- Net Income is $12.5 million, $0.38 Per Limited-Partner Unit for
3Q - Distributable Cash Flow Up 8% for 3Q TULSA, Okla., Oct. 29
/PRNewswire-FirstCall/ -- Williams Pipeline Partners L.P.
(NYSE:WMZ) today announced unaudited third-quarter 2009 net income
of $12.5 million, compared with $13.9 million for third-quarter
2008. Net income per limited-partner unit for third-quarter 2009
was $0.38, compared with $0.42, as revised, for third-quarter 2008.
Higher operating expenses led to the Northwest Pipeline GP's
slightly lower third-quarter operating results. Those results are a
key component of the partnership's earnings from its 35-percent
equity interest in Northwest Pipeline. Year-to-date through Sept.
30, Williams Pipeline Partners' net income was $37.7 million,
compared with $38.6 million for the same period in 2008. Net income
per limited-partner unit for the year-to-date period was $1.14,
compared with $1.05, as revised, for the same period in 2008. The
per-unit amount for year-to-date 2008 is based on prorated net
income for the period from the partnership's initial public
offering on Jan. 24, 2008, through Sept. 30, 2008. The 2008
year-to-date net income is based on a full nine-month period.
Higher operating and interest expense, partially offset by higher
firm transportation revenue under long-term contracts and higher
storage revenues, were drivers of Northwest Pipeline GP's slightly
lower results in the year-to-date period. Third-quarter and
year-to-date 2008 net income per limited-partner unit have been
revised pursuant to the adoption of an accounting rule change in
2009, which changed the method the partnership previously used to
allocate undistributed earnings between the limited partners and
the general partner. Distributable cash flow in third-quarter 2009
for Williams Pipeline Partners' limited-partner unitholders was
$11.4 million, or $0.34 per weighted average limited-partner unit.
The third-quarter 2008 amounts were $10.6 million for total
distributable cash flow, or $0.31 per weighted average
limited-partner unit. A higher cash distribution from Northwest
Pipeline drove the increase in distributable cash flow for the
third quarter. Year-to-date through Sept. 30, Williams Pipeline
Partners' distributable cash flow for limited-partner unitholders
was $34.0 million, or $1.01 per weighted average limited-partner
unit. For the first nine months of 2008, these amounts were $34.2
million, or $1.02 per weighted average limited-partner unit. The
year-to-date 2008 amounts were for the partial first-quarter 2008.
Also, the year-to-date 2008 amounts benefited from an additional
cash distribution made in the first quarter to the partnership from
Northwest Pipeline. Subsequent to the close of the third quarter,
Williams Pipeline Partners announced it had raised its regular
quarterly cash distribution to unitholders to $0.335 per unit. The
new amount is a 1.5-percent increase over the second-quarter 2009
distribution of $0.33 per unit and a 6.3-percent increase over the
partnership's third-quarter 2008 distribution of $0.315 per unit.
Liquidity and Debt Maturities As of Sept. 30, 2009, Williams
Pipeline Partners had $7.9 million of cash and cash equivalents and
no outstanding debt. The partnership will make its third-quarter
distribution to unitholders on Nov. 13. Northwest Pipeline on Sept.
30 had approximately $92.1 million of available cash through demand
notes with Williams (NYSE:WMB) and $381 million of available
capacity under Williams' credit facility. Northwest Pipeline has no
significant debt maturities until 2016. Distributable Cash Flow
Definition Distributable cash flow per weighted average
limited-partner unit is a key measure of the partnership's
financial performance and available cash flows to unitholders. This
press release includes certain financial measures, Distributable
Cash Flow and Distributable Cash Flow per Limited-Partner Unit that
are non-GAAP financial measures as defined under the rules of the
Securities and Exchange Commission. GAAP refers to generally
accepted accounting principles. For Williams Pipeline Partners, we
define Distributable Cash Flow as net income less its equity
earnings in Northwest Pipeline, plus reimbursements from Williams
under an omnibus agreement, plus cash distributed by Northwest
Pipeline attributable to Northwest Pipeline's operations through
the current reporting period. For Williams Pipeline Partners, we
define Distributable Cash Flow per Limited-Partner Unit as
Distributable Cash Flow, as defined in the preceding paragraph,
allocated among the general partner and the limited partners in
accordance with the cash-distribution provisions of our partnership
agreement resulting in distributable cash flow attributable to the
general partner and distributable cash flow attributable to limited
partners, respectively. The resulting Distributable Cash Flow
attributable to limited partners is then divided by the weighted
average limited-partner units outstanding to arrive at
Distributable Cash Flow per Limited-Partner Unit. This press
release is accompanied by a reconciliation of these non-GAAP
financial measures to their nearest GAAP financial measures.
Today's Analyst Call Management will discuss Williams Pipeline
Partners' third-quarter 2009 results during a live webcast
beginning at 12 p.m. EDT today. Participants are encouraged to
access the webcast and slides for viewing, downloading and printing
at http://www.williamspipelinepartners.com/. A limited number of
phone lines also will be available at (800) 481-9591. International
callers should dial (719) 457-2650. Replays of the third-quarter
webcast, in both streaming and downloadable podcast formats, will
be available for two weeks at
http://www.williamspipelinepartners.com/ following the event. Form
10-Q Williams Pipeline Partners plans to file its Form 10-Q with
the SEC today. The document will be available on both the SEC and
Williams Pipeline Partners web sites. About Williams Pipeline
Partners L.P. (NYSE:WMZ) Williams Pipeline Partners is a publicly
traded master limited partnership that owns and operates natural
gas transportation and storage assets. The general partner of
Williams Pipeline Partners is Williams Pipeline GP LLC, which is a
wholly owned subsidiary of Williams (NYSE:WMB). For more
information, please visit http://www.williamspipelinepartners.com/.
