Delaware | 1-4174 | 73-0569878 | ||
(State or | (Commission | (I.R.S. Employer | ||
other jurisdiction | File Number) | Identification No.) | ||
of incorporation) |
One Williams Center, Tulsa, Oklahoma | 74172 | |
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240-14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit 99.1 | Press release of the Company dated August 3, 2011, and accompanying schedules, publicly announcing the Companys second quarter 2011 financial results. |
2
THE WILLIAMS COMPANIES, INC. |
||||
Date: August 3, 2011 | /s/ Donald R. Chappel | |||
Name: | Donald R. Chappel | |||
Title: | Senior Vice President and Chief Financial Officer |
|||
3
EXHIBIT | ||
NUMBER | DESCRIPTION | |
Exhibit 99.1
|
Press release of the Company dated August 3, 2011 and accompanying schedules, publicly announcing the Companys second quarter 2011 financial results. |
4
Williams (NYSE: WMB) One Williams Center Tulsa, OK 74172 800-Williams www.williams.com |
|||||
MEDIA CONTACT:
|
INVESTOR CONTACTS: | |||||
Jeff Pounds
|
Travis Campbell | Sharna Reingold | David Sullivan | |||
(918) 573-3332
|
(918) 573-2944 | (918) 573-2078 | (918) 573-9360 |
| Net Income is $227 Million, $0.38 per Share for Second Quarter 2011 | ||
| Adjusted Income from Continuing Operations is $0.39 per Share, Up 39% in 2Q | ||
| Strong Performances Across All Businesses Drive Improved 2Q Adjusted Results | ||
| 2011 Adjusted EPS Guidance Midpoint Increased $0.05 to $1.60 | ||
| IPO, Spinoff of Exploration & Production Business on Schedule |
Quarterly Summary Financial Information | 2Q 2011 | 2Q 2010 | ||||||||||||||
Per share amounts are reported on a diluted basis. All amounts are attributable to The Williams Companies, Inc. | millions | per share | millions | per share | ||||||||||||
Income from continuing operations |
$ | 230 | $ | 0.38 | $ | 188 | $ | 0.31 | ||||||||
Loss from discontinued operations |
(3 | ) | | (3 | ) | | ||||||||||
Net income |
$ | 227 | $ | 0.38 | $ | 185 | $ | 0.31 | ||||||||
Adjusted income from continuing operations* |
$ | 231 | $ | 0.39 | $ | 163 | $ | 0.28 | ||||||||
Year-to-Date Summary Financial Information | YTD 2011 | YTD 2010 | ||||||||||||||
Per share amounts are reported on a diluted basis. All amounts are attributable to The Williams Companies, Inc. | millions | per share | millions | per share | ||||||||||||
Income (loss) from continuing operations |
$ | 559 | $ | 0.94 | ($7 | ) | ($0.01 | ) | ||||||||
Loss from discontinued operations |
(11 | ) | (0.02 | ) | (1 | ) | | |||||||||
Net income (loss) |
$ | 548 | $ | 0.92 | ($8 | ) | ($0.01 | ) | ||||||||
Adjusted income from continuing operations* |
$ | 443 | $ | 0.74 | $ | 371 | $ | 0.64 | ||||||||
* | A schedule reconciling income (loss) from continuing operations to adjusted income from continuing operations (non-GAAP measures) is available at www.williams.com and as an attachment to this press release. |
Williams (NYSE: WMB) | Second-Quarter 2011 Financial Results Aug. 3, 2011 | Page 1 of 10 |
Williams (NYSE: WMB) | Second-Quarter 2011 Financial Results Aug. 3, 2011 | Page 2 of 10 |
Williams (NYSE: WMB) | Second-Quarter 2011 Financial Results Aug. 3, 2011 | Page 3 of 10 |
Commodity Price Assumptions and Financial Outlook | 2011 | 2012 | ||||||||||||||||||||||
As of Aug. 3, 2011 | ||||||||||||||||||||||||
Low | Mid | High | Low | Mid | High | |||||||||||||||||||
Natural Gas ($/MMBtu): |
||||||||||||||||||||||||
NYMEX |
$ | 3.40 | $ | 4.25 | $ | 5.10 | $ | 4.00 | $ | 5.00 | $ | 6.00 | ||||||||||||
Rockies |
$ | 3.10 | $ | 3.85 | $ | 4.60 | $ | 3.65 | $ | 4.55 | $ | 5.45 | ||||||||||||
Avg. San Juan/Mid-Continent |
$ | 3.20 | $ | 4.00 | $ | 4.80 | $ | 3.70 | $ | 4.65 | $ | 5.60 | ||||||||||||
Oil / NGL: |
||||||||||||||||||||||||
Crude Oil - WTI ($ per barrel) |
$ | 80 | $ | 95 | $ | 110 | $ | 80 | $ | 95 | $ | 110 | ||||||||||||
Crude to Gas Ratio |
21.6x | 22.5x | 23.5x | 18.3x | 19.2x | 20.0x | ||||||||||||||||||
NGL to Crude Oil Relationship |
57 | % | 53 | % | 50 | % | 53 | % | 54 | % | 54 | % | ||||||||||||
Average NGL Margins ($ per gallon) (1) |
$ | 0.72 | $ | 0.78 | $ | 0.84 | $ | 0.60 | $ | 0.75 | $ | 0.90 | ||||||||||||
Capital & Investment Expenditures (millions) |
||||||||||||||||||||||||
Williams Partners (2) |
$ | 1,410 | $ | 1,573 | $ | 1,735 | $ | 1,480 | $ | 1,630 | $ | 1,780 | ||||||||||||
Exploration & Production |
1,300 | 1,450 | 1,600 | 1,300 | 1,700 | 2,100 | ||||||||||||||||||
Midstream Canada & Olefins |
350 | 400 | 450 | 400 | 450 | 500 | ||||||||||||||||||
Total Capital & Investment Expenditures (3) |
$ | 3,125 | $ | 3,475 | $ | 3,825 | $ | 3,200 | $ | 3,800 | $ | 4,400 | ||||||||||||
Cash Flow from Continuing Operations (millions) |
$ | 2,825 | $ | 3,125 | $ | 3,425 | $ | 3,150 | $ | 3,688 | $ | 4,225 | ||||||||||||
Adjusted Segment Profit (millions) (4) |
||||||||||||||||||||||||
Williams Partners |
$ | 1,745 | $ | 1,890 | $ | 2,035 | $ | 1,780 | $ | 2,050 | $ | 2,320 | ||||||||||||
