Tulsa, Oklahoma based Williams Cos; the natural gas pipeline company slashed its quarterly dividend by sixty nine percent in order to be able to reinvest almost $1.7 billion into Williams Partners till 2017. The affiliated company requires greater financial flexibility within that period.
While announcing its Q2 earnings statement on Monday, Williams said it reduced its payout from 64 cents to 20 cents. Reportedly, the reduction came for the first time in almost ten years.
Williams said it expects to finalize sale of its Canadian operations in the ongoing quarter for an amount of $1 billion plus.
Williams's merger efforts with Energy Transfer Equity failed in late June and now the company is mainly focusing on growing its extensive network of gas pipelines.
Shares of Williams have dropped almost sixty percent in last one year as the company fought without success to force Energy Transfer Equity to close the agreed-upon sales deal. After the deal collapse, almost half of the board members resigned from Williams' board as they failed in their attempt to oust CEO, Alan Armstrong. Chief Executive Alan Armstrong said Williams focuses on expanding its extensive network including many of the pipelines that move fuel from the Gulf Coast to the Eastern Seaboard. Mr. Armstrong said, "We really are a critical infrastructure provider here and we've fought hard to get there."
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