EXHIBIT 99.2
Non-GAAP Reconciliations, | ||
Financial Highlights, and Operating Statistics | ||
(UNAUDITED) | ||
Final | ||
September 30, 2018 | ||
Reconciliation of Income (Loss) Attributable to The Williams Companies, Inc. to Adjusted Income | |||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||
2017 | 2018 | ||||||||||||||||||||||||||||
(Dollars in millions, except per-share amounts) | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 3rd Qtr | Year | ||||||||||||||||||||
Income (loss) attributable to The Williams Companies, Inc. available to common stockholders | $ | 373 | $ | 81 | $ | 33 | $ | 1,687 | $ | 2,174 | $ | 152 | $ | 135 | $ | 129 | $ | 416 | |||||||||||
Income (loss) - diluted earnings (loss) per common share | $ | .45 | $ | .10 | $ | .04 | $ | 2.03 | $ | 2.62 | $ | .18 | $ | .16 | $ | .13 | $ | .46 | |||||||||||
Adjustments: | |||||||||||||||||||||||||||||
Northeast G&P | |||||||||||||||||||||||||||||
Share of impairment at equity-method investments | $ | — | $ | — | $ | 1 | $ | — | $ | 1 | $ | — | $ | — | $ | — | $ | — | |||||||||||
Impairment of certain assets | — | — | 121 | — | 121 | — | — | — | — | ||||||||||||||||||||
Ad valorem obligation timing adjustment | — | — | 7 | — | 7 | — | — | — | — | ||||||||||||||||||||
Settlement charge from pension early payout program | — | — | — | 7 | 7 | — | — | — | — | ||||||||||||||||||||
Organizational realignment-related costs | 1 | 1 | 2 | — | 4 | — | — | — | — | ||||||||||||||||||||
Total Northeast G&P adjustments | 1 | 1 | 131 | 7 | 140 | — | — | — | — | ||||||||||||||||||||
Atlantic-Gulf | |||||||||||||||||||||||||||||
Constitution Pipeline project development costs | 2 | 6 | 4 | 4 | 16 | 2 | 1 | 1 | 4 | ||||||||||||||||||||
Settlement charge from pension early payout program | — | — | — | 15 | 15 | — | — | — | — | ||||||||||||||||||||
Regulatory adjustments resulting from Tax Reform | — | — | — | 493 | 493 | 11 | (20 | ) | — | (9 | ) | ||||||||||||||||||
Benefit of regulatory asset associated with increase in Transco’s estimated deferred state income tax rate following WPZ Merger | — | — | — | — | — | — | — | (3 | ) | (3 | ) | ||||||||||||||||||
Share of regulatory charges resulting from Tax Reform for equity-method investments | — | — | — | 11 | 11 | 2 | — | — | 2 | ||||||||||||||||||||
Organizational realignment-related costs | 1 | 2 | 2 | 1 | 6 | — | — | — | — | ||||||||||||||||||||
(Gain) loss on asset retirement | — | — | (5 | ) | 5 | — | — | — | (10 | ) | (10 | ) | |||||||||||||||||
Total Atlantic-Gulf adjustments | 3 | 8 | 1 | 529 | 541 | 15 | (19 | ) | (12 | ) | (16 | ) | |||||||||||||||||
West | |||||||||||||||||||||||||||||
Estimated minimum volume commitments | 15 | 15 | 18 | (48 | ) | — | — | — | — | — | |||||||||||||||||||
Impairment of certain assets | — | — | 1,021 | 9 | 1,030 | — | — | — | — | ||||||||||||||||||||
Settlement charge from pension early payout program | — | — | — | 13 | 13 | — | — | — | — | ||||||||||||||||||||
Organizational realignment-related costs | 2 | 3 | 2 | 1 | 8 | — | — | — | — | ||||||||||||||||||||
Regulatory adjustments resulting from Tax Reform | — | — | — | 220 | 220 | (7 | ) | — | (7 | ) | |||||||||||||||||||
Charge for regulatory liability associated with the decrease in Northwest Pipeline’s estimated deferred state income tax rates following WPZ Merger | — | — | — | — | — | — | — | 12 | 12 | ||||||||||||||||||||
Gains from contract settlements and terminations | (13 | ) | (2 | ) | — | — | (15 | ) | — | — | — | — | |||||||||||||||||
Total West adjustments | 4 | 16 | 1,041 | 195 | 1,256 | (7 | ) | — | 12 | 5 | |||||||||||||||||||
Other | |||||||||||||||||||||||||||||
(Gain) loss related to Canada disposition | (2 | ) | (1 | ) | 4 | 5 | 6 | — | — | — | — | ||||||||||||||||||
Expenses associated with strategic asset monetizations | 1 | 4 | — | — | 5 | — | — | — | — | ||||||||||||||||||||
Geismar Incident adjustments | (9 | ) | 2 | 8 | (1 | ) | — | — | — | — | — | ||||||||||||||||||
Gain on sale of Geismar Interest | — | — | (1,095 | ) | — | (1,095 | ) | — | — | — | — | ||||||||||||||||||
Gain on sale of RGP Splitter | — | (12 | ) | — | — | (12 | ) | — | — | — | — | ||||||||||||||||||
Accrual for loss contingency | 9 | — | — | — | 9 | — | — | — | — | ||||||||||||||||||||
Severance and related costs | 9 | 4 | 5 | 4 | 22 | — | — | — | — | ||||||||||||||||||||
ACMP Merger and transition costs | — | 4 | 3 | 4 | 11 | — | — | — | — | ||||||||||||||||||||
Expenses associated with Financial Repositioning | 8 | 2 | — | — | 10 | — | — | — | — | ||||||||||||||||||||
(Gain) loss on early retirement of debt | (30 | ) | — | 3 | — | (27 | ) | 7 | — | — | 7 | ||||||||||||||||||
Impairment of certain assets | — | 23 | 68 | — | 91 | — | 66 | — | 66 | ||||||||||||||||||||
Expenses associated with strategic alternatives | 1 | 3 | 5 | — | 9 | — | — | — | — | ||||||||||||||||||||
Settlement charge from pension early payout program | — | — | — | 36 | 36 | — | — | — | — | ||||||||||||||||||||
Regulatory adjustments resulting from Tax Reform | — | — | — | 63 | 63 | — | 1 | — | 1 | ||||||||||||||||||||
Benefit of regulatory assets associated with increase in Transco’s estimated deferred state income tax rate following WPZ Merger | — | — | — | — | — | — | — | (45 | ) | (45 | ) | ||||||||||||||||||
WPZ Merger costs | — | — | — | — | — | — | 4 | 15 | 19 | ||||||||||||||||||||
Charitable contribution of preferred stock to Williams Foundation | — | — | — | — | — | — | — | 35 | 35 | ||||||||||||||||||||
