By Kristin Jones
Williams Cos. (WMB) first-quarter earnings fell 62% and gas
pipeline owner Williams Partners L.P.'s (WPZ) profit fell 21%, as
both were hurt by weaker natural-gas liquids margins.
Williams also lowered its 2013 per-share earnings estimate,
citing weaker margins that reflect higher natural gas price and
lower natural-gas-liquids price assumptions. It now projects 73
cents a share, from its previous outlook of 75 cents to $1.15.
Williams gathers and transports natural gas, and owns most of
its namesake master limited partnership, Williams Partners.
Williams Chief Executive, Alan Armstrong, said that despite
recent headwinds with lower natural-gas-liquids prices and higher
natural gas prices, the company expects to see growth opportunities
in North America.
The company has been investing to take advantage of production
opportunities in the Marcellus and Utica shale plays, including a
project unveiled in March to develop a pipeline in the region with
Boardwalk Pipeline Partners L.P. (BWP). Williams' acquisition last
year of a 50% stake in privately held Access Midstream Partners GP
was also expected to boost its potential in the area.
Overall in the latest quarter, Williams reported a profit of
$161 million, or 23 cents a share, down from $423 million, or 70
cents a share, a year earlier. Excluding items, adjusted earnings
from continuing operations were down at 22 cents from 39 cents.
Analysts polled by Thomson Reuters were expecting per-share
earnings of 24 cents on revenue of $2.01 billion.
Williams Partners reported a profit of $321 million, or 50 cents
a common unit, down from $408 million, or 85 cents a unit, a year
earlier.
Analysts were projecting per-unit earnings of 49 cents on
revenue of $1.99 billion.
Fee-based revenue was down 5% from a year earlier. Natural-gas
liquids margins weakened by 50%.
Williams shares fell 2.6% after-hours, to $36. Williams
Partners' common units closed Tuesday at $51.40 and were up
fractionally after hours.
Write to Kristin Jones at kristin.jones@dowjones.com
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