By Tess Stynes
Williams Cos.' (WMB) swung to a fourth-quarter profit despite
impacts from weaker natural-gas liquids margins as the year-earlier
loss stemmed from asset write-downs and other charges related to
its former exploration and production business.
However, adjusted earnings from continuing operations were
lower, amid weaker natural-gas liquids margins at Williams Partners
(WPZ) and higher costs that were partly offset by higher fee-based
revenue and stronger olefin margins.
Williams shares were down 2.6% at $33.93 in recent after-hours
trading as the company cut its 2013 earnings guidance.
Williams lowered its 2013 per-share adjusted earnings estimate
to 75 cents to $1.15, from its previous estimate for $1.05 to
$1.45, mostly to reflect sharply lower expectations for commodity
margins.
Meanwhile, midstream and interstate gas-pipeline asset-holder
Williams Partners' fourth-quarter profit decreased 29%, a sharp
mid-year decline in natural-gas-liquid prices last year.
Williams gathers and transports natural gas, and owns most of
its namesake master limited partnership, Williams Partners.
Late last year Williams acquired a 50% stake in privately held
Access Midstream Partners GP and approximately 24% of limited
partner units of Access Midstream Partners LP (ACMP) for about
$2.25 billion, a move that significantly expands the company's
economic opportunities in 10 major shale and unconventional
producing areas, including the Marcellus and Utica shale energy
fields.
"This past year was one of significant growth and change at
Williams. We spun off WPX Energy at the end of 2011 and followed
that up by seizing on a significant number of strategic growth
opportunities," said Alan Armstrong, Williams' president and chief
executive. "Our focus now is executing on our portfolio of great
growth projects across of our operating areas--from the Marcellus
and Utica Shale and Canada to the deepwater Gulf of Mexico."
Williams reported a profit of $149 million, or 23 cents a share,
compared with a year-earlier loss of $444 million, or 74 cents a
share. Excluding prior-year period write-downs related to its
former exploration and production business and other items,
adjusted earnings from continuing operations were down at 25 cents
from 36 cents.
Analysts polled by Thomson Reuters most recently projected
earnings of 25 cents.
Williams Partners reported a profit of $291 million, or 42 cents
a common unit, down from $412 million, or $1.05 a common unit, a
year earlier.
Analysts polled by Thomson Reuters most recently projected
earnings of 48 cents.
Fee-based revenue was up 8.6% from a year earlier, mostly driven
by higher volumes in the Marcellus Shale. However, natural-gas
liquid margins weakened by 46.3%.
Williams Partners' common units closed Wednesday at $53.60 and
were inactive in after-hours trading.
Write to Tess Stynes at tess.stynes@dowjones.com
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