WPZ Lags Q2 Earnings Estimates, Up Y/Y - Analyst Blog


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Williams Partners L.P. ( WPZ ) registered second-quarter 2013 earnings of 31 cents per limited-partner unit, lower than the Zacks Consensus Estimate of 39 cents. However, earnings improved from than the year-ago level of 29 cents.

Quarterly total revenue decreased 5% year over year to $1,727.0 million but was above the Zacks Consensus Estimate of $1,610.0 million.

Notably, Williams Partners' distributable cash flow (DCF) attributable to partnership operations in the reported quarter was $387 million against $293 million in the year-ago period. Recently, the partnership increased its quarterly cash distribution by 8.8% year over year to 86.25 cents per unit.

Segment Performance

Consolidated adjusted segment profit was $404.0 million, flat with the year-ago level.

Northeast G&P: The segment reported profit of $12 million compared with loss of $20 million in second-quarter 2012. The improvement can be traced to an increase in fee revenues in the Susquehanna Supply Hub and Ohio Valley Midstream businesses.

Atlantic-Gulf: The segment reported profits of $152 million compared with $127 million in second-quarter 2012. The upside was primarily backed by higher transportation fee revenues and lower project development costs.

West: Segmental profit was $162 million compared with $239 million for second quarter
2012. This was due to due to lower NGL margins, including the effects of system-wide ethane rejection and higher natural gas prices.

NGL & Petchem Services: The segment reported profits of $77 million compared with $45 million for second-quarter 2012. The upside came from higher olefin product margins, primarily ethylene.


Williams Partners lowered its outlook for earnings and distributable cash flow in 2013 and 2014 apprehending lower NGL processing margins.

Williams Partners expects its DCF of $1,640 million for 2013 and $2,270 million for 2014.

Total adjusted segment profits are expected at $1,665 million for 2013 and $2,295 million for 2014.

Capital expenditures are estimated at $3,720 million for 2013 and $2,665 million for 2014.

In Conclusion

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. ( WMB ).

Williams Partners retains a Zacks Rank #3, which is equivalent to a short-term Hold rating. However, there are other stocks in the oil and gas sector - Gulfmark Offshore, Inc. ( GLF ) and Dril-Quip, Inc. ( DRQ ) - which hold a Zacks Rank #1 (Strong Buy) and are expected to perform better.

DRIL-QUIP INC (DRQ): Free Stock Analysis Report

GULFMARK OFFSHR (GLF): Free Stock Analysis Report

WILLIAMS COS (WMB): Free Stock Analysis Report

WILLIAMS PTNRS (WPZ): Free Stock Analysis Report

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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 Nasdaq, Inc.

This article appears in: Investing , Business , Earnings , Stocks
More Headlines for: DRQ , GLF , WMB , WPZ

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