Business Wire News

Williams Reports Strong First-Quarter Results and Record Volumes; Raises 2021 Guidance

TULSA, Okla.--(BUSINESS WIRE)--Williams (NYSE: WMB) today announced its unaudited financial results for the three months ended March 31, 2021.


Results exceed expectations across all key metrics

  • Net income of $425 million, or $0.35 per diluted share (EPS)
  • Adjusted EPS of $0.35 per diluted share – up 35% from 1Q 2020
  • Cash flow from operations (CFFO) of $915 million – up $128 million or 16% from 1Q 2020
  • Available funds from operations (AFFO) of $1.029 billion – up $109 million or 12% from 1Q 2020
  • Adjusted EBITDA of $1.415 billion – up $153 million or 12% from 1Q 2020; up 6% excluding favorable winter storm effects
  • Record gathering volumes of 13.6 Bcf/d; record contracted transmission capacity of 22.8 Bcf/d
  • Debt-to-Adjusted EBITDA at quarter end: 4.2x
  • Guidance midpoints for Adjusted EBITDA and AFFO increase by $100 million
  • Dividend coverage ratio is 2.07x (AFFO basis)

CEO Perspective

Alan Armstrong, president and chief executive officer, made the following comments:

Our natural gas business strategy continues to deliver consistently strong cash flow with first-quarter Adjusted EBITDA up 12 percent from last year, driven in part by record gathering volumes particularly in the Northeast. Severe winter weather in February boosted marketing margins and upstream sales from unusually high prices, but even excluding these weather effects, our Adjusted EBITDA was up 6 percent, underscoring the stability of our earnings regardless of external factors.”

We continued our pace of execution in the first quarter, placing Southeastern Trail into full service in early January and progressing on Transco’s Leidy South project to bring additional gas from Appalachia to growing demand centers along the Atlantic Seaboard by next winter. We also filed our FERC application for the Regional Energy Access pipeline expansion, a low-impact project being designed in a manner that is adaptable to future renewable energy sources like clean hydrogen and RNG blending.”

Armstrong added, “As one of the nation’s largest clean energy infrastructure providers, we have a huge opportunity to leverage our natural gas-focused business as the world moves to a low-carbon future, while helping customers and the United States meet climate goals. We believe clean, affordable and reliable natural gas is an important component of today’s fuel mix and should be prioritized as one of the most important tools to aggressively displace more carbon-intensive fuels around the world.”

Williams Summary Financial Information

1Q

Amounts in millions, except ratios and per-share amounts. Per share amounts are reported on a diluted basis. Net income amounts are from continuing operations attributable to The Williams Companies, Inc. available to common stockholders.

2021

2020

 

 

 

GAAP Measures

 

 

Net Income (Loss)

$425

 

($518)

 

Net Income (Loss) Per Share

$0.35

 

($0.43)

 

Cash Flow From Operations

$915

 

$787

 

 

 

 

Non-GAAP Measures (1)

 

 

Adjusted EBITDA

$1,415

 

$1,262

 

Adjusted Income

$429

 

$313

 

Adjusted Income Per Share

$0.35

 

$0.26

 

Available Funds from Operations

$1,029

 

$920

 

Dividend Coverage Ratio

2.07

x

1.90

x

 

 

 

Other

 

 

Debt-to-Adjusted EBITDA at Quarter End (2)

4.2

x

4.36

x

Capital Investments (3)

$277

 

$284

 

 

(1) Schedules reconciling Adjusted Income, Adjusted EBITDA, Available Funds from Operations and Dividend Coverage Ratio (non-GAAP measures) to the most comparable GAAP measure are available at www.williams.com and as an attachment to this news release.

(2) Does not represent leverage ratios measured for WMB credit agreement compliance or leverage ratios as calculated by the major credit ratings agencies. Debt is net of cash on hand, and Adjusted EBITDA reflects the sum of the last four quarters.

(3) Capital Investments includes increases to property, plant, and equipment, purchases of businesses, net of cash acquired, and purchases of and contributions to equity-method investments.

