

 

46

 

 

 

13

 

 

17

 

 

(127

)

 

11

 

 

(86

)

 

Adjusted EBITDA

$

697

 

$

652

 

$

671

 

$

700

 

$

2,720

 

 

$

728

 

$

748

 

$

754

 

$

752

 

$

2,982

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Statistics for Operated Assets

 

 

 

 

 

 

 

 

 

 

 

 

Natural Gas Transmission (2)

 

 

 

 

 

 

 

 

 

 

 

 

Transcontinental Gas Pipe Line

 

 

 

 

 

 

 

 

 

 

 

 

Avg. daily transportation volumes (MMdth)

 

15.0

 

 

13.5

 

 

14.7

 

 

14.2

 

 

14.4

 

 

 

14.3

 

 

13.2

 

 

14.0

 

 

14.0

 

 

13.9

 

 

Avg. daily firm reserved capacity (MMdth)

 

19.3

 

 

19.1

 

 

19.2

 

 

19.3

 

 

19.2

 

 

 

19.5

 

 

19.4

 

 

19.4

 

 

19.3

 

 

19.4

 

 

Northwest Pipeline LLC

 

 

 

 

 

 

 

 

 

 

 

 

Avg. daily transportation volumes (MMdth)

 

2.8

 

 

2.1

 

 

2.0

 

 

2.9

 

 

2.5

 

 

 

3.1

 

 

2.3

 

 

2.3

 

 

2.8

 

 

2.6

 

 

Avg. daily firm reserved capacity (MMdth)

 

3.8

 

 

3.8

 

 

3.8

 

 

3.8

 

 

3.8

 

 

 

3.8

 

 

3.8

 

 

3.8

 

 

3.8

 

 

3.8

 

 

MountainWest (3)

 

 

 

 

 

 

 

 

 

 

 

 

Avg. daily transportation volumes (MMdth)

 

 

 

 

 

 

 

 

 

 

 

 

4.2

 

 

3.2

 

 

3.8

 

 

4.2

 

 

3.9

 

 

Avg. daily firm reserved capacity (MMdth)

 

 

 

 

 

 

 

 

 

 

 

 

7.8

 

 

7.5

 

 

7.5

 

 

7.9

 

 

7.7

 

 

Gulfstream - Non-consolidated

 

 

 

 

 

 

 

 

 

 

 

 

Avg. daily transportation volumes (MMdth)

 

0.9

 

 

1.3

 

 

1.4

 

 

1.1

 

 

1.3

 

 

 

1.0

 

 

1.2

 

 

1.4

 

 

1.1

 

 

1.2

 

 

Avg. daily firm reserved capacity (MMdth)

 

1.3

 

 

1.3

 

 

1.4

 

 

1.4

 

 

1.4

 

 

 

1.4

 

 

1.4

 

 

1.4

 

 

1.4

 

 

1.4

 

 

Gathering, Processing, and Crude Oil Transportation

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated (4)

 

 

 

 

 

 

 

 

 

 

 

 

Gathering volumes (Bcf/d)

 

0.30

 

 

0.28

 

 

0.29

 

 

0.28

 

 

0.29

 

 

 

0.28

 

 

0.23

 

 

0.27

 

 

0.27

 

 

0.26

 

 

Plant inlet natural gas volumes (Bcf/d)

 

0.48

 

 

0.46

 

 

0.49

 

 

0.46

 

 

0.47

 

 

 

0.43

 

 

0.40

 

 

0.46

 

 

0.46

 

 

0.44

 

 

NGL production (Mbbls/d)

 

31

 

 

31

 

 

26

 

 

26

 

 

28

 

 

 

28

 

 

24

 

 

28

 

 

26

 

 

27

 

 

NGL equity sales (Mbbls/d)

 

7

 

 

7

 

 

4

 

 

5

 

 

6

 

 

 

7

 

 

5

 

 

6

 

 

5

 

 

6

 

 

Crude oil transportation volumes (Mbbls/d)

 

110

 

 

124

 

 

125

 

 

118

 

 

119

 

 

 

119

 

 

111

 

 

134

 

 

130

 

 

123

 

 

Non-consolidated (5)

 

 

 

 

 

 

 

 

 

 

 

 

Gathering volumes (Bcf/d)

 

0.39

 

 

