Attached files
| file | filename |
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| 8-K - FORM 8-K - Williams Partners L.P. | c64429e8vk.htm |
Exhibit 99.1
News Release
|
Williams Partners L.P. (NYSE: WPZ) One Williams Center Tulsa, OK 74172 800-600-3782 www.williamslp.com |
 |
DATE: May 4, 2011
MEDIA CONTACT:
|
INVESTOR CONTACTS: | |||||
Jeff Pounds
|
Travis Campbell | Sharna Reingold | David Sullivan | |||
(918) 573-3332
|
(918) 573-2944 | (918) 573-2078 | (918) 573-9360 |
Williams Partners Reports First-Quarter 2011 Financial Results
| • | First-Quarter 2011 Net Income per L.P. Unit is $0.81, Up 33% Over 1Q 2010 | ||
| • | Distributable Cash Flow Attributable to Partnership Ops Up 62%, Coverage Ratio Remains Strong | ||
| • | Higher Expected NGL Margins Drive 7% Adj. Segment Profit Guidance Increase for 2011; Up 5% for 2012 | ||
| • | Quarterly Distribution Increased for Fifth Consecutive Quarter |
| Summary Financial Information | 1Q | |||||||
| Amounts in millions, except per-unit amounts. | 2011 | 2010 | ||||||
| (Unaudited) | ||||||||
Net income |
$ | 307 | $ | 322 | ||||
Net income per common L.P. unit |
$ | 0.81 | $ | 0.61 | ||||
Distributable cash flow (DCF) (1) |
$ | 441 | $ | 431 | ||||
Less: Pre-partnership DCF (2) |
— | (158 | ) | |||||
DCF attributable to partnership operations |
$ | 441 | $ | 273 | ||||
Cash distribution coverage ratio (1) |
1.60 | x | 1.76 | x | ||||
| (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) | For 2010, this amount represents DCF for January 2010 from the assets acquired in February 2010 and DCF for January-March 2010 from the assets acquired in November 2010, since these periods were prior to the receipt of cash flows from the acquired assets. |
TULSA, Okla. — Williams Partners L.P. (NYSE: WPZ) today announced unaudited first-quarter
2011 net income of $307 million, compared with first-quarter 2010 net income of $322 million.
Higher net interest expense of $37 million primarily associated with new debt issuances made in
conjunction with financing assets acquired from Williams (NYSE: WMB) in 2010 significantly reduced
2011 net income
| Williams Partners L.P. (NYSE: WPZ) | First-Quarter 2011 Financial Results — May 4, 2011 | Page 1 of 10 |
compared with the recast 2010 results. The higher interest expense drove the
decline in net income for first-quarter 2011.
Higher fee-based revenue and higher natural gas liquid (NGL) margins in the midstream business and
improvement in the gas pipeline business partially offset the higher interest expense in the first
quarter. There is a more detailed discussion of the midstream and gas pipeline results in the
business segment performance section below.
The results throughout this release have been recast to reflect the fourth-quarter 2010 asset
acquisition from Williams. In the recasting of the partnership’s net income, all of the acquired
assets’ net income occurring prior to the closing date was allocated to Williams, which resulted in
a lower allocation of net income to limited partners for first-quarter 2010.
Net income per common limited-partner unit for first-quarter 2011 was $0.81, compared with $0.61
per unit for first-quarter 2010.
Asset Acquisitions Drive Substantial Increases in Distributable Cash Flow in 2010
For first-quarter 2011, Williams Partners’ distributable cash flow attributable to partnership
operations was $441 million, compared with $273 million for first-quarter 2010.
The substantial increase in DCF attributable to partnership operations is primarily due to the
growth of the partnership via the first-quarter 2010 asset acquisitions.
CEO Perspective
“It’s been just over a year since Williams Partners was transformed into one of the largest energy
MLPs, and we continue to perform well, in terms of generating cash flow and distribution growth,”
said Alan Armstrong, president and chief executive officer of the general partner of Williams
Partners. “Our cash distribution for the first quarter was 9 percent higher than last year and
we’ve increased our earnings guidance for both 2011 and 2012.
