New book by Larry Connors Click here Improve your trading - See how
All three Williams companies tallied quarterly profits, but lower natural gas prices and tighter margins pushed their net incomes below last year's period.
Growth expectations through 2011 have company officials optimistic, CEO Steve Malcolm said during a conference call with analysts and media.
"We're opportunity-rich, which leads to sustained growth ahead," Malcolm said, singling out projects in Colorado's Piceance Basin and in the Marcellus Shale area of Pennsylvania.
The parent Williams logged $143 million in third-quarter net income, down 61 percent from the $366 million generated in 2008's third quarter. Year-to-date profit totaled $266 million, compared with $1.3 million in the first nine months of last year.
Williams is confident about commodity price assumptions two years out showing oil at about $80 per barrel and natural gas up to $6.50 per million British thermal units from the current price of about $4.50. Those estimates are still well below 2008's historic highs but strong enough to generate healthy profits, company officials said.
"We're not relying on $100 oil and $9 gas to get us back to where we need to be," Malcolm said.
Williams plans $4 billion worth of projects through 2011, officials said. The
Piceance Basin offers thousands of low-risk locations still to develop beyond what's already drilled, the CEO added.
"This is world-class resource," Malcolm said, comparing it to Williams' stakes in the Marcellus, Barnett and Woodford shales. "In our view, none of them has exceeded the quality of our core Piceance position."
The Rockies region's basis differentials, in which lower market prices made exploration and production less profitable, have steadied. In some cases, production has fetched even higher prices than those on the Henry Hub in Louisiana, Malcolm noted.
Williams also will start drilling new wells soon on its joint venture with Rex Energy in the Marcellus Shale. Another joint venture with Atlas Pipeline Partners will help connect wells in a new Marcellus gathering system, Malcolm said.
"We're adding fuel to our earnings engine," he said.
Williams cut its capital budget this year to $2.6 billion but added $600 million worth of liquidity through a debt offering in March. Altogether, Williams has about $1.7 billion in cash and cash equivalent combined with $1.9 billion of available credit capacity.
Shares of Williams rose $1.27 Thursday to $19.52 on the New York Stock Exchange.
Three Williams companies
Williams Cos. Inc.
The 102-year-old company produces about 1.2 million cubic feet of natural gas per day in the U.S., offshore and abroad. It owns 8,500 miles of gas gathering lines and 14,600 miles of pipelines.
Williams Partners LP
A publicly traded master limited partnership, founded in 2005, focuses on natural gas and natural gas liquids gathering and processing in New Mexico, Colorado and Wyoming. It owns more than 5,000 miles in gathering systems.
Williams Pipeline Partners LP
The newest Williams entity, formed in 2007, owns a 35 percent general partnership interest in Northwest Pipeline GP. That system includes 12.8 billion cubic feet of working natural gas storage capacity and a 3,900-mile pipeline from New Mexico to the Pacific Northwest.
Rod Walton 581-8457 rod.walton@tulsaworld.com
To see more of the Tulsa World, or to subscribe to the newspaper, go to http://www.tulsaworld.com. Copyright (c) 2009, Tulsa World, Okla. Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.
