Publicly traded energy pipeline partnership,
Williams Partners L.P.
) announced that it has completed a public offering of $1 billion
of its 4.3% senior notes due 2024 at a price of 99.791% of par
and $500 million of its 5.4% senior notes due 2044 at a price of
99.676% 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 Feb 19, the partnership reported fourth quarter earnings of 12
cents per limited-partner unit, which lagged the Zacks Consensus
Estimate of 40 cents. Earnings also deteriorated 71.4% from the
year-ago profit level of 42 cents. The downcast figures were due
to loss of production from the closed Geismar olefins plant which
will resume operation not before mid 2014. Lower natural gas
liquids (NGLs) margins and higher operating costs from the
Northeast G&P segment also added to the woes.
Quarterly total revenue also decreased 11.1% year over year to
$1,616.0 million but surpassed the Zacks Consensus Estimate of
$1,483.0 million. Notably, Williams Partners' distributable cash
flow (DCF) attributable to partnership operations in the fourth
quarter was $509 million against $405 million in the year-ago
quarter. Recently, the partnership increased its quarterly cash
distribution by 7.9% year over year to 89.25 cents per unit.
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). Better-ranked stocks in the same sector include
Willbros Group Inc.
Patterson-UTI Energy Inc.
). Both these stocks hold a Zacks Rank #1 (Strong Buy).
PATTERSON-UTI (PTEN): Free Stock Analysis
WILLBROS GROUP (WG): Free Stock Analysis
WILLIAMS COS (WMB): Free Stock Analysis
WILLIAMS PTNRS (WPZ): Free Stock Analysis
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