- 2Q 2015 Adjusted EBITDA is $1.01
Billion, Up 41% on Access Midstream Merger, Major Projects Ramping
Up
- Distributable Cash Flow (DCF) of $701
Million, Up 39% vs. 2Q 2014
- Fee-Based Revenues Up $537 Million or
72% on Access Midstream Merger, Major Projects Ramping Up
- Excluding Access Midstream Merger,
Williams Partners 2Q 2015 Fee-Based Revenue Up $130 Million, or
17%
Williams Partners L.P. (NYSE: WPZ) today reported second quarter
2015 adjusted EBITDA of $1.01 billion, a $291 million, or 41
percent, increase from second quarter 2014.
The increase in adjusted EBITDA for second quarter 2015 is due
to increases of $345 million from Access Midstream as a result of
the merger, $119 million from the Atlantic-Gulf segment and $16
million from the Northeast G&P segment. Partially offsetting
these increases were a $135 million decrease at NGL & Petchem
Services due primarily to the absence of $138 million of assumed
business interruption proceeds related to the Geismar plant and a
$55 million decrease in the West due to lower NGL margins.
Summary Financial Information 2Q
YTD
Amounts in millions, except coverage ratio
amounts.All income amounts attributable to Williams Partners
L.P.
2015 2014 2015 2014 (Unaudited)
Williams Partners Adjusted EBITDA (1) $ 1,008 $ 717 $ 1,925
$ 1,485 DCF attributable to partnership operations (1) $ 701 $ 504
$ 1,347 $ 1,086 Cash distribution coverage ratio (1) .97x .87x .93x
.95x Net income $ 300 $ 221 $ 389 $ 573 (1) Adjusted EBITDA,
distributable cash flow (DCF) and cash distribution coverage ratio
are non-GAAP measures. Financial information for 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.
The increase in adjusted EBITDA in second quarter 2015 as
described above by segment was driven by $537 million, or 72
percent, higher fee-based revenues and assumed minimum volume
commitments compared with second quarter 2014. Following the
merger, the Access Midstream segment contributed $391 million and
Atlantic-Gulf and Northeast G&P improved $104 million and $33
million, respectively. Excluding the Access Midstream merger,
Williams Partners second-quarter 2015 fee-based revenue was up $130
million, or 17 percent. Geismar contributed approximately $50
million of olefins margins in second quarter 2015. Additionally,
the proportional EBITDA from non-consolidated joint ventures
increased $121 million for second quarter 2015 versus second
quarter 2014, including $92 million from the addition of Access
Midstream’s joint ventures and $33 million in Atlantic-Gulf as
Discovery’s Keathley Canyon Connector project ramped up.
Partially offsetting these increases were $210 million higher
operating and general and administrative expenses versus second
quarter 2014 primarily as a result of the Access Midstream merger,
the absence of $138 million of business interruption insurance
proceeds related to the Geismar plant and $56 million in lower NGL
margins due primarily to NGL prices that are at a 10-year low.
Year-to-date 2015, Williams Partners reported adjusted EBITDA of
$1.93 billion, a $440 million, or 30 percent, increase from the
same period last year. The year-to-date increase in adjusted EBITDA
was driven primarily by the same factors that drove the quarterly
results for adjusted EBITDA.
Williams Partners reported unaudited second quarter 2015 net
income attributable to controlling interests of $300 million
compared with $221 million in second quarter 2014. The increase in
second quarter net income was due to new fee revenues from growth
projects, including Gulfstar One and Transco expansion projects,
increased insurance recoveries associated with the Geismar incident
and increased olefins margins from the Geismar plant’s return to
service. These increases were partially offset by increased
operating expenses and depreciation, lower NGL margins driven by
lower prices and higher interest expense resulting from new debt
issuances.
Year-to-date 2015 net income was $389 million, compared with
$573 million year-to-date 2014. The year-to-date decrease in net
income was driven primarily by the same factors described above,
except that year-to-date Geismar insurance recoveries were lower in
the current year.
Distributable Cash Flow & Distributions
For second quarter 2015, Williams Partners generated $701
million in distributable cash flow (DCF) attributable to
partnership operations, compared with $504 million in DCF
attributable to partnership operations in second quarter 2014. The
$197 million increase in DCF for the quarter was driven by the $291
million net increase in adjusted EBITDA, partially offset by higher
interest expense.
Year-to-date 2015, Williams Partners generated $1.35 billion in
DCF attributable to partnership operations, compared with $1.09
billion in DCF attributable to partnership operations for the same
period last year. The $261 million increase in DCF for the
six-month period ended June 30 was driven by the $440 million net
increase in adjusted EBITDA, partially offset by higher interest
expense.
