Delaware | 1-4174 | 73-0569878 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
One Williams Center, Tulsa, Oklahoma | 74172 | |
(Address of principal executive offices) | (Zip Code) |
Exhibit 99.1 | Press release dated September 19, 2011 and its accompanying schedules. |
2
THE WILLIAMS COMPANIES, INC. |
||||
Date: September 19, 2011 | By: | /s/ William H. Gault | ||
Name: | William H. Gault | |||
Title: | Assistant Corporate Secretary | |||
3
EXHIBIT | ||
NUMBER | DESCRIPTION | |
Exhibit 99.1 | Press release dated September 19, 2011 and its accompanying schedules. |
4
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 |
| Company to Detail Transformation to High-Dividend, High-Growth Energy Infrastructure Company | ||
| In-Depth Presentations to Cover Infrastructure Businesses; Including Strategies, Key Markets | ||
| New 2012-13 Adjusted Earnings Per Share Guidance Reflecting E&P Separation Introduced |
2011 | ||||||||||||
As of Sept. 19, 2011 | Low | Mid | High | |||||||||
Williams |
||||||||||||
Adjusted Diluted Earnings Per Share (1)
|
$ | 1.35 | $ | 1.60 | $ | 1.85 | ||||||
Cash Flow from Continuing Operations (millions)
|
$ | 2,755 | $ | 3,055 | $ | 3,355 | ||||||
Williams Partners L.P. |
||||||||||||
DCF Attributable to Partnership Ops. (millions) (1)
|
$ | 1,350 | $ | 1,500 | $ | 1,650 | ||||||
Cash Distribution Coverage Ratio (1)
|
1.2x | 1.3x | 1.4x |
2012 | 2013 | |||||||||||||||||||||||
Low | Mid | High | Low | Mid | High | |||||||||||||||||||
Williams |
||||||||||||||||||||||||
Adjusted Diluted Earnings Per Share (1)
|
$ | 1.15 | $ | 1.38 | $ | 1.60 | $ | 1.15 | $ | 1.48 | $ | 1.80 | ||||||||||||
Cash Flow from Continuing Operations (millions)
|
$ | 1,950 | $ | 2,200 | $ | 2,450 | $ | 2,050 | $ | 2,250 | $ | 2,450 | ||||||||||||
Williams Partners L.P. |
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DCF Attributable to Partnership Ops. (millions) (1)
|
$ | 1,335 | $ | 1,585 | $ | 1,835 | $ | 1,450 | $ | 1,775 | $ | 2,100 | ||||||||||||
Cash Distribution Coverage Ratio (1)
|
1.0x | 1.2x | 1.3x | 1.0x | 1.2x | 1.3x |
(1) | Adjusted Diluted Earnings Per Share (WMB), DCF Attributable to Partnership Operations (WPZ) and Cash Distribution Coverage Ratio (WPZ) are non- GAAP measures. Reconciliations to the most relevant measures included in GAAP are 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). |
| Amounts and nature of future capital expenditures; | ||
| Expansion and growth of our business and operations; | ||
| Financial condition and liquidity; | ||
| Business strategy; | ||
| Cash flow from operations or results of operations; | ||
| The levels of cash distributions to unitholders; | ||
| Seasonality of certain business segments; and | ||
| Natural gas and natural gas liquids prices and demand. |
| Whether we have sufficient cash from operations to enable us to maintain current levels of cash distributions or to pay cash distributions following establishment of cash reserves and payment of fees and expenses, including payments to our general partner; | ||
| Availability of supplies (including the uncertainties inherent in assessing and estimating future natural gas reserves), market demand, volatility of prices, and the availability and cost of capital; | ||
| Inflation, interest rates 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 allocated costs for defined benefit pension plans and other postretirement benefit plans sponsored by our affiliates; | ||
| Changes in maintenance and construction costs; | ||
| Changes in the current geopolitical situation; | ||
| Our exposure to the credit risks 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). |
September 20 Guidance | ||||||||||||
Reported | Adjustment | Adjusted | ||||||||||
Dollars in millions | Low - High | Items | Low - High | |||||||||
Segment profit |
$ | 2,263-2,888 | $ | 12 | $ | 2,275-2,900 | ||||||
Net interest expense |
(600)-(630) | 25 | 1 | (575)-(605 | ) | |||||||
General corporate/other/rounding |
(633)-(658 | ) | 473 | 1 | (160)-(185 | ) | ||||||
Pretax income |
1,030-1,600 | 510 | 1,540-2,110 | |||||||||
Provision for income tax |
(174)-(374 | ) | (301 | )2 | (475)-(675 | ) | ||||||
Income from continuing operations |
$ | 856-1,226 | $ | 209 | $ | 1,065-1,435 | ||||||
Net income attributable to noncontrolling interests |
(254)-(324 | ) | (1 | ) | (255)-(325 | ) | ||||||
Amounts attributable to Williams: |
||||||||||||
Income from continuing operations |
$ | 602-902 | $ | 208 | $ | 810-1,110 | ||||||
Adjusted Diluted EPS |
$ | 1.00-1.50 | $ | 1.35-1.85 | ||||||||
