(RTTNews) - Natural gas producer Williams Companies, Inc. (WMB: News ) said Thursday that its third quarter profit fell 61% from last year, as lower energy commodity prices impacted results in its exploration & production and midstream businesses.

The Tulsa, Oklahoma-based company reported net income for the third quarter of $143 million or $0.24 per share, compared to $366 million or $0.62 per share for the year-ago quarter.

Income from continuing operations for the third quarter was $141 million or $0.24 per share, compared to $360 million or $0.61 per share in the prior year quarter.

Recurring income from continuing operations after mark-to-market adjustments was $147 million or $0.25 per share in the third quarter, compared to $323 million or $0.55 per share in the third quarter of last year.

On average, 10 analysts polled by Thomson Reuters expected the company to earn $0.19 per share for the third quarter. Analysts' estimates typically exclude special items.

Exploration & production segment profit fell to $106 million in the third quarter from $361 million a year earlier, while Midstream segment profit declined to $222 million from $229 million last year.

The company's gas pipeline segment reported third quarter segment profit of $157 million, down from $173 million a year ago.
For the first nine months, the company reported net income of $113 million or $0.19 per share, compared to $1.3 billion or $2.19 per share for the same period last year.

Income from continuing operations for the nine-month period was $266 million or $0.45 per share, compared to $1.2 billion or $1.99 per share in the prior year period.

Recurring income from continuing operations after mark-to-market adjustments for the nine-month period was $392 million or $0.67 per share, compared to $1.1 billion or $1.78 per share in the corresponding year-ago period.

Looking forward, the company raised its 2009 recurring adjusted earnings guidance to a range of to a range of $0.95 to $1.00 per share from its prior guidance of $0.75 to $0.90 per share. Analysts currently expect the company to earn $0.88 per share for the full year 2009.

At the same time, the company forecast recurring adjusted earnings of $0.80 to $1.90 per share for the full year 2010 and $1.10 to $2.65 per share for 2011.

Williams shares are currently trading at $19.49, up $1.24 or 6.79%.

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by RTT Staff Writer

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