GAAP Measures

  • First-quarter 2021 net income improved by $943 million over the prior year, reflecting $128 million of higher commodity margins in 2021 and $21 million from recently acquired upstream operations, while lower Haynesville gathering revenues were substantially offset by increased earnings from Northeast G&P equity-method investments. The improvement over last year also reflects the absence of $1.2 billion in pre-tax charges in 2020 related to impairments of equity-method investments, goodwill and goodwill at an equity investee, of which $65 million was attributable to noncontrolling interests. The provision for income taxes changed unfavorably by $345 million primarily due to higher pre-tax income.
  • The severe winter weather impact in February 2021 and the associated effect on commodity prices is estimated to have had a net favorable impact on our pre-tax results of approximately $77 million, primarily within our commodity margins and results from upstream operations.
  • Cash flow from operations for the first quarter of 2021 increased as compared to 2020 primarily due to the previously described commodity margin improvement in 2021.

Non-GAAP Measures

  • Adjusted EBITDA increased by $153 million over the prior year, driven by the previously described benefits from commodity margins and recently acquired upstream operations, while lower Haynesville gathering revenues were substantially offset by increased contributions from Northeast G&P equity-method investments. Even excluding the net favorable impact of the severe winter weather impact in February 2021, Adjusted EBITDA was higher than the prior year.
  • Adjusted Income improved by $116 million over the prior year driven by similar changes.
  • Available Funds From Operations increased by $109 million, largely reflecting the previously described improved commodity margins in 2021.

Business Segment Results & Form 10-Q

Williams' operations are comprised of the following reportable segments: Transmission & Gulf of Mexico, Northeast G&P, West and Other. For more information, see the company's first-quarter 2021 Form 10-Q.

 

First Quarter

Amounts in millions

Modified EBITDA

 

Adjusted EBITDA

1Q 2021

1Q 2020

Change

 

1Q 2021

1Q 2020

Change

Transmission & Gulf of Mexico

$660

 

$662

 

($2)

 

 

$660

 

$669

 

($9)

 

Northeast G&P

402

 

369

 

33

 

 

402

 

370

 

32

 

West

315

 

215

 

100

 

 

315

 

216

 

99

 

Other

33

 

7

 

26

 

 

38

 

7

 

31

 

Totals

$1,410

 

$1,253

 

$157

 

 

$1,415

 

$1,262

 

$153

 

 

Note: Williams uses Modified EBITDA for its segment reporting. Definitions of Modified EBITDA and Adjusted EBITDA and schedules reconciling to net income are included in this news release.

Transmission & Gulf of Mexico

  • First-quarter 2021 Modified and Adjusted EBITDA decreased slightly compared to the prior year, as small increases in service revenues, commodity margins, and investee EBITDA were offset by higher operating and administrative costs. An increase in natural gas transmission service revenues related to recent expansion projects was partially offset by lower gathering volumes in the Gulf of Mexico.

Northeast G&P

  • First-quarter 2021 Modified and Adjusted EBITDA increased over the prior year driven by higher gathering volumes on our Bradford and Marcellus South systems, along with the benefit of an increased ownership in Blue Racer Midstream, acquired in November 2020.
  • Gross gathering volumes for first-quarter 2021, including 100% of operated equity-method investments, increased by 11% over the same period in 2020.

West

  • First-quarter 2021 Modified and Adjusted EBITDA increased over the prior year primarily due to an estimated $55 million net favorable impact from the February 2021 severe winter weather, $50 million of higher commodity marketing margins driven by higher prices and the absence of prior year inventory impacts, and lower operating and administrative costs. These favorable changes were partially offset by lower Haynesville gathering revenues from lower rates and volumes, as well as lower investee EBITDA driven by reduced transportation volumes on Overland Pass Pipeline.

Other

  • First-quarter 2021 Modified and Adjusted EBITDA includes $30 million from our recently acquired oil and gas producing properties. Of this amount, we estimate that approximately $22 million is attributable to the February 2021 severe winter weather.

