UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 29, 2015
Williams Partners L.P.
(Exact name of registrant as specified in its charter)
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| Delaware |
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1-34831 |
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20-2485124 |
| (State or other jurisdiction of incorporation) |
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(Commission File Number) |
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(IRS Employer Identification No.) |
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| One Williams Center
Tulsa, Oklahoma |
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74172-0172 |
| (Address of principal executive offices) |
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(Zip Code) |
Registrant’s telephone number, including area code: (918) 573-2000
NOT APPLICABLE
(Former name or former address, if changed since last report.)
Check the appropriate box
below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| Item 2.02. |
Results of Operations and Financial Condition. |
On April 29, 2015, Williams Partners L.P. (the “Partnership”) issued a press release announcing its financial results for the quarter ended March 31, 2015. A copy of the press release
and accompanying financial highlights and operating statistics and reconciliation schedules are furnished herewith as Exhibit 99.1 and are incorporated herein in their entirety by reference.
The press release and accompanying financial highlights and operating statistics and reconciliation schedules are being furnished
pursuant to Item 2.02, Results of Operations and Financial Condition. The information furnished is not deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, is not subject to the
liabilities of that section and is not deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.
| Item 9.01. |
Financial Statements and Exhibits. |
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| Exhibit
Number |
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Description |
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| Exhibit 99.1 |
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Press release of the Partnership dated April 29, 2015 and accompanying schedules, publicly announcing the Partnership’s financial results for the quarter ended March 31,
2015. |
2
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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WILLIAMS PARTNERS L.P. |
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By: |
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WPZ GP LLC, |
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its General Partner |
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| Date: April 29, 2015 |
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By: |
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/s/ Donald R. Chappel |
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Donald R. Chappel |
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Chief Financial Officer |
3
INDEX TO EXHIBITS
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| Exhibit
Number |
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Description |
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| Exhibit 99.1 |
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Press release of the Partnership dated April 29, 2015 and accompanying schedules, publicly announcing the Partnership’s financial results for the quarter ended March 31,
2015. |
4
Exhibit 99.1
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| News Release |
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Williams Partners L.P. (NYSE: WPZ) One Williams Center Tulsa, OK 74172
800-600-3782
www.williams.com |
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DATE: April 29, 2015
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| MEDIA CONTACT: |
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INVESTOR CONTACTS: |
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| Tom Droege 918)
573-4034 |
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John Porter (918)
573-0797 |
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Brett Krieg (918)
573-4614 |
Williams Partners Reports First Quarter 2015 Financial Results
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• |
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First Quarter 2015 Adjusted EBITDA is $917 million, Up 19% on Access Midstream Merger |
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• |
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Distributable Cash Flow (DCF) of $646 Million, Up 11% |
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• |
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Fee-Based Revenue Up $490 Million or 66% Primarily on Access Merger, Major Projects Placed into Service |
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• |
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Excluding Merger, Williams Partners 1Q 2015 Fee-Based Revenue Up $121 Million, or 16% |
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• |
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Expect Geismar at Base Plant’s Production Rate in April and May, Full Expanded Production in June |
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Reaffirming Adjusted EBITDA Guidance for 2015-2017 with 2015 Expected to Be Near Low End of Range on Extended Geismar Ramp-Up and Effects of Low
Commodity Prices |
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• |
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Reaffirming Williams Partners Per Unit Distribution Guidance of $3.40 in 2015 with 7% to 11% Annual LP Unit Distribution Growth Rate through 2017
with Growing Coverage |
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• |
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Williams Partners Analyst Day Set for May 13 |
TULSA, Okla. – Williams Partners L.P. (NYSE: WPZ) today announced unaudited financial results for first quarter 2015, during which time Williams Partners and Access Midstream Partners, L.P. (formerly
NYSE: ACMP) merged to form one master limited partnership (MLP). Financial information for periods prior to July 2014 – when Williams (NYSE: WMB) acquired control of Access Midstream – represents pre-merger Williams Partners and excludes
Access Midstream.
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| Summary Financial Information |
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1Q |
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| Amounts in millions, except coverage ratio amounts. All income amounts attributable to Williams Partners L.P. |
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2015 |
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2014 |
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| (Unaudited) |
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| Williams Partners |
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| Adjusted EBITDA (1) |
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$ |
917 |
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$ |
768 |
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| DCF attributable to partnership operations (1) |
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$ |
646 |
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$ |
582 |
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| Cash distribution coverage ratio (1) |
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.89x |
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1.03x |
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| Net income |
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$ |
89 |
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$ |
352 |
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| (1) |
Adjusted EBITDA, distributable cash flow (DCF) and cash distribution coverage ratio are non-GAAP measures. Financial information for first quarter 2014 represents
Williams Partners L.P. on a basis that is prior to the merger with Access Midstream Partners, L.P. Reconciliations to the most relevant measures included in GAAP are attached to this news release. |
1
Williams Partners reported first quarter 2015 adjusted EBITDA of $917 million, a $149 million, or 19
percent, increase from first quarter 2014.
The increase in adjusted EBITDA for first quarter 2015 is due primarily to the contribution of
approximately $314 million of adjusted EBITDA from Access Midstream as a result of the merger, $69 million higher adjusted EBITDA for the Atlantic-Gulf, and $46 million higher adjusted EBITDA from Northeast G&P. Partially offsetting these
increases were a $229 million decrease at NGL & Petchem Services due primarily to $173 million of business interruption proceeds included in adjusted EBITDA in 2014 and a $50 million decrease in the West due to lower NGL margins.
The increase in adjusted EBITDA in first quarter 2015 was also driven by $490 million, or 66 percent, higher fee-based revenues compared with
first quarter 2014. The merger with Access Midstream contributed $369 million and Atlantic-Gulf and Northeast G&P improved $79 million and $43 million, respectively. Excluding the Access Midstream merger, Williams Partners first-quarter 2015
fee-based revenue was up $121 million, or 16 percent. Additionally, the proportional EBITDA from non-consolidated joint ventures increased $90 million for first quarter 2015 versus first quarter 2014, primarily from the addition of Access
Midstream’s joint ventures.
Partially offsetting the increases described above, were lower results from Williams Partners’ Geismar
plant. The Geismar plant was off-line for first quarter 2014; however, this period included $173 million of business interruption insurance proceeds included in adjusted EBITDA in 2014. Additionally, first quarter 2015 included $162 million higher
operating and general and administrative expenses versus first quarter 2014 primarily as a result of the Access Midstream merger. Commodity margins totaled $56 million, down $105 million due primarily to low NGL prices.
Williams Partners reported unaudited first quarter 2015 net income of $89 million compared with $352 million in first quarter 2014. The decrease is
primarily due to the absence of $125 million of Geismar business interruption insurance proceeds received in first quarter 2014 and a sharp decline in NGL margins, partially offset by new fee-based revenues from Gulfstar One and Transco expansion
projects.
Distributable Cash Flow & Distributions
For first quarter 2015, Williams Partners generated $646 million in distributable cash flow (DCF) attributable to partnership operations, compared with $582 million in DCF attributable to partnership
operations in first quarter 2014.
The $64 million increase in DCF for the quarter was driven by the $149 million net increase in adjusted
EBITDA, partially offset by higher interest expense and maintenance capital expenditures primarily from the Access Midstream merger.
Williams
Partners recently announced a regular quarterly cash distribution of $0.85 per unit for its common unitholders. The cash distribution is consistent with the partnership’s annual 2015 distribution guidance of $3.40 per unit announced on Feb. 18.
CEO Perspective
Alan
Armstrong, chief executive officer of Williams Partners’ general partner, made the following comments:
“First quarter 2015 results
showed strong fee-based revenue growth from the Atlantic-Gulf and Northeast G&P operating areas as well as from the merger with Access. We expect the second quarter to be even higher with Gulfstar One and Keathley Canyon Connector nearing full
production and additional projects being placed in service such as the Rockaway Lateral and the mainline portion of Leidy Southeast.”
2
“We’ve reaffirmed 2015-2017 guidance for Williams Partners, but we do expect 2015 adjusted EBITDA
and DCF to be near the low end of the range due to the extended Geismar ramp-up and the effects of low commodity prices on producers’ volumes and ethylene margins. Our outlook for 2016 and 2017 remains unchanged and we are excited about the
rapid growth in DCF and coverage for the balance of the year.”
“Our strategy remains sound and our backlog of projects to serve the
demand side of the growing natural gas market continues to build.”
Business Segment Performance
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| Williams Partners |
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Adjusted EBITDA |
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| Amounts in millions |
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1Q 2015 |
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1Q 2014 |
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| Access Midstream (1) |
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$ |
314 |
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N/A |
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| Atlantic-Gulf |
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335 |
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266 |
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| NGL & Petchem Services (2) |
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7 |
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236 |
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| Northeast G&P |
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100 |
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54 |
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| West |
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162 |
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212 |
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| Other |
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-1 |
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— |
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| Total |
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$ |
917 |
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$ |
768 |
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Schedules reconciling adjusted EBITDA to modified EBITDA and net income are attached to this news release.
| (1) |
First quarter 2014 represents pre-merger Williams Partners and excludes Access Midstream. |
| (2) |
First quarter 2014 includes $173 million in assumed business interruption insurance proceeds related to the 2013 incident at the Geismar plant.
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Access Midstream
Access Midstream provides gathering, treating, and compression services to producers under long term, fee-based contracts in Pennsylvania, West Virginia, Ohio, Louisiana, Texas, Arkansas, Oklahoma, and
Kansas. Access Midstream also includes a non-operated 50 percent interest in the Delaware Basin gas gathering system in the Mid-Continent region and a 49 percent interest in UEOM, a joint project to develop infrastructure for the gathering,
processing and fractionation of natural gas and NGLs in the Utica Shale play in Eastern Ohio. Additionally, Access Midstream operates 100 percent of and owns an approximate average 45 percent interest in 11 natural gas gathering systems in the
Marcellus Shale region.
Access Midstream reported adjusted EBITDA of $314 million for first quarter 2015. Williams Partners’ results for
first quarter of 2014 are on a pre-merger basis and exclude Access Midstream. For first quarter 2014, Access Midstream reported $250 million of adjusted EBITDA. The increase in adjusted EBITDA between years was driven by higher fee-based volumes in
the Utica, Eagle Ford and Haynesville areas.
Atlantic-Gulf
Atlantic-Gulf includes the Transco interstate gas pipeline and a 41-percent interest in the Constitution interstate gas pipeline development project, which we consolidate. The segment also includes the
partnership’s significant natural gas gathering and processing and crude production handling and transportation in the Gulf Coast region. These operations include a 51-percent interest in Gulfstar One, a 50-percent interest in Gulfstream and a
60-percent interest in Discovery.
3
Atlantic-Gulf reported adjusted EBITDA of $335 million for first quarter 2015, compared with $266 million
for first quarter 2014.
Adjusted EBITDA for the quarter increased primarily due to $79 million higher fee-based revenues from both Gulfstar
One and higher transportation fee-based revenues on Transco associated with expansion projects, partially offset by lower NGL margins.
NGL & Petchem Services
NGL & Petchem Services includes an 88.5 percent interest in an olefins production facility in Geismar, La., along with a refinery grade propylene
splitter and pipelines in the Gulf Coast region. This segment also includes midstream operations in Alberta Canada, including an oil sands offgas processing plant near Fort McMurray, 260 miles of NGL and olefins pipelines and an NGL/olefins
fractionation facility and butylene/butane splitter facility at Redwater. This segment also includes the partnership’s energy commodities marketing business, an NGL fractionator and storage facilities near Conway, Kan. and a 50-percent interest
in Overland Pass Pipeline.
