Publicly traded energy pipeline partnership,
Williams Partners L.P.
) declared the closure of its $1.25 billion notes offering. The
notes consist of a public offering of $750 million of its 3.9%
senior notes due 2025 at a price of 99.690% of par and $500 million
of its 4.9% senior notes due 2045 at a price of 99.229% of par.
Williams Partners plans to use the net proceeds from the offering
to repay amounts outstanding under the partnership's commercial
paper program, to fund capital expenditures and for general
On Apr 30, the partnership reported first-quarter earnings of 36
cents per limited-partner unit, missing the Zacks Consensus
Estimate of 47 cents. Earnings also deteriorated from the year-ago
profit level of 50 cents. Quarterly total revenue also decreased
6.3% year over year to $1,693.0 million and came in below the Zacks
Consensus Estimate of $1,800.0 million. However, the partnership
reaffirmed its guidance for distribution per limited partner unit
growth of 6% in both 2014 and 2015.
Williams Partners is an energy master limited partnership engaged
in gathering, transportation, treating and processing of natural
gas as well as fractionation and storage of NGLs. The partnership
owns interests in three major interstate natural gas pipelines that
together deliver 14% of the natural gas consumed in the U.S. The
partnership's gathering and processing assets include large-scale
operations in the U.S. Rocky Mountains as well as onshore and
offshore Gulf of Mexico. The general partner of the partnership is
owned and managed by
Williams Companies Inc.
Williams Partners currently carries a short-term Zacks Rank #3
(Hold). One can look at better-ranked players in the same industry
Magellan Midstream Partners LP
Boardwalk Pipeline Partners LP
). While Magellan Midstream sports a Zacks Rank #1 (Strong Buy),
Boardwalk Pipeline holds a Zacks Rank #2 (Buy).
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