2021 Financial Guidance

The company now expects 2021 Adjusted EBITDA between $5.2 billion and $5.4 billion and Available Funds from Operations between $3.7 billion and $3.9 billion, both a $100 million midpoint increase from guidance originally issued in February 2021. As well, the leverage ratio midpoint has been updated to ~4.2x versus ~4.25x prior for year-end 2021. The company is keeping intact 2021 growth capex guidance between $1 billion to $1.2 billion. Importantly, Williams expects to generate positive free cash flow (after capital expenditures and dividends), allowing it to retain financial flexibility.

Williams' First-Quarter 2021 Materials to be Posted Shortly; Q&A Webcast Scheduled for Tomorrow

Williams' first-quarter 2021 earnings presentation will be posted at www.williams.com. The company’s first-quarter 2021 earnings conference call and webcast with analysts and investors is scheduled for Tuesday, May 4, at 9:30 a.m. Eastern Time (8:30 a.m. Central Time). Participants who wish to join the call by phone must register using the following link: http://www.directeventreg.com/registration/event/5942459

A webcast link to the conference call is available at www.williams.com. A replay of the webcast will be available on the website for at least 90 days following the event.

About Williams

Williams (NYSE: WMB) is committed to being the leader in providing infrastructure that safely delivers natural gas products 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 and storage 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. www.williams.com

 

The Williams Companies, Inc.

Consolidated Statement of Operations

(Unaudited)

 

Three Months Ended

March 31,

 

2021

 

2020

 

(Millions, except per-share amounts)

Revenues:

 

 

 

Service revenues

$

1,452

 

 

$

1,474

 

Service revenues – commodity consideration

49

 

 

28

 

Product sales

1,111

 

 

411

 

Total revenues

2,612

 

 

1,913

 

Costs and expenses:

 

 

 

Product costs

932

 

 

396

 

Processing commodity expenses

21

 

 

13

 

Operating and maintenance expenses

360

 

 

337

 

Depreciation and amortization expenses

438

 

 

429

 

Selling, general, and administrative expenses

123

 

 

113

 

Impairment of goodwill

 

 

187

 

Other (income) expense – net

(1

)

 

7

 

Total costs and expenses

1,873

 

 

1,482

 

Operating income (loss)

739

 

 

431

 

Equity earnings (losses)

131

 

 

22

 

Impairment of equity-method investments

 

 

(938

)

Other investing income (loss) – net

2

 

 

3

 

Interest incurred

(296

)

 

(301

)

Interest capitalized

2

 

 

5

 

Other income (expense) – net

(2

)

 

4

 

Income (loss) before income taxes

576

 

 

(774

)

Less: Provision (benefit) for income taxes

141

 

 

(204

)

Net income (loss)

435

 

 

(570

)

Less: Net income (loss) attributable to noncontrolling interests

9

 

 

(53

)

Net income (loss) attributable to The Williams Companies, Inc.

426

 

 

(517

)

Less: Preferred stock dividends

1

 

 

1

 

Net income (loss) available to common stockholders

$

425

 

 

$

(518

)

Basic earnings (loss) per common share:

 

 

 

Net income (loss)

$

.35

 

 

$

(.43

)

Weighted-average shares (thousands)

1,214,646

 

 

1,213,019

 

Diluted earnings (loss) per common share:

 

 

 

Net income (loss)

$

.35

 

 

$

(.43

)

Weighted-average shares (thousands)

1,217,211

 

 

1,213,019

 

 

The Williams Companies, Inc.

