Williams Reports Third-Quarter 2020 Financial Results
Strong 3Q 2020 results demonstrate stability and predictability of business; on track to meet 2020 guidance expectations
-
Net income of
$308 million ($0.25 per diluted share), up$88 million over 3Q 19 -
Adjusted EPS of
$0.27 per diluted share -
Adjusted EBITDA of
$1.267 billion -
Year-to-date Adjusted EBITDA of
$3.769 billion , continues to exceed year-to-date 2019 - Debt-to-Adjusted EBITDA leverage ratio of 4.42x, on track to be below 2020 guidance of 4.4x by year end
Natural gas focused strategy delivers strong, predictable results; Northeast G&P segment hits record volumes
- Record gathering and processing volumes drive Northeast G&P segment up 19% in Modified EBITDA and 17% in Adjusted EBITDA year-to-date 2020 vs. year-to-date 2019
-
Transmission &
Gulf of Mexico segment Modified EBITDA and Adjusted EBITDA consistent year-to-date 2020 vs. year-to-date 2019 withTransco growth overcoming hurricane impacts - Stable and reliable customer base of utilities, power plants, LNG facilities and industrial plants supports firm-committed capacity on demand-pull regulated pipelines
-
Continued strong project execution on Bluestem Pipeline,
Southeastern Trail and Leidy South - Year-to-date 2020 earnings boosted by structurally lower operating and administrative costs
- Issued climate commitment to reduce emissions by 56% from 2005 levels by 2030, grow renewables and embrace emerging opportunities such as hydrogen
CEO Perspective
"The ongoing stability of our financial performance continues to distinguish Williams during a year marked by disruption and uncertainty. We captured tailwinds in the markets we serve – particularly in the Northeast with record volumes – and have delivered consistently strong quarterly results and cash flow throughout the year. Williams is well positioned to meet our pre-COVID 2020 guidance ranges for earnings, adjusted EBITDA and cash flow set in
"I am proud of our employees for their extraordinary commitment during this most unusual year and hurricane season to safely run our operations while also successfully executing on projects like Bluestem Pipeline, and Transco’s
"From an ESG perspective, we took a major step in the third quarter by becoming the first
Williams Summary Financial Information |
3Q |
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YTD |
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Amounts in millions, except ratios and per-share amounts. Per share amounts are reported on a diluted basis. Net income amounts are
attributable to stockholders. |
2020 |
2019 |
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2020 |
2019 |
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GAAP Measures |
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Net Income |
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Net Income Per Share |
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Cash Flow From Operations (1) |
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Non-GAAP Measures (2) |
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Adjusted EBITDA |
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Adjusted Income |
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Adjusted Income Per Share |
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Distributable Cash Flow |
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Dividend Coverage Ratio |
1.59 |
x |
1.78 |
x |
|
1.67 |
x |
1.79 |
x |
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Other |
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Debt-to-Adjusted EBITDA at Quarter End (3) |
4.42 |
x |
4.47 |
x |
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Capital Investments (4) (5) |
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(1) Decline due primarily to net working capital changes including payment in
related to settlement of |
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(2) Schedules reconciling Adjusted Income, Adjusted EBITDA, Distributable Cash Flow 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. |
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(3) 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. |
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(4) YTD 2019 excludes
for at the close of the Northeast JV by our JV partner, CPPIB, in |
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(5) 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
- Third-quarter 2020 net income improved compared to the prior year reflecting the benefit of significantly lower operating and administrative costs from cost-savings initiatives, the absence of prior year severance charges, and a change in an employee benefit policy, as well as the absence of prior year impairments of equity-method investments.
-
These improvements were partially offset by slightly lower service revenue reflecting lower non-cash deferred revenue recognition at Gulfstar One and the impact of 2020 hurricane-related shut-ins in the
Gulf of Mexico , partially offset by growth in our Northeast JV andTransco expansion projects, as well as the absence of a favorable cumulative adjustment in third quarter 2019 associated withTransco's rate case settlement and unfavorable changes in other expenses including the reversal of both costs capitalized in prior periods and certain regulatory assets. -
Year-to-date 2020 net income similarly benefited from significantly lower operating and administrative costs, while service revenues declined slightly as growth from our Northeast JV and
Transco expansion projects was more than offset by decreases in non-cash deferred revenue recognition at Gulfstar One and in theBarnett Shale , as well as the expiration of aBarnett Shale minimum volume commitment ("MVC") in 2019. -
The year-to-date change was also significantly impacted by first-quarter 2020 impairments of equity-method investments and goodwill, which resulted in a total
$1.2 billion pre-tax charge, of which$65 million was attributable to noncontrolling interests. The 2019 year-to-date period included impairments of assets and equity-method investments totaling$262 million and a$122 million gain on the sale of our Jackalope investment. The provision for income taxes changed favorably by$220 million primarily due to the change in pre-tax earnings. -
Cash flow from operations for the third quarter of 2020 decreased as compared to the same period of 2019 primarily due to the
July 1, 2020 , payment of rate refunds byTransco related to increased rates collected sinceMarch 2019 in its recently completed rate case and other changes in net working capital.
Non-GAAP Measures
-
Adjusted EBITDA for the quarter was consistent with the prior year as increased service revenues from growth in our Northeast JV and
Transco expansion projects, lower operating and administrative costs and higher contributions from our Northeast G&P investments, were offset by lower non-cash deferred revenue recognition at Gulfstar One and the impact of 2020 hurricane-related shut-ins in theGulf of Mexico , as well as the absence of the favorable cumulative rate case adjustment in 2019. - Year-to-date Adjusted EBITDA improved driven by lower operating and administrative costs and higher contributions from our Northeast G&P investments, partially offset by the previously described slight decline in service revenues.
- Changes in Adjusted Income for the quarter and year-to-date periods were similarly driven by the changes in Adjusted EBITDA.
- The decrease in third quarter 2020 DCF compared to the prior year is driven by an increase in distributions to noncontrolling interests primarily due to growth in our Northeast JV and higher maintenance capital. Year-to-date DCF is lower, reflecting the absence of a prior year income tax refund and increased distributions to noncontrolling interests, partially offset by increased Adjusted EBITDA and lower maintenance capital.
Business Segment Results & Form 10-Q
Williams' operations are comprised of the following reportable segments: Transmission &
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Quarter-To-Date |
|
Year-To-Date |
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Amounts in millions |
Modified EBITDA |
|
Adjusted EBITDA |
|
Modified EBITDA |
|
Adjusted EBITDA |
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3Q 2020 |
3Q 2019 |
Change |
|
3Q 2020 |
3Q 2019 |
Change |
|
2020 |
2019 |
Change |
|
2020 |
2019 |
Change |
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Transmission & |
|
|
|
|
( |
|
|
|
|
|
|
( |
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
|
Northeast G&P |
387 |
|
345 |
|
42 |
|
|
396 |
|
343 |
|
53 |
|
|
1,126 |
|
947 |
|
179 |
|
|
1,129 |
|
964 |
|
165 |
|
West |
247 |
|
245 |
|
2 |
|
|
245 |
|
244 |
|
1 |
|
|
715 |
|
713 |
|
2 |
|
|
713 |
|
801 |
|
(88) |
|
Other |
(7) |
|
(2) |
|
(5) |
|
|
4 |
|
7 |
|
(3) |
|
|
8 |
|
1 |
|
7 |
|
|
19 |
|
22 |
|
(3) |
|
Totals |
|
|
|
|
( |
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|
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( |
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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 &
-
Third-quarter 2020 Modified and Adjusted EBITDA reflect the absence of the favorable cumulative rate case adjustment in 2019. In addition to these rate case impacts, service revenues for the quarter were down as lower non-cash deferred revenue amortization at Gulfstar One and the impact of 2020 hurricane-related shut-ins were partially offset by
Transco expansion projects placed in service. -
Year-to-date Modified and Adjusted EBITDA also saw decreased service revenues as lower non-cash deferred revenue amortization at Gulfstar One and the impact of 2020 shut-ins were partially offset by
Transco expansion projects placed in service and new production in the Eastern Gulf. Year-to-date 2020 also benefited from lower operating and administrative costs. - Modified EBITDA for the comparative periods benefited from the absence of 2019 severance charges, while both comparative periods reflect the reversal of previously capitalized costs. These items have been excluded from Adjusted EBITDA.
Northeast G&P
-
Third-quarter and year-to-date 2020 Modified and Adjusted EBITDA reflect increased service revenues due to record gathering, processing and NGL production volumes. The year-to-date revenue comparison also benefited from the additional ownership in Utica East Ohio Midstream following the
March 2019 acquisition and contribution to our Northeast JV. - Both comparative periods also reflect the benefit of cost reduction efforts and higher contributions from several equity-method investments including the Marcellus South system, Bradford system and Caiman II.
