Williams lowers earnings expectations for Q2 through 2013

25 Jul '12

4 min read

Williams continues to expect the influence of NGL prices on its earnings to diminish over the next few years as it transitions to a business mix that is increasingly fee-based in its Williams Partners segment. The company's 2013 and 2014 earnings expectations reflect that shift to greater fee-based business; the benefit of projects coming into service; and some improvement from current NGL market conditions as a result of additions to North American capacity for steam-cracking, propane dehydrogenation (PDH) and exports, as well as more normal weather.

For 2014, the company is increasing is adjusted earnings per share to a range with midpoint of $1.95 – a level 59 percent higher than the $1.23 it reported in 2011 – and $4.1 billion at midpoint of the guidance range for adjusted segment profit plus DD&A. The company is increasing its earnings guidance for 2014 primarily due to an expectation that it will benefit from ethylene crack spreads similar to the first half of 2012 after spreads decline for the balance of this year and in 2013. The company expects continued high spreads between natural gas and ethylene due to the substantial pricing advantages over global ethylene derived from crude-oil based feedstocks.

Williams

More Textiles News - United States Of America...