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 prior
distribution guidance.
CEO Perspective
Alan Armstrong, chief executive officer of Williams Partners’
general partner, made the following comments:
“Second quarter results further demonstrate the benefits from
our clearly defined strategy of capitalizing on the significant
natural gas market growth by connecting the best supplies to the
best markets. This strategy has and will continue to deliver
significant growth in our fee-based revenues.
“The large-scale infrastructure projects we recently placed into
service – including Transco expansions and Gulf of Mexico
facilities – generated significant fee-based revenues in the second
quarter and we expect those numbers to continue growing throughout
2015.
“As well, the Geismar plant ramped up in the second quarter and
is now online and consistently operating at or near its full
production capacity. We look forward to the significant
contributions the plant will make in the second half of the
year.”
Business Segment Performance
Williams Partners Adjusted EBITDA
Amounts in millions
2Q 2015
2Q 2014 YTD 2015 YTD
2014 Access Midstream (1) $ 345 - $ 659 - Atlantic-Gulf 389 270
724 536 NGL & Petchem Services (2) 33 168 40 404 Northeast
G&P 92 76 192 130 West 150 205 312 417 Other (1 ) (2 ) (2 ) (2
) Total
$ 1,008 $
717 $ 1,925
$ 1,485 Schedules reconciling
adjusted EBITDA to modified EBITDA and net income are attached to
this news release. (1) First quarter and second quarter 2014
represents pre-merger Williams Partners and excludes Access
Midstream. (2) First quarter and second quarter 2014 include $173
million and $138 million, respectively, in assumed business
interruption insurance proceeds related to the 2013 incident at the
Geismar plant.
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 62 percent interest in Utica East
Ohio Midstream LLC, 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 $345 million for
second quarter 2015. Williams Partners’ results for second quarter
of 2014 are on a pre-merger basis and exclude Access Midstream. For
second quarter 2014, Access Midstream had previously reported $275
million of adjusted EBITDA. The increase in adjusted EBITDA between
years was driven by higher fee-based volumes in the Utica and
Haynesville areas as well as the higher ownership in the Utica East
Ohio Midstream joint venture.
Year-to-date 2015, Access Midstream reported adjusted EBITDA of
$659 million, compared with $525 million previously reported for
the same period last year. The year-to-date results were driven
primarily by the same factors that drove the quarterly results.
Atlantic-Gulf
Atlantic-Gulf includes the Transco interstate gas pipeline and a
41-percent interest in the Constitution interstate gas pipeline
development project, which Williams Partners consolidates. 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.
Atlantic-Gulf reported adjusted EBITDA of $389 million for
second quarter 2015, compared with $270 million for second quarter
2014. The increase was due primarily to $104 million higher
fee-based revenues from both Gulfstar One and Transco expansion
projects, as well as $33 million higher proportional adjusted
EBITDA primarily from Discovery driven by the Keathley Canyon
Connector, partially offset by lower NGL margins.
Year-to-date 2015, Atlantic-Gulf reported adjusted EBITDA of
$724 million, compared with $536 million for the same period last
year. The year-to-date results were driven primarily by the same
factors that drove the quarterly results.
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 $33
million for second quarter 2015, compared with $168 million for
second quarter 2014. Geismar contributed approximately $50 million
of olefins margins for the second quarter of 2015. Second quarter
2014 adjusted EBITDA included $138 million of assumed business
interruption insurance proceeds. Additionally, second quarter 2015
adjusted EBITDA included lower commodity-related margins at the
Canadian operations and higher operating expenses related to the
Geismar plant ramp-up.
Year-to-date 2015, NGL & Petchem Services reported adjusted
EBITDA of $40 million, compared with $404 million for the same
period last year. Year-to-date 2014 results include $311 million in
assumed business interruption insurance proceeds related to the
2013 incident at the Geismar plant.
The Geismar plant ramped up in the second quarter of 2015 and
the expanded plant is now online.
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 $92 million for
second quarter 2015, compared with $76 million for second quarter
2014. The improved results are due primarily to a $33 million
increase in fee-based revenues driven primarily by higher fee-based
volumes and incremental new services at Ohio Valley Midstream.
Volumes at Susquehanna Supply Hub were flat versus second quarter
2014 as a result of price-related production curtailments in
2015.
Year-to-date 2015, Northeast G&P reported adjusted EBITDA of
$192 million, compared with $130 million for the same period last
year. The year-to-date results were driven primarily by the same
factors that drove the quarterly results.
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 $150 million for second quarter
2015, compared with $205 million for second quarter 2014. Lower
adjusted EBITDA for the quarter was due primarily to $31 million
lower NGL margins from lower NGL prices.