Consolidated Balance Sheet

(Unaudited)

 

 

March 31,
2021

 

December 31,
2020

 

 

(Millions, except per-share amounts)

ASSETS

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

1,126

 

 

$

142

 

Trade accounts and other receivables

 

1,059

 

 

1,000

 

Allowance for doubtful accounts

 

(1

)

 

(1

)

Trade accounts and other receivables – net

 

1,058

 

 

999

 

Inventories

 

144

 

 

136

 

Other current assets and deferred charges

 

169

 

 

152

 

Total current assets

 

2,497

 

 

1,429

 

Investments

 

5,129

 

 

5,159

 

Property, plant, and equipment

 

42,970

 

 

42,489

 

Accumulated depreciation and amortization

 

(13,894

)

 

(13,560

)

Property, plant, and equipment – net

 

29,076

 

 

28,929

 

Intangible assets – net of accumulated amortization

 

7,362

 

 

7,444

 

Regulatory assets, deferred charges, and other

 

1,198

 

 

1,204

 

Total assets

 

$

45,262

 

 

$

44,165

 

LIABILITIES AND EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

538

 

 

$

482

 

Accrued liabilities

 

855

 

 

944

 

Long-term debt due within one year

 

2,142

 

 

893

 

Total current liabilities

 

3,535

 

 

2,319

 

Long-term debt

 

21,092

 

 

21,451

 

Deferred income tax liabilities

 

2,065

 

 

1,923

 

Regulatory liabilities, deferred income, and other

 

4,097

 

 

3,889

 

Contingent liabilities

 

 

 

 

Equity:

 

 

 

 

Stockholders’ equity:

 

 

 

 

Preferred stock

 

35

 

 

35

 

Common stock ($1 par value; 1,470 million shares authorized at March 31, 2021 and December 31, 2020; 1,249 million shares issued at March 31, 2021 and 1,248 million shares issued at December 31, 2020)

 

1,249

 

 

1,248

 

Capital in excess of par value

 

24,384

 

 

24,371

 

Retained deficit

 

(12,825

)

 

(12,748

)

Accumulated other comprehensive income (loss)

 

(100

)

 

(96

)

Treasury stock, at cost (35 million shares of common stock)

 

(1,041

)

 

(1,041

)

Total stockholders’ equity

 

11,702

 

 

11,769

 

Noncontrolling interests in consolidated subsidiaries

 

2,771

 

 

2,814

 

Total equity

 

14,473

 

 

14,583

 

Total liabilities and equity

 

$

45,262

 

 

$

44,165

 

 

The Williams Companies, Inc.

Consolidated Statement of Cash Flows

(Unaudited)

 

Three Months Ended

March 31,

 

2021

 

2020

 

(Millions)

OPERATING ACTIVITIES:

 

Net income (loss)

$

435

 

 

$

(570

)

Adjustments to reconcile to net cash provided (used) by operating activities:

 

 

 

Depreciation and amortization

438

 

 

429

 

Provision (benefit) for deferred income taxes

144

 

 

(177

)

Equity (earnings) losses

(131

)

 

(22

)

Distributions from unconsolidated affiliates

176

 

 

169

 

Impairment of goodwill

 

 

187

 

Impairment of equity-method investments

 

 

938

 

Amortization of stock-based awards

20

 

 

9

 

Cash provided (used) by changes in current assets and liabilities:

 

 

 

Accounts receivable

(59

)

 

67

 

Inventories

(8

)

 

19

 

Other current assets and deferred charges

(6

)

 

20

 

Accounts payable

38

 

 

(155

)

Accrued liabilities

(116

)

 

(150

)

Other, including changes in noncurrent assets and liabilities

(16

)

 

23

 

Net cash provided (used) by operating activities

915

 

 

787

 

FINANCING ACTIVITIES:

 

 

 

Proceeds from long-term debt

897

 

 

1,702

 

Payments of long-term debt

(5

)

 

(1,518

)

Proceeds from issuance of common stock

3

 

 

6

 

Common dividends paid

(498

)

 

(485

)

Dividends and distributions paid to noncontrolling interests

(54

)

 

(44

)

Contributions from noncontrolling interests

2

 

 

2

 

Payments for debt issuance costs

(6

)

 

 

Other – net

(13

)

 

(10

)

Net cash provided (used) by financing activities

326

 

 

(347

)

INVESTING ACTIVITIES:

 

 

 

Property, plant, and equipment:

 

