- Net Income is $143 Million, $0.24 Per Share for 3Q - Recurring
Adjusted Income is $147 Million, $0.25 Per Share for 3Q: Up 27%
Versus 2Q - Recurring Adjusted EPS Guidance Increased 18% for '09 -
Higher Expected NGL Margins, Gas Prices, Lower Costs Drive Guidance
Increase TULSA, Okla., Oct. 29 /PRNewswire-FirstCall/ -- Williams
(NYSE:WMB) announced unaudited net income attributable to Williams,
for third-quarter 2009 of $143 million, or $0.24 per share on a
diluted basis, compared with net income of $366 million, or $0.62
per share on a diluted basis for third-quarter 2008. Quarterly
Summary Financial Information Per share amounts are reported on a
diluted basis. 3Q 2009 3Q 2008 All amounts are attributable
------------------- ------------------- to The Williams Companies,
Inc. millions per share millions per share -------- ---------
-------- --------- Income from continuing operations $141 $0.24
$360 $0.61 Income from discontinued operations 2 - 6 0.01 ----
----- ---- ----- Net income $143 $0.24 $366 $0.62 ==== ===== ====
=====
--------------------------------------------------------------------------
Recurring income from continuing operations* $140 $0.24 $361 $0.61
After-tax mark-to-market adjustments 7 0.01 (38) ($0.06) ---- -----
---- ----- Recurring income from continuing operations - after
mark-to-market adjustments* $147 $0.25 $323 $0.55 ==== ===== ====
===== Year-to-Date Summary Financial Information Per share amounts
are reported on a diluted basis. YTD 2009 YTD 2008 All amounts are
attributable ------------------- ------------------- to The
Williams Companies, Inc. millions per share millions per share
-------- --------- -------- --------- Income from continuing
operations $266 $0.45 $1,183 $1.99 Income (loss) from discontinued
operations (153) (0.26) 120 0.20 ---- ----- ---- ----- Net income
$113 $0.19 $1,303 $2.19 ==== ===== ==== =====
--------------------------------------------------------------------------
Recurring income from continuing operations* $366 $0.62 $1,089
$1.83 After-tax mark-to-market adjustments 26 0.05 (30) ($0.05)
---- ----- ---- ----- Recurring income from continuing operations -
after mark-to-market adjustments* $392 $0.67 $1,059 $1.78 ====
===== ==== ===== * A schedule reconciling income from continuing
operations to recurring income from continuing operations and
mark-to-market adjustments (non-GAAP measures) is available at
http://www.williams.com/ and as an attachment to this press
release. Lower energy commodity prices in third-quarter 2009,
compared to the relatively high prices in third-quarter 2008,
impacted results in Exploration & Production and Midstream, as
both businesses' results were lower than third-quarter 2008.
However, the company's overall results are improved compared with
second-quarter 2009. Gas Pipeline's results, as expected, were
relatively steady despite the much lower commodity prices. Other
factors that served to mitigate the effect of lower commodity
prices include higher natural gas production; Exploration &
Production's hedge positions, which cover a significant portion of
its production; and fee-based revenues from certain of Midstream's
gathering and processing services. Year-to-date through Sept. 30,
Williams reported net income attributable to Williams of $113
million, or $0.19 per share on a diluted basis, compared with net
income of $1,303 million, or $2.19 per share, for the first three
quarters of 2008. The year-to-date loss from discontinued
operations is primarily due to the charges associated with the
company's operations in Venezuela that were recorded in
first-quarter 2009. As a result of the Venezuelan government's
expropriation of the El Furrial and PIGAP II compression facilities
in May, Williams is now reporting the results of those operations
in discontinued operations. In addition to the losses associated
with the Venezuelan operations, the previously noted lower energy
commodity prices compared with the relatively high prices in 2008
also negatively affected the year-to-date 2009 results. The 2008
results through three quarters also benefited from $148 million in
pre-tax gains on the sale of certain international interests.