0.37

 

 

0.41

 

 

0.42

 

 

0.40

 

 

 

0.36

 

 

0.30

 

 

0.36

 

 

0.33

 

 

0.34

 

 

Plant inlet natural gas volumes (Bcf/d)

 

0.38

 

 

0.37

 

 

0.41

 

 

0.42

 

 

0.40

 

 

 

0.36

 

 

0.30

 

 

0.36

 

 

0.33

 

 

0.34

 

 

NGL production (Mbbls/d)

 

28

 

 

26

 

 

29

 

 

29

 

 

28

 

 

 

28

 

 

21

 

 

30

 

 

28

 

 

27

 

 

NGL equity sales (Mbbls/d)

 

8

 

 

6

 

 

7

 

 

10

 

 

8

 

 

 

8

 

 

3

 

 

8

 

 

7

 

 

7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Excludes certain amounts associated with revenues and operating costs for tracked or reimbursable charges.

 

(2) Tbtu converted to MMdth at one trillion British thermal units = one million dekatherms.

 

(3) Includes 100% of the volumes associated with the MountainWest Acquisition transmission assets after the purchase on February 14, 2023, including 100% of the volumes associated with the operated equity-method investment White River Hub, LLC. Average volumes were calculated over the period owned.

 

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

 

(5) Includes 100% of the volumes associated with operated equity-method investments, including Discovery Producer Services.

 

Northeast G&P

 

(UNAUDITED)

 

 

2022

 

2023

 

(Dollars in millions)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

 

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

 

Gathering, processing, transportation, and fractionation revenues

$

323

 

$

350

 

$

354

 

$

368

 

$

1,395

 

 

$

391

 

$

431

 

$

417

 

$

411

 

$

1,650

 

 

Other fee revenues (1)

 

27

 

 

27

 

 

27

 

 

46

 

 

127

 

 

 

32

 

 

27

 

 

27

 

 

28

 

 

114

 

 

Commodity margins

 

6

 

 

1

 

 

3

 

 

 

 

10

 

 

 

5

 

 

(1

)

 

7

 

 

1

 

 

12

 

 

Operating and administrative costs (1)

 

(85

)

 

(102

)

 

(101

)

 

(97

)

 

(385

)

 

 

(101

)

 

(101

)

 

(115

)

 

(107

)

 

(424

)

 

Other segment income (expenses) - net

 

(3

)

 

 

 

(1

)

 

(1

)

 

(5

)

 

 

 

 

 

 

(1

)

 

(9

)

 

(10

)

 

Proportional Modified EBITDA of equity-method investments

 

150

 

 

174

 

 

182

 

 

148

 

 

654

 

 

 

143

 

 

159

 

 

119

 

 

153

 

 

574

 

 

Modified EBITDA

 

418

 

 

450

 

 

464

 

 

464

 

 

1,796

 

 

 

470

 

 

515

 

 

454

 

 

477

 

 

1,916

 

 

Adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31

 

 

8

 

 

39

 

 

Adjusted EBITDA

$

418

 

$

450

 

$

464

 

$

464

 

$

1,796

 

 

$

470

 

$

515

 

$

485

 

$

485

 

$

1,955

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Statistics for Operated Assets

 

 

 

 

 

 

 

 

 

 

 

 

Gathering and Processing

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated (2)

 

 

 

 

 

 

 

 

 

 

 

 

Gathering volumes (Bcf/d)

 

4.03

 

 

4.19

 

 

4.22

 

 

4.31

 

 

4.19

 

 

 

4.42

 

 

4.61

 

 

4.41

 

 

4.37

 

 

4.45

 

 

Plant inlet natural gas volumes (Bcf/d)

 

1.46

 

 

1.70

 

 

1.74

 

 

1.70

 

 

1.65

 

 

 

1.92

 

 

1.79

 

 

1.93

 

 

1.93

 

 

1.89

 

 

NGL production (Mbbls/d)

 

110

 

 

118

 

 

125

 

 

127

 

 

120

 

 

 

144

 

 

135

 

 

144

 

 

133

 

 

139

 

 

NGL equity sales (Mbbls/d)

 

2

 

 

1

 

 

1

 

 

1

 

 

1

 

 

 

1

 

 

1

 

 

 

 

1

 

 

1

 

 

