Williams (NYSE: WMB) today announced its unaudited financial results for the three and six months ended June 30, 2023.
Robust growth continues across key financial metrics driven by base business
- GAAP net income of $547 million, or $0.45 per diluted share (EPS) – up 36% vs. 2Q 2022
- Adjusted net income of $515 million, or $0.42 per diluted share (Adjusted EPS) – up 5% vs. 2Q 2022
- Adjusted EBITDA of $1.611 billion – up $115 million or 8% vs. 2Q 2022
- Cash flow from operations (CFFO) of $1.377 billion – up $279 million or 25% vs. 2Q 2022
- Available funds from operations (AFFO) of $1.215 billion – up $85 million or 8% vs. 2Q 2022
- Dividend coverage ratio of 2.23x (AFFO basis)
- Repurchased $56 million in shares through opportunistic stock buyback program
- Record gathering volumes of 18.03 Bcf/d
- Continued improvement of balance sheet with leverage ratio of 3.50x
Recent progress on projects in execution to deliver additional earnings growth in 2023 and beyond
- Continued construction of Regional Energy Access with partial in service expected ahead of schedule in 4Q 2023
- Received FERC certificate on Southside Reliability Enhancement Project
- Received favorable environmental assessment on Texas to Louisiana Energy Pathway Project
- Filed FERC applications for Carolina Market Link and Alabama to Georgia Connector Projects
- Signed precedent agreement on MountainWest’s Overthrust Westbound Expansion
- Continued execution of modernization and Emissions Reduction Program (ERP) on transmission systems with completion of first ERP project on Transco compressor station
CEO Perspective
Alan Armstrong, president and chief executive officer, made the following comments:
“Our natural gas-centric strategy continues to prove its resiliency in a low gas price environment with second-quarter Adjusted EBITDA up 8 percent over the same period last year driven by strong earnings growth across our base business. In addition to record gathering volumes, we also benefited from our first full quarter of contributions from the MountainWest Pipeline transmission and storage assets, which our teams have quickly integrated into our large-scale platforms in the western U.S.
“On the project execution front, we are in full construction on the Regional Energy Access expansion, and expect to bring half of the project in service ahead of schedule this winter to begin moving additional Northeast gas to nearby markets. We are generating value from our 2022 acquisitions with several growth projects underway, including MountainWest’s Overthrust Westbound Expansion. Elsewhere across our footprint, we are progressing on an impressive list of transmission and deepwater Gulf of Mexico projects, which we expect to drive additional growth toward the end of 2024.”
Armstrong added, “As we continue expanding to serve growing markets, we’re also investing in a multi-year modernization program of our large-scale transmission systems, which will reduce emissions and increase earnings. Our recently issued Sustainability Report details this progress as well as ongoing efforts to support communities, environmental stewardship and workforce development and diversity.”
Williams Summary Financial Information |
2Q |
|
Year to Date |
||
Amounts in millions, except ratios and per-share amounts. Per share amounts are reported on a diluted basis. Net income amounts are from continuing operations attributable to The Williams Companies, Inc. available to common stockholders. |
2023 |
2022 |
|
2023 |
2022 |
|
|
|
|
|
|
GAAP Measures |
|
|
|
|
|
Net Income |
$547 |
$400 |
|
$1,473 |
$779 |
Net Income Per Share |
$0.45 |
$0.33 |
|
$1.20 |
$0.64 |
Cash Flow From Operations |
$1,377 |
$1,098 |
|
$2,891 |
$2,180 |
|
|
|
|
|
|
Non-GAAP Measures (1) |
|
|
|
|
|
Adjusted EBITDA |
$1,611 |
$1,496 |
|
$3,406 |
$3,007 |
Adjusted Net Income |
$515 |
$484 |
|
$1,199 |
$983 |
Adjusted Earnings Per Share |
$0.42 |
$0.40 |
|
$0.98 |
$0.80 |
Available Funds from Operations |
$1,215 |
$1,130 |
|
$2,660 |
$2,320 |
Dividend Coverage Ratio |
2.23x |
2.19x |
|
2.44x |
2.24x |
|
|
|
|
|
|
Other |
|
|
|
|
|
Debt-to-Adjusted EBITDA at Quarter End (2) |
3.50x |
3.82x |
|
|
|
Capital Investments (3) (4) |
$715 |
$429 |
|
$1,240 |
$745 |
|
|
|
|
|
|
(1) Schedules reconciling Adjusted Net Income, Adjusted EBITDA, Available Funds from Operations and Dividend Coverage Ratio (non-GAAP measures) to the most comparable GAAP measure are available at www.williams.com and as an attachment to this news release. |
|||||
(2) Does not represent leverage ratios measured for WMB credit agreement compliance or leverage ratios as calculated by the major credit ratings agencies. Debt is net of cash on hand, and Adjusted EBITDA reflects the sum of the last four quarters. |
|||||
(3) Capital Investments includes increases to property, plant, and equipment (growth & maintenance capital),purchases of and contributions to equity-method investments and purchases of other long-term investments. |
|||||
(4) Year-to-date 2023 capital excludes $1.053 billion acquisition of MountainWest Pipeline Holding company, which closed February 14, 2023. Second quarter 2022 and full-year 2022 capital excludes $933 million for purchase of the Trace Midstream Haynesville gathering assets, which closed April 29, 2022. |
GAAP Measures
Second-quarter 2023 net income increased by $147 million compared to the prior year reflecting the benefit of higher service revenues driven by contributions from recent acquisitions and increased volumes and rates in the Northeast G&P segment, as well as a favorable change of $324 million in net unrealized gains/losses on commodity derivatives. These improvements were partially offset by lower results from our upstream business driven by lower prices, lower commodity marketing margins, and higher operating and administrative expenses, including the impact from recent acquisitions. The tax provision increased primarily due to higher pretax income and the absence of $134 million associated with the release of valuation allowances on deferred income tax assets and federal income tax settlements recorded in the prior year. The second-quarter and year-to-date 2023 periods also reported a loss from discontinued operations associated with an adverse legal ruling involving former refinery operations.
For year-to-date 2023, net income increased $694 million compared to the prior year reflecting a favorable change of $774 million in net unrealized gains/losses on commodity derivatives. Other drivers of the year-to-date increase are similar to those described for the quarterly comparison, except that improved commodity marketing margins more than offset lower NGL processing margins for the year-to-date period.
Cash flow from operations for the second-quarter and year-to-date 2023 periods increased compared to 2022 primarily due to favorable net changes in working capital. The year-to-date improvement also reflected higher operating results exclusive of non-cash items.
Non-GAAP Measures
Second-quarter 2023 Adjusted EBITDA increased by $115 million over the prior year, driven by the previously described higher service revenues, partially offset by lower commodity marketing margins, reduced upstream results, and higher operating and administrative expenses. Year-to-date 2023 Adjusted EBITDA increased by $399 million over the prior year, driven by similar factors, except that commodity margins were overall improved.
Second-quarter 2023 Adjusted Net Income improved by $31 million over the prior year, driven by the previously described impacts to net income, adjusted primarily to remove the effects of net unrealized gains/losses on commodity derivatives, amortization of certain assets from the Sequent acquisition, and favorable income tax benefits. Year-to-date Adjusted Net Income increased by $216 million over the prior year for similar reasons.
Second-quarter 2023 Available Funds From Operations (AFFO) increased by $85 million compared to the prior year primarily due to higher results from continuing operations exclusive of non-cash items. Year-to-date 2023 AFFO increased by $340 million also primarily reflecting higher results from continuing operations exclusive of non-cash items.
|
Second Quarter |
|
Year to Date |
|||||||||||||||||||
Amounts in millions |
Modified EBITDA |
|
Adjusted EBITDA |
|
Modified EBITDA |
|
Adjusted EBITDA |
|||||||||||||||
2Q 2023 |
2Q 2022 |
|
Change |
|
2Q 2023 |
|
2Q 2022 |
Change |
|
2023 |
2022 |
|
Change |
|
2023 |
2022 |
Change |
|||||
Transmission & Gulf of Mexico |
$731 |
$652 |
|
$79 |
|
|
$748 |
|
$652 |
$96 |
|
|
$1,446 |
$1,349 |
|
$97 |
|
|
$1,476 |
$1,349 |
$127 |
|
Northeast G&P |
515 |
450 |
|
65 |
|
|
515 |
|
450 |
65 |
|
|
985 |
868 |
|
117 |
|
|
985 |
868 |
117 |
|
West |
312 |
288 |
|
24 |
|
|
312 |
|
296 |
16 |
|
|
616 |
548 |
|
68 |
|
|
598 |
556 |
42 |
|
Gas & NGL Marketing Services |
68 |
(282 |
) |
350 |
|
|
(16 |
) |
6 |
(22 |
) |
|
635 |
(269 |
) |
904 |
|
|
215 |
71 |
144 |
|
Other |
41 |
139 |
|
(98 |
) |
|
52 |
|
92 |
(40 |
) |
|
115 |
144 |
|
(29 |
) |
|
132 |
163 |
(31 |
) |
Total |
$1,667 |
$1,247 |
|
$420 |
|
|
$1,611 |
|
$1,496 |
$115 |
|
|
$3,797 |
$2,640 |
|
$1,157 |
|
|
$3,406 |
$3,007 |
$399 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Note: Williams uses Modified EBITDA for its segment reporting. Definitions of Modified EBITDA and Adjusted EBITDA and schedules reconciling to net income are included in this news release. |
Transmission & Gulf of Mexico
Second-quarter and year-to-date 2023 Modified and Adjusted EBITDA improved compared to the prior year driven by the MountainWest and NorTex Midstream acquisitions, as well as higher service revenues. Modified EBITDA for 2023 was further impacted by one-time MountainWest acquisition and transition costs, which are excluded from Adjusted EBITDA.