“We also continue to bring new growth projects online, in both the gas pipeline and midstream
businesses,”
Armstrong said. “In addition to our growth opportunities in the Marcellus Shale, we’re also
expecting some significant growth projects in the Gulf of Mexico over the next two years.”
| Williams Partners L.P. (NYSE: WPZ) | First-Quarter 2011 Financial Results — May 4, 2011 | Page 2 of 10 |
Higher Expected NGL Margins Drive Earnings Guidance Increase
Williams Partners is raising its adjusted segment profit guidance 7 percent for 2011 and 5 percent
for 2012 based on higher expected per-unit NGL margins and benefits of growth capital. Capital
expenditure guidance is higher for 2011 and 2012, reflecting the previously announced acquisition
of an additional 24.5-percent interest in the Gulfstream interstate gas pipeline system, as well as
other new projects in the Gulf of Mexico.
Williams Partners’ guidance for quarterly cash distributions is unchanged. It continues to expect
to increase distributions to its limited-partner unitholders by approximately 6 to 10 percent
annually. These increases will also drive increases in incentive distributions to Williams, the
partnership’s general partner.
Williams Partners’ updated assumptions for certain energy commodity prices for 2011-12 and the
corresponding guidance for the partnership’s earnings and capital expenditures are displayed in the
following table.
| Williams Partners L.P. (NYSE: WPZ) | First-Quarter 2011 Financial Results — May 4, 2011 | Page 3 of 10 |
| Commodity Price Assumptions and | |||||||||||||||||||||||||
| Average NGL Margins | 2011 | 2012 | |||||||||||||||||||||||
| As of May 4, 2011 | Low | Mid | High | Low | Mid | High | |||||||||||||||||||
Natural Gas ($/MMBtu): |
|||||||||||||||||||||||||
NYMEX |
$ | 3.40 | $ | 4.25 | $ | 5.10 | $ | 4.00 | $ | 5.00 | $ | 6.00 | |||||||||||||
Rockies |
$ | 3.10 | $ | 3.85 | $ | 4.60 | $ | 3.65 | $ | 4.55 | $ | 5.45 | |||||||||||||
San Juan |
$ | 3.20 | $ | 4.00 | $ | 4.80 | $ | 3.70 | $ | 4.65 | $ | 5.60 | |||||||||||||
Oil / NGL: |
|||||||||||||||||||||||||
Crude Oil — WTI ($ per barrel) |
$ | 80 | $ | 95 | $ | 110 | $ | 80 | $ | 95 | $ | 110 | |||||||||||||
Crude to Gas Ratio |
21.6 | x | 22.5 | x | 23.5 | x | 18.3 | x | 19.2 | x | 20.0 | x | |||||||||||||
NGL to Crude Oil Relationship (1) |
52 | % | 52 | % | 52 | % | 51 | % | 53 | % | 54 | % | |||||||||||||
Average NGL Margins ($ per gallon) |
$ | 0.64 | $ | 0.76 | $ | 0.88 | $ | 0.56 | $ | 0.73 | $ | 0.90 | |||||||||||||
Williams Partners Guidance |
|||||||||||||||||||||||||
Amounts are in millions except
coverage ratio. |
|||||||||||||||||||||||||
| Low | Mid | High | Low | Mid | High | ||||||||||||||||||||
DCF attributable to partnership ops. (2) |
$ | 1,270 | $ | 1,470 | $ | 1,670 | $ | 1,460 | $ | 1,710 | $ | 1,960 | |||||||||||||
Total Cash Distribution (3) |
$ | 1,142 | $ | 1,171 | $ | 1,200 | $ | 1,283 | $ | 1,358 | $ | 1,433 | |||||||||||||
Cash Distribution Coverage Ratio (2) |
1.1 | x | 1.3 | x | 1.4 | x | 1.1 | x | 1.3 | x | 1.4 | x | |||||||||||||
Adjusted Segment Profit (2): |
|||||||||||||||||||||||||
Gas Pipeline |
$ | 670 | $ | 690 | $ | 710 | $ | 680 | $ | 700 | $ | 720 | |||||||||||||
Midstream |
1,025 | 1,200 | 1,375 | 1,100 | 1,350 | 1,600 | |||||||||||||||||||
Total Adjusted Segment Profit |
