Williams Partners net income slips 13% in 2013

20 Feb '14

4 min read

Williams Partners recently announced that it increased its quarterly cash distribution to unit holders to $0.8925 per unit, a 7.9-percent increase over the prior year amount. It is also a 1.7-percent increase over the partnership's third-quarter 2013 distribution of $0.8775 per unit.

CEO Perspective

Alan Armstrong, chief executive officer of Williams Partners' general partner, made the following comments: "In the face of the past year's challenges presented by the continued decline in NGL margins and the significant and tragic Geismar incident, we continued to focus on significantly growing our fee-based revenues.

This growth was steady throughout 2013 and we expect it to grow even faster in 2014 and 2015 as we deliver on major projects for our customers in a safe and reliable manner.

Our distributable cash flow was up 19 percent for 2013 and we expect DCF to grow from approximately $800 million to $1.2 billion through the 2015 guidance period. As well, we were able to grow our distributions by approximately 9 percent and are reaffirming guidance for annual distribution growth of 6 percent in each of 2014 and 2015.

"Late in 2013, the partnership placed into service a number of important projects and we expect to place into service approximately $4.5 billion in projects in 2014 and 2015. We continue growing our gathering and processing operations to meet producer needs in the Northeast while following through on a roster of Transco expansions to serve growing markets along the Eastern Seaboard.

In the Gulf of Mexico, we're on schedule to bring into service significant deepwater infrastructure that is well supported by anchor customers and positioned for further upside as the deepwater Gulf of Mexico accelerates.

"We continue to see tremendous appetite for additional firm transportation capacity from a range of industry participants, as evidenced by our fully-contracted Atlantic Sunrise project, and we've identified abundant opportunities to help connect the very best supply basins with the fastest growing markets by building out large-scale, market-integrated infrastructure," Armstrong said.

Williams Partners

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