Exploration & Production |
270 | 395 | 520 | 325 | 600 | 875 | ||||||||||||||||||
Midstream Canada & Olefins |
250 | 300 | 350 | 275 | 325 | 375 | ||||||||||||||||||
Total Adjusted Segment Profit (3) |
$ | 2,275 | $ | 2,588 | $ | 2,900 | $ | 2,375 | $ | 2,975 | $ | 3,575 | ||||||||||||
Adjusted Diluted Earnings Per Share (4) |
$ | 1.35 | $ | 1.60 | $ | 1.85 | $ | 1.45 | $ | 1.95 | $ | 2.45 |
(1) | Average NGL margins are for Williams Partners midstream business; they do not reflect Midstream Canada & Olefins business. | |
(2) | Capital expenditures for 2011 exclude $330 million for Williams Partners acquisition of a 24.5% interest in Gulfstream system from Williams. | |
(3) | The sum of the ranges for each business line may not match total range; does not include the Other segment. | |
(4) | Adjusted Segment Profit and Adjusted Diluted EPS are adjusted to remove items considered unrepresentative of ongoing operations and the effect of mark-to-market accounting and are non-GAAP measures. Reconciliations to the most relevant GAAP measures are attached to this news release. |
Williams (NYSE: WMB) | Second-Quarter 2011 Financial Results Aug. 3, 2011 | Page 4 of 10 |
Consolidated Segment Profit | 2Q | YTD | ||||||||||||||
Amounts in millions | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Williams Partners |
$ | 471 | $ | 361 | $ | 908 | $ | 785 | ||||||||
Exploration & Production |
94 | 73 | 145 | 226 | ||||||||||||
Midstream Canada & Olefins |
72 | 61 | 146 | 81 | ||||||||||||
Other |
2 | 18 | 22 | 25 | ||||||||||||
Consolidated Segment Profit |
$ | 639 | $ | 513 | $ | 1,221 | $ | 1,117 | ||||||||
Adjusted Consolidated Segment Profit* | 2Q | YTD | ||||||||||||||
Amounts in millions | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Williams Partners |
$ | 474 | $ | 345 | $ | 911 | $ | 764 | ||||||||
Exploration & Production |
92 | 71 | 161 | 215 | ||||||||||||
Midstream Canada & Olefins |
72 | 55 | 146 | 75 | ||||||||||||
Other |
2 | 5 | 11 | 12 | ||||||||||||
Adjusted Consolidated Segment Profit |
$ | 640 | $ | 476 | $ | 1,229 | $ | 1,066 | ||||||||
* | A schedule reconciling income from continuing operations to adjusted income from continuing operations (non-GAAP measures) is available at www.williams.com and as an attachment to this press release. |
Williams (NYSE: WMB) | Second-Quarter 2011 Financial Results Aug. 3, 2011 | Page 5 of 10 |
Average Daily Production | 2Q | 1Q | Sequential | |||||||||||||||||
Natural gas & NGL basins (MMcfe/d) | 2011 | 2010 | Change | 2011 | Change | |||||||||||||||
Piceance Basin |
725 | 651 | 11 | % | 706 | 3 | % | |||||||||||||
Powder River Basin |
220 | 228 | -4 | % | 225 | -2 | % | |||||||||||||
Marcellus Shale |
9 | 4 | 125 | % | 9 | 0 | % | |||||||||||||
San Juan Basin |
138 | 145 | -5 | % | 130 | 6 | % | |||||||||||||
Barnett Shale |
69 | 57 | 21 | % | 64 | 8 | % | |||||||||||||
Other |
9 | 14 | -36 | % | 10 | -10 | % | |||||||||||||
Subtotal (MMcfe/d) |
1,170 | 1,099 | 6 | % | 1,144 | 2 | % | |||||||||||||
Oil basins |
||||||||||||||||||||
Amounts in thousand of
barrels oil equivalent per
day (Mboe/d) |
||||||||||||||||||||
Bakken Shale |
5.5 | | na | 1.8 | 206 | % | ||||||||||||||
International |
9.7 | 9.7 | 0 | % | 9.2 | 5 | % | |||||||||||||
Subtotal (Mboe/d) |
15.2 | 9.7 | 57 | % | 11.0 | 38 | % | |||||||||||||
Total Production (MMcfe/d) |
1,261 | 1,157 | 9 | % | 1,210 | 4 | % | |||||||||||||
Williams (NYSE: WMB) | Second-Quarter 2011 Financial Results Aug. 3, 2011 | Page 6 of 10 |
Williams (NYSE: WMB) | Second-Quarter 2011 Financial Results Aug. 3, 2011 | Page 7 of 10 |
Williams (NYSE: WMB) | Second-Quarter 2011 Financial Results Aug. 3, 2011 | Page 8 of 10 |
| Amounts and nature of future capital expenditures; | ||
| Expansion and growth of our business and operations; | ||
| Financial condition and liquidity; | ||
| Business strategy; | ||
| Estimates of proved, probable, and possible gas and oil reserves; | ||
| Reserve potential; | ||
| Development drilling potential; | ||
| Cash flow from operations or results of operations; | ||
| Seasonality of certain business segments; and | ||
| Natural gas, natural gas liquids, and crude oil prices and demand. |
| Availability of supplies (including the uncertainties inherent in assessing, estimating, acquiring and developing future natural gas and oil reserves), market demand, volatility of prices, and the availability and cost of capital; | ||
| Inflation, interest rates, fluctuation in foreign exchange, and general economic conditions (including future disruptions and volatility in the global credit markets and the impact of these events on our customers and suppliers); | ||
| The strength and financial resources of our competitors; | ||
| Development of alternative energy sources; | ||
| The impact of operational and development hazards; | ||