Northeast G&P
Second-quarter and year-to-date 2023 Modified and Adjusted EBITDA increased over the prior year driven by increased gathering rates and volumes, partially offset by lower rates at Laurel Mountain Midstream and Bradford joint ventures.
West
Second-quarter and year-to-date 2023 Modified and Adjusted EBITDA increased compared to the prior year benefiting from higher service revenues reflecting realized gains on natural gas hedges and higher Haynesville volumes, partially offset by lower NYMEX-based rates in the Barnett, as well increased JV EBITDA. The year-to-date period improvement also included contributions from Trace Midstream acquired in April 2022 and lower processing margins due to a short-term gas price spike at Opal early in the year and severe weather impacts.
Gas & NGL Marketing Services
Second-quarter 2023 Modified EBITDA improved from the prior year primarily reflecting a $382 million net favorable change in unrealized gains/losses on commodity derivatives. Year-to-date 2023 Modified EBITDA improved from the prior year primarily reflecting higher commodity marketing margins and a $772 million net favorable change in unrealized gains/losses on commodity derivatives. The unrealized gains/losses on commodity derivatives are excluded from Adjusted EBITDA.
Other
Second-quarter 2023 Modified EBITDA decreased compared to the prior year primarily reflecting a $58 million net unfavorable change in unrealized gains/losses on commodity derivatives, which is excluded from Adjusted EBITDA. The second-quarter and year-to-date periods were also impacted by lower results from our upstream business driven by lower prices.
Business Segment Results & Form 10-Q
Williams' operations are comprised of the following reportable segments: Transmission & Gulf of Mexico, Northeast G&P, West and Gas & NGL Marketing Services, as well as Other. For more information, see the company's second-quarter 2023 Form 10-Q.
2023 Financial Guidance
The company continues to expect 2023 Adjusted EBITDA between $6.4 billion and $6.8 billion with 2023 growth capex between $1.6 billion to $1.9 billion. Importantly, Williams anticipates a leverage ratio midpoint of 3.65x, which will allow it to retain financial flexibility. The dividend was increased by 5.3% on an annualized basis to $1.79 in 2023 from $1.70 in 2022.
Williams' Second-Quarter 2023 Materials to be Posted Shortly; Q&A Webcast Scheduled for Tomorrow
Williams' second-quarter 2023 earnings presentation will be posted at www.williams.com. The company’s second-quarter 2023 earnings conference call and webcast with analysts and investors is scheduled for Thursday, Aug. 3, at 9:30 a.m. Eastern Time (8:30 a.m. Central Time). Participants who wish to join the call by phone must register using the following link: https://conferencingportals.com/event/MTgNWtxQ
A webcast link to the conference call will be provided on Williams’ Investor Relations website. A replay of the webcast will be available on the website for at least 90 days following the event.
About Williams
As the world demands reliable, low-cost, low-carbon energy, Williams (NYSE: WMB) will be there with the best transport, storage and delivery solutions to reliably fuel the clean energy economy. Headquartered in Tulsa, Oklahoma, Williams is an industry-leading, investment grade C-Corp with operations across the natural gas value chain including gathering, processing, interstate transportation, storage, wholesale marketing and trading of natural gas and natural gas liquids. With major positions in top U.S. supply basins, Williams connects the best supplies with the growing demand for clean energy. Williams owns and operates more than 33,000 miles of pipelines system wide – including Transco, the nation’s largest volume pipeline – and handles approximately one third of the natural gas in the United States that is used every day for clean-power generation, heating and industrial use. Learn how the company is leveraging its nationwide footprint to incorporate clean hydrogen, NextGen Gas and other innovations at www.williams.com.
The Williams Companies, Inc. |
|||||||||||||||
Consolidated Statement of Income |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
(Millions, except per-share amounts) |
||||||||||||||
Revenues: |
|
|
|
|
|
|
|
||||||||
Service revenues |
$ |
1,748 |
|
|
$ |
1,606 |
|
|
$ |
3,442 |
|
|
$ |
3,143 |
|
Service revenues – commodity consideration |
|
27 |
|
|
|
86 |
|
|
|
63 |
|
|
|
163 |
|
Product sales |
|
593 |
|
|
|
1,111 |
|
|
|
1,438 |
|
|
|
2,215 |
|
Net gain (loss) on commodity derivatives |
|
115 |
|
|
|
(313 |
) |
|
|
621 |
|
|
|
(507 |
) |
Total revenues |
|
2,483 |
|
|
|
2,490 |
|
|
|
5,564 |
|
|
|
5,014 |
|
Costs and expenses: |
|
|
|
|
|
|
|
||||||||
Product costs |
|
421 |
|
|
|
857 |
|
|
|
974 |
|
|
|
1,660 |
|
Net processing commodity expenses |
|
44 |
|
|
|
40 |
|
|
|
98 |
|
|
|
70 |
|
Operating and maintenance expenses |
|
481 |
|
|
|
465 |
|
|
|
944 |
|
|
|
859 |
|
Depreciation and amortization expenses |
|
515 |
|
|
|
506 |
|
|
|
1,021 |
|
|
|
1,004 |
|
Selling, general, and administrative expenses |
|
161 |
|
|
|
160 |
|
|
|
337 |
|
|
|
314 |
|
Other (income) expense – net |
|
(9 |
) |
|
|
(10 |
) |
|
|
(40 |
) |
|
|
(19 |
) |
Total costs and expenses |
|
1,613 |
|
|
|
2,018 |
|
|
|
3,334 |
|
|
|
3,888 |
|
Operating income (loss) |
|
870 |
|
|
|
472 |
|
|
|
2,230 |
|
|
|
1,126 |
|
Equity earnings (losses) |
|
160 |
|
|
|
163 |
|
|
|
307 |
|
|
|
299 |
|
Other investing income (loss) – net |
|
13 |
|
|
|
2 |
|
|
|
21 |
|
|
|
3 |
|
Interest incurred |
|
(319 |
) |
|
|
(286 |
) |
|
|
(623 |
) |
|
|
(575 |
) |
Interest capitalized |
|
13 |
|
|
|
5 |
|
|
|
23 |
|
|
|
8 |
|
Other income (expense) – net |
|
19 |
|
|
|
6 |
|
|
|
39 |
|
|
|
11 |
|
Income (loss) before income taxes |
|
756 |
|
|
|
362 |
|
|
|
1,997 |
|
|
|
872 |
|
Less: Provision (benefit) for income taxes |
|
175 |
|
|
|
(45 |
) |
|
|
459 |
|
|
|
73 |
|
Income (loss) from continuing operations |
|
581 |
|
|
|
407 |
|
|
|
1,538 |
|
|
|
799 |
|
Income (loss) from discontinued operations |
|
(87 |
) |
|
|
— |
|
|
|
(87 |
) |
|
|
— |
|
Net income (loss) |
|
494 |
|
|
|
407 |
|
|
|
1,451 |
|
|
|
799 |
|
Less: Net income (loss) attributable to noncontrolling interests |
|
34 |
|
|
|
7 |
|
|
|
64 |
|
|
|
19 |
|
Net income (loss) attributable to The Williams Companies, Inc |
|
460 |
|
|
|
400 |
|
|
|
1,387 |
|
|
|
780 |
|
Less: Preferred stock dividends |
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
1 |
|
Net income (loss) available to common stockholders |
$ |
460 |
|
|
$ |
400 |
|
|
$ |
1,386 |
|
|
$ |
779 |
|
Amounts attributable to The Williams Companies, Inc. available to common stockholders:. |
|
|
|
|
|
|
|
||||||||
