U.S. Markets closed

Williams Reports First-Quarter 2019 Financial Results

TULSA, Okla.--(BUSINESS WIRE)--

Williams (WMB) today announced its unaudited financial results for the three months ended March 31, 2019.

Strong 1Q 2019 Results Compared with 1Q 2018

  • Net Income Attributable to Williams available to common stockholders of $194 million; up $42 million or 28%
  • Net Income Per Share of $0.16 – down $0.02; Adjusted Income Per Share of $0.22; up 16%
  • Cash Flow From Operations of $775 million; up $81 million or 12%
  • Adjusted EBITDA of $1.216 billion; up $81 million or 7%
  • Distributable Cash Flow ("DCF") of $780 million; up $57 million or 8%
  • Dividend Coverage Ratio is 1.70x

Solid Execution While Fortifying our Balance Sheet

  • Placed Gulf Connector LNG supply project into full service on Jan. 4.
  • Two recent deleveraging transactions expected to result in a net of approximately $1.085 billion that Williams plans to use for debt reduction and for funding the company's extensive portfolio of growth capital:
    • On March 18, announced the formation of new strategic joint venture in the Marcellus/Utica Basins with the Canada Pension Plan Investment Board ("CPPIB");
    • On April 10, announced completion of sale of our 50% Interest in Jackalope Gas Gathering Services, LLC to an affiliate of Crestwood Equity Partners LP.

2019 Financial Guidance Updates

  • Raising guidance for Net Income and Adjusted EPS.
  • Maintaining 2019 guidance for Adjusted EBITDA, DCF and Dividend Coverage Ratio.
  • Growth capital expenditures guidance midpoint lowered to $2.4 billion from $2.8 billion in part due to lower capital requirements in the Northeast and lower capital requirements from our Jackalope Gas Gathering Services deleveraging transaction.
  • 2019 year-end Debt-to-Adjusted EBITDA now expected to be < 4.6x.

CEO Perspective

Alan Armstrong, president and chief executive officer, made the following comments:

"Our first-quarter 2019 performance produced strong results and solid execution while fortifying our balance sheet. Led by our Atlantic-Gulf and Northeast G&P segments, each showing EBITDA growth of more than 20%, our key financial metrics reflected year-over-year growth. On the execution front, our project teams continue to meet or exceed their goals as well. Gulf Connector, Fort Lupton III, St. James Supply and the work on Shell's Norphlet project are now all complete and will add cash flows through the balance of the year. Also, numerous projects have been executed in our Northeast G&P area to deliver 15% year-over-year growth in gathered volumes. And while lower commodity prices combined with strict capital discipline are pressuring a few of our producing customers' forecasts in the near-term, those same lower commodity prices are fundamental to driving demand and ultimately volumes in these key gas basins."

Armstrong added, “Importantly, we are raising our EPS and income guidance, maintaining our EBITDA and DCF all while lowering capital expenditures for this year. This is the result of the crisp execution of our portfolio optimization transactions and continued tight discipline around capital deployment. This, along with expected contributions from our Northeast JV partner, has added momentum to our deleveraging efforts as we now see 2019 leverage coming in below 4.6x versus our earlier guidance of less than 4.75x.”

 
Williams Summary Financial Information   1Q
Amounts in millions, except ratios and per-share amounts. Per share amounts are reported on a diluted basis. Net income (loss) amounts are attributable to The Williams Companies, Inc. available to common stockholders. 2019   2018
 
GAAP Measures
Net Income $194 $152
Net Income Per Share $0.16 $0.18
Cash Flow From Operations $775 $694
 
Non-GAAP Measures (1)
Adjusted EBITDA $1,216 $1,135
Adjusted Income $273 $159
Adjusted Income Per Share $0.22 $0.19
Distributable Cash Flow $780 $723
Dividend Coverage Ratio 1.70 x 1.65 x
 
Other
Debt-to-Adjusted EBITDA at Quarter End (2) (4) 4.77 x 4.55 x
Capital Investments (3) (4) $517 $955
 
(1) Schedules reconciling adjusted income from continuing operations, adjusted EBITDA, Distributable Cash Flow and Coverage Ratio (non-GAAP measures) to the most comparable GAAP measure are available at www.williams.com and as an attachment to this news release.
 