| Costs of, changes in, or the results of laws, government regulations (including climate change regulation and/or potential additional regulation of drilling and completion of wells), environmental liabilities, litigation, and rate proceedings; | ||
| Our costs and funding obligations for defined benefit pension plans and other postretirement benefit plans; |
Williams (NYSE: WMB) | Second-Quarter 2011 Financial Results Aug. 3, 2011 | Page 9 of 10 |
| Changes in maintenance and construction costs; | ||
| Changes in the current geopolitical situation; | ||
| Our exposure to the credit risk of our customers; | ||
| Risks related to strategy and financing, including restrictions stemming from our debt agreements, future changes in our credit ratings and the availability and cost of credit; | ||
| Risks associated with future weather conditions; | ||
| Acts of terrorism; and | ||
| Additional risks described in our filings with the Securities and Exchange Commission (SEC). |
Williams (NYSE: WMB) | Second-Quarter 2011 Financial Results Aug. 3, 2011 | Page 10 of 10 |
2010 | 2011 | |||||||||||||||||||||||||||||||
(Dollars in millions, except per-share amounts) | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | 2nd Qtr | Year | ||||||||||||||||||||||||
Income (loss) from continuing operations attributable to The Williams
Companies, Inc. available to common stockholders |
$ | (195 | ) | $ | 188 | $ | (1,258 | ) | $ | 178 | $ | (1,087 | ) | $ | 329 | $ | 230 | $ | 559 | |||||||||||||
Income (loss) from continuing operations diluted earnings per common share |
$ | (0.33 | ) | $ | 0.31 | $ | (2.15 | ) | $ | 0.30 | $ | (1.86 | ) | $ | 0.55 | $ | 0.38 | $ | 0.94 | |||||||||||||
Adjustments: |
||||||||||||||||||||||||||||||||
Williams Partners (WP) |
||||||||||||||||||||||||||||||||
Gain on sale of base gas from Hester storage field |
$ | (5 | ) | $ | (3 | ) | $ | | $ | | $ | (8 | ) | $ | (4 | ) | $ | | $ | (4 | ) | |||||||||||
Involuntary conversion gain related to Ignacio |
| (4 | ) | | | (4 | ) | | | | ||||||||||||||||||||||
Involuntary conversion gain related to Hurricane Ike |
| (7 | ) | (7 | ) | | (14 | ) | | | | |||||||||||||||||||||
Gain on sale of certain assets |
| | (12 | ) | | (12 | ) | | | | ||||||||||||||||||||||
Settlement gain related to Green Canyon development |
| | | (6 | ) | (6 | ) | | | | ||||||||||||||||||||||
Loss related to Eminence storage facility leak |
| | | 5 | 5 | 4 | 3 | 7 | ||||||||||||||||||||||||
Impairment of certain gathering assets |
| | | 9 | 9 | | | | ||||||||||||||||||||||||
Unclaimed property assessment accrual adjustment- TGPL |
| (1 | ) | | | (1 | ) | | | | ||||||||||||||||||||||
Unclaimed property assessment accrual adjustment NWP |
| (1 | ) | | | (1 | ) | | | | ||||||||||||||||||||||
Total Williams Partners adjustments |
(5 | ) | (16 | ) | (19 | ) | 8 | (32 | ) | | 3 | 3 | ||||||||||||||||||||
Exploration & Production (E&P) |
||||||||||||||||||||||||||||||||
Gain on acreage swap |
| | | (7 | ) | (7 | ) | | | | ||||||||||||||||||||||
Gain on sale of certain assets |
| | (1 | ) | | (1 | ) | | | | ||||||||||||||||||||||
Impairment of goodwill |
| | 1,003 | | 1,003 | | | | ||||||||||||||||||||||||
Impairments of certain natural gas properties and reserves |
| | 678 | | 678 | | | | ||||||||||||||||||||||||
Prior years DD&A related to Piceance measurement issue |
| | | 19 | 19 | | | | ||||||||||||||||||||||||
Unclaimed property assessment accrual |
| 2 | | | 2 | | | | ||||||||||||||||||||||||
Mark-to-market adjustments |
(9 | ) | (4 | ) | (17 | ) | | (30 | ) | 18 | (2 | ) | 16 | |||||||||||||||||||
Total Exploration & Production adjustments |
(9 | ) | (2 | ) | 1,663 | 12 | 1,664 | 18 | (2 | ) | 16 | |||||||||||||||||||||
Midstream Canada & Olefins |
||||||||||||||||||||||||||||||||
Customer settlement gain |
| (6 | ) | | | (6 | ) | | | | ||||||||||||||||||||||
Total Midstream Canada & Olefins adjustments |
| (6 | ) | | | (6 | ) | | | | ||||||||||||||||||||||
Other |
||||||||||||||||||||||||||||||||
(Gain)/loss from Venezuela investment |
| (13 | ) | (30 | ) | | (43 | ) | (11 | ) | | (11 | ) | |||||||||||||||||||
Total Other adjustments |
| (13 | ) | (30 | ) | | (43 | ) | (11 | ) | | (11 | ) | |||||||||||||||||||
Adjustments included in segment profit (loss) |
(14 | ) | (37 | ) | 1,614 | 20 | 1,583 | 7 | 1 | 8 | ||||||||||||||||||||||
Adjustments below segment profit (loss) |
||||||||||||||||||||||||||||||||
Exploration & Production reorganization expenses Corporate |
| | | | | 4 | 2 | 6 | ||||||||||||||||||||||||
Augusta refinery environmental accrual Corporate |
| | 8 | | 8 | | | | ||||||||||||||||||||||||
Early debt retirement costs Corporate |
606 | | | | 606 | | | | ||||||||||||||||||||||||
Acceleration of unamortized debt costs related to credit facility amendment -
Corporate |
3 | | | | 3 | | | | ||||||||||||||||||||||||
Williams Partners |
1 | | | | 1 | | | | ||||||||||||||||||||||||
Restructuring transaction costs Corporate |
33 | | | | 33 | | | | ||||||||||||||||||||||||