Income (loss) from continuing operations |
$ |
547 |
|
|
$ |
400 |
|
|
$ |
1,473 |
|
|
$ |
779 |
|
Income (loss) from discontinued operations |
|
(87 |
) |
|
|
— |
|
|
|
(87 |
) |
|
|
— |
|
Net income (loss) available to common stockholders |
$ |
460 |
|
|
$ |
400 |
|
|
$ |
1,386 |
|
|
$ |
779 |
|
Basic earnings (loss) per common share: |
|
|
|
|
|
|
|
||||||||
Income (loss) from continuing operations |
$ |
.45 |
|
|
$ |
.33 |
|
|
$ |
1.21 |
|
|
$ |
.64 |
|
Income (loss) from discontinued operations |
|
(.07 |
) |
|
|
— |
|
|
|
(.07 |
) |
|
|
— |
|
Net income (loss) available to common stockholders |
$ |
.38 |
|
|
$ |
.33 |
|
|
$ |
1.14 |
|
|
$ |
.64 |
|
Weighted-average shares (thousands) |
|
1,217,673 |
|
|
|
1,218,678 |
|
|
|
1,218,564 |
|
|
|
1,217,814 |
|
Diluted earnings (loss) per common share: |
|
|
|
|
|
|
|
||||||||
Income (loss) from continuing operations |
$ |
.45 |
|
|
$ |
.33 |
|
|
$ |
1.20 |
|
|
$ |
.64 |
|
Income (loss) from discontinued operations |
|
(.07 |
) |
|
|
— |
|
|
|
(.07 |
) |
|
|
— |
|
Net income (loss) available to common stockholders |
$ |
.38 |
|
|
$ |
.33 |
|
|
$ |
1.13 |
|
|
$ |
.64 |
|
Weighted-average shares (thousands) |
|
1,219,915 |
|
|
|
1,222,694 |
|
|
|
1,223,429 |
|
|
|
1,221,991 |
|
The Williams Companies, Inc. |
||||||||
Consolidated Balance Sheet |
||||||||
(Unaudited) |
||||||||
|
|
June 30,
|
|
December 31,
|
||||
|
|
(Millions, except per-share amounts) |
||||||
ASSETS |
|
|
||||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
551 |
|
|
$ |
152 |
|
Trade accounts and other receivables (net of allowance of $6 at June 30, 2023 and December 31, 2022) |
|
|
1,362 |
|
|
|
2,723 |
|
Inventories |
|
|
259 |
|
|
|
320 |
|
Derivative assets |
|
|
233 |
|
|
|
323 |
|
Other current assets and deferred charges |
|
|
234 |
|
|
|
279 |
|
Total current assets |
|
|
2,639 |
|
|
|
3,797 |
|
Investments |
|
|
5,046 |
|
|
|
5,065 |
|
Property, plant, and equipment |
|
|
50,240 |
|
|
|
47,057 |
|
Accumulated depreciation and amortization |
|
|
(17,894 |
) |
|
|
(16,168 |
) |
Property, plant, and equipment – net. |
|
|
32,346 |
|
|
|
30,889 |
|
Intangible assets – net of accumulated amortization |
|
|
7,573 |
|
|
|
7,363 |
|
Regulatory assets, deferred charges, and other |
|
|
1,421 |
|
|
|
1,319 |
|
Total assets |
|
$ |
49,025 |
|
|
$ |
48,433 |
|
LIABILITIES AND EQUITY |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
1,146 |
|
|
$ |
2,327 |
|
Derivative liabilities |
|
|
143 |
|
|
|
316 |
|
Accrued and other current liabilities |
|
|
1,218 |
|
|
|
1,270 |
|
Commercial paper |
|
|
— |
|
|
|
350 |
|
Long-term debt due within one year |
|
|
2,877 |
|
|
|
627 |
|
Total current liabilities |
|
|
5,384 |
|
|
|
4,890 |
|
Long-term debt |
|
|
21,532 |
|
|
|
21,927 |
|
Deferred income tax liabilities |
|
|
3,325 |
|
|
|
2,887 |
|
Regulatory liabilities, deferred income, and other |
|
|
4,575 |
|
|
|
4,684 |
|
Contingent liabilities and commitments |
|
|
|
|
||||
Equity: |
|
|
|
|
||||
Stockholders’ equity: |
|
|
|
|
||||
Preferred stock ($1 par value; 30 million shares authorized at June 30, 2023 and December 31, 2022; 35,000 shares issued at June 30, 2023 and December 31, 2022) |
|
|
35 |
|
|
|
35 |
|
Common stock ($1 par value; 1,470 million shares authorized at June 30, 2023 and December 31, 2022; 1,256 million shares issued at June 30, 2023 and 1,253 million shares issued at December 31, 2022) |
|
|
1,256 |
|
|
|
1,253 |
|
Capital in excess of par value |
|
|
24,538 |
|
|
|
24,542 |
|
Retained deficit |
|
|
(12,982 |
) |
|
|
(13,271 |
) |
Accumulated other comprehensive income (loss). |
|
|
12 |
|
|
|
(24 |
) |
Treasury stock, at cost (39 million shares at June 30, 2023 and 35 million shares at December 31, 2022 of common stock) |
|
|
(1,180 |
) |
|
|
(1,050 |
) |
Total stockholders’ equity |
|
|
11,679 |
|
|
|
11,485 |
|
Noncontrolling interests in consolidated subsidiaries |
|
|
2,530 |
|
|
|
2,560 |
|
Total equity |
|
|
14,209 |
|
|
|
14,045 |
|
Total liabilities and equity |
|
$ |
49,025 |
|
|
$ |
48,433 |
|
The Williams Companies, Inc. Consolidated Statement of Cash Flows (Unaudited) |
||||||||
|
Six Months Ended
|
|||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
(Millions) |
|||||||
OPERATING ACTIVITIES: |
|
|||||||
Net income (loss) |
$ |
1,451 |
|
|
$ |
799 |
|
|
Adjustments to reconcile to net cash provided (used) by operating activities: |
|
|
|
|||||
Depreciation and amortization |
|
1,021 |
|
|
|
1,004 |
|
|
Provision (benefit) for deferred income taxes |
|
427 |
|
|
|
90 |
|
|
Equity (earnings) losses |
|
(307 |
) |
|
|
(299 |
) |
|
Distributions from equity-method investees |
|
418 |
|
|
|
414 |
|
|
Net unrealized (gain) loss from derivative instruments |
|
(410 |
) |
|
|
364 |
|
|
Inventory write-downs |
|
23 |
|
|
|
12 |
|
|
Amortization of stock-based awards |
|
40 |
|
|
|
36 |
|
|
Cash provided (used) by changes in current assets and liabilities: |
|
|
|
|||||
Accounts receivable |
|
1,423 |
|
|
|
(797 |
) |
|
Inventories |
|
41 |
|
|
|
(11 |
) |
|
Other current assets and deferred charges |
|
24 |
|
|
|
(15 |
) |
|
Accounts payable |
|
(1,220 |
) |
|
|
690 |
|
|
Accrued and other current liabilities |
|
(72 |
) |
|
|
(24 |
) |
|
Changes in current and noncurrent derivative assets and liabilities |
|
119 |
|
|
|
49 |
|
|
Other, including changes in noncurrent assets and liabilities |
|
(87 |
) |
|
|
(132 |
) |
|
Net cash provided (used) by operating activities |
|
2,891 |
|
|
|
2,180 |
|
|
FINANCING ACTIVITIES: |
|
|
|
|||||
Proceeds from (payments of) commercial paper – net |
|
(352 |
) |
|
|
1,037 |
|
|
Proceeds from long-term debt |
|
1,503 |
|
|
|
5 |
|
|
Payments of long-term debt |
|
(14 |
) |
|
|
(2,012 |
) |
|
Proceeds from issuance of common stock |
|
4 |
|
|
|
48 |
|
|
Purchases of treasury stock |
|
(130 |
) |
|
|
— |
|
|
Common dividends paid |
|
(1,091 |
) |
|
|
(1,035 |
) |
|
Dividends and distributions paid to noncontrolling interests |
|
(112 |
) |
|
|
(95 |
) |
|
Contributions from noncontrolling interests |
|
18 |
|
|
|
8 |
|
|
Payments for debt issuance costs |
|
(13 |
) |
|
|
— |
|
|
Other – net |
|
(17 |
) |
|
|
(31 |
) |
|
Net cash provided (used) by financing activities |
|
(204 |
) |
|
|
(2,075 |
) |
|
INVESTING ACTIVITIES: |
|
|
|
|||||
Property, plant, and equipment: |
|
|
|
|||||
Capital expenditures (1) |
|
(1,155 |
) |
|
|
(606 |
) |
|
Dispositions – net |
|
(21 |
) |
|
|
(11 |
) |
|
Contributions in aid of construction |
|
18 |
|
|
|
6 |
|
|
Purchases of businesses, net of cash acquired |
|
(1,053 |
) |
|
|
(933 |
) |
|
Purchases of and contributions to equity-method investments |
|
(69 |
) |
|
|
(100 |
) |
|
Other – net |
|
(8 |
) |
|
|
(8 |
) |
|
Net cash provided (used) by investing activities |
|
(2,288 |
) |
|
|
(1,652 |
) |
|