Total Other adjustments | (13 | ) | 29 | (999 | ) | 111 | (872 | ) | 7 | 71 | 5 | 83 | |||||||||||||||||
Adjustments included in Modified EBITDA | (5 | ) | 54 | 174 | 842 | 1,065 | 15 | 52 | 5 | 72 | |||||||||||||||||||
Adjustments below Modified EBITDA | |||||||||||||||||||||||||||||
Gain on disposition of equity-method investment | (269 | ) | — | — | — | (269 | ) | — | — | — | — | ||||||||||||||||||
Accelerated depreciation by equity-method investments | — | — | — | 9 | 9 | — | — | — | — | ||||||||||||||||||||
Change in depreciable life associated with organizational realignment | (7 | ) | — | — | — | (7 | ) | — | — | — | — | ||||||||||||||||||
Gain on deconsolidation of Jackalope interest | — | — | — | — | — | — | (62 | ) | — | (62 | ) | ||||||||||||||||||
Allocation of adjustments to noncontrolling interests | 77 | (10 | ) | (28 | ) | (199 | ) | (160 | ) | (5 | ) | 21 | — | 16 | |||||||||||||||
(199 | ) | (10 | ) | (28 | ) | (190 | ) | (427 | ) | (5 | ) | (41 | ) | — | (46 | ) | |||||||||||||
Total adjustments | (204 | ) | 44 | 146 | 652 | 638 | 10 | 11 | 5 | 26 | |||||||||||||||||||
Less tax effect for above items | 77 | (17 | ) | (55 | ) | (246 | ) | (241 | ) | (3 | ) | (3 | ) | (1 | ) | (7 | ) | ||||||||||||
Adjustments for tax-related items (1) | (127 | ) | — | — | (1,923 | ) | (2,050 | ) | — | — | 110 | 110 | |||||||||||||||||
Adjusted income available to common stockholders | $ | 119 | $ | 108 | $ | 124 | $ | 170 | $ | 521 | $ | 159 | $ | 143 | $ | 243 | $ | 545 | |||||||||||
Adjusted diluted earnings per common share (2) | $ | .14 | $ | .13 | $ | .15 | $ | .20 | $ | .63 | $ | .19 | $ | .17 | $ | .24 | $ | .61 | |||||||||||
Weighted-average shares - diluted (thousands) | 826,476 | 828,575 | 829,368 | 829,607 | 828,518 | 830,197 | 830,107 | 1,026,504 | 896,322 | ||||||||||||||||||||
(1) The first quarter of 2017 includes an unfavorable adjustment related to the release of a valuation allowance. The fourth quarter of 2017 includes an unfavorable adjustment to reverse the tax benefit associated with remeasuring our deferred tax balances at a lower corporate rate resulting from Tax Reform. The third quarter of 2018 reflects tax adjustments driven by the WPZ Merger, primarily a valuation allowance for foreign tax credits. | |||||||||||||||||||||||||||||
(2) The sum of earnings per share for the quarters may not equal the total earnings per share for the year due to changes in the weighted-average number of common shares outstanding. |
Reconciliation of Distributable Cash Flow (DCF) | |||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||
2017 | 2018 | ||||||||||||||||||||||||||||
(Dollars in millions, except coverage ratios) | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 3rd Qtr | Year | ||||||||||||||||||||
The Williams Companies, Inc. | |||||||||||||||||||||||||||||
Reconciliation of GAAP "Net Income (Loss)" to Non-GAAP "Modified EBITDA", "Adjusted EBITDA" and "Distributable cash flow" | |||||||||||||||||||||||||||||
Net income (loss) | $ | 569 | $ | 193 | $ | 125 | $ | 1,622 | $ | 2,509 | $ | 270 | $ | 269 | $ | 200 | $ | 739 | |||||||||||
Provision (benefit) for income taxes | 37 | 65 | 24 | (2,100 | ) | (1,974 | ) | 55 | 52 | 190 | 297 | ||||||||||||||||||
Interest expense | 280 | 271 | 267 | 265 | 1,083 | 273 | 275 | 270 | 818 | ||||||||||||||||||||
Equity (earnings) losses | (107 | ) | (125 | ) | (115 | ) | (87 | ) | (434 | ) | (82 | ) | (92 | ) | (105 | ) | (279 | ) | |||||||||||
Other investing (income) loss - net | (272 | ) | (2 | ) | (4 | ) | (4 | ) | (282 | ) | (4 | ) | (68 | ) | (2 | ) | (74 | ) | |||||||||||
Proportional Modified EBITDA of equity-method investments | 194 | 215 | 202 | 184 | 795 | 169 | 178 | 205 | 552 | ||||||||||||||||||||
Depreciation and amortization expenses | 442 | 433 | 433 | 428 | 1,736 | 431 | 434 | 425 | 1,290 | ||||||||||||||||||||
Accretion for asset retirement obligations associated with nonregulated operations | 7 | 9 | 7 | 10 | 33 | 8 | 10 | 8 | 26 | ||||||||||||||||||||
Modified EBITDA | 1,150 | 1,059 | 939 | 318 | 3,466 | 1,120 | 1,058 | 1,191 | 3,369 | ||||||||||||||||||||
EBITDA adjustments | (5 | ) | 54 | 174 | 842 | 1,065 | 15 | 52 | 5 | 72 | |||||||||||||||||||
Adjusted EBITDA | 1,145 | 1,113 | 1,113 | 1,160 | 4,531 | 1,135 | 1,110 | 1,196 | 3,441 | ||||||||||||||||||||
Maintenance capital expenditures (1) | (58 | ) | (105 | ) | (143 | ) | (165 | ) | (471 | ) | (110 | ) | (160 | ) | (138 | ) | (408 | ) | |||||||||||
Net interest expense - cash portion (2) | (289 | ) | (280 | ) | (271 | ) | (271 | ) | (1,111 | ) | (273 | ) | (275 | ) | (270 | ) | (818 | ) | |||||||||||
Cash taxes | (5 | ) | (1 | ) | (11 | ) | (11 | ) | (28 | ) | (1 | ) | (10 | ) | (1 | ) | (12 | ) | |||||||||||
Income attributable to noncontrolling interests (3) | (27 | ) | (32 | ) | (27 | ) | (27 | ) | (113 | ) | (25 | ) | (24 | ) | (19 | ) | (68 | ) | |||||||||||
WPZ restricted stock unit non-cash compensation | 2 | 1 | 1 | 1 | 5 | — | — | — | — | ||||||||||||||||||||
Amortization of deferred revenue associated with certain 2016 contract restructurings (4) | (58 | ) | (58 | ) | (59 | ) | (58 | ) | (233 | ) | — | — | — | — | |||||||||||||||
Distributable cash flow | $ | 710 | $ | 638 | $ | 603 | $ | 629 | $ | 2,580 | $ | 726 | $ | 641 | $ | 768 | $ | 2,135 | |||||||||||
Total cash distributed (5) | $ | 400 | $ | 400 | $ | 400 | $ | 401 | $ | 1,601 | $ | 438 | $ | 443 | $ | 412 | $ | 1,293 | |||||||||||