(2) Debt-to-Adjusted EBITDA ratio does not represent leverage ratios measured for WMB credit agreement compliance or leverage ratios as calculated by the major credit ratings agencies. Debt is net of cash on hand, and Adjusted EBITDA reflects the sum of the last four quarters.
 
(3) Capital Investments includes increases to property, plant, and equipment, purchases of businesses, net of cash acquired, and purchases of and contributions to equity-method investments.
 
(4) 1Q 2019 excludes $727 million (net of cash acquired) for the purchase of the remaining 38% of UEOM as this amount will be provided for at the closing of the JV in the Marcellus/Utica Basins by our JV partner (see press release dated 3/18/19). The temporary financing of the $727 million has also been adjusted out of the 1Q 2019 Debt-to-Adjusted EBITDA metric. Without the $727 million adjustment, Debt-to-Adjusted EBITDA would have been 4.92x. Following closing of CPPIB's investment in the joint venture, which is expected to occur in the second or third quarter of 2019, we expect to have approximately $1.085 billion available from our two recent deleveraging transactions to apply to debt reduction.
 

GAAP Measures

  • Net Income benefited from increased service revenues of $100 million in the Atlantic-Gulf segment primarily from Transco expansion projects and $48 million in Northeast G&P segment driven by growth in gathering volumes, partially offset by a decline in West segment results due primarily to lower gathering volumes from severe winter weather, the absence of EBITDA from the former Four Corners area business sold in fourth-quarter 2018 and lower commodity margins. Net Income also reflects less income attributable to noncontrolling interests driven by the WPZ merger in third-quarter 2018, partially offset by a $74 million first-quarter 2019 impairment of an equity method investment and higher interest expense associated with financing obligations for leased pipeline capacity.
  • The increase in Cash Flow From Operations was largely driven by the increased service revenues in the Atlantic-Gulf and Northeast G&P segments, partially offset by the decline in West results.

Non-GAAP Measures

  • The increase in Adjusted EBITDA largely reflects the same drivers impacting Cash Flow From Operations.
  • Adjusted Income also improved, driven by the higher Adjusted EBITDA and less income attributable to noncontrolling interests, partially offset by higher interest expense.
  • DCF is higher, reflecting the increased Adjusted EBITDA and lower maintenance capital, partially offset by higher net interest expense.

Other Measures

  • Our Debt-to-Adjusted EBITDA at March 31, 2019 of 4.77x excludes $727 million for the temporary financing to purchase the remaining 38% of UEOM as this amount will be provided for at the closing of the JV in the Marcellus/Utica Basins by our JV partner (see press release dated 03/18/19). Without the $727 million adjustment, Debt-to-Adjusted EBITDA would have been 4.92x. Following closing of CPPIB's investment in the joint venture, which is expected to occur in the second or third quarter of 2019, we expect to have approximately $1.085 billion available from our recent deleveraging transactions to apply to debt reduction, further reducing our Debt-to-Adjusted EBITDA ratio below 4.77x.

Business Segment Results & Form 10-Q

Williams' operations are comprised of the following reportable segments: Atlantic-Gulf, West, Northeast G&P and Other. For additional information, please see the company's first-quarter 2019, Form 10-Q, which Williams expects to file this week, with the Securities and Exchange Commission (SEC). Once filed, the document will be on the SEC and Williams websites.

 
      Quarter-To-Date
Amounts in millions     Modified EBITDA     Adjusted EBITDA
1Q 2019     1Q 2018     Change     1Q 2019     1Q 2018     Change
Atlantic-Gulf $ 560     $ 451     $ 109 $ 560     $ 466     $ 94
West 332 413 (81 ) 346 406 (60 )
Northeast G&P 299 250 49 302 250 52
Other   (4 )       6         (10 )   8         13         (5 )
Totals $ 1,187       $ 1,120       $ 67   $ 1,216       $ 1,135       $ 81  
 
Note: Williams uses Modified EBITDA for its segment reporting. Definitions of Modified EBITDA and Adjusted EBITDA and schedules reconciling to net income are included in this news release.
 