 

 

Capital expenditures (1)

(260

)

 

(306

)

Dispositions – net

(1

)

 

(3

)

Contributions in aid of construction

19

 

 

14

 

Purchases of and contributions to equity-method investments

(14

)

 

(30

)

Other – net

(1

)

 

(4

)

Net cash provided (used) by investing activities

(257

)

 

(329

)

Increase (decrease) in cash and cash equivalents

984

 

 

111

 

Cash and cash equivalents at beginning of year

142

 

 

289

 

Cash and cash equivalents at end of period

$

1,126

 

 

$

400

 

_____________

 

 

 

(1) Increases to property, plant, and equipment

$

(263

)

 

$

(254

)

Changes in related accounts payable and accrued liabilities

3

 

 

(52

)

Capital expenditures

$

(260

)

 

$

(306

)

 
 

Transmission & Gulf of Mexico

 

(UNAUDITED)

 

 

2020

 

 

 

 

 

2021

 

(Dollars in millions)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

 

1st Qtr

 

Regulated interstate natural gas transportation, storage, and other revenues (1)

$

692

 

 

$

676

 

 

$

686

 

 

$

702

 

 

$

2,756

 

 

 

$

708

 

 

 

Gathering, processing, and transportation revenues

99

 

 

78

 

 

85

 

 

86

 

 

348

 

 

 

86

 

 

 

Other fee revenues (1)

4

 

 

5

 

 

3

 

 

6

 

 

18

 

 

 

4

 

 

 

Commodity margins

3

 

 

1

 

 

4

 

 

4

 

 

12

 

 

 

8

 

 

 

Operating and administrative costs (1)

(184

)

 

(189

)

 

(192

)

 

(192

)

 

(757

)

 

 

(198

)

 

 

Other segment income (expenses) - net

4

 

 

2

 

 

(8

)

 

8

 

 

6

 

 

 

5

 

 

 

Impairment of certain assets

 

 

 

 

 

 

(170

)

 

(170

)

 

 

 

 

 

Proportional Modified EBITDA of equity-method investments

44

 

 

42

 

 

38

 

 

42

 

 

166

 

 

 

47

 

 

 

Modified EBITDA

662

 

 

615

 

 

616

 

 

486

 

 

2,379

 

 

 

660

 

 

 

Adjustments

7

 

 

2

 

 

6

 

 

158

 

 

173

 

 

 

 

 

 

Adjusted EBITDA

$

669

 

 

$

617

 

 

$

622

 

 

$

644

 

 

$

2,552

 

 

 

$

660

 

 

 

 

 

 

 

 

 

 

 

 

Statistics for Operated Assets

 

 

 

 

 

 

 

 

Natural Gas Transmission

 

 

 

 

 

 

 

 

Transcontinental Gas Pipe Line

 

 

 

 

 

 

 

 

Avg. daily transportation volumes (Tbtu)

13.8

 

 

12.0

 

 

12.8

 

 

13.2

 

 

12.9

 

 

 

14.1

 

 

 

Avg. daily firm reserved capacity (Tbtu)

17.7

 

 

17.5

 

 

18.0

 

 

18.2

 

 

17.9

 

 

 

18.6

 

 

 

Northwest Pipeline LLC

 

 

 

 

 

 

 

 

Avg. daily transportation volumes (Tbtu)

2.6

 

 

1.9

 

 

1.8

 

 

2.5

 

 

2.2

 

 

 

2.8

 

 

 

Avg. daily firm reserved capacity (Tbtu)

3.0

 

 

3.0

 

 

3.0

 

 

2.9

 

 

3.0

 

 

 

2.9

 

 

 

Gulfstream - Non-consolidated

 

 

 

 

 

 

 

 

Avg. daily transportation volumes (Tbtu)

1.2

 

 

1.2

 

 

1.3

 

 

1.1

 

 

1.2

 

 

 

1.0

 

 

 

Avg. daily firm reserved capacity (Tbtu)

1.3

 

 

1.3

 

 