NGL & Petchem Services reported adjusted EBITDA of $7 million for first quarter 2015, compared with $236
million for first quarter 2014.
The decrease in first-quarter 2015 adjusted EBITDA was primarily due to lower Geismar results. The prior year
period Geismar results included $173 million of business interruption insurance proceeds included in adjusted EBITDA in 2014. For first quarter of 2015, the Geismar plant was off-line for most of the quarter and resumed consistent operations in late
March. Additionally, adjusted EBITDA included $54 million lower commodity-related margins primarily at the Canadian operations and higher operating expenses related to the Geismar plant ramp-up.
Northeast G&P
Northeast G&P
includes the partnership’s midstream gathering and processing business in the Marcellus and Utica shale regions, including Susquehanna Supply Hub and Ohio Valley Midstream, as well as its 69-percent equity investment in Laurel Mountain
Midstream, and its 58.4-percent equity investment in Caiman Energy II. Caiman Energy II owns a 50 percent interest in Blue Racer Midstream. This segment is in the early stages of developing large-scale energy infrastructure solutions for the
Marcellus and Utica shale regions.
Northeast G&P reported adjusted EBITDA of $100 million for first quarter 2015, compared with adjusted
EBITDA of $54 million for first quarter 2014.
The improved results are primarily due to a $43 million increase in fee-based revenues driven
by 32 percent higher volumes primarily at Susquehanna Supply Hub and higher results from our investments in Blue Racer and Laurel Mountain Midstream. Additionally, Ohio Valley Midstream realized $7 million higher adjusted EBITDA driven by higher
fee-based volumes and incremental new services.
West
West includes the partnership’s Northwest Pipeline interstate gas pipeline system, as well as gathering, processing and treating operations in Wyoming, the Piceance Basin and the Four Corners area.
West reported adjusted EBITDA of $162 million for first quarter 2015, compared with $212 million for first quarter 2014.
Lower adjusted EBITDA for the quarter was due primarily to $40 million lower NGL margins from low NGL prices.
4
Guidance
Williams Partners is reaffirming its guidance for the years 2015 through 2017 provided on Feb. 18, 2015. We expect 2015 adjusted EBITDA and distributable cash flow to be near the low end of the range due
to the extended Geismar ramp-up and the effects of low commodity prices on volumes and margins.
Williams Partners’ current guidance for
its earnings and capital expenditures are displayed in the following table:
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| Williams Partners financial outlook and commodity price assumptions |
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2015 |
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2016 |
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2017 |
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| (amounts in millions) |
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Low |
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Mid |
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High |
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Low |
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Mid |
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High |
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Low |
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Mid |
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High |
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| Adjusted EBITDA |
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$ |
4,300 |
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$ |
4,465 |
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$ |
4,630 |
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$ |
5,120 |
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$ |
5,315 |
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$ |
5,510 |
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$ |
5,750 |
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$ |
5,965 |
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$ |
6,180 |
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| Distributable Cash Flow (1) |
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$ |
2,845 |
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$ |
3,010 |
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$ |
3,175 |
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$ |
3,475 |
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$ |
3,675 |
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$ |
3,875 |
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$ |
3,960 |
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$ |
4,185 |
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$ |
4,410 |
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| Total Cash Distributions |
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$ |
3,010 |
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$ |
3,005 |
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$ |
2,995 |
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$ |
3,380 |
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$ |
3,440 |
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$ |
3,515 |
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$ |
3,770 |
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$ |
3,925 |
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$ |
4,090 |
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| Cash Distributions per LP Unit |
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$ |
3.40 |
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$ |
3.40 |
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$ |
3.40 |
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$ |
3.64 |
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$ |
3.71 |
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$ |
3.78 |
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$ |
3.89 |
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$ |
4.04 |
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$ |
4.19 |
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| Cash Distribution Coverage Ratio (1) |
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.95x |
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1.00x |
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1.06x |
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1.03x |
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1.07x |
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1.10x |
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1.05x |
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1.07x |
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1.08x |
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| Capital & Investment Expenditures |
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| Growth |
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$ |
3,250 |
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$ |
3,525 |
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$ |
3,800 |
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$ |
2,650 |
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$ |
2,925 |
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$ |
3,200 |
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$ |
2,550 |
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$ |
2,850 |
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$ |
3,150 |
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| Maintenance |
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$ |
430 |
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$ |
430 |
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$ |
430 |
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$ |
430 |
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$ |
430 |
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$ |
430 |
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$ |
430 |
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$ |
430 |
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$ |
430 |
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| Total Capital & Investment Expenditures |
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$ |
3,680 |
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$ |
3,955 |
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$ |
4,230 |
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$ |
3,080 |
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$ |
3,355 |
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$ |
3,630 |
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$ |
2,980 |
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$ |
3,280 |
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$ |
3,580 |
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| Commodity Price Assumptions |
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| Crude Oil - WTI ($ per barrel) |
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$ |
45.00 |
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$ |
55.00 |
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$ |
65.00 |
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$ |
53.75 |
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$ |
65.00 |
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$ |
76.25 |
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$ |
57.50 |
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$ |
70.00 |
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$ |
82.50 |
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| Natural Gas - Henry Hub ($/MMBtu) |
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$ |
2.50 |
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$ |
3.00 |
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$ |
3.50 |
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$ |
2.75 |
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$ |
3.25 |
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$ |
3.75 |
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$ |
3.25 |
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$ |
3.75 |
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$ |
4.25 |
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| Composite NGL Barrel ($ per gallon) |
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$ |
0.360 |
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$ |
0.450 |
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$ |
0.520 |
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$ |
0.410 |
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$ |
0.490 |
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$ |
0.560 |
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$ |
0.460 |
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$ |
0.550 |
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$ |
0.620 |
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| Crack Spread ($ per pound) (2) |
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$ |
0.297 |
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$ |
0.350 |
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$ |
0.411 |
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$ |
0.323 |
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$ |
0.376 |
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$ |
0.443 |
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$ |
0.346 |
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$ |
0.395 |
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$ |
0.466 |
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| Ethylene spot - ($ per pound) |
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$ |
0.360 |
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$ |
0.430 |
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$ |
0.500 |
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$ |
0.395 |
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$ |
0.465 |
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$ |
0.540 |
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$ |
0.430 |
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$ |
0.500 |
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$ |
0.580 |
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| Ethane- ($ per gallon) |
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$ |
0.150 |
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$ |
0.190 |
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$ |
0.210 |
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$ |
0.170 |
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$ |
0.210 |
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$ |
0.230 |
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$ |
0.200 |
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$ |
0.250 |
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$ |
0.270 |
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| Propane ($ per gallon) |
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$ |
0.500 |
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$ |
0.600 |
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$ |
0.700 |
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$ |
0.550 |
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$ |
0.650 |
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$ |
0.750 |
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$ |
0.600 |
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$ |
0.700 |
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$ |
0.800 |
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| Propylene Spot ($ per pound) |
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$ |
0.405 |
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$ |
0.475 |
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$ |
0.545 |
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$ |
0.415 |
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$ |
0.485 |
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$ |
0.555 |
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$ |
0.430 |
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$ |
0.500 |
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$ |
0.570 |
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| (1) |
Distributable cash flow and cash distribution coverage ratio are non-GAAP measures. Reconciliations to the most relevant measures included in GAAP are attached to
this news release. |
| (2) |
Crack spread is based on delivered U.S. Gulf Coast ethylene and Mont Belvieu ethane. |
Williams, Williams Partners Analyst Day Set for May 13
Williams and Williams Partners
are scheduled to host their annual Analyst Day event May 13. During the event, Williams’ management will give in-depth presentations covering all of Williams’ and Williams Partners L.P.‘s energy infrastructure businesses. The
event is scheduled from 8:30 a.m. to approximately 2:30 p.m. EDT.
On the day of the event, www.williams.com will feature presentation files
for download along with a link to a live webcast. A replay of the Analyst Day webcast will be available for two weeks following the event.
First Quarter Materials to be Posted Shortly, Live Webcast Scheduled for Tomorrow
Williams Partners’ first quarter 2015 financial results will be posted shortly at www.williams.com. The information will include the data book and analyst package.
Williams and Williams Partners L.P. will jointly host a conference call and live webcast on Thursday, April 30, at 9:30 a.m. EDT. A limited number
of phone lines will be available at (800) 475-3716. International callers should dial (719) 457-2660. A link to the live webcast, as well as replays of the webcast in both streaming and downloadable podcast formats, will be available for
two weeks following the event at www.williams.com.
5
Form 10-Q
The company plans to file its first quarter 2015 Form 10-Q with the Securities and Exchange Commission this week. Once filed, the document will be available on both the SEC and Williams websites.
Definitions of Non-GAAP Financial Measures
This news release includes certain financial measures – adjusted EBITDA, distributable cash flow and cash distribution coverage ratio – that are non-GAAP financial measures as defined under the
rules of the Securities and Exchange Commission.
Our segment performance measure, modified EBITDA, is defined as net income (loss) before
income tax expense, net interest expense, equity earnings from equity-method investments, other net investing income, depreciation and amortization expense, and accretion expense associated with asset retirement obligations for nonregulated
operations. We also add our proportional ownership share (based on ownership interest) of modified EBITDA of equity investments.
Adjusted
EBITDA further excludes items of income or loss that we characterize as unrepresentative of our ongoing operations and may include assumed business interruption insurance related to the Geismar plant. Management believes these measures provide
investors meaningful insight into results from ongoing operations.
We define distributable cash flow as adjusted EBITDA less maintenance
capital expenditures, cash portion of interest expense, income attributable to noncontrolling interests and cash income taxes, plus WPZ restricted stock unit non-cash compensation and certain other adjustments that management believes affects the
comparability of results. Adjustments for maintenance capital expenditures and cash portion of interest expense include our proportionate share of these items of our equity-method investments.
We also calculate the ratio of distributable cash flow to the total cash distributed (cash distribution coverage ratio). This measure reflects the amount
of distributable cash flow relative to our cash distribution. We have also provided this ratio calculated using the most directly comparable GAAP measure, net income.
This news 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.
Neither adjusted EBITDA nor distributable cash flow are intended to represent cash flows for the period, nor are they
presented as an alternative to net income or cash flow from operations. 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.