Restructuring transaction costs Williams Partners |
6 | 2 | 4 | | 12 | | | | ||||||||||||||||||||||||
Allocation of Williams Partners adjustments to noncontrolling interests |
(4 | ) | 1 | 1 | (2 | ) | (4 | ) | | (1 | ) | (1 | ) | |||||||||||||||||||
645 | 3 | 13 | (2 | ) | 659 | 4 | 1 | 5 | ||||||||||||||||||||||||
Total adjustments |
631 | (34 | ) | 1,627 | 18 | 2,242 | 11 | 2 | 13 | |||||||||||||||||||||||
Less tax effect for above items |
(239 | ) | 9 | (238 | ) | | (468 | ) | (4 | ) | (1 | ) | (5 | ) | ||||||||||||||||||
Adjustments for tax-related items [1] |
11 | | | 66 | 77 | (124 | ) | | (124 | ) | ||||||||||||||||||||||
Adjusted income from continuing operations available to common stockholders |
$ | 208 | $ | 163 | $ | 131 | $ | 262 | $ | 764 | $ | 212 | $ | 231 | $ | 443 | ||||||||||||||||
Adjusted diluted earnings per common share, including mark-to-market adjustments [2] |
$ | 0.36 | $ | 0.28 | $ | 0.22 | $ | 0.44 | $ | 1.29 | $ | 0.36 | $ | 0.39 | $ | 0.74 | ||||||||||||||||
Weighted-average shares diluted (thousands) |
583,929 | 592,498 | 584,744 | 594,157 | 592,887 | 596,567 | 597,633 | 597,097 |
[1] | The first quarter of 2010 includes an adjustment for the reduction of tax benefits on the Medicare Part D federal subsidy due to enacted healthcare legislation. The fourth quarter of 2010 includes an adjustment to reflect taxes on undistributed earnings of certain foreign operations that are no longer considered permanently reinvested. The first quarter of 2011 includes federal settlements and an international revised assessment. | |
[2] | Interest expense, net of tax, associated with our convertible debentures has been added back to adjusted income from continuing operations available to common stockholders to calculate adjusted diluted earnings per common share. |
1
2010 | 2011 | |||||||||||||||||||||||||||||||
(Dollars in millions, except per-share amounts) | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | 2nd Qtr | Year | ||||||||||||||||||||||||
Revenues |
$ | 2,591 | $ | 2,289 | $ | 2,300 | $ | 2,420 | $ | 9,600 | $ | 2,575 | $ | 2,669 | $ | 5,244 | ||||||||||||||||
Segment costs and expenses: |
||||||||||||||||||||||||||||||||
Costs and operating expenses |
1,917 | 1,717 | 1,748 | 1,782 | 7,164 | 1,908 | 1,938 | 3,846 | ||||||||||||||||||||||||
Selling, general and administrative expenses |
111 | 123 | 122 | 142 | 498 | 137 | 134 | 271 | ||||||||||||||||||||||||
Impairments of goodwill and long-lived assets |
| | 1,681 | 10 | 1,691 | | | | ||||||||||||||||||||||||
Other (income) expense net |
(1 | ) | (12 | ) | (3 | ) | (10 | ) | (26 | ) | (1 | ) | 3 | 2 | ||||||||||||||||||
Total segment costs and expenses |
2,027 | 1,828 | 3,548 | 1,924 | 9,327 | 2,044 | 2,075 | 4,119 | ||||||||||||||||||||||||
Equity earnings (losses) |
40 | 39 | 38 | 46 | 163 | 40 | 45 | 85 | ||||||||||||||||||||||||
Income (loss) from investments |
| 13 | 30 | | 43 | 11 | | 11 | ||||||||||||||||||||||||
Total segment profit (loss) |
604 | 513 | (1,180 | ) | 542 | 479 | 582 | 639 | 1,221 | |||||||||||||||||||||||
Reclass equity earnings (losses) |
(40 | ) | (39 | ) | (38 | ) | (46 | ) | (163 | ) | (40 | ) | (45 | ) | (85 | ) | ||||||||||||||||
Reclass (income) loss from investments |
| (13 | ) | (30 | ) | | (43 | ) | (11 | ) | | (11 | ) | |||||||||||||||||||
General corporate expenses |
(85 | ) | (45 | ) | (42 | ) | (49 | ) | (221 | ) | (51 | ) | (47 | ) | (98 | ) | ||||||||||||||||
Operating income (loss) |
479 | 416 | (1,290 | ) | 447 | 52 | 480 | 547 | 1,027 | |||||||||||||||||||||||
Interest accrued |
(164 | ) | (154 | ) | (158 | ) | (156 | ) | (632 | ) | (158 | ) | (156 | ) | (314 | ) | ||||||||||||||||
Interest capitalized |
17 | 13 | 13 | 8 | 51 | 9 | 9 | 18 | ||||||||||||||||||||||||
Investing income net |
39 | 55 | 68 | 47 | 209 | 51 | 45 | 96 | ||||||||||||||||||||||||
Early debt retirement costs |
(606 | ) | | | | (606 | ) | | | | ||||||||||||||||||||||
Other income (expense) net |
(7 | ) | (1 | ) | (4 | ) | | (12 | ) | 4 | | 4 | ||||||||||||||||||||
Income (loss) from continuing operations before income taxes |
(242 | ) | 329 | (1,371 | ) | 346 | (938 | ) | 386 | 445 | 831 | |||||||||||||||||||||
Provision (benefit) for income taxes |
(94 | ) | 104 | (150 | ) | 114 | (26 | ) | (6 | ) | 145 | 139 | ||||||||||||||||||||
Income (loss) from continuing operations |
(148 | ) | 225 | (1,221 | ) | 232 | (912 | ) | 392 | 300 | 692 | |||||||||||||||||||||
Income (loss) from discontinued operations |
2 | (3 | ) | (5 | ) | (4 | ) | (10 | ) | (8 | ) | (3 | ) | (11 | ) | |||||||||||||||||
Net income (loss) |
(146 | ) | 222 | (1,226 | ) | 228 | (922 | ) | 384 | 297 | 681 | |||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests |
47 | 37 | 37 | 54 | 175 | 63 | 70 | 133 | ||||||||||||||||||||||||
Net income (loss) attributable to The Williams Companies, Inc. |
$ | (193 | ) | $ | 185 | $ | (1,263 | ) | $ | 174 | $ | (1,097 | ) | $ | 321 | $ | 227 | $ | 548 | |||||||||||||
