Williams Cos. 3Q profit drops 8 percent

Williams Cos. 3rd-quarter profit drops 8 percent on decline in natural gas prices

• On 1:59 pm EDT, Thursday October 29, 2009

TULSA, Okla. (AP) -- Natural gas provider Williams Cos. on Thursday said its third-quarter earnings fell 8 percent, driven by a sharp decline in natural gas prices.

Compared with a year ago, when natural gas prices were trading at record levels close to $14 per 1,000 cubic feet, during the latest quarter natural gas prices ranged between $2.50 and $5 per 1,000 cubic feet.

The decline in natural gas prices was partly offset by stable results in the company's gas pipeline segment, higher production and hedge positions. Also helping was fee-based revenue from its midstream segment.

Quarterly earnings fell to $143 million, or 24 cents per share, from $366 million, or 62 cents per share, in the same quarter last year.

Results include special charges related to gas hedges. Excluding one-time items, adjusted earnings totaled 25 cents per share.

Analysts polled by Thomson Reuters projected income of 19 cents per share. Analysts typically exclude one-time items from their estimates.

Revenue fell 35 percent to $2.1 billion from $3.2 billion.

Williams raised its forecast for 2009 recurring adjusted earnings per share to a range between 95 cents and $1 per share. The company previously placed the range between 78 cents and 90 cents per share.

Williams cut its full-year capital spending plan to between $2.45 billion and $2.68 billion, down from a previous forecast between $2.5 billion and $2.75 billion.

Shares of Williams climbed $1.32, or 7.2 percent, to $19.57 in midday trading. The stock has ranged from $9.52 to $21.61 over the past year.

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