Williams(WMB)2024-11-06 21:18Financial Performance - Net income attributable to The Williams Companies, Inc. for the nine months ended September 30, 2024, decreased by $302 million compared to the same period in 2023[160]. - Total revenues for the nine months ended September 30, 2024, decreased by 4% to $7,760 million from $8,123 million in the same period in 2023[185]. - Service revenues for the three months ended September 30, 2024, increased by 8% to $1,911 million compared to $1,770 million for the same period in 2023[185]. - Operating income for the three months ended September 30, 2024, was $838 million, down from $994 million in the same period in 2023[185]. - Net income attributable to The Williams Companies, Inc. for the three months ended September 30, 2024, increased by 8% to $706 million compared to $654 million in the same period in 2023[185]. - The net cash provided by operating activities for the nine months ended September 30, 2024, was $3.756 billion, a decrease from $4.125 billion in the same period of 2023[261][263]. Capital Expenditures and Investments - Growth capital and investment expenditures for 2024 are expected to range from $1.45 billion to $1.75 billion, excluding acquisitions[169]. - The company recognized a $127 million gain from acquiring the remaining 40% interest in Discovery, consolidating it into their financials[165]. - The company completed the Gulf Coast Storage Acquisition for $1.95 billion on January 3, 2024[250]. - The company plans to place the Deepwater Whale Project into service in Q4 2024, expanding offshore infrastructure with a new 125-mile oil pipeline[173]. - The company plans to increase natural gas gathering capacity by 1.8 Bcf/d through the Louisiana Energy Gateway project, expected to be operational in the second half of 2025[183]. Revenue and Segment Performance - Transmission & Gulf of Mexico segment revenues for the three months ended September 30, 2024, were $1,170 million, up from $1,053 million in the same period of 2023, representing a 11.1% increase[210]. - Service revenues in the Transmission & Gulf of Mexico segment increased by $57 million due to the acquisition of Gulf Coast Storage assets[211]. - Northeast G&P Modified EBITDA for the three months ended September 30, 2024, was $476 million, compared to $454 million in the same period of 2023, reflecting a 4.8% increase[218]. - West Modified EBITDA for the three months ended September 30, 2024, was $323 million, compared to $315 million in the same period of 2023, indicating a 2.5% increase[229]. - Service revenues in the West segment increased to $663 million for the three months ended September 30, 2024, from $533 million in the same period of 2023, a 24.4% increase[227]. - Service revenues increased by $216 million in the DJ Basin region due to the DJ Basin Acquisitions in November 2023[233]. Expenses and Financial Obligations - Operating and maintenance expenses increased by 11% to $580 million for the three months ended September 30, 2024, compared to $522 million in the same period in 2023[185]. - Interest expense increased by 8% to $338 million for the three months ended September 30, 2024, compared to $314 million in the same period in 2023[185]. - Interest expense increased due to 2023 and 2024 debt issuances, partially offset by debt retirements[206]. - Payments of long-term debt were $2.286 billion for the nine months ended September 30, 2024, compared to $21 million in 2023[261]. - As of September 30, 2024, the company has approximately $2.284 billion of long-term debt due within one year[252]. - As of September 30, 2024, the company has approximately $24.8 billion of long-term debt due after one year[254]. Risk Management and Compliance - The company expects to remain in compliance with the financial covenants associated with its credit facility for the reporting period ending September 30, 2024[255]. - The Value at Risk (VaR) associated with the integrated natural gas trading operations was $4 million at September 30, 2024, down from $9 million at December 31, 2023[271]. - The company maintains a relatively small risk exposure with total buy volume close to sell volume[271]. - The VaR metrics indicate a stable risk management approach in commodity trading operations[271]. - The company actively monitors open commodity marketing positions to mitigate risks associated with natural gas pricing[271]. Dividends and Shareholder Returns - The company increased its regular quarterly cash dividend by approximately 6.1% from $0.4475 per share in 2023 to $0.4750 per share in the first three quarters of 2024[256].