1.3

 

 

1.3

 

 

1.3

 

 

 

1.3

 

 

 

Gathering, Processing, and Crude Oil Transportation

 

 

 

 

 

 

 

 

Consolidated (2)

 

 

 

 

 

 

 

 

Gathering volumes (Bcf/d)

0.30

 

 

0.23

 

 

0.23

 

 

0.26

 

 

0.25

 

 

 

0.28

 

 

 

Plant inlet natural gas volumes (Bcf/d)

0.58

 

 

0.50

 

 

0.40

 

 

0.46

 

 

0.48

 

 

 

0.46

 

 

 

NGL production (Mbbls/d)

32

 

 

25

 

 

27

 

 

30

 

 

29

 

 

 

29

 

 

 

NGL equity sales (Mbbls/d)

5

 

 

4

 

 

5

 

 

5

 

 

5

 

 

 

7

 

 

 

Crude oil transportation volumes (Mbbls/d)

138

 

 

92

 

 

121

 

 

132

 

 

121

 

 

 

130

 

 

 

Non-consolidated (3)

 

 

 

 

 

 

 

 

Gathering volumes (Bcf/d)

0.35

 

 

0.31

 

 

0.26

 

 

0.30

 

 

0.30

 

 

 

0.36

 

 

 

Plant inlet natural gas volumes (Bcf/d)

0.35

 

 

0.31

 

 

0.25

 

 

0.30

 

 

0.30

 

 

 

0.37

 

 

 

NGL production (Mbbls/d)

24

 

 

23

 

 

17

 

 

21

 

 

21

 

 

 

28

 

 

 

NGL equity sales (Mbbls/d)

5

 

 

8

 

 

4

 

 

6

 

 

6

 

 

 

9

 

 

 

 

 

 

 

 

 

 

 

 

(1) Excludes certain amounts associated with revenues and operating costs for tracked or reimbursable charges.

 

(2) Excludes volumes associated with equity-method investments that are not consolidated in our results.

 

(3) Includes 100% of the volumes associated with operated equity-method investments.

 

 
 

Northeast G&P

 

(UNAUDITED)

 

 

2020

 

 

 

 

 

2021

 

(Dollars in millions)

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

4th Qtr

 

Year

 

1st Qtr

 

Gathering, processing, transportation, and fractionation revenues

$

312

 

$

308

 

$

332

 

$

327

 

$

1,279

 

 

$

311

 

 

Other fee revenues (1)

25

 

25

 

22

 

24

 

96

 

 

25

 

 

Commodity margins

1

 

1

 

1

 

1

 

4

 

 

3

 

 

Operating and administrative costs (1)

(87

)

(86

)

(85

)

(84

)

(342

)

 

(89

)

 

Other segment income (expenses) - net

(2

)

(4

)

(4

)

1

 

(9

)

 

(1

)

 

Impairment of certain assets

 

 

 

(12

)

(12

)

 

 

 

Proportional Modified EBITDA of equity-method investments

120

 

126

 

121

 

106

 

473

 

 

153

 

 

Modified EBITDA

369

 

370

 

387

 

363

 

1,489

 

 

402

 

 

Adjustments

1

 

(7

)

9

 

43

 

46

 

 

 

 

Adjusted EBITDA

$

370

 

$

363

 

$

396

 

$

406

 

$

1,535

 

 

$

402

 

 

 

 

 

 

 

 

 

 

 

Statistics for Operated Assets

 

 

 

 

 

 

 

 

Gathering and Processing

 

 

 

 

 

 

 

 

Consolidated (2)

 

 

 

 

 

 

 

 

Gathering volumes (Bcf/d)

4.27

 

4.14

 

4.47

 

4.36

 

4.31

 

 

4.19

 

 

Plant inlet natural gas volumes (Bcf/d)

1.23

 

1.22

 

1.36

 

1.45

 

1.32

 

 

1.41

 

 

NGL production (Mbbls/d) (4)

107

 

93

 

114

 

111

 

106

 

 

102

 

 

NGL equity sales (Mbbls/d)

2

 

2

 

2

 

2

 

2

 

 

1

 

 

Non-consolidated (3)

 

 

 

 

 

 

 

 

Gathering volumes (Bcf/d)

4.40

 

4.68

 

4.94

 

5.11

 

4.78

 

 

5.40

 

 

 

 

 

 

 

 

 

 

 

(1) Excludes certain amounts associated with revenues and operating costs for reimbursable charges.