$ | 1,695 | $ | 1,890 | $ | 2,085 | $ | 1,780 | $ | 2,050 | $ | 2,320 | |||||||||||||
Adjusted Segment Profit + DD&A: |
|||||||||||||||||||||||||
Gas Pipeline |
$ | 1,020 | $ | 1,050 | $ | 1,080 | $ | 1,040 | $ | 1,070 | $ | 1,100 | |||||||||||||
Midstream |
1,285 | 1,470 | 1,655 | 1,375 | 1,635 | 1,895 | |||||||||||||||||||
Total Adjusted Segment Profit + DD&A |
$ | 2,305 | $ | 2,520 | $ | 2,735 | $ | 2,415 | $ | 2,705 | $ | 2,995 | |||||||||||||
Capital Expenditures: |
|||||||||||||||||||||||||
Maintenance |
$ | 470 | $ | 493 | $ | 515 | $ | 410 | $ | 445 | $ | 480 | |||||||||||||
Growth |
1,420 | 1,560 | 1,700 | 1,070 | 1,185 | 1,300 | |||||||||||||||||||
Total Capital Expenditures |
$ | 1,890 | $ | 2,053 | $ | 2,215 | $ | 1,480 | $ | 1,630 | $ | 1,780 | |||||||||||||
| (1) | This is calculated as the price of natural gas liquids as a percentage of the price of crude oil on an equal volume basis. | |
| (2) | Distributable Cash Flow, Cash Distribution Coverage Ratio and Adjusted Segment Profit are non-GAAP measures. Reconciliations to the most relevant measures included in GAAP are attached to this news release. | |
| (3) | The cash distributions in guidance reflects an approximate 6% (low), 8% (midpoint), and 10% (high) increase in quarterly limited partner cash distributions annually through 2012. |
Business
Segment Performance
Williams
Partners’ operations are reported through two business segments, Gas
Pipeline and Midstream Gas & Liquids.
| Williams Partners L.P. (NYSE: WPZ) | First-Quarter 2011 Financial Results — May 4, 2011 | Page 4 of 10 |
| Consolidated Segment Profit | 1Q | |||||||
| Amounts in millions | 2011 | 2010 | ||||||
Gas Pipeline |
$ | 175 | $ | 169 | ||||
Midstream Gas & Liquids |
262 | 255 | ||||||
Total Segment Profit |
$ | 437 | $ | 424 | ||||
Adjustments |
— | (5 | ) | |||||
Adjusted Segment Profit* |
$ | 437 | $ | 419 | ||||
| * | A schedule reconciling segment profit to adjusted segment profit is attached to this press release. |
Gas Pipeline
Williams Partners owns interests in three major interstate natural gas pipeline systems — Transco,
Northwest Pipeline and Gulfstream. Transco and Northwest Pipeline have a combined total annual
throughput of approximately 2,800 trillion British Thermal Units of natural gas, which is
approximately 12 percent of the natural gas consumed in the United States. Combined peak-day
delivery capacity is approximately 13 billion cubic feet per day (Bcf/d).
Gas Pipeline reported segment profit of $175 million for first-quarter 2011, compared with $169
million for first-quarter 2010.
The improvement in the Gas Pipeline results for the first quarter was due to higher transportation
revenue, partially offset by higher selling, general and administrative expenses. The quarter also
benefited from $10 million of project feasibility costs previously expensed that were capitalized
in the first quarter as a result of determining that the project was probable of development.
In addition to the above contracts, the gas pipeline business continues to make progress on a
number of expansion projects in 2011. Two expansions on the Transco system — Mobile Bay South II
and 85 North phase II — were placed into service this week adding a combined 598,500 dekatherms
per day of firm transportation capacity to serve markets in the southeastern United States.