- Gross gathering volumes for third-quarter 2020, including 100% of operated equity-method investments, increased by 8% over the same period in 2019. Gross processing plant inlet volumes for third-quarter 2020 increased by 17% over the same period in 2019.
West
-
The changes in third-quarter 2020 Modified and Adjusted EBITDA reflect slightly lower service revenues offset by reduced operating and administrative costs. The changes in year-to-date 2020 Modified and Adjusted EBITDA reflect decreases in non-cash deferred revenue recognition in the
Barnett Shale , as well as the expiration of the Barnett Shale MVC in 2019, partially offset by lower operating and administrative costs. - Modified EBITDA for the year-to-date period also benefited from the absence of prior year impairment and severance charges, which are excluded from Adjusted EBITDA.
2020 Financial Guidance
The company continues to expect 2020 Adjusted EBITDA in the lower half of its guidance range of between
Williams' Third-Quarter 2020 Materials to be Posted Shortly; Q&A Webcast Scheduled for Tomorrow
Williams' third-quarter 2020 earnings presentation will be posted at www.williams.com. The company’s third-quarter 2020 earnings conference call and webcast with analysts and investors is scheduled for
About Williams
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Consolidated Statement of Income |
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(Unaudited) |
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
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|
(Millions, except per-share amounts) |
||||||||||||||
Revenues: |
|
|
|
|
|
|
|
||||||||
Service revenues....................................................................................... |
$ |
1,479 |
|
|
$ |
1,495 |
|
|
$ |
4,399 |
|
|
$ |
4,424 |
|
Service revenues – commodity consideration....................................................................................... |
40 |
|
|
38 |
|
|
93 |
|
|
158 |
|
||||
Product sales....................................................................................... |
414 |
|
|
466 |
|
|
1,135 |
|
|
1,512 |
|
||||
Total revenues..................................................................................... |
1,933 |
|
|
1,999 |
|
|
5,627 |
|
|
6,094 |
|
||||
Costs and expenses: |
|
|
|
|
|
|
|
||||||||
Product costs....................................................................................... |
380 |
|
|
434 |
|
|
1,047 |
|
|
1,442 |
|
||||
Processing commodity expenses....................................................................................... |
21 |
|
|
19 |
|
|
49 |
|
|
83 |
|
||||
Operating and maintenance expenses....................................................................................... |
336 |
|
|
364 |
|
|
993 |
|
|
1,091 |
|
||||
Depreciation and amortization expenses....................................................................................... |
426 |
|
|
435 |
|
|
1,285 |
|
|
1,275 |
|
||||
Selling, general, and administrative expenses....................................................................................... |
114 |
|
|
130 |
|
|
354 |
|
|
410 |
|
||||
Impairment of certain assets....................................................................................... |
— |
|
|
— |
|
|
— |
|
|
76 |
|
||||
Impairment of goodwill....................................................................................... |
— |
|
|
— |
|
|
187 |
|
|
— |
|
||||
Other (income) expense – net....................................................................................... |
15 |
|
|
(11) |
|
|
28 |
|
|
30 |
|
||||
Total costs and expenses..................................................................................... |
1,292 |
|
|
1,371 |
|
|
3,943 |
|
|
4,407 |
|
||||
Operating income (loss).......................................................................................... |
641 |
|
|
628 |
|
|
1,684 |
|
|
1,687 |
|
||||
Equity earnings (losses).......................................................................................... |
106 |
|
|
93 |
|
|
236 |
|
|
260 |
|
||||
Impairment of equity-method investments.......................................................................................... |
— |
|
|
(114) |
|
|
(938) |
|
|
(186) |
|
||||
Other investing income (loss) – net.......................................................................................... |
2 |
|
|
7 |
|
|
6 |
|
|
132 |
|
||||
Interest incurred.......................................................................................... |
(298) |
|
|
(303) |
|
|
(898) |
|
|
(915) |
|
||||
Interest capitalized.......................................................................................... |
6 |
|
|
7 |
|
|
16 |
|
|
27 |
|
||||
Other income (expense) – net.......................................................................................... |
(23) |
|
|
1 |
|
|
(14) |
|
|
19 |
|
||||
Income (loss) before income taxes.......................................................................................... |
434 |
|
|
319 |
|
|
92 |
|
|
1,024 |
|
||||
Provision (benefit) for income taxes.......................................................................................... |
111 |
|
|
77 |
|
|
24 |
|
|
244 |
|
||||
Net income (loss)....................................................................................... |
323 |
|
|
242 |
|
|
68 |
|
|
780 |
|
||||
Less: Net income (loss) attributable to noncontrolling interests.................................................................................. |
14 |
|
|
21 |
|
|
(27) |
|
|
54 |
|
||||
Net income (loss) attributable to |
309 |
|
|
221 |
|
|
95 |
|
|
726 |
|
||||
Preferred stock dividends.......................................................................................... |
1 |
|
|
1 |
|
|
2 |
|
|
2 |
|
||||
Net income (loss) available to common stockholders.......................................................................................... |
$ |
308 |
|
|
$ |
220 |
|
|
$ |
93 |
|
|
$ |
724 |
|
Basic earnings (loss) per common share: |
|
|
|
|
|
|
|
||||||||
Net income (loss)................................................................................... |
$ |
.25 |
|
|
$ |
.18 |
|
|
$ |
.08 |
|
|
$ |
.60 |
|
Weighted-average shares (thousands)................................................................................... |
1,213,912 |
|
|
1,212,270 |
|
|
1,213,512 |
|
|
1,211,938 |
|
||||
Diluted earnings (loss) per common share: |
|
|
|
|
|
|
|
||||||||
Net income (loss)................................................................................... |
$ |
.25 |
|
|
$ |
.18 |
|
|
$ |
.08 |
|
|
$ |
.60 |
|
Weighted-average shares (thousands)................................................................................... |
1,215,335 |
|
|
1,214,165 |
|
|
1,214,757 |
|
|
1,213,943 |
|
||||
|
||||||||
Consolidated Balance Sheet |
||||||||
(Unaudited) |
||||||||
|
|
|
|
|
||||
|
|
(Millions, except per-share amounts) |
||||||
ASSETS |
|
|
||||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents..................................................................................................................................... |
|
$ |
70 |
|
|
$ |
289 |
|
Trade accounts and other receivables................................................................................................................................. |
|
1,021 |
|
|
1,002 |
|
||
Alowance for doubtful accounts..................................................................................................................................... |
|
(10) |
|
|
(6) |
|
||
Trade accounts and other receivables – net................................................................................................................................ |
|
1,011 |
|
|
996 |
|
||
Inventories..................................................................................................................................... |
|
157 |
|
|
125 |
|
||
Other current assets and deferred charges..................................................................................................................................... |
|
165 |
|
|
170 |
|
||
Total current assets................................................................................................................................ |
|
1,403 |
|
|
1,580 |
|
||
Investments....................................................................................................................................... |
|
5,176 |
|
|
6,235 |
|
||