About Williams Partners
Williams Partners (NYSE: WPZ) is an industry-leading, large-cap natural gas infrastructure master limited partnership with a strong growth outlook and
major positions in key U.S. supply basins and also in Canada. Williams Partners has operations across the natural gas value chain from gathering, processing and interstate transportation of natural gas and natural gas liquids to petchem production
of ethylene, propylene and other olefins. Williams Partners owns and operates more than 33,000 miles of pipelines system wide – including the nation’s largest volume and fastest growing pipeline – providing natural gas for clean-power
generation, home
6
heating and industrial use. Williams Partners’ operations touch approximately 30 percent of U.S. natural gas. Tulsa, Okla.-based Williams (NYSE: WMB), a premier provider of large-scale North
American natural gas infrastructure, owns 60 percent of Williams Partners, including the general-partner interest. www.williams.com
Forward Looking Statements
The reports, filings, and other public announcements of The Williams Companies, Inc. (Williams) and Williams Partners L.P. (WPZ) 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,”
“assumes,” “guidance,” “outlook,” “in service date” 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:
| |
• |
|
Expected levels of cash distributions by WPZ with respect to general partner interests, incentive distribution rights, and limited partner
interests; |
| |
• |
|
The levels of dividends to Williams stockholders; |
| |
• |
|
Future credit ratings of Williams and WPZ; |
| |
• |
|
Amounts and nature of future capital expenditures; |
| |
• |
|
Expansion and growth of our business and operations; |
| |
• |
|
Financial condition and liquidity; |
| |
• |
|
Cash flow from operations or results of operations; |
| |
• |
|
Seasonality of certain business components; |
| |
• |
|
Natural gas, natural gas liquids, and olefins prices, supply, and demand; and |
| |
• |
|
Demand for our services. |
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
presentation. 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 WPZ will produce sufficient cash flows to provide the level of cash distributions we expect; |
| |
• |
|
Whether Williams is able to pay current and expected levels of dividends; |
| |
• |
|
Availability of supplies, market demand, and volatility of prices; |
| |
• |
|
Inflation, interest rates, and fluctuation in foreign exchange rates and general economic conditions (including future disruptions and
volatility in the global credit markets and the impact of these events on customers and suppliers); |
| |
• |
|
The strength and financial resources of our competitors and the effects of competition; |
| |
• |
|
Whether we are able to successfully identify, evaluate and execute investment opportunities; |
| |
• |
|
Our ability to acquire new businesses and assets and successfully integrate those operations and assets into our existing businesses as well
as successfully expand our facilities; |
| |
• |
|
Development of alternative energy sources; |
| |
• |
|
The impact of operational and developmental hazards and unforeseen interruptions; |
| |
• |
|
Costs of, changes in, or the results of laws, government regulations (including safety and environmental regulations), environmental
liabilities, litigation, and rate proceedings; |
| |
• |
|
Williams’ costs and funding obligations for defined benefit pension plans and other postretirement benefit plans;
|
| |
• |
|
WPZ’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; |
| |
• |
|
Our exposure to the credit risk of our customers and counterparties; |
| |
• |
|
Risks related to financing, including restrictions stemming from debt agreements, future changes in credit ratings as determined by
nationally-recognized credit rating agencies and the availability and cost of capital; |
| |
• |
|
The amount of cash distributions from and capital requirements of our investments and joint ventures in which we participate;
|
| |
• |
|
Risks associated with weather and natural phenomena, including climate conditions; |
| |
• |
|
Acts of terrorism, including cybersecurity threats and related disruptions; 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 announce publicly the result of any revisions to any of the forward-looking
statements to reflect future events or developments.
7
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 presentation. 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.
Investors are urged to closely consider the disclosures and risk factors
in Williams’ and WPZ’s annual reports on Form 10-K filed with the SEC on Feb. 25, 2015, and each of our quarterly reports on Form 10-Q available from our offices or from our website at www.williams.com .
# # #
8
Financial Highlights and Operating Statistics
(UNAUDITED)
Final
March 31, 2015
Williams Partners L.P.
Reconciliation of Non-GAAP Measures
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2014* |
|
|
2015 |
|
| (Dollars in millions, except coverage ratios) |
|
1st Qtr |
|
|
2nd Qtr |
|
|
3rd Qtr |
|
|
4th Qtr |
|
|
Year |
|
|
1st Qtr |
|
| Williams Partners L.P. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation of GAAP “Net Income” to Non-GAAP “Modified EBITDA”, “Adjusted EBITDA”, and
“Distributable cash flow” |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income |
|
$ |
352 |
|
|
$ |
223 |
|
|
$ |
247 |
|
|
$ |
462 |
|
|
$ |
1,284 |
|
|
$ |
112 |
|
| Provision (benefit) for income taxes |
|
|
8 |
|
|
|
5 |
|
|
|
10 |
|
|
|
6 |
|
|
|
29 |
|
|
|
3 |
|
| Interest expense |
|
|
106 |
|
|
|
126 |
|
|
|
154 |
|
|
|
176 |
|
|
|
562 |
|
|
|
192 |
|
| Equity (earnings) losses |
|
|
(23 |
) |
|
|
(32 |
) |
|
|
(85 |
) |
|
|
(88 |
) |
|
|
(228 |
) |
|
|
(51 |
) |
| Other investing (income) loss |
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
(1 |
) |
|
|
(2 |
) |
|
|
(1 |
) |
| Proportional Modified EBITDA of equity-method investments |
|
|
54 |
|
|
|
62 |
|
|
|
150 |
|
|
|
165 |
|
|
|
431 |
|
|
|
136 |
|
| Depreciation and amortization expenses |
|
|
208 |
|
|
|
207 |
|
|
|
364 |
|
|
|
372 |
|
|
|
1,151 |
|
|
|
419 |
|
| Accretion for asset retirement obligations associated with nonregulated operations |
|
|
3 |
|
|
|
6 |
|
|
|
3 |
|
|
|
5 |
|
|
|
17 |
|
|
|
7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Modified EBITDA |
|
|
708 |
|
|
|
596 |
|
|
|
843 |
|
|
|
1,097 |
|
|
|
3,244 |
|
|
|
817 |
|
|
|
|
|
|
|
|
| Adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Estimated minimum volume commitments |
|
|
— |
|
|
|
— |
|
|
|
47 |
|
|
|
(114 |
) |
|
|
(67 |
) |
|
|
55 |
|
| Acquisition-related expenses |
|
|
— |
|
|
|
2 |
|
|
|
13 |
|
|
|
1 |
|
|
|
16 |
|
|
|
— |
|
| Merger and transition related expenses |
|
|
— |
|
|
|
— |
|
|
|
11 |
|
|
|
30 |
|
|
|
41 |
|
|
|
32 |
|
| Share of impairment at equity-method investment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8 |
|
| Geismar Incident adjustment for insurance and timing |
|
|
54 |
|
|
|
96 |
|
|
|
— |
|
|
|
(71 |
) |
|
|
79 |
|
|
|
— |
|
| Loss related to Geismar Incident |
|
|
— |
|
|
|
— |
|
|
|
5 |
|
|
|
5 |
|
|
|
10 |
|
|
|
1 |
|
| Impairment of certain materials and equipment |
|
|
— |
|
|
|
17 |
|
|
|
— |
|
|
|
35 |
|
|
|
52 |
|
|
|
3 |
|
| Contingency loss (gain), net of legal costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(143 |
) |
|
|
(143 |
) |
|
|
— |
|
| Net gain related to partial acreage dedication release |
|
|
— |
|
|
|
— |
|
|
|
(12 |
) |
|
|
— |
|
|
|
(12 |
) |
|
|
— |
|
| Loss related to compressor station fire |
|
|
6 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6 |
|
|
|
— |
|
| Loss related to Opal incident |
|
|
— |
|
|
|
6 |
|
|
|
— |
|
|
|
2 |
|
|
|
8 |
|
|
|
1 |
|
| Loss on sale of equipment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7 |
|
|
|
7 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total EBITDA adjustments |
|
|
60 |
|
|
|
121 |
|
|
|
64 |
|
|
|
(248 |
) |
|
|
(3 |
) |
|
|
100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted EBITDA |
|
$ |
768 |
|
|
$ |
717 |
|
|
$ |
907 |
|
|
$ |
849 |
|
|
$ |
3,241 |
|
|
$ |
917 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Maintenance capital expenditures(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(54 |
) |
| Interest expense (cash portion)(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(204 |
) |
| Cash taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1 |
) |
| Income attributable to noncontrolling interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(23 |
) |
| WPZ restricted stock unit non-cash compensation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7 |
|
| Plymouth incident adjustment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Distributable cash flow attributable to Partnership Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
646 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total cash distributed |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
725 |
|
|
|
|
|
|
|
|
| Coverage ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Distributable cash flow attributable to partnership operations divided by Total cash distributed |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.89 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income divided by Total cash distributed |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| * |
Recast due to the merger between Williams Partners L.P. and Access Midstream Partners, L.P. and the change to Modified EBITDA as our measure of segment performance in
first quarter 2015. |
|
|
|
|
|
| Notes: |
|
(1) |
|
Includes proportionate share of maintenance capital expenditures of equity investments. |
|
|
|
|
|
(2) |
|
Includes proportionate share of interest expense of equity investments. |
Williams Partners L.P.
