Delaware | 1-4174 | 73-0569878 | ||
(State or other | (Commission | (I.R.S. Employer | ||
jurisdiction of | File Number) | Identification No.) | ||
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, dated September 6, 2011 |
2
THE WILLIAMS COMPANIES, INC. | ||||||
Date: September 6, 2011 |
||||||
By: | /s/ Sarah C. Miller
Assistant General Counsel and Assistant Secretary |
3
EXHIBIT | ||
NUMBER | DESCRIPTION | |
Exhibit 99.1 | Press Release, dated September 6, 2011 |
4
Exhibit 99.1
News Release
|
Williams (NYSE: WMB) One Williams Center Tulsa, OK 74172 800-Williams www.williams.com |
MEDIA CONTACT:
|
INVESTOR CONTACT: | |
Jeff Pounds
|
Sharna Reingold | |
(918) 573-3332
|
(918) 573-2078 |
| Expect Growth in Business and Williams Partners Distributions to Drive Annual 10%-15% Dividend Increases | ||
| New Dividend Policy Supports Continued High Payouts | ||
| New 2011-13 Guidance Reflects E&P Separation | ||
| Committed to E&P Separation; IPO Timing Dependent on Market Conditions | ||
| CEO Alan Armstrong to Discuss Strategy at Barclays Capital CEO Energy-Power Conference |
2011 | 2012 | 2013 | ||||||||||||||||||||||||||||||||||
As of Sept. 6, 2011 | Low | Mid | High | Low | Mid | High | Low | Mid | High | |||||||||||||||||||||||||||
Natural Gas ($/MMBtu): |
||||||||||||||||||||||||||||||||||||
NYMEX |
$ | 3.40 | $ | 4.25 | $ | 5.10 | $ | 4.00 | $ | 5.00 | $ | 6.00 | $ | 4.25 | $ | 5.30 | $ | 6.35 | ||||||||||||||||||
Rockies |
$ | 3.10 | $ | 3.85 | $ | 4.60 | $ | 3.65 | $ | 4.55 | $ | 5.45 | $ | 3.90 | $ | 4.85 | $ | 5.80 | ||||||||||||||||||
Avg. San Juan/Mid-Continent |
$ | 3.20 | $ | 4.00 | $ | 4.80 | $ | 3.70 | $ | 4.65 | $ | 5.60 | $ | 3.95 | $ | 4.95 | $ | 5.95 | ||||||||||||||||||
Oil / NGL: |
||||||||||||||||||||||||||||||||||||
Crude Oil -WTI ($ per barrel) |
$ | 80 | $ | 95 | $ | 110 | $ | 80 | $ | 95 | $ | 110 | $ | 80 | $ | 95 | $ | 110 | ||||||||||||||||||
Crude to Gas Ratio |
21.6 | x | 22.5 | x | 23.5 | x | 18.3 | x | 19.2 | x | 20.0 | x | 17.3 | x | 18.1 | x | 18.8 | x | ||||||||||||||||||
NGL to Crude Oil Relationship |
57 | % | 53 | % | 50 | % | 53 | % | 54 | % | 54 | % | 51 | % | 52 | % | 54 | % | ||||||||||||||||||
Average NGL margins ($ per gallon) (1) |
$ | 0.72 | $ | 0.78 | $ | 0.84 | $ | 0.59 | $ | 0.75 | $ | 0.90 | $ | 0.55 | $ | 0.72 | $ | 0.88 | ||||||||||||||||||
Composite frac spread ($ per gallon) (2) |
$ | 0.80 | $ | 0.85 | $ | 0.89 | $ | 0.68 | $ | 0.81 | $ | 0.92 | $ | 0.63 | $ | 0.74 | $ | 0.90 | ||||||||||||||||||
Capital & Investment Expenditures (millions) |
||||||||||||||||||||||||||||||||||||
Williams Partners |
||||||||||||||||||||||||||||||||||||
Midstream |
$ | 875 | $ | 1,000 | $ | 1,125 | $ | 900 | $ | 1,000 | $ | 1,100 | $ | 750 | $ | 900 | $ | 1,050 | ||||||||||||||||||
Gas Pipeline (3) |
535 | 573 | 610 | 580 | 630 | 680 | 600 | 650 | 700 | |||||||||||||||||||||||||||
Williams Partners -Total |
$ | 1,410 | $ | 1,573 | $ | 1,735 | $ | 1,480 | $ | 1,630 | $ | 1,780 | $ | 1,350 | $ | 1,550 | $ | 1,750 | ||||||||||||||||||
Midstream Canada & Olefins |
350 | 400 | 450 | 400 | 450 | 500 | 500 | 600 | 700 | |||||||||||||||||||||||||||
Total Capital & Investment Expenditures (4) |
$ | 1,825 | $ | 2,025 | $ | 2,225 | $ | 1,900 | $ | 2,100 | $ | 2,300 | $ | 1,875 | $ | 2,175 | $ | 2,475 | ||||||||||||||||||
Adjusted Segment Profit (millions) (5) |
||||||||||||||||||||||||||||||||||||
Williams Partners |
||||||||||||||||||||||||||||||||||||
Midstream |
$ | 1,075 | $ | 1,200 | $ | 1,325 | $ | 1,000 | $ | 1,250 | $ | 1,500 | $ | 1,025 | $ | 1,325 | $ | 1,625 | ||||||||||||||||||
Gas Pipeline |
