Williams Reports Second-Quarter 2020 Financial Results

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Williams Reports Second-Quarter 2020 Financial Results

by ahnationtalk on August 4, 202099 Views

08/03/2020

TULSA, Okla.—- Williams (NYSE: WMB) today announced its unaudited financial results for the three and six months ended June 30, 2020.

Strong 2Q 2020 results demonstrate stability and predictability of business; on track to meet 2020 guidance expectations

  • Net income of $303 million, resulting in net income of $0.25 per diluted share (EPS)
  • Adjusted EBITDA of $1.24 billion for the quarter and $2.502 billion year to date, up slightly for the year
  • Excluding non-cash deferred revenue step down, 2Q 20 Adjusted EBITDA is up $31 million or 2.5%
  • Cash flow from operations of $1.143 billion, up 7% over 2Q 19
  • Debt-to-Adjusted EBITDA improved by 0.12x to 4.31x since 2Q 19
  • Continuing to generate excess cash flow – DCF exceeds dividends and growth capital

Natural gas focused strategy, built for long haul, yields outstanding performance; natural gas market fundamentals and demand remain solid

  • Transmission & Gulf of Mexico segment up 4% in Modified EBITDA and 2% in Adjusted EBITDA year-to-date 2020 vs. year-to-date 2019
  • Stable and reliable customer base of utilities, power plants, LNG facilities and industrial plants supports firm-committed capacity on demand-pull regulated pipelines
  • Northeast G&P segment up 23% in Modified EBITDA and 18% in Adjusted EBITDA year-to-date 2020 vs. year-to-date 2019; gathering volumes up 7% over 2Q 19
  • Diversified gas gathering business linked directly to wellheads in premier basins provides advantaged position
  • Strong business performance driven by steady natural gas demand

CEO Perspective

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

“We’ve built a business that is steady and predictable, and this quarter was a chance to show just how durable this business can be against a number of headwinds. Even with the significant and unexpected disruptions caused by geopolitical oil disputes, the COVID-19 pandemic and a tropical storm, our earnings remained consistent with our projections, largely due to the stability of our natural gas-focused business, our minimal exposure to commodity price volatility, and our proactive cost reductions instituted last year. We are pleased with our business performance to date and are confident in our ability to achieve 2020 guidance expectations and continued free cash flow.

“Williams’ employees continue to do their part to ensure the safe and reliable delivery of natural gas to America’s cities and communities, ensuring energy stability in these uncertain times. These efforts are frequently overlooked by the general public as we often take for granted the highly reliable and safe energy infrastructure that enables our everyday lives and jobs. I remain extremely proud of our employees for their steadfast efforts to keep our operations running smoothly while also going the extra mile to keep themselves and their coworkers healthy.

“Overall demand for natural gas has proved resilient, and we continue to successfully execute on a number of critical expansion projects along our Transco pipeline, in the Northeast G&P and in the Deepwater Gulf of Mexico. We remain bullish on natural gas demand growth because we recognize the critical role natural gas plays in a clean energy economy. Thanks to this clean energy resource, the U.S. continues to see significant reductions in CO2 emissions, lower consumer utility bills and enhanced opportunities for investment in renewable energy. Given Williams’ unrivaled portfolio of assets, there is perhaps no other natural gas company better positioned to meet the dual challenge of serving increasing U.S. demand for energy while advancing the transition to a low-carbon future with immediate, practical solutions that are available now.”

Williams Summary Financial Information

2Q

YTD

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

2020

2019

2020

2019

GAAP Measures

Net Income (Loss)

$303

$310

($215

)

$504

Net Income (Loss) Per Share

$0.25

$0.26

($0.18

)

$0.41

Cash Flow From Operations

$1,143

$1,069

$1,930

$1,844

Non-GAAP Measures (1)

Adjusted EBITDA

$1,240

$1,241

$2,502

$2,457

Adjusted Income

$305

$313

$618

$586

Adjusted Income Per Share

$0.25

$0.26

$0.51

$0.48

Distributable Cash Flow

$797

$867

$1,658

$1,647

Dividend Coverage Ratio

1.64

x

1.88

x

1.71

x

1.79

x

Other

Debt-to-Adjusted EBITDA at Quarter End

4.31

x

4.43

x

Capital Investments (2) (3)

$363

$702

$647

$1,219

(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) YTD 2019 excludes $727 million (net of cash acquired) for the purchase of the remaining 38% of UEOM as this amount was provided for at the close of the Northeast JV by our JV partner, CPPIB, in June 2019.

(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.

Read More: https://investor.williams.com/press-releases/press-release-details/2020/Williams-Reports-Second-Quarter-2020-Financial-Results/default.aspx

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