Non-consolidated (3)

 

 

 

 

 

 

 

 

 

 

 

 

Gathering volumes (Bcf/d)

 

6.62

 

 

6.76

 

 

6.58

 

 

6.48

 

 

6.61

 

 

 

6.97

 

 

7.03

 

 

6.83

 

 

6.85

 

 

6.92

 

 

Plant inlet natural gas volumes (Bcf/d)

 

0.66

 

 

0.76

 

 

0.66

 

 

0.77

 

 

0.71

 

 

 

0.77

 

 

0.93

 

 

0.99

 

 

1.01

 

 

0.93

 

 

NGL production (Mbbls/d)

 

50

 

 

53

 

 

45

 

 

56

 

 

51

 

 

 

54

 

 

64

 

 

71

 

 

69

 

 

65

 

 

NGL equity sales (Mbbls/d)

 

4

 

 

3

 

 

2

 

 

2

 

 

3

 

 

 

4

 

 

5

 

 

4

 

 

4

 

 

4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Excludes certain amounts associated with revenues and operating costs for reimbursable charges.

 

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

 

(3) Includes 100% of the volumes associated with operated equity-method investments, including the Laurel Mountain Midstream partnership and Blue Racer Midstream which we operate effective January 1, 2024; and the Bradford Supply Hub and the Marcellus South Supply Hub within the Appalachia Midstream Services partnership.

 

West

 

(UNAUDITED)

 

 

2022

 

2023

 

(Dollars in millions)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

 

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

 

Net gathering, processing, transportation, storage, and fractionation revenues

$

317

 

$

360

 

$

397

 

$

401

 

$

1,475

 

 

$

382

 

$

373

 

$

371

 

$

397

 

$

1,523

 

 

Other fee revenues (1)

 

6

 

 

6

 

 

6

 

 

5

 

 

23

 

 

 

5

 

 

7

 

 

4

 

 

8

 

 

24

 

 

Commodity margins

 

23

 

 

25

 

 

27

 

 

27

 

 

102

 

 

 

(24

)

 

18

 

 

21

 

 

19

 

 

34

 

 

Operating and administrative costs (1)

 

(112

)

 

(133

)

 

(128

)

 

(133

)

 

(506

)

 

 

(115

)

 

(122

)

 

(122

)

 

(144

)

 

(503

)

 

Other segment income (expenses) - net

 

(1

)

 

(1

)

 

(6

)

 

(7

)

 

(15

)

 

 

23

 

 

(7

)

 

(4

)

 

(14

)

 

(2

)

 

Proportional Modified EBITDA of equity-method investments

 

27

 

 

31

 

 

41

 

 

33

 

 

132

 

 

 

33

 

 

43

 

 

45

 

 

41

 

 

162

 

 

Modified EBITDA

 

260

 

 

288

 

 

337

 

 

326

 

 

1,211

 

 

 

304

 

 

312

 

 

315

 

 

307

 

 

1,238

 

 

Adjustments

 

 

 

8

 

 

 

 

 

 

8

 

 

 

(18

)

 

 

 

 

 

16

 

 

(2

)

 

Adjusted EBITDA

$

260

 

$

296

 

$

337

 

$

326

 

$

1,219

 

 

$

286

 

$

312

 

$

315

 

$

323

 

$

1,236

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Statistics for Operated Assets

 

 

 

 

 

 

 

 

 

 

 

 

Gathering and Processing

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated (2) (4)

 

 

 

 

 

 

 

 

 

 

 

 

Gathering volumes (Bcf/d) (3)

 

3.47

 

 

5.14

 

 

5.20

 

 

5.50

 

 

5.19

 

 

 

5.47

 

 

5.51

 

 

5.60

 

 

6.03

 

 

6.02

 

 

Plant inlet natural gas volumes (Bcf/d)

 

1.13

 

 

1.14

 

 

1.21

 

 

1.10

 

 

1.15

 

 

 

0.92

 

 

1.06

 

 

1.12

 

 

1.63

 

 

1.54

 

 

NGL production (Mbbls/d)

 

47

 

 

49

 

 

45

 

 

32

 

 

43

 

 

 

25

 

 

40

 

 

61

 

 

99

 

 

91

 

 

NGL equity sales (Mbbls/d)

 

17

 

 

18

 