Recurring Results Adjusted for Effect of Mark-to-Market Accounting
Recurring income from continuing operations, after adjustments to
remove the effect of mark-to-market accounting for certain hedges
and other derivatives in Gas Marketing Services, was $147 million,
or $0.25 per share for third-quarter 2009. On the same adjusted
basis, recurring income from continuing operations was $323
million, or $0.55 per share, for third-quarter 2008. For the first
three quarters of 2009, recurring income from continuing operations
after mark-to-market adjustments was $392 million, or $0.67 per
share; compared with $1,059 million, or $1.78 per share, for the
same period in 2008. The lower recurring adjusted results for both
the third-quarter and year-to-date periods were also due to the
large disparity between the relatively low 2009 commodity prices
compared with the 2008 prices, particularly in the first half of
the year. As previously noted, the relatively steady results in Gas
Pipeline, as well as higher natural gas production, Exploration
& Production's hedge positions and fee-based revenues in
Midstream, partially offset some of the negative effect of lower
commodity prices. While the 2009 recurring adjusted results are
lower compared with 2008, the third-quarter 2009 results are up 27
percent compared with second-quarter 2009 results, which represent
a more comparable commodity price environment. A reconciliation of
the company's income from continuing operations to recurring income
from continuing operations and mark-to-market adjustments is
available at http://www.williams.com/ and as an attachment to this
news release. 2009 Guidance Increased, 2010-11 Guidance Unchanged
Williams is updating its outlook for full-year 2009 commodity price
assumptions and its earnings and capital expenditures, which it
previously provided on Sept. 10. The following chart shows the
updated guidance for 2009, as well as guidance for 2010 and 2011,
which are both unchanged from the Sept. 10 guidance. Williams'
2009-2011 Outlook 2009 2010 2011
------------------------------------------------------------------------
As of Oct. 29, 2009 Natural Gas ($/MMBtu) NYMEX $3.95 - $4.35 $4.50
- $7.00 $5.00 - $8.00 Rockies $3.00 - $3.40 $3.90 - $6.10 $4.35 -
$6.95 San Juan/Mid-Continent Avg. $3.15 - $3.55 $4.05 - $6.35 $4.55
- $7.30 Crude Oil - WTI ($/barrel) $55 - $60 $60 - $90 $65 - $95
Crude-to-Natural Gas Ratio 13.8x - 13.9x 12.9x - 13.3x 11.9x -
13.0x Average NGL Margins ($/gallon) $0.35 - $0.37 $0.35 - $0.67
$0.38 - $0.64 Capital Expenditures Incurred* $2,450 - $2,675 $1,900
- $2,675 $2,300 - $3,800 Recurring Adj. Segment Profit* $1,750 -
$1,900 $1,575 - $2,775 $1,850 - $3,450 Recurring Adj. Earnings Per
Share* $0.95 - $1.00 $0.80 - $1.90 $1.10 - $2.65 * Capital
Expenditures Incurred and Recurring Adjusted Segment Profit are in
millions of dollars. Capital Expenditures Incurred includes
increase in property, plant and equipment plus purchase of
investments. Recurring Segment Profit and Earnings Per Share are
adjusted to remove the effect of mark-to-market accounting and EPS
is diluted. The company is increasing 2009 recurring adjusted
segment profit guidance from a range of $1,525 million to $1,800 to
a range of $1,750 million to $1,900 million. Guidance for recurring
adjusted earnings per share is also increasing from a range of
$0.75 to $0.90 to a range of $0.95 to $1.00. The updated guidance
for 2009 reflects higher expected NGL margins in Midstream as well
as higher expected average net realized prices for natural gas and
lower costs in Exploration & Production. The company has
slightly reduced its expected capital expenditures for 2009,
reflecting the company's continuing efforts to reduce operating and
capital project costs. CEO Perspective "Williams has delivered
steadily improving results throughout a difficult 2009 and we are
now poised to deliver significant earnings growth and value
creation," said Steve Malcolm, chairman, president and chief
executive officer. "Forward market commodity prices are now above
the midpoints of our 2010-11 assumptions, which have us approaching
our record-level of earnings from 2008 over the next two years. And
