On Aug. 2, 2017, Williams (NYSE: WMB) and Williams Partners (NYSE: WPZ) announced their financial results for the three and six months ended June 30, 2017.
- For Williams: 2Q 2017 Net Income of $81 Million
- For Williams: 2Q 2017 Adjusted EBITDA of $1.113 Billion, Up $48 Million
- For Williams Partners: 2Q 2017 Net Income of $320 Million
- For Williams Partners: 2Q 2017 Adjusted EBITDA of $1.104 Billion, Up $39 Million
- Williams Partners Has Placed 3 Transco Expansions (Dalton Expansion, Hillabee Phase 1 and Gulf Trace) Into Service So Far in 2017
CEO Perspective
Williams President and Chief Executive Officer, Alan Armstrong made the following comments:
“The second quarter demonstrated once again the long-term, sustainable benefits of our focused strategy as we recognized year-over-year growth in Adjusted EBITDA for the 15th consecutive quarter. We met or exceeded business performance expectations in Williams Partners’ remaining businesses, offset by weaker than expected performance at Geismar, which was impacted by a continuing outage and lower margins. Strong performance in the Atlantic-Gulf, coupled with expected growth for the balance of the year, gives us confidence in achieving our prior guidance on Adjusted EBITDA and DCF.
We continue to deliver on project execution as planned for 2017. So far this year, we have successfully brought into service three Transco expansion projects including the 1.2 Bcf/d Gulf Trace project, the 0.8 Bcf/d Hillabee Phase 1 project, and just this week, the 0.4 Bcf/d Dalton Expansion project. The line of sight to future growth is evident as well as we are targeting second-half 2017 in-service dates for three more fully-contracted growth projects including Virginia Southside II, New York Bay, and Garden State Phase 1.
“In addition to strong year-over-year fee-based revenue growth in the Atlantic-Gulf, we also saw gathered volumes in the West up approximately 4 percent versus first-quarter 2017, adjusted for the Marcellus-for-Permian transaction. While pipeline takeaway constraints continue to impact volumes in the Northeast, we remain well-positioned for volume growth as those constraints are lifted. We’re also pleased our Susquehanna and Ohio River Systems delivered year-over-year fee-based revenue growth. As we look ahead, around 97 percent of our gross margins will come from predictable fee-based sources now that we have successfully completed the sale of Geismar – reducing our commodity exposure and further strengthening our natural gas-focused strategy.
“We continue to see benefits from the reorganization of our operating areas and operational support functions such as safety and procurement. Continuous improvement in safety performance and project execution is another commitment that we are delivering on at the mid-point of 2017 and will continue to focus on as we move through the second half of the year.”