Williams Increases Dividend to $0.25875 Per Share; Plans Increases Every Quarter, Fueled by Growth in Williams Partners Distributions

Published on Thursday, 19 January 2012 16:16 Written by TradersHuddle Staff

TULSA, Okla.-( Business Wire )-

Williams’ (NYSE: WMB) board of directors has approved a regular dividend of $0.25875 on the company’s common stock, payable March 26, 2012, to holders of record at the close of business on March 9.

The first-quarter 2012 dividend is more than double the $0.125 per share the company paid to shareholders a year ago. The most recent quarterly dividend the company paid was $0.25 in December 2011.

Williams plans to increase its dividend more frequently – with increases every quarter. As a result, the company increased its full-year dividend forecast to $1.09 per share for 2012. That is 41 percent higher than the full-year dividend Williams paid in 2011. The company’s previous 2012 dividend forecast was $1.03 per share.

Moving to quarterly increases is consistent with the expected growing cash distributions Williams is receiving from its significant ownership interest in Williams Partners L.P. (NYSE:WPZ). Strong business fundamentals and growth outlook within Williams Partners’ businesses are driving the expectation of continued strong distribution growth.

Williams previously stated that it plans to dividend substantially all of the cash distributions it receives from Williams Partners, less taxes, interest and other expenses. Additionally, Williams continues to expect 10 to 15 percent increases in its dividend on an annual basis. Consistent with that guidance, Williams expects to pay a dividend in December 2012 that is 14 percent higher than what it paid in December 2011.

The company expects the cash flows from its Midstream Canada & Olefins segment to be reinvested in that business during 2012-13 to drive growth opportunities. It expects cash flows from Midstream Canada & Olefins will contribute to shareholder dividends in 2014 and beyond.

The expected quarterly increases in Williams’ dividend are subject to quarterly approval of Williams’ board of directors.

Williams has paid a common stock dividend every quarter since 1974.

About Williams (NYSE: WMB)

Williams is one of the leading energy infrastructure companies in North America. It owns interests in or operates 15,000 miles of interstate gas pipelines, 1,000 miles of NGL transportation pipelines, and more than 10,000 miles of oil and gas gathering pipelines. The company’s facilities have daily gas processing capacity of 6.6 billion cubic feet of natural gas and NGL production of more than 200,000 barrels per day. Williams owns the general-partner interest and a 73 percent limited-partner ownership interest in Williams Partners L.P. (NYSE: WPZ), one of the largest diversified energy master limited partnerships. Williams Partners owns most of Williams’ interstate gas pipeline and domestic midstream assets. Williams’ headquarters is in Tulsa, Okla. More information is available at www.williams.com.

Portions of this document may constitute “forward-looking statements” as defined by federal law. Although the company believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. Any such statements are made in reliance on the “safe harbor” protections provided under the Private Securities Reform Act of 1995. Additional information about issues that could lead to material changes in performance is contained in the company’s annual reports filed with the Securities and Exchange Commission.

WilliamsMedia Contact:Jeff Pounds, 918-573-3332orInvestor Contact:Sharna Reingold, 918-573-2078