this is in a much more sustainable and lower commodity price
environment," Malcolm said. "We're planning on investing in
significant growth opportunities over the next two years. The
Piceance Basin, where we have continued to build scale, holds a
vast inventory of low risk, high return projects across all of our
businesses. "As expected, Rockies gas prices are increasing and the
basis differential is improving, which only enhances the strong
returns on our projects," Malcolm said. Business Segment
Performance 3Q YTD Consolidated Segment Profit -------------
---------------- Amounts in millions 2009 2008 2009 2008
Exploration & Production $106 $361 $303 $1,287 Midstream Gas
& Liquids 222 229 371 737 Gas Pipeline 157 173 498 532 ----
---- ------ ------ $485 $763 $1,172 $2,556 Gas Marketing Services
($6) $16 ($14) ($9) Other (1) (2) 3 (2) ---- ---- ------ ------
Consolidated Segment Profit $478 $777 $1,161 $2,545 ==== ====
====== ====== Recurring Consolidated Segment Profit After
Mark-to-Market 3Q YTD Adjustments* ------------- ----------------
Amounts in millions 2009 2008 2009 2008 Exploration &
Production $102 $379 $339 $1,162 Midstream Gas & Liquids 217
223 435 729 Gas Pipeline 157 163 498 513 ---- ---- ------ ------
$476 $765 $1,272 $2,404 Gas Marketing after MTM Adjustments $6
($45) $27 ($58) Other (1) (2) 3 (2) ---- ---- ------ ------
Recurring Consolidated Segment Profit After Mark-to-Market
Adjustments $481 $718 $1,302 $2,344 ==== ==== ====== ====== * A
schedule reconciling income from continuing operations to recurring
income from continuing operations and mark-to-market adjustments
(non-GAAP measures) is available at http://www.williams.com/ and as
an attachment to this press release. Exploration & Production
Exploration & Production includes natural gas production and
development in the U.S. Rocky Mountains, San Juan Basin, Barnett
Shale, and oil and gas development in South America. The company
also made its initial investment in the Marcellus Shale earlier in
2009. The business reported segment profit of $106 million for
third-quarter 2009, compared with segment profit of $361 million in
third-quarter 2008. The significant decline in segment profit
during the third quarter was due to much lower net realized average
prices for natural gas, partially offset by higher production
volumes and lower costs and expenses, including operating taxes.
These higher production volumes, coupled with higher capital costs
in prior years, resulted in higher depletion, depreciation and
amortization expense during the third quarter. Although natural gas
production grew from third-quarter 2008 to third-quarter 2009,
production is expected to decline somewhat throughout the remainder
of 2009 because of the company's reduced drilling activity. Average
daily natural gas production on U.S. interests has fallen 6 percent
from first-quarter to third-quarter 2009. Average Daily Production
3Q Amounts in million cubic feet --------------- equivalent of
natural gas (MMcfe) 2009 2008 Growth rate ----- ---- -----------
Piceance Basin 697 657 6% Powder River Basin 224 225 0% Other
Basins 227 214 6% U.S. Interests only 1,148 1,096 5% U.S. &
International Interests 1,202 1,146 5% During third-quarter 2009,
Williams' net realized average price for U.S. production was $4.18
per thousand cubic feet of natural gas equivalent (Mcfe), which was
40 percent lower than the $6.97 per Mcfe realized in third-quarter
2008. For the nine months of 2009, the exploration and production
business reported a segment profit of $303 million, compared with
$1,287 million for the first nine months of 2008. The primary
driver of the lower segment profit in the first nine months of 2009
was a 43 percent decline in the net realized average price for
natural gas. Also, the 2008 period benefited from $148 million in
pre-tax gains on the sale of certain international interests. Lower
operational costs and expenses partially offset these negative
impacts in the year-to-date period. Midstream Gas & Liquids
Midstream provides natural gas gathering and processing, deepwater
production handling and oil transportation, natural gas liquid
(NGL) fractionation and storage services and olefins production.
