Williams CEO Encourages Tulsans To Invest In Community

Wednesday, Tulsa-based Williams released its earnings report after the closing bell.

For all of 2016, Williams lost $424 million, but that actually topped Wall Street expectations; it’s nearly $150 million less than the company lost in 2015.

Williams shares closed at 2899 Wednesday, a climb of 93 percent in the last 12 months.

It was just last summer that Tulsa dodged a financial freight train when a merger deal fell through that would have moved Williams' operations to Dallas.

5/26/2016 Related Story: Energy Transfer Wants Out Of Merger With Williams Companies

But, changes in the oil and gas industry could make Williams an even more attractive target this year.

CEO Alan Armstrong gave us a glimpse into Williams' future and what Tulsans can do to help protect its home base.

Terry: “What were the odds of that happening?”
Armstrong: “Not very high.”

Armstrong is as surprised, and pleased, as the rest of Tulsa that he's still able to call this city home.

“It’s pretty rare for a deal that size to fail,” he said.

The $33 billion merger offer from Dallas-based Energy Transfer launched a year-long corporate battle that's still being fought in court.

It climaxed in a boardroom showdown in which some board members demanded Armstrong be fired.

“I really don't ever want to relive any of that,” he said.

In the end, six board members resigned, Armstrong kept his job, and Tulsa retained its crown jewel; none of which is to say the city can now rest easy.

In fact, changes in the oil and gas industry, and the public's reaction to them, could actually make Williams an even more attractive target.

Armstrong said, “It’s a fascinating issue.”

He said there's a hidden reason why pipeline companies like Williams, that used to fly under the radar, are now being met by protestors all over the country. His theory is that environmentalists concerned about the massive increase in hydraulic fracturing, which primarily occurs on private land, are taking a new tactic to try to stop the industry.

“They figured out, ‘Gee, they have to get the gas off that property and they have to cross a public road, they have to cross a public stream. If you cross a state line you have to have a federal permit’ - that was the Achilles heel,” he said.

And if new pipelines aren't being built, the old ones become even more valuable, which puts Williams in prime position.

Armstrong: “Today we carry about 30 percent of the nation's natural gas.”
Terry: “That's an amazing number.
Armstrong: “It is, it’s a very big number…Financially we have performed very, very, well here at the last half of the year, even though the industry has been in a downturn.”

Armstrong hopes to continue leading Williams forward with that positive momentum, and in his heart, he hopes that Williams' roots will stay firmly planted in Tulsa.

“I wouldn't try to kid anybody. It was heartbreaking for me to think about Williams not being in Tulsa,” he said.

But hearts don't govern multi-billion dollar corporations, and Armstrong's obligation is not to the city but to the shareholders of Williams.

“At the end of the day, our shares are for sale on the market every single day. That is what it is,” he said.

Which is why Armstrong takes every opportunity he gets to encourage Tulsans to fight back by investing in the community - from education to infrastructure to recreation, all of it, he said, helps Tulsa compete.

Armstrong: “If we aren't a community that can attract and retain the very best employees, long-term, you won't be able to retain or attract companies like Williams or anybody else.”
Terry: “That's why the city needs to be selling itself every day.”
Armstrong: “That's right. That's exactly right.”

Armstrong said improving education is crucial to attracting and retaining companies.

He said even if workers can afford private education, they still look to strong public schools as a sign of a vital, healthy and attractive community.