 

13

 

 

7

 

 

14

 

 

 

6

 

 

16

 

 

22

 

 

14

 

 

14

 

 

Non-consolidated (5)

 

 

 

 

 

 

 

 

 

 

 

 

Gathering volumes (Bcf/d)

 

0.28

 

 

0.28

 

 

0.29

 

 

0.29

 

 

0.29

 

 

 

0.32

 

 

0.33

 

 

0.33

 

 

 

 

 

 

Plant inlet natural gas volumes (Bcf/d)

 

0.27

 

 

0.28

 

 

0.29

 

 

0.29

 

 

0.28

 

 

 

0.32

 

 

0.32

 

 

0.32

 

 

 

 

 

 

NGL production (Mbbls/d)

 

31

 

 

32

 

 

34

 

 

32

 

 

33

 

 

 

37

 

 

38

 

 

38

 

 

 

 

 

 

NGL and Crude Oil Transportation volumes (Mbbls/d) (6)

 

132

 

 

162

 

 

189

 

 

151

 

 

158

 

 

 

161

 

 

217

 

 

244

 

 

250

 

 

218

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Excludes certain amounts associated with revenues and operating costs for reimbursable charges.

 

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

 

(3) Includes 100% of the volumes associated with the Trace Acquisition gathering assets after the purchase on April 29, 2022 and the Cureton Acquisition gathering assets after the purchase on November 30, 2023. Average volumes were calculated over the period owned.

 

(4) Volumes associated with the RMM assets for 4th Qtr 2023 and Year 2023 are presented entirely in the Consolidated section. We acquired the remaining 50 percent of RMM on November 30, 2023.

 

(5) Includes 100% of the volumes associated with operated equity-method investment Rocky Mountain Midstream through 3rd Qtr 2023.

 

(6) Includes 100% of the volumes associated with Overland Pass Pipeline Company (and operated equity-method investment), Rocky Mountain Midstream (see Note 4 above) as well as volumes for our consolidated Bluestem pipeline.

 

Gas & NGL Marketing Services

 

(UNAUDITED)

 

 

2022

 

 

2023

 

(Dollars in millions)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

 

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

 

Commodity margins

$

100

 

$

23

 

$

39

 

$

161

 

$

323

 

 

$

265

 

$

(2

)

$

38

 

$

88

 

$

389

 

 

Other fee revenues

 

1

 

 

 

 

1

 

 

1

 

 

3

 

 

 

1

 

 

 

 

 

 

 

 

1

 

 

Net unrealized gain (loss) from derivative instruments

 

(57

)

 

(288

)

 

5

 

 

66

 

 

(274

)

 

 

333

 

 

94

 

 

24

 

 

208

 

 

659

 

 

Operating and administrative costs

 

(31

)

 

(23

)

 

(24

)

 

(18

)

 

(96

)

 

 

(32

)

 

(24

)

 

(19

)

 

(24

)

 

(99

)

 

Other segment income (expenses) - net

 

 

 

6

 

 

(1

)

 

(1

)

 

4

 

 

 

 

 

 

 

 

 

 

 

 

 

Modified EBITDA

 

13

 

 

(282

)

 

20

 

 

209

 

 

(40

)

 

 

567

 

 

68

 

 

43

 

 

272

 

 

950

 

 

Adjustments

 

52

 

 

288

 

 

18

 

 

(60

)

 

298

 

 

 

(336

)

 

(84

)

 

(27

)

 

(203

)

 

(650

)

 

Adjusted EBITDA

$

65

 

$

6

 

$

38

 

$

149

 

$

258

 

 

$

231

 

$

(16

)

$

16

 

$

69

 

$

300

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Statistics

 

 

 

 

 

 

 

 

 

 

 

 

Product Sales Volumes

 

 

 

 

 

 

 

 

 

 

 

 

Natural Gas (Bcf/d)

 

7.96

 

 

6.66

 

 

7.11

 

 

7.05

 

 

7.20

 

 

 

7.24

 

 

6.56

 

 

7.31

 

 

7.11

 

 

7.05

 

 

NGLs (Mbbls/d)

 

246

 

 

234

 

 

267

 

 

254

 

 

250

 

 

 

234

 

 

239

 

 

245

 

 

173

 

 

223

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

(UNAUDITED)

 