The Mobile Bay South II expansion project created an additional 380,000 dekatherms per day of
southbound firm transportation capacity on the Mobile Bay Lateral from Transco’s mainline at
Station 85 near Butler, Ala., to its interconnect with Gulfstream Natural Gas System in Coden,
Ala., at an estimated cost of $35 million.
| Williams Partners L.P. (NYSE: WPZ) | First-Quarter 2011 Financial Results — May 4, 2011 | Page 5 of 10 |
The second phase of the company’s 85 North expansion project, increases Transco’s capacity by an
additional
218,500 dekatherms per day to serve electric power generating facilities in North Carolina. Phase I
of the 85 North expansion was placed into service in July 2010, adding capacity to transport an
additional 90,000 dekatherms of natural gas per day. The total cost including Phase I and Phase II
is estimated to be $227 million.
Midstream Gas & Liquids
Midstream provides natural gas gathering, treating, and processing; deepwater production handling
and oil transportation; and NGL fractionation, storage and transportation services.
The business reported segment profit of $262 million for first-quarter 2011, compared with segment
profit of $255 million for first-quarter 2010.
Higher per-unit NGL margins and fee-based revenues, mostly offset by higher operating expenses,
drove the improvement in the first-quarter 2011 results.
Lower natural gas prices and slightly higher per-unit NGL prices drove the higher NGL margins in
first-quarter 2011. This benefit was partially offset by lower NGL equity volumes in the first
quarter primarily due to the change of a major contract in the Gulf Coast region from keep-whole to
percent-of-liquids processing. The decline in first-quarter 2011 equity volumes compared with
fourth-quarter 2010 was primarily due to the major contract change, as well as severe winter
weather in the Rockies and maintenance outages.
A gathering rate increase in the Piceance Basin associated with the assets acquired from Williams
in November 2010 and new gathering business in the Marcellus Shale drove the higher fee-based
revenues for the first-quarter.
| NGL Margin Trend | 2010 | 2011 | |||||||||||||||||||
| 1Q | 2Q | 3Q | 4Q | 1Q | |||||||||||||||||
NGL margins (millions) |
$ | 193 | $ | 166 | $ | 136 | $ | 200 | $ | 207 | |||||||||||
NGL equity volumes (gallons in millions) |
332 | 302 | 271 | 317 | 289 | ||||||||||||||||
Per-unit NGL margins ($/gallon) |
$ | 0.58 | $ | 0.55 | $ | 0.50 | $ | 0.63 | $ | 0.71 | |||||||||||
The midstream business will continue work on several ongoing expansion projects in 2011.
Williams Partners became operator of Overland Pass Pipeline Company effective April 1, 2011. The
partnership
| Williams Partners L.P. (NYSE: WPZ) | First-Quarter 2011 Financial Results — May 4, 2011 | Page 6 of 10 |
owns a 50-percent interest in Overland Pass, which includes a 760-mile NGL pipeline from Opal,
Wyo., to the Mid-Continent NGL market center in Conway, Kan., along with 150- and 125-mile
extensions into the Piceance and Denver-Julesburg Basins in Colorado, respectively. Work is under
way to determine optimal expansions to serve producers in the Overland Pass corridor.
The partnership also continues to ramp up activities on its expansions in the Marcellus Shale. It
has assumed the operational activities for the gathering business it acquired at the end of 2010,
which includes 75 miles of gathering pipelines and two compressor stations.
Engineering and construction activities continue on the 33-mile Springville gathering pipeline in
northeast Pennsylvania which will connect the gathering system in northeast Pennsylvania to the
Transco pipeline system. The Springville pipeline connection is expected to be completed later in
2011. Other compression and dehydration projects to increase capacity to approximately 500-550
MMcf/d are nearing completion and expected to be in service by the end of the second quarter of
2011. The partnership’s gathering system in northeast Pennsylvania is expected to ultimately
provide 1.25 Bcf/d of gathering capacity.
Williams Partners also continues to work on rapid expansion of the Laurel Mountain Midstream joint
venture in western Pennsylvania. The initial phase of the Shamrock compressor station, which will
likely be the largest central delivery point out of the Laurel Mountain system, was placed into
service in the first quarter. The Shamrock compressor station provides 30 MMcf/d of new capacity
on the Laurel Mountain system, with another 150 MMcf/d expected to be available by the end of 2011.
