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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 operates refineries, ethanol plants, and terminals. Its interstate gas pipeline and gathering & processing operations span the US, including assets in the Gulf of Mexico, the Rockies, the Pacific Northwest, and the Eastern Seaboard. 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

Essentially all business, and all revenue, originates with its primary subsidiary, Williams Partners. The Williams Companies ventured into the Canadian oil sands business in Alberta in 2015 and 2016 and it had been a distinct reportable segment, but the endeavor didn't pan out and all assets were divested in late 2016.

Williams Partners' addresses three primary markets. Gas Pipelines is comprised of the Transco and Northwest Pipeline as well as joint-venture interests in other pipelines. Combined, this business owns and operates nearly 14,000 miles of pipelines with annual throughput of more than 4,000 trillion Btus of natural gas. Its Midstream business is one of the nation's largest natural gas gatherers and processors, taking raw natural gas and crude oil from producing fields to consumers. The third business market is Gathering, Processing, and Treating, which receives natural gas from producers' wells, removes contaminants, and prepares it for sale. It also extracts NGLs which it sells to downstream customers who use them to create ethane, propane, and other petrochemical building blocks.

Geographic Reach

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

Its operations span a number of US states, with major centers in the Four Corners (the meeting place of New Mexico, Colorado, Arizona, and Utah), the Texas Gulf Coast (including in the waters of the Gulf of Mexico), and the Marcellus Shale region of Ohio, Pennsylvania, and West Virginia. Its Transco pipeline runs from the Northeast US to the Texas Gulf coast and its Northwest pipeline goes from Washington and Oregon to the Colorado Rockies.

Sales and Marketing

Williams' gas pipeline customers are public utilities and municipalities that provide service to residential, commercial, industrial and electric generation end users. Shippers on the company's interstate systems include public utilities, municipalities, intrastate pipelines, direct industrial users, electrical generators, gas marketers and producers.

Financial Performance

Although revenue in the past several years was generally around $7.5 billion, The Williams Companies earnings were erratic. In 2014, earnings peaked at $2.1 billion after jumping between $375 million and $850 million in prior years, and then plummeted in 2015 with a loss exceeding $570 million.

For 2016, revenue fell 2% to $7.5 billion. While new projects brought online in 2016 added to revenue, lower volumes in the Barnett Shale and Anadarko basins decreased revenue from gathering, processing, and fractionation operations. Higher production at its Geismar olefin plant (since sold off) could not overcome lower sales and per-unit prices from its other olefin operations.

Earnings in 2016 ticked up 25% to a loss of $424 million, compared to the $571 million loss in 2015. While asset impairment and a higher expense margin took a bite out of earnings, as they did in 2015, both had lesser negative effects. Additionally, The Williams Companies took a loss on the sale of its Canadian oil sands operations.

Cash on hand at the end of 2016 was $170 million, an increase of $70 million from 2015. Investing activities spent a combined $410 million, mostly on capital expenditures, offset by a $1.0 billion gain on the sale of its Canadian oil sands operations. Cash from operations contributed $3.6 billion despite the earnings loss (mostly through adjustments for depreciation, amortization, and impairments). Financing activities used $3.1 billion, partly to pay out stockholder dividends and partly for debt repayment.

Strategy

The Williams Companies, following the unsuccessful bid to be acquired in 2015, subsequently made several financially-focused moves to shore up its balance sheet and improve credit quality. It reworked its relationship with Williams Partners L.P., rescinding its rights to economic distributions in favor of buying additional equity in the L.P. This action injected cash into the L.P. and now allows it to keep more of its earnings. As well, The Williams Companies divested two major operations, its Canadian oil sands for $1.0 billion and its Geismar olefins facility for $2.0 billion, although the company kept sizably less cash after paying off associated debt and taking impairment hits.

Aside from financial moves, The Williams Companies is investing approximately $2.5 billion in capital expenditures in 2017. About $1.5 billion is targeted for expansions to its Transco and other interstate pipeline. In 2016 and 2017 expansion projects grew Transco capacity by nearly 25% through the company’s Atlantic Sunrise, Dalton, Hillabee, and Gulf Trace projects. More are on the docket for late 2017, such as its New York Bay Expansion and the Virginia Southside II project. The remaining capital is positioning the company’s gathering and processing systems for future growth in the Northeast region, where the largest remaining undrilled gas reserves reside in the US. In total, the company is pursuing roughly 20 demand-driven expansion opportunities all along the US Gulf Coast and Atlantic states.

The Williams Companies also sold $177 million worth of pipeline assets to Easton Energy LLC, a Houston based midstream company. The pipelines are used to transport natural gas liquids from various supply sources to petrochemical consumers in Texas and Louisiana markets. 

The Williams Companies Inc

1 WILLIAMS CTR
Tulsa, OK 74172-0140
Phone: 1 (918) 573-2000

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): 5,322

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