 

2022

 

2023

 

(Dollars in millions)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

 

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

 

Service revenues

$

9

 

$

7

 

$

6

 

$

2

 

$

24

 

 

$

3

 

$

5

 

$

4

 

$

4

 

$

16

 

 

Net realized product sales

 

96

 

 

142

 

 

180

 

 

184

 

 

602

 

 

 

120

 

 

97

 

 

127

 

 

145

 

 

489

 

 

Net unrealized gain (loss) from derivative instruments

 

(66

)

 

47

 

 

29

 

 

15

 

 

25

 

 

 

(6

)

 

(11

)

 

(1

)

 

19

 

 

1

 

 

Operating and administrative costs

 

(33

)

 

(57

)

 

(62

)

 

(59

)

 

(211

)

 

 

(48

)

 

(54

)

 

(58

)

 

(65

)

 

(225

)

 

Other segment income (expenses) - net

 

(1

)

 

 

 

(13

)

 

8

 

 

(6

)

 

 

5

 

 

5

 

 

10

 

 

8

 

 

28

 

 

Net gain from Energy Transfer litigation judgment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

534

 

 

534

 

 

Proportional Modified EBITDA of equity-method investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1

)

 

(1

)

 

 

 

(2

)

 

Modified EBITDA

 

5

 

 

139

 

 

140

 

 

150

 

 

434

 

 

 

74

 

 

41

 

 

81

 

 

645

 

 

841

 

 

Adjustments

 

66

 

 

(47

)

 

(13

)

 

(15

)

 

(9

)

 

 

6

 

 

11

 

 

1

 

 

(553

)

 

(535

)

 

Adjusted EBITDA

$

71

 

$

92

 

$

127

 

$

135

 

$

425

 

 

$

80

 

$

52

 

$

82

 

$

92

 

$

306

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Statistics

 

 

 

 

 

 

 

 

 

 

 

 

Net Product Sales Volumes

 

 

 

 

 

 

 

 

 

 

 

 

Natural Gas (Bcf/d)

 

0.12

 

 

0.19

 

 

0.27

 

 

0.31

 

 

0.22

 

 

 

0.26

 

 

0.29

 

 

0.31

 

 

0.30

 

 

0.29

 

 

NGLs (Mbbls/d)

 

7

 

 

7

 

 

8

 

 

7

 

 

7

 

 

 

3

 

 

6

 

 

9

 

 

10

 

 

7

 

 

Crude Oil (Mbbls/d)

 

2

 

 

3

 

 

2

 

 

2

 

 

2

 

 

 

1

 

 

3

 

 

5

 

 

7

 

 

4

 

 

 

 

Capital Expenditures and Investments

 

(UNAUDITED)

 

 

2022

 

 

2023

 

(Dollars in millions)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

 

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures:

 

 

 

 

 

 

 

 

 

 

 

 

Transmission & Gulf of Mexico

$

125

 

$

129

 

$

637

 

$

358

 

$

1,249

 

 

$

205

$

263

 

$

382

 

$

521

 

$

1,371

 

Northeast G&P

 

40

 

 

30

 

 

52

 

 

92

 

 

214

 

 

 

99

 

74

 

 

115

 

 

71

 

 

359

 

West

 

61

 

 

82

 

 

94

 

 

226

 

 

463

 

 

 

169

 

197

 

 

141

 

 

121

 

 

628

 

Other

 

65

 

 

74

 

 

58

 

 

130

 

 

327

 

 

 

72

 

76

 

 

52

 

 

75

 

 

275

 

Total (1)

$

291

 

$

315

 

$

841

 

$

806

 

$

2,253

 

 

$

545

$

610

 

$

690

 

$

788

 

$

2,633

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchases of and contributions to equity-method investments:

 

 

 

 

 

 

 

 

 

 

 

 

Transmission & Gulf of Mexico

$

16

 

$

26

 

$

11

 

$

17

 

$

70

 

 

$

8

$

18

 

$

6

 

$

9

 

$

41

 

Northeast G&P

 

32

 

 

18

 

 

28

 

 

8

 

 

86

 

 

 

31

 

12

 

 

4

 

 

52

 

 

99

 

West

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

 

 

 

1

 

Other

 

8

 

 

 

 

1

 

 

1

 

 

10

 