Amounts attributable to The Williams Companies, Inc.: |
||||||||||||||||||||||||||||||||
Income (loss) from continuing operations |
$ | (195 | ) | $ | 188 | $ | (1,258 | ) | $ | 178 | $ | (1,087 | ) | $ | 329 | $ | 230 | $ | 559 | |||||||||||||
Income (loss) from discontinued operations |
2 | (3 | ) | (5 | ) | (4 | ) | (10 | ) | (8 | ) | (3 | ) | (11 | ) | |||||||||||||||||
Net income (loss) |
$ | (193 | ) | $ | 185 | $ | (1,263 | ) | $ | 174 | $ | (1,097 | ) | $ | 321 | $ | 227 | $ | 548 | |||||||||||||
Diluted earnings (loss) per common share: |
||||||||||||||||||||||||||||||||
Income (loss) from continuing operations |
$ | (0.33 | ) | $ | 0.31 | $ | (2.15 | ) | $ | 0.30 | $ | (1.86 | ) | $ | 0.55 | $ | 0.38 | $ | 0.94 | |||||||||||||
Income (loss) from discontinued operations |
| | (0.01 | ) | (0.01 | ) | (0.02 | ) | (0.01 | ) | | (0.02 | ) | |||||||||||||||||||
Net income (loss) |
$ | (0.33 | ) | $ | 0.31 | $ | (2.16 | ) | $ | 0.29 | $ | (1.88 | ) | $ | 0.54 | $ | 0.38 | $ | 0.92 | |||||||||||||
Weighted-average number of shares used in computations (thousands) |
583,929 | 592,498 | 584,744 | 594,157 | 584,552 | 596,567 | 597,633 | 597,097 | ||||||||||||||||||||||||
Common shares outstanding at end of period (thousands) |
584,223 | 584,546 | 584,724 | 585,891 | 585,891 | 587,990 | 588,637 | 588,637 | ||||||||||||||||||||||||
Market price per common share (end of period) |
$ | 23.10 | $ | 18.28 | $ | 19.11 | $ | 24.72 | $ | 24.72 | $ | 31.18 | $ | 30.25 | $ | 30.25 | ||||||||||||||||
Common dividends per share |
$ | 0.11 | $ | 0.125 | $ | 0.125 | $ | 0.125 | $ | 0.485 | $ | 0.125 | $ | 0.200 | $ | 0.325 |
2
2010 | 2011 | |||||||||||||||||||||||||||||||
(Dollars in millions) | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | 2nd Qtr | Year | ||||||||||||||||||||||||
Segment profit (loss): |
||||||||||||||||||||||||||||||||
Williams Partners |
$ | 424 | $ | 361 | $ | 371 | $ | 418 | $ | 1,574 | $ | 437 | $ | 471 | $ | 908 | ||||||||||||||||
Exploration & Production |
153 | 73 | (1,631 | ) | 70 | (1,335 | ) | 51 | 94 | 145 | ||||||||||||||||||||||
Midstream Canada & Olefins |
20 | 61 | 42 | 49 | 172 | 74 | 72 | 146 | ||||||||||||||||||||||||
Other |
7 | 18 | 38 | 5 | 68 | 20 | 2 | 22 | ||||||||||||||||||||||||
Total segment profit (loss) |
$ | 604 | $ | 513 | $ | (1,180 | ) | $ | 542 | $ | 479 | $ | 582 | $ | 639 | $ | 1,221 | |||||||||||||||
Adjustments: |
||||||||||||||||||||||||||||||||
Williams Partners |
$ | (5 | ) | $ | (16 | ) | $ | (19 | ) | $ | 8 | $ | (32 | ) | $ | | $ | 3 | $ | 3 | ||||||||||||
Exploration & Production |
(9 | ) | (2 | ) | 1,663 | 12 | 1,664 | 18 | (2 | ) | 16 | |||||||||||||||||||||
Midstream Canada & Olefins |
| (6 | ) | | | (6 | ) | | | | ||||||||||||||||||||||
Other |
| (13 | ) | (30 | ) | | (43 | ) | (11 | ) | | (11 | ) | |||||||||||||||||||
Total segment adjustments |
$ | (14 | ) | $ | (37 | ) | $ | 1,614 | $ | 20 | $ | 1,583 | $ | 7 | $ | 1 | $ | 8 | ||||||||||||||
Adjusted segment profit (loss): |
||||||||||||||||||||||||||||||||
Williams Partners |
$ | 419 | $ | 345 | $ | 352 | $ | 426 | $ | 1,542 | $ | 437 | $ | 474 | $ | 911 | ||||||||||||||||
Exploration & Production |
144 | 71 | 32 | 82 | 329 | 69 | 92 | 161 | ||||||||||||||||||||||||
Midstream Canada & Olefins |
20 | 55 | 42 | 49 | 166 | 74 | 72 | 146 | ||||||||||||||||||||||||
Other |
7 | 5 | 8 | 5 | 25 | 9 | 2 | 11 | ||||||||||||||||||||||||
Total adjusted segment profit (loss) |
$ | 590 | $ | 476 | $ | 434 | $ | 562 | $ | 2,062 | $ | 589 | $ | 640 | $ | 1,229 | ||||||||||||||||
Note: | Segment profit (loss) includes equity earnings (losses) and income (loss) from investments reported in investing income net in the Consolidated Statement of Operations. Equity earnings (losses) results from investments accounted for under the equity method. Income (loss) from investments results from the management of certain equity investments. |
3
2010 | 2011 | |||||||||||||||||||||||||||||||
(Dollars in millions) | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | 2nd Qtr | Year | ||||||||||||||||||||||||
Revenues |
$ | 1,490 | $ | 1,400 | $ | 1,327 | $ | 1,498 | $ | 5,715 | $ | 1,579 | $ | 1,671 | $ | 3,250 | ||||||||||||||||
Segment costs and expenses: |
||||||||||||||||||||||||||||||||
Costs and operating expenses |
1,033 | 1,002 | 923 | 1,026 | 3,984 | 1,105 | 1,163 | 2,268 | ||||||||||||||||||||||||
Selling, general, and administrative expenses |
62 | 70 | 70 | 79 | 281 | 73 | 74 | 147 | ||||||||||||||||||||||||
Other (income) expense net |
(3 | ) | (6 | ) | (13 | ) | 7 | (15 | ) | (11 | ) | (1 | ) | (12 | ) | |||||||||||||||||
Total segment costs and expenses |
1,092 | 1,066 | 980 | 1,112 | 4,250 | 1,167 | 1,236 | 2,403 | ||||||||||||||||||||||||
Equity earnings |
26 | 27 | 24 | 32 | 109 | 25 | 36 | 61 | ||||||||||||||||||||||||
Reported segment profit |
424 | 361 | 371 | 418 | 1,574 | 437 | 471 | 908 | ||||||||||||||||||||||||
Adjustments |