Coverage ratios: | |||||||||||||||||||||||||||||
Distributable cash flow divided by Total cash distributed | 1.78 | 1.60 | 1.51 | 1.57 | 1.61 | 1.66 | 1.45 | 1.86 | 1.65 | ||||||||||||||||||||
Net income (loss) divided by Total cash distributed | 1.42 | 0.48 | 0.31 | 4.04 | 1.57 | 0.62 | 0.61 | 0.49 | 0.57 | ||||||||||||||||||||
(1) Includes proportionate share of maintenance capital expenditures of equity investments. | |||||||||||||||||||||||||||||
(2) Includes proportionate share of interest expense of equity investments. | |||||||||||||||||||||||||||||
(3) Excludes allocable share of certain EBITDA adjustments. | |||||||||||||||||||||||||||||
(4) Beginning first quarter 2018, as a result of the extended deferred revenue amortization period under the new GAAP revenue standard, we have discontinued the adjustment associated with these 2016 contract restructuring payments. The adjustments would have been $32 million, $31 million, and $32 million for the first, second, and third quarters of 2018, respectively. | |||||||||||||||||||||||||||||
(5) Includes cash dividends paid each quarter by WMB, as well as the public unitholders share of distributions declared by WPZ for the 2017 periods and the first two quarters of 2018. |
Reconciliation of "Net Income (Loss)" to “Modified EBITDA” and Non-GAAP “Adjusted EBITDA” | |||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||
2017 | 2018 | ||||||||||||||||||||||||||||
(Dollars in millions) | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 3rd Qtr | Year | ||||||||||||||||||||
Net income (loss) | $ | 569 | $ | 193 | $ | 125 | $ | 1,622 | $ | 2,509 | $ | 270 | $ | 269 | $ | 200 | $ | 739 | |||||||||||
Provision (benefit) for income taxes | 37 | 65 | 24 | (2,100 | ) | (1,974 | ) | 55 | 52 | 190 | 297 | ||||||||||||||||||
Interest expense | 280 | 271 | 267 | 265 | 1,083 | 273 | 275 | 270 | 818 | ||||||||||||||||||||
Equity (earnings) losses | (107 | ) | (125 | ) | (115 | ) | (87 | ) | (434 | ) | (82 | ) | (92 | ) | (105 | ) | (279 | ) | |||||||||||
Other investing (income) loss - net | (272 | ) | (2 | ) | (4 | ) | (4 | ) | (282 | ) | (4 | ) | (68 | ) | (2 | ) | (74 | ) | |||||||||||
Proportional Modified EBITDA of equity-method investments | 194 | 215 | 202 | 184 | 795 | 169 | 178 | 205 | 552 | ||||||||||||||||||||
Depreciation and amortization expenses | 442 | 433 | 433 | 428 | 1,736 | 431 | 434 | 425 | 1,290 | ||||||||||||||||||||
Accretion expense associated with asset retirement obligations for nonregulated operations | 7 | 9 | 7 | 10 | 33 | 8 | 10 | 8 | 26 | ||||||||||||||||||||
Modified EBITDA | $ | 1,150 | $ | 1,059 | $ | 939 | $ | 318 | $ | 3,466 | $ | 1,120 | $ | 1,058 | $ | 1,191 | $ | 3,369 | |||||||||||
Northeast G&P | $ | 226 | $ | 247 | $ | 115 | $ | 231 | $ | 819 | $ | 250 | $ | 255 | $ | 281 | $ | 786 | |||||||||||
Atlantic-Gulf | 450 | 454 | 430 | (96 | ) | 1,238 | 451 | 475 | 492 | 1,418 | |||||||||||||||||||
West | 385 | 356 | (615 | ) | 286 | 412 | 413 | 389 | 412 | 1,214 | |||||||||||||||||||
Other | 89 | 2 | 1,009 | (103 | ) | 997 | 6 | (61 | ) | 6 | (49 | ) | |||||||||||||||||
Total Modified EBITDA | $ | 1,150 | $ | 1,059 | $ | 939 | $ | 318 | $ | 3,466 | $ | 1,120 | $ | 1,058 | $ | 1,191 | $ | 3,369 | |||||||||||
Adjustments included in Modified EBITDA (1): | |||||||||||||||||||||||||||||
Northeast G&P | $ | 1 | $ | 1 | $ | 131 | $ | 7 | $ | 140 | $ | — | $ | — | $ | — | $ | — | |||||||||||
Atlantic-Gulf | 3 | 8 | 1 | 529 | 541 | 15 | (19 | ) | (12 | ) | (16 | ) | |||||||||||||||||
West | 4 | 16 | 1,041 | 195 | 1,256 | (7 | ) | — | 12 | 5 | |||||||||||||||||||
Other | (13 | ) | 29 | (999 | ) | 111 | (872 | ) | 7 | 71 | 5 | 83 | |||||||||||||||||
Total Adjustments included in Modified EBITDA | $ | (5 | ) | $ | 54 | $ | 174 | $ | 842 | $ | 1,065 | $ | 15 | $ | 52 | $ | 5 | $ | 72 | ||||||||||
Adjusted EBITDA: | |||||||||||||||||||||||||||||
Northeast G&P | $ | 227 | $ | 248 | $ | 246 | $ | 238 | $ | 959 | $ | 250 | $ | 255 | $ | 281 | $ | 786 | |||||||||||
Atlantic-Gulf | 453 | 462 | 431 | 433 | 1,779 | 466 | 456 | 480 | 1,402 | ||||||||||||||||||||
West | 389 | 372 | 426 | 481 | 1,668 | 406 | 389 | 424 | 1,219 | ||||||||||||||||||||
Other | 76 | 31 | 10 | 8 | 125 | 13 | 10 | 11 | 34 | ||||||||||||||||||||
Total Adjusted EBITDA | $ | 1,145 | $ | 1,113 | $ | 1,113 | $ | 1,160 | $ | 4,531 | $ | 1,135 | $ | 1,110 | $ | 1,196 | $ | 3,441 | |||||||||||
(1) Adjustments by segment are detailed in the "Reconciliation of Income (Loss) Attributable to The Williams Companies, Inc. to Adjusted Income," which is also included in these materials. |
Consolidated Statement of Operations | |||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||
2017 | 2018 | ||||||||||||||||||||||||||||
(Dollars in millions, except per-share amounts) | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 3rd Qtr | Year | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||
Service revenues | $ | 1,261 | $ | 1,282 | $ | 1,310 | $ | 1,459 | $ | 5,312 | $ | 1,351 | $ | 1,340 | $ | 1,371 | $ | 4,062 | |||||||||||
Service revenues - commodity consideration | — | — | — | — | — | 101 | 94 | 121 | 316 | ||||||||||||||||||||
Product sales | 727 | 642 | 581 | 769 | 2,719 | 636 | 657 | 811 | 2,104 | ||||||||||||||||||||
Total revenues | 1,988 | 1,924 | 1,891 | 2,228 | 8,031 | 2,088 | 2,091 | 2,303 | 6,482 | ||||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||||||||