 

 

 

 

 

 

 

 

 

 

Total

$

56

 

$

44

 

$

40

 

$

26

 

$

166

 

 

$

39

$

30

 

$

11

 

$

61

 

$

141

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Summary:

 

 

 

 

 

 

 

 

 

 

 

 

Transmission & Gulf of Mexico

$

141

 

$

155

 

$

648

 

$

375

 

$

1,319

 

 

$

213

$

281

 

$

388

 

$

530

 

$

1,412

 

Northeast G&P

 

72

 

 

48

 

 

80

 

 

100

 

 

300

 

 

 

130

 

86

 

 

119

 

 

123

 

 

458

 

West

 

61

 

 

82

 

 

94

 

 

226

 

 

463

 

 

 

169

 

197

 

 

142

 

 

121

 

 

629

 

Other

 

73

 

 

74

 

 

59

 

 

131

 

 

337

 

 

 

72

 

76

 

 

52

 

 

75

 

 

275

 

Total

$

347

 

$

359

 

$

881

 

$

832

 

$

2,419

 

 

$

584

$

640

 

$

701

 

$

849

 

$

2,774

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital investments:

 

 

 

 

 

 

 

 

 

 

 

 

Increases to property, plant, and equipment

$

260

 

$

382

 

$

907

 

$

845

 

$

2,394

 

 

$

484

$

684

 

$

792

 

$

604

 

$

2,564

 

Purchases of businesses, net of cash acquired

 

 

 

933

 

 

 

 

 

 

933

 

 

 

1,056

 

(3

)

 

(29

)

 

544

 

 

1,568

 

Purchases of and contributions to equity-method investments

 

56

 

 

44

 

 

40

 

 

26

 

 

166

 

 

 

39

 

30

 

 

11

 

 

61

 

 

141

 

Purchases of other long-term investments

 

 

 

3

 

 

3

 

 

5

 

 

11

 

 

 

2

 

1

 

 

2

 

 

1

 

 

6

 

Total

$

316

 

$

1,362

 

$

950

 

$

876

 

$

3,504

 

 

$

1,581

$

712

 

$

776

 

$

1,210

 

$

4,279

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Increases to property, plant, and equipment

$

260

 

$

382

 

$

907

 

$

845

 

$

2,394

 

 

$

484

$

684

 

$

792

 

$

604

 

$

2,564

 

Changes in related accounts payable and accrued liabilities

 

31

 

 

(67

)

 

(66

)

 

(39

)

 

(141

)

 

 

61

 

(74

)

 

(102

)

 

184

 

 

69

 

Capital expenditures

$

291

 

$

315

 

$

841

 

$

806

 

$

2,253

 

 

$

545

$

610

 

$

690

 

$

788

 

$

2,633

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contributions from noncontrolling interests

$

3

 

$

5

 

$

7

 

$

3

 

$

18

 

 

$

3

$

15

 

$

 

$

 

$

18

 

Contributions in aid of construction

$

(3

)

$

9

 

$

2

 

$

4

 

$

12

 

 

$

11

$

7

 

$

2

 

$

8

 

$

28

 

Proceeds from sale of business

$

 

$

 

$

 

$

 

$

 

 

$

$

 

$

348

 

$

(2

)

$

346

 

Proceeds from disposition of equity-method investments

$

 

$

 

$

7

 

$

 

$

7

 

 

$

$

 

$

 

$

 

$

 

Non-GAAP Measures

This news release and accompanying materials may include certain financial measures – adjusted EBITDA, adjusted income (“earnings”), adjusted earnings per share, available funds from operations 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. Such items are excluded from net income to determine adjusted income and adjusted earnings per share. Management believes this measure provides investors meaningful insight into results from ongoing operations.

Available funds from operations (AFFO) is defined as cash flow from operations excluding the effect of changes in working capital and certain other changes in noncurrent assets and liabilities, reduced by preferred dividends and net distributions to noncontrolling interests. AFFO may be adjusted to exclude certain items that we characterize as unrepresentative of our ongoing operations.