The business reported a segment profit of $222 million for
third-quarter 2009, compared with segment profit of $229 million
for third-quarter 2008. The slight decline in segment profit for
the quarter is primarily because of lower NGL and olefin prices,
partially offset by decreased production costs reflecting lower
natural gas prices. Higher NGL equity volumes and higher fee-based
revenues also helped mitigate the lower NGL prices. The increase in
fee-based revenue for the quarter was attributable to connecting
new supplies in the deepwater Gulf of Mexico through the Blind
Faith extension in late 2008, as well as the first partial quarter
of processing natural gas production at Willow Creek. The higher
NGL equity volumes in the quarter were primarily due to the absence
of a number of unfavorable factors in third-quarter 2008, including
impacts from hurricanes in the Gulf of Mexico. Year-to-date through
Sept. 30, Midstream's segment profit was $371 million, compared
with $737 million for the same period in 2008. The significant
decline, compared with the same period in 2008, is due primarily to
lower NGL and olefin prices, especially in the first half of the
year. These lower prices were partially offset by decreased
production costs reflecting lower natural gas prices. In addition,
the year-to-date results were unfavorably impacted by a $75 million
loss related to the impairment of Midstream's investment in the
Accroven assets in Venezuela. Gas Pipeline Gas Pipeline, which
primarily delivers natural gas to markets along the Eastern
Seaboard, in Florida and in the Pacific Northwest, reported
third-quarter 2009 segment profit of $157 million, compared with
$173 million for third-quarter 2008. Higher operating and
maintenance, depreciation and pension expenses and the absence of a
$10 million gain in 2008 were the drivers of the decrease in
third-quarter segment profit. These were partially offset by lower
project development costs. Year-to-date through Sept. 30, Gas
Pipeline reported segment profit of $498 million, compared with
$532 million for the same period in 2008. The lower segment profit
was due primarily to higher operating costs, partially offset by
higher other service revenues and by lower project development
costs. The 2008 results also included the benefit of a $9 million
gain on sale of excess natural gas inventory in the second quarter
and the $10 million gain in the third quarter noted above. Gas
Marketing Services Gas Marketing Services is responsible for
supporting Williams' natural gas businesses by providing marketing
and risk management services. These services primarily include
marketing and hedging the gas produced by Exploration &
Production, and procuring fuel and shrink gas and hedging NGLs for
Midstream. In addition, Gas Marketing manages various natural gas
related contracts, such as transportation, storage, and related
hedges. It also provides marketing services to third-parties, such
as producers and processing companies. The segment also manages
certain legacy natural gas contracts and positions that previously
were reported in the former power business, which have been reduced
to a minimal level and will conclude by the end of 2010. Gas
Marketing Recurring Segment Profit Adjusted for Mark-to-Market 3Q
YTD Effect* ------------- -------------- Amounts in millions 2009
2008 2009 2008 Segment profit (loss) ($6) $16 ($14) ($9)
Nonrecurring adjustments - - - - --- ---- ---- ---- Recurring
segment profit (loss) ($6) $16 ($14) ($9) Mark-to-market
adjustments 12 (61) 41 (49) --- ---- ---- ---- Recurring segment
profit (loss) after MTM adjustments $6 ($45) $27 ($58) === ====
==== ==== * A schedule reconciling income from continuing
operations to recurring income from continuing operations and
mark-to-market adjustments (non-GAAP measures) is available at
http://www.williams.com/ and as an attachment to this press
release. The improvement in Gas Marketing's third-quarter recurring
segment loss after mark-to-market adjustments primarily resulted
from a $31 million increase in realized gains associated with
storage contracts executed to hedge natural gas storage activity
and by the absence of a $24 million unfavorable adjustment to the
carrying value of our natural gas storage inventory in 2008. The
improvement in Gas Marketing's year-to-date recurring adjusted
results was primarily the result of a $33 million increase in
realized revenues associated with storage contracts, a $25 million
decrease in inventory valuation adjustments related to natural gas
owned in storage and a $19 million decrease in realized losses
associated with certain legacy and proprietary trading positions.