Property, plant, and equipment....................................................................................................................................... |
|
42,384 |
|
|
41,510 |
|
||
Accumulated depreciation and amortization....................................................................................................................................... |
|
(13,277) |
|
|
(12,310) |
|
||
Property, plant, and equipment – net................................................................................................................................... |
|
29,107 |
|
|
29,200 |
|
||
Intangible assets – net of accumulated amortization....................................................................................................................................... |
|
7,531 |
|
|
7,959 |
|
||
Regulatory assets, deferred charges, and other....................................................................................................................................... |
|
1,103 |
|
|
1,066 |
|
||
Total assets................................................................................................................................ |
|
$ |
44,320 |
|
|
$ |
46,040 |
|
LIABILITIES AND EQUITY |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable..................................................................................................................................... |
|
$ |
464 |
|
|
$ |
552 |
|
Accrued liabilities..................................................................................................................................... |
|
965 |
|
|
1,276 |
|
||
Commercial paper..................................................................................................................................... |
|
40 |
|
|
— |
|
||
Long-term debt due within one year..................................................................................................................................... |
|
392 |
|
|
2,140 |
|
||
Total current liabilities................................................................................................................................ |
|
1,861 |
|
|
3,968 |
|
||
Long-term debt....................................................................................................................................... |
|
21,951 |
|
|
20,148 |
|
||
Deferred income tax liabilities....................................................................................................................................... |
|
1,846 |
|
|
1,782 |
|
||
Regulatory liabilities, deferred income, and other....................................................................................................................................... |
|
3,764 |
|
|
3,778 |
|
||
Contingent liabilities |
|
|
|
|
||||
Equity: |
|
|
|
|
||||
Stockholders’ equity: |
|
|
|
|
||||
Preferred stock............................................................................................................................. |
|
35 |
|
|
35 |
|
||
Common stock (
2020 and
2020 and 1,247 million shares issued at |
|
1,248 |
|
|
1,247 |
|
||
Capital in excess of par value................................................................................................................................ |
|
24,359 |
|
|
24,323 |
|
||
Retained deficit................................................................................................................................ |
|
(12,376) |
|
|
(11,002) |
|
||
Accumulated other comprehensive income (loss)................................................................................................................................ |
|
(160) |
|
|
(199) |
|
||
|
|
(1,041) |
|
|
(1,041) |
|
||
Total stockholders’ equity............................................................................................................................ |
|
12,065 |
|
|
13,363 |
|
||
Noncontrolling interests in consolidated subsidiaries..................................................................................................................................... |
|
2,833 |
|
|
3,001 |
|
||
Total equity................................................................................................................................ |
|
14,898 |
|
|
16,364 |
|
||
Total liabilities and equity............................................................................................................................ |
|
$ |
44,320 |
|
|
$ |
46,040 |
|
|
|||||||
Consolidated Statement of Cash Flows |
|||||||
(Unaudited) |
|||||||
|
Nine Months Ended
|
||||||
|
2020 |
|
2019 |
||||
|
(Millions) |
||||||
OPERATING ACTIVITIES: |
|
||||||
Net income (loss)................................................................................................................. |
$ |
68 |
|
|
$ |
780 |
|
Adjustments to reconcile to net cash provided (used) by operating activities: |
|
|
|
||||
Depreciation and amortization........................................................................................ |
1,285 |
|
|
1,275 |
|
||
Provision (benefit) for deferred income taxes................................................................. |
52 |
|
|
268 |
|
||
Equity (earnings) losses................................................................................................... |
(236) |
|
|
(260) |
|
||
Distributions from unconsolidated affiliates................................................................... |
466 |
|
|
458 |
|
||
Gain on disposition of equity-method investments......................................................... |
— |
|
|
(122) |
|
||
Impairment of goodwill................................................................................................... |
187 |
|
|
— |
|
||
Impairment of equity-method investments..................................................................... |
938 |
|
|
186 |
|
||
Impairment of certain assets............................................................................................ |
— |
|
|
76 |
|
||
Amortization of stock-based awards............................................................................... |
39 |
|
|
44 |
|
||
Cash provided (used) by changes in current assets and liabilities: |
|
|
|
||||
Accounts receivable.................................................................................................... |
(18) |
|
|
159 |
|
||
Inventories................................................................................................................... |
(33) |
|
|
7 |
|
||
Other current assets and deferred charges.................................................................. |
(15) |
|
|
(10) |
|
||
Accounts payable........................................................................................................ |
(77) |
|
|
(76) |
|
||
Accrued liabilities....................................................................................................... |
(286) |
|
|
76 |
|
||
Other, including changes in noncurrent assets and liabilities......................................... |
12 |
|
|
(159) |
|
||
Net cash provided (used) by operating activities........................................................ |
2,382 |
|
|
2,702 |
|
||
FINANCING ACTIVITIES: |
|
|
|
||||
Proceeds from (payments of) commercial paper – net........................................................ |
40 |
|
|
(4) |
|
||
Proceeds from long-term debt.............................................................................................. |
3,898 |
|
|
736 |
|
||
Payments of long-term debt................................................................................................. |
(3,836) |
|
|
(904) |
|
||
Proceeds from issuance of common stock........................................................................... |
9 |
|
|
10 |
|
||
Proceeds from sale of partial interest in consolidated subsidiary........................................ |
— |
|
|
1,330 |
|
||
Common dividends paid...................................................................................................... |
(1,456) |
|
|
(1,382) |
|
||
Dividends and distributions paid to noncontrolling interests.............................................. |
(147) |
|
|
(86) |
|
||
Contributions from noncontrolling interests........................................................................ |
5 |
|
|
32 |
|
||
Payments for debt issuance costs......................................................................................... |
(20) |
|
|
— |
|
||
