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About The Williams Companies Inc

The Williams Companies are naturals for moving gas around the US. Williams gathers, stores, and processes natural gas and natural gas liquids (NGLs). It also operates stabilization capacity, fractionation facility, storage capacity, and other ancillary assets, including loading and terminals. The company's interstate gas pipeline and gathering & processing operations span the US, including assets in the Transmission & Gulf of Mexico, Northeast G&P, and West. The Williams Companies agreed to be bought by Energy Transfer Equity (ETE) but the deal fell through in 2016 when ETE backed out, citing the weak energy market.

Operations

The company operate its business through three reportable segment: Transmission & Gulf of Mexico, Northeast G&P, and West.

Transmission & Gulf of Mexico is comprised of interstate natural gas pipelines, Transco and Northwest Pipeline, as well as natural gas gathering, processing, and treating assets and crude oil production handling and transportation assets in the Gulf Coast region.

Northeast G&P is comprised of midstream gathering, processing, and fractionation businesses in the Marcellus Shale region primarily in Pennsylvania, New York, and the Utica Shale region of eastern Ohio.

West is comprised of gas gathering, processing, and treating operations in the Rocky Mountain region of Colorado and Wyoming, the Barnett Shale region of north-central Texas, the Eagle Ford Shale region of south Texas, the Haynesville Shale region of northwest Louisiana, and the Mid-Continent region which includes the Anadarko, Arkoma, and Permian basins. This segment also includes NGL and natural gas marketing business, storage facilities, an undivided 50 percent interest in an NGL fractionator, a 50 percent equity-method investment in OPPL, a 50 percent equity-method investment in RMM, and a 15 percent equity-method investment in Brazos Permian II.

Geographic Reach

Williams' headquarters is in Tulsa, Oklahoma and has major offices in Salt Lake City, Utah; Houston, Texas; and Pittsburgh, Pennsylvania.

The company's operations span a number of US states: with major centers in the four corners (the meeting place of New Mexico and Colorado); the Texas Gulf Coast, Louisiana, Mississippi, Alabama, the Utica Shale region of eastern Ohio, Marcellus Shale of Pennsylvania, and New York. Its Transco pipeline operates in Texas, Louisiana, Mississippi, and the Gulf of Mexico through Alabama, Georgia, South Carolina, North Carolina, Virginia, Maryland, Delaware, Pennsylvania, New Jersey to the New York City metropolitan area and its Northwest pipeline goes from San Juan basin in northwestern New Mexico and southwestern Colorado through Colorado, Utah, Wyoming, Idaho, Oregon, and Washington to a point on the Canadian border near Sumas, Washington.

Sales and Marketing

The company market gas and NGL products to a wide range of users in the energy and petrochemical industries. The NGL marketing business transports and markets equity NGLs from the production at processing plants, and also markets NGLs on behalf of third-party NGL producers, including some of fee-based processing customers.

Williams interstate natural gas pipelines transport and store natural gas for a broad mix of customers, including local natural gas distribution companies, public utilities, municipalities, direct industrial users, electric power generators, natural gas marketers and producers. The company have firm transportation and storage contracts that are generally long-term contracts. Additionally, the company offer storage services and interruptible transportation services under shorter-term agreements. Transco's and Northwest Pipeline's three largest customers in 2019 accounted for approximately 28% and 48% of the company's total revenue, respectively.

Financial Performance

Although revenue in the past several years was generally around $7.5 billion, it has increased in recent years. Revenue grew by 11% between 2015 and 2019, while net income has fluctuated in the same period. In the years 2015, 2016, and 2018, the company reported net losses.

Revenue fell by 6% to $8.2 billion in 2019, compared to $8.7 billion in the prior year. Service revenues – commodity consideration decreased due to lower NGL prices and lower volumes primarily due to the absence of the company's former Four Corners area operations.

In 2019, earnings considerably improved by $1.005 billion to $850 million; it had a net loss of $155 million the prior year. This increase reflects a $1.5 billion decrease in impairment of certain assets, a $431 million increase in service revenues primarily associated with Transco expansion projects, the consolidation of UEOM beginning March 2019, and growth in Northeast G&P volumes, partially offset by lower revenues from its Barnett Shale operations, as well as the absence of revenues from operations sold or deconsolidated during 2018.

Cash on hand at the end of 2019 was $289 million, an increase of $121 million from 2018. Cash from operations contributed $3.7 billion to the coffers. Investing activities spent a combined $2.8 billion, mostly on capital expenditures and purchases of businesses, offset by a $485 gain on the sale of its 50% equity-method interest in Jackalope. Financing activities used $745 million, mostly to pay dividends and long-term debt payment.