Williams Partners expects Laurel Mountain to ultimately provide approximately 1.5 Bcf/d of
gathering capacity.
Definitions of Non-GAAP Financial Measures
This press release includes certain financial measures — Distributable Cash Flow, Cash
Distribution Coverage Ratio, and Adjusted Segment Profit — that are non-GAAP financial measures as
defined under the rules of the Securities and Exchange Commission.
For Williams Partners L.P., Adjusted Segment Profit excludes items of income or loss that we
characterize as unrepresentative of our ongoing operations. Management believes Adjusted Segment
Profit provides investors meaningful insight into Williams Partners L.P.’s results from ongoing
operations.
For Williams Partners L.P. we define Distributable Cash Flow as net income plus depreciation and
amortization and cash distributions from our equity investments less our earnings from our equity
investments, distributions
| Williams Partners L.P. (NYSE: WPZ) | First-Quarter 2011 Financial Results — May 4, 2011 | Page 7 of 10 |
to noncontrolling interests and maintenance capital expenditures. We also adjust for payments
and/or reimbursements under omnibus agreements with Williams and certain other items. Total
Distributable Cash Flow is reduced by any amounts associated with operations, which occurred prior
to our ownership of the underlying assets to arrive at Distributable Cash Flow attributable to
partnership operations.
For Williams Partners L.P. we also calculate the ratio of Distributable Cash Flow attributable to
partnership operations to the total cash distributed (Cash Distribution Coverage Ratio). This
measure reflects the amount of Distributable Cash Flow relative to our cash distribution. We have
also provided this ratio calculated using the most directly comparable GAAP measure, net income.
This press release is accompanied by a reconciliation of these non-GAAP financial measures to their
nearest GAAP financial measures. Management uses these financial measures because they are accepted
financial indicators used by investors to compare company performance. In addition, management
believes that these measures provide investors an enhanced perspective of the operating performance
of the Partnership’s assets and the cash that the business is generating. Neither Adjusted Segment
Profit nor Distributable Cash Flow are intended to represent cash flows for the period, nor are
they presented as an alternative to net income or cash flow from operations. They should not be
considered in isolation or as substitutes for a measure of performance prepared in accordance with
United States generally accepted accounting principles.
New Quarterly Presentation Format, Analyst Call/Webcast Tomorrow
Utilizing its new format for quarterly earnings and outlook, the first-quarter slide presentation,
data book and analyst package will be available shortly for viewing, downloading, and printing at
www.williamslp.com. Williams Partners will also be providing the quarterly presentation with
audio commentary by CEO Alan Armstrong.
Management will be available to discuss the first-quarter 2011 results and 2011-12 outlook during a
live analyst call/webcast beginning at 11 a.m. EDT tomorrow. Links to the live webcast will be
available on Williams Partners’ web site. A limited number of phone lines also will be available
at (888) 516-2438. International callers should dial (719) 325-2190.
Replays of the first-quarter analyst call/webcast in both streaming and downloadable podcast
formats will be available for two weeks following the event at www.williamslp.com.
| Williams Partners L.P. (NYSE: WPZ) | First-Quarter 2011 Financial Results — May 4, 2011 | Page 8 of 10 |
Form 10-Q
The partnership plans to file its first-quarter 2011 Form 10-Q with the Securities and Exchange
Commission (SEC) this week. The document will be available on both the SEC and Williams Partners
web sites.
About Williams Partners L.P. (NYSE: WPZ)
Williams Partners L.P. is a leading diversified master limited partnership focused on natural gas
transportation; gathering, treating, and processing; storage; natural gas liquid (NGL)
fractionation; and oil transportation. The partnership owns interests in three major interstate
natural gas pipelines that, combined, deliver 12 percent of the natural gas consumed in the United
States. The partnership’s gathering and processing assets include large-scale operations in the
U.S. Rocky Mountains and both onshore and offshore along the Gulf of Mexico. Williams (NYSE: WMB)
owns approximately 75 percent of Williams Partners, including the general-partner interest. More
information is available at www.williamslp.com. Go to
http://www.b2i.us/irpass.asp?BzID=1296&to=ea&s=0 or http://www.b2i.us/irpass.asp?BzID=630&to=ea&s=0 to join our email list.
http://www.b2i.us/irpass.asp?BzID=1296&to=ea&s=0 or http://www.b2i.us/irpass.asp?BzID=630&to=ea&s=0 to join our email list.