Increase (decrease) in cash and cash equivalents |
|
399 |
|
|
|
(1,547 |
) |
|
Cash and cash equivalents at beginning of year |
|
152 |
|
|
|
1,680 |
|
|
Cash and cash equivalents at end of period |
$ |
551 |
|
|
$ |
133 |
|
|
_____________ |
|
|
|
|||||
(1) Increases to property, plant, and equipment |
$ |
(1,168 |
) |
|
$ |
(642 |
) |
|
Changes in related accounts payable and accrued liabilities |
|
13 |
|
|
|
36 |
|
|
Capital expenditures |
$ |
(1,155 |
) |
|
$ |
(606 |
) |
Transmission & Gulf of Mexico |
|
|||||||||||||||||||||||||
(UNAUDITED) |
|
|||||||||||||||||||||||||
|
2022 |
|
2023 |
|
||||||||||||||||||||||
(Dollars in millions) |
1st Qtr |
2nd Qtr |
3rd Qtr |
4th Qtr |
Year |
|
1st Qtr |
2nd Qtr |
Year |
|
||||||||||||||||
Regulated interstate natural gas transportation, storage, and other revenues (1) |
$ |
730 |
|
$ |
717 |
|
$ |
734 |
|
$ |
758 |
|
$ |
2,939 |
|
|
$ |
774 |
|
$ |
786 |
|
$ |
1,560 |
|
|
Gathering, processing, storage and transportation revenues |
|
82 |
|
|
84 |
|
|
99 |
|
|
100 |
|
|
365 |
|
|
|
100 |
|
|
104 |
|
|
204 |
|
|
Other fee revenues (1) |
|
5 |
|
|
5 |
|
|
4 |
|
|
7 |
|
|
21 |
|
|
|
6 |
|
|
8 |
|
|
14 |
|
|
Commodity margins |
|
15 |
|
|
11 |
|
|
10 |
|
|
7 |
|
|
43 |
|
|
|
10 |
|
|
8 |
|
|
18 |
|
|
Net unrealized gain (loss) from derivative instruments |
|
— |
|
|
— |
|
|
1 |
|
|
(1 |
) |
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
Operating and administrative costs (1) |
|
(202 |
) |
|
(227 |
) |
|
(238 |
) |
|
(239 |
) |
|
(906 |
) |
|
|
(254 |
) |
|
(254 |
) |
|
(508 |
) |
|
Other segment income (expenses) - net (1) |
|
19 |
|
|
17 |
|
|
(22 |
) |
|
5 |
|
|
19 |
|
|
|
26 |
|
|
31 |
|
|
57 |
|
|
Proportional Modified EBITDA of equity-method investments |
|
48 |
|
|
45 |
|
|
50 |
|
|
50 |
|
|
193 |
|
|
|
53 |
|
|
48 |
|
|
101 |
|
|
Modified EBITDA |
|
697 |
|
|
652 |
|
|
638 |
|
|
687 |
|
|
2,674 |
|
|
|
715 |
|
|
731 |
|
|
1,446 |
|
|
Adjustments |
|
— |
|
|
— |
|
|
33 |
|
|
13 |
|
|
46 |
|
|
|
13 |
|
|
17 |
|
|
30 |
|
|
Adjusted EBITDA |
$ |
697 |
|
$ |
652 |
|
$ |
671 |
|
$ |
700 |
|
$ |
2,720 |
|
|
$ |
728 |
|
$ |
748 |
|
$ |
1,476 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Statistics for Operated Assets |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Natural Gas Transmission (2) |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Transcontinental Gas Pipe Line |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Avg. daily transportation volumes (MMdth) |
|
15.0 |
|
|
13.5 |
|
|
14.7 |
|
|
14.2 |
|
|
14.4 |
|
|
|
14.3 |
|
|
13.2 |
|
|
13.8 |
|
|
Avg. daily firm reserved capacity (MMdth) |
|
19.3 |
|
|
19.1 |
|
|
19.2 |
|
|
19.3 |
|
|
19.2 |
|
|
|
19.5 |
|
|
19.4 |
|
|
19.4 |
|
|
Northwest Pipeline LLC |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Avg. daily transportation volumes (MMdth) |
|
2.8 |
|
|
2.1 |
|
|
2.0 |
|
|
2.9 |
|
|
2.5 |
|
|
|
3.1 |
|
|
2.3 |
|
|
2.7 |
|
|
Avg. daily firm reserved capacity (MMdth) |
|
3.8 |
|
|
3.8 |
|
|
3.8 |
|
|
3.8 |
|
|
3.8 |
|
|
|
3.8 |
|
|
3.8 |
|
|
3.8 |
|
|
MountainWest (3) |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Avg. daily transportation volumes (MMdth) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
4.2 |
|
|
3.2 |
|
|
3.5 |
|
|
Avg. daily firm reserved capacity (MMdth) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
7.8 |
|
|
7.5 |
|
|
7.6 |
|
|
Gulfstream - Non-consolidated |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Avg. daily transportation volumes (MMdth) |
|
0.9 |
|
|
1.3 |
|
|
1.4 |
|
|
1.1 |
|
|
1.3 |
|
|
|
1.0 |
|
|
1.2 |
|
|
1.1 |
|
|
Avg. daily firm reserved capacity (MMdth) |
|
1.3 |
|
|
1.3 |
|
|
1.4 |
|
|
1.4 |
|
|
1.4 |
|
|
|
1.4 |
|
|
1.4 |
|
|
1.4 |
|
|
Gathering, Processing, and Crude Oil Transportation |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Consolidated (4) |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Gathering volumes (Bcf/d) |
|
0.30 |
|
|
0.28 |
|
|
0.29 |
|
|
0.28 |
|
|
0.29 |
|
|
|
0.28 |
|
|
0.23 |
|
|
0.25 |
|
|
Plant inlet natural gas volumes (Bcf/d) |
|
0.48 |
|
|
0.46 |
|
|
0.49 |
|
|
0.46 |
|
|
0.47 |
|
|
|
0.43 |
|
|
0.40 |
|
|
0.41 |
|
|
NGL production (Mbbls/d) |
|
31 |
|
|
31 |
|
|
26 |
|
|
26 |
|
|
28 |
|
|
|
28 |
|
|
24 |
|
|
26 |
|
|
NGL equity sales (Mbbls/d) |
|
7 |
|
|
7 |
|
|
4 |
|
|
5 |
|
|
6 |
|
|
|
7 |
|
|
5 |
|
|
6 |
|
|
Crude oil transportation volumes (Mbbls/d) |
|
110 |
|
|
124 |
|
|
125 |
|
|
118 |
|
|
119 |
|
|
|
119 |
|
|
111 |
|
|
115 |
|
|
Non-consolidated (5) |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Gathering volumes (Bcf/d) |
|
0.39 |
|
|
0.37 |
|
|
0.41 |
|
|
0.42 |
|
|
0.40 |
|
|
|
0.36 |
|
|
0.30 |
|
|
0.33 |
|
|
Plant inlet natural gas volumes (Bcf/d) |
|
0.38 |
|
|
0.37 |
|
|
0.41 |
|
|
0.42 |
|
|
0.40 |
|
|
|
0.36 |
|
|
0.30 |
|
|
0.33 |
|
|
NGL production (Mbbls/d) |
|
28 |
|
|
26 |
|
|
29 |
|
|
29 |
|
|
28 |
|
|
|
28 |
|
|
21 |
|
|
24 |
|
|
NGL equity sales (Mbbls/d) |
|
8 |
|
|
6 |
|
|
7 |
|
|
10 |
|
|
8 |
|
|
|
8 |
|
|
3 |
|
|
6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
(1) Excludes certain amounts associated with revenues and operating costs for tracked or reimbursable charges. |
|
|||||||||||||||||||||||||
(2) Tbtu converted to MMdth at one trillion British thermal units = one million dekatherms. |
|
|||||||||||||||||||||||||
(3) Includes 100% of the volumes associated with the MountainWest Acquisition transmission assets after the purchase on February 14, 2023, including 100% of the volumes associated with the operated equity-method investment White River Hub, LLC. Average volumes were calculated over the period owned. |
|
|||||||||||||||||||||||||
(4) Excludes volumes associated with equity-method investments that are not consolidated in our results. |
|
|||||||||||||||||||||||||
(5) Includes 100% of the volumes associated with operated equity-method investments. |
|
Northeast G&P |
|
|||||||||||||||||||||||||
(UNAUDITED) |
|
|||||||||||||||||||||||||
|
2022 |
|
2023 |
|
||||||||||||||||||||||
(Dollars in millions) |
1st Qtr |
2nd Qtr |
3rd Qtr |
4th Qtr |
Year |
|
1st Qtr |
2nd Qtr |
Year |
|
||||||||||||||||
Gathering, processing, transportation, and fractionation revenues |
$ |
323 |
|
$ |
350 |
|
$ |
354 |
|
$ |
368 |
|
$ |
1,395 |
|
|
$ |
391 |
|
$ |
431 |
|
$ |
822 |
|
|
Other fee revenues (1) |
|
27 |
|
|
27 |
|
|
27 |
|
|
46 |
|
|
127 |
|
|
|
32 |
|
|
27 |
|
|
59 |
|
|
Commodity margins |
|
6 |
|
|
1 |
|
|
3 |
|
|
— |
|
|
10 |
|
|
|
5 |
|
|
(1 |
) |
|
4 |
|
|
Operating and administrative costs (1) |
|
(85 |
) |
|
(102 |
) |
|
(101 |
) |
|
(97 |
) |
|
(385 |
) |
|
|
(101 |
) |
|
(101 |
) |
|
(202 |
) |
|
Other segment income (expenses) - net |
|
(3 |
) |
|
— |
|
|
(1 |
) |
|
(1 |
) |
|
(5 |
) |
|
|
— |
|
|
— |
|
|
— |
|
|
Proportional Modified EBITDA of equity-method investments |