Although not significant for the third-quarter 2009 results, the
company expects in the future to have some level of mark-to-market
volatility in Gas Marketing Services, primarily from natural gas
storage hedging. Williams' Liquidity, Financial Strength Remain
Strong As of Oct. 23, 2009, Williams had approximately $1.7 billion
of cash and cash equivalents, which included approximately $635
million held by certain domestic and international subsidiaries or
margin deposits held on behalf of counterparties. The company also
had approximately $1.9 billion of available credit capacity under
the company's credit facilities. Williams' total liquidity as of
Oct. 23 was approximately $3.6 billion. Williams has no significant
debt maturities until 2011 and the company's $1.43 billion primary
credit facility does not expire until May 2012. Williams is rated
investment grade by three of the major rating agencies. Today's
Analyst Call Management will discuss the third-quarter 2009 results
and outlook for 2009 during a live webcast beginning at 9:30 a.m.
EDT today. Participants are encouraged to access the webcast and
corresponding slides for viewing, downloading and printing at
http://www.williams.com/. A limited number of phone lines will be
available at (877) 719-9791. International callers should dial
(719) 325-4800. Replays of the third-quarter webcast, in both
streaming and downloadable podcast formats, will be available for
two weeks at http://www.williams.com/ following the event. Form
10-Q The company plans to file its Form 10-Q with the Securities
and Exchange Commission today. The document will be available on
both the SEC and Williams websites. About Williams (NYSE:WMB)
Williams, through its subsidiaries, finds, produces, gathers,
processes and transports natural gas. Williams' operations are
concentrated in the Pacific Northwest, Rocky Mountains, Gulf Coast,
and Eastern Seaboard. More information is available at
http://www.williams.com. Go to
http://www.b2i.us/irpass.asp?BzID=630&to=ea&s=0 to join our
e-mail list. Contact: Jeff Pounds Williams (media relations) (918)
573-3332 Travis Campbell Williams (investor relations) (918)
573-2944 Richard George Williams (investor relations) (918)
573-3679 Sharna Reingold Williams (investor relations) (918)
573-2078 Our reports, filings, and other public announcements may
contain or incorporate by reference statements that do not directly
or exclusively relate to historical facts. Such statements are
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. You typically can
identify forward-looking statements by the use of forward-looking
words, such as "anticipates," believes," "could," "may," "should,"
"continues," "estimates," "expects," "forecasts," "intends,"
"might," "objectives," "planned," "potential," "projects,"
"scheduled," "will," or other similar expressions. These statements
are based on our present intentions and our assumptions about
future events and are subject to risks, uncertainties, and other
factors. In addition to any assumptions, risks, uncertainties or
other factors referred to specifically in connection with such
statements, other factors not specifically referenced could cause
our actual results to differ materially from the results expressed
or implied in any forward-looking statements. Those factors
include, among others: -- availability of supplies (including the
uncertainties inherent in assessing, estimating, acquiring and
developing future natural gas reserves), market demand, volatility
of prices, and the availability and cost of capital; -- inflation,
interest rates, fluctuation in foreign exchange, and general
economic conditions (including the current economic slowdown and
the disruption of global credit markets and the impact of these
events on our customers and suppliers); -- the strength and
financial resources of our competitors; -- development of
alternative energy sources; -- the impact of operational and
development hazards; -- costs of, changes in, or the results of
laws, government regulations (including proposed climate change
legislation), environmental liabilities, litigation, and rate
proceedings; -- our costs and funding obligations for defined
benefit pension plans and other postretirement benefit plans; --
changes in maintenance and construction costs; -- changes in the
current geopolitical situation; -- our exposure to the credit risk
of our customers; -- risks related to strategy and financing,
including restrictions stemming from our debt agreements, future
changes in our credit ratings and the availability and cost of
credit; -- risks associated with future weather conditions; -- acts
of terrorism, and additional risks described in our filings with
the Securities and Exchange Commission. Given the uncertainties and
risk factors that could cause our actual results to differ
materially from those contained in any forward-looking statement,
we caution investors not to unduly rely on our forward-looking
statements. In addition to causing our actual results to differ,
the factors listed above may cause our intentions to change. Such
changes in our intentions may also cause our results to differ. We
disclaim any obligation to and do not intend to publicly update or
revise any forward-looking statements or changes to our intentions,
whether as a result of new information, future events or otherwise.