Reconciliation of Non-GAAP “Modified EBITDA” to Non-GAAP “Adjusted EBITDA”
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2014* |
|
|
2015 |
|
| (Dollars in millions) |
|
1st Qtr |
|
|
2nd Qtr |
|
|
3rd Qtr |
|
|
4th Qtr |
|
|
Year |
|
|
1st Qtr |
|
| Modified EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Access Midstream |
|
$ |
— |
|
|
$ |
(2 |
) |
|
$ |
254 |
|
|
$ |
390 |
|
|
$ |
642 |
|
|
$ |
228 |
|
| Northeast G&P |
|
|
48 |
|
|
|
59 |
|
|
|
80 |
|
|
|
208 |
|
|
|
395 |
|
|
|
90 |
|
| Atlantic-Gulf |
|
|
266 |
|
|
|
270 |
|
|
|
271 |
|
|
|
258 |
|
|
|
1,065 |
|
|
|
335 |
|
| West |
|
|
212 |
|
|
|
199 |
|
|
|
224 |
|
|
|
188 |
|
|
|
823 |
|
|
|
161 |
|
| NGL & Petchem Services |
|
|
182 |
|
|
|
72 |
|
|
|
17 |
|
|
|
53 |
|
|
|
324 |
|
|
|
6 |
|
| Other |
|
|
— |
|
|
|
(2 |
) |
|
|
(3 |
) |
|
|
— |
|
|
|
(5 |
) |
|
|
(3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Modified EBITDA |
|
$ |
708 |
|
|
$ |
596 |
|
|
$ |
843 |
|
|
$ |
1,097 |
|
|
$ |
3,244 |
|
|
$ |
817 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Access Midstream |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Acquisition-related expenses |
|
$ |
— |
|
|
$ |
2 |
|
|
$ |
13 |
|
|
$ |
1 |
|
|
$ |
16 |
|
|
$ |
— |
|
| Merger and transition costs |
|
|
— |
|
|
|
— |
|
|
|
8 |
|
|
|
29 |
|
|
|
37 |
|
|
|
30 |
|
| Loss on sale of equipment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7 |
|
|
|
7 |
|
|
|
— |
|
| Impairment of certain materials and equipment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12 |
|
|
|
12 |
|
|
|
1 |
|
| Estimated minimum volume commitments |
|
|
— |
|
|
|
— |
|
|
|
47 |
|
|
|
(114 |
) |
|
|
(67 |
) |
|
|
55 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Access Midstream adjustments |
|
|
— |
|
|
|
2 |
|
|
|
68 |
|
|
|
(65 |
) |
|
|
5 |
|
|
|
86 |
|
| Northeast G&P |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Share of impairment at equity-method investment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8 |
|
| Contingency (gain) loss, net of legal costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(143 |
) |
|
|
(143 |
) |
|
|
— |
|
| Loss related to compressor station fire |
|
|
6 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6 |
|
|
|
— |
|
| Net gain related to partial acreage dedication release |
|
|
— |
|
|
|
— |
|
|
|
(12 |
) |
|
|
— |
|
|
|
(12 |
) |
|
|
— |
|
| Impairment of certain materials and equipment |
|
|
— |
|
|
|
17 |
|
|
|
— |
|
|
|
13 |
|
|
|
30 |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Northeast G&P adjustments |
|
|
6 |
|
|
|
17 |
|
|
|
(12 |
) |
|
|
(130 |
) |
|
|
(119 |
) |
|
|
10 |
|
| Atlantic-Gulf |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Impairment of certain equipment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10 |
|
|
|
10 |
|
|
|
— |
|
| Total Atlantic-Gulf adjustments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10 |
|
|
|
10 |
|
|
|
— |
|
| West |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss related to Opal incident |
|
|
— |
|
|
|
6 |
|
|
|
— |
|
|
|
2 |
|
|
|
8 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total West adjustments |
|
|
— |
|
|
|
6 |
|
|
|
— |
|
|
|
2 |
|
|
|
8 |
|
|
|
1 |
|
| NGL & Petchem Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss related to Geismar Incident |
|
|
— |
|
|
|
— |
|
|
|
5 |
|
|
|
5 |
|
|
|
10 |
|
|
|
1 |
|
| Geismar Incident adjustment for insurance and timing |
|
|
54 |
|
|
|
96 |
|
|
|
— |
|
|
|
(71 |
) |
|
|
79 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total NGL & Petchem Services adjustments |
|
|
54 |
|
|
|
96 |
|
|
|
5 |
|
|
|
(66 |
) |
|
|
89 |
|
|
|
1 |
|
| Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| WPZ conflicts committee costs associated with merger |
|
|
— |
|
|
|
— |
|
|
|
3 |
|
|
|
1 |
|
|
|
4 |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Other adjustments |
|
|
— |
|
|
|
— |
|
|
|
3 |
|
|
|
1 |
|
|
|
4 |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Adjustments |
|
$ |
60 |
|
|
$ |
121 |
|
|
$ |
64 |
|
|
$ |
(248 |
) |
|
$ |
(3 |
) |
|
$ |
100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Access Midstream |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
322 |
|
|
$ |
325 |
|
|
$ |
647 |
|
|
$ |
314 |
|
| Northeast G&P |
|
|
54 |
|
|
|
76 |
|
|
|
68 |
|
|
|
78 |
|
|
|
276 |
|
|
|
100 |
|
| Atlantic-Gulf |
|
|
266 |
|
|
|
270 |
|
|
|
271 |
|
|
|
268 |
|
|
|
1,075 |
|
|
|
335 |
|
| West |
|
|
212 |
|
|
|
205 |
|
|
|
224 |
|
|
|
190 |
|
|
|
831 |
|
|
|
162 |
|
| NGL & Petchem Services |
|
|
236 |
|
|
|
168 |
|
|
|
22 |
|
|
|
(13 |
) |
|
|
413 |
|
|
|
7 |
|
| Other |
|
|
— |
|
|
|
(2 |
) |
|
|
— |
|
|
|
1 |
|
|
|
(1 |
) |
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Adjusted EBITDA |
|
$ |
768 |
|
|
$ |
717 |
|
|
$ |
907 |
|
|
$ |
849 |
|
|
$ |
3,241 |
|
|
$ |
917 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| * |
Recast due to the merger between Williams Partners L.P. and Access Midstream Partners, L.P. and for the change to Modified EBITDA as our measure of segment performance
in first quarter 2015. |
Williams Partners L.P.
Consolidated Statement of Income
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2014* |
|
|
2015 |
|
| (Dollars in millions, except per-unit amounts) |
|
1st Qtr |
|
|
2nd Qtr |
|
|
3rd Qtr |
|
|
4th Qtr |
|
|
Year |
|
|
1st Qtr |
|
| Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Service revenues |
|
$ |
763 |
|
|
$ |
763 |
|
|
$ |
1,066 |
|
|
$ |
1,296 |
|
|
$ |
3,888 |
|
|
$ |
1,192 |
|
| Product sales |
|
|
930 |
|
|
|
853 |
|
|
|
942 |
|
|
|
796 |
|
|
|
3,521 |
|
|
|
519 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total revenues |
|
|
1,693 |
|
|
|
1,616 |
|
|
|
2,008 |
|
|
|
2,092 |
|
|
|
7,409 |
|
|
|
1,711 |
|
| Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Product costs |
|
|
769 |
|
|
|
724 |
|
|
|
807 |
|
|
|
716 |
|
|
|
3,016 |
|
|
|
463 |
|
| Operating and maintenance expenses |
|
|
248 |
|
|
|
251 |
|
|
|
354 |
|
|
|
424 |
|
|
|
1,277 |
|
|
|
380 |
|
| Depreciation and amortization expenses |
|
|
208 |
|
|
|
207 |
|
|
|
364 |
|
|
|
372 |
|
|
|
1,151 |
|
|
|
419 |
|
| Selling, general, and administrative expenses |
|
|
130 |
|
|
|
134 |
|
|
|
168 |
|
|
|
201 |
|
|
|
633 |
|
|
|
193 |
|
| Net insurance recoveries—Geismar Incident |
|
|
(119 |
) |
|
|
(42 |
) |
|
|
— |
|
|
|
(71 |
) |
|
|
(232 |
) |
|
|
— |
|
| Other (income) expense—net |
|
|
17 |
|
|
|
27 |
|
|
|
3 |
|
|
|
(92 |
) |
|
|
(45 |
) |
|
|
17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total costs and expenses |
|
|
1,253 |
|
|
|
1,301 |
|
|
|
1,696 |
|
|
|
1,550 |
|
|
|
5,800 |
|
|
|
1,472 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating income |
|
|
440 |
|
|
|
315 |
|
|
|
312 |
|
|
|
542 |
|
|
|
1,609 |
|
|
|
239 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Equity earnings (losses) |
|
|
23 |
|
|
|
32 |
|
|
|
85 |
|
|
|
88 |
|
|
|
228 |
|
|
|
51 |
|
| Other investing income (loss)—net |
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
2 |
|
|
|
1 |
|
| Interest incurred |
|
|
(131 |
) |
|
|
(151 |
) |
|
|
(200 |
) |
|
|
(201 |
) |
|
|
(683 |
) |
|
|
(209 |
) |
| Interest capitalized |
|
|
25 |
|
|
|
25 |
|
|
|
46 |
|
|
|
25 |
|
|
|
121 |
|
|
|
17 |
|
| Other income (expense)—net |
|
|
3 |
|
|
|
6 |
|
|
|
14 |
|
|
|
13 |
|
|
|
36 |
|
|
|
16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income before income taxes |
|
|
360 |
|
|
|
228 |
|
|
|
257 |
|
|
|
468 |
|
|
|
1,313 |
|
|
|
115 |
|
| Provision (benefit) for income taxes |
|
|
8 |
|
|
|
5 |
|
|
|
10 |
|
|
|
6 |
|
|
|
29 |
|
|
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income |
|
|
352 |
|
|
|
223 |
|
|
|
247 |
|
|
|
462 |
|
|
|
1,284 |
|
|
|
112 |
|
| Less: Net income attributable to noncontrolling interests |
|
|
— |
|
|
|
2 |
|
|
|
14 |
|
|
|
80 |
|
|
|
96 |
|
|
|
23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income attributable to controlling interests |
|
$ |
352 |
|
|
$ |
221 |
|
|
$ |
233 |
|
|
$ |
382 |
|
|
$ |
1,188 |
|
|
$ |
89 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Allocation of net income (loss) for calculation of earnings per common unit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income attributable to controlling interests |
|
$ |
352 |
|
|
$ |
221 |
|
|
$ |
233 |
|
|
$ |
382 |
|
|
$ |
1,188 |
|
|
$ |
89 |
|
| Allocation of net income (loss) to general partner |
|
|
180 |
|
|
|
157 |
|
|
|
187 |
|
|
|
232 |
|
|
|
756 |
|
|
|
195 |
|
| Allocation of net income (loss) to Class B units |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2 |
) |
| Allocation of net income (loss) to Class D units |
|
|
14 |
|
|
|
18 |
|
|
|
17 |
|
|
|
24 |
|
|
|
73 |
|
|
|
68 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Allocation of net income (loss) to common units |
|
$ |
158 |
|
|
$ |
46 |
|
|
$ |
29 |
|
|
$ |
126 |
|
|
$ |
359 |
|
|
$ |
(172 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) per common unit |
|
$ |
.44 |
|
|
$ |
.13 |
|
|
$ |
.08 |
|
|
$ |
.35 |
|
|
$ |
.99 |
|
|
$ |
(0.34 |
) |
| Weighted-average number of common units outstanding (thousands) |
|
|
361,620 |
|
|
|
361,620 |
|
|
|
362,064 |
|
|
|
362,556 |
|
|
|
361,968 |
|
|
|
507,001 |
|
| Cash distributions per common unit |
|
$ |
.9045 |
|
|
$ |
.9165 |
|
|
$ |
.9285 |
|
|
$ |
.8500 |
|
|
$ |
3.5995 |
|
|
$ |
.8500 |
|
| * |
Recast due to the merger between Williams Partners L.P. and Access Midstream Partners, L.P. in first quarter 2015. |
| Note: |
The sum of net income per common unit for the quarters may not equal the total income per common unit for the year due to changes in the weighted-average number of
common units outstanding. |
Williams Partners L.P.
Access Midstream
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2014* |
|
|
2015 |
|
| (Dollars in millions) |
|
1st Qtr |
|
|
2nd Qtr |
|
|
3rd Qtr |
|
|
4th Qtr |
|
|
Year |
|
|
1st Qtr |
|
| Service Revenues |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
292 |
|
|
$ |
473 |
|
|
$ |
765 |
|
|
$ |
299 |
|
|
|
|
|
|
|
|
| Segment costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating and maintenance expense |
|
|
— |
|
|
|
— |
|
|
|
82 |
|
|
|
111 |
|
|
|
193 |
|
|
|
93 |
|
| Selling, general, and administrative |
|
|
— |
|
|
|
2 |
|
|
|
37 |
|
|
|
46 |
|
|
|
85 |
|
|
|
57 |
|
| Other (income) expense—net |
|
|
— |
|
|
|
— |
|
|
|
3 |
|
|
|
20 |
|
|
|
23 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total segment costs and expenses |
|
|
— |
|
|
|
2 |
|
|
|
122 |
|
|
|
177 |
|
|
|
301 |
|
|
|
151 |
|
| Proportional Modified EBITDA of equity-method investments |
|
|
— |
|
|
|
— |
|
|
|
84 |
|
|
|
94 |
|
|
|
178 |
|
|
|
80 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Modified EBITDA |
|
|
— |
|
|
|
(2 |
) |
|
|
254 |
|
|
|
390 |
|
|
|
642 |
|
|
|
228 |
|
| Adjustments |
|
|
— |
|
|
|
2 |
|
|
|
68 |
|
|
|
(65 |
) |
|
|
5 |
|
|
|
86 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted EBITDA |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
322 |
|
|
$ |
325 |
|
|
$ |
647 |
|
|
$ |
314 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Distributions received |
|
$ |
31 |
|
|
$ |
33 |
|
|
$ |
78 |
|
|
$ |
83 |
|
|
$ |
225 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
| Operating statistics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Throughput, bcf per day (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Barnett shale |
|
|
|
|
|
|
|
|
|
|
.876 |
|
|
|
.853 |
|
|
|
.865 |
|
|
|
.812 |
|
| Eagle Ford shale |
|
|
|
|
|
|
|
|
|
|
.348 |
|
|
|
.376 |
|
|
|
.362 |
|
|
|
.388 |
|
| Haynesville shale |
|
|
|
|
|
|
|
|
|
|
.714 |
|
|
|
.802 |
|
|
|
.758 |
|
|
|
.971 |
|
| Marcellus shale |
|
|
|
|
|
|
|
|
|
|
1.193 |
|
|
|
1.272 |
|
|
|
1.233 |
|
|
|
1.232 |
|
| Utica shale |
|
|
|
|
|
|
|
|
|
|
.418 |
|
|
|
.484 |
|
|
|
.451 |
|
|
|
.513 |
|
| Mid-Continent |
|
|
|
|
|
|
|
|
|
|
.554 |
|
|
|
.537 |
|
|
|
.545 |
|
|
|
.506 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total throughput |
|
|
|
|
|
|
|
|
|
|
4.103 |
|
|
|
4.324 |
|
|
|
4.214 |
|
|
|
4.422 |
|
| * |
Recast due to the merger between Williams Partners L.P. and Access Midstream Partners, L.P. and the change to Modified EBITDA as our measure of segment performance in
first quarter 2015. |
| (1) |
Throughput in all regions represents the net throughput allocated to the Partnership’s interest. |
Williams Partners L.P.