Product costs | 579 | 537 | 504 | 680 | 2,300 | 613 | 636 | 790 | 2,039 | ||||||||||||||||||||
Processing commodity expenses | — | — | — | — | — | 35 | 26 | 30 | 91 | ||||||||||||||||||||
Operating and maintenance expenses | 371 | 392 | 403 | 410 | 1,576 | 357 | 388 | 389 | 1,134 | ||||||||||||||||||||
Depreciation and amortization expenses | 442 | 433 | 433 | 428 | 1,736 | 431 | 434 | 425 | 1,290 | ||||||||||||||||||||
Selling, general, and administrative expenses | 161 | 153 | 138 | 142 | 594 | 132 | 130 | 174 | 436 | ||||||||||||||||||||
Impairment of certain assets | 1 | 25 | 1,210 | 12 | 1,248 | — | 66 | — | 66 | ||||||||||||||||||||
Gain on sale of Geismar Interest | — | — | (1,095 | ) | — | (1,095 | ) | — | — | — | — | ||||||||||||||||||
Regulatory charges resulting from Tax Reform | — | — | — | 674 | 674 | — | — | — | — | ||||||||||||||||||||
Other (income) expense - net | 4 | 6 | 24 | 37 | 71 | 29 | 1 | (6 | ) | 24 | |||||||||||||||||||
Total costs and expenses | 1,558 | 1,546 | 1,617 | 2,383 | 7,104 | 1,597 | 1,681 | 1,802 | 5,080 | ||||||||||||||||||||
Operating income (loss) | 430 | 378 | 274 | (155 | ) | 927 | 491 | 410 | 501 | 1,402 | |||||||||||||||||||
Equity earnings (losses) | 107 | 125 | 115 | 87 | 434 | 82 | 92 | 105 | 279 | ||||||||||||||||||||
Other investing income (loss) - net | 272 | 2 | 4 | 4 | 282 | 4 | 68 | 2 | 74 | ||||||||||||||||||||
Interest incurred | (287 | ) | (280 | ) | (275 | ) | (274 | ) | (1,116 | ) | (282 | ) | (288 | ) | (286 | ) | (856 | ) | |||||||||||
Interest capitalized | 7 | 9 | 8 | 9 | 33 | 9 | 13 | 16 | 38 | ||||||||||||||||||||
Other income (expense) - net | 77 | 24 | 23 | (149 | ) | (25 | ) | 21 | 26 | 52 | 99 | ||||||||||||||||||
Income (loss) before income taxes | 606 | 258 | 149 | (478 | ) | 535 | 325 | 321 | 390 | 1,036 | |||||||||||||||||||
Provision (benefit) for income taxes | 37 | 65 | 24 | (2,100 | ) | (1,974 | ) | 55 | 52 | 190 | 297 | ||||||||||||||||||
Net income (loss) | 569 | 193 | 125 | 1,622 | 2,509 | 270 | 269 | 200 | 739 | ||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | 196 | 112 | 92 | (65 | ) | 335 | 118 | 134 | 71 | 323 | |||||||||||||||||||
Net income (loss) attributable to The Williams Companies, Inc. | 373 | 81 | 33 | 1,687 | 2,174 | 152 | 135 | 129 | 416 | ||||||||||||||||||||
Preferred stock dividends | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Net income (loss) available to common stockholders | $ | 373 | $ | 81 | $ | 33 | $ | 1,687 | $ | 2,174 | $ | 152 | $ | 135 | $ | 129 | $ | 416 | |||||||||||
Diluted earnings (loss) per common share: | |||||||||||||||||||||||||||||
Net income (loss) (1) | $ | .45 | $ | .10 | $ | .04 | $ | 2.03 | $ | 2.62 | $ | .18 | $ | .16 | $ | .13 | $ | .46 | |||||||||||
Weighted-average number of shares (thousands) | 826,476 | 828,575 | 829,368 | 829,607 | 828,518 | 830,197 | 830,107 | 1,026,504 | 896,322 | ||||||||||||||||||||
Common shares outstanding at end of period (thousands) | 826,239 | 826,398 | 826,723 | 826,836 | 826,836 | 827,607 | 827,733 | 1,210,525 | 1,210,525 | ||||||||||||||||||||
Market price per common share (end of period) | $ | 29.59 | $ | 30.28 | $ | 30.01 | $ | 30.49 | $ | 30.49 | $ | 24.86 | $ | 27.11 | $ | 27.19 | $ | 27.19 | |||||||||||
Cash dividends declared per share | $ | .30 | $ | .30 | $ | .30 | $ | .30 | $ | 1.20 | $ | .34 | $ | .34 | $ | .34 | $ | 1.02 | |||||||||||
(1) The sum of earnings (loss) per share for the quarters may not equal the total earnings (loss) per share for the year due to changes in the weighted-average number of common shares outstanding. | |||||||||||||||||||||||||||||
Northeast G&P | |||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||
2017 | 2018 | ||||||||||||||||||||||||||||
(Dollars in millions) | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 3rd Qtr | Year | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||
Service revenues: | |||||||||||||||||||||||||||||
Nonregulated gathering and processing fee-based revenue | $ | 182 | $ | 183 | $ | 182 | $ | 191 | $ | 738 | $ | 189 | $ | 196 | $ | 211 | $ | 596 | |||||||||||
Other fee revenues | 35 | 34 | 32 | 33 | 134 | 39 | 36 | 36 | 111 | ||||||||||||||||||||
Nonregulated commodity consideration | — | — | — | — | — | 4 | 4 | 6 | 14 | ||||||||||||||||||||
Product sales: | |||||||||||||||||||||||||||||
NGL sales from gas processing | 4 | 4 | 2 | 4 | 14 | 4 | 5 | 6 | 15 | ||||||||||||||||||||
Marketing sales | 64 | 48 | 59 | 106 | 277 | 89 | 65 | 57 | 211 | ||||||||||||||||||||
Tracked product sales | — | — | — | — | — | 5 | 5 | 6 | 16 | ||||||||||||||||||||
Total revenues | 285 | 269 | 275 | 334 | 1,163 | 330 | 311 | 322 | 963 | ||||||||||||||||||||
Segment costs and expenses: | |||||||||||||||||||||||||||||
NGL cost of goods sold | 4 | 1 | 2 | 1 | 8 | 4 | 5 | 6 | 15 | ||||||||||||||||||||
Marketing cost of goods sold | 65 | 48 | 59 | 106 | 278 | 90 | 65 | 57 | 212 | ||||||||||||||||||||
Processing commodity expenses | — | — | — | — | — | 2 | 2 | 3 | 7 | ||||||||||||||||||||
Operating and administrative costs | 86 | 88 | 99 | 103 | 376 | 85 | 91 | 96 | 272 | ||||||||||||||||||||
Other segment costs and expenses | — | 1 | (1 | ) | 10 | 10 | 2 | 1 | 4 | 7 | |||||||||||||||||||
Impairment of certain assets | 1 | 1 | 121 | 1 | 124 | — | — | — | — | ||||||||||||||||||||
Tracked cost of goods sold | — | — | — | — | — | 5 | 7 | 6 | 18 | ||||||||||||||||||||