Go to http://www.b2i.us/irpass.asp?BzID=1589&to=ea&s=0 to
join our e-mail list. Contact: Jeff Pounds Williams (media
relations) (918) 573-3332 Richard George Williams (investor
relations) (918) 573-3679 Williams Pipeline Partners L.P. is a
limited partnership formed by The Williams Companies, Inc.
(Williams). Our reports, filings, and other public announcements
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 the Private
Securities Litigation Reform Act of 1995. You typically can
identify forward-looking statements by the use of forward-looking
words, such as "anticipates," believes," "could," "may," "should,"
"continues," "estimates," "expects," "forecasts," "intends,"
"might," "objectives," "planned," "potential," "projects,"
"scheduled," "will," and other similar expressions. These
forward-looking statements are based on our present intentions and
our assumptions about future events and are subject to risks,
uncertainties, and other factors. In addition to any assumptions,
risks, uncertainties or other factors referred to specifically in
connection with such statements, other factors not specifically
referenced could cause our actual results to differ materially from
the results expressed or implied in any forward-looking statements.
Those factors include, among others: -- whether we have sufficient
cash from operations to enable us to maintain current levels of
cash distributions or to pay the minimum quarterly distribution
following establishment of cash reserves and payment of fees and
expenses, including payments to our general partner; --
availability of supplies (including the uncertainties inherent in
assessing and estimating future natural gas reserves), market
demand, volatility of prices, and the availability and cost of
capital; -- inflation, interest rates and general economic
conditions (including the current economic slowdown and the
disruption of global credit markets and the impact of these events
on Northwest's customers and suppliers); -- the strength and
financial resources of our and Northwest's competitors; --
development of alternative energy sources; -- the impact of
operational and development hazards; -- costs of, changes in, or
the results of laws, government regulations (including proposed
climate change legislation), environmental liabilities, litigation
and rate proceedings; -- Northwest's costs and funding obligations
for defined benefit pension plans and other postretirement benefit
plans; -- changes in maintenance and construction costs; -- changes
in the current geopolitical situation; -- Northwest's exposure to
the credit risk of its customers; -- risks related to strategy and
financing, including restrictions stemming from Northwest's debt
agreements, future changes in Northwest's credit ratings and the
availability and cost of credit; -- risks associated with future
weather conditions; -- acts of terrorism; and -- additional risks
described in our filings with the Securities and Exchange
Commission. 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. In addition to
causing our actual results to differ, the factors listed above may
cause our intentions to change. Such changes in our intentions may
also cause our results to differ. We disclaim any obligation to and
do not intend to publicly update or revise any forward-looking
statements or changes to our intentions, whether as a result of new
information, future events or otherwise. Limited partner interests
are inherently different from the capital stock of a corporation,
although many of the business risks to which we are subject are
similar to those that would be faced by a corporation engaged in a
similar business. Investors are urged to closely consider the
disclosures and risk factors in our annual report on Form 10-K
filed with the Securities and Exchange Commission on February 27,
2009, and our quarterly reports on Form 10-Q available from our
offices or from our website at
http://www.williamspipelinepartners.com/. Reconciliation of
non-GAAP Measures (UNAUDITED) Williams Pipeline Partners L.P.
Distributable Cash Flow per LP Unit Reconciliation 2008 ----
Amounts in thousands, except per- unit amounts 1st Qtr 2nd Qtr 3rd
Qtr Y-T-D ------- ------- ------- ----- Net Income 12,855 11,867
13,863 38,585 Equity in earnings - Northwest (13,355) (12,490)
(14,433) (40,278) Reimbursements from Williams from ominbus
agreement 371 497 503 1,371 --- --- --- ----- Distributable cash
flow excluding equity investments (129) (126) (67) (322) Plus:
Northwest's cash distributions to WMZ 13,943 10,850 10,850 35,643
------ ------ ------ ------ Distributable cash flow attributable to
partnership 13,814 10,724 10,783 35,321 Distributable cash flow
attributable to partnership allocated to GP 736 214 216 1,166 ---
--- --- ----- Distributable cash flow attributable to partnership
allocated to LP 13,078 10,510 10,567 34,155 Weighted Average number
of LP units outstanding 33,563 33,564 33,564 33,563 Distributable
cash flow attributable to partnership per weighted average limited
partner unit 0.3897 0.3131 0.3148 1.0176 2009 ---- Amounts in
thousands, except per- unit amounts 1st Qtr 2nd Qtr 3rd Qtr Y-T-D
------- ------- ------- ----- Net Income 13,655 11,560 12,480
37,695 Equity in earnings - Northwest (14,318) (12,307) (13,391)
(40,016) Reimbursements from Williams from ominbus agreement 370
374 378 1,122 --- --- --- ----- Distributable cash flow excluding
equity investments (293) (373) (533) (1,199) Plus: Northwest's cash
distributions to WMZ 11,550 12,250 12,250 36,050 ------ ------
------ ------ Distributable cash flow attributable to partnership
11,257 11,877 11,717 34,851 Distributable cash flow attributable to
partnership allocated to GP 225 310 285 820 --- --- --- ---
Distributable cash flow attributable to partnership allocated to LP
11,032 11,567 11,432 34,031 Weighted Average number of LP units
outstanding 33,565 33,565 33,565 33,565 Distributable cash flow
attributable to partnership per weighted average limited partner
unit 0.3287 0.3446 0.3406 1.0139 ` DATASOURCE: Williams Pipeline
Partners L.P. CONTACT: Media Relations, Jeff Pounds,
+1-918-573-3332, or Investor Relations, Richard George,
+1-918-573-3679, both of Williams Web Site:
http://www.williamspipelinepartners.com/
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