Natural Gas Price Effects Williams

rough 2012, and will pull back on spending over the same time period.

Still, the company continues to expect steady earnings growth during the period, despite lower expected natural gas prices and lower expected natural gas liquid margins.

By trimming capital expenditures over the next two years, the company anticipates a slower rate of natural gas production growth.

"We are adjusting our outlook and earnings guidance to reflect the current state of the economy and commodity markets. Despite the lower expected natural gas and NGL margins, we are still projecting steady earnings growth in 2010-12," President and CEO Steve Malcolm said in a statement.

The company said it now expects adjusted earnings for 2010 in a range of $1.00 to $1.20 per share. On average, 12 analysts polled by Thomson Reuters expects full-year 2010 earnings of $1.31 per share. Analysts' estimates typically exclude special items.

The company also currently projects adjusted earnings of $0.85 to $1.65 per share for 2011 and $0.95 to $2.00 per share for 2012. Analysts currently project earnings of $1.48 per share for the full-year 2011.

In late July, William's had projected recurring adjusted earnings of $1.00 to $1.45 per share for 2010. For the years 2011 and 2012, recurring adjusted earnings were earlier projected in the range of $1.15 to $2.50 per share and $1.40 to $3.35 per share, respectively.

The company also trimmed its capital expenditures guidance for 2010 to $3.45 billion - $3.95 billion from prior outlook of $3.47 billion - $3.97 billion. Capital expenditures for 2011 is now projected between $2.07 billion and $3.20 billion and for 2012 between $2.13 billion and $3.58 billion.

Earlier, 2011 and 2012 capital expenditures were forecast in the range of $2.40 to $3.70 billion and $2.60 to $4.55 billion, respectively.

"We have demonstrated over the years that we are capable of seizing growth opportunities in a variety of commodity environments. There are opportunities for growth across all of our businesses, and we will continue to pursue them with the same discipline that we always have," Malcolm added.

WMB closed Wednesday's regular trading session at $19.10, down $0.03 on a volume of 4.90 million shares, lower than the three-month average volume of 6.07 million shares. In the past 52-week period, the stock has been trading in a range of $16.57 to $24.66.