(5 | ) | (16 | ) | (19 | ) | 8 | (32 | ) | | 3 | 3 | ||||||||||||||||||||
Adjusted segment profit |
$ | 419 | $ | 345 | $ | 352 | $ | 426 | $ | 1,542 | $ | 437 | $ | 474 | $ | 911 | ||||||||||||||||
4
2010 | 2011 | |||||||||||||||||||||||||||||||
(Dollars in millions) | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | 2nd Qtr | Year | ||||||||||||||||||||||||
Revenues: |
||||||||||||||||||||||||||||||||
Production |
$ | 566 | $ | 507 | $ | 526 | $ | 545 | $ | 2,144 | $ | 554 | $ | 611 | $ | 1,165 | ||||||||||||||||
Gas management |
556 | 365 | 436 | 385 | 1,742 | 405 | 337 | 742 | ||||||||||||||||||||||||
Hedge ineffectiveness and mark-to-market gains (losses) |
9 | | 16 | 2 | 27 | 3 | 5 | 8 | ||||||||||||||||||||||||
International |
20 | 22 | 22 | 25 | 89 | 24 | 26 | 50 | ||||||||||||||||||||||||
Other |
6 | 7 | 5 | 6 | 24 | 3 | 2 | 5 | ||||||||||||||||||||||||
Total revenues |
1,157 | 901 | 1,005 | 963 | 4,026 | 989 | 981 | 1,970 | ||||||||||||||||||||||||
Segment costs and expenses: |
||||||||||||||||||||||||||||||||
Depreciation, depletion and amortization (including International) |
209 | 212 | 221 | 246 | 888 | 218 | 236 | 454 | ||||||||||||||||||||||||
Lease and other operating expenses |
51 | 54 | 61 | 70 | 236 | 65 | 64 | 129 | ||||||||||||||||||||||||
Operating taxes |
35 | 27 | 36 | 16 | 114 | 30 | 37 | 67 | ||||||||||||||||||||||||
Exploration expense |
4 | 9 | 26 | 19 | 58 | 21 | 20 | 41 | ||||||||||||||||||||||||
Third party & affiliate gathering, processing and transportation |
100 | 98 | 107 | 111 | 416 | 123 | 131 | 254 | ||||||||||||||||||||||||
Selling, general and administrative expenses (including International) |
41 | 42 | 44 | 52 | 179 | 55 | 50 | 105 | ||||||||||||||||||||||||
Gas management expenses |
558 | 377 | 447 | 392 | 1,774 | 417 | 341 | 758 | ||||||||||||||||||||||||
International (excluding DD&A and SG&A) |
11 | 10 | 9 | 11 | 41 | 10 | 13 | 23 | ||||||||||||||||||||||||
Impairment of goodwill and long-lived assets |
| | 1,681 | | 1,681 | | | | ||||||||||||||||||||||||
Other expense net |
| 4 | 9 | (19 | ) | (6 | ) | 5 | | 5 | ||||||||||||||||||||||
Total segment costs and expenses |
1,009 | 833 | 2,641 | 898 | 5,381 | 944 | 892 | 1,836 | ||||||||||||||||||||||||
Equity earnings |
5 | 5 | 5 | 5 | 20 | 6 | 5 | 11 | ||||||||||||||||||||||||
Reported segment profit |
153 | 73 | (1,631 | ) | 70 | (1,335 | ) | 51 | 94 | 145 | ||||||||||||||||||||||
Adjustments |
(9 | ) | (2 | ) | 1,663 | 12 | 1,664 | 18 | (2 | ) | 16 | |||||||||||||||||||||
Adjusted segment profit |
$ | 144 | $ | 71 | $ | 32 | $ | 82 | $ | 329 | $ | 69 | $ | 92 | $ | 161 | ||||||||||||||||
Operating statistics |
||||||||||||||||||||||||||||||||
Domestic: |
||||||||||||||||||||||||||||||||
Total domestic net volumes (Bcfe) |
98.2 | 100.0 | 103.4 | 107.5 | 409.1 | 103.9 | 109.5 | 213.4 | ||||||||||||||||||||||||
Net domestic volumes per day (MMcfe/d) |
1,091 | 1,099 | 1,124 | 1,169 | 1,121 | 1,155 | 1,203 | 1,179 | ||||||||||||||||||||||||
Domestic realized price ($/Mcfe) (1) |
$ | 5.769 | $ | 5.064 | $ | 5.088 | $ | 5.070 | $ | 5.241 | $ | 5.335 | $ | 5.578 | $ | 5.460 | ||||||||||||||||
Net domestic realized price ($/Mcfe) (2) |
$ | 4.754 | $ | 4.082 | $ | 4.055 | $ | 4.031 | $ | 4.223 | $ | 4.147 | $ | 4.388 | $ | 4.271 | ||||||||||||||||
Production taxes per Mcfe |
$ | 0.362 | $ | 0.274 | $ | 0.346 | $ | 0.146 | $ | 0.279 | $ | 0.286 | $ | 0.342 | $ | 0.315 | ||||||||||||||||
Lease and other operating expense per Mcfe |
$ | 0.518 | $ | 0.539 | $ | 0.592 | $ | 0.650 | $ | 0.576 | $ | 0.624 | $ | 0.583 | $ | 0.603 |
(1) | Domestic realized price is calculated the following way: production revenues (including hedging activities) divided by net volumes. | |
(2) | Net domestic realized price is calculated the following way: production revenues (including hedging activities) less gathering & processing expense divided by net volumes. |
International: |
||||||||||||||||||||||||||||||||
Total volumes including Equity Investee (Bcfe) |
6.2 | 6.7 | 6.4 | 5.5 | 24.8 | 6.3 | 6.6 | 12.9 | ||||||||||||||||||||||||
Volumes per day (MMcfe/d) |
69 | 73 | 69 | 60 | 68 | 70 | 73 | 71 | ||||||||||||||||||||||||
Volumes net to Williams (after minority interest) (Bcfe) |
4.8 | 5.3 | 5.0 | 4.4 | 19.5 | 4.9 | 5.3 | 10.2 | ||||||||||||||||||||||||
Volumes net to Williams per day (MMcfe/d) |
54 | 58 | 54 | 47 | 53 | 55 | 58 | 56 | ||||||||||||||||||||||||
Total Domestic and International: |
||||||||||||||||||||||||||||||||
Volumes net to Williams (after minority interest) (Bcfe) |
103.0 | 105.3 | 108.4 | 111.9 | 428.6 | 108.8 | 114.8 | 223.6 | ||||||||||||||||||||||||
Volumes net to Williams per day (MMcfe/d) |
1,145 | 1,157 | 1,178 | 1,216 | 1,174 | 1,210 | 1,261 | 1,235 |
5
2010 | 2011 | |||||||||||||||||||||||||||||||
(Dollars in millions) | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | 2nd Qtr | Year | ||||||||||||||||||||||||
Revenues: |
||||||||||||||||||||||||||||||||
