North American energy firm,
Williams Companies Inc.
) 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
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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
Williams Partners L.P.
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
Access Midstream Partners, L.P.
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
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.
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
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
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
), which currently holds a Zacks Rank #2 (Buy).