Other – net............................................................................................................................ |
(12) |
|
|
(11) |
|
||
Net cash provided (used) by financing activities........................................................ |
(1,519) |
|
|
(279) |
|
||
INVESTING ACTIVITIES: |
|
|
|
||||
Property, plant, and equipment: |
|
|
|
||||
Capital expenditures (1)................................................................................................... |
(938) |
|
|
(1,705) |
|
||
Dispositions – net............................................................................................................ |
(30) |
|
|
(32) |
|
||
Contributions in aid of construction.................................................................................... |
27 |
|
|
25 |
|
||
Purchases of businesses, net of cash acquired..................................................................... |
— |
|
|
(728) |
|
||
Proceeds from dispositions of equity-method investments................................................. |
— |
|
|
485 |
|
||
Purchases of and contributions to equity-method investments........................................... |
(150) |
|
|
(361) |
|
||
Other – net............................................................................................................................ |
9 |
|
|
(28) |
|
||
Net cash provided (used) by investing activities........................................................ |
(1,082) |
|
|
(2,344) |
|
||
Increase (decrease) in cash and cash equivalents................................................................... |
(219) |
|
|
79 |
|
||
Cash and cash equivalents at beginning of year..................................................................... |
289 |
|
|
168 |
|
||
Cash and cash equivalents at end of period............................................................................ |
$ |
70 |
|
|
$ |
247 |
|
_____________ |
|
|
|
||||
(1) Increases to property, plant, and equipment..................................................................... |
$ |
(912) |
|
|
$ |
(1,707) |
|
Changes in related accounts payable and accrued liabilities............................................. |
(26) |
|
|
2 |
|
||
Capital expenditures........................................................................................................... |
$ |
(938) |
|
|
$ |
(1,705) |
|
Transmission & |
|
||||||||||||||||||||||||||||
(UNAUDITED) |
|
||||||||||||||||||||||||||||
|
2019 |
|
2020 |
|
|||||||||||||||||||||||||
(Dollars in millions) |
1st Qtr |
2nd Qtr |
3rd Qtr |
4th Qtr |
Year |
|
1st Qtr |
2nd Qtr |
3rd Qtr |
Year |
|
||||||||||||||||||
Regulated interstate natural gas transportation, storage, and other revenues (1) |
$ |
658 |
|
$ |
650 |
|
$ |
682 |
|
$ |
690 |
|
$ |
2,680 |
|
|
$ |
692 |
|
$ |
676 |
|
$ |
686 |
|
$ |
2,054 |
|
|
Gathering, processing, and transportation revenues |
128 |
|
121 |
|
117 |
|
113 |
|
479 |
|
|
99 |
|
78 |
|
85 |
|
262 |
|
|
|||||||||
Other fee revenues (1) |
3 |
|
5 |
|
3 |
|
4 |
|
15 |
|
|
4 |
|
5 |
|
3 |
|
12 |
|
|
|||||||||
Commodity margins |
8 |
|
7 |
|
6 |
|
4 |
|
25 |
|
|
3 |
|
1 |
|
4 |
|
8 |
|
|
|||||||||
Operating and administrative costs (1) |
(197) |
|
(230) |
|
(209) |
|
(242) |
|
(878) |
|
|
(184) |
|
(189) |
|
(192) |
|
(565) |
|
|
|||||||||
Other segment income (expenses) - net |
(6) |
|
(7) |
|
22 |
|
22 |
|
31 |
|
|
4 |
|
2 |
|
(8) |
|
(2) |
|
|
|||||||||
Impairment of certain assets (2) |
— |
|
— |
|
— |
|
(354) |
|
(354) |
|
|
— |
|
— |
|
— |
|
— |
|
|
|||||||||
Proportional Modified EBITDA of equity-method investments |
42 |
|
44 |
|
44 |
|
47 |
|
177 |
|
|
44 |
|
42 |
|
38 |
|
124 |
|
|
|||||||||
Modified EBITDA |
636 |
|
590 |
|
665 |
|
284 |
|
2,175 |
|
|
662 |
|
615 |
|
616 |
|
1,893 |
|
|
|||||||||
Adjustments |
— |
|
38 |
|
15 |
|
359 |
|
412 |
|
|
7 |
|
2 |
|
6 |
|
15 |
|
|
|||||||||
Adjusted EBITDA |
$ |
636 |
|
$ |
628 |
|
$ |
680 |
|
$ |
643 |
|
$ |
2,587 |
|
|
$ |
669 |
|
$ |
617 |
|
$ |
622 |
|
$ |
1,908 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Statistics for Operated Assets |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Avg. daily transportation volumes (Tbtu) |
13.2 |
|
12.2 |
|
13.2 |
|
13.3 |
|
13.0 |
|
|
13.8 |
|
12.0 |
|
12.8 |
|
12.9 |
|
|
|||||||||
Avg. daily firm reserved capacity (Tbtu) |
17.1 |
|
17.0 |
|
17.3 |
|
17.5 |
|
17.2 |
|
|
17.7 |
|
17.5 |
|
18.0 |
|
17.7 |
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Avg. daily transportation volumes (Tbtu) |
2.7 |
|
2.0 |
|
1.9 |
|
2.7 |
|
2.3 |
|
|
2.6 |
|
1.9 |
|
1.8 |
|
2.1 |
|
|
|||||||||
Avg. daily firm reserved capacity (Tbtu) |
3.1 |
|
3.0 |
|
3.0 |
|
3.0 |
|
3.0 |
|
|
3.0 |
|
3.0 |
|
3.0 |
|
3.0 |
|
|
|||||||||
Gulfstream - Non-consolidated |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Avg. daily transportation volumes (Tbtu) |
1.1 |
|
1.3 |
|
1.3 |
|
1.2 |
|
1.2 |
|
|
1.2 |
|
1.2 |
|
1.3 |
|
1.2 |
|
|
|||||||||
Avg. daily firm reserved capacity (Tbtu) |
1.3 |
|
1.3 |
|
1.3 |
|
1.3 |
|
1.3 |
|
|
1.3 |
|
1.3 |
|
1.3 |
|
1.3 |
|
|
|||||||||
Gathering, Processing, and Crude Oil Transportation |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Consolidated (3) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Gathering volumes (Bcf/d) |
0.25 |
|
0.25 |
|
0.22 |
|
0.29 |
|
0.25 |
|
|
0.30 |
|
0.23 |
|
0.23 |
|
0.25 |
|
|
|||||||||
Plant inlet natural gas volumes (Bcf/d) |
0.53 |
|
0.55 |
|
0.50 |
|
0.58 |
|
0.54 |
|
|
0.58 |
|
0.50 |
|
0.40 |
|
0.49 |
|
|
|||||||||
NGL production (Mbbls/d) |
36 |
|
33 |
|
27 |
|
31 |
|
32 |
|
|
32 |
|
25 |
|
27 |
|
28 |
|
|
|||||||||
NGL equity sales (Mbbls/d) |
7 |
|
9 |
|
5 |
|
6 |
|
7 |
|
|
5 |
|
4 |
|
5 |
|
5 |
|
|
|||||||||
Crude oil transportation volumes (Mbbls/d) |
146 |
|
136 |
|
128 |
|
135 |
|
136 |
|
|
138 |
|
92 |
|
121 |
|
117 |
|
|
|||||||||
Non-consolidated (4) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Gathering volumes (Bcf/d) |
0.35 |
|
0.38 |
|
0.36 |
|
0.35 |
|
0.36 |
|
|
0.35 |
|
0.31 |
|
0.26 |
|
0.30 |
|
|
|||||||||
Plant inlet natural gas volumes (Bcf/d) |
0.35 |
|
0.39 |
|
0.36 |
|
0.35 |
|
0.36 |
|
|
0.35 |
|
0.31 |
|
0.25 |
|
0.30 |
|
|
|||||||||
NGL production (Mbbls/d) |
24 |
|
27 |
|
24 |
|
26 |
|
25 |
|
|
24 |
|
23 |
|
17 |
|
21 |
|
|
|||||||||
NGL equity sales (Mbbls/d) |
7 |
|
8 |
|
6 |
|
5 |
|
6 |
|
|
5 |
|
8 |
|
4 |
|
6 |
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
(1) Excludes certain amounts associated with revenues and operating costs for tracked or reimbursable charges. |
|
||||||||||||||||||||||||||||
(2) Our partners' |
|
||||||||||||||||||||||||||||
(3) Excludes volumes associated with equity-method investments that are not consolidated in our results. |
|
||||||||||||||||||||||||||||
(4) Includes 100% of the volumes associated with operated equity-method investments. |
|
Northeast G&P |
|
||||||||||||||||||||||||||||
(UNAUDITED) |
|
||||||||||||||||||||||||||||
|
2019 |
|
2020 |
|
|||||||||||||||||||||||||
(Dollars in millions) |
1st Qtr |
2nd Qtr |
3rd Qtr |
4th Qtr |
Year |
|
1st Qtr |
2nd Qtr |
3rd Qtr |
Year |
|
||||||||||||||||||
Gathering, processing, transportation, and fractionation revenues |
$ |
239 |
|
$ |
291 |
|
$ |
310 |
|
$ |
331 |
|
$ |
1,171 |
|
|
$ |
312 |
|
$ |
308 |
|
$ |
332 |
|
$ |
952 |
|
|
Other fee revenues (1) |
23 |
|
21 |
|
23 |
|
24 |
|
91 |
|
|
25 |
|
25 |
|
22 |
|
72 |
|
|
|||||||||
Commodity margins |
2 |
|
— |
|
1 |
|
(1) |
|
2 |
|
|
1 |
|
1 |
|
1 |
|
3 |
|
|
|||||||||
Operating and administrative costs (1) |
(83) |
|
(112) |
|
(100) |
|
(98) |
|
(393) |
|
|
(87) |
|
(86) |
|
(85) |
|
(258) |
|
|
|||||||||
Other segment income (expenses) - net |
(4) |
|
— |
|
3 |
|
— |
|
(1) |
|
|
(2) |
|
(4) |
|
(4) |
|
(10) |
|
|
|||||||||
Impairment of certain assets |
— |
|
— |
|
— |
|
(10) |
|
(10) |
|
|
— |
|
— |
|
— |
|
— |
|
|
|||||||||
Proportional Modified EBITDA of equity-method investments |
122 |
|
103 |
|
108 |
|
121 |
|
454 |
|
|
120 |
|
126 |
|
121 |
|
367 |
|
|
|||||||||
Modified EBITDA |
299 |
|
303 |
|
345 |
|
367 |
|
1,314 |
|
|
369 |
|
370 |
|
387 |
|
1,126 |
|
|
|||||||||
Adjustments |
3 |
|
16 |
|
(2) |
|
10 |
|
27 |
|
|
1 |
|
(7) |
|
9 |
|
3 |
|
|
|||||||||
Adjusted EBITDA |
$ |
302 |
|
$ |
319 |
|
$ |
343 |
|
$ |
377 |
|
$ |
1,341 |
|
|
$ |
370 |
|
$ |
363 |
|
$ |
396 |
|
$ |
1,129 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Statistics for Operated Assets |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Gathering and Processing |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Consolidated (2) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Gathering volumes (Bcf/d) |
