Williams Companies Beats on Earnings by a Penny - Analyst Blog

By
A A A

North American energy firm, Williams Companies Inc. ( WMB ) reported first quarter 2014 adjusted earnings from continuing operations of 28 cents per share, 27.3% higher than the prior-year quarter level of 22 cents. The bottom line also beat the Zacks Consensus Estimate by a penny. Improved performance by the company's core business segments and higher fee-based revenues aided the results.

The Williams Companies Inc - Quarterly Earnings Per Share | FindTheBest

However, for the quarter ending Mar 31, Williams Companies reported revenues of $1,749.0 million, down 3.4% year over year. Reported revenues also failed to meet the Zacks Consensus Estimate of $1,840.0 million. Results were affected by reduced NGL margins and the negative impact of the dropdown of the Canadian operations.

Segmental Analysis

Williams Partners: This segment reported adjusted operating profit of $563.0 million in the quarter, up 15.4% from $488.0 million in the year-ago quarter. Improved fee-based revenues aided the results, which was however partially offset by reduced NGL margins and an increase in operating costs.

Williams NGL & Petchem Services: The unit registered quarterly adjusted operating loss of $5.0 million, wider than the first quarter 2013 loss of $2.0 million. The results were impacted by the dropdown of certain Canadian operations to Williams Partners L.P. ( WPZ ).

Access Midstream Partners: The segment reported an adjusted operating profit of $6.0 million as a result of higher equity earnings from its stake in natural gas partnership Access Midstream Partners, L.P. ( ACMP ).

Other: The segment posted adjusted operating income of $3.0 million, compared with a loss of $5.0 million in the year-ago quarter.

Operating and Maintenance Expenses

Operating and maintenance expenses were recorded at $298.0 million, 14.6% higher than $260.0 million in the first quarter of 2013.

Capital Expenditure & Balance Sheet

During the reported quarter, Williams Companies' capital expenditure came in at $793.0 million. As of Mar 31, 2014, the company had long-term debt of $12,099.0 million, representing a debt-to-capitalization ratio of 72.4%. Williams Companies has a cash balance of about $1,064.0 million.   

Guidance

Williams Companies reiterated 2014 adjusted earnings per share in the range of $1.00-$1.20 (indicating a mid-point of $1.10). The same for 2015 is projected between $1.35 and $1.65 (mid-point $1.50).

Williams Companies anticipates total adjusted operating profit of $2,200.0-$2,600.0 million in 2014 and $2,820.0−$3,320.0 million in 2015.

Williams Companies restated its annual dividend payout growth projection at 20% for both 2014 and 2015.

Zacks Rank & Other Stock Picks

Williams Companies currently carries a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next one to three months.

Meanwhile, one can consider better-ranked players in the oil production and pipeline sector such as EQT Midstream Partners, LP ( EQM ), which currently holds a Zacks Rank #2 (Buy).



ACCESS MIDSTRM (ACMP): Free Stock Analysis Report

EQT MIDSTRM PTR (EQM): Free Stock Analysis Report

WILLIAMS COS (WMB): Free Stock Analysis Report

WILLIAMS PTNRS (WPZ): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Earnings , Stocks

Referenced Stocks: ACMP , EQM , WMB , WPZ

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

ColonialMills_USETBASITE
ColonialMills_USETBASITE            

Stocks

Referenced

Most Active by Volume

49,403,530
  • $7.21 ▲ 20.37%
37,908,915
  • $17.1431 ▲ 0.66%
25,164,360
  • $74.89 ▲ 1.05%
24,543,137
  • $33.61 ▲ 3.16%
24,409,123
  • $9.20 ▼ 2.34%
20,331,843
  • $101.18 ▲ 1.16%
19,708,295
  • $107.535 ▲ 0.52%
18,346,522
  • $4.06 ▼ 8.97%
As of 10/31/2014, 12:12 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com