Williams Reports Third Quarter 2018 Financial Results
Press Release
TULSA, Okla.–Williams (NYSE: WMB) today announced its financial results for the three and nine months ended Sept. 30, 2018.
Highlights
- 3Q 2018 Net Income Attributable to Williams of $129 Million, Up $96 Million over 3Q 2017
- 3Q Cash Flow From Operations of $746 Million, Up $41 Million over 3Q 2017
- 3Q 2018 Adjusted income per share of $0.24 – Up 60% over 3Q 2017; YTD Adjusted income per share of $0.61 – Up 45% over YTD, 2017
- 3Q 2018 Adjusted EBITDA of $1.196 Billion; Up $83 Million or 7.5% over 3Q 2017
- 3Q 2018 DCF of $768 Million; Up $165 Million or 27% over 3Q 2017
- 3Q 2018 Coverage Ratio is 1.86
- Williams’ Acquisition of Williams Partners Closed on Aug. 10, 2018
- Sale of Four Corners Area Business for $1.125 Billion Closed on Oct. 1, 2018
- Acquisition of Discovery DJ Services in Joint Venture with KKR Closed on Aug. 3, 2018
- Atlantic Sunrise Project Placed into Full Service on Oct. 6, 2018
- Transco’s Rate Case with Increase in Rates Filed on Aug. 31, 2018
CEO Perspective
Alan Armstrong, president and chief executive officer, made the following comments:
“This quarter’s strong execution and results highlight why we are so bullish on the future. Williams has positioned itself as the leading natural gas infrastructure company, now operating as a simplified and focused C-Corp, with an irreplaceable suite of assets, investment grade credit ratings, as well as strong, steady, growing earnings and EBITDA. We continue to enjoy a backlog of attractive investment opportunities, and third-quarter 2018 results reflected continued steady and predictable increases in each of our key financial metrics. With our strong year-to-date financial and operational performance, we see our full-year results trending toward the upper end of our financial guidance for 2018.
“Higher volumes in the Northeast and Transco expansion projects brought online in our Atlantic-Gulf segment helped significantly increase service revenues this quarter. Looking forward, the Atlantic Sunrise project and the Gulf Connector project will drive even higher growth in fourth-quarter 2018 and 2019 on Transco. Importantly, Atlantic Sunrise has opened up new markets for Marcellus producers, and that is now driving accelerated growth in our Northeast G&P business segment. This growth will continue for many years, and immediately upon the heels of Atlantic Sunrise, we have announced another fully-contracted expansion out of the Northeast Pennsylvania area to serve growing markets with Transco’s Leidy South Expansion. In addition to the project execution on our pipelines, we are rapidly expanding our gathering systems and plants in the Marcellus, Utica, Haynesville, Powder River, DJ and Wamsutter Basins.”
Armstrong added, “I’m pleased with the high level of execution both operationally and at the corporate transaction level. During the period, we closed on the Williams acquisition of Williams Partners, executed an agreement to sell the Four Corners Area business and are now successfully operating the DJ Basin assets that were a part of our joint-venture acquisition with KKR.”
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