4.05 |
|
4.16 |
|
4.33 |
|
4.41 |
|
4.24 |
|
|
4.27 |
|
4.14 |
|
4.47 |
|
4.29 |
|
|
|||||||||
Plant inlet natural gas volumes (Bcf/d) |
0.63 |
|
1.04 |
|
1.16 |
|
1.33 |
|
1.04 |
|
|
1.24 |
|
1.22 |
|
1.36 |
|
1.27 |
|
|
|||||||||
NGL production (Mbbls/d) |
44 |
|
58 |
|
92 |
|
106 |
|
76 |
|
|
92 |
|
85 |
|
114 |
|
97 |
|
|
|||||||||
NGL equity sales (Mbbls/d) |
4 |
|
3 |
|
3 |
|
2 |
|
3 |
|
|
2 |
|
2 |
|
2 |
|
2 |
|
|
|||||||||
Non-consolidated (3) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Gathering volumes (Bcf/d) |
4.27 |
|
4.08 |
|
4.35 |
|
4.47 |
|
4.29 |
|
|
4.40 |
|
4.68 |
|
4.94 |
|
4.67 |
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
(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. The Northeast JV includes 100% of volumes handled by UEOM from the date of consolidation on |
|
||||||||||||||||||||||||||||
(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. Volumes handled by |
|
West |
|
||||||||||||||||||||||||||||
(UNAUDITED) |
|
||||||||||||||||||||||||||||
|
2019 |
|
2020 |
|
|||||||||||||||||||||||||
(Dollars in millions) |
1st Qtr |
2nd Qtr |
3rd Qtr |
4th Qtr |
Year |
|
1st Qtr |
2nd Qtr |
3rd Qtr |
Year |
|
||||||||||||||||||
Gathering, processing, transportation, storage, and fractionation revenues |
$ |
344 |
|
$ |
355 |
|
$ |
307 |
|
$ |
302 |
|
$ |
1,308 |
|
|
$ |
299 |
|
$ |
297 |
|
$ |
288 |
|
$ |
884 |
|
|
Other fee revenues (1) |
7 |
|
6 |
|
6 |
|
4 |
|
23 |
|
|
6 |
|
13 |
|
16 |
|
35 |
|
|
|||||||||
Commodity margins |
19 |
|
18 |
|
24 |
|
33 |
|
94 |
|
|
2 |
|
30 |
|
28 |
|
60 |
|
|
|||||||||
Operating and administrative costs (1) |
(125) |
|
(135) |
|
(116) |
|
(114) |
|
(490) |
|
|
(115) |
|
(111) |
|
(108) |
|
(334) |
|
|
|||||||||
Other segment income (expenses) - net |
(3) |
|
4 |
|
(5) |
|
6 |
|
2 |
|
|
(5) |
|
— |
|
(7) |
|
(12) |
|
|
|||||||||
Impairment of certain assets |
(12) |
|
(64) |
|
— |
|
(24) |
|
(100) |
|
|
— |
|
— |
|
— |
|
— |
|
|
|||||||||
Proportional Modified EBITDA of equity-method investments |
26 |
|
28 |
|
29 |
|
32 |
|
115 |
|
|
28 |
|
24 |
|
30 |
|
82 |
|
|
|||||||||
Modified EBITDA |
256 |
|
212 |
|
245 |
|
239 |
|
952 |
|
|
215 |
|
253 |
|
247 |
|
715 |
|
|
|||||||||
Adjustments |
14 |
|
75 |
|
(1) |
|
24 |
|
112 |
|
|
1 |
|
(1) |
|
(2) |
|
(2) |
|
|
|||||||||
Adjusted EBITDA |
$ |
270 |
|
$ |
287 |
|
$ |
244 |
|
$ |
263 |
|
$ |
1,064 |
|
|
$ |
216 |
|
$ |
252 |
|
$ |
245 |
|
$ |
713 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Statistics for Operated Assets |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Gathering and Processing |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Consolidated (2) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Gathering volumes (Bcf/d) |
3.42 |
|
3.53 |
|
3.61 |
|
3.51 |
|
3.52 |
|
|
3.43 |
|
3.40 |
|
3.28 |
|
3.37 |
|
|
|||||||||
Plant inlet natural gas volumes (Bcf/d) |
1.41 |
|
1.52 |
|
1.56 |
|
1.44 |
|
1.48 |
|
|
1.26 |
|
1.33 |
|
1.31 |
|
1.30 |
|
|
|||||||||
NGL production (Mbbls/d) |
62 |
|
59 |
|
48 |
|
46 |
|
54 |
|
|
35 |
|
51 |
|
71 |
|
53 |
|
|
|||||||||
NGL equity sales (Mbbls/d) |
27 |
|
28 |
|
17 |
|
17 |
|
22 |
|
|
12 |
|
25 |
|
34 |
|
23 |
|
|
|||||||||
Non-consolidated (3) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Gathering volumes (Bcf/d) |
0.17 |
|
0.15 |
|
0.21 |
|
0.27 |
|
0.20 |
|
|
0.20 |
|
0.24 |
|
0.28 |
|
0.24 |
|
|
|||||||||
Plant inlet natural gas volumes (Bcf/d) |
0.17 |
|
0.14 |
|
0.21 |
|
0.26 |
|
0.20 |
|
|
0.20 |
|
0.23 |
|
0.28 |
|
0.24 |
|
|
|||||||||
NGL production (Mbbls/d) |
7 |
|
1 |
|
18 |
|
22 |
|
12 |
|
|
17 |
|
23 |
|
26 |
|
22 |
|
|
|||||||||
NGL and Crude Oil Transportation volumes (Mbbls/d) (4) |
254 |
|
269 |
|
250 |
|
238 |
|
253 |
|
|
227 |
|
142 |
|
156 |
|
175 |
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
(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 the Jackalope Gas Gathering System (sold in |
|
||||||||||||||||||||||||||||
(4) Includes 100% of the volumes associated with operated equity-method investments, including the |
|
Capital Expenditures and Investments |
|
||||||||||||||||||||||||||||
(UNAUDITED) |
|
||||||||||||||||||||||||||||
|
2019 |
|
2020 |
|
|||||||||||||||||||||||||
(Dollars in millions) |
1st Qtr |
2nd Qtr |
3rd Qtr |
4th Qtr |
Year |
|
1st Qtr |
2nd Qtr |
3rd Qtr |
Year |
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Capital expenditures: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Transmission & |
$ |
204 |
|
$ |
255 |
|
$ |
543 |
|
$ |
252 |
|
$ |
1,254 |
|
|
$ |
185 |
|
$ |
181 |
|
$ |
192 |
|
$ |
558 |
|
|
Northeast G&P |
152 |
|
177 |
|
131 |
|
74 |
|
534 |
|
|
46 |
|
41 |
|
32 |
|
119 |
|
|
|||||||||
West |
58 |
|
59 |
|
107 |
|
76 |
|
300 |
|
|
72 |
|
80 |
|
93 |
|
245 |
|
|
|||||||||
Other |
8 |
|
6 |
|
5 |
|
2 |
|
21 |
|
|
3 |
|
5 |
|
8 |
|
16 |
|
|
|||||||||
Total (1) |
$ |
422 |
|
$ |
497 |
|
$ |
786 |
|
$ |
404 |
|
$ |
2,109 |
|
|
$ |
306 |
|
$ |
307 |
|
$ |
325 |
|
$ |
938 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Purchases of investments: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Transmission & |
$ |
— |
|
$ |
12 |
|
$ |
3 |
|
$ |
1 |
|
$ |
16 |
|
|
$ |
1 |
|
$ |
1 |
|
$ |
34 |
|
$ |
36 |
|
|
Northeast G&P |
47 |
|
61 |
|
34 |
|
63 |
|
205 |
|
|
27 |
|
30 |
|
47 |
|
104 |
|
|
|||||||||
West |
52 |
|
70 |
|
82 |
|
28 |
|
232 |
|
|
2 |
|
5 |
|
3 |
|
10 |
|
|
|||||||||
Total |
$ |
99 |
|
$ |
143 |
|
$ |
119 |
|
$ |
92 |
|
$ |
453 |
|
|
$ |
30 |
|
$ |
36 |
|
$ |
84 |
|
$ |
150 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Summary: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Transmission & |
$ |
204 |
|
$ |
267 |
|
$ |
546 |
|
$ |
253 |
|
$ |
1,270 |
|
|
$ |
186 |
|
$ |
182 |
|
$ |
226 |
|
$ |
594 |
|
|
Northeast G&P |
199 |
|
238 |
|
165 |
|
137 |
|
739 |
|
|
73 |
|
71 |
|
79 |
|
223 |
|
|
|||||||||
West |
110 |
|
129 |
|
189 |
|
104 |
|
532 |
|
|
74 |
|
85 |
|
96 |
|
255 |
|
|
|||||||||
Other |
8 |
|
6 |
|
5 |
|
2 |
|
21 |
|
|
3 |
|
5 |
|
8 |
|
16 |
|
|
|||||||||
Total |
$ |
521 |
|
$ |
640 |
|
$ |
905 |
|
$ |
496 |
|
$ |
2,562 |
|
|
$ |
336 |
|
$ |
343 |
|
$ |
409 |
|
$ |
1,088 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Capital investments: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Increases to property, plant, and equipment |
$ |
418 |
|
$ |
559 |
|
$ |
730 |
|
$ |
316 |
|
$ |
2,023 |
|
|
$ |
254 |
|
$ |
327 |
|
$ |
331 |
|
$ |
912 |
|
|
Purchases of businesses, net of cash acquired |
727 |
|
— |
|
1 |
|
— |
|
728 |
|
|
— |
|
— |
|
— |
|
— |
|
|
|||||||||
Purchases of investments |
99 |
|
143 |
|
119 |
|
92 |
|
453 |
|
|
30 |
|
36 |
|
84 |
|
150 |
|
|
|||||||||
Total |
$ |
1,244 |
|
$ |
702 |
|
$ |
850 |
|
$ |
408 |
|
$ |
3,204 |
|
|
$ |
284 |
|
$ |
363 |
|
$ |
415 |
|
$ |
1,062 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
(1) Increases to property, plant, and equipment |
$ |
418 |
|
$ |
559 |
|
$ |
730 |
|
$ |
316 |
|
$ |
2,023 |
|
|
$ |
254 |
|
$ |
327 |
|
$ |
331 |
|
$ |
912 |
|
|
Changes in related accounts payable and accrued liabilities |
4 |
|
(62) |
|
56 |
|
88 |
|
86 |
|
|
52 |
|
(20) |
|
(6) |
|
26 |
|
|
|||||||||
Capital expenditures |
$ |
422 |
|
$ |
497 |
|
$ |
786 |
|
$ |
404 |
|
$ |
2,109 |
|
|
$ |
306 |
|
$ |
307 |
|
$ |
325 |
|
$ |
938 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Contributions from noncontrolling interests |
$ |
4 |
|
$ |
28 |
|
$ |
— |
|
$ |
4 |
|
$ |
36 |
|
|
$ |
2 |
|
$ |
2 |
|
$ |
1 |
|
$ |
5 |
|
|
Contributions in aid of construction |
$ |
10 |
|
$ |
8 |
|
$ |
7 |
|
$ |
27 |
|
$ |
52 |
|
|
$ |
14 |
|
$ |
5 |
|
$ |
8 |
|
$ |
27 |
|
|
Proceeds from sale of businesses, net of cash divested |
$ |
(2) |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
(2) |
|
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
Proceeds from sale of partial interest in consolidated subsidiary |
$ |
— |
|
$ |
1,330 |
|
$ |
— |
|
$ |
4 |
|
$ |
1,334 |
|
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
Proceeds from disposition of equity-method investments |
$ |
— |
|
$ |
485 |
|
$ |
— |
|
$ |
— |
|
$ |
485 |
|
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
|
|
Non-GAAP Measures
This news release and accompanying materials may include certain financial measures – Adjusted EBITDA, adjusted income (“earnings”), adjusted earnings per share, distributable cash flow and dividend coverage ratio – that are non-GAAP financial measures as defined under the rules of the
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.