Northeast G&P
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2014* |
|
|
2015 |
|
| (Dollars in millions) |
|
1st Qtr |
|
|
2nd Qtr |
|
|
3rd Qtr |
|
|
4th Qtr |
|
|
Year |
|
|
1st Qtr |
|
| Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fee-based revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gathering & processing |
|
$ |
90 |
|
|
$ |
93 |
|
|
$ |
99 |
|
|
$ |
112 |
|
|
$ |
394 |
|
|
$ |
127 |
|
| Production handling and transportation |
|
|
3 |
|
|
|
2 |
|
|
|
4 |
|
|
|
5 |
|
|
|
14 |
|
|
|
4 |
|
| Other fee revenues |
|
|
6 |
|
|
|
12 |
|
|
|
11 |
|
|
|
15 |
|
|
|
44 |
|
|
|
11 |
|
| Commodity-based revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NGL sales from gas processing |
|
|
2 |
|
|
|
2 |
|
|
|
2 |
|
|
|
3 |
|
|
|
9 |
|
|
|
2 |
|
| Marketing sales |
|
|
58 |
|
|
|
35 |
|
|
|
66 |
|
|
|
62 |
|
|
|
221 |
|
|
|
36 |
|
| Other sales |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
159 |
|
|
|
144 |
|
|
|
182 |
|
|
|
197 |
|
|
|
682 |
|
|
|
180 |
|
| Intrasegment eliminations |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
(1 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total revenues |
|
|
159 |
|
|
|
144 |
|
|
|
182 |
|
|
|
196 |
|
|
|
681 |
|
|
|
180 |
|
| Segment costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NGL cost of goods sold |
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
1 |
|
| Marketing cost of goods sold |
|
|
57 |
|
|
|
37 |
|
|
|
65 |
|
|
|
62 |
|
|
|
221 |
|
|
|
36 |
|
| Other segment costs and expenses |
|
|
62 |
|
|
|
67 |
|
|
|
48 |
|
|
|
(59 |
) |
|
|
118 |
|
|
|
60 |
|
| Intrasegment eliminations |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
(1 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total segment costs and expenses |
|
|
120 |
|
|
|
104 |
|
|
|
113 |
|
|
|
1 |
|
|
|
338 |
|
|
|
97 |
|
|
|
|
|
|
|
|
| Proportional Modified EBITDA of equity-method investments |
|
|
9 |
|
|
|
19 |
|
|
|
11 |
|
|
|
13 |
|
|
|
52 |
|
|
|
7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Modified EBITDA |
|
|
48 |
|
|
|
59 |
|
|
|
80 |
|
|
|
208 |
|
|
|
395 |
|
|
|
90 |
|
| Adjustments |
|
|
6 |
|
|
|
17 |
|
|
|
(12 |
) |
|
|
(130 |
) |
|
|
(119 |
) |
|
|
10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted EBITDA |
|
$ |
54 |
|
|
$ |
76 |
|
|
$ |
68 |
|
|
$ |
78 |
|
|
$ |
276 |
|
|
$ |
100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating statistics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gathering and Processing** |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gathering volumes (Tbtu) |
|
|
179 |
|
|
|
189 |
|
|
|
193 |
|
|
|
227 |
|
|
|
788 |
|
|
|
236 |
|
| Plant inlet natural gas volumes (Tbtu) |
|
|
29 |
|
|
|
27 |
|
|
|
30 |
|
|
|
32 |
|
|
|
118 |
|
|
|
34 |
|
| Ethane equity sales (million gallons) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3 |
|
|
|
3 |
|
|
|
4 |
|
| Non-ethane equity sales (million gallons) |
|
|
2 |
|
|
|
1 |
|
|
|
3 |
|
|
|
2 |
|
|
|
8 |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NGL equity sales (million gallons) |
|
|
2 |
|
|
|
1 |
|
|
|
3 |
|
|
|
5 |
|
|
|
11 |
|
|
|
6 |
|
| Ethane production (million gallons) |
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
30 |
|
|
|
33 |
|
|
|
4 |
|
| Non-ethane production (million gallons) |
|
|
38 |
|
|
|
37 |
|
|
|
42 |
|
|
|
40 |
|
|
|
157 |
|
|
|
45 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NGL production (million gallons) |
|
|
39 |
|
|
|
38 |
|
|
|
43 |
|
|
|
70 |
|
|
|
190 |
|
|
|
49 |
|
|
|
|
|
|
|
|
| Laurel Mountain Midstream LLC (equity investment) - 100% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gathering volumes (Tbtu) |
|
|
34 |
|
|
|
36 |
|
|
|
38 |
|
|
|
40 |
|
|
|
148 |
|
|
|
40 |
|
| * |
Recast due to the change to Modified EBITDA as our measure of segment performance in first quarter of 2015. |
| ** |
Excludes volumes associated with partially owned assets that are not consolidated for financial reporting purposes. |
Williams Partners L.P.
Atlantic-Gulf
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2014* |
|
|
2015 |
|
| (Dollars in millions) |
|
1st Qtr |
|
|
2nd Qtr |
|
|
3rd Qtr |
|
|
4th Qtr |
|
|
Year |
|
|
1st Qtr |
|
| Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fee-based revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gathering & processing |
|
$ |
16 |
|
|
$ |
21 |
|
|
$ |
21 |
|
|
$ |
20 |
|
|
$ |
78 |
|
|
$ |
26 |
|
| Production handling and transportation |
|
|
307 |
|
|
|
293 |
|
|
|
296 |
|
|
|
328 |
|
|
|
1,224 |
|
|
|
377 |
|
| Other fee revenues |
|
|
30 |
|
|
|
29 |
|
|
|
28 |
|
|
|
27 |
|
|
|
114 |
|
|
|
29 |
|
| Commodity-based revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NGL sales from gas processing |
|
|
20 |
|
|
|
25 |
|
|
|
19 |
|
|
|
14 |
|
|
|
78 |
|
|
|
11 |
|
| Marketing sales |
|
|
171 |
|
|
|
162 |
|
|
|
171 |
|
|
|
139 |
|
|
|
643 |
|
|
|
87 |
|
| Other sales |
|
|
1 |
|
|
|
1 |
|
|
|
2 |
|
|
|
(1 |
) |
|
|
3 |
|
|
|
— |
|
| Tracked revenues: |
|
|
53 |
|
|
|
40 |
|
|
|
52 |
|
|
|
62 |
|
|
|
207 |
|
|
|
49 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
598 |
|
|
|
571 |
|
|
|
589 |
|
|
|
589 |
|
|
|
2,347 |
|
|
|
579 |
|
| Intrasegment eliminations |
|
|
2 |
|
|
|
2 |
|
|
|
1 |
|
|
|
2 |
|
|
|
7 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total revenues |
|
|
600 |
|
|
|
573 |
|
|
|
590 |
|
|
|
591 |
|
|
|
2,354 |
|
|
|
579 |
|
|
|
|
|
|
|
|
| Segment costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NGL cost of goods sold |
|
|
6 |
|
|
|
5 |
|
|
|
5 |
|
|
|
5 |
|
|
|
21 |
|
|
|
4 |
|
| Marketing cost of goods sold |
|
|
171 |
|
|
|
162 |
|
|
|
171 |
|
|
|
140 |
|
|
|
644 |
|
|
|
87 |
|
| Other segment costs and expenses |
|
|
137 |
|
|
|
128 |
|
|
|
133 |
|
|
|
164 |
|
|
|
562 |
|
|
|
142 |
|
| Tracked costs |
|
|
53 |
|
|
|
40 |
|
|
|
52 |
|
|
|
62 |
|
|
|
207 |
|
|
|
49 |
|
| Intrasegment eliminations |
|
|
2 |
|
|
|
2 |
|
|
|
1 |
|
|
|
1 |
|
|
|
6 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total segment costs and expenses |
|
|
369 |
|
|
|
337 |
|
|
|
362 |
|
|
|
372 |
|
|
|
1,440 |
|
|
|
282 |
|
|
|
|
|
|
|
|
| Proportional Modified EBITDA of equity-method investments |
|
|
35 |
|
|
|
34 |
|
|
|
43 |
|
|
|
39 |
|
|
|
151 |
|
|
|
38 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Modifed EBITDA |
|
|
266 |
|
|
|
270 |
|
|
|
271 |
|
|
|
258 |
|
|
|
1,065 |
|
|
|
335 |
|
| Adjustments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10 |
|
|
|
10 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted EBITDA |
|
$ |
266 |
|
|
$ |
270 |
|
|
$ |
271 |
|
|
$ |
268 |
|
|
$ |
1,075 |
|
|
$ |
335 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating statistics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gathering and Processing** |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gathering volumes (Tbtu) |
|
|
28 |
|
|
|
31 |
|
|
|
30 |
|
|
|
27 |
|
|
|
116 |
|
|
|
34 |
|
| Plant inlet natural gas volumes (Tbtu) |
|
|
60 |
|
|
|
72 |
|
|
|
73 |
|
|
|
73 |
|
|
|
278 |
|
|
|
72 |
|
|
|
|
|
|
|
|
| Ethane equity sales (million gallons) |
|
|
2 |
|
|
|
6 |
|
|
|
8 |
|
|
|
2 |
|
|
|
18 |
|
|
|
11 |
|
| Non-ethane equity sales (million gallons) |
|
|
12 |
|
|
|
18 |
|
|
|
13 |
|
|
|
13 |
|
|
|
56 |
|
|
|
15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NGL equity sales (million gallons) |
|
|
14 |
|
|
|
24 |
|
|
|
21 |
|
|
|
15 |
|
|
|
74 |
|
|
|
26 |
|
|
|
|
|
|
|
|
| Ethane margin ($/gallon) |
|
$ |
.46 |
|
|
$ |
.23 |
|
|
$ |
.14 |
|
|
$ |
(.03 |
) |
|
$ |
.18 |
|
|
$ |
.04 |
|
| Non-ethane margin ($/gallon) |
|
$ |
1.10 |
|
|
$ |
1.04 |
|
|
$ |
1.00 |
|
|
$ |
.69 |
|
|
$ |
.96 |
|
|
$ |
.43 |
|
| NGL margin ($/gallon) |
|
$ |
1.02 |
|
|
$ |
.82 |
|
|
$ |
.68 |
|
|
$ |
.59 |
|
|
$ |
.77 |
|
|
$ |
.26 |
|
|
|
|
|
|
|
|
| Ethane production (million gallons) |
|
|
45 |
|
|
|
57 |
|
|
|
60 |
|
|
|
59 |
|
|
|
221 |
|
|
|
38 |
|
| Non-ethane production (million gallons) |
|
|
71 |
|
|
|
87 |
|
|
|
92 |
|
|
|
93 |
|
|
|
343 |
|
|
|
94 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NGL production (million gallons) |
|
|
116 |
|
|
|
144 |
|
|
|
152 |
|
|
|
152 |
|
|
|
564 |
|
|
|
132 |
|
|
|
|
|
|
|
|
| Discovery Producer Services LLC (equity investment) - 100% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NGL equity sales (million gallons) |
|
|
10 |
|
|
|
10 |
|
|
|
18 |
|
|
|
15 |
|
|
|
53 |
|
|
|
17 |
|
| NGL production (million gallons) |
|
|
47 |
|
|
|
54 |
|
|
|
65 |
|
|
|
61 |
|
|
|
227 |
|
|
|
62 |
|
|
|
|
|
|
|
|
| Transcontinental Gas Pipe Line |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Throughput (Tbtu) |
|
|
949.2 |
|
|
|
796.8 |
|
|
|
821.3 |
|
|
|
887.3 |
|
|
|
3,454.6 |
|
|
|
1,005.1 |
|
| Avg. daily transportation volumes (Tbtu) |
|
|
10.5 |
|
|
|
8.8 |
|
|
|
8.9 |
|
|
|
9.6 |
|
|
|
9.5 |
|
|
|
11.2 |
|
| Avg. daily firm reserved capacity (Tbtu) |
|
|
9.6 |
|
|
|
9.4 |
|
|
|
9.5 |
|
|
|
9.9 |
|
|
|
9.6 |
|
|
|
10.5 |
|
| * |
Recast due to the change to Modified EBITDA as our measure of segment performance in first quarter 2015. |
| ** |
Excludes volumes associated with partially owned assets that are not consolidated for financial reporting purposes. |
Williams Partners L.P.
