Tulsa-based Williams Companies Inc. reported on Wednesday a first quarter net loss of $65 million, or 9 cents per share, compared to 2015’s first quarter gain of $70 million, or 9 cents per share, according to a company press release and a news report published in The Tulsa World.
The company’s first quarter 2016 adjusted income was $26 million, or $0.03 per share, compared with $122 million, or $0.16 per share, posted in the first quarter of 2015. The statement indicates the decline primarily stems from higher interest expense and a lower allocation of net income to Williams associated with an IDR waiver from the termination of the Williams Partners merger agreement.
Williams Partners, the natural gas and natural gas liquids processing and pipeline arm of the company, reported net income of $50 million. The first quarter profit was down from $89 million which was reported at the same time last year.
“To help offset the effects of low commodity prices and slower near-term growth among producers, we continue to aggressively manage our costs and we made additional cost cutting decisions at the end of the first quarter, including reducing our workforce by 10 percent,” said Alan Armstrong, Williams’ president and chief executive officer.
“For the balance of 2016, we expect additional cash flow from recently completed expansions and new projects coming into service in the second and third quarters. Our fully contracted natural gas transmission business coming on in 2017 and 2018 will drive growth in the supply basins we serve,” said Armstrong.
According to the company’s statement, the Williams Board remains unanimously committed to the Energy Transfer Equity merger to ensure delivery of the merger benefits to Williams’ stockholders. Williams expects to mail the proxy statement, hold the stockholder vote and close the transaction as soon as possible.