Atlantic-Gulf

  • Improvement in Modified and Adjusted EBITDA driven by Transco expansion projects, including Atlantic Sunrise (in service October 2018) and Gulf Connector (in service early January 2019).

West

  • Lower first-quarter 2019 gathering volumes reflecting the impact of more severe weather conditions in 2019, especially in Wyoming. Weather-impacted volumes are recovering during the second quarter.
  • Additionally, results reflect the absence of EBITDA from our former Four Corners area business and lower commodity margins (excluding Four Corners) driven by lower prices and volumes.
  • NGL margins continue to be unfavorably impacted by high Opal natural gas prices and NGL transportation capacity constraints.
  • Completed sale of our 50% interest in Jackalope (an equity-method investment) for $485 million in April 2019.

Northeast G&P

  • Improvement in Modified and Adjusted EBITDA driven by increased Susquehanna Supply Hub gathering volumes and higher proportional EBITDA primarily from investments in the Marcellus South and Bradford gas gathering systems, partially offset by an increase in operating and administrative expenses.
  • Gross gathering volumes, including 100% of operated equity-method investments, reflect a 15% increase for first-quarter 2019 over first-quarter 2018.
  • Acquired remaining 38% interest in UEOM for $727 million (net of cash acquired) and signed agreement for new JV, including UEOM and OVM. Expect to receive approximately $1.34 billion including closing adjustments in exchange for 35% interest in joint venture.

2019 Guidance

Williams' current guidance for 2019, originally announced at the company's Analyst Day on May 17, 2018, remains unchanged with the exception of Net Income, Adjusted EPS, Growth Capital Expenditures and Debt-to-Adjusted EBITDA, which are updated in the following table:

 
In $Billions except for percentages, ratios and per share amounts   2019 Guidance
Net Income   $1.100 - $1.400 Billion (1)
Adjusted EPS $0.83 - $1.07 (2)
Adjusted EBITDA $4.850 - $5.150 Billion
Distributable Cash Flow (DCF) $2.900 - $3.300 Billion
Dividend Coverage Ratio ~1.7x (3)
Growth Capex $2.3 - $2.5 Billion (4)
Debt-to-Adjusted EBITDA < 4.6x (5)
 
(1) Prior Guidance: $1.050 to $1.350 Billion
(2) Prior Guidance: $0.77 to $1.01
(3) Midpoint of Guidance
(4) Prior Guidance: $2.7 to $2.9 Billion
(5) Prior Guidance: <4.75x
 

Williams' First-Quarter 2019 Materials to be Posted Shortly; Q&A Webcast Scheduled for Tomorrow

Williams' first-quarter 2019 earnings presentation will be posted at www.williams.com. The company’s first-quarter 2019 earnings conference call and webcast with analysts and investors is scheduled for Thursday, May 2, 2019, at 9:30 a.m. Eastern Time (8:30 a.m. Central Time). A limited number of phone lines will be available at (800) 263-0877. International callers should dial (323) 994-2131. The conference ID is 6974376. A webcast link to the conference call is available at www.williams.com. A replay of the webcast will be available on the website for at least 90 days following the event.

About Williams

Williams (WMB) is a premier provider of large-scale infrastructure connecting U.S. natural gas and natural gas products to growing demand for cleaner fuel and feedstocks. Headquartered in Tulsa, Oklahoma, Williams is an industry-leading, investment grade C-Corp with operations across the natural gas value chain including gathering, processing, interstate transportation and storage of natural gas and natural gas liquids. With major positions in top U.S. supply basins, Williams owns and operates more than 30,000 miles of pipelines system wide - including Transco, the nation’s largest volume and fastest growing pipeline - providing natural gas for clean-power generation, heating and industrial use. Williams’ operations handle approximately 30% of U.S. natural gas. www.williams.com

 
 

The Williams Companies, Inc.

