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TULSA, Okla.--(BUSINESS WIRE)--Sep 29, 2022--
Williams (NYSE: WMB) today announced that based on expected strong third-quarter performance and expectations for the fourth quarter, and despite recent market weakness, the company anticipates its full-year Adjusted EBITDA will be near the high end of its previously announced guidance range of $6.1 to $6.4 billion.
““At Williams, we continue to execute on our natural gas focused strategy, which is delivering in the current environment and will continue to deliver substantial growth for the long-term,” said Alan Armstrong, president and CEO. “We have built a business that is steady, predictable and durable through market cycles. As with prior volatile markets, Williams’ performance remains resilient and is well positioned to thrive through the current macro-economic risks including inflation, higher interest rates and a potential recession.”
Non-GAAP Measures
This news release refers to Adjusted EBITDA, which is a non-GAAP financial measure 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. Management believes this measure provides investors meaningful insight into results from ongoing operations.
Reconciliation of Net Income (Loss) to Modified EBITDA and Non-GAAP Adjusted EBITDA
2022 Guidance
(Dollars in millions)
Low
Mid
High
Net income (loss)
$
1,754
$
1,854
$
1,954
Provision (benefit) for income taxes
400
450
500
Interest expense
1,145
Equity (earnings) losses
(610
)
Proportional Modified EBITDA of equity-method investments
960
Depreciation and amortization expenses and accretion for asset
retirement obligations associated with nonregulated operations
2,075
Other
9
Modified EBITDA
$
5,733
$
5,883
$
6,033
EBITDA Adjustments
367
Adjusted EBITDA
$
6,100
$
6,250
$
6,400
Forward-Looking Statements
The reports, filings, and other public announcements of The Williams Companies, Inc. (Williams) may contain or incorporate by reference statements that do not directly or exclusively relate to historical facts. Such statements are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended (Exchange Act). These forward-looking statements relate to anticipated financial performance, management’s plans and objectives for future operations, business prospects, outcome of regulatory proceedings, market conditions, and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995.
All statements, other than statements of historical facts, included in this release that address activities, events, or developments that we expect, believe, or anticipate will exist or may occur in the future, are forward-looking statements. Forward-looking statements can be identified by various forms of words such as “anticipates,” “believes,” “seeks,” “could,” “may,” “should,” “continues,” “estimates,” “expects,” “forecasts,” “intends,” “might,” “goals,” “objectives,” “targets,” “planned,” “potential,” “projects,” “scheduled,” “will,” “assumes,” “guidance,” “outlook,” “in-service date,” or other similar expressions. These forward-looking statements are based on management’s beliefs and assumptions and on information currently available to management and include, among others, statements regarding our earnings guidance and expected third and fourth quarter results.
Forward-looking statements are based on numerous assumptions, uncertainties, and risks that could cause future events or results to be materially different from those stated or implied in this release. Many of the factors that will determine these results are beyond our ability to control or predict. Specific factors that could cause actual results to differ from results contemplated by the forward-looking statements include, among others, the following:
Given the uncertainties and risk factors that could cause our actual results to differ materially from those contained in any forward-looking statement, we caution investors not to unduly rely on our forward-looking statements. We disclaim any obligations to and do not intend to update the above list or announce publicly the result of any revisions to any of the forward-looking statements to reflect future events or developments.
In addition to causing our actual results to differ, the factors listed above and referred to below may cause our intentions to change from those statements of intention set forth in this release. Such changes in our intentions may also cause our results to differ. We may change our intentions, at any time and without notice, based upon changes in such factors, our assumptions, or otherwise.
Because forward-looking statements involve risks and uncertainties, we caution that there are important factors, in addition to those listed above, that may cause actual results to differ materially from those contained in the forward-looking statements. For a detailed discussion of those factors, see (a) Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the SEC on February 28, 2022, and (b) Part II, Item 1A. Risk Factors in our Quarterly Report on Form 10-Q for the period ended March 31, 2022 and subsequent Quarterly Reports on Form 10-Q.
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 30,000 miles of pipelines system wide – including Transco, the nation’s largest volume and fastest growing pipeline – and handles approximately 30 percent 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, next generation gas and other innovations at www.williams.com.
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CONTACT: MEDIA:
media@williams.com
(800) 945-8723
INVESTOR CONTACT:
Danilo Juvane
(918) 573-5075
Grace Scott
(918) 573-1092
KEYWORD: OKLAHOMA UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: ENERGY OTHER ENERGY UTILITIES OIL/GAS
SOURCE: Williams
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PUB: 09/29/2022 10:57 AM/DISC: 09/29/2022 10:57 AM
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