Williams Partners L.P.
) 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.
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Quarterly total revenue decreased 5% year over year to $1,727.0
million but was above the Zacks Consensus Estimate of $1,610.0
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.
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
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
Williams Partners lowered its outlook for earnings and
distributable cash flow in 2013 and 2014 apprehending lower NGL
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.
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, which is equivalent to
a short-term Hold rating. However, there are other stocks in the
oil and gas sector -
Gulfmark Offshore, Inc.
) - which hold a Zacks Rank #1 (Strong Buy) and are expected to