Distributable cash flow is defined as Adjusted EBITDA less maintenance capital expenditures, cash portion of net interest expense, income attributable to or dividends/ distributions paid to noncontrolling interests and cash income taxes, and certain other adjustments that management believes affects the comparability of results. Adjustments for maintenance capital expenditures and cash portion of interest expense include our proportionate share of these items of our equity-method investments. We also calculate the ratio of distributable cash flow to the total cash dividends paid (dividend coverage ratio). This measure reflects Williams’ distributable cash flow relative to its actual cash dividends paid.
This news release is accompanied by a reconciliation of these non-GAAP financial measures to their nearest GAAP financial measures. Management uses these financial measures because they are accepted financial indicators used by investors to compare company performance. In addition, management believes that these measures provide investors an enhanced perspective of the operating performance of assets and the cash that the business is generating.
Neither Adjusted EBITDA, adjusted income, nor distributable cash flow are intended to represent cash flows for the period, nor are they presented as an alternative to net income or cash flow from operations. They should not be considered in isolation or as substitutes for a measure of performance prepared in accordance with
Reconciliation of Income (Loss) from Continuing Operations Attributable to |
|
||||||||||||||||||||||||||||
(UNAUDITED) |
|
||||||||||||||||||||||||||||
|
2019 |
|
2020 |
|
|||||||||||||||||||||||||
(Dollars in millions, except per-share amounts) |
1st Qtr |
2nd Qtr |
3rd Qtr |
4th Qtr |
Year |
|
1st Qtr |
2nd Qtr |
3rd Qtr |
Year |
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Income (loss) from continuing operations attributable to The
|
$ |
194 |
|
$ |
310 |
|
$ |
220 |
|
$ |
138 |
|
$ |
862 |
|
|
$ |
(518) |
|
$ |
303 |
|
$ |
308 |
|
$ |
93 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Income (loss) from continuing operations - diluted earnings (loss) per common share (1) |
$ |
.16 |
|
$ |
.26 |
|
$ |
.18 |
|
$ |
.11 |
|
$ |
.71 |
|
|
$ |
(.43) |
|
$ |
.25 |
|
$ |
.25 |
|
$ |
.08 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Transmission & |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
$ |
— |
|
$ |
1 |
|
$ |
1 |
|
$ |
1 |
|
$ |
3 |
|
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
Northeast Supply Enhancement project development costs |
— |
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
3 |
|
3 |
|
6 |
|
|
|||||||||
Impairment of certain assets (2) |
— |
|
— |
|
— |
|
354 |
|
354 |
|
|
— |
|
— |
|
— |
|
— |
|
|
|||||||||
Pension plan settlement charge |
— |
|
— |
|
— |
|
— |
|
— |
|
|
4 |
|
1 |
|
— |
|
5 |
|
|
|||||||||
Adjustment of Transco’s regulatory asset for post-WPZ Merger state deferred income tax change consistent with filed rate case |
— |
|
— |
|
— |
|
— |
|
— |
|
|
2 |
|
— |
|
— |
|
2 |
|
|
|||||||||
Benefit of change in employee benefit policy |
— |
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
(3) |
|
(6) |
|
(9) |
|
|
|||||||||
Reversal of costs capitalized in prior periods |
— |
|
15 |
|
— |
|
1 |
|
16 |
|
|
— |
|
— |
|
10 |
|
10 |
|
|
|||||||||
Severance and related costs |
— |
|
22 |
|
14 |
|
3 |
|
39 |
|
|
1 |
|
1 |
|
(1) |
|
1 |
|
|
|||||||||
Total Transmission & |
— |
|
38 |
|
15 |
|
359 |
|
412 |
|
|
7 |
|
2 |
|
6 |
|
15 |
|
|
|||||||||
Northeast G&P |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Expenses associated with new venture |
3 |
|
6 |
|
1 |
|
— |
|
10 |
|
|
— |
|
— |
|
— |
|
— |
|
|
|||||||||
Share of early debt retirement gain at equity-method investment |
— |
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
(5) |
|
— |
|
(5) |
|
|
|||||||||
Share of impairment of certain assets at equity-method investment |
— |
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
— |
|
11 |
|
11 |
|
|
|||||||||
Pension plan settlement charge |
— |
|
— |
|
— |
|
— |
|
— |
|
|
1 |
|
— |
|
— |
|
1 |
|
|
|||||||||
Impairment of certain assets |
— |
|
— |
|
— |
|
10 |
|
10 |
|
|
— |
|
— |
|
— |
|
— |
|
|
|||||||||
Severance and related costs |
— |
|
10 |
|
(3) |
|
— |
|
7 |
|
|
— |
|
— |
|
— |
|
— |
|
|
|||||||||
Benefit of change in employee benefit policy |
— |
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
(2) |
|
(2) |
|
(4) |
|
|
|||||||||
Total Northeast G&P adjustments |
3 |
|
16 |
|
(2) |
|
10 |
|
27 |
|
|
1 |
|
(7) |
|
9 |
|
3 |
|
|
|||||||||
West |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Impairment of certain assets |
12 |
|
64 |
|
— |
|
24 |
|
100 |
|
|
— |
|
— |
|
— |
|
— |
|
|
|||||||||
Pension plan settlement charge |
— |
|
— |
|
— |
|
— |
|
— |
|
|
1 |
|
— |
|
— |
|
1 |
|
|
|||||||||
Benefit of change in employee benefit policy |
— |
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
(1) |
|
(2) |
|
(3) |
|
|
|||||||||
Adjustment of gain on sale of Four Corners assets |
2 |
|
— |
|
— |
|
— |
|
2 |
|
|
— |
|
— |
|
— |
|
— |
|
|
|||||||||
Severance and related costs |
— |
|
11 |
|
(1) |
|
— |
|
10 |
|
|
— |
|
— |
|
— |
|
— |
|
|
|||||||||
Total West adjustments |
14 |
|
75 |
|
(1) |
|
24 |
|
112 |
|
|
1 |
|
(1) |
|
(2) |
|
(2) |
|
|
|||||||||
Other |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Adjustment of Transco’s regulatory asset for post-WPZ Merger state deferred income tax change consistent with filed rate case |
12 |
|
— |
|
— |
|
— |
|
12 |
|
|
— |
|
— |
|
— |
|
— |
|
|
|||||||||
|
— |
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
— |
|
8 |
|
8 |
|
|
|||||||||
Reversal of costs capitalized in prior periods |
— |
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
— |
|
3 |
|
3 |
|
|
|||||||||
Accrual for loss contingencies associated with former operations |
— |
|
— |
|
9 |
|
(5) |
|
4 |
|
|
— |
|
— |
|
— |
|
— |
|
|
|||||||||
Severance and related costs |
— |
|
— |
|
— |
|
1 |
|
1 |
|
|
— |
|
— |
|
— |
|
— |
|
|
|||||||||
Total Other adjustments |
12 |
|
— |
|
9 |
|
(4) |
|
17 |
|
|
— |
|
— |
|
11 |
|
11 |
|
|
