Williams Cos. 1Q profit soars on higher natural gas prices

TULSA, Okla.—Williams Cos. said Thursday its first-quarter profit more than tripled, driven by higher natural gas prices, strong production growth, increased gas pipeline revenue and historically high natural gas liquid margins.

Net income swelled to $500 million, or 84 cents per share, from $134 million, or 22 cents per share. The latest quarter includes a pretax gain of $118 million on the sale of certain international interests.

Excluding discontinued operations and the effect of mark-to-market adjustments, quarterly profit totaled $341 million, or 57 cents per share, up from $189 million, or 31 cents per share, in the 2007 period.

Revenue jumped 36 percent to $3.22 billion from $2.37 billion.

Analysts surveyed by Thomson Financial forecast, on average, earnings per share of 52 cents on revenue of $2.86 billion.

Domestic natural gas production rose 20 percent and surpassed 1 billion cubic feet equivalent per day during the period.

"In the first quarter this year, we increased production 27 percent in each of our two largest production areas -- the Piceance and Powder River basins," Steve Malcolm, chairman, president and chief executive, said in a statement, referring to assets in Colorado and southeast Montana-northest Wyoming, respectively.

The quarterly net realized average price for U.S. production was $6.58 per thousand cubic feet of natural gas equivalent, up 24 percent year over year.

That was partially offset by increased depreciation, depletion and amortization, higher operating taxes, and higher lease operating expenses, the company said.

In premarket trading, Williams shares rose 75 cents, or 2.1 percent, to $36.25.