# # #
Williams Partners L.P. is a limited partnership formed by The Williams Companies, Inc.
(Williams). Our reports, filings, and other public announcements may contain or incorporate by
reference statements that do not directly or exclusively relate to historical facts. Such
statements are “forward-looking statements” within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. You
typically can identify forward-looking statements by various forms of words such as “anticipates,”
“believes,” “seeks,” “could,” “may,” “should,” “continues,” “estimates,” “expects,” “forecasts,”
“intends,” “might,” “goals,” “objectives,” “targets,” “planned,” “potential,” “projects,”
“scheduled,” “will,” or other similar expressions. These forward-looking statements are based on
management’s beliefs and assumptions and on information currently available to management and
include, among others, statements regarding:
| • | Amounts and nature of future capital expenditures; | ||
| • | Expansion and growth of our business and operations; | ||
| • | Financial condition and liquidity; | ||
| • | Business strategy; | ||
| • | Cash flow from operations or results of operations; | ||
| • | The levels of cash distributions to unitholders; | ||
| • | Seasonality of certain business segments; and | ||
| • | Natural gas and natural gas liquids prices and demand. |
Forward-looking statements are based on numerous assumptions, uncertainties and risks that could
cause future events or results to be materially different from those stated or implied in this
announcement. Many of the factors that will determine these results are beyond our ability to
control or predict. Specific factors that could cause actual results to differ from results
contemplated by the forward-looking statements include, among others, the following:
| • | Whether we have sufficient cash from operations to enable us to maintain current levels of cash distributions or to pay cash distributions following establishment of cash reserves and payment of fees and expenses, including payments to our general partner; | ||
| • | Availability of supplies (including the uncertainties inherent in assessing and estimating future natural gas reserves), market demand, volatility of prices, and the availability and cost of capital; | ||
| • | Inflation, interest rates and general economic conditions (including future disruptions and volatility in the global credit markets and the impact of these events on our customers and suppliers); | ||
| • | The strength and financial resources of our competitors; | ||
| • | Development of alternative energy sources; | ||
| • | The impact of operational and development hazards; | ||
| • | Costs of, changes in, or the results of laws, government regulations (including climate change legislation and/or potential additional regulation of drilling and completion of wells), environmental liabilities, litigation and rate proceedings; |
| Williams Partners L.P. (NYSE: WPZ) | First-Quarter 2011 Financial Results — May 4, 2011 | Page 9 of 10 |
| • | Our allocated costs for defined benefit pension plans and other postretirement benefit plans sponsored by our affiliates; | ||
| • | Changes in maintenance and construction costs; | ||
| • | Changes in the current geopolitical situation; | ||
| • | Our exposure to the credit risks of our customers; | ||
| • | Risks related to strategy and financing, including restrictions stemming from our debt agreements, future changes in our credit ratings and the availability and cost of credit; | ||
| • | Risks associated with future weather conditions; | ||
| • | Acts of terrorism; and | ||
| • | Additional risks described in our filings with the Securities and Exchange Commission (SEC). |
Given the uncertainties and risk factors that could cause our actual results to differ materially
from those contained in any forward-looking statement, we caution investors not to unduly rely on
our forward-looking statements. We disclaim any obligations to and do not intend to update the
above list or to announce publicly the result of any revisions to any of the forward-looking
statements to reflect future events or developments.
In addition to causing our actual results to differ, the factors listed above may cause our
intentions to change from those statements of intention set forth in this announcement. Such
changes in our intentions may also cause our results to differ. We may change our intentions, at
any time and without notice, based upon changes in such factors, our assumptions, or otherwise.