Total segment costs and expenses | 156 | 139 | 280 | 221 | 796 | 188 | 171 | 172 | 531 | ||||||||||||||||||||
Proportional Modified EBITDA of equity-method investments | 97 | 117 | 120 | 118 | 452 | 108 | 115 | 131 | 354 | ||||||||||||||||||||
Modified EBITDA | 226 | 247 | 115 | 231 | 819 | 250 | 255 | 281 | 786 | ||||||||||||||||||||
Adjustments | 1 | 1 | 131 | 7 | 140 | — | — | — | — | ||||||||||||||||||||
Adjusted EBITDA | $ | 227 | $ | 248 | $ | 246 | $ | 238 | $ | 959 | $ | 250 | $ | 255 | $ | 281 | $ | 786 | |||||||||||
NGL margin | $ | — | $ | 3 | $ | — | $ | 3 | $ | 6 | $ | 2 | $ | 2 | $ | 3 | $ | 7 | |||||||||||
Statistics for Operated Assets | |||||||||||||||||||||||||||||
Gathering and Processing | |||||||||||||||||||||||||||||
Gathering volumes (Bcf per day) - Consolidated (1) | 3.32 | 3.28 | 3.28 | 3.37 | 3.31 | 3.38 | 3.44 | 3.62 | 3.48 | ||||||||||||||||||||
Gathering volumes (Bcf per day) - Non-consolidated (2) | 3.55 | 3.58 | 3.48 | 3.61 | 3.55 | 3.82 | 3.59 | 3.73 | 3.71 | ||||||||||||||||||||
Plant inlet natural gas volumes (Bcf per day) (1) | 0.39 | 0.40 | 0.45 | 0.50 | 0.43 | 0.49 | 0.55 | 0.52 | 0.52 | ||||||||||||||||||||
Ethane equity sales (Mbbls/d) | 2.32 | 2.34 | 1.71 | 0.98 | 1.83 | 1.33 | 3.17 | 2.74 | 2.42 | ||||||||||||||||||||
Non-ethane equity sales (Mbbls/d) | 1.09 | 1.13 | 1.17 | 0.90 | 1.07 | 0.79 | 1.09 | 1.49 | 1.12 | ||||||||||||||||||||
NGL equity sales (Mbbls/d) | 3.41 | 3.47 | 2.88 | 1.88 | 2.90 | 2.12 | 4.26 | 4.23 | 3.54 | ||||||||||||||||||||
Ethane production (Mbbls/d) | 17 | 22 | 17 | 22 | 20 | 23 | 27 | 26 | 25 | ||||||||||||||||||||
Non-ethane production (Mbbls/d) | 15 | 17 | 19 | 22 | 18 | 21 | 21 | 23 | 22 | ||||||||||||||||||||
NGL production (Mbbls/d) | 32 | 39 | 36 | 44 | 38 | 44 | 48 | 49 | 47 | ||||||||||||||||||||
(1) Includes gathering volumes associated with Susquehanna Supply Hub, Ohio Valley Midstream, and Utica Supply Hub, all of which are consolidated. | |||||||||||||||||||||||||||||
(2) Includes 100% of the volumes associated with operated equity-method investments, including the Laurel Mountain Midstream partnership; and the Bradford Supply Hub and a portion of the Marcellus South Supply Hub within the Appalachia Midstream Services partnership. Volumes handled by Blue Racer Midstream (gathering and processing) and UEOM (processing only), which we do not operate, are not included. |
Atlantic-Gulf | |||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||
2017 | 2018 | ||||||||||||||||||||||||||||
(Dollars in millions) | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 3rd Qtr | Year | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||
Service revenues: | |||||||||||||||||||||||||||||
Nonregulated gathering & processing fee-based revenue | $ | 127 | $ | 136 | $ | 133 | $ | 132 | $ | 528 | $ | 138 | $ | 128 | $ | 138 | $ | 404 | |||||||||||
Regulated transportation revenue | 354 | 358 | 380 | 408 | 1,500 | 413 | 406 | 411 | 1,230 | ||||||||||||||||||||
Other fee revenues | 34 | 34 | 31 | 33 | 132 | 32 | 34 | 34 | 100 | ||||||||||||||||||||
Tracked service revenue | 21 | 19 | 20 | 19 | 79 | 26 | 22 | 24 | 72 | ||||||||||||||||||||
Nonregulated commodity consideration | — | — | — | — | — | 15 | 12 | 18 | 45 | ||||||||||||||||||||
Product sales: | |||||||||||||||||||||||||||||
NGL sales from gas processing | 27 | 16 | 13 | 14 | 70 | 15 | 10 | 16 | 41 | ||||||||||||||||||||
Marketing sales | 90 | 75 | 66 | 81 | 312 | 45 | 57 | 67 | 169 | ||||||||||||||||||||
Other sales | 4 | 3 | 2 | 1 | 10 | 2 | 2 | 3 | 7 | ||||||||||||||||||||
Tracked product sales | 13 | 31 | 25 | 23 | 92 | 31 | 36 | 45 | 112 | ||||||||||||||||||||
Total revenues | 670 | 672 | 670 | 711 | 2,723 | 717 | 707 | 756 | 2,180 | ||||||||||||||||||||
Segment costs and expenses: | |||||||||||||||||||||||||||||
NGL cost of goods sold | 13 | 7 | 6 | 3 | 29 | 15 | 12 | 19 | 46 | ||||||||||||||||||||
Marketing cost of goods sold | 89 | 73 | 64 | 81 | 307 | 44 | 56 | 67 | 167 | ||||||||||||||||||||
Other cost of goods sold | 1 | — | — | 1 | 2 | — | — | — | — | ||||||||||||||||||||
Tracked cost of goods sold | 15 | 33 | 27 | 24 | 99 | 33 | 38 | 48 | 119 | ||||||||||||||||||||
Processing commodity expenses | — | — | — | — | — | 5 | 2 | 3 | 10 | ||||||||||||||||||||
Operating and administrative costs | 157 | 169 | 193 | 208 | 727 | 177 | 181 | 181 | 539 | ||||||||||||||||||||
Other segment costs and expenses | (4 | ) | (3 | ) | (6 | ) | 26 | 13 | (2 | ) | (15 | ) | (29 | ) | (46 | ) | |||||||||||||
Regulatory charges resulting from Tax Reform | — | — | — | 493 | 493 | 11 | (20 | ) | — | (9 | ) | ||||||||||||||||||
Tracked operating and administrative costs | 21 | 19 | 20 | 19 | 79 | 26 | 22 | 24 | 72 | ||||||||||||||||||||
Total segment costs and expenses | 292 | 298 | 304 | 855 | 1,749 | 309 | 276 | 313 | 898 | ||||||||||||||||||||
Proportional Modified EBITDA of equity-method investments | 72 | 80 | 64 | 48 | 264 | 43 | 44 | 49 | 136 | ||||||||||||||||||||
Modified EBITDA | 450 | 454 | 430 | (96 | ) | 1,238 | 451 | 475 | 492 | 1,418 | |||||||||||||||||||
Adjustments | 3 | 8 | 1 | 529 | 541 | 15 | (19 | ) | (12 | ) | (16 | ) | |||||||||||||||||
Adjusted EBITDA | $ | 453 | $ | 462 | $ | 431 | $ | 433 | $ | 1,779 | $ | 466 | $ | 456 | $ | 480 | $ | 1,402 | |||||||||||
NGL Margins | $ | 14 | $ | 9 | $ | 7 | $ | 11 | $ | 41 | $ | 10 | $ | 8 | $ | 12 | $ | 30 | |||||||||||
Statistics for Operated Assets | |||||||||||||||||||||||||||||