Consolidated Statement of Income
(Unaudited)
 
    Three Months Ended
March 31,
  2019         2018  
(Millions, except per-share amounts)
Revenues:
Service revenues $ 1,440 $ 1,351
Service revenues – commodity consideration 64 101
Product sales   550     636  
Total revenues 2,054 2,088
Costs and expenses:
Product costs 525 613
Processing commodity expenses 40 35
Operating and maintenance expenses 340 357
Depreciation and amortization expenses 416 431
Selling, general, and administrative expenses 128 132
Other (income) expense – net   44     29  
Total costs and expenses   1,493     1,597  
Operating income (loss) 561 491
Equity earnings (losses) 80 82
Impairment of equity-method investments (74 )
Other investing income (loss) – net 1 4
Interest incurred (306 ) (282 )
Interest capitalized 10 9
Other income (expense) – net   11     21  
Income (loss) before income taxes 283 325
Provision (benefit) for income taxes   69     55  
Net income (loss) 214 270
Less: Net income (loss) attributable to noncontrolling interests   19     118  
Net income (loss) attributable to The Williams Companies, Inc. 195 152
Preferred stock dividends   1      
Net income (loss) available to common stockholders $ 194   $ 152  
Basic earnings (loss) per common share:
Net income (loss) $ .16 $ .18
Weighted-average shares (thousands) 1,211,489 827,509
Diluted earnings (loss) per common share:
Net income (loss) $ .16 $ .18
Weighted-average shares (thousands) 1,213,592 830,197
 
 
The Williams Companies, Inc.
Consolidated Balance Sheet
(Unaudited)
 
    March 31,     December 31,
  2019     2018  
(Millions, except per-share amounts)
ASSETS
Current assets:
Cash and cash equivalents $ 43 $ 168
Trade accounts and other receivables (net of allowance of $9 at March 31, 2019 and $9 at December 31, 2018) 929 992
Inventories 129 130
Other current assets and deferred charges   186     174  
Total current assets 1,287 1,464
Investments 6,544 7,821
Property, plant, and equipment 40,541 38,661
Accumulated depreciation and amortization   (11,460 )   (11,157 )
Property, plant, and equipment – net 29,081 27,504
Intangible assets – net of accumulated amortization 8,096 7,767
Regulatory assets, deferred charges, and other   962     746  
Total assets $ 45,970   $ 45,302  
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable $ 620 $ 662
Accrued liabilities 974 1,102
Commercial paper 1,014
Long-term debt due within one year   1,561     47  
Total current liabilities 4,169 1,811
Long-term debt 20,703 22,367
Deferred income tax liabilities 1,601 1,524
Regulatory liabilities, deferred income, and other 3,772 3,603
Contingent liabilities
Equity:
Stockholders’ equity:
Preferred stock 35 35
Common stock ($1 par value; 1,470 million shares authorized at March 31, 2019 and December 31, 2018; 1,246 million shares issued at March 31, 2019 and 1,245 million shares issued at December 31, 2018) 1,246 1,245
Capital in excess of par value 24,703 24,693
Retained deficit (10,270 ) (10,002 )
Accumulated other comprehensive income (loss) (267 ) (270 )
Treasury stock, at cost (35 million shares of common stock)   (1,041 )   (1,041 )
Total stockholders’ equity 14,406 14,660
Noncontrolling interests in consolidated subsidiaries   1,319     1,337  
Total equity   15,725     15,997  
Total liabilities and equity $ 45,970   $ 45,302  
 
 
The Williams Companies, Inc.
Consolidated Statement of Cash Flows
(Unaudited)
 