Limited partner interests are inherently different from the capital stock of a corporation,
although many of the business risks to which we are subject are similar to those that would be
faced by a corporation engaged in a similar business. Investors are urged to closely consider the
disclosures and risk factors in our annual report on Form 10-K filed with the SEC on February 24,
2011, and our quarterly reports on Form 10-Q available from our offices or from our website at
www.williamslp.com.
| Williams Partners L.P. (NYSE: WPZ) | First-Quarter 2011 Financial Results — May 4, 2011 | Page 10 of 10 |
Financial Highlights and Operating Statistics
(UNAUDITED)
(UNAUDITED)
Final
March 31, 2011
Reconciliation of Non-GAAP Measures
(UNAUDITED)
(UNAUDITED)
This press release includes certain financial measures, Adjusted Segment Profit and Distributable
Cash Flow that are non-GAAP financial measures as defined under the rules of the Securities and
Exchange Commission.
For Williams Partners L.P., Adjusted Segment Profit excludes items of income or loss that we
characterize as unrepresentative of our ongoing operations. Management believes Adjusted Segment
Profit provides investors meaningful insight into Williams Partners L.P.’s results from ongoing
operations.
For Williams Partners L.P. we define Distributable Cash Flow as net income plus depreciation
and amortization and cash distributions from our equity investments less our earnings from equity
investments, distributions to noncontrolling interests and maintenance capital expenditures. We
also adjust for payments and/or reimbursements under omnibus agreements with Williams and certain
non-cash adjustments. Total Distributable Cash Flow is reduced by any amounts associated with
operations, which occurred prior to our ownership of the underlying assets to arrive at
Distributable Cash Flow attributable to partnership operations.
For Williams Partners L.P. we also calculate the ratio of Distributable Cash Flow attributable
to partnership operations to the total cash distributed (cash distribution coverage ratio). This
measure reflects the amount of Distributable Cash Flow relative to our cash distribution. We have
also provided this ratio calculated using the most directly comparable GAAP measure, net income.
This press release is accompanied by a reconciliation of these non-GAAP financial measures to
their nearest GAAP financial measures. Management uses these financial measures because they are
accepted financial indicators used by investors to compare company performance. In addition,
management believes that these measures provide investors an enhanced perspective of the operating
performance of the Partnership’s assets and the cash that the business is generating. Neither
Adjusted Segment Profit nor Distributable Cash Flow are intended to represent cash flows for the
period, nor are they presented as an alternative to net income or cash flow from operations. They
should not be considered in isolation or as substitutes for a measure of performance prepared in
accordance with United States generally accepted accounting principles.
| 2010 | 2011 | |||||||||||||||||||||||
| (Dollars in millions, except coverage ratios) | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | ||||||||||||||||||
Williams Partners L.P. |
||||||||||||||||||||||||
Reconciliation of Non-GAAP “Distributable Cash Flow” to GAAP “Net income” |
||||||||||||||||||||||||
Net income |
$ | 322 | $ | 240 | $ | 253 | $ | 286 | $ | 1,101 | $ | 307 | ||||||||||||
Depreciation and amortization |
140 | 140 | 140 | 148 | 568 | 150 | ||||||||||||||||||
Non-cash amortization of debt issuance costs included in interest expense |