Gathering, Processing and Crude Oil Transportation | |||||||||||||||||||||||||||||
Gathering volumes (Bcf per day) - Consolidated (1) | 0.32 | 0.29 | 0.31 | 0.30 | 0.31 | 0.30 | 0.25 | 0.29 | 0.28 | ||||||||||||||||||||
Gathering volumes (Bcf per day) - Non-consolidated (2) | 0.55 | 0.54 | 0.39 | 0.28 | 0.44 | 0.24 | 0.25 | 0.25 | 0.25 | ||||||||||||||||||||
Plant inlet natural gas volumes (Bcf per day) - Consolidated (1) | 0.56 | 0.57 | 0.52 | 0.54 | 0.55 | 0.54 | 0.43 | 0.51 | 0.49 | ||||||||||||||||||||
Plant inlet natural gas volumes (Bcf per day) - Non-consolidated (2) | 0.54 | 0.53 | 0.39 | 0.27 | 0.43 | 0.24 | 0.25 | 0.25 | 0.25 | ||||||||||||||||||||
Crude transportation volumes (Mbbls/d) | 131 | 135 | 137 | 136 | 134 | 142 | 132 | 147 | 140 | ||||||||||||||||||||
Consolidated (1) | |||||||||||||||||||||||||||||
Ethane margin ($/gallon) | $ | .02 | $ | .03 | $ | .04 | $ | .09 | $ | .04 | $ | .03 | $ | .16 | $ | .24 | $ | .15 | |||||||||||
Non-ethane margin ($/gallon) | $ | .42 | $ | .36 | $ | .53 | $ | .72 | $ | .47 | $ | .66 | $ | .74 | $ | .76 | $ | .72 | |||||||||||
NGL margin ($/gallon) | $ | .26 | $ | .23 | $ | .26 | $ | .46 | $ | .28 | $ | .40 | $ | .48 | $ | .51 | $ | .46 | |||||||||||
Ethane equity sales (Mbbls/d) | 6.09 | 3.74 | 4.29 | 2.36 | 4.11 | 2.82 | 1.91 | 3.05 | 2.59 | ||||||||||||||||||||
Non-ethane equity sales (Mbbls/d) | 8.64 | 5.82 | 3.50 | 3.42 | 5.33 | 3.87 | 2.35 | 3.14 | 3.12 | ||||||||||||||||||||
NGL equity sales (Mbbls/d) | 14.73 | 9.56 | 7.79 | 5.78 | 9.44 | 6.69 | 4.26 | 6.19 | 5.71 | ||||||||||||||||||||
Ethane production (Mbbls/d) | 14 | 14 | 13 | 14 | 14 | 12 | 12 | 15 | 13 | ||||||||||||||||||||
Non-ethane production (Mbbls/d) | 20 | 19 | 18 | 19 | 19 | 19 | 17 | 18 | 18 | ||||||||||||||||||||
NGL production (Mbbls/d) | 34 | 33 | 31 | 33 | 33 | 31 | 29 | 33 | 31 | ||||||||||||||||||||
Non-consolidated (2) | |||||||||||||||||||||||||||||
NGL equity sales (Mbbls/d) | 5 | 4 | 5 | 4 | 5 | 2 | 5 | 4 | 4 | ||||||||||||||||||||
NGL production (Mbbls/d) | 21 | 22 | 22 | 19 | 21 | 18 | 20 | 20 | 19 | ||||||||||||||||||||
Transcontinental Gas Pipe Line | |||||||||||||||||||||||||||||
Throughput (Tbtu) | 939.1 | 887.6 | 938.5 | 1,017.5 | 3,782.7 | 1,099.9 | 965.5 | 1,092.3 | 3,157.7 | ||||||||||||||||||||
Avg. daily transportation volumes (Tbtu) | 10.4 | 9.8 | 10.2 | 11.1 | 10.4 | 12.2 | 10.6 | 11.9 | 11.6 | ||||||||||||||||||||
Avg. daily firm reserved capacity (Tbtu) | 12.8 | 13.2 | 14.1 | 14.9 | 13.8 | 15.4 | 15.0 | 15.0 | 15.2 | ||||||||||||||||||||
(1) Excludes volumes associated with equity-method investments that are not consolidated in our results. | |||||||||||||||||||||||||||||
(2) Includes 100% of the volumes associated with operated equity-method investments. |
West | |||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||
2017 | 2018 | ||||||||||||||||||||||||||||
(Dollars in millions) | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 3rd Qtr | Year | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||
Service revenues: | |||||||||||||||||||||||||||||
Nonregulated gathering & processing fee-based revenue | $ | 363 | $ | 382 | $ | 398 | $ | 502 | $ | 1,645 | $ | 386 | $ | 398 | $ | 387 | $ | 1,171 | |||||||||||
Regulated transportation revenue | 117 | 112 | 113 | 118 | 460 | 109 | 104 | 106 | 319 | ||||||||||||||||||||
Other fee revenues | 38 | 33 | 33 | 37 | 141 | 36 | 32 | 40 | 108 | ||||||||||||||||||||
Nonregulated commodity consideration | — | — | — | — | — | 82 | 78 | 97 | 257 | ||||||||||||||||||||
Tracked service revenues | — | — | — | — | — | — | 1 | — | 1 | ||||||||||||||||||||
Product sales: | |||||||||||||||||||||||||||||
NGL sales from gas processing | 64 | 61 | 68 | 82 | 275 | 85 | 76 | 90 | 251 | ||||||||||||||||||||
Olefin sales | 1 | — | — | — | 1 | — | — | — | — | ||||||||||||||||||||
Marketing sales | 387 | 368 | 408 | 534 | 1,697 | 419 | 465 | 615 | 1,499 | ||||||||||||||||||||
Other sales | 4 | 5 | 9 | 20 | 38 | 10 | 9 | 16 | 35 | ||||||||||||||||||||
Tracked product sales | — | 1 | — | 1 | 2 | 16 | 10 | 11 | 37 | ||||||||||||||||||||
Total revenues | 974 | 962 | 1,029 | 1,294 | 4,259 | 1,143 | 1,173 | 1,362 | 3,678 | ||||||||||||||||||||
Segment costs and expenses: | |||||||||||||||||||||||||||||
NGL cost of goods sold | 27 | 31 | 31 | 32 | 121 | 85 | 81 | 101 | 267 | ||||||||||||||||||||
Marketing cost of goods sold | 386 | 375 | 397 | 527 | 1,685 | 418 | 458 | 605 | 1,481 | ||||||||||||||||||||
Other cost of goods sold | 3 | 3 | 10 | 20 | 36 | 7 | 8 | 12 | 27 | ||||||||||||||||||||
Tracked cost of goods sold | — | — | — | — | — | 16 | 10 | 12 | 38 | ||||||||||||||||||||
Processing commodity expenses | — | — | — | — | — | 30 | 20 | 26 | 76 | ||||||||||||||||||||
Operating and administrative costs | 210 | 216 | 203 | 201 | 830 | 193 | 215 | 200 | 608 | ||||||||||||||||||||
Tracked operating and administrative costs | — | — | 1 | 1 | 2 | — | 1 | — | 1 | ||||||||||||||||||||
Other segment costs and expenses | (12 | ) | (2 | ) | (1 | ) | 15 | — | 6 | 10 | 19 | 35 | |||||||||||||||||
Impairment of certain assets | — | 1 | 1,021 | 10 | 1,032 | — | — | — | — | ||||||||||||||||||||
Regulatory charges resulting from Tax Reform | — | — | — | 220 | 220 | (7 | ) | — | — | (7 | ) | ||||||||||||||||||
Total segment costs and expenses | 614 | 624 | 1,662 | 1,026 | 3,926 | 748 | 803 | 975 | 2,526 | ||||||||||||||||||||