|
150 |
|
|
174 |
|
|
182 |
|
|
148 |
|
|
654 |
|
|
|
143 |
|
|
159 |
|
|
302 |
|
|
Modified EBITDA |
|
418 |
|
|
450 |
|
|
464 |
|
|
464 |
|
|
1,796 |
|
|
|
470 |
|
|
515 |
|
|
985 |
|
|
Adjustments |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
Adjusted EBITDA |
$ |
418 |
|
$ |
450 |
|
$ |
464 |
|
$ |
464 |
|
$ |
1,796 |
|
|
$ |
470 |
|
$ |
515 |
|
$ |
985 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Statistics for Operated Assets and non-operated Blue Racer Midstream |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Gathering and Processing |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Consolidated (2) |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Gathering volumes (Bcf/d) |
|
4.03 |
|
|
4.19 |
|
|
4.22 |
|
|
4.31 |
|
|
4.19 |
|
|
|
4.45 |
|
|
4.63 |
|
|
4.54 |
|
|
Plant inlet natural gas volumes (Bcf/d) |
|
1.46 |
|
|
1.70 |
|
|
1.74 |
|
|
1.70 |
|
|
1.65 |
|
|
|
1.92 |
|
|
1.79 |
|
|
1.85 |
|
|
NGL production (Mbbls/d) |
|
110 |
|
|
118 |
|
|
125 |
|
|
127 |
|
|
120 |
|
|
|
144 |
|
|
135 |
|
|
140 |
|
|
NGL equity sales (Mbbls/d) (3) |
|
2 |
|
|
1 |
|
|
1 |
|
|
1 |
|
|
1 |
|
|
|
1 |
|
|
1 |
|
|
1 |
|
|
Non-consolidated (4) |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Gathering volumes (Bcf/d) |
|
6.62 |
|
|
6.76 |
|
|
6.58 |
|
|
6.48 |
|
|
6.61 |
|
|
|
6.97 |
|
|
7.03 |
|
|
7.00 |
|
|
Plant inlet natural gas volumes (Bcf/d) |
|
0.66 |
|
|
0.76 |
|
|
0.66 |
|
|
0.77 |
|
|
0.71 |
|
|
|
0.77 |
|
|
0.93 |
|
|
0.85 |
|
|
NGL production (Mbbls/d) |
|
50 |
|
|
53 |
|
|
45 |
|
|
56 |
|
|
51 |
|
|
|
54 |
|
|
64 |
|
|
59 |
|
|
NGL equity sales (Mbbls/d) |
|
4 |
|
|
3 |
|
|
2 |
|
|
2 |
|
|
3 |
|
|
|
4 |
|
|
5 |
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
(1) Excludes certain amounts associated with revenues and operating costs for reimbursable charges. |
|
|||||||||||||||||||||||||
(2) Includes volumes associated with Susquehanna Supply Hub, the Northeast JV, and Utica Supply Hub, all of which are consolidated. |
|
|||||||||||||||||||||||||
(3) 1st Qtr 2023 volumes have been revised for a correction. |
|
|||||||||||||||||||||||||
(4) Includes 100% of the volumes associated with operated equity-method investments, including the Laurel Mountain Midstream partnership; and the Bradford Supply Hub and the Marcellus South Supply Hub within the Appalachia Midstream Services partnership. Also, all periods include non-operated Blue Racer Midstream. |
|
West |
|
|||||||||||||||||||||||||
(UNAUDITED) |
|
|||||||||||||||||||||||||
|
2022 |
|
2023 |
|
||||||||||||||||||||||
(Dollars in millions) |
1st Qtr |
2nd Qtr |
3rd Qtr |
4th Qtr |
Year |
|
1st Qtr |
2nd Qtr |
Year |
|
||||||||||||||||
Net gathering, processing, transportation, storage, and fractionation revenues |
$ |
317 |
|
$ |
360 |
|
$ |
397 |
|
$ |
401 |
|
$ |
1,475 |
|
|
$ |
382 |
|
$ |
373 |
|
$ |
755 |
|
|
Other fee revenues (1) |
|
6 |
|
|
6 |
|
|
6 |
|
|
5 |
|
|
23 |
|
|
|
5 |
|
|
7 |
|
|
12 |
|
|
Commodity margins |
|
23 |
|
|
25 |
|
|
27 |
|
|
27 |
|
|
102 |
|
|
|
(24 |
) |
|
18 |
|
|
(6 |
) |
|
Operating and administrative costs (1) |
|
(112 |
) |
|
(133 |
) |
|
(128 |
) |
|
(133 |
) |
|
(506 |
) |
|
|
(115 |
) |
|
(122 |
) |
|
(237 |
) |
|
Other segment income (expenses) - net |
|
(1 |
) |
|
(1 |
) |
|
(6 |
) |
|
(7 |
) |
|
(15 |
) |
|
|
23 |
|
|
(7 |
) |
|
16 |
|
|
Proportional Modified EBITDA of equity-method investments |
|
27 |
|
|
31 |
|
|
41 |
|
|
33 |
|
|
132 |
|
|
|
33 |
|
|
43 |
|
|
76 |
|
|
Modified EBITDA |
|
260 |
|
|
288 |
|
|
337 |
|
|
326 |
|
|
1,211 |
|
|
|
304 |
|
|
312 |
|
|
616 |
|
|
Adjustments |
|
— |
|
|
8 |
|
|
— |
|
|
— |
|
|
8 |
|
|
|
(18 |
) |
|
— |
|
|
(18 |
) |
|
Adjusted EBITDA |
$ |
260 |
|
$ |
296 |
|
$ |
337 |
|
$ |
326 |
|
$ |
1,219 |
|
|
$ |
286 |
|
$ |
312 |
|
$ |
598 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Statistics for Operated Assets |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Gathering and Processing |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Consolidated (2) |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Gathering volumes (Bcf/d) (3) |
|
3.47 |
|
|
5.14 |
|
|
5.20 |
|
|
5.50 |
|
|
5.19 |
|
|
|
5.47 |
|
|
5.51 |
|
|
5.49 |
|
|
Plant inlet natural gas volumes (Bcf/d) |
|
1.13 |
|
|
1.14 |
|
|
1.21 |
|
|
1.10 |
|
|
1.15 |
|
|
|
0.92 |
|
|
1.06 |
|
|
0.99 |
|
|
NGL production (Mbbls/d) |
|
47 |
|
|
49 |
|
|
45 |
|
|
32 |
|
|
43 |
|
|
|
25 |
|
|
40 |
|
|
33 |
|
|
NGL equity sales (Mbbls/d) |
|
17 |
|
|
18 |
|
|
13 |
|
|
7 |
|
|
14 |
|
|
|
6 |
|
|
16 |
|
|
11 |
|
|
Non-consolidated (4) |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Gathering volumes (Bcf/d) |
|
0.28 |
|
|
0.28 |
|
|
0.29 |
|
|
0.29 |
|
|
0.29 |
|
|
|
0.32 |
|
|
0.33 |
|
|
0.32 |
|
|
Plant inlet natural gas volumes (Bcf/d) |
|
0.27 |
|
|
0.28 |
|
|
0.29 |
|
|
0.29 |
|
|
0.28 |
|
|
|
0.32 |
|
|
0.32 |
|
|
0.32 |
|
|
NGL production (Mbbls/d) |
|
31 |
|
|
32 |
|
|
34 |
|
|
32 |
|
|
33 |
|
|
|
37 |
|
|
38 |
|
|
38 |
|
|
NGL and Crude Oil Transportation volumes (Mbbls/d) (5) |
|
118 |
|
|
144 |
|
|
172 |
|
|
151 |
|
|
146 |
|
|
|
153 |
|
|
200 |
|
|
177 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
(1) Excludes certain amounts associated with revenues and operating costs for reimbursable charges. |
|
|||||||||||||||||||||||||
(2) Excludes volumes associated with equity-method investments that are not consolidated in our results. |
|
|||||||||||||||||||||||||
(3) Includes 100% of the volumes associated with the Trace Acquisition gathering assets after the purchase on April 29, 2022. Average volumes were calculated over the period owned. |
|
|||||||||||||||||||||||||
(4) Includes 100% of the volumes associated with operated equity-method investments, including Rocky Mountain Midstream. |
|
|||||||||||||||||||||||||
(5) Includes 100% of the volumes associated with operated equity-method investments, including Overland Pass Pipeline Company and Rocky Mountain Midstream. |
|
Gas & NGL Marketing Services |
|
|||||||||||||||||||||||||
(UNAUDITED) |
|
|||||||||||||||||||||||||
|
2022 |
|
|
2023 |
|
|
||||||||||||||||||||
(Dollars in millions) |
1st Qtr |
2nd Qtr |
3rd Qtr |
4th Qtr |
Year |
|
1st Qtr |
2nd Qtr |
Year |
|
||||||||||||||||
Commodity margins |
$ |
100 |
|
$ |
23 |
|
$ |
39 |
|
$ |
161 |
|
$ |
323 |
|
|
$ |
265 |
|
$ |
(2 |
) |
$ |
263 |
|
|
Other fee revenues |
|
1 |
|
|
— |
|
|
1 |
|
|
1 |
|
|
3 |
|
|
|
1 |
|
|
— |
|
|
1 |
|
|
Net unrealized gain (loss) from derivative instruments |
|
(57 |
) |
|
(288 |
) |
|
5 |
|
|
66 |
|
|
(274 |
) |
|
|
333 |
|
|
94 |
|
|
427 |
|
|
Operating and administrative costs |
|
(31 |
) |
|
(23 |
) |
|
(24 |
) |
|
(18 |
) |
|
(96 |
) |
|
|
(32 |
) |
|
(24 |
) |
|
(56 |
) |
|
Other segment income (expenses) - net |