 

(2) Includes volumes associated with Susquehanna Supply Hub, the Northeast JV, and Utica Supply Hub, all of which are consolidated.

 

(3) Includes 100% of the volumes associated with operated equity-method investments, including the Laurel Mountain Midstream partnership; and the Bradford Supply Hub and a portion of the Marcellus South Supply Hub within the Appalachia Midstream Services partnership.

 

(4) 1st Qtr, 2nd Qtr, and Year columns for 2020 volumes have been updated to reflect current meter parameters used to measure NGL production.

 

 
 

West

 

(UNAUDITED)

 

 

2020

 

 

 

 

 

2021

 

(Dollars in millions)

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

4th Qtr

 

Year

 

1st Qtr

 

Gathering, processing, transportation, storage, and fractionation revenues

$

299

 

$

297

 

$

288

 

$

320

 

$

1,204

 

 

$

262

 

 

Other fee revenues (1)

6

 

13

 

16

 

15

 

50

 

 

6

 

 

Commodity margins

2

 

30

 

28

 

25

 

85

 

 

128

 

 

Operating and administrative costs (1)

(115

)

(111

)

(108

)

(105

)

(439

)

 

(106

)

 

Other segment income (expenses) - net

(5

)

 

(7

)

 

(12

)

 

 

 

Proportional Modified EBITDA of equity-method investments

28

 

24

 

30

 

28

 

110

 

 

25

 

 

Modified EBITDA

215

 

253

 

247

 

283

 

998

 

 

315

 

 

Adjustments

1

 

(1

)

(2

)

(6

)

(8

)

 

 

 

Adjusted EBITDA

$

216

 

$

252

 

$

245

 

$

277

 

$

990

 

 

$

315

 

 

 

 

 

 

 

 

 

 

 

Statistics for Operated Assets

 

 

 

 

 

 

 

 

Gathering and Processing

 

 

 

 

 

 

 

 

Consolidated (2)

 

 

 

 

 

 

 

 

Gathering volumes (Bcf/d)

3.43

 

3.40

 

3.28

 

3.19

 

3.33

 

 

3.11

 

 

Plant inlet natural gas volumes (Bcf/d)

1.26

 

1.33

 

1.31

 

1.13

 

1.25

 

 

1.20

 

 

NGL production (Mbbls/d)

35

 

51

 

71

 

39

 

49

 

 

36

 

 

NGL equity sales (Mbbls/d)

12

 

25

 

34

 

18

 

22

 

 

13

 

 

Non-consolidated (3)

 

 

 

 

 

 

 

 

Gathering volumes (Bcf/d)

0.20

 

0.24

 

0.28

 

0.30

 

0.25

 

 

0.27

 

 

Plant inlet natural gas volumes (Bcf/d)

0.20

 

0.23

 

0.28

 

0.29

 

0.25

 

 

0.27

 

 

NGL production (Mbbls/d)

17

 

23

 

26

 

26

 

23

 

 

24

 

 

NGL and Crude Oil Transportation volumes (Mbbls/d) (4)

227

 

142

 

156

 

147

 

168

 

 

85

 

 

 

 

 

 

 

 

 

 

 

(1) Excludes certain amounts associated with revenues and operating costs for reimbursable charges.

 

(2) Excludes volumes associated with equity-method investments that are not consolidated in our results.

 

(3) Includes 100% of the volumes associated with operated equity-method investments, including Rocky Mountain Midstream.

 

(4) Includes 100% of the volumes associated with operated equity-method investments, including the Overland Pass Pipeline Company and Rocky Mountain Midstream.