Notes: | A more detailed schedule reconciling Income from continuing operations to Adjusted income from continuing operations is provided in this presentation. | |
1 Represents separation and transition costs related to E&P separation. | ||
2 Includes tax settlements and a revised assessment related to certain federal and international matters recorded in 1Q 2011. |
2011 Guidance | 2012 Guidance | 2013 Guidance | ||||||||||||||||||||||||||||||||||
PRE E&P SEPARATION | POST E&P SEPARATION DOES NOT INCLUDE EXPL. & PROD. | |||||||||||||||||||||||||||||||||||
Dollars in millions | Low | Midpoint | High | Low | Midpoint | High | Low | Midpoint | High | |||||||||||||||||||||||||||
Reported income from continuing operations |
$ | 602 | $ | 752 | $ | 902 | $ | 695 | $ | 833 | $ | 970 | $ | 695 | $ | 893 | $ | 1,090 | ||||||||||||||||||
Adjustments pretax |
509 | 1 | 509 | 1 | 509 | 1 | | | | | | | ||||||||||||||||||||||||
Less taxes |
(301 | )1 | (301 | )1 | (301 | )1 | | | | | | | ||||||||||||||||||||||||
Adjustments after tax |
208 | 208 | 208 | | | | | | | |||||||||||||||||||||||||||
Adjusted income from continuing ops |
$ | 810 | $ | 960 | $ | 1,110 | $ | 695 | $ | 833 | $ | 970 | $ | 695 | $ | 893 | $ | 1,090 | ||||||||||||||||||
Adjusted diluted EPS |
$ | 1.35 | $ | 1.60 | $ | 1.85 | $ | 1.15 | $ | 1.38 | $ | 1.60 | $ | 1.15 | $ | 1.48 | $ | 1.80 |
Notes: | All amounts attributable to Williams. | |
1 A detailed schedule of adjustments is presented in this presentation. |
$ in millions | ||||
Segment Profit Adjustments: |
||||
Williams Partners (WPZ) |
||||
Gain on sale of base gas from Hester storage field |
$ | (4 | ) | |
Loss related to Eminence storage facility leak |
7 | |||
Total Williams Partners adjustments |
3 | |||
Exploration & Production (E&P) |
||||
Mark-to-market adjustments |
20 | |||
Total Exploration & Production adjustments |
20 | |||
Midstream Canada & Olefins |
||||
Total Midstream Canada & Olefins adjustments |
| |||
Other |
||||
(Gain)/loss from Venezuela investment |
(11 | ) | ||
Total Other adjustments |
(11 | ) | ||
Adjustments included in segment profit (loss) |
$ | 12 | ||
Adjustments below segment profit (loss) |
||||
E&P Separation and Transition Costs |
473 | |||
E&P Separation and Transition Costs Interest Related |
25 | |||
Allocation of Williams Partners adjustments to noncontrolling interests |
(1 | ) | ||
Total adjustments below segment profit |
497 | |||
Total adjustments |
$ | 509 | ||
Less tax effect for above items |
(177 | ) | ||
Adjustments for tax-related items [1] |
(124 | ) | ||
Total adjustments after tax |
$ | 208 |
1) | Includes federal tax settlements and an international revised assessment |
2011 Guidance | 2012 Guidance | 2013 Guidance | ||||||||||||||||||||||||||||||||||
Dollars in millions | Low | Midpoint | High | Low | Midpoint | High | Low | Midpoint | High | |||||||||||||||||||||||||||
Net Income |
$ | 1,200 | $ | 1,350 | $ | 1,500 | $ | 1,100 | $ | 1,365 | $ | 1,630 | $ | 1,125 | $ | 1,463 | $ | 1,800 | ||||||||||||||||||
D D & A |
610 | 630 | 650 | 635 | 655 | 675 | 660 | 680 | 700 | |||||||||||||||||||||||||||
Maintenance Capex 1 |
(500 | ) | (523 | ) | (545 | ) | (410 | ) | (445 | ) | (480 | ) | (350 | ) | (385 | ) | (420 | ) | ||||||||||||||||||
WMB Indemnity 1 |
30 | 30 | 30 | | | | | | | |||||||||||||||||||||||||||
Other / Rounding |
10 | 13 | 15 | 10 | 10 | 10 | 15 | 18 | 20 | |||||||||||||||||||||||||||
Distributable Cash Flow |
$ | 1,350 | $ | 1,500 | $ | 1,650 | $ | 1,335 | $ | 1,585 | $ | 1,835 | $ | 1,450 | $ | 1,775 | $ | 2,100 | ||||||||||||||||||
Cash Distributions 2 |
$ | 1,143 | $ | 1,160 | $ | 1,178 | $ | 1,272 | $ | 1,337 | $ | 1,396 | $ | 1,417 | $ | 1,525 | $ | 1,632 | ||||||||||||||||||
Cash Distribution Coverage Ratio |
1.2 | x | 1.3 | x | 1.4 | x | 1.0 | x | 1.2 | x | 1.3 | x | 1.0 | x | 1.2 | x | 1.3 | x | ||||||||||||||||||
Net Income / Cash Distributions |
1.0 | x | 1.2 | x | 1.3 | x | 0.9 | x | 1.0 | x | 1.2 | x | 0.8 | x | 1.0 | x | 1.1 | x |
Notes: | 1 Maintenance capex includes $30 million that will be reimbursed by WMB and thus does
not affect distributable cash flow. 2 Distributions reflect accrued distributions of $0.7325 per LP unit in 2Q 2011 increasing at a quarterly rate of 1.0¢ in the low case, 1.5¢ in the midpoint case and 2.0¢ in the high case. These increases approximate annual increases of 6-10%. Distributions are paid in the quarter following the period in which they are earned. Thus, cash distributions here do not match paid cash distributions on the cash flow schedules. |
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