Williams Partners, Williams Cos. announce second quarter profits
BY ROD WALTON World Staff Writer
Wednesday, August 01, 2012
The decline in natural gas liquids margins tamped down second-quarter profits at both Williams Partners LP and Williams Cos. Inc. relative to last year's returns, the Tulsa-based natural firms announced Wednesday.
Both Williams companies reported nine-digit profits for the three months ending June 30, but those returns were down significantly compared with the same time last year. Williams Partners’ net income totaled $193 million, or 29 cents per unit, while Williams Cos., which has controlling interest in the partnership, gained $132 million, or 21 cents per share, for the same period.
Williams hopes to downplay the impact of NGL prices on its earnings by shifting to more of a fee-based model in the partnership segment. The company revised its earnings guidances for 2012 and 2013 to midpoints of $1.15 and $1.38 per share, respectively.
“While we lowered our 2012 and 2013 earnings guidance, we raised our 2014 earnings guidance and reaffirmed our commitment to delivering strong dividend growth,” CEO Alan Armstrong said in a statement.
“We continue to see growth in Williams Partners’ fee-based revenue, particularly in the partnership’s midstream business, where the fee-based revenue was up 19 percent during the second quarter,” he added. “We expect that trend to continue, as Williams Partners’ fee-based business is expected to be more than 80 percent of its total business by 2014.”