Williams cuts 2008 outlook on lower energy prices

For the year, the company now expects to earn $2.10 to $2.30 per share, down from previous guidance of $2.35 to $2.80 per share. For 2009, Williams lowered its guidance to a range of $1.25 to $2.05 per share from a prior estimate of $2.10 to $2.95 per share.

Analysts polled by Thomson Reuters expect, on average, 2008 earnings of $2.41 per share and profit of $2.14 per share for 2009.

Williams also lowered its capital spending plans for both years, now expecting to spend $3.375 billion to $3.575 billion in 2008 and $2.80 billion to $3.10 billion in 2009. Previously it planned capital expenditures of $3.30 billion to $3.85 billion in 2008 and $2.925 billion to $3.625 billion in 2009.

Williams said it expects companies to spend less on exploration and production in 2009 due to lower energy prices, a slower economy and difficult financial markets.

As of Oct. 31, Williams said its total liquidity was about $3.5 billion, which included approximately $1.8 billion in cash and cash equivalents and $2.4 billion in unused revolving credit facilities from 19 banks. The company also said it has no significant debt due to be paid back until June 2011.

Shares fell $1.44, or 7.4 percent, to $18.15 in afternoon trading. The stock has traded between $12.38 and $40.75 in the past 52 weeks.