Olefin and NGL production sales |
$ | 240 | $ | 236 | $ | 218 | $ | 224 | $ | 918 | $ | 290 | $ | 305 | $ | 595 | ||||||||||||||||
Marketing sales |
48 | 41 | 36 | 82 | 207 | 67 | 74 | 141 | ||||||||||||||||||||||||
Other revenues |
6 | 5 | 5 | 6 | 22 | 6 | 5 | 11 | ||||||||||||||||||||||||
294 | 282 | 259 | 312 | 1,147 | 363 | 384 | 747 | |||||||||||||||||||||||||
Intrasegment eliminations |
(22 | ) | (25 | ) | (27 | ) | (40 | ) | (114 | ) | (47 | ) | (37 | ) | (84 | ) | ||||||||||||||||
Total revenues |
272 | 257 | 232 | 272 | 1,033 | 316 | 347 | 663 | ||||||||||||||||||||||||
Segment costs and expenses: |
||||||||||||||||||||||||||||||||
Olefin and NGL production cost of goods sold |
195 | 153 | 150 | 147 | 645 | 186 | 200 | 386 | ||||||||||||||||||||||||
Marketing cost of goods sold |
48 | 44 | 35 | 81 | 208 | 66 | 73 | 139 | ||||||||||||||||||||||||
Operating costs |
23 | 25 | 23 | 23 | 94 | 23 | 29 | 52 | ||||||||||||||||||||||||
Other: |
||||||||||||||||||||||||||||||||
Selling, general and administrative expenses |
6 | 7 | 7 | 9 | 29 | 8 | 9 | 17 | ||||||||||||||||||||||||
Other (income) expense net |
2 | (8 | ) | 2 | 3 | (1 | ) | 6 | 1 | 7 | ||||||||||||||||||||||
Intrasegment eliminations |
(22 | ) | (25 | ) | (27 | ) | (40 | ) | (114 | ) | (47 | ) | (37 | ) | (84 | ) | ||||||||||||||||
Total segment costs and expenses |
252 | 196 | 190 | 223 | 861 | 242 | 275 | 517 | ||||||||||||||||||||||||
Reported segment profit |
20 | 61 | 42 | 49 | 172 | 74 | $ | 72 | $ | 146 | ||||||||||||||||||||||
Adjustments |
| (6 | ) | | | (6 | ) | | | | ||||||||||||||||||||||
Adjusted segment profit |
$ | 20 | $ | 55 | $ | 42 | $ | 49 | $ | 166 | $ | 74 | $ | 72 | $ | 146 | ||||||||||||||||
Operating statistics |
||||||||||||||||||||||||||||||||
Geismar ethylene sales volumes (million lbs) |
263 | 251 | 275 | 192 | 981 | 272 | 254 | 526 | ||||||||||||||||||||||||
Canadian propylene sales volumes (million lbs) |
22 | 30 | 33 | 42 | 127 | 38 | 26 | 64 | ||||||||||||||||||||||||
Canadian NGL sales volumes (million gallons)* |
28 | 36 | 34 | 47 | 145 | 45 | 32 | 77 |
* | NGL products include: propane, normal butane, isobutane/butylene, and condensate. |
6
2010 | 2011 | |||||||||||||||||||||||||||||||
(Dollars in millions) | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | 2nd Qtr | Year | ||||||||||||||||||||||||
Capital expenditures: |
||||||||||||||||||||||||||||||||
Williams Partners |
$ | 120 | $ | 221 | $ | 246 | $ | 250 | $ | 837 | $ | 156 | $ | 153 | $ | 309 | ||||||||||||||||
Exploration & Production |
286 | 263 | 894 | 396 | 1,839 | 319 | 362 | 681 | ||||||||||||||||||||||||
Midstream Canada & Olefins |
18 | 22 | 26 | 28 | 94 | 45 | 48 | 93 | ||||||||||||||||||||||||
Other |
4 | 6 | 5 | 3 | 18 | 6 | 5 | 11 | ||||||||||||||||||||||||
Total* |
$ | 428 | $ | 512 | $ | 1,171 | $ | 677 | $ | 2,788 | $ | 526 | $ | 568 | $ | 1,094 | ||||||||||||||||
Purchase of businesses: |
||||||||||||||||||||||||||||||||
Williams Partners |
$ | | $ | | $ | | $ | 150 | $ | 150 | $ | | $ | | $ | | ||||||||||||||||
Exploration & Production |
| | | 949 | 949 | | | | ||||||||||||||||||||||||
Total |
$ | | $ | | $ | | $ | 1,099 | $ | 1,099 | $ | | $ | | $ | | ||||||||||||||||
Purchase of investments: |
||||||||||||||||||||||||||||||||
Williams Partners |
$ | 9 | $ | 6 | $ | 435 | $ | 26 | $ | 476 | $ | 36 | $ | 65 | $ | 101 | ||||||||||||||||
Exploration & Production |
2 | 2 | 2 | 1 | 7 | 4 | 2 | 6 | ||||||||||||||||||||||||
Other |
2 | (1 | ) | 2 | 2 | 5 | 2 | 23 | 25 | |||||||||||||||||||||||
Total |
$ | 13 | $ | 7 | $ | 439 | $ | 29 | $ | 488 | $ | 42 | $ | 90 | $ | 132 | ||||||||||||||||
Summary: |
||||||||||||||||||||||||||||||||
Williams Partners |
$ | 129 | $ | 227 | $ | 681 | $ | 426 | $ | 1,463 | $ | 192 | $ | 218 | $ | 410 | ||||||||||||||||
Exploration & Production |
288 | 265 | 896 | 1,346 | 2,795 | 323 | 364 | 687 | ||||||||||||||||||||||||
Midstream Canada & Olefins |
18 | 22 | 26 | 28 | 94 | 45 | 48 | 93 | ||||||||||||||||||||||||
Other |
6 | 5 | 7 | 5 | 23 | 8 | 28 | 36 | ||||||||||||||||||||||||
Total |
$ | 441 | $ | 519 | $ | 1,610 | $ | 1,805 | $ | 4,375 | $ | 568 | $ | 658 | $ | 1,226 | ||||||||||||||||
Cumulative summary: |
||||||||||||||||||||||||||||||||
Williams Partners |
$ | 129 | $ | 356 | $ | 1,037 | $ | 1,463 | $ | 1,463 | $ | 192 | $ | 410 | $ | 410 | ||||||||||||||||
Exploration & Production |
288 | 553 | 1,449 | 2,795 | 2,795 | 323 | 687 | 687 | ||||||||||||||||||||||||
Midstream Canada & Olefins |
18 | 40 | 66 | 94 | 94 | 45 | 93 | 93 | ||||||||||||||||||||||||
Other |
6 | 11 | 18 | 23 | 23 | 8 | 36 | 36 | ||||||||||||||||||||||||
Total |
$ | 441 | $ | 960 | $ | 2,570 | $ | 4,375 | $ | 4,375 | $ | 568 | $ | 1,226 | $ | 1,226 | ||||||||||||||||
Capital expenditures incurred and purchase of investments: |
||||||||||||||||||||||||||||||||
Increases to property, plant, and equipment |
$ | 410 | $ | 488 | $ | 1,174 | $ | 683 | $ | 2,755 | $ | 482 | $ | 604 | $ | 1,086 | ||||||||||||||||
