TULSA, Okla., July 29 /PRNewswire-FirstCall/ -- Williams
Pipeline Partners L.P. (NYSE: WMZ) today announced unaudited
second-quarter 2010 net income of $9.7
million, compared with $11.6
million for second-quarter 2009. Net income per
limited-partner unit for second-quarter 2010 was $0.29, compared with $0.35 for second-quarter 2009.
For the first six months of 2010, net income was $21.6 million, compared with $25.2 million for the first six months of
2009. Net income per limited-partner unit for the first half
of 2010 was $0.64, compared with
$0.76 for the first half of 2009.
Lower firm transportation commodity revenues and higher property
taxes led to a slight decline in Northwest Pipeline GP's results
for the 2010 periods. These results are a key component of the
partnership's earnings from its 35-percent equity interest in
Northwest Pipeline. In addition, Williams Pipeline Partners
incurred higher general and administrative expenses, and other
expenses associated with the proposed merger with Williams Partners
L.P. (NYSE: WPZ).
Distributable cash flow for second-quarter 2010 for Williams
Pipeline Partners' limited-partner unitholders was $11.4 million, or $0.34 per limited-partner unit. The
second-quarter 2009 amounts were $11.6
million for total distributable cash flow, or $0.34 per limited-partner unit.
Year-to-date through June 30,
distributable cash flow for Williams Pipeline Partners'
limited-partner unitholders was $23.7
million, or $0.70 per
limited-partner unit, compared with $22.6
million, or $0.67 per unit for
the same period in 2009.
Distributable Cash Flow Definition
Distributable cash flow per limited-partner unit is a key
measure of the partnership's financial performance and available
cash flows to unitholders.
This press release includes certain financial measures,
Distributable Cash Flow and Distributable Cash Flow per Limited
Partner Unit that are non-GAAP financial measures as defined under
the rules of the Securities and Exchange Commission.
For Williams Pipeline Partners L.P. we define Distributable Cash
Flow as net income less its equity earnings in Northwest Pipeline,
plus reimbursements from Williams Partners L.P. under an omnibus
agreement, plus cash distributed by Northwest Pipeline attributable
to Northwest Pipeline's operations through the current reporting
period.
For Williams Pipeline Partners L.P. we define Distributable Cash
Flow per Limited Partner Unit as Distributable Cash Flow, as
defined in the preceding paragraph, allocated among the general
partner and the limited partners in accordance with the
cash-distribution provisions of our partnership agreement resulting
in distributable cash flow attributable to the general partner and
distributable cash flow attributable to limited partners,
respectively. The resulting Distributable Cash Flow attributable to
limited partners is then divided by the weighted average limited
partner units outstanding to arrive at Distributable Cash Flow per
Limited Partner Unit.
This press release is accompanied by a reconciliation of these
non-GAAP financial measures to their nearest GAAP financial
measures. Management uses these financial measures because they are
accepted financial indicators used by investors to compare company
performance. In addition, management believes that these measures
provide investors an enhanced perspective of the operating
performance of the Partnership's assets and the cash that the
business is generating. Distributable Cash Flow is not intended to
represent cash flows for the period, nor is it presented as an
alternative to net income (loss) or cash flow from operations.
Distributable Cash Flow per Limited Partner is not presented as an
alternative to net income per unit. They should not be considered
in isolation or as substitutes for a measure of performance
prepared in accordance with United
States generally accepted accounting principles.
Form 10-Q
Williams Pipeline Partners plans to file its second-quarter 2010
Form 10-Q with the SEC today. The document will be available on
both the SEC and Williams Pipeline Partners web sites.
About Williams Pipeline Partners L.P. (NYSE: WMZ)
Williams Pipeline Partners is a publicly traded master limited
partnership that owns and operates natural gas transportation and
storage assets. The general partner of Williams Pipeline
Partners is Williams Pipeline GP LLC, which is a wholly owned
subsidiary of Williams Partners L.P. (NYSE: WPZ). For more
information, please visit www.williamspipelinepartners.com.
Go to
http://www.b2i.us/irpass.asp?BzID=1589&to=ea&s=0 to join
our e-mail list.
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Contact:
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Jeff Pounds
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Williams (media
relations)
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(918) 573-3332
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David Sullivan
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Williams (investor
relations)
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(918) 573-9360
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Williams Pipeline Partners L.P. is a limited partnership formed
by The Williams Companies, Inc. Our reports, filings, and
other public announcements may contain or incorporate by reference
statements that do not directly or exclusively relate to historical
facts. Such statements are "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. We make these forward looking statements in reliance
on the safe harbor protections provided under the Private
Securities Litigation Reform Act of 1995. You typically can
identify forward-looking statements by various forms of words such
as "anticipates," "believes," "seeks," "could," "may," "should,"
"continues," "estimates," "expects," "forecasts," "intends,"
"might," "goals," "objectives," "targets," "planned," "potential,"
"projects," "scheduled," "will" or other similar expressions. These
forward-looking statements are based on management's beliefs and
assumptions and on information currently available to management
and include, among others, statements regarding:
- Amounts and nature of future capital expenditures;
- Expansion and growth of our business and operations;
- Financial condition and liquidity;
- Business strategy;
- Cash flow from operations or results of operations;
- The levels of cash distributions to unitholders;
- Rate case filings; and
- Natural gas prices and demand.
