Williams Partners Reports Third-Quarter 2013 Financial Results, Updates Guidance

Williams Partners L.P. (NYSE: WPZ):

Summary Financial Information 3Q YTD

Amounts in millions, except per-unit and coverage ratio amounts.

All income amounts attributable to Williams Partners L.P.
  2013   2012     2013   2012  
Net income $ 279 $ 290   $ 856 $ 941  
Net income per common L.P. unit $ 0.52 $ 0.38   $ 1.34 $ 1.47  
Distributable cash flow (DCF) (1) $ 378 $ 374 $ 1,262 $ 1,256
Less: Pre-partnership DCF (2)   0   (58 )   0   (172 )
DCF attributable to partnership operations $ 378 $ 316   $ 1,262 $ 1,084  
Cash distribution coverage ratio (1)(3) 0.86x .80x .90x .96x

(1) Distributable Cash Flow and Cash Distribution Coverage Ratio are non-GAAP measures. Reconciliations to the most relevant measures included in GAAP are attached to this news release.

(2) This amount represents DCF from the Gulf Olefins assets during 2012, since these periods were prior to the receipt of cash flows from the assets.

(3) Includes benefit of IDR waivers.

Williams Partners L.P. (NYSE: WPZ) today announced unaudited third-quarter 2013 net income attributable to Williams Partners L.P. of $279 million, or $0.52 per common limited-partner unit, compared with net income of $290 million, or $0.38 per common limited-partner unit for third-quarter 2012. Earnings per common limited-partner unit were favorably impacted by a significant increase in waived incentive distribution rights, which resulted in a shift of net income from the general partner to the limited partners. Prior-period results throughout this release have been recast to include the results of the Geismar olefins production facility acquired from Williams in November 2012 and to reflect the revised segment reporting resulting from the organizational restructuring effective Jan. 1, 2013.

The $11 million decrease in third-quarter net income was primarily due to $76 million lower olefin margins from lost production at the Geismar olefins plant as well as $49 million (or 29%) lower natural gas liquids (NGL) margins driven by continued ethane rejection. The decrease was offset by a $61 million increase in transportation and gathering and processing fee revenues as well as $19 million in lower costs in the quarter. Third-quarter 2013 also benefited from $50 million of income recognized associated with initial insurance recoveries related to the Geismar incident.

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