Reconciliation of Income from Continuing Operations Attributable to
The Williams Companies, Inc. to Recurring Earnings (UNAUDITED)
(Dollars in millions, 2008 except per-share
------------------------------------------ amounts) 1st Qtr 2nd Qtr
3rd Qtr 4th Qtr Year
--------------------------------------------------------------------
Income from continuing operations attributable to The Williams
Companies, Inc. available to common stockholders $411 $412 $360
$123 $1,306 ======= ======= ======= ======= ======= Income from
continuing operations - diluted earnings per common share $0.69
$0.69 $0.61 $0.21 $2.21 ======= ======= ======= ======= =======
Nonrecurring items: Exploration & Production (E&P)
------------------------------ Gain on sale of Peru interests
$(118) $(30) $- $- $(148) Reserve for receivables from bankrupt
counterparty - 5 4 - 9 Impairments of property in the Arkoma basin
- - 14 129 143 Accrual for Wyoming severance taxes - - - 34 34
Penalties from early release of drilling rigs - - - - - -------
------- ------- ------- ------- Total Exploration & Production
nonrecurring items (118) (25) 18 163 38 Gas Pipeline -------------
Gain on sale of excess inventory gas - TGPL - (9) - - (9) Gain on
sale of certain south Texas assets - TGPL - - (10) - (10) -------
------- ------- ------- ------- Total Gas Pipeline nonrecurring
items - (9) (10) - (19) Midstream Gas & Liquids (MGL)
------------------------------ Impairment of Carbonate Trend
pipeline - - - 6 6 Involuntary conversion gain related to Ignacio
gas processing plant - (3) (6) (3) (12) Reserve for receivables
from bankrupt counterparty - 1 - - 1 Final earnout payment from
2005 Gulf Liquids asset sale - - (8) - (8) Charges from Hurricanes
Gustav & Ike - - 8 5 13 Involuntary conversion gain from
hurricane damage at Cameron - - - (5) (5) Gulf Liquids litigation
partial settlement - - - (32) (32) Loss from Venezuela investment -
- - - - ------- ------- ------- ------- ------- Total Midstream Gas
& Liquids nonrecurring items - (2) (6) (29) (37) -------
------- ------- ------- ------- Nonrecurring items included in
segment profit (loss) (118) (36) 2 134 (18) Nonrecurring items
below segment profit (loss) ------------------------ Interest
related to Gulf Liquids litigation partial settlement - MGL - - -
(11) (11) Interest related to Wyoming severance taxes - E&P - -
- 4 4 Loss associated with Venezuela investment - E&P - - - - -
Reversal of litigation contingency - Corporate - - - - - Impairment
of cost-based investment - Corporate - - - - - ------- -------
------- ------- ------- - - - (7) (7) Total nonrecurring items
(118) (36) 2 127 (25) Tax effect for above items (45) (14) 1 49 (9)
------- ------- ------- ------- ------- Recurring income from
continuing operations available to common stockholders $338 $390
$361 $201 $1,290 ======= ======= ======= ======= ======= Recurring
diluted earnings per common share $0.57 $0.66 $0.61 $0.34 $2.18
======= ======= ======= ======= ======= Weighted-average shares -
diluted (thousands) 598,627 596,187 589,138 587,057 592,719
(Dollars in millions, 2009 except per-share
--------------------------------- amounts) 1st Qtr 2nd Qtr 3rd Qtr
Year -----------------------------------------------------------
Income from continuing operations attributable to The Williams
Companies, Inc. available to common stockholders $2 $123 $141 $266
======= ======= ======= ======= Income from continuing operations -
diluted earnings per common share $- $0.21 $0.24 $0.45 =======
======= ======= ======= Nonrecurring items: Exploration &
Production (E&P) ------------------------------- Gain on sale