    Three Months Ended
March 31,
  2019         2018  
(Millions)
OPERATING ACTIVITIES:
Net income (loss) $ 214 $ 270
Adjustments to reconcile to net cash provided (used) by operating activities:
Depreciation and amortization 416 431
Provision (benefit) for deferred income taxes 75 73
Equity (earnings) losses (80 ) (82 )
Distributions from unconsolidated affiliates 172 140
Impairment of equity-method investments 74
Amortization of stock-based awards 14 14
Cash provided (used) by changes in current assets and liabilities:
Accounts and notes receivable 97 238
Inventories 1 (40 )
Other current assets and deferred charges (6 ) (4 )
Accounts payable (39 ) (197 )
Accrued liabilities (142 ) (166 )
Other, including changes in noncurrent assets and liabilities   (21 )   17  
Net cash provided (used) by operating activities   775     694  
FINANCING ACTIVITIES:
Proceeds from (payments of) commercial paper – net 1,014
Proceeds from long-term debt 708 2,048
Payments of long-term debt (864 ) (1,060 )
Proceeds from issuance of common stock 6 10
Common dividends paid (460 ) (281 )
Dividends and distributions paid to noncontrolling interests (41 ) (165 )
Contributions from noncontrolling interests 4 3
Payments for debt issuance costs (18 )
Other – net   (9 )   (40 )
Net cash provided (used) by financing activities   358     497  
INVESTING ACTIVITIES:
Property, plant, and equipment:
Capital expenditures (1) (422 ) (957 )
Dispositions – net (4 ) (1 )
Contributions in aid of construction 10 190
Purchases of businesses, net of cash acquired (727 )
Purchases of and contributions to equity-method investments (99 ) (21 )
Other – net   (16 )   (9 )
Net cash provided (used) by investing activities   (1,258 )   (798 )
Increase (decrease) in cash and cash equivalents (125 ) 393
Cash and cash equivalents at beginning of year   168     899  
Cash and cash equivalents at end of period $ 43   $ 1,292  
_____________
(1) Increases to property, plant, and equipment $ (418 ) $ (934 )
Changes in related accounts payable and accrued liabilities   (4 )   (23 )
Capital expenditures $ (422 ) $ (957 )
 
 
Atlantic-Gulf
(UNAUDITED)
    2018     2019
(Dollars in millions)     1st Qtr     2nd Qtr     3rd Qtr     4th Qtr     Year 1st Qtr
                                     
Revenues:                
Service revenues:
Nonregulated gathering & processing fee-based revenue $ 138 $ 128 $ 138 $ 137 $ 541 $ 128
Regulated transportation revenue 413 406 411 508 1,738 517
Other fee revenues 32 34 34 34 134 34
Tracked service revenue 26 22 24 24 96 30
Nonregulated commodity consideration 15 12 18 14 59 13
Product sales:
NGL sales from gas processing 15 10 16 15 56 12
Marketing sales 45 57 67 53 222 40
Other sales 2 2 3 1 8 5
Tracked product sales   31         36         45         37         149     25
Total revenues 717 707 756 823 3,003 804
Segment costs and expenses:
NGL cost of goods sold 15 12 19 14 60 13
Marketing cost of goods sold 44 56 67 53 220 41
Tracked cost of goods sold 33 38 48 39 158 28
Processing commodity expenses 5 2 3 6 16 5
Operating and administrative costs 177 181 181 197 736 168
Other segment costs and expenses (2 ) (15 ) (29 ) 14 (32 ) 1
Gain on sale of certain assets (81 ) (81 )
Regulatory charges resulting from Tax Reform 11 (20 ) (9 )
Tracked operating and administrative costs   26         22         24         23         95     30
Total segment costs and expenses 309 276 313 265 1,163 286
Proportional Modified EBITDA of equity-method investments   43         44         49         47         183     42
Modified EBITDA 451 475 492 605 2,023 560
Adjustments   15         (19 )       (12 )       (76 )       (92 )  
Adjusted EBITDA $ 466       $ 456       $ 480       $ 529       $ 1,931   $ 560
NGL Margins $ 10 $ 8 $ 12 $ 9 $ 39 $ 7
                                     
