Williams cuts earnings, capital spending forecasts on lower-than-expected natural gas prices
By APThursday, September 16, 2010
Williams lowers earnings outlook
TULSA, Okla. — Williams Companies Inc. on Thursday cut its earnings and capital expenditure forecasts to reflect lower-than-expected natural gas prices. Its shares tumbled almost 5 percent.
Williams, which produces and transports natural gas in the United States, said it expects to earn between $1 and $1.20 per share in 2010, 85 cents and $1.65 per share in 2011 and 95 cents and $2 in 2012. Its previous forecast had expected much higher earnings for all three years.
The drop in expectations comes as natural gas prices have flattened in recent months. Williams expects natural gas prices to range between $4.35 and $4.95 per 1,000 cubic feet this year, $4 and $6 next year and $4.30 and $6.50 in 2012.
The Tulsa, Okla., company also cut its forecast for capital spending to between $3.45 billion and $3.95 billion this year, $2.075 billion and $3.2 billion in 2011 and $2.125 billion and $3.575 billion in 2012.
Company shares fell 90 cents, or 4.7 percent, to $18.21 in morning trading.