|||||||||
Adjustments included in Modified EBITDA |
29 |
|
129 |
|
21 |
|
389 |
|
568 |
|
|
9 |
|
(6) |
|
24 |
|
27 |
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Adjustments below Modified EBITDA |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Impairment of equity-method investments |
74 |
|
(2) |
|
114 |
|
— |
|
186 |
|
|
938 |
|
— |
|
— |
|
938 |
|
|
|||||||||
Impairment of goodwill (2) |
— |
|
— |
|
— |
|
— |
|
— |
|
|
187 |
|
— |
|
— |
|
187 |
|
|
|||||||||
Share of impairment of goodwill at equity-method investment |
— |
|
— |
|
— |
|
— |
|
— |
|
|
78 |
|
— |
|
— |
|
78 |
|
|
|||||||||
Adjustment of gain on deconsolidation of certain Permian assets |
2 |
|
— |
|
— |
|
— |
|
2 |
|
|
— |
|
— |
|
— |
|
— |
|
|
|||||||||
Loss on deconsolidation of |
— |
|
— |
|
— |
|
27 |
|
27 |
|
|
— |
|
— |
|
— |
|
— |
|
|
|||||||||
Gain on sale of equity-method investments |
— |
|
(122) |
|
— |
|
— |
|
(122) |
|
|
— |
|
— |
|
— |
|
— |
|
|
|||||||||
Allocation of adjustments to noncontrolling interests |
— |
|
(1) |
|
— |
|
(210) |
|
(211) |
|
|
(65) |
|
— |
|
— |
|
(65) |
|
|
|||||||||
|
76 |
|
(125) |
|
114 |
|
(183) |
|
(118) |
|
|
1,138 |
|
— |
|
— |
|
1,138 |
|
|
|||||||||
Total adjustments |
105 |
|
4 |
|
135 |
|
206 |
|
450 |
|
|
1,147 |
|
(6) |
|
24 |
|
1,165 |
|
|
|||||||||
Less tax effect for above items |
(26) |
|
(1) |
|
(34) |
|
(51) |
|
(112) |
|
|
(316) |
|
8 |
|
1 |
|
(307) |
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Adjusted income from continuing operations available to common stockholders |
$ |
273 |
|
$ |
313 |
|
$ |
321 |
|
$ |
293 |
|
$ |
1,200 |
|
|
$ |
313 |
|
$ |
305 |
|
$ |
333 |
|
$ |
951 |
|
|
Adjusted income from continuing operations - diluted earnings per common share (1) |
$ |
.22 |
|
$ |
.26 |
|
$ |
.26 |
|
$ |
.24 |
|
$ |
.99 |
|
|
$ |
.26 |
|
$ |
.25 |
|
$ |
.27 |
|
$ |
.78 |
|
|
Weighted-average shares - diluted (thousands) |
1,213,592 |
|
1,214,065 |
|
1,214,165 |
|
1,214,212 |
|
1,214,011 |
|
|
1,214,348 |
|
1,214,581 |
|
1,215,335 |
|
1,214,757 |
|
|
|||||||||
(1) The sum of earnings per share for the quarters may not equal the total earnings per share for the year due to changes in the weighted-average number of common shares outstanding. |
|
||||||||||||||||||||||||||||
(2) Our partners' |
|
||||||||||||||||||||||||||||
|
|
Reconciliation of Distributable Cash Flow (DCF) |
|
||||||||||||||||||||||||||||
(UNAUDITED) |
|
||||||||||||||||||||||||||||
|
2019 |
|
2020 |
|
|||||||||||||||||||||||||
(Dollars in millions, except coverage ratios) |
1st Qtr |
2nd Qtr |
3rd Qtr |
4th Qtr |
Year |
|
1st Qtr |
2nd Qtr |
3rd Qtr |
Year |
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Reconciliation of GAAP "Net Income (Loss)" to Non-GAAP "Modified EBITDA", "Adjusted EBITDA" and "Distributable cash flow" |
|
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net income (loss) |
$ |
214 |
|
$ |
324 |
|
$ |
242 |
|
$ |
(66) |
|
$ |
714 |
|
|
$ |
(570) |
|
$ |
315 |
|
$ |
323 |
|
$ |
68 |
|
|
Provision (benefit) for income taxes |
69 |
|
98 |
|
77 |
|
91 |
|
335 |
|
|
(204) |
|
117 |
|
111 |
|
24 |
|
|
|||||||||
Interest expense |
296 |
|
296 |
|
296 |
|
298 |
|
1,186 |
|
|
296 |
|
294 |
|
292 |
|
882 |
|
|
|||||||||
Equity (earnings) losses |
(80) |
|
(87) |
|
(93) |
|
(115) |
|
(375) |
|
|
(22) |
|
(108) |
|
(106) |
|
(236) |
|
|
|||||||||
Impairment of goodwill |
— |
|
— |
|
— |
|
— |
|
— |
|
|
187 |
|
— |
|
— |
|
187 |
|
|
|||||||||
Impairment of equity-method investments |
74 |
|
(2) |
|
114 |
|
— |
|
186 |
|
|
938 |
|
— |
|
— |
|
938 |
|
|
|||||||||
Other investing (income) loss - net |
(1) |
|
(124) |
|
(7) |
|
25 |
|
(107) |
|
|
(3) |
|
(1) |
|
(2) |
|
(6) |
|
|
|||||||||
Proportional Modified EBITDA of equity-method investments |
190 |
|
175 |
|
181 |
|
200 |
|
746 |
|
|
192 |
|
192 |
|
189 |
|
573 |
|
|
|||||||||
Depreciation and amortization expenses |
416 |
|
424 |
|
435 |
|
439 |
|
1,714 |
|
|
429 |
|
430 |
|
426 |
|
1,285 |
|
|
|||||||||
Accretion expense associated with asset retirement obligations for nonregulated operations |
9 |
|
8 |
|
8 |
|
8 |
|
33 |
|
|
10 |
|
7 |
|
10 |
|
27 |
|
|
|||||||||
(Income) loss from discontinued operations, net of tax |
— |
|
— |
|
— |
|
15 |
|
15 |
|
|
— |
|
— |
|
— |
|
— |
|
|
|||||||||
Modified EBITDA |
1,187 |
|
1,112 |
|
1,253 |
|
895 |
|
4,447 |
|
|
1,253 |
|
1,246 |
|
1,243 |
|
3,742 |
|
|
|||||||||
EBITDA adjustments |
29 |
|
129 |
|
21 |
|
389 |
|
568 |
|
|
9 |
|
(6) |
|
24 |
|
27 |
|
|
|||||||||
Adjusted EBITDA |
1,216 |
|
1,241 |
|
1,274 |
|
1,284 |
|
5,015 |
|
|
1,262 |
|
1,240 |
|
1,267 |
|
3,769 |
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Maintenance capital expenditures (1) |
(93) |
|
(130) |
|
(128) |
|
(113) |
|
(464) |
|
|
(52) |
|
(83) |
|
(144) |
|
(279) |
|
|
|||||||||
Preferred dividends |
(1) |
|
— |
|
(1) |
|
(1) |
|
(3) |
|
|
(1) |
|
— |
|
(1) |
|
(2) |
|
|
|||||||||
Net interest expense - cash portion (2) |
(304) |
|
(302) |
|
(301) |
|
(306) |
|
(1,213) |
|
|
(304) |
|
(304) |
|
(301) |
|
(909) |
|
|
|||||||||
Cash taxes |
3 |
|
85 |
|
(2) |
|
— |
|
86 |
|
|
— |
|
(2) |
|
— |
|
(2) |
|
|
|||||||||
Dividends and distributions paid to noncontrolling interests |
(41) |
|
(27) |
|
(20) |
|
(36) |
|
(124) |
|
|
(44) |
|
(54) |
|
(49) |
|
(147) |
|
|
|||||||||
Distributable cash flow |
$ |
780 |
|
$ |
867 |
|
$ |
822 |
|
$ |
828 |
|
$ |
3,297 |
|
|
$ |
861 |
|
$ |
797 |
|
$ |
772 |
|
$ |
2,430 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Common dividends paid |
$ |
460 |
|
$ |
461 |
|
$ |
461 |
|
$ |
460 |
|
$ |
1,842 |
|
|
$ |
485 |
|
$ |
486 |
|
$ |
485 |
|
$ |
1,456 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Coverage ratios: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Distributable cash flow divided by Common dividends paid |
1.70 |
|
1.88 |
|
1.78 |
|
1.80 |
|
1.79 |
|
|
1.78 |
|
1.64 |
|
1.59 |
|
1.67 |
|
|
|||||||||
Net income (loss) divided by Common dividends paid |
0.47 |
|
0.70 |
|
0.52 |
|
(0.14) |
|
0.39 |
|
|
(1.18) |
|
0.65 |
|
0.67 |
|
0.05 |
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
(1) Includes proportionate share of maintenance capital expenditures of equity-method investments. |