of Peru interests $- $- $- $- Reserve for receivables from bankrupt
counterparty - - - - Impairments of property in the Arkoma basin 5
- - 5 Accrual for Wyoming severance taxes - 3 (4) (1) Penalties
from early release of drilling rigs 34 (2) - 32 ------- -------
------- ------- Total Exploration & Production nonrecurring
items 39 1 (4) 36 Gas Pipeline ------------- Gain on sale of excess
inventory gas - TGPL - - - - Gain on sale of certain south Texas
assets - TGPL - - - - ------- ------- ------- ------- Total Gas
Pipeline nonrecurring items - - - - Midstream Gas & Liquids
(MGL) ------------------------------ Impairment of Carbonate Trend
pipeline - - - - Involuntary conversion gain related to Ignacio gas
processing plant 1 - (5) (4) Reserve for receivables from bankrupt
counterparty - - - - Final earnout payment from 2005 Gulf Liquids
asset sale - - - - Charges from Hurricanes Gustav & Ike - - - -
Involuntary conversion gain from hurricane damage at Cameron - - -
- Gulf Liquids litigation partial settlement - - - - Loss from
Venezuela investment 68 - - 68 ------- ------- ------- -------
Total Midstream Gas & Liquids nonrecurring items 69 - (5) 64
------- ------- ------- ------- Nonrecurring items included in
segment profit (loss) 108 1 (9) 100 Nonrecurring items below
segment profit (loss) ------------------------ Interest related to
Gulf Liquids litigation partial settlement - MGL - - - - Interest
related to Wyoming severance taxes - E&P - - - - Loss
associated with Venezuela investment - E&P 11 - - 11 Reversal
of litigation contingency - Corporate - (5) - (5) Impairment of
cost-based investment - Corporate - - 7 7 ------- ------- -------
------- 11 (5) 7 13 Total nonrecurring items 119 (4) (2) 113 Tax
effect for above items 15 (1) (1) 13 ------- ------- -------
------- Recurring income from continuing operations available to
common stockholders $106 $120 $140 $366 ======= ======= =======
======= Recurring diluted earnings per common share $0.18 $0.20
$0.24 $0.62 ======= ======= ======= ======= Weighted-average shares
- diluted (thousands) 582,361 588,780 590,059 588,693 Note: 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. Adjustment to
remove MTM effect Dollars in millions except for per share amounts
3rd Quarter YTD -------------- -------------- 2009 2008* 2009 2008*
----- ----- ----- ----- Recurring income from cont. ops available
to common shareholders $140 $361 $366 $1,089 Recurring diluted
earnings per common share $0.24 $0.61 $0.62 $1.83 Mark-to-Market
(MTM) adjustments for Gas Marketing 12 (61) 41 (49) Tax effect of
total MTM adjustments (5) 23 (15) 19 ----- ----- ----- ------ After
tax MTM adjustments 7 (38) 26 (30) Recurring income from cont. ops
available to common shareholders after MTM adjust. $147 $323 $392
$1,059 Recurring diluted earnings per share after MTM adj. $0.25
$0.55 $0.67 $1.78 weighted average shares - diluted (thousands)
590,059 589,138 588,693 594,630 Note: all amounts attributable to
Williams Adjustments have been made to reverse estimated forward
unrealized MTM gains/losses and add estimated realized gains/losses
from MTM previously recognized, i.e. assumes MTM accounting had
never been applied to designated hedges and other derivatives. Some
annual figures may differ from sum of quarterly figures due to
rounding. * Amounts have been recast to reflect certain Venezuela
operations as discontinued operations. DATASOURCE: Williams
CONTACT: media relations, Jeff Pounds, +1-918-573-3332, or investor
relations, Travis Campbell, +1-918-573-2944, or Richard George,
+1-918-573-3679, or Sharna Reingold, +1-918-573-2078, all of
Williams Web Site: http://www.williams.com/
Copyright