Purchase of businesses |
| | | 1,099 | 1,099 | | | | ||||||||||||||||||||||||
Purchase of investments |
13 | 7 | 439 | 29 | 488 | 42 | 90 | 132 | ||||||||||||||||||||||||
Total |
$ | 423 | $ | 495 | $ | 1,613 | $ | 1,811 | $ | 4,342 | $ | 524 | $ | 694 | $ | 1,218 | ||||||||||||||||
*Increases to property, plant, and equipment |
$ | 410 | $ | 488 | $ | 1,174 | $ | 683 | $ | 2,755 | $ | 482 | $ | 604 | $ | 1,086 | ||||||||||||||||
Changes in related accounts payable and accrued liabilities |
18 | 24 | (3 | ) | (6 | ) | 33 | 44 | (36 | ) | 8 | |||||||||||||||||||||
Capital expenditures |
$ | 428 | $ | 512 | $ | 1,171 | $ | 677 | $ | 2,788 | $ | 526 | $ | 568 | $ | 1,094 | ||||||||||||||||
7
2010 | 2011 | |||||||||||||||||||||||||||||||
(Dollars in millions) | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | 2nd Qtr | Year | ||||||||||||||||||||||||
Depreciation, depletion, and amortization: |
||||||||||||||||||||||||||||||||
Williams Partners |
$ | 140 | $ | 140 | $ | 140 | $ | 148 | $ | 568 | $ | 150 | $ | 154 | $ | 304 | ||||||||||||||||
Exploration & Production |
211 | 214 | 224 | 246 | 895 | 219 | 237 | 456 | ||||||||||||||||||||||||
Midstream Canada & Olefins |
6 | 5 | 6 | 6 | 23 | 6 | 7 | 13 | ||||||||||||||||||||||||
Other |
4 | 7 | 4 | 6 | 21 | 6 | 5 | 11 | ||||||||||||||||||||||||
Total |
$ | 361 | $ | 366 | $ | 374 | $ | 406 | $ | 1,507 | $ | 381 | $ | 403 | $ | 784 | ||||||||||||||||
Other selected financial data: |
||||||||||||||||||||||||||||||||
Cash and cash equivalents |
$ | 1,644 | $ | 1,601 | $ | 1,015 | $ | 795 | $ | 795 | $ | 923 | $ | 1,166 | $ | 1,166 | ||||||||||||||||
Total assets |
$ | 25,129 | $ | 24,947 | $ | 23,848 | $ | 24,972 | $ | 24,972 | $ | 25,083 | $ | 25,705 | $ | 25,705 | ||||||||||||||||
Capital structure: |
||||||||||||||||||||||||||||||||
Debt |
||||||||||||||||||||||||||||||||
Current |
$ | 10 | $ | 160 | $ | 508 | $ | 508 | $ | 508 | $ | 532 | $ | 383 | $ | 383 | ||||||||||||||||
Noncurrent |
$ | 8,615 | $ | 8,358 | $ | 8,002 | $ | 8,600 | $ | 8,600 | $ | 8,577 | $ | 8,927 | $ | 8,927 | ||||||||||||||||
Stockholders equity |
$ | 7,919 | $ | 7,979 | $ | 7,025 | $ | 7,288 | $ | 7,288 | $ | 7,537 | $ | 7,716 | $ | 7,716 | ||||||||||||||||
Debt to debt-plus-stockholders equity ratio |
52.1 | % | 51.6 | % | 54.8 | % | 55.6 | % | 55.6 | % | 54.7 | % | 54.7 | % | 54.7 | % |
8
2011 Guidance | 2012 Guidance | ||||||||||||||||||||||||
Dollars in millions | Low | Midpoint | High | Low | Midpoint | High | |||||||||||||||||||
Reported segment profit: |
|||||||||||||||||||||||||
Williams Partners (WPZ) |
$ | 1,742 | $ | 1,887 | $ | 2,032 | $ | 1,780 | $ | 2,050 | $ | 2,320 | |||||||||||||
Exploration & Production |
250 | 375 | 500 | 325 | 600 | 875 | |||||||||||||||||||
Midstream Canada & Olefins |
250 | 300 | 350 | 275 | 325 | 375 | |||||||||||||||||||
Other |
21 | 14 | 6 | (5 | ) | | 5 | ||||||||||||||||||
Total Reported segment profit |
2,263 | 2,576 | 2,888 | 2,375 | 2,975 | 3,575 | |||||||||||||||||||
Adjustments: |
|||||||||||||||||||||||||
Gain on sale of base gas from Hester storage field |
(4 | ) | (4 | ) | (4 | ) | | | | ||||||||||||||||
Loss related to Eminence storage facility leak |
7 | 7 | 7 | | | | |||||||||||||||||||
Total Williams Partners Adjustments |
3 | 3 | 3 | | | | |||||||||||||||||||
Mark-to-Market adjustment |
20 | 20 | 20 | | | | |||||||||||||||||||
Total Exploration & Production Adjustments |
20 | 20 | 20 | | | | |||||||||||||||||||
Gain from Venezuela investment |
(11 | ) | (11 | ) | (11 | ) | | | | ||||||||||||||||
Total Other Adjustments |
(11 | ) | (11 | ) | (11 | ) | | | | ||||||||||||||||
Total Adjustments |
12 | 12 | 12 | | | | |||||||||||||||||||
Adjusted segment profit: |
|||||||||||||||||||||||||
Williams Partners (WPZ) |
1,745 | 1,890 | 2,035 | 1,780 | 2,050 | 2,320 | |||||||||||||||||||
Exploration & Production |
270 | 395 | 520 | 325 | 600 | 875 | |||||||||||||||||||
Midstream Canada & Olefins |
250 | 300 | 350 | 275 | 325 | 375 | |||||||||||||||||||
Other |
10 | 3 | (5 | ) | (5 | ) | | 5 | |||||||||||||||||
Total Adjusted segment profit |
$ | 2,275 | $ | 2,588 | $ | 2,900 | $ | 2,375 | $ | 2,975 | $ | 3,575 |
2011 Guidance | 2012 Guidance | ||||||||||||||||||||||||
Dollars in millions | Low | Midpoint | High | Low | Midpoint | High | |||||||||||||||||||
Reported income from continuing operations |
$ | 922 | $ | 1,072 | $ | 1,222 | $ | 875 | $ | 1,180 | $ | 1,485 | |||||||||||||
Adjustments pretax |
17 | 17 | 17 | | | | |||||||||||||||||||
Less taxes |
(129 | )1 | (129 | )1 | (129 | )1 | | | | ||||||||||||||||
Adjustments after tax |
(112 | ) | (112 | ) | (112 | ) | | | | ||||||||||||||||
Adjusted income from continuing ops |
$ | 810 | $ | 960 | $ | 1,110 | $ | 875 | $ | 1,180 | $ | 1,485 | |||||||||||||
Adjusted diluted EPS |
$ | 1.35 | $ | 1.60 | $ | 1.85 | $ | 1.45 | $ | 1.95 | $ | 2.45 |
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