Statistics for Operated Assets
Gathering, Processing and Crude Oil Transportation
Gathering volumes (Bcf per day) - Consolidated (1) 0.29 0.23 0.26 0.24 0.26 0.25
Gathering volumes (Bcf per day) - Non-consolidated (2) 0.24 0.25 0.25 0.31 0.26 0.35
Plant inlet natural gas volumes (Bcf per day) - Consolidated (1) 0.54 0.43 0.51 0.53 0.50 0.53
Plant inlet natural gas volumes (Bcf per day) - Non-consolidated (2) 0.24 0.25 0.25 0.32 0.27 0.35
Crude transportation volumes (Mbbls/d) 142 132 147 140 140 146
Consolidated (1)
Ethane margin ($/gallon) $ .03 $ .16 $ .24 $ .14 $ .14 $ .10
Non-ethane margin ($/gallon) $ .66 $ .74 $ .76 $ .58 $ .68 $ .48
NGL margin ($/gallon) $ .40 $ .48 $ .51 $ .36 $ .43 $ .26
Ethane equity sales (Mbbls/d) 2.82 1.91 3.05 2.98 2.69 4.16
Non-ethane equity sales (Mbbls/d)   3.87         2.35         3.14         3.21         3.14     3.28
NGL equity sales (Mbbls/d) 6.69 4.26 6.19 6.19 5.83 7.44
Ethane production (Mbbls/d) 12 12 15 16 14 17
Non-ethane production (Mbbls/d)   19         17         18         19         18     19
NGL production (Mbbls/d) 31 29 33 35 32 36
Non-consolidated (2)
NGL equity sales (Mbbls/d) 3 5 4 5 4 7
NGL production (Mbbls/d) 18 20 20 23 20 24
Transcontinental Gas Pipe Line
Throughput (Tbtu) 1,099.9 965.5 1,092.3 1,150.9 4,308.5 1,183.9
Avg. daily transportation volumes (Tbtu) 12.2 10.6 11.9 12.5 11.8 13.2
Avg. daily firm reserved capacity (Tbtu) 15.4 15.0 15.0 16.4 15.5 17.1
 
(1) Excludes volumes associated with equity-method investments that are not consolidated in our results.
(2) Includes 100% of the volumes associated with operated equity-method investments.
 
 
West
(UNAUDITED)
    2018     2019
(Dollars in millions)     1st Qtr     2nd Qtr     3rd Qtr     4th Qtr     Year 1st Qtr
 
Revenues:                
Service revenues:
Nonregulated gathering & processing fee-based revenue $ 386 $ 398 $ 387 $ 335 $ 1,506 $ 319
Regulated transportation revenue 109 104 106 110 429 110
Other fee revenues 36 32 40 41 149 44
Nonregulated commodity consideration 82 78 97 64 321 46
Tracked service revenues 1 1
Product sales:
NGL sales from gas processing 85 76 90 71 322 48
Marketing sales 419 465 615 571 2,070 426
Other sales 10 9 16 3 38 1
Tracked product sales   16         10       11       (19 )       18     4  
Total revenues 1,143 1,173 1,362 1,176 4,854 998
Segment costs and expenses:
NGL cost of goods sold 85 81 101 66 333 49
Marketing cost of goods sold 418 458 605 587 2,068 421
Other cost of goods sold 7 8 12 2 29 2
Tracked cost of goods sold 16 10 12 (20 ) 18 3
Processing commodity expenses 30 20 26 40 116 31
Operating and administrative costs 193 215 200 166 774 166
Tracked operating and administrative costs 1 1
Other segment costs and expenses 6 10 19 15 50 6
Impairment of certain assets 1,849 1,849 12
Gain on sale of certain assets (591 ) (591 ) 2
Regulatory charges resulting from Tax Reform   (7 )                           (7 )    
Total segment costs and expenses 748 803 975 2,114 4,640 692
Proportional Modified EBITDA of equity-method investments   18         19       25       32         94     26  
Modified EBITDA 413 389 412 (906 ) 308 332
Adjustments   (7 )             12       1,264         1,269     14  
Adjusted EBITDA $ 406       $ 389     $ 424     $ 358       $ 1,577   $ 346  
NGL margin $ 52 $ 53 $ 60 $ 29 $ 194 $ 14
                                     