Proportional Modified EBITDA of equity-method investments | 25 | 18 | 18 | 18 | 79 | 18 | 19 | 25 | 62 | ||||||||||||||||||||
Modified EBITDA | 385 | 356 | (615 | ) | 286 | 412 | 413 | 389 | 412 | 1,214 | |||||||||||||||||||
Adjustments | 4 | 16 | 1,041 | 195 | 1,256 | (7 | ) | — | 12 | 5 | |||||||||||||||||||
Adjusted EBITDA | $ | 389 | $ | 372 | $ | 426 | $ | 481 | $ | 1,668 | $ | 406 | $ | 389 | $ | 424 | $ | 1,219 | |||||||||||
NGL margin | $ | 37 | $ | 30 | $ | 37 | $ | 50 | $ | 154 | $ | 52 | $ | 53 | $ | 60 | $ | 165 | |||||||||||
Statistics for Operated Assets | |||||||||||||||||||||||||||||
Gathering and Processing | |||||||||||||||||||||||||||||
Gathering volumes (Bcf per day) - Consolidated (1) | 4.23 | 4.40 | 4.62 | 4.86 | 4.53 | 4.58 | 4.60 | 4.48 | 4.55 | ||||||||||||||||||||
Gathering volumes (Bcf per day) - Non-consolidated (2) | — | — | — | — | — | — | — | 0.15 | 0.05 | ||||||||||||||||||||
Plant inlet natural gas volumes (Bcf per day) - Consolidated (1) | 1.99 | 2.01 | 2.11 | 2.17 | 2.07 | 2.16 | 2.12 | 2.11 | 2.13 | ||||||||||||||||||||
Plant inlet natural gas volumes (Bcf per day) - Non-consolidated (2) | — | — | — | — | — | — | — | 0.12 | 0.04 | ||||||||||||||||||||
Ethane equity sales (Mbbls/d) | 3.00 | 10.55 | 10.87 | 11.90 | 9.11 | 19.01 | 10.23 | 12.19 | 13.78 | ||||||||||||||||||||
Non-ethane equity sales (Mbbls/d) | 19.52 | 19.53 | 20.49 | 20.80 | 20.09 | 19.83 | 18.80 | 19.48 | 19.37 | ||||||||||||||||||||
NGL equity sales (Mbbls/d) | 22.52 | 30.08 | 31.36 | 32.70 | 29.20 | 38.84 | 29.03 | 31.67 | 33.15 | ||||||||||||||||||||
Ethane margin ($/gallon) | $ | .04 | $ | .00 | $ | .02 | $ | .02 | $ | .02 | $ | .01 | $ | .07 | $ | .18 | $ | .07 | |||||||||||
Non-ethane margin ($/gallon) | $ | .49 | $ | .40 | $ | .45 | $ | .61 | $ | .49 | $ | .69 | $ | .71 | $ | .69 | $ | .69 | |||||||||||
NGL margin ($/gallon) | $ | .43 | $ | .26 | $ | .30 | $ | .39 | $ | .34 | $ | .35 | $ | .48 | $ | .49 | $ | .44 | |||||||||||
Ethane production (Mbbls/d) | 8 | 18 | 19 | 26 | 18 | 31 | 26 | 28 | 28 | ||||||||||||||||||||
Non-ethane production (Mbbls/d) - Consolidated (1) | 55 | 57 | 62 | 63 | 59 | 62 | 61 | 59 | 60 | ||||||||||||||||||||
Non-ethane production (Mbbls/d) - Jackalope equity-method investment - 100% | — | — | — | — | — | — | — | 5 | 2 | ||||||||||||||||||||
NGL production (Mbbls/d) | 63 | 75 | 81 | 89 | 77 | 93 | 87 | 92 | 90 | ||||||||||||||||||||
NGL Transportation volumes (Mbbls) (3) | 18,338 | 20,558 | 21,015 | 21,424 | 81,335 | 21,263 | 21,334 | 22,105 | 64,702 | ||||||||||||||||||||
Northwest Pipeline LLC | |||||||||||||||||||||||||||||
Throughput (Tbtu) | 219.0 | 165.4 | 156.4 | 209.1 | 749.9 | 226.1 | 188.1 | 196.5 | 610.7 | ||||||||||||||||||||
Avg. daily transportation volumes (Tbtu) | 2.4 | 1.8 | 1.7 | 2.3 | 2.1 | 2.5 | 2.1 | 2.1 | 2.2 | ||||||||||||||||||||
Avg. daily firm reserved capacity (Tbtu) | 3.0 | 3.0 | 3.0 | 3.0 | 3.0 | 3.0 | 3.0 | 3.0 | 3.0 | ||||||||||||||||||||
(1) Excludes volumes associated with equity-method investments that are not consolidated in our results. | |||||||||||||||||||||||||||||
(2) Includes 100% of the volumes associated with operated equity-method investments, including the Jackalope Gas Gathering System and Rocky Mountain Midstream. | |||||||||||||||||||||||||||||
(3) Includes 100% of the volumes associated with operated equity-method investments, including the Overland Pass Pipeline Company and Rocky Mountain Midstream. |
Capital Expenditures and Investments | |||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||
2017 | 2018 | ||||||||||||||||||||||||||||
(Dollars in millions) | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 3rd Qtr | Year | ||||||||||||||||||||
Capital expenditures: | |||||||||||||||||||||||||||||
Northeast G&P | $ | 58 | $ | 81 | $ | 173 | $ | 101 | $ | 413 | $ | 114 | $ | 104 | $ | 114 | $ | 332 | |||||||||||
Atlantic-Gulf | 388 | 398 | 371 | 508 | 1,665 | 764 | 746 | 549 | 2,059 | ||||||||||||||||||||
West | 57 | 58 | 94 | 76 | 285 | 69 | 74 | 96 | 239 | ||||||||||||||||||||
Other | 8 | 8 | 6 | 14 | 36 | 10 | 9 | 10 | 29 | ||||||||||||||||||||
Total (1) | $ | 511 | $ | 545 | $ | 644 | $ | 699 | $ | 2,399 | $ | 957 | $ | 933 | $ | 769 | $ | 2,659 | |||||||||||
Purchases of investments: | |||||||||||||||||||||||||||||
Northeast G&P | $ | 20 | $ | 26 | $ | 24 | $ | 29 | $ | 99 | $ | 20 | $ | 70 | $ | 114 | $ | 204 | |||||||||||
Atlantic-Gulf | — | 1 | — | — | 1 | 1 | — | 5 | 6 | ||||||||||||||||||||
West | 32 | — | — | — | 32 | — | — | 593 | 593 | ||||||||||||||||||||
Total | $ | 52 | $ | 27 | $ | 24 | $ | 29 | $ | 132 | $ | 21 | $ | 70 | $ | 712 | $ | 803 | |||||||||||
Summary: | |||||||||||||||||||||||||||||
Northeast G&P | $ | 78 | $ | 107 | $ | 197 | $ | 130 | $ | 512 | $ | 134 | $ | 174 | $ | 228 | $ | 536 | |||||||||||
Atlantic-Gulf | 388 | 399 | 371 | 508 | 1,666 | 765 | 746 | 554 | 2,065 | ||||||||||||||||||||
West | 89 | 58 | 94 | 76 | 317 | 69 | 74 | 689 | 832 | ||||||||||||||||||||
Other | 8 | 8 | 6 | 14 | 36 | 10 | 9 | 10 | 29 | ||||||||||||||||||||
Total | $ | 563 | $ | 572 | $ | 668 | $ | 728 | $ | 2,531 | $ | 978 | $ | 1,003 | $ | 1,481 | $ | 3,462 | |||||||||||
Capital expenditures incurred and purchases of investments: | |||||||||||||||||||||||||||||
Increases to property, plant, and equipment | $ | 569 | $ | 591 | $ | 666 | $ | 836 | $ | 2,662 | $ | 934 | $ | 930 | $ | 618 | $ | 2,482 | |||||||||||
Purchases of investments | 52 | 27 | 24 | 29 | 132 | 21 | 70 | 712 | 803 | ||||||||||||||||||||