Forward-looking statements are based on numerous assumptions,
uncertainties and risks that could cause future events or results
to be materially different from those stated or implied in this
announcement. Many of the factors that will determine these
results are beyond our ability to control or predict. Specific
factors that could cause actual results to differ from results
contemplated by the forward-looking statements include, among
others, the following:
- Whether we have sufficient cash from operations to enable us to
maintain current levels of cash distributions or to pay the minimum
quarterly distribution following establishment of cash reserves and
payment of fees and expenses, including payments to our general
partner;
- Availability of supplies (including the uncertainties inherent
in assessing and estimating future natural gas reserves), market
demand, volatility of prices, and the availability and cost of
capital;
- Inflation, interest rates, and general economic conditions
(including future disruptions and volatility in the global credit
markets and the impact of these events on Northwest's customers and
suppliers);
- The strength and financial resources of our and Northwest's
competitors;
- Development of alternative energy sources;
- The impact of operational and development hazards;
- Costs of, changes in, or the results of laws, government
regulations (including proposed climate change legislation),
environmental liabilities, litigation, and rate proceedings;
- Northwest's allocated costs for defined benefit pension plans
and other postretirement benefit plans sponsored by its
affiliates;
- Changes in maintenance and construction costs;
- Changes in the current geopolitical situation;
- Northwest's exposure to the credit risk of its customers;
- Risks related to strategy and financing, including restrictions
stemming from Northwest's debt agreements, future changes in
Northwest's credit ratings and the availability and cost of
credit;
- Risks associated with future weather conditions;
- Acts of terrorism; and
- Additional risks described in our filings with the Securities
and Exchange Commission ("SEC").
Given the uncertainties and risk factors that could cause our
actual results to differ materially from those contained in any
forward-looking statement, we caution investors not to unduly rely
on our forward-looking statements. We disclaim any obligations to
and do not intend to update the above list or to announce publicly
the result of any revisions to any of the forward-looking
statements to reflect future events or developments.
In addition to causing our actual results to differ, the factors
listed above may cause our intentions to change from those
statements of intention set forth in this report. Such changes in
our intentions may also cause our results to differ. We may change
our intentions, at any time and without notice, based upon changes
in such factors, our assumptions, or otherwise.
Limited partner interests are inherently different from the
capital stock of a corporation, although many of the business risks
to which we are subject are similar to those that would be faced by
a corporation engaged in a similar business. Investors are
urged to closely consider the disclosures and risk factors in our
annual report on Form 10-K filed with the SEC on Feb. 23, 2010 and our quarterly reports on Form
10-Q available from our offices or from our website at
www.williamspipelinepartners.com.
Reconciliation of non-GAAP
Measures
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(UNAUDITED)
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Williams Pipeline Partners
L.P.
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Distributable Cash Flow per LP
Unit Reconciliation
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2009
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2010
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Amounts in thousands, except
per-unit amounts
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1st Qtr
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2nd Qtr
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Y-T-D
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1st Qtr
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2nd Qtr
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Y-T-D
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Net Income
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13,655
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11,560
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25,215
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11,927
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9,694
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21,621
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Equity in earnings -
Northwest
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(14,318)
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(12,307)
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(26,625)
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(13,259)
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(12,032)
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(25,291)
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Reimbursements from Williams
from ominbus agreement
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370
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374
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744
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248
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248
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496
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Distributable cash flow
excluding equity investments
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(293)
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(373)
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(666)
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(1,084)
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(2,090)
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(3,174)
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Plus: Northwest's cash
distributions to WMZ
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11,550
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12,250
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23,800
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13,748
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13,825
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27,573
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Distributable cash flow
attributable to partnership
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11,257
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11,877
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23,134
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12,664
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11,735
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24,399
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Distributable cash flow
attributable to partnership allocated to GP
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225
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310
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535
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448
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288
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736
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Distributable cash flow
attributable to partnership allocated to LP
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11,032
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11,567
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22,599
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12,216
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11,447
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23,663
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Weighted Average number of LP
units outstanding
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33,565
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33,565
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33,565
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33,565
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33,565
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33,565
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Distributable cash flow
attributable to partnership per weighted
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average limited
partner unit
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0.3287
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0.3446
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0.6733
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0.3640
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0.3410
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0.7050
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SOURCE Williams Pipeline Partners L.P.