Statistics for Operated Assets
Gathering and Processing
Gathering volumes (Bcf per day) - Consolidated (1) 4.58 4.60 4.48 3.44 4.27 3.42
Gathering volumes (Bcf per day) - Non-consolidated (2) 0.15 0.16 0.08 0.17
Plant inlet natural gas volumes (Bcf per day) - Consolidated (1) 2.16 2.12 2.11 1.65 2.01 1.41
Plant inlet natural gas volumes (Bcf per day) - Non-consolidated (2) 0.12 0.13 0.06 0.13
Ethane equity sales (Mbbls/d) 19.01 10.23 12.19 16.40 14.44 14.63
Non-ethane equity sales (Mbbls/d)   19.83         18.80       19.48       14.40         18.12     12.59  
NGL equity sales (Mbbls/d) 38.84 29.03 31.67 30.80 32.56 27.22
Ethane margin ($/gallon) $ .01 $ .07 $ .18 $ .02 $ .06 $ (.03 )
Non-ethane margin ($/gallon) $ .69 $ .71 $ .69 $ .49 $ .65 $ .34
NGL margin ($/gallon) $ .35 $ .48 $ .49 $ .24 $ .39 $ .14
Ethane production (Mbbls/d) 31 26 28 29 28 29
Non-ethane production (Mbbls/d) - Consolidated (1) 62 61 59 41 55 33
Non-ethane production (Mbbls/d) - Jackalope equity-method investment - 100%                 5       5         3     6  
NGL production (Mbbls/d) 93 87 92 75 86 68
NGL Transportation volumes (Mbbls) (3) 21,263 21,334 22,105 23,049 87,751 22,848
Northwest Pipeline LLC
Throughput (Tbtu) 226.1 188.1 193.5 212.3 820.0 243.5
Avg. daily transportation volumes (Tbtu) 2.5 2.1 2.1 2.3 2.2 2.7
Avg. daily firm reserved capacity (Tbtu) 3.1 3.1 3.1 3.1 3.1 3.1
 
(1) Excludes volumes associated with equity-method investments that are not consolidated in our results.
(2) Includes 100% of the volumes associated with operated equity-method investments, including the Jackalope Gas Gathering System and Rocky Mountain Midstream.
(3) Includes 100% of the volumes associated with operated equity-method investments, including the Overland Pass Pipeline Company and Rocky Mountain Midstream.
 
 
Northeast G&P
(UNAUDITED)
    2018     2019
(Dollars in millions)     1st Qtr     2nd Qtr     3rd Qtr     4th Qtr     Year 1st Qtr
                                     
Revenues:                
Service revenues:
Nonregulated gathering and processing fee-based revenue $ 189 $ 196 $ 211 $ 226 $ 822 $ 230
Other fee revenues 39 36 36 43 154 46
Nonregulated commodity consideration 4 4 6 6 20 5
Product sales:
NGL sales from gas processing 4 5 6 5 20 5
Marketing sales 89 65 57 35 246 37
Tracked product sales   5       5       6       5       21   5
Total revenues 330 311 322 320 1,283 328
 
Segment costs and expenses:
NGL cost of goods sold 4 5 6 5 20 5
Marketing cost of goods sold 90 65 57 36 248 37
Processing commodity expenses 2 2 3 2 9 3
Operating and administrative costs 85 91 96 108 380 97
Other segment costs and expenses 2 1 4 5 12 4
Tracked cost of goods sold   5       7       6       3       21   5
Total segment costs and expenses 188 171 172 159 690 151
 
Proportional Modified EBITDA of equity-method investments   108       115       131       139       493   122
Modified EBITDA 250 255 281 300 1,086 299
Adjustme...