Williams Partners L.P
) registered third-quarter 2013 earnings of 52 cents per
limited-partner unit, beating the Zacks Consensus Estimate of 26
cents with ease. The quarterly earnings also improved from the
year-ago level of 38 cents.
Quarterly total revenue decreased 7.6% year over year to $1,586.0
million but surpassed the Zacks Consensus Estimate of $1,460.0
Notably, Williams Partners' distributable cash flow (DCF)
attributable to partnership operations in the reported quarter
was $378 million against $316 million in the year-ago quarter.
Recently, the partnership increased its quarterly cash
distribution by 8.7% year over year to 87.75 cents per unit.
Consolidated adjusted segment profit was $388.0 million, down
12.6% from the year-ago level of $444.0 million.
: The segment reported loss of $1 million compared with loss of
$4 million in third-quarter 2012. The improvement can be
attributed to an increase in fee revenues in the Susquehanna
Supply Hub and Ohio Valley Midstream businesses as well as higher
Laurel Mountain Midstream equity earnings.
: The segment reported profits of $137 million compared with $124
million in third-quarter 2012. The upside was primarily backed by
higher transportation fee revenues and lower project development
: Segmental profit was $207 million compared with $223 million a
year ago. Lower natural gas liquids (NGL) margins, including the
effects of system-wide ethane rejection and higher natural gas
prices, were responsible for the decline.
NGL & Petchem Services
: The segment reported profits of $62 million compared with $86
million in third-quarter 2012. The downside came from lower
olefin product margins, primarily due to the Geismar plant
Williams Partners lowered its outlook for earnings and
distributable cash flow in 2013 and 2014 apprehending lower NGL
The partnership expects DCF of $1,720 million for 2013 and $2,350
million for 2014.
Total adjusted segment profits are expected at $1,730 million for
2013 and $2,345 million for 2014.
Capital expenditures are estimated at $3,605 million for 2013 and
$3,120 million for 2014.
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 general
partner of the partnership is owned and managed by
Williams Companies Inc.
Williams Partners retains a Zacks Rank #3 (Hold). However, there
are other stocks in the oil and gas sector -
TransAtlantic Petroleum Ltd
Northern Oil and Gas, Inc.
) - which hold a Zacks Rank #1 (Strong Buy) and are expected to
NORTHRN OIL&GAS (NOG): Free Stock Analysis
TRANSATL PETROL (TAT): Free Stock Analysis
WILLIAMS COS (WMB): Free Stock Analysis
WILLIAMS PTNRS (WPZ): Free Stock Analysis
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