Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Williams Partners L.P. (WPZ - Snapshot Report) registered first-quarter 2013 earnings of 50 cents per limited partner unit, in line with the Zacks Consensus Estimate. Earnings deteriorated 41.2% from the year-ago profit level of 85 cents.

Lower natural gas liquid (NGL) margins in the partnership’s business during the first quarter of 2013 and related ethane rejection led to the year-over-year deterioration.

Total revenue in the reported quarter decreased 10.8% year over year to $1,756.0 million and failed to meet the Zacks Consensus Estimate of $1,989.0 million.

Notably, Williams Partners' distributable cash flow (DCF) attributable to partnership operations in the reported quarter was $497 million as against $475 million recorded in the year-ago period. Recently, the partnership increased its quarterly cash distribution by 9% year over year to 84.75 cents per unit.

Segment Performance

Consolidated adjusted segment profit was $450.0 million, down approximately 18.5% from the year-ago level of $552.0 million.

Northeast G&P: The segment reported a loss of $9.0 million versus profits of $4.0 million in the year-ago quarter. The downside came primarily from higher costs for the Ohio Valley Midstream system.

Atlantic-Gulf: The segment reported profits of $159.0 million, down 3.6% year over year. The downside was due to lower NGL margins in the Gulf processing facilities and lower equity earnings from the Discovery investment.

West: Segmental profit cascaded to $186 million from $311 million in the year-ago quarter. This was due to lower NGL prices and fee-based revenue which declined due to severe winter weather.

NGL & Petchem Services: The segment reported profits of $120 million, a rise of 69% year over year. The upside came from higher olefin product margins, primarily ethylene.

Guidance

Williams Partners lowered its outlook for adjusted segment profit and distributable cash flow (DCF) for 2013 and 2014. The results would be adversely affected by lower NGL processing margins and lower ethane transportation volumes.

Williams Partners expects DCF of $1,675 million for 2013 and $2,350 million for 2014.

Total adjusted segment profits are expected to be $1,675 million for 2013 and $2,390 million for 2014.

The capital expenditures are estimated at $3,745 million for 2013 and $2,465 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 - Analyst Report).

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 – InterOil Corporation (IOC - Snapshot Report), and EPL Oil & Gas, Inc. (EPL - Snapshot Report) – which hold a Zacks Rank #1 (Strong Buy) and are expected to perform better.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ANI PHARMACE ANIP 25.07 +15.96%
BITAUTO HOLD BITA 35.21 +14.42%
E HOUSECHINA EJ 10.97 +9.05%
CANADIAN SOL CSIQ 26.96 +7.10%
KNIGHTSBRIDG VLCCF 12.50 +5.75%