Strategy

The Williams Companies' strategy is to provide large-scale energy infrastructure designed to maximize the opportunities created by the vast supply of natural gas and natural gas products that exists in the United States. The company accomplishes this by connecting the growing demand for cleaner fuels and feedstocks with its major positions in the premier natural gas and natural gas products supply basins. It continues to maintain a strong commitment to safety, environmental stewardship, operational excellence, and customer satisfaction.

The company's growth capital and investment expenditures in 2020 are expected to be in a range from $1.1 billion to $1.3 billion Growth capital spending in 2020 primarily includes Transco expansions, all of which are fully contracted with firm transportation agreements, and its Bluestem NGL pipeline project in the Mid-Continent region. In addition to growth capital and investment expenditures, it also remains committed to projects that maintain its assets for safe and reliable operations, as well as projects that meet legal, regulatory, and/or contractual commitments.

Mergers and Acquisitions

In early-2019, the company acquired the remaining 38% interest in UEOM. Total consideration paid was over $740 million. As a result of acquiring this additional interest, the company obtained control of and now consolidate UEOM.

Company Background

Williams were founded in 1908, originally incorporated under the laws of the state of Nevada in 1949 and reincorporated under the laws of the state of Delaware in 1987.

In 1957, The company traded publicly as an over-the-counter stock.

In 1998, Williams merged with MAPCO, whose assets happened to include a pipeline that Williams built in 1960, during the heyday of its construction business. Williams began investing to grow its business in the Marcellus producing area of the U.S. Northeast in 2009.

The Williams Companies Inc

1 Williams Ctr
Tulsa, OK 74172-0140
Phone: 1 (918) 573-2000

Firm Stats

Employer Type: Publicly Owned
Stock Symbol: WMB
Stock Exchange: , NYSE
President and CEO: Alan S. Armstrong
Chairman: Stephen W. Bergstrom
EVP and COO: Micheal G. Dunn
Employees (This Location): 1,819
Employees (All Locations): 4,812

Major Office Locations

Tulsa, OK

Other Locations

Anchorage, AK
Billingsley, AL
Theodore, AL
Wadley, AL
Los Osos, CA
Ojai, CA
Durango, CO
Fort Collins, CO
Rifle, CO
Comer, GA
Duluth, GA
Monroe, GA
Newnan, GA
Iowa City, IA
Moville, IA
Georgetown, ID
Meridian, ID
Pocatello, ID
Elmwood, IL
Oaktown, IN
Williamsburg, IN
Mcpherson, KS
Benton, KY
Slaughters, KY
Baton Rouge, LA
Gibson, LA
Greensburg, LA
Jackson, LA
Larose, LA
Ragley, LA
Rayne, LA
Schriever, LA
Washington, LA
Ellicott City, MD
Byhalia, MS
Heidelberg, MS
Jackson, MS
Lake Cormorant, MS
Seminary, MS
Charlotte, NC
Grover, NC
Lexington, NC
Mount Mourne, NC
Reidsville, NC
Greenwood, NE
Branchburg, NJ
Carlstadt, NJ
Chesterfield, NJ
Linden, NJ
Mount Laurel, NJ
Bloomfield, NM
San Ysidro, NM
Oklahoma City, OK
Eugene, OR
Oregon City, OR
Austin, PA
Bear Creek, PA
Benton, PA
Delta, PA
Jersey Shore, PA
Lancaster, PA
Malvern, PA
Pittsburgh, PA
Orangeburg, SC
Spartanburg, SC
Nashville, TN
Bay City, TX
Cleburne, TX
Corpus Christi, TX
Falfurrias, TX
Houston, TX
Markham, TX
Red Oak, TX
Seminole, TX
Sour Lake, TX
Fillmore, UT
La Sal, UT
Salt Lake City, UT
Vernal, UT
Appomattox, VA
Charlottesville, VA
Chatham, VA
Evington, VA
Manassas, VA
Scottsville, VA
South Hill, VA
Unionville, VA
Battle Ground, WA
Lake Tapps, WA
Lyle, WA
Mccleary, WA
Pasco, WA
Plymouth, WA
Redmond, WA
Snohomish, WA
Spokane, WA
Sumas, WA
Washougal, WA
Winlock, WA
Janesville, WI
Big Piney, WY
Green River, WY
Kemmerer, WY
Opal, WY
Rock Springs, WY
Fort Mcmurray, Canada
Winnipeg, Canada