|
— |
|
|
6 |
|
|
(1 |
) |
|
(1 |
) |
|
4 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
Modified EBITDA |
|
13 |
|
|
(282 |
) |
|
20 |
|
|
209 |
|
|
(40 |
) |
|
|
567 |
|
|
68 |
|
|
635 |
|
|
Adjustments |
|
52 |
|
|
288 |
|
|
18 |
|
|
(60 |
) |
|
298 |
|
|
|
(336 |
) |
|
(84 |
) |
|
(420 |
) |
|
Adjusted EBITDA |
$ |
65 |
|
$ |
6 |
|
$ |
38 |
|
$ |
149 |
|
$ |
258 |
|
|
$ |
231 |
|
$ |
(16 |
) |
$ |
215 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Statistics |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Product Sales Volumes |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Natural Gas (Bcf/d) |
|
7.96 |
|
|
6.66 |
|
|
7.11 |
|
|
7.05 |
|
|
7.20 |
|
|
|
7.24 |
|
|
6.56 |
|
|
6.90 |
|
|
NGLs (Mbbls/d) |
|
246 |
|
|
234 |
|
|
267 |
|
|
254 |
|
|
250 |
|
|
|
234 |
|
|
239 |
|
|
236 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|||||||||||||||||||||||||
(UNAUDITED) |
|
|||||||||||||||||||||||||
|
2022 |
|
|
2023 |
|
|
||||||||||||||||||||
(Dollars in millions) |
1st Qtr |
2nd Qtr |
3rd Qtr |
4th Qtr |
Year |
|
1st Qtr |
2nd Qtr |
Year |
|
||||||||||||||||
Service revenues |
$ |
9 |
|
$ |
7 |
|
$ |
6 |
|
$ |
2 |
|
$ |
24 |
|
|
$ |
3 |
|
$ |
5 |
|
$ |
8 |
|
|
Net realized product sales |
|
96 |
|
|
142 |
|
|
180 |
|
|
184 |
|
|
602 |
|
|
|
120 |
|
|
97 |
|
|
217 |
|
|
Net unrealized gain (loss) from derivative instruments |
|
(66 |
) |
|
47 |
|
|
29 |
|
|
15 |
|
|
25 |
|
|
|
(6 |
) |
|
(11 |
) |
|
(17 |
) |
|
Operating and administrative costs |
|
(33 |
) |
|
(57 |
) |
|
(62 |
) |
|
(59 |
) |
|
(211 |
) |
|
|
(48 |
) |
|
(54 |
) |
|
(102 |
) |
|
Other segment income (expenses) - net |
|
(1 |
) |
|
— |
|
|
(13 |
) |
|
8 |
|
|
(6 |
) |
|
|
5 |
|
|
5 |
|
|
10 |
|
|
Proportional Modified EBITDA of equity-method investments |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
(1 |
) |
|
(1 |
) |
|
Modified EBITDA |
|
5 |
|
|
139 |
|
|
140 |
|
|
150 |
|
|
434 |
|
|
|
74 |
|
|
41 |
|
|
115 |
|
|
Adjustments |
|
66 |
|
|
(47 |
) |
|
(13 |
) |
|
(15 |
) |
|
(9 |
) |
|
|
6 |
|
|
11 |
|
|
17 |
|
|
Adjusted EBITDA |
$ |
71 |
|
$ |
92 |
|
$ |
127 |
|
$ |
135 |
|
$ |
425 |
|
|
$ |
80 |
|
$ |
52 |
|
$ |
132 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Statistics |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net Product Sales Volumes |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Natural Gas (Bcf/d) |
|
0.12 |
|
|
0.19 |
|
|
0.27 |
|
|
0.31 |
|
|
0.22 |
|
|
|
0.26 |
|
|
0.29 |
|
|
0.27 |
|
|
NGLs (Mbbls/d) |
|
7 |
|
|
7 |
|
|
8 |
|
|
7 |
|
|
7 |
|
|
|
3 |
|
|
6 |
|
|
4 |
|
|
Crude Oil (Mbbls/d) |
|
2 |
|
|
3 |
|
|
2 |
|
|
2 |
|
|
2 |
|
|
|
1 |
|
|
3 |
|
|
2 |
|
|
|
|
Capital Expenditures and Investments |
|
|||||||||||||||||||||||||
(UNAUDITED) |
|
|||||||||||||||||||||||||
|
2022 |
|
|
2023 |
|
|||||||||||||||||||||
(Dollars in millions) |
1st Qtr |
2nd Qtr |
3rd Qtr |
4th Qtr |
Year |
|
1st Qtr |
2nd Qtr |
Year |
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Capital expenditures: |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Transmission & Gulf of Mexico |
$ |
125 |
|
$ |
129 |
|
$ |
637 |
|
$ |
358 |
|
$ |
1,249 |
|
|
$ |
205 |
$ |
263 |
|
$ |
468 |
|
|
|
Northeast G&P |
|
40 |
|
|
30 |
|
|
52 |
|
|
92 |
|
|
214 |
|
|
|
99 |
|
74 |
|
|
173 |
|
|
|
West |
|
61 |
|
|
82 |
|
|
94 |
|
|
226 |
|
|
463 |
|
|
|
169 |
|
197 |
|
|
366 |
|
|
|
Other |
|
65 |
|
|
74 |
|
|
58 |
|
|
130 |
|
|
327 |
|
|
|
72 |
|
76 |
|
|
148 |
|
|
|
Total (1) |
$ |
291 |
|
$ |
315 |
|
$ |
841 |
|
$ |
806 |
|
$ |
2,253 |
|
|
$ |
545 |
$ |
610 |
|
$ |
1,155 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Purchases of and contributions to equity-method investments: |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Transmission & Gulf of Mexico |
$ |
16 |
|
$ |
26 |
|
$ |
11 |
|
$ |
17 |
|
$ |
70 |
|
|
$ |
8 |
$ |
18 |
|
$ |
26 |
|
|
|
Northeast G&P |
|
32 |
|
|
18 |
|
|
28 |
|
|
8 |
|
|
86 |
|
|
|
31 |
|
12 |
|
|
43 |
|
|
|
Other |
|
8 |
|
|
— |
|
|
1 |
|
|
1 |
|
|
10 |
|
|
|
— |
|
— |
|
|
— |
|
|
|
Total |
$ |
56 |
|
$ |
44 |
|
$ |
40 |
|
$ |
26 |
|
$ |
166 |
|
|
$ |
39 |
$ |
30 |
|
$ |
69 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Summary: |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Transmission & Gulf of Mexico |
$ |
141 |
|
$ |
155 |
|
$ |
648 |
|
$ |
375 |
|
$ |
1,319 |
|
|
$ |
213 |
$ |
281 |
|
$ |
494 |
|
|
|
Northeast G&P |
|
72 |
|
|
48 |
|
|
80 |
|
|
100 |
|
|
300 |
|
|
|
130 |
|
86 |
|
|
216 |
|
|
|
West |
|
61 |
|
|
82 |
|
|
94 |
|
|
226 |
|
|
463 |
|
|
|
169 |
|
197 |
|
|
366 |
|
|
|
Other |
|
73 |
|
|
74 |
|
|
59 |
|
|
131 |
|
|
337 |
|
|
|
72 |
|
76 |
|
|
148 |
|
|
|
Total |
$ |
347 |
|
$ |
359 |
|
$ |
881 |
|
$ |
832 |
|
$ |
2,419 |
|
|
$ |
584 |
$ |
640 |
|
$ |
1,224 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Capital investments: |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Increases to property, plant, and equipment |
$ |
260 |
|
$ |
382 |
|
$ |
907 |
|
$ |
845 |
|
$ |
2,394 |
|
|
$ |
484 |
$ |
684 |
|
$ |
1,168 |
|
|
|
Purchases of businesses, net of cash acquired |
|
— |
|
|
933 |
|
|
— |
|
|
— |
|
|
933 |
|
|
|
1,056 |
|
(3 |
) |
|
1,053 |
|
|
|
Purchases of and contributions to equity-method investments |
|
56 |
|
|
44 |
|
|
40 |
|
|
26 |
|
|
166 |
|
|
|
39 |
|
30 |
|
|
69 |
|
|
|
Purchases of other long-term investments |
|
— |
|
|
3 |
|
|
3 |
|
|
5 |
|
|
11 |
|
|
|
2 |
|
1 |
|
|
3 |
|
|
|
Total |
$ |
316 |
|
$ |
1,362 |
|
$ |
950 |
|
$ |
876 |
|
$ |
3,504 |
|
|
$ |
1,581 |
$ |
712 |
|
$ |
2,293 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
(1) Increases to property, plant, and equipment |
$ |
260 |
|
$ |
382 |
|
$ |
907 |
|
$ |
845 |
|
$ |
2,394 |
|
|
$ |
484 |
$ |
684 |
|
$ |
1,168 |
|
|
|
Changes in related accounts payable and accrued liabilities |
|
31 |
|
|
(67 |
) |
|
(66 |
) |
|
(39 |
) |
|
(141 |
) |
|
|
61 |
|
(74 |
) |
|
(13 |
) |
|
|
Capital expenditures |
$ |
291 |
|
$ |
315 |
|
$ |
841 |
|
$ |
806 |
|
$ |
2,253 |
|
|
$ |
545 |
$ |
610 |
|
$ |
1,155 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Contributions from noncontrolling interests |
$ |
3 |
|
$ |
5 |
|
$ |
7 |
|
$ |
3 |
|
$ |
18 |
|
|
$ |
3 |
$ |
15 |
|
$ |
18 |
|
|
|
Contributions in aid of construction |
$ |
(3 |
) |
$ |
9 |
|
$ |
2 |
|
$ |
4 |
|
$ |
12 |
|
|
$ |
11 |
$ |
7 |
|
$ |
18 |
|
|
|
Proceeds from disposition of equity-method investments |
$ |
— |
|
$ |
— |
|
$ |
7 |
|
$ |
— |
|
$ |
7 |
|
|
$ |
— |
$ |
— |
|
$ |
— |
|
|
Non-GAAP Measures
This news release and accompanying materials may include certain financial measures – adjusted EBITDA, adjusted income (“earnings”), adjusted earnings per share, available funds from operations and dividend coverage ratio – that are non-GAAP financial measures as defined under the rules of the SEC.
