Williams Companies has cut its quarterly dividend following low energy prices, reducing its payout from 64 cents to 20 cents. This cut represents the first in at least a decade for the company, according to Bloomberg.
Williams plans to reinvest the approximately $1.7 billion that it will save from the dividend cuts into its master-limited partnership Williams Partners, which has maintained its distribution of 85 cents. Williams also expects to finalize the sale of its Canadian operations during the third quarter for more than $1 billion.
After its failed merger with Energy Transfer Equity, Williams is slowly moving forward as a standalone company and has since been debating the size and composition of its board following the resignation of six directors.
CEO Alan Armstrong said in a statement, “Our organization is fully aligned, energized and focused on simplifying the way we operate and make decisions. We are committed to executing on our projects, lowering our overall risk, and driving stockholder value by delivering on our growth strategy and strengthening our balance sheet."