Year-to-date 2015, West reported adjusted EBITDA of $312
million, compared with $417 million for the same period last year.
Lower adjusted EBITDA for the year-to-date period was due primarily
to nearly $80 million lower product margins and $27 million higher
operating and maintenance expenses driven by the addition of the
Niobrara operations from the Access Midstream merger.
Proposed Acquisition of Williams Partners by Williams
As previously announced on May 13, 2015, Williams and Williams
Partners have signed a definitive agreement under which Williams
will acquire all of the public outstanding common units of Williams
Partners in an all stock-for-unit transaction at a 1.115 ratio of
Williams common shares per unit of Williams Partners. Subsequently,
on June 21, 2015, Williams publicly announced that it had received
and rejected an unsolicited proposal for Williams to be acquired in
an all-equity transaction. The unsolicited proposal was contingent
on the termination of the proposed acquisition of Williams Partners
by Williams. Williams’ board of directors has authorized a process
to explore a range of strategic alternatives, which could include,
among other things, a merger, a sale of Williams, or continuing to
pursue Williams’ existing operating and growth plan. Williams has
indicated that it expects any shareholder vote seeking approval of
the proposed acquisition of Williams Partners by Williams to occur
after its ongoing review of strategic alternatives is
completed.
Guidance
Williams Partners’ guidance has been discontinued as a result of
the merger agreement between Williams and Williams Partners and
Williams’ strategic alternatives process. Williams’ guidance is
provided in the earnings news release issued today by Williams.
Second-Quarter Materials to be Posted Shortly, Live Webcast
Scheduled for Tomorrow
Williams Partners’ second-quarter 2015 financial results will be
posted shortly at www.williams.com. The information will include
the data book and analyst package.
Williams Partners and Williams will jointly host a conference
call and live webcast on Thursday, July 30, at 9:30 a.m. EDT. A
limited number of phone lines will be available at (888) 297-0360.
International callers should dial (719) 457-2603. A link to the
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.
Form 10-Q
The partnership plans to file its second-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
Partners websites.
Definitions of Non-GAAP Financial Measures
This news release may include 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, 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 all of the 2 percent
general-partner interest. www.williams.com
Forward-Looking Statements
The reports, filings, and other public announcements of 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. Forward-looking statements can be
identified 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 our cash
distributions with respect to general partner interests, incentive
distribution rights, and limited partner interests;
- The status, expected timing, and
expected outcome of the proposed acquisition by The Williams
Companies, Inc. (Williams) of our publicly held outstanding common
units in exchange for shares of Williams’ common stock (Public Unit
Exchange);
- The status, expected timing, and
expected outcome of the unsolicited proposal for Williams to be
acquired in an all-equity transaction (Unsolicited Proposal) and
the Williams Board of Directors’ exploration of strategic
alternatives;
- Our and Williams’ future credit
ratings;
- Amounts and nature of future capital
expenditures;
- Expansion and growth of our business
and operations;
- Financial condition and liquidity;
- Business strategy;
- Cash flow from operations or results of
operations;
- Seasonality of certain business
components;
- Natural gas, natural gas liquids, and
olefins prices, supply, and demand;
- 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
news release. 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:
- Satisfaction of the conditions to the
completion of the Public Unit Exchange, including receipt of the
approval of Williams’ stockholders;
- The results of Williams Board of
Directors’ ongoing review of strategic alternatives;
- Whether we have sufficient cash from
operations to enable us to pay current and expected levels of cash
distributions, if any, following the establishment of cash reserves
and payment of fees and expenses, including payments to our general
partner;
- 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;
- The 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;
- Our allocated costs for defined benefit
pension plans and other postretirement benefit plans sponsored by
our 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 our
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;
- 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.
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 our annual report 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 office or from our website
at www.williams.com.
