The Williams Companies Inc. Reports Operating Results (10-Q)
Williams Companies Inc has a market cap of $21.81 billion; its shares were traded at around $35.01 with a P/E ratio of 25.4 and P/S ratio of 2.8. The dividend yield of Williams Companies Inc stocks is 3.6%. Williams Companies Inc had an annual average earning growth of 0.3% over the past 10 years.
Highlight of Business Operations:We expect capital investments to total between $5.1 billion and $5.5 billion in 2012, excluding WPZ equity issued in the Laser and Caiman Acquisitions of approximately $1 billion. Of this total, maintenance capital expenditures, which are generally considered nondiscretionary and include expenditures to meet legal and regulatory requirements, to maintain and/or extend the operating capacity and useful lives of our assets, and to complete certain well connections, are expected to total between $465 million and $545 million. Expansion capital, which is generally more discretionary to fund projects in order to grow our business, is expected to total between $4.7 billion and $5 billion. See Results of Operations Segments, Williams Partners and Midstream Canada & Olefins for discussions describing the general nature of these investments. In addition, we retain the flexibility to adjust our planned levels of capital and investment expenditures in response to changes in economic conditions or business opportunities.
In July 2012, Transco received net proceeds of $395 million from the issuance of $400 million of 4.45 percent senior unsecured notes due in 2042. These proceeds were used to repay Transcos $325 million 8.875 percent notes and for general corporate purposes, including capital expenditures.
In August 2012, WPZ completed an equity issuance of 8,500,000 common units representing limited partner interests in them at a price of $51.43 per unit. Subsequently, WPZ sold an additional 1,275,000 common units for $51.43 per unit to the underwriters upon the underwriters exercise of their option to purchase additional common units. The net proceeds of $488 million were used to repay outstanding borrowings under the WPZ revolver and for general partnership purposes.
In January 2012, WPZ completed an equity issuance of 7,000,000 common units representing limited partner interests in them at a price of $62.81 per unit. In February 2012, WPZ sold an additional 1,050,000 common units for $62.81 per unit to the underwriters upon the underwriters exercise of their option to purchase additional common units. The net proceeds of $490 million were used to fund capital expenditures and for general partnership purposes.
In April 2012, WPZ completed the Caiman Acquisition in exchange for aggregate consideration of $1.72 billion in cash, net of purchase price adjustments, and 11,779,296 of WPZs common units. In connection with this acquisition, we made an additional investment in WPZ of $1 billion to facilitate the acquisition. We purchased 16,360,133 WPZ common units and have agreed to temporarily waive our incentive distribution rights (IDRs) related to these units and the units issued to the seller of Caiman Eastern Midstream, LLC, in connection with this acquisition. We estimate the foregone IDRs would have yielded approximately $24 million in 2012.
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