670 | 690 | 710 | 680 | 700 | 720 | 700 | 725 | 750 | |||||||||||||||||||||||||||
Williams Partners -Total |
$ | 1,745 | $ | 1,890 | $ | 2,035 | $ | 1,680 | $ | 1,950 | $ | 2,220 | $ | 1,725 | $ | 2,050 | $ | 2,375 | ||||||||||||||||||
Midstream Canada & Olefins |
250 | 300 | 350 | 275 | 325 | 375 | 275 | 350 | 425 | |||||||||||||||||||||||||||
Total Adjusted Segment Profit (4) |
$ | 2,005 | $ | 2,193 | $ | 2,380 | $ | 1,950 | $ | 2,275 | $ | 2,600 | $ | 2,000 | $ | 2,400 | $ | 2,800 | ||||||||||||||||||
Adjusted Segment Profit + DD&A (millions) |
||||||||||||||||||||||||||||||||||||
Williams Partners |
||||||||||||||||||||||||||||||||||||
Midstream |
$ | 1,335 | $ | 1,470 | $ | 1,605 | $ | 1,275 | $ | 1,535 | $ | 1,795 | $ | 1,315 | $ | 1,625 | $ | 1,935 | ||||||||||||||||||
Gas Pipeline |
1,020 | 1,050 | 1,080 | 1,040 | 1,070 | 1,100 | 1,070 | 1,105 | 1,140 | |||||||||||||||||||||||||||
Williams Partners -Total |
$ | 2,355 | $ | 2,520 | $ | 2,685 | $ | 2,315 | $ | 2,605 | $ | 2,895 | $ | 2,385 | $ | 2,730 | $ | 3,075 | ||||||||||||||||||
Midstream Canada & Olefins |
270 | 325 | 380 | 305 | 360 | 415 | 315 | 395 | 475 | |||||||||||||||||||||||||||
Total Adjusted Segment Profit + DD&A (4) |
$ | 2,670 | $ | 2,870 | $ | 3,070 | $ | 2,625 | $ | 2,975 | $ | 3,325 | $ | 2,725 | $ | 3,150 | $ | 3,575 | ||||||||||||||||||
(1) | Average NGL margins are for Williams Partners only. Excludes Midstream Canada & Olefins. | |
(2) | Composite frac spread is based on Henry Hub natural gas and Mont Belvieu NGLs. | |
(3) | Capital expenditures for 2011 exclude $330 million for Williams Partners acquisition of a 24.5% interest in Gulfstream system from Williams. | |
(4) | The sum of the ranges for each business line may not match total range; does not include the Other segment. | |
(5) | Adjusted Segment Profit is adjusted to remove items considered unrepresentative of ongoing operations and is a non-GAAP measure. A reconciliation to the most relevant GAAP measure is attached to this news release. |
| 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; | ||
| 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). |
2011 Guidance | 2012 Guidance | 2013 Guidance | ||||||||||||||||||||||||||||||||||
PRE E&P SPIN | POST E&P SPIN DOES NOT INCLUDE EXPLORATION & PROD. | |||||||||||||||||||||||||||||||||||
Dollars in millions | Low | Midpoint | High | Low | Midpoint | High | Low | Midpoint | High | |||||||||||||||||||||||||||
Reported segment profit: |
||||||||||||||||||||||||||||||||||||
Williams Partners (WPZ) |
$ | 1,742 | $ | 1,887 | $ | 2,032 | $ | 1,680 | $ | 1,950 | $ | 2,220 | $ | 1,725 | $ | 2,050 | $ | 2,375 | ||||||||||||||||||
Exploration & Production |
250 | 375 | 500 | | | | | | | |||||||||||||||||||||||||||
Midstream Canada & Olefins |
250 | 300 | 350 | 275 | 325 | 375 | 275 | 350 | 425 | |||||||||||||||||||||||||||
Other |
21 | 14 | 6 | (5 | ) | | 5 | | | | ||||||||||||||||||||||||||
Total Reported segment profit |
2,263 | 2,576 | 2,888 | 1,950 | 2,275 | 2,600 | 2,000 | 2,400 | 2,800 | |||||||||||||||||||||||||||
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 (Gas Pipeline) 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 | 1,680 | 1,950 | 2,220 | 1,725 | 2,050 | 2,375 | |||||||||||||||||||||||||||
Exploration & Production |
270 | 395 | 520 | | | | | | | |||||||||||||||||||||||||||
Midstream Canada & Olefins |
250 | 300 | 350 | 275 | 325 | 375 | 275 | 350 | 425 | |||||||||||||||||||||||||||
Other |
10 | 3 | (5 | ) | (5 | ) | | 5 | | | | |||||||||||||||||||||||||
Total Adjusted segment profit |
$ | 2,275 | $ | 2,588 | $ | 2,900 | $ | 1,950 | $ | 2,275 | $ | 2,600 | $ | 2,000 | $ | 2,400 | $ | 2,800 |