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 2nd Qtr Year
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 $ 332 $ 444
Provision (benefit) for income taxes 8 5 10 6 29 3 — 3 Interest
expense 106 126 154 176 562 192 203 395 Equity (earnings) losses
(23 ) (32 ) (85 ) (88 ) (228 ) (51 ) (93 ) (144 ) Other investing
(income) loss — (1 ) — (1 ) (2 ) (1 ) — (1 ) Proportional Modified
EBITDA of equity-method investments 54 62 150 165 431 136 183 319
Depreciation and amortization expenses 208 207 364 372 1,151 419
419 838 Accretion for asset retirement obligations associated with
nonregulated operations 3 6
3 5
17 7
9 16 Modified EBITDA 708 596 843
1,097 3,244 817 1,053 1,870 Adjustments Estimated minimum
volume commitments — — 47 (114 ) (67 ) 55 55 110
Acquisition-related expenses — 2 13 1 16 — — — Merger and
transition related expenses — — 11 30 41 32 14 46 Share of
impairment at equity-method investment — — — — — 8 1 9 Geismar
Incident adjustment for insurance and timing 54 96 — (71 ) 79 —
(126 ) (126 ) Loss related to Geismar Incident — — 5 5 10 1 1 2
Impairment of certain assets — 17 — 35 52 3 24 27 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 — 1 Loss on sale of equipment
— — — 7 7 — — — Gain on extinguishment of debt —
— —
— — —
(14 ) (14 ) Total
EBITDA adjustments 60 121
64 (248 )
(3 ) 100 (45 )
55 Adjusted EBITDA $ 768
$ 717 $ 907 $ 849
$ 3,241 917 1,008 1,925
Maintenance capital expenditures (1) (54 ) (80 ) (134 ) Interest
expense (cash portion) (2) (204 ) (207 ) (411 ) Cash taxes (1 ) —
(1 ) Income attributable to noncontrolling interests (23 ) (32 )
(55 ) WPZ restricted stock unit non-cash compensation 7 6 13
Plymouth incident adjustment 4 6
10 Distributable cash
flow attributable to Partnership Operations 646
701 1,347
Total cash distributed $ 725 $ 723 $ 1,448
Coverage ratios: Distributable cash flow attributable to
partnership operations divided by Total cash distributed
0.89 0.97
0.93 Net income divided by Total cash distributed
0.15 0.46
0.31 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 2nd
Qtr Year
Modified EBITDA: Access Midstream $ — $
(2 ) $ 254 $ 390 $ 642 $ 228 $ 273 $ 501 Northeast G&P 48 59 80
208 395 90 70 160 Atlantic-Gulf 266 270 271 258 1,065 335 389 724
West 212 199 224 188 823 161 150 311 NGL & Petchem Services 182
72 17 53 324 6 158 164 Other — (2 )
(3 ) —
(5 ) (3 ) 13
10
Total Modified EBITDA
$ 708 $ 596
$ 843 $
1,097 $ 3,244
$ 817 $ 1,053
$ 1,870
Adjustments:
Access
Midstream
Acquisition-related expenses $ — $ 2 $ 13 $ 1 $ 16
$
—
$
—
$
— Merger and transition costs — — 8 29 37 30 14 44 Loss on sale of
equipment — — — 7 7 — — — Impairment of certain assets — — — 12 12
1 3 4 Estimated minimum volume commitments —
— 47
(114 ) (67 ) 55
55 110 Total Access
Midstream adjustments — 2 68 (65 ) 5 86 72 158
Northeast
G&P
Share of impairment at equity-method investment — — — — — 8 1 9
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 assets — 17
— 13
30 2
21 23 Total Northeast G&P
adjustments 6 17 (12 ) (130 ) (119 ) 10 22 32
Atlantic-Gulf
Impairment of certain equipment — —
— 10
10 —
— — Total Atlantic-Gulf
adjustments — — — 10 10 — — —
West
Loss related to Opal incident — 6
— 2
8 1
— 1 Total West adjustments — 6 —
2 8 1 — 1
NGL & Petchem
Services
Loss related to Geismar Incident — — 5 5 10 1 1 2 Geismar Incident
adjustment for insurance and timing 54
96 — (71 )
79 —
(126 ) (126 ) Total NGL & Petchem Services
adjustments 54 96 5 (66 ) 89 1 (125 ) (124 )
Other
WPZ conflicts committee costs associated with merger — — 3 1 4 — —
— Other merger and transition costs — — — — — 2 — 2 Gain on
extinguishment of debt — —
— —
— — (14 )
(14 ) Total Other adjustments — — 3 1 4 2 (14
) (12 )
Total Adjustments $ 60
$ 121 $
64 $ (248 )
$ (3 ) $ 100
$ (45 ) $
55 Adjusted EBITDA: Access Midstream $
— $ — $ 322 $ 325 $ 647 $ 314 $ 345 $ 659 Northeast G&P 54 76
68 78 276 100 92 192 Atlantic-Gulf 266 270 271 268 1,075 335 389
724 West 212 205 224 190 831 162 150 312 NGL & Petchem Services
236 168 22 (13 ) 413 7 33 40 Other — (2
) — 1
(1 ) (1 ) (1 )
(2 )
Total Adjusted EBITDA $
768 $ 717
$ 907 $ 849
$ 3,241 $ 917
$ 1,008
$ 1,925
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150729006658/en/
Williams Partners L.P.Media Contact:Tom Droege,
918-573-4034orInvestor Contacts:John Porter,
918-573-0797orBrett Krieg, 918-573-4614
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