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On the Atlantic Sunrise project, $WMB stated that the construction has started on the Central Penn line, which is a key greenfield project. The company is targeting to complete the work by mid-2018 including its compressor stations. $WMB now expects the capital expenditures for FY2017 to be around $2.6Bil.
$WMB reported a 46% drop in 3Q profit due to the absence of gains from Geismar facility (sold in July 2017) and Canadian assets divestiture in Sept. 2016. Williams is reducing its direct exposure to commodities and moving towards fee-based contracts, which would bring in consistent cash flow. Long-term debt was $20.6Bil, down $3Bil from 3Q16.
$WMB announced that Frank J. Ferazzi has been named senior vice president over the company’s Atlantic-Gulf operating area, succeeding Rory Miller, who has announced his retirement. Ferazzi has served as vice president and general manager, Eastern Interstates in the Atlantic-Gulf operating area since 2012.
Through 1Q17, $WMB reduced its debt by $1.623Bil. It expects to have excess cash available to reduce debt throughout 2017 after paying its dividend and other cash requirements. As a result, the company expects to reduce Williams’ parent-company debt by approx $500MM for FY17.
Energy company $WMB swung to a profit in 1Q17 from a loss in the year-over period, driven by a $254MM increase in investing income. Net income stood at $373MM, or $0.45 per share, compared to a loss of $65MM, or $0.09 per share in the year-over period. Excluding items, income from continuing operations rose to $0.14 per share.
Regarding the taxpayer status, $WMB said it do not expect to be cash payer through 2020. Beyond that, it will be a function of future capital investment, but there are few capital opportunities that will provide tax shield beyond 2020, said the company.
During 2016, $WMB continued to bring major new projects into service and made projects on others that are now permitted. The company said it closed the sale of its Canadian assets in 2016 and announced a restructured win-win gathering agreements in the Barnett and mid current regions with Chesapeake.
As part of the financial repositioning plan, $WMB increased its regular quarterly dividend to $0.30 per share, up 50% from $0.20 paid in Dec. 2016. This increased dividend will be paid in March 2017. The company expects to pay $1.20 per share for 2017 and is targeting 10-15% annual growth for the next several years.
$WMB narrowed its net loss in 4Q16 to $15MM or $0.02 per share from a net loss of $715MM or $0.95 per share in the prior year quarter. 4Q16 results were helped by the absence of $1.1Bil pre-tax impairment of goodwill and $698MM of lower pre-tax impairments, lower expenses and higher commodity margins.
$WMB appointed Micheal Dunn as EVP, COO of the company, effective Feb. 27, 2017. In this newly created role, Dunn will focus on optimizing operations to enhance its competitive advantage and advance the execution of the company's long-term growth strategy. Dunn will report to CEO Alan Armstrong.
$WMB said it expects to pay a quarterly dividend of $0.30 per share ($1.20 per share on an annualized basis), effective with the quarterly dividend to be paid in March 2017. This is an increase of 50% above $WMB's dividend paid in December 2016 of $0.20 per share ($0.80 per share on an annualized basis).