Our segment performance measure, modified EBITDA, is defined as net income (loss) before income (loss) from discontinued operations, income tax expense, net interest expense, equity earnings from equity-method investments, other net investing income, impairments of equity investments and goodwill, depreciation and amortization expense, and accretion expense associated with asset retirement obligations for nonregulated operations. We also add our proportional ownership share (based on ownership interest) of modified EBITDA of equity-method investments.
Adjusted EBITDA further excludes items of income or loss that we characterize as unrepresentative of our ongoing operations. Such items are excluded from net income to determine adjusted income and adjusted earnings per share. Management believes this measure provides investors meaningful insight into results from ongoing operations.
Available funds from operations (AFFO) is defined as cash flow from operations excluding the effect of changes in working capital and certain other changes in noncurrent assets and liabilities, reduced by preferred dividends and net distributions to noncontrolling interests. AFFO may be adjusted to exclude certain items that we characterize as unrepresentative of our ongoing operations.
This news release is accompanied by a reconciliation of these non-GAAP financial measures to their nearest GAAP financial measures. Management uses these financial measures because they are accepted financial indicators used by investors to compare company performance. In addition, management believes that these measures provide investors an enhanced perspective of the operating performance of assets and the cash that the business is generating.
Neither adjusted EBITDA, adjusted income, nor available funds from operations are intended to represent cash flows for the period, nor are they presented as an alternative to net income or cash flow from operations. They should not be considered in isolation or as substitutes for a measure of performance prepared in accordance with United States generally accepted accounting principles.
Reconciliation of Income (Loss) from Continuing Operations Attributable to The Williams Companies, Inc. to Non-GAAP Adjusted Income |
|
|||||||||||||||||||||||||
(UNAUDITED) |
|
|||||||||||||||||||||||||
|
2022 |
|
|
2023 |
|
|
||||||||||||||||||||
(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 |
$ |
379 |
|
$ |
400 |
|
$ |
599 |
|
$ |
668 |
|
$ |
2,046 |
|
|
$ |
926 |
|
$ |
547 |
|
$ |
1,473 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Income (loss) from continuing operations - diluted earnings (loss) per common share (1) |
$ |
.31 |
|
$ |
.33 |
|
$ |
.49 |
|
$ |
.55 |
|
$ |
1.67 |
|
|
$ |
.76 |
|
$ |
.45 |
|
$ |
1.20 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Transmission & Gulf of Mexico |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Loss related to Eminence storage cavern abandonments and monitoring |
$ |
— |
|
$ |
— |
|
$ |
19 |
|
$ |
12 |
|
$ |
31 |
|
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
Regulatory liability charges associated with decrease in Transco’s estimated deferred state income tax rate |
|
— |
|
|
— |
|
|
15 |
|
|
— |
|
|
15 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
Net unrealized (gain) loss from derivative instruments |
|
— |
|
|
— |
|
|
(1 |
) |
|
1 |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
MountainWest acquisition and transition-related costs |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
13 |
|
|
17 |
|
|
30 |
|
|
Total Transmission & Gulf of Mexico adjustments |
|
— |
|
|
— |
|
|
33 |
|
|
13 |
|
|
46 |
|
|
|
13 |
|
|
17 |
|
|
30 |
|
|
West |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Trace acquisition costs |
|
— |
|
|
8 |
|
|
— |
|
|
— |
|
|
8 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
Gain from contract settlement |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
(18 |
) |
|
— |
|
|
(18 |
) |
|
Total West adjustments |
|
— |
|
|
8 |
|
|
— |
|
|
— |
|
|
8 |
|
|
|
(18 |
) |
|
— |
|
|
(18 |
) |
|
Gas & NGL Marketing Services |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Amortization of purchase accounting inventory fair value adjustment |
|
15 |
|
|
— |
|
|
— |
|
|
— |
|
|
15 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
Impact of volatility on NGL linefill transactions |
|
(20 |
) |
|
— |
|
|
23 |
|
|
6 |
|
|
9 |
|
|
|
(3 |
) |
|
10 |
|
|
7 |
|
|
Net unrealized (gain) loss from derivative instruments |
|
57 |
|
|
288 |
|
|
(5 |
) |
|
(66 |
) |
|
274 |
|
|
|
(333 |
) |
|
(94 |
) |
|
(427 |
) |
|
Total Gas & NGL Marketing Services adjustments |
|
52 |
|
|
288 |
|
|
18 |
|
|
(60 |
) |
|
298 |
|
|
|
(336 |
) |
|
(84 |
) |
|
(420 |
) |
|
Other |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Regulatory liability charge associated with decrease in Transco’s estimated deferred state income tax rate |
|
— |
|
|
— |
|
|
5 |
|
|
— |
|
|
5 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
Net unrealized (gain) loss from derivative instruments |
|
66 |
|
|
(47 |
) |
|
(29 |
) |
|
(15 |
) |
|
(25 |
) |
|
|
6 |
|
|
11 |
|
|
17 |
|
|
Accrual for loss contingencies |
|
— |
|
|
— |
|
|
11 |
|
|
— |
|
|
11 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
Total Other adjustments |
|
66 |
|
|
(47 |
) |
|
(13 |
) |
|
(15 |
) |
|
(9 |
) |
|
|
6 |
|
|
11 |
|
|
17 |
|
|
Adjustments included in Modified EBITDA |
|
118 |
|
|
249 |
|
|
38 |
|
|
(62 |
) |
|
343 |
|
|
|
(335 |
) |
|
(56 |
) |
|
(391 |
) |
|
Adjustments below Modified EBITDA |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Amortization of intangible assets from Sequent acquisition |
|
42 |
|
|
41 |
|
|
42 |
|
|
42 |
|
|
167 |
|
|
|
15 |
|
|
14 |
|
|
29 |
|
|
Depreciation adjustment related to Eminence storage cavern abandonments |
|
— |
|
|
— |
|
|
(1 |
) |
|
— |
|
|
(1 |
) |
|
|
— |
|
|
— |
|
|
— |
|
|
|
|
42 |
|
|
41 |
|
|
41 |
|
|
42 |
|
|
166 |
|
|
|
15 |
|
|
14 |
|
|
29 |
|
|
Total adjustments |
|
160 |
|
|
290 |
|
|
79 |
|
|
(20 |
) |
|
509 |
|
|
|
(320 |
) |
|
(42 |
) |
|
(362 |
) |
|
Less tax effect for above items |
|
(40 |
) |
|
(72 |
) |
|
(17 |
) |
|
5 |
|
|
(124 |
) |
|
|
78 |
|
|
10 |
|
|
88 |
|
|
Adjustments for tax-related items (2) |
|
— |
|
|
(134 |
) |
|
(69 |
) |
|
— |
|
|
(203 |
) |
|
|
— |
|
|
— |
|
|
— |
|
|
Adjusted income from continuing operations available to common stockholders |
$ |
499 |
|
$ |
484 |
|
$ |
592 |
|
$ |
653 |
|
$ |
2,228 |
|
|
$ |
684 |
|
$ |
515 |
|
$ |
1,199 |
|
|
Adjusted income from continuing operations - diluted earnings per common share (1) |