|
||||||||||||||||||||||||||||
(2) Includes proportionate share of interest expense of equity-method investments. |
|
Reconciliation of "Net Income (Loss)" to “Modified EBITDA” and Non-GAAP “Adjusted EBITDA” |
|
||||||||||||||||||||||||||||
(UNAUDITED) |
|
||||||||||||||||||||||||||||
|
2019 |
|
2020 |
|
|||||||||||||||||||||||||
(Dollars in millions) |
1st Qtr |
2nd Qtr |
3rd Qtr |
4th Qtr |
Year |
|
1st Qtr |
2nd Qtr |
3rd Qtr |
Year |
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net income (loss) |
$ |
214 |
|
$ |
324 |
|
$ |
242 |
|
$ |
(66) |
|
$ |
714 |
|
|
$ |
(570) |
|
$ |
315 |
|
$ |
323 |
|
$ |
68 |
|
|
Provision (benefit) for income taxes |
69 |
|
98 |
|
77 |
|
91 |
|
335 |
|
|
(204) |
|
117 |
|
111 |
|
24 |
|
|
|||||||||
Interest expense |
296 |
|
296 |
|
296 |
|
298 |
|
1,186 |
|
|
296 |
|
294 |
|
292 |
|
882 |
|
|
|||||||||
Equity (earnings) losses |
(80) |
|
(87) |
|
(93) |
|
(115) |
|
(375) |
|
|
(22) |
|
(108) |
|
(106) |
|
(236) |
|
|
|||||||||
Impairment of goodwill |
— |
|
— |
|
— |
|
— |
|
— |
|
|
187 |
|
— |
|
— |
|
187 |
|
|
|||||||||
Impairment of equity-method investments |
74 |
|
(2) |
|
114 |
|
— |
|
186 |
|
|
938 |
|
— |
|
— |
|
938 |
|
|
|||||||||
Other investing (income) loss - net |
(1) |
|
(124) |
|
(7) |
|
25 |
|
(107) |
|
|
(3) |
|
(1) |
|
(2) |
|
(6) |
|
|
|||||||||
Proportional Modified EBITDA of equity-method investments |
190 |
|
175 |
|
181 |
|
200 |
|
746 |
|
|
192 |
|
192 |
|
189 |
|
573 |
|
|
|||||||||
Depreciation and amortization expenses |
416 |
|
424 |
|
435 |
|
439 |
|
1,714 |
|
|
429 |
|
430 |
|
426 |
|
1,285 |
|
|
|||||||||
Accretion expense associated with asset retirement obligations for nonregulated operations |
9 |
|
8 |
|
8 |
|
8 |
|
33 |
|
|
10 |
|
7 |
|
10 |
|
27 |
|
|
|||||||||
(Income) loss from discontinued operations, net of tax |
— |
|
— |
|
— |
|
15 |
|
15 |
|
|
— |
|
— |
|
— |
|
— |
|
|
|||||||||
Modified EBITDA |
$ |
1,187 |
|
$ |
1,112 |
|
$ |
1,253 |
|
$ |
895 |
|
$ |
4,447 |
|
|
$ |
1,253 |
|
$ |
1,246 |
|
$ |
1,243 |
|
$ |
3,742 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Transmission & |
$ |
636 |
|
$ |
590 |
|
$ |
665 |
|
$ |
284 |
|
$ |
2,175 |
|
|
$ |
662 |
|
$ |
615 |
|
$ |
616 |
|
$ |
1,893 |
|
|
Northeast G&P |
299 |
|
303 |
|
345 |
|
367 |
|
1,314 |
|
|
369 |
|
370 |
|
387 |
|
1,126 |
|
|
|||||||||
West |
256 |
|
212 |
|
245 |
|
239 |
|
952 |
|
|
215 |
|
253 |
|
247 |
|
715 |
|
|
|||||||||
Other |
(4) |
|
7 |
|
(2) |
|
5 |
|
6 |
|
|
7 |
|
8 |
|
(7) |
|
8 |
|
|
|||||||||
Total Modified EBITDA |
$ |
1,187 |
|
$ |
1,112 |
|
$ |
1,253 |
|
$ |
895 |
|
$ |
4,447 |
|
|
$ |
1,253 |
|
$ |
1,246 |
|
$ |
1,243 |
|
$ |
3,742 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Adjustments included in Modified EBITDA (1): |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Transmission & |
$ |
— |
|
$ |
38 |
|
$ |
15 |
|
$ |
359 |
|
$ |
412 |
|
|
$ |
7 |
|
$ |
2 |
|
$ |
6 |
|
$ |
15 |
|
|
Northeast G&P |
3 |
|
16 |
|
(2) |
|
10 |
|
27 |
|
|
1 |
|
(7) |
|
9 |
|
3 |
|
|
|||||||||
West |
14 |
|
75 |
|
(1) |
|
24 |
|
112 |
|
|
1 |
|
(1) |
|
(2) |
|
(2) |
|
|
|||||||||
Other |
12 |
|
— |
|
9 |
|
(4) |
|
17 |
|
|
— |
|
— |
|
11 |
|
11 |
|
|
|||||||||
Total Adjustments included in Modified EBITDA |
$ |
29 |
|
$ |
129 |
|
$ |
21 |
|
$ |
389 |
|
$ |
568 |
|
|
$ |
9 |
|
$ |
(6) |
|
$ |
24 |
|
$ |
27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Transmission & |
$ |
636 |
|
$ |
628 |
|
$ |
680 |
|
$ |
643 |
|
$ |
2,587 |
|
|
$ |
669 |
|
$ |
617 |
|
$ |
622 |
|
$ |
1,908 |
|
|
Northeast G&P |
302 |
|
319 |
|
343 |
|
377 |
|
1,341 |
|
|
370 |
|
363 |
|
396 |
|
1,129 |
|
|
|||||||||
West |
270 |
|
287 |
|
244 |
|
263 |
|
1,064 |
|
|
216 |
|
252 |
|
245 |
|
713 |
|
|
|||||||||
Other |
8 |
|
7 |
|
7 |
|
1 |
|
23 |
|
|
7 |
|
8 |
|
4 |
|
19 |
|
|
|||||||||
Total Adjusted EBITDA |
$ |
1,216 |
|
$ |
1,241 |
|
$ |
1,274 |
|
$ |
1,284 |
|
$ |
5,015 |
|
|
$ |
1,262 |
|
$ |
1,240 |
|
$ |
1,267 |
|
$ |
3,769 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
(1) Adjustments by segment are detailed in the "Reconciliation of Income (Loss) from Continuing Operations Attributable to |
|
Reconciliation of GAAP "Net Income (Loss)" to Non-GAAP "Modified EBITDA", "Adjusted EBITDA" and "Distributable Cash Flow" |
||||||||||||
|
||||||||||||
|
2020 Guidance |
|
||||||||||
(Dollars in millions, except per share amounts and coverage ratio) |
Low |
|
Mid |
|
High |
|
||||||
|
|
|
|
|
|
|
||||||
Net income (loss) |
$ |
304 |
|
|
$ |
454 |
|
|
$ |
604 |
|
|
Provision (benefit) for income taxes |
|
|
134 |
|
|
|
|
|||||
Interest expense |
|
|
1,180 |
|
|
|
|
|||||
Equity (earnings) losses |
|
|
(450) |
|
|
|
|
|||||
Share of impairment of goodwill at equity-method investment |
|
|
78 |
|
|
|
|
|||||
Impairment of equity-method investments |
|
|
938 |
|
|
|
|
|||||
Impairment of goodwill |
|
|
187 |
|
|
|
|
|||||
Proportional Modified EBITDA of equity-method investments |
|
|
820 |
|
|
|
|
|||||
Depreciation and amortization expenses and accretion for asset retirement obligations associated with nonregulated operations |
|
|
1,750 |
|
|
|
|
|||||
Modified EBITDA |
$ |
4,941 |
|
|
$ |
5,091 |
|
|
$ |
5,241 |
|
|
EBITDA Adjustments (1) |
|
|
9 |
|
|
|
|
|||||
Adjusted EBITDA |
$ |
4,950 |
|
|
$ |
5,100 |
|
|
$ |
5,250 |
|
|
|
|
|
|
|
|
|
||||||
Net interest expense - cash portion (2) |
|
|
(1,215) |
|
|
|
|
|||||
Maintenance capital expenditures (2) |
(550) |
|
|
(500) |
|
|
(450) |
|
|
|||
Cash taxes |
|
|
60 |
|
|
|
|
|||||
Dividends and distributions paid to noncontrolling interests and other |
|
|
(195) |
|
|
|
|
|||||
Distributable cash flow (DCF) |
$ |
3,050 |
|
|
$ |
3,250 |
|
|
$ |
3,450 |
|
|
--Distributable cash flow per share (3) |
$ |
2.50 |
|
|
$ |
2.67 |
|
|
$ |
2.83 |
|
|
|
|
|
|
|
|
|
||||||
Dividends paid |
|
|
(1,950) |
|
|
|
|
|||||
Excess cash available after dividends |
$ |
1,100 |
|
|
$ |
1,300 |
|
|
$ |
1,500 |
|
|
|
|
|
|
|
|
|
||||||
Dividend per share |
|
|
$ |
1.60 |
|
|
|
|
||||
|
|
|
|
|
|
|
||||||
Coverage ratio (Distributable cash flow / Dividends paid) |
1.56x |
|
1.67x |
|
1.77x |
|
||||||
|
|
|
|