West
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2014* |
|
|
2015 |
|
| (Dollars in millions) |
|
1st Qtr |
|
|
2nd Qtr |
|
|
3rd Qtr |
|
|
4th Qtr |
|
|
Year |
|
|
1st Qtr |
|
| Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fee-based revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gathering & processing |
|
$ |
132 |
|
|
$ |
141 |
|
|
$ |
144 |
|
|
$ |
143 |
|
|
$ |
560 |
|
|
$ |
138 |
|
| Production handling and transportation |
|
|
116 |
|
|
|
112 |
|
|
|
113 |
|
|
|
117 |
|
|
|
458 |
|
|
|
116 |
|
| Other fee revenues |
|
|
8 |
|
|
|
8 |
|
|
|
8 |
|
|
|
8 |
|
|
|
32 |
|
|
|
8 |
|
| Commodity-based revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NGL sales from gas processing |
|
|
103 |
|
|
|
95 |
|
|
|
116 |
|
|
|
88 |
|
|
|
402 |
|
|
|
48 |
|
| Marketing sales |
|
|
30 |
|
|
|
28 |
|
|
|
29 |
|
|
|
20 |
|
|
|
107 |
|
|
|
10 |
|
| Other sales |
|
|
12 |
|
|
|
9 |
|
|
|
10 |
|
|
|
6 |
|
|
|
37 |
|
|
|
6 |
|
| Tracked revenues |
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
401 |
|
|
|
394 |
|
|
|
420 |
|
|
|
382 |
|
|
|
1,597 |
|
|
|
326 |
|
| Intrasegment eliminations |
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total revenues |
|
|
401 |
|
|
|
393 |
|
|
|
420 |
|
|
|
382 |
|
|
|
1,596 |
|
|
|
326 |
|
|
|
|
|
|
|
|
| Segment costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NGL cost of goods sold |
|
|
38 |
|
|
|
35 |
|
|
|
41 |
|
|
|
33 |
|
|
|
147 |
|
|
|
23 |
|
| Marketing cost of goods sold |
|
|
30 |
|
|
|
27 |
|
|
|
29 |
|
|
|
19 |
|
|
|
105 |
|
|
|
10 |
|
| Other cost of goods sold |
|
|
4 |
|
|
|
6 |
|
|
|
4 |
|
|
|
4 |
|
|
|
18 |
|
|
|
3 |
|
| Other segment costs and expenses |
|
|
117 |
|
|
|
126 |
|
|
|
122 |
|
|
|
138 |
|
|
|
503 |
|
|
|
129 |
|
| Tracked costs |
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
| Intrasegment eliminations |
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total segment costs and expenses |
|
|
189 |
|
|
|
194 |
|
|
|
196 |
|
|
|
194 |
|
|
|
773 |
|
|
|
165 |
|
|
|
|
|
|
|
|
| Proportional Modified EBITDA of equity-method investments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Modifed EBITDA |
|
|
212 |
|
|
|
199 |
|
|
|
224 |
|
|
|
188 |
|
|
|
823 |
|
|
|
161 |
|
| Adjustments |
|
|
— |
|
|
|
6 |
|
|
|
— |
|
|
|
2 |
|
|
|
8 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted EBITDA |
|
$ |
212 |
|
|
$ |
205 |
|
|
$ |
224 |
|
|
$ |
190 |
|
|
$ |
831 |
|
|
$ |
162 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating statistics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gathering and Processing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gathering volumes (Tbtu) |
|
|
229 |
|
|
|
230 |
|
|
|
238 |
|
|
|
234 |
|
|
|
931 |
|
|
|
223 |
|
| Plant inlet natural gas volumes (Tbtu) |
|
|
249 |
|
|
|
246 |
|
|
|
267 |
|
|
|
261 |
|
|
|
1,023 |
|
|
|
254 |
|
|
|
|
|
|
|
|
| Ethane equity sales (million gallons) |
|
|
4 |
|
|
|
5 |
|
|
|
7 |
|
|
|
4 |
|
|
|
20 |
|
|
|
2 |
|
| Non-ethane equity sales (million gallons) |
|
|
69 |
|
|
|
71 |
|
|
|
90 |
|
|
|
80 |
|
|
|
310 |
|
|
|
74 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NGL equity sales (million gallons) |
|
|
73 |
|
|
|
76 |
|
|
|
97 |
|
|
|
84 |
|
|
|
330 |
|
|
|
76 |
|
|
|
|
|
|
|
|
| Ethane margin ($/gallon) |
|
|
.12 |
|
|
|
.22 |
|
|
|
.21 |
|
|
|
.17 |
|
|
|
.19 |
|
|
|
.39 |
|
| Non-ethane margin ($/gallon) |
|
|
.94 |
|
|
|
.84 |
|
|
|
.81 |
|
|
|
.66 |
|
|
|
.81 |
|
|
|
.34 |
|
| NGL margin ($/gallon) |
|
|
.89 |
|
|
|
.80 |
|
|
|
.77 |
|
|
|
.64 |
|
|
|
.77 |
|
|
|
.34 |
|
|
|
|
|
|
|
|
| Ethane production (million gallons) |
|
|
60 |
|
|
|
86 |
|
|
|
64 |
|
|
|
40 |
|
|
|
250 |
|
|
|
33 |
|
| Non-ethane production (million gallons) |
|
|
233 |
|
|
|
232 |
|
|
|
255 |
|
|
|
245 |
|
|
|
965 |
|
|
|
236 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NGL production (million gallons) |
|
|
293 |
|
|
|
318 |
|
|
|
319 |
|
|
|
285 |
|
|
|
1,215 |
|
|
|
269 |
|
|
|
|
|
|
|
|
| Northwest Pipeline LLC |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Throughput (Tbtu) |
|
|
192.4 |
|
|
|
141.3 |
|
|
|
156.7 |
|
|
|
196.6 |
|
|
|
687.0 |
|
|
|
202.7 |
|
| Avg. daily transportation volumes (Tbtu) |
|
|
2.1 |
|
|
|
1.6 |
|
|
|
1.7 |
|
|
|
2.1 |
|
|
|
1.9 |
|
|
|
2.3 |
|
| Avg. daily firm reserved capacity (Tbtu) |
|
|
3.0 |
|
|
|
3.0 |
|
|
|
3.0 |
|
|
|
3.0 |
|
|
|
3.0 |
|
|
|
3.0 |
|
|
|
|
|
|
|
|
| Former ACMP Gathering Operations Throughput, bcf per day(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Niobrara |
|
|
— |
|
|
|
— |
|
|
|
.030 |
|
|
|
.034 |
|
|
|
.032 |
|
|
|
.039 |
|
| (1) |
Throughput represents the net throughput allocated to the Partnership’s interest. |
| * |
Recast due to the merger between Williams Partners L.P. and Access Midstream Partners, L.P. and the change to Modified EBITDA as our measure of segment performance in
first quarter 2015. |
Williams Partners L.P.
