Williams Partners Cuts Planned Investments by $1.2 Billion
January 25 2016 - 9:34AM
Dow Jones News
By Anne Steele
Natural-gas pipeline company Williams Cos. on Monday said its
Williams Partners affiliate cut its planned investment expenditures
by about one third from previous estimates to $2.1 billion amid
tough energy market conditions.
Shares of Williams Cos., which have erased more than half their
value over the past 12 months, slipped another 3.6% premarket to
$19.04. Shares of Williams Partners were unchanged at $21.45.
The company said the move is a result of project deferrals,
delays and cancellations brought on by the current commodity price
environment and sharply higher capital costs.
Including consolidated joint ventures, the company said it cut
its planned growth capital by $1.2 billion to $2.1 billion.
Williams Chief Executive Alan Armstrong said the company
continues to focus on demand-driven projects serving long-term
distribution needs.
"Our revised capital plan addresses the realities of our current
market environment while continuing to invest in the growing demand
side of our business," he said.
Williams Partners said it plans to eliminate 2016 equity needs
with planned asset monetizations in excess of $1 billion during the
first half of 2016, and doesn't plan to issue public equity or
public debt in 2016.
The company said volumes grew across natural gas gathering and
processing operations in the northeast and remained stable in the
west during the fourth quarter. It plans to report full results
Feb. 17.
Earlier this month, Williams Cos. said it remained committed to
completing its merger agreement with Energy Transfer Equity LP,
amid investors' concerns that the deal would fall apart. Williams
last year resisted Energy Transfer's initial buyout overture but
eventually accepted a lesser price amid slumping energy stocks.
Energy companies had a rough ride in 2015, with natural gas and oil
prices plummeting.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
January 25, 2016 09:19 ET (14:19 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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