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 available funds from operations 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 Non-GAAP Adjusted Income

 

(UNAUDITED)

 

 

2022

 

2023

 

(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

$

379

 

$

400

 

$

599

 

$

668

 

$

2,046

 

 

$

926

 

$

547

 

$

654

 

$

1,146

 

$

3,273

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

$

.31

 

$

.33

 

$

.49

 

$

.55

 

$

1.67

 

 

$

.76

 

$

.45

 

$

.54

 

$

.94

 

$

2.68

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

Transmission & Gulf of Mexico

 

 

 

 

 

 

 

 

 

 

 

 

Loss related to Eminence storage cavern abandonments and monitoring

$

 

$

 

$

19

 

$

12

 

$

31

 

 

$

 

$

 

$

 

$

 

$

 

 

Regulatory liability charges associated with decrease in Transco’s estimated deferred state income tax rate

 

 

 

 

 

15

 

 

 

 

15

 

 

 

 

 

 

 

 

 

 

 

 

 

Net unrealized (gain) loss from derivative instruments

 

 

 

 

 

(1

)

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MountainWest acquisition and transition-related costs

 

 

 

 

 

 

 

 

 

 

 

 

13

 

 

17

 

 

3

 

 

9

 

 

42

 

 

Gulf Coast Storage acquisition and transition-related costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

 

1

 

 

Gain on sale of business

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(130

)

 

1

 

 

(129

)

 

Total Transmission & Gulf of Mexico adjustments

 

 

 

 

 

33

 

 

13

 

 

46

 

 

 

13

 

 

17

 

 

(127

)

 

11

 

 

(86

)

 

Northeast G&P

 

 

 

 

 

 

 

 

 

 

 

 

Accrual for loss contingency

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10

 

 

10

 

 

Our share of accrual for loss contingency at Aux Sable Liquid Products LP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31

 

 

(2

)

 

29

 

 

Total Northeast G&P adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31

 

 

8

 

 

39

 

 

West

 

 

 

 

 

 

 

 

 

 

 

 

Trace acquisition costs

 

 

 

8

 

 

 

 

 

 

8

 

 

 

 

 

 

 

 

 

 

 

 

 

Cureton acquisition and transition-related costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6

 

 

6

 

 

Gain from contract settlement

 

 

 

 

 

 

 

 

 

 

 

 

(18

)

 

 

 

 

 

 

 

(18

)

 

Impairment of assets held for sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10

 

 

10

 

 

Total West adjustments

 

 

 

8

 

 

 

 

 

 

8

 

 

 

(18

)

 

 

 

 

 

16

 

 

(2

)

 

Gas & NGL Marketing Services

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of purchase accounting inventory fair value adjustment

 

15

 

 

 

 

 

 

 

 

15

 

 

 

 

 

 

 

 

 

 

 

 

 

Impact of volatility on NGL linefill transactions

 

(20

)

 

 

 

23

 

 

6

 

 

9

 

 

 

(3

)

 

10

 

 

(3

)

 

5

 

 

9

 

 

Net unrealized (gain) loss from derivative instruments

 

57

 

 

288

 

 

(5

)

 

(66

)

 

274

 

 

 

(333

)

 

(94

)

 

(24

)

 

(208

)

 

(659

)

 

Total Gas & NGL Marketing Services adjustments

 

52

 

 

288

 

 

18

 

 

(60

)

 

298

 

 

 

(336

)

 

(84

)

 

(27

)

 

(203

)

 

(650

)

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

Regulatory liability charge associated with decrease in Transco’s estimated deferred state income tax rate

 

 

 

 

 

5

 

 

 

 

5

 

 

 

 

 

 

 

 

 

 

 

 

 

Net unrealized (gain) loss from derivative instruments

 

66

 

 

(47

)

 

(29

)

 

(15

)

 

(25

)

 

 

6

 

 

11

 

 

1

 

 

(19

)

 

(1

)

 

Net gain from Energy Transfer litigation judgment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(534

)

 

(534

)

 

Accrual for loss contingency

 

 

 

 

 

11

 

 

 

 

11

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Other adjustments

 

66

 

 

(47

)

 

(13

)

 

(15

)

 

(9

)

 

 

6

 

 

11

 

 

1

 

 

(553

)

 

(535

)

 

Adjustments included in Modified EBITDA

 

118

 

 

249

 

 

38

 

 

(62

)

 

343

 

 

 

(335

)

 

(56

)

 

(122

)

 

(721

)

 

(1,234

)

 

Adjustments below Modified EBITDA