NGL & Petchem Services
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2014* |
|
|
2015 |
|
| (Dollars in millions) |
|
1st Qtr |
|
|
2nd Qtr |
|
|
3rd Qtr |
|
|
4th Qtr |
|
|
Year |
|
|
1st Qtr |
|
| Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fee-based revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Production handling and transportation |
|
$ |
7 |
|
|
$ |
7 |
|
|
$ |
7 |
|
|
$ |
7 |
|
|
$ |
28 |
|
|
$ |
7 |
|
| Other fee-based revenues |
|
|
33 |
|
|
|
33 |
|
|
|
33 |
|
|
|
35 |
|
|
|
134 |
|
|
|
41 |
|
| Commodity-based revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NGL sales from gas processing |
|
|
54 |
|
|
|
32 |
|
|
|
31 |
|
|
|
41 |
|
|
|
158 |
|
|
|
28 |
|
| Olefin sales |
|
|
79 |
|
|
|
96 |
|
|
|
73 |
|
|
|
93 |
|
|
|
341 |
|
|
|
71 |
|
| Marketing sales |
|
|
698 |
|
|
|
680 |
|
|
|
748 |
|
|
|
589 |
|
|
|
2,715 |
|
|
|
378 |
|
| Other sales |
|
|
11 |
|
|
|
11 |
|
|
|
8 |
|
|
|
5 |
|
|
|
35 |
|
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
882 |
|
|
|
859 |
|
|
|
900 |
|
|
|
770 |
|
|
|
3,411 |
|
|
|
529 |
|
| Intrasegment eliminations |
|
|
(77 |
) |
|
|
(76 |
) |
|
|
(72 |
) |
|
|
(74 |
) |
|
|
(299 |
) |
|
|
(54 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total revenues |
|
|
805 |
|
|
|
783 |
|
|
|
828 |
|
|
|
696 |
|
|
|
3,112 |
|
|
|
475 |
|
|
|
|
|
|
|
|
| Segment costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NGL cost of goods sold |
|
|
28 |
|
|
|
20 |
|
|
|
19 |
|
|
|
23 |
|
|
|
90 |
|
|
|
19 |
|
| Olefins cost of goods sold |
|
|
51 |
|
|
|
69 |
|
|
|
46 |
|
|
|
65 |
|
|
|
231 |
|
|
|
62 |
|
| Marketing cost of goods sold |
|
|
684 |
|
|
|
681 |
|
|
|
752 |
|
|
|
629 |
|
|
|
2,746 |
|
|
|
381 |
|
| Other cost of goods sold |
|
|
12 |
|
|
|
10 |
|
|
|
8 |
|
|
|
7 |
|
|
|
37 |
|
|
|
6 |
|
| Net insurance recoveries—Geismar Incident |
|
|
(119 |
) |
|
|
(42 |
) |
|
|
— |
|
|
|
(71 |
) |
|
|
(232 |
) |
|
|
— |
|
| Other segment costs and expenses |
|
|
54 |
|
|
|
58 |
|
|
|
69 |
|
|
|
84 |
|
|
|
265 |
|
|
|
66 |
|
| Intrasegment eliminations |
|
|
(77 |
) |
|
|
(76 |
) |
|
|
(72 |
) |
|
|
(74 |
) |
|
|
(299 |
) |
|
|
(54 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total segment costs and expenses |
|
|
633 |
|
|
|
720 |
|
|
|
822 |
|
|
|
663 |
|
|
|
2,838 |
|
|
|
480 |
|
|
|
|
|
|
|
|
| Proportional Modified EBITDA of equity-method investments |
|
|
10 |
|
|
|
9 |
|
|
|
11 |
|
|
|
20 |
|
|
|
50 |
|
|
|
11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Modified EBITDA |
|
|
182 |
|
|
|
72 |
|
|
|
17 |
|
|
|
53 |
|
|
|
324 |
|
|
|
6 |
|
| Adjustments |
|
|
54 |
|
|
|
96 |
|
|
|
5 |
|
|
|
(66 |
) |
|
|
89 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted EBITDA |
|
$ |
236 |
|
|
$ |
168 |
|
|
$ |
22 |
|
|
$ |
(13 |
) |
|
$ |
413 |
|
|
$ |
7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating statistics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ethane equity sales (million gallons) |
|
|
27 |
|
|
|
28 |
|
|
|
28 |
|
|
|
33 |
|
|
|
116 |
|
|
|
36 |
|
| Non-ethane equity sales (million gallons) |
|
|
30 |
|
|
|
18 |
|
|
|
19 |
|
|
|
35 |
|
|
|
102 |
|
|
|
39 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NGL equity sales (million gallons) |
|
|
57 |
|
|
|
46 |
|
|
|
47 |
|
|
|
68 |
|
|
|
218 |
|
|
|
75 |
|
|
|
|
|
|
|
|
| Ethane production (million gallons) |
|
|
29 |
|
|
|
29 |
|
|
|
29 |
|
|
|
34 |
|
|
|
121 |
|
|
|
36 |
|
| Non-ethane production (million gallons) |
|
|
30 |
|
|
|
28 |
|
|
|
28 |
|
|
|
31 |
|
|
|
117 |
|
|
|
31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NGL production (million gallons) |
|
|
59 |
|
|
|
57 |
|
|
|
57 |
|
|
|
65 |
|
|
|
238 |
|
|
|
67 |
|
|
|
|
|
|
|
|
| Petrochemical Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Geismar ethylene sales volumes (million lbs) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
| Geismar ethylene margin ($/lb) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
| Canadian propylene sales volumes (millions lbs) |
|
|
32 |
|
|
|
34 |
|
|
|
34 |
|
|
|
43 |
|
|
|
143 |
|
|
|
39 |
|
| Canadian alky feedstock sales volumes (million gallons) |
|
|
7 |
|
|
|
7 |
|
|
|
6 |
|
|
|
7 |
|
|
|
27 |
|
|
|
7 |
|
|
|
|
|
|
|
|
| Overland Pass Pipeline Company LLC (equity investment)—100% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NGL Transportation volumes (Mbbls) |
|
|
8,612 |
|
|
|
8,926 |
|
|
|
9,482 |
|
|
|
10,118 |
|
|
|
37,138 |
|
|
|
10,845 |
|
| * |
Recast due to the change to Modified EBITDA as our measure of segment performance in first quarter 2015. |
Williams Partners L.P.
Capital Expenditures and Investments
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2014*** |
|
|
2015 |
|
| (Dollars in millions) |
|
1st Qtr |
|
|
2nd Qtr |
|
|
3rd Qtr |
|
|
4th Qtr |
|
|
Year |
|
|
1st Qtr |
|
| Capital expenditures: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Access Midstream |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
165 |
|
|
$ |
133 |
|
|
$ |
298 |
|
|
$ |
133 |
|
| Northeast G&P |
|
|
359 |
|
|
|
291 |
|
|
|
288 |
|
|
|
253 |
|
|
|
1,191 |
|
|
|
115 |
|
| Atlantic-Gulf |
|
|
180 |
|
|
|
412 |
|
|
|
319 |
|
|
|
387 |
|
|
|
1,298 |
|
|
|
361 |
|
| West |
|
|
22 |
|
|
|
27 |
|
|
|
120 |
|
|
|
100 |
|
|
|
269 |
|
|
|
50 |
|
| NGL & Petchem Services |
|
|
161 |
|
|
|
211 |
|
|
|
136 |
|
|
|
120 |
|
|
|
628 |
|
|
|
75 |
|
| Other |
|
|
2 |
|
|
|
2 |
|
|
|
1 |
|
|
|
3 |
|
|
|
8 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total* |
|
$ |
724 |
|
|
$ |
943 |
|
|
$ |
1,029 |
|
|
$ |
996 |
|
|
$ |
3,692 |
|
|
$ |
735 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Purchase of business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NGL & Petchem Services** |
|
$ |
25 |
|
|
$ |
31 |
|
|
$ |
— |
|
|
$ |
(56 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Purchase of investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Access Midstream |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
65 |
|
|
$ |
105 |
|
|
$ |
170 |
|
|
$ |
50 |
|
| Northeast G&P |
|
|
163 |
|
|
|
6 |
|
|
|
12 |
|
|
|
7 |
|
|
|
188 |
|
|
|
10 |
|
| Atlantic-Gulf |
|
|
51 |
|
|
|
9 |
|
|
|
21 |
|
|
|
25 |
|
|
|
106 |
|
|
|
20 |
|
| NGL & Petchem Services |
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
4 |
|
|
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
$ |
215 |
|
|
$ |
16 |
|
|
$ |
99 |
|
|
$ |
138 |
|
|
$ |
468 |
|
|
$ |
83 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Summary: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Access Midstream |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
230 |
|
|
$ |
238 |
|
|
$ |
468 |
|
|
$ |
183 |
|
| Northeast G&P |
|
$ |
522 |
|
|
$ |
297 |
|
|
$ |
300 |
|
|
$ |
260 |
|
|
$ |
1,379 |
|
|
$ |
125 |
|
| Atlantic-Gulf |
|
|
231 |
|
|
|
421 |
|
|
|
340 |
|
|
|
412 |
|
|
|
1,404 |
|
|
|
381 |
|
| West |
|
|
22 |
|
|
|
27 |
|
|
|
120 |
|
|
|
100 |
|
|
|
269 |
|
|
|
50 |
|
| NGL & Petchem Services |
|
|
187 |
|
|
|
243 |
|
|
|
137 |
|
|
|
65 |
|
|
|
632 |
|
|
|
78 |
|
| Other |
|
|
2 |
|
|
|
2 |
|
|
|
1 |
|
|
|
3 |
|
|
|
8 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
$ |
964 |
|
|
$ |
990 |
|
|
$ |
1,128 |
|
|
$ |
1,078 |
|
|
$ |
4,160 |
|
|
$ |
818 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capital expenditures incurred, purchase of business, and purchase of investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Increases to property, plant, and equipment |
|
$ |
769 |
|
|
$ |
867 |
|
|
$ |
1,017 |
|
|
$ |
918 |
|
|
$ |
3,571 |
|
|
$ |
645 |
|
| Purchase of business |
|
|
25 |
|
|
|
31 |
|
|
|
— |
|
|
|
(56 |
) |
|
|
— |
|
|
|
— |
|
| Purchase of investments |
|
|
215 |
|
|
|
16 |
|
|
|
99 |
|
|
|
138 |
|
|
|
468 |
|
|
|
83 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
$ |
1,009 |
|
|
$ |
914 |
|
|
$ |
1,116 |
|
|
$ |
1,000 |
|
|
$ |
4,039 |
|
|
$ |
728 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| *Increases to property, plant, and equipment |
|
$ |
769 |
|
|
$ |
867 |
|
|
$ |
1,017 |
|
|
$ |
918 |
|
|
$ |
3,571 |
|
|
$ |
645 |
|
| Changes in related accounts payable and accrued liabilities |
|
|
(45 |
) |
|
|
76 |
|
|
|
12 |
|
|
|
78 |
|
|
|
121 |
|
|
|
90 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capital expenditures |
|
$ |
724 |
|
|
$ |
943 |
|
|
$ |
1,029 |
|
|
$ |
996 |
|
|
$ |
3,692 |
|
|
$ |
735 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ** |
These amounts relate to adjustments from the acquisition of certain Canadian operations from a subsidiary of Williams. |
| *** |
Recast due to the merger between Williams Partners L.P. and Access Midstream Partners, L.P. in first quarter 2015. |
Pre-merger Williams Partners L.P.