$ |
.41 |
|
$ |
.40 |
|
$ |
.48 |
|
$ |
.53 |
|
$ |
1.82 |
|
|
$ |
.56 |
|
$ |
.42 |
|
$ |
.98 |
|
|
Weighted-average shares - diluted (thousands) |
|
1,221,279 |
|
|
1,222,694 |
|
|
1,222,472 |
|
|
1,224,212 |
|
|
1,222,672 |
|
|
|
1,225,781 |
|
|
1,219,915 |
|
|
1,223,429 |
|
|
(1) 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. |
|
|||||||||||||||||||||||||
(2) The second quarter of 2022 includes adjustments for the reversal of valuation allowance due to the expected utilization of certain deferred income tax assets and previously unrecognized tax benefits from the resolution of certain federal income tax audits. The third quarter of 2022 includes an unfavorable adjustment to reverse the net benefit primarily associated with a significant decrease in our estimated deferred state income tax rate, partially offset by an unfavorable revision to a state net operating loss carryforward. |
|
Reconciliation of "Net Income (Loss)" to “Modified EBITDA” and Non-GAAP “Adjusted EBITDA” |
|
|||||||||||||||||||||||||
(UNAUDITED) |
|
|||||||||||||||||||||||||
|
2022 |
|
|
2023 |
|
|
||||||||||||||||||||
(Dollars in millions) |
1st Qtr |
2nd Qtr |
3rd Qtr |
4th Qtr |
Year |
|
1st Qtr |
2nd Qtr |
Year |
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net income (loss) |
$ |
392 |
|
$ |
407 |
|
$ |
621 |
|
$ |
697 |
|
$ |
2,117 |
|
|
$ |
957 |
|
$ |
494 |
|
$ |
1,451 |
|
|
Provision (benefit) for income taxes |
|
118 |
|
|
(45 |
) |
|
96 |
|
|
256 |
|
|
425 |
|
|
|
284 |
|
|
175 |
|
|
459 |
|
|
Interest expense |
|
286 |
|
|
281 |
|
|
291 |
|
|
289 |
|
|
1,147 |
|
|
|
294 |
|
|
306 |
|
|
600 |
|
|
Equity (earnings) losses |
|
(136 |
) |
|
(163 |
) |
|
(193 |
) |
|
(145 |
) |
|
(637 |
) |
|
|
(147 |
) |
|
(160 |
) |
|
(307 |
) |
|
Other investing (income) loss - net |
|
(1 |
) |
|
(2 |
) |
|
(1 |
) |
|
(12 |
) |
|
(16 |
) |
|
|
(8 |
) |
|
(13 |
) |
|
(21 |
) |
|
Proportional Modified EBITDA of equity-method investments |
|
225 |
|
|
250 |
|
|
273 |
|
|
231 |
|
|
979 |
|
|
|
229 |
|
|
249 |
|
|
478 |
|
|
Depreciation and amortization expenses |
|
498 |
|
|
506 |
|
|
500 |
|
|
505 |
|
|
2,009 |
|
|
|
506 |
|
|
515 |
|
|
1,021 |
|
|
Accretion expense associated with asset retirement obligations for nonregulated operations |
|
11 |
|
|
13 |
|
|
12 |
|
|
15 |
|
|
51 |
|
|
|
15 |
|
|
14 |
|
|
29 |
|
|
(Income) loss from discontinued operations, net of tax |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
87 |
|
|
87 |
|
|
Modified EBITDA |
$ |
1,393 |
|
$ |
1,247 |
|
$ |
1,599 |
|
$ |
1,836 |
|
$ |
6,075 |
|
|
$ |
2,130 |
|
$ |
1,667 |
|
$ |
3,797 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Transmission & Gulf of Mexico |
$ |
697 |
|
$ |
652 |
|
$ |
638 |
|
$ |
687 |
|
$ |
2,674 |
|
|
$ |
715 |
|
$ |
731 |
|
$ |
1,446 |
|
|
Northeast G&P |
|
418 |
|
|
450 |
|
|
464 |
|
|
464 |
|
|
1,796 |
|
|
|
470 |
|
|
515 |
|
|
985 |
|
|
West |
|
260 |
|
|
288 |
|
|
337 |
|
|
326 |
|
|
1,211 |
|
|
|
304 |
|
|
312 |
|
|
616 |
|
|
Gas & NGL Marketing Services |
|
13 |
|
|
(282 |
) |
|
20 |
|
|
209 |
|
|
(40 |
) |
|
|
567 |
|
|
68 |
|
|
635 |
|
|
Other |
|
5 |
|
|
139 |
|
|
140 |
|
|
150 |
|
|
434 |
|
|
|
74 |
|
|
41 |
|
|
115 |
|
|
Total Modified EBITDA |
$ |
1,393 |
|
$ |
1,247 |
|
$ |
1,599 |
|
$ |
1,836 |
|
$ |
6,075 |
|
|
$ |
2,130 |
|
$ |
1,667 |
|
$ |
3,797 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Adjustments (1): |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Transmission & Gulf of Mexico |
$ |
— |
|
$ |
— |
|
$ |
33 |
|
$ |
13 |
|
$ |
46 |
|
|
$ |
13 |
|
$ |
17 |
|
$ |
30 |
|
|
West |
|
— |
|
|
8 |
|
|
— |
|
|
— |
|
|
8 |
|
|
|
(18 |
) |
|
— |
|
|
(18 |
) |
|
Gas & NGL Marketing Services |
|
52 |
|
|
288 |
|
|
18 |
|
|
(60 |
) |
|
298 |
|
|
|
(336 |
) |
|
(84 |
) |
|
(420 |
) |
|
Other |
|
66 |
|
|
(47 |
) |
|
(13 |
) |
|
(15 |
) |
|
(9 |
) |
|
|
6 |
|
|
11 |
|
|
17 |
|
|
Total Adjustments |
$ |
118 |
|
$ |
249 |
|
$ |
38 |
|
$ |
(62 |
) |
$ |
343 |
|
|
$ |
(335 |
) |
$ |
(56 |
) |
$ |
(391 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Transmission & Gulf of Mexico |
$ |
697 |
|
$ |
652 |
|
$ |
671 |
|
$ |
700 |
|
$ |
2,720 |
|
|
$ |
728 |
|
$ |
748 |
|
$ |
1,476 |
|
|
Northeast G&P |
|
418 |
|
|
450 |
|
|
464 |
|
|
464 |
|
|
1,796 |
|
|
|
470 |
|
|
515 |
|
|
985 |
|
|
West |
|
260 |
|
|
296 |
|
|
337 |
|
|
326 |
|
|
1,219 |
|
|
|
286 |
|
|
312 |
|
|
598 |
|
|
Gas & NGL Marketing Services |
|
65 |
|
|
6 |
|
|
38 |
|
|
149 |
|
|
258 |
|
|
|
231 |
|
|
(16 |
) |
|
215 |
|
|
Other |
|
71 |
|
|
92 |
|
|
127 |
|
|
135 |
|
|
425 |
|
|
|
80 |
|
|
52 |
|
|
132 |
|
|
Total Adjusted EBITDA |
$ |
1,511 |
|
$ |
1,496 |
|
$ |
1,637 |
|
$ |
1,774 |
|
$ |
6,418 |
|
|
$ |
1,795 |
|
$ |
1,611 |
|
$ |
3,406 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
(1) Adjustments by segment are detailed in the "Reconciliation of Income (Loss) from Continuing Operations Attributable to The Williams Companies, Inc. to Non-GAAP Adjusted Income," which is also included in these materials. |
|
Reconciliation of Cash Flow from Operating Activities to Available Funds from Operations (AFFO) |
|
|||||||||||||||||||||||||
(UNAUDITED) |
|
|||||||||||||||||||||||||
|
2022 |
|
|
2023 |
|
|
||||||||||||||||||||
(Dollars in millions, except coverage ratios) |
1st Qtr |
2nd Qtr |
3rd Qtr |
4th Qtr |
Year |
|
1st Qtr |
2nd Qtr |
Year |
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
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The Williams Companies, Inc. |
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Reconciliation of GAAP "Net cash provided (used) by operating activities" to Non-GAAP "Available funds from operations" |
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Net cash provided (used) by operating activities |
$ |
1,082 |
|
$ |
1,098 |
|
$ |
1,490 |
|
$ |
1,219 |
|
$ |
4,889 |
|
|
$ |
1,514 |
|
$ |
1,377 |
|
$ |
2,891 |
|
|
Exclude: Cash (provided) used by changes in: |
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Accounts receivable |
|
3 |
|
|
794 |
|
|
(125 |
) |
|
61 |
|
|
733 |
|
|
|
(1,269 |
) |
|
(154 |
) |
|
(1,423 |
) |
|
Inventories, including write-downs |
|
(178 |
) |
|
177 |
|
|
77 |
|
|
(127 |
) |
|
(51 |
) |
|
|
(45 |
) |
|
(19 |
) |
|
(64 |
) |
|
Other current assets and deferred charges |
|
65 |
|
|
(50 |
) |
|
47 |
|
|
(29 |
) |
|
33 |
|
|
|
4 |
|
|
(28 |
) |
|
(24 |
) |
|
Accounts payable |
|
138 |
|
|
(828 |
) |
|
(53 |
) |
|
333 |
|
|
(410 |
) |
|
|
1,017 |
|
|
203 |
|
|
1,220 |
|
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Accrued and other current liabilities |
|
149 |
|
|
(125 |
) |