Total | $ | 621 | $ | 618 | $ | 690 | $ | 865 | $ | 2,794 | $ | 955 | $ | 1,000 | $ | 1,330 | $ | 3,285 | |||||||||||
(1) Increases to property, plant, and equipment | $ | 569 | $ | 591 | $ | 666 | $ | 836 | $ | 2,662 | $ | 934 | $ | 930 | $ | 618 | $ | 2,482 | |||||||||||
Changes in related accounts payable and accrued liabilities | (58 | ) | (46 | ) | (22 | ) | (137 | ) | (263 | ) | 23 | 3 | 151 | 177 | |||||||||||||||
Capital expenditures | $ | 511 | $ | 545 | $ | 644 | $ | 699 | $ | 2,399 | $ | 957 | $ | 933 | $ | 769 | $ | 2,659 | |||||||||||
Selected Financial Information | |||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||
2017 | 2018 | ||||||||||||||||||||||
(Dollars in millions) | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | 1st Qtr | 2nd Qtr | 3rd Qtr | ||||||||||||||||
Selected financial information: | |||||||||||||||||||||||
Cash and cash equivalents | $ | 639 | $ | 1,918 | $ | 1,172 | $ | 899 | $ | 1,292 | $ | 275 | $ | 42 | |||||||||
Total assets | $ | 47,512 | $ | 48,770 | $ | 46,120 | $ | 46,352 | $ | 47,052 | $ | 46,374 | $ | 47,153 | |||||||||
Capital structure: | |||||||||||||||||||||||
Debt: | |||||||||||||||||||||||
Commercial paper | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 823 | |||||||||
Current | $ | — | $ | 1,951 | $ | 502 | $ | 501 | $ | 501 | $ | 2 | $ | 33 | |||||||||
Noncurrent | $ | 21,825 | $ | 21,325 | $ | 20,567 | $ | 20,434 | $ | 21,379 | $ | 21,313 | $ | 21,409 | |||||||||
Stockholders’ equity | $ | 8,444 | $ | 8,306 | $ | 8,109 | $ | 9,656 | $ | 9,473 | $ | 9,345 | $ | 15,610 | |||||||||
Debt to debt-plus-stockholders’ equity ratio | 72.1 | % | 73.7 | % | 72.2 | % | 68.4 | % | 69.8 | % | 69.5 | % | 58.8 | % | |||||||||
Reconciliation of "Net Income (Loss)" to "Modified EBITDA", Non-GAAP "Adjusted EBITDA" and "Distributable Cash Flow" | ||||||||||||||||||||||||
2018 Guidance | 2019 Guidance | |||||||||||||||||||||||
(Dollars in billions, except coverage ratios) | Low | Mid | High | Low | Mid | High | ||||||||||||||||||
Net income (loss) | $ | 0.975 | $ | 1.075 | $ | 1.175 | $ | 1.050 | $ | 1.200 | $ | 1.350 | ||||||||||||
Provision (benefit) for income taxes | 0.260 | 0.400 | ||||||||||||||||||||||
Interest expense | 1.100 | 1.225 | ||||||||||||||||||||||
Equity (earnings) losses | (0.375 | ) | (0.450 | ) | ||||||||||||||||||||
Proportional Modified EBITDA of equity-method investments | 0.725 | 0.825 | ||||||||||||||||||||||
Depreciation and amortization expenses and accretion expense associated with asset retirement obligations for nonregulated operations | 1.750 | 1.800 | ||||||||||||||||||||||
Modified EBITDA | $ | 4.435 | $ | 4.535 | $ | 4.635 | $ | 4.850 | $ | 5.000 | $ | 5.150 | ||||||||||||
Adjustments included in Modified EBITDA: | ||||||||||||||||||||||||
Constitution Pipeline project development costs | 0.002 | — | ||||||||||||||||||||||
(Gain) loss on early retirement of debt | 0.007 | — | ||||||||||||||||||||||
Regulatory charges resulting from Tax Reform | 0.004 | — | ||||||||||||||||||||||
Share of regulatory charges resulting from Tax Reform for equity-method investments | 0.002 | — | ||||||||||||||||||||||
Total Adjustments included in Modified EBITDA | 0.015 | — | ||||||||||||||||||||||
Adjusted EBITDA | $ | 4.450 | $ | 4.550 | $ | 4.650 | $ | 4.850 | $ | 5.000 | $ | 5.150 | ||||||||||||
Interest expense - net (1) | (1.150 | ) | (1.235 | ) | ||||||||||||||||||||
Maintenance capital expenditures (2) | (0.575 | ) | (0.525 | ) | (0.475 | ) | (0.675 | ) | (0.625 | ) | (0.575 | ) | ||||||||||||
Cash taxes - (Payment) Benefit | — | 0.075 | ||||||||||||||||||||||
Income attributable to noncontrolling interests (NCI) and other | (0.125 | ) | (0.115 | ) | ||||||||||||||||||||
Distributable cash flow (DCF) | $ | 2.600 | $ | 2.750 | $ | 2.900 | $ | 2.900 | $ | 3.100 | $ | 3.300 | ||||||||||||
Dividends & Distributions paid (3) | (1.705 | ) | (1.850 | ) | ||||||||||||||||||||
Excess cash available after dividends & distributions | $ | 0.895 | $ | 1.045 | $ | 1.195 | $ | 1.050 | $ | 1.250 | $ | 1.450 | ||||||||||||
Dividend per share | $ | 1.36 | $ | 1.52 | ||||||||||||||||||||
Coverage ratio (4) | 1.52x | 1.61x | 1.70x | 1.57x | 1.68x | 1.78x | ||||||||||||||||||
(1) Includes proportionate share of interest expense of equity investments. | ||||||||||||||||||||||||
(2) Includes proportionate share of maintenance capital expenditures of equity investments. | ||||||||||||||||||||||||
(3) Includes WPZ distributions to public unitholders for 1Q and 2Q of 2018. | ||||||||||||||||||||||||
(4) Distributable cash flow / Dividends & distributions paid. |
Reconciliation of Income (Loss) Attributable to The Williams Companies, Inc. to Adjusted Income | ||||
2019 | ||||
Guidance | ||||
(Dollars in billions, except per-share amounts) | Midpoint | |||
Net income (loss) | $ | 1.200 | ||
Less: Net income (loss) attributable to noncontrolling interests | 0.115 | |||
Net income (loss) attributable to The Williams Companies, Inc. | $ | 1.085 | ||
Adjustments: | ||||
Adjustments included in Modified EBITDA | — | |||
Adjustments below Modified EBITDA | — | |||
Total adjustments | — | |||
Less tax effect for above items | — | |||
Adjustments for tax related items | — | |||
Adjusted income available to common stockholders | $ | 1.085 | ||
Adjusted diluted earnings per common share | $ | 0.89 | ||
Weighted-average shares - diluted (billions) | 1.217 | |||