Williams Companies
| Company type | Public |
|---|---|
| Industry | Energy |
| Predecessor | Williams Brothers |
| Founded | January 1, 1908 Fort Smith, Arkansas, U.S. |
| Founder | Miller Williams, David Williams |
| Headquarters | Tulsa , United States |
Area served | United States |
Key people | Alan Armstrong (CEO) |
| Products | Natural gas processing and transportation, petroleum assets, electricity generation |
| Website | williams |
The Williams Companies, Inc. is a U.S.-based energy corporation with its main office located in Tulsa, Oklahoma. Primarily engaged in the processing and transportation of natural gas, the company also possesses assets related to petroleum and electricity generation. As a member of the Fortune 500, its common shares are included in the S&P 500 index.
History
Originally established in 1908 under the name Williams Brothers by entrepreneurs Miller and David Williams in Fort Smith, Arkansas, the firm quickly grew its network of pipelines for natural gas and petroleum across the country, relocating its headquarters to Tulsa by 1919. In 1949, John H. Williams—nephew to the founders—and other family members took ownership; he held the position of president until 1971 and served as CEO until 1979.
The company went public in 1957 and adopted the name The Williams Companies, Inc. during the 1970s to better represent its diversification efforts. By 1997, it streamlined its brand to simply "Williams."
Significant acquisitions contributed to expanding its market presence: purchasing Great Lakes Pipeline Company in 1966 for $287 million; acquiring Northwest Energy Company in 1982 to broaden natural gas transportation capabilities; and obtaining Transco Energy Company in 1995, which extended operations to the East Coast. The acquisition of Barrett Resources in 2001 brought considerable national gas reserves into its portfolio.
In response to financial challenges in 2002 caused by industry changes, competition with Enron Corp., and debt from subsidiaries, Williams secured a vital high-interest loan from investor Warren Buffett that prevented bankruptcy. The company then concentrated on natural gas production, processing, transportation, and expanding resources. To optimize operations, it sold Canadian natural gas straddle plants for $540 million in 2004.
A comprehensive restructuring occurred in 2010 when pipeline assets were consolidated under Williams Partners LP. Leadership shifted as CEO Steve Malcolm retired and Alan Armstrong assumed the CEO role starting January 2011; Armstrong had been senior vice president since 2002.
In 2011, the board authorized an initial public offering and tax-free spinoff of its exploration and production segment. This led to the creation of WPX Energy Inc., which began trading on the NYSE in January of that year. By year-end, the spinoff was finalized, transforming Williams into a company focused on infrastructure with many pipeline assets held through master limited partnership Williams Partners LP.
Telecommunications
Williams played an influential part in shaping the modern telecommunications sector by utilizing fiber optic cables installed within retired pipelines. It established two nationwide networks that were subsequently spun off as independent companies. The first network was sold in 1995 to LDDS, which later evolved into WorldCom and eventually MCI. The second network was spun off in 2001 as Williams Communications; after filing for bankruptcy the following year, it rebranded as WilTel Communications before being acquired by Level 3 Communications, thereby enhancing their market position and revenue streams.
Lawsuits and fines
In 2002, Williams Communications Group was subject to a class-action lawsuit due to its failure to properly disclose worsening financial conditions. The company ultimately settled the case in 2007, agreeing to pay $290 million related to these disclosure issues.
From 2006 through 2013, both Boardwalk Pipeline Partners and Williams Companies incurred penalties totaling $2.4 million for safety infractions. These violations involved insufficient corrosion monitoring and postponed maintenance on natural gas pipelines, which adversely affected their standing with regulatory authorities.
Restatement
On March 1, 1999, Chief Financial Officer Jack D. McCarthy revealed a revision to the firm's 1998 pre-tax earnings, decreasing the figure by $21.2 million as a result of an internal audit and review.
Williams updated its SEC filings on September 16, 2004, for the fiscal year 2003 and the first quarter of 2004. These amendments included the reclassification of discontinued operations and adjustments in segment reporting, demonstrating enhanced clarity in financial disclosures.
External links
- Voices of Oklahoma interview with John Williams. A first-person account recorded on September 30, 2009, featuring company founder John Williams.
- "Williams Companies" entry within the Encyclopedia of Oklahoma History and Culture
- Articles with short description
- Energy companies of the United States
- Natural gas companies of the United States
- Natural gas pipeline companies
- Oil companies of the United States
- Petroleum in Oklahoma
- Electric power companies of the United States
- Companies based in Tulsa, Oklahoma
- Non-renewable resource companies established in 1908
- American companies established in 1908
- 1950s initial public offerings
- 1908 establishments in Oklahoma
- Companies listed on the New York Stock Exchange
- Former components in the Dow Jones Utility Average
- 4
- Companies of the United States by year of establishment