Williams Partners Closes $1.25B Notes Offer - Analyst Blog

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Publicly traded energy pipeline partnership, Williams Partners L.P. ( WPZ ) 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 partnership purposes.

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. ( WMB ).

Williams Partners currently carries a short-term Zacks Rank #3 (Hold). One can look at better-ranked players in the same industry like Magellan Midstream Partners LP ( MMP ) and Boardwalk Pipeline Partners LP ( BWP ). While Magellan Midstream sports a Zacks Rank #1 (Strong Buy), Boardwalk Pipeline holds a Zacks Rank #2 (Buy).


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: WMB , WPZ , MMP , BWP

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