Williams and Williams Partners reported first quarter earnings this week.
Williams had $152 million in unaudited net income for the quarter as well as adjusted first quarter earnings of $1.135 billion. But the net income was down from $373 million reported last year at this time. The company blamed the drop on a transaction involving certain joint-venture interests in the Permian Basin and Marcellus shale.
Williams Partners reported unaudited first-quarter 2018 net income attributable to controlling interests of $360 million, a $274 million decrease from first-quarter 2017.
Here is how the company attributed some of the declines.
“Commodity margins were $59 million lower due primarily to the absence of margins from the Geismar olefins facility, which was sold July 6, 2017. The unfavorable change also reflects the absence of $43 million of gains on early retirement of debt and contract settlements and terminations, and $25 million lower equity earnings due primarily to lower earnings at Discovery Producer Services. Partially offsetting the decreases were $90 million increased service revenues due primarily to Williams Partners’ Transco expansions and higher gathered volumes in the Williams Partners’ West business segment and $43 million lower operating and maintenance (O&M) and selling, general and administrative (SG&A) expenses.”
The adjusted earnings before taxes was $1.135 billion, which was a $10 million drop from the first quarter of 2017.
Alan Armstrong, president and chief executive officer, made the following comments:
“The organization utilized our stable foundation of advantaged positions to deliver another impressive quarter of steady growth driven once again by our consistent fee-based revenue growth as all three of our current business segments demonstrated year-over-year improvement in Adjusted EBITDA.
Williams Partners reported first-quarter 2018 Adjusted EBITDA of $1.122 billion, a $5 million increase over first-quarter 2017. The partnership’s current business segments improved by $53 million over the same time period in 2017, driven by $58 million increased revenues from Transco expansion projects being placed into service in 2017 and 2018 and a $14 million increase in natural gas liquids margins.