 

 
 

Capital Expenditures and Investments

 

(UNAUDITED)

 

 

2020

 

 

 

 

 

2021

 

(Dollars in millions)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

 

1st Qtr

 

 

 

 

 

 

 

 

 

 

Capital expenditures:

 

 

 

 

 

 

 

 

Transmission & Gulf of Mexico

$

185

 

 

$

181

 

 

$

192

 

 

$

190

 

 

$

748

 

 

 

$

109

 

 

 

Northeast G&P

46

 

 

41

 

 

32

 

 

38

 

 

157

 

 

 

40

 

 

 

West

72

 

 

80

 

 

93

 

 

65

 

 

310

 

 

 

33

 

 

 

Other

3

 

 

5

 

 

8

 

 

8

 

 

24

 

 

 

78

 

 

 

Total (1)

$

306

 

 

$

307

 

 

$

325

 

 

$

301

 

 

$

1,239

 

 

 

$

260

 

 

 

 

 

 

 

 

 

 

 

 

Purchases of and contributions to equity-method investments:

 

 

 

 

 

 

 

 

Transmission & Gulf of Mexico

$

1

 

 

$

1

 

 

$

34

 

 

$

1

 

 

$

37

 

 

 

$

3

 

 

 

Northeast G&P

27

 

 

30

 

 

47

 

 

174

 

 

278

 

 

 

11

 

 

 

West

2

 

 

5

 

 

3

 

 

 

 

10

 

 

 

 

 

 

Total

$

30

 

 

$

36

 

 

$

84

 

 

$

175

 

 

$

325

 

 

 

$

14

 

 

 

 

 

 

 

 

 

 

 

 

Summary:

 

 

 

 

 

 

 

 

Transmission & Gulf of Mexico

$

186

 

 

$

182

 

 

$

226

 

 

$

191

 

 

$

785

 

 

 

$

112

 

 

 

Northeast G&P

73

 

 

71

 

 

79

 

 

212

 

 

435

 

 

 

51

 

 

 

West

74

 

 

85

 

 

96

 

 

65

 

 

320

 

 

 

33

 

 

 

Other

3

 

 

5

 

 

8

 

 

8

 

 

24

 

 

 

78

 

 

 

Total

$

336

 

 

$

343

 

 

$

409

 

 

$

476

 

 

$

1,564

 

 

 

$

274

 

 

 

 

 

 

 

 

 

 

 

 

Capital investments:

 

 

 

 

 

 

 

 

Increases to property, plant, and equipment

$

254

 

 

$

327

 

 

$

331

 

 

$

248

 

 

$

1,160

 

 

 

$

263

 

 

 

Purchases of investments

30

 

 

36

 

 

84

 

 

175

 

 

325

 

 

 

14

 

 

 

Total

$

284

 

 

$

363

 

 

$

415

 

 

$

423

 

 

$

1,485

 

 

 

$

277

 

 

 

 

 

 

 

 

 

 

 

 

(1) Increases to property, plant, and equipment

$

254

 

 

$

327

 

 

$

331

 

 

$

248

 

 

$

1,160

 

 

 

$

263

 

 

 

Changes in related accounts payable and accrued liabilities

52

 

(20

)

 

(6

)

 

53

 

79

 

 

(3

)

 

 

Capital expenditures

$

306

 

 

$

307

 

 

$

325

 

 

$

301

 

 

$

1,239

 

 

 

$

260

 

 

 

 

 

 

 

 

 

 

 

 

Contributions from noncontrolling interests

$

2

 

 

$

2

 

 

$

1

 

 

$

2

 

 

$

7

 

 

 

$

2

 

 

 

Contributions in aid of construction

$

14

 

 

$

5

 

 

$

8

 

 

$

10

 

 

$

37

 

 

 

$

19

 

 

 

 

 


Contacts

MEDIA CONTACT:
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(800) 945-8723

INVESTOR CONTACT:
Danilo Juvane
(918) 573-5075


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