Reconciliation of Non-GAAP Measures
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2014 |
|
| (Dollars in millions, except coverage ratios) |
|
1st Qtr |
|
|
2nd Qtr |
|
|
3rd Qtr |
|
|
4th Qtr |
|
|
Year |
|
| Williams Partners L.P. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation of Non-GAAP “Distributable cash flow” to GAAP “Net income” |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income |
|
$ |
352 |
|
|
$ |
234 |
|
|
$ |
218 |
|
|
$ |
300 |
|
|
$ |
1,104 |
|
| Income attributable to noncontrolling interests |
|
|
— |
|
|
|
(2 |
) |
|
|
(1 |
) |
|
|
(7 |
) |
|
|
(10 |
) |
| Depreciation and amortization |
|
|
208 |
|
|
|
207 |
|
|
|
209 |
|
|
|
231 |
|
|
|
855 |
|
| Non-cash amortization of debt issuance costs included in interest expense |
|
|
4 |
|
|
|
3 |
|
|
|
4 |
|
|
|
4 |
|
|
|
15 |
|
| Equity earnings from investments |
|
|
(23 |
) |
|
|
(32 |
) |
|
|
(36 |
) |
|
|
(41 |
) |
|
|
(132 |
) |
| Allocated reorganization-related costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Impairment of certain materials and equipment |
|
|
— |
|
|
|
17 |
|
|
|
— |
|
|
|
23 |
|
|
|
40 |
|
| Loss related to Geismar Incident |
|
|
— |
|
|
|
— |
|
|
|
5 |
|
|
|
5 |
|
|
|
10 |
|
| Geismar Incident adjustment for insurance and timing |
|
|
54 |
|
|
|
96 |
|
|
|
— |
|
|
|
(71 |
) |
|
|
79 |
|
| Contingency (gain) loss, net of legal costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(143 |
) |
|
|
(143 |
) |
| Reimbursements from Williams under omnibus agreements |
|
|
3 |
|
|
|
4 |
|
|
|
1 |
|
|
|
3 |
|
|
|
11 |
|
| Loss related to Opal incident |
|
|
— |
|
|
|
6 |
|
|
|
— |
|
|
|
2 |
|
|
|
8 |
|
| Plymouth incident adjustment |
|
|
— |
|
|
|
3 |
|
|
|
3 |
|
|
|
6 |
|
|
|
12 |
|
| Canadian income tax |
|
|
— |
|
|
|
4 |
|
|
|
8 |
|
|
|
28 |
|
|
|
40 |
|
| Income related to partial acreage dedication release |
|
|
— |
|
|
|
— |
|
|
|
(12 |
) |
|
|
— |
|
|
|
(12 |
) |
| Maintenance capital expenditures |
|
|
(36 |
) |
|
|
(90 |
) |
|
|
(103 |
) |
|
|
(126 |
) |
|
|
(355 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Distributable cash flow excluding equity investments |
|
|
562 |
|
|
|
450 |
|
|
|
296 |
|
|
|
214 |
|
|
|
1,522 |
|
| Plus: Equity investments cash distributions to Williams Partners L.P. |
|
|
43 |
|
|
|
54 |
|
|
|
71 |
|
|
|
52 |
|
|
|
220 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Distributable cash flow |
|
|
605 |
|
|
|
504 |
|
|
|
367 |
|
|
|
266 |
|
|
|
1,742 |
|
| Less: Pre-partnership distributable cash flow |
|
|
23 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Distributable cash flow attributable to partnership operations |
|
$ |
582 |
|
|
$ |
504 |
|
|
$ |
367 |
|
|
$ |
266 |
|
|
$ |
1,719 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total cash distributed |
|
$ |
566 |
|
|
$ |
577 |
|
|
$ |
587 |
|
|
$ |
— |
|
|
$ |
1,730 |
|
|
|
|
|
|
|
| Coverage ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Distributable cash flow attributable to partnership operations divided by Total cash distributed |
|
|
1.03 |
|
|
|
0.87 |
|
|
|
0.63 |
|
|
|
NA |
|
|
|
NA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income divided by Total cash distributed |
|
|
0.62 |
|
|
|
0.41 |
|
|
|
0.37 |
|
|
|
NA |
|
|
|
NA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WPZ Net Income to Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2015 |
|
|
2016 |
|
|
2017 |
|
| (‘$ in millions) |
|
Low |
|
|
Base |
|
|
High |
|
|
Low |
|
|
Base |
|
|
High |
|
|
Low |
|
|
Base |
|
|
High |
|
|
|
|
|
|
|
|
|
|
|
| Net income from continuing operations |
|
$ |
1,555 |
|
|
$ |
1,720 |
|
|
$ |
1,885 |
|
|
$ |
2,025 |
|
|
$ |
2,225 |
|
|
$ |
2,425 |
|
|
$ |
2,465 |
|
|
$ |
2,690 |
|
|
$ |
2,915 |
|
| Add: Net interest expense |
|
|
855 |
|
|
|
855 |
|
|
|
855 |
|
|
|
965 |
|
|
|
960 |
|
|
|
955 |
|
|
|
1,075 |
|
|
|
1,065 |
|
|
|
1,055 |
|
| Add: Provision for income taxes |
|
|
15 |
|
|
|
15 |
|
|
|
15 |
|
|
|
25 |
|
|
|
25 |
|
|
|
25 |
|
|
|
25 |
|
|
|
25 |
|
|
|
25 |
|
| Add: Depreciation & amortization (DD&A) |
|
|
1,705 |
|
|
|
1,705 |
|
|
|
1,705 |
|
|
|
1,800 |
|
|
|
1,800 |
|
|
|
1,800 |
|
|
|
1,875 |
|
|
|
1,875 |
|
|
|
1,875 |
|
| Less: Equity earnings from investments |
|
|
(380 |
) |
|
|
(385 |
) |
|
|
(390 |
) |
|
|
(495 |
) |
|
|
(505 |
) |
|
|
(515 |
) |
|
|
(645 |
) |
|
|
(660 |
) |
|
|
(675 |
) |
| Add: Proportionate share of EBITDA from investments1 |
|
|
665 |
|
|
|
670 |
|
|
|
675 |
|
|
|
800 |
|
|
|
810 |
|
|
|
820 |
|
|
|
955 |
|
|
|
970 |
|
|
|
985 |
|
| Adjustments2 |
|
|
(115 |
) |
|
|
(115 |
) |
|
|
(115 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted EBITDA |
|
$ |
4,300 |
|
|
$ |
4,465 |
|
|
$ |
4,630 |
|
|
$ |
5,120 |
|
|
$ |
5,315 |
|
|
$ |
5,510 |
|
|
$ |
5,750 |
|
|
$ |
5,965 |
|
|
$ |
6,180 |
|
|
|
|
|
| |
|
2015 |
|
|
2016 |
|
|
2017 |
|
| 1) Proportionate Share of EBITDA from investments: |
|
Low |
|
|
Base |
|
|
High |
|
|
Low |
|
|
Base |
|
|
High |
|
|
Low |
|
|
Base |
|
|
High |
|
|
|
|
|
|
|
|
|
|
|
| Net income from continuing operations |
|
$ |
380 |
|
|
$ |
385 |
|
|
$ |
390 |
|
|
$ |
495 |
|
|
$ |
505 |
|
|
$ |
515 |
|
|
$ |
645 |
|
|
$ |
660 |
|
|
$ |
675 |
|
| Add: Net interest expense |
|
|
53 |
|
|
|
53 |
|
|
|
53 |
|
|
|
58 |
|
|
|
58 |
|
|
|
58 |
|
|
|
61 |
|
|
|
61 |
|
|
|
61 |
|
| Add: Depreciation & amortization (DD&A) |
|
|
206 |
|
|
|
206 |
|
|
|
206 |
|
|
|
226 |
|
|
|
226 |
|
|
|
226 |
|
|
|
236 |
|
|
|
236 |
|
|
|
236 |
|
| Other |
|
|
26 |
|
|
|
26 |
|
|
|
26 |
|
|
|
21 |
|
|
|
21 |
|
|
|
21 |
|
|
|
13 |
|
|
|
13 |
|
|
|
13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted EBITDA from Equity Investments |
|
$ |
665 |
|
|
$ |
670 |
|
|
$ |
675 |
|
|
$ |
800 |
|
|
$ |
810 |
|
|
$ |
820 |
|
|
$ |
955 |
|
|
$ |
970 |
|
|
$ |
985 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2015 |
|
|
2016 |
|
|
2017 |
|
| 2) Adjustments: |
|
Low |
|
|
Base |
|
|
High |
|
|
Low |
|
|
Base |
|
|
High |
|
|
Low |
|
|
Base |
|
|
High |
|
|
|
|
|
|
|
|
|
|
|
| Geismar incident adjustment for insurance and timing |
|
($ |
150 |
) |
|
($ |
150 |
) |
|
($ |
150 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| ACMP acquisition-related expenses |
|
|
35 |
|
|
|
35 |
|
|
|
35 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Adjustments |
|
($ |
115 |
) |
|
($ |
115 |
) |
|
($ |
115 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WPZ Distributable Cash Flow and Cash Distribution Coverage Ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2015 |
|
|
2016 |
|
|
2017 |
|
| Dollars in millions, except per L.P. unit |
|
Low |
|
|
Base |
|
|
High |
|
|
Low |
|
|
Base |
|
|
High |
|
|
Low |
|
|
Base |
|
|
High |
|
|
|
|
|
|
|
|
|
|
|
| Adjusted EBITDA1 |
|
$ |
4,300 |
|
|
$ |
4,465 |
|
|
$ |
4,630 |
|
|
$ |
5,120 |
|
|
$ |
5,315 |
|
|
$ |
5,510 |
|
|
$ |
5,750 |
|
|
$ |
5,965 |
|
|
$ |
6,180 |
|
| Less: Maintenance Capex2 |
|
|
(430 |
) |
|
|
(430 |
) |
|
|
(430 |
) |
|
|
(440 |
) |
|
|
(440 |
) |
|
|
(440 |
) |
|
|
(440 |
) |
|
|
(440 |
) |
|
|
(440 |
) |
| Less: Interest Expense (cash portion)3 |
|
|
(885 |
) |
|
|
(885 |
) |
|
|
(885 |
) |
|
|
(1,000 |
) |
|
|
(995 |
) |
|
|
(990 |
) |
|
|
(1,110 |
) |
|
|
(1,100 |
) |
|
|
(1,090 |
) |
| Less: Cash Taxes |
|
|
(5 |
) |
|
|
(5 |
) |
|
|
(5 |
) |
|
|
(10 |
) |
|
|
(10 |
) |
|
|
(10 |
) |
|
|
(10 |
) |
|
|
(10 |
) |
|
|
(10 |
) |
| Less: Noncontrolling Interests |
|
|
(135 |
) |
|
|
(135 |
) |
|
|
(135 |
) |
|
|
(195 |
) |
|
|
(195 |
) |
|
|
(195 |
) |
|
|
(230 |
) |
|
|
(230 |
) |
|
|
(230 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Distributable Cash Flow Attributable to Partnership Operations |
|
$ |
2,845 |
|
|
$ |
3,010 |
|
|
$ |
3,175 |
|
|
$ |
3,475 |
|
|
$ |
3,675 |
|
|
$ |
3,875 |
|
|
$ |
3,960 |
|
|
$ |
4,185 |
|
|
$ |
4,410 |
|
|
|
|
|
|
|
|
|
|
|
| Cash Distributions (accrued) |
|
$ |
3,010 |
|
|
$ |
3,005 |
|
|
$ |
2,995 |
|
|
$ |
3,380 |
|
|
$ |
3,440 |
|
|
$ |
3,515 |
|
|
$ |
3,770 |
|
|
$ |
3,925 |
|
|
$ |
4,090 |
|
| —per L.P. Unit |
|
$ |
3.40 |
|
|
$ |
3.40 |
|
|
$ |
3.40 |
|
|
$ |
3.64 |
|
|
$ |
3.71 |
|
|
$ |
3.78 |
|
|
$ |
3.89 |
|
|
$ |
4.04 |
|
|
$ |
4.19 |
|
| —Annual growth rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7 |
% |
|
|
9 |
% |
|
|
11 |
% |
|
|
7 |
% |
|
|
9 |
% |
|
|
11 |
% |
|
|
|
|
|
|
|
|
|
|
| Cash Distribution Coverage Ratio |
|
|
0.95x |
|
|
|
1.00x |
|
|
|
1.06x |
|
|
|
1.03x |
|
|
|
1.07x |
|
|
|
1.10x |
|
|
|
1.05x |
|
|
|
1.07x |
|
|
|
1.08x |
|
Notes: 1 A more detailed schedule reconciling this non-GAAP measure is provided in this
presentation. 2 Includes
proportionate share of maintenance capex of equity investments 3 Includes proportionate share of interest expense of equity investments
Williams Partners (NYSE:WPZ)
Historical Stock Chart
From Mar 2024 to Apr 2024
Williams Partners (NYSE:WPZ)
Historical Stock Chart
From Apr 2023 to Apr 2024