4 | 5 | 5 | 5 | 19 | 5 | ||||||||||||||||||
Equity earnings from investments |
(26 | ) | (27 | ) | (24 | ) | (32 | ) | (109 | ) | (25 | ) | ||||||||||||
Distributions to noncontrolling interests |
(6 | ) | (6 | ) | (6 | ) | — | (18 | ) | — | ||||||||||||||
Involuntary conversion gain resulting from Ignacio fire |
— | (4 | ) | — | — | (4 | ) | — | ||||||||||||||||
Involuntary conversion gain resulting from Hurricane Ike |
— | (7 | ) | (7 | ) | — | (14 | ) | — | |||||||||||||||
Impairment of certain gathering assets |
— | — | — | 9 | 9 | — | ||||||||||||||||||
Reimbursements (payments) from/(to) Williams under omnibus agreement |
— | (1 | ) | 1 | 3 | 3 | 8 | |||||||||||||||||
Maintenance capital expenditures |
(32 | ) | (46 | ) | (119 | ) | (104 | ) | (301 | ) | (34 | ) | ||||||||||||
Distributable Cash Flow excluding equity investments |
402 | 294 | 243 | 315 | 1,254 | 411 | ||||||||||||||||||
Plus: Equity investments cash distributions to Williams Partners L.P. |
29 | 43 | 29 | 32 | 133 | 30 | ||||||||||||||||||
Distributable Cash Flow |
431 | 337 | 272 | 347 | 1,387 | 441 | ||||||||||||||||||
Less: Pre-partnership Distributable Cash Flow |
158 | 21 | 32 | 12 | 223 | — | ||||||||||||||||||
Distributable cash flow attributable to partnership operations |
$ | 273 | $ | 316 | $ | 240 | $ | 335 | $ | 1,164 | $ | 441 | ||||||||||||
Total cash distributed: |
$ | 155 | $ | 221 | $ | 250 | $ | 268 | $ | 894 | $ | 276 | ||||||||||||
Coverage ratios: |
||||||||||||||||||||||||
Distributable cash flow attributable to partnership operations divided
by Total cash distributed |
1.76 | 1.43 | 0.96 | 1.25 | 1.30 | 1.60 | ||||||||||||||||||
Net income divided by Total cash distributed |
2.08 | 1.09 | 1.01 | 1.07 | 1.23 | 1.11 | ||||||||||||||||||
1
Reconciliation of GAAP “Segment Profit” to Non-GAAP “Adjusted Segment Profit”
(UNAUDITED)
(UNAUDITED)
| 2010 | 2011 | |||||||||||||||||||||||
| (Dollars in millions) | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | ||||||||||||||||||
Gas Pipeline |
$ | 169 | $ | 148 | $ | 161 | $ | 159 | $ | 637 | $ | 175 | ||||||||||||
Midstream Gas & Liquids |
255 | 213 | 210 | 259 | 937 | 262 | ||||||||||||||||||
Segment Profit |
$ | 424 | $ | 361 | $ | 371 | $ | 418 | $ | 1,574 | $ | 437 | ||||||||||||
Adjustments: |
||||||||||||||||||||||||
Gas Pipeline |
||||||||||||||||||||||||
Unclaimed property assessment accrual adjustment — TGPL |
— | (1 | ) | — | — | (1 | ) | — | ||||||||||||||||
Unclaimed property assessment accrual adjustment — NWP |
— | (1 | ) | — | — | (1 | ) | — | ||||||||||||||||
Loss related to Eminence storage facility leak |
— | — | — | 5 | 5 | 4 | ||||||||||||||||||
Gain on sale of base gas from Hester storage field |
(5 | ) | (3 | ) | — | — | (8 | ) | (4 | ) | ||||||||||||||
Total Gas Pipeline adjustments |
(5 | ) | (5 | ) | — | 5 | (5 | ) | — | |||||||||||||||
Midstream Gas & Liquids |
||||||||||||||||||||||||
Involuntary conversion gain related to Ignacio |
— | (4 | ) | — | — | (4 | ) | — | ||||||||||||||||
Involuntary conversion gain related to Hurricane Ike |
— | (7 | ) | (7 | ) | — | (14 | ) | — | |||||||||||||||
Gain on sale of certain assets |
— | — | (12 | ) | — | (12 | ) | — | ||||||||||||||||
Impairment of certain gathering assets |
— | — | — | 9 | 9 | — | ||||||||||||||||||
Settlement gain related to Green Canyon development |
— | — | — | (6 | ) | (6 | ) | — | ||||||||||||||||
Total Midstream Gas & Liquids adjustments |
— | (11 | ) | (19 | ) | 3 | (27 | ) | — | |||||||||||||||
Total adjustments included in segment profit |
(5 | ) | (16 | ) | (19 | ) | 8 | (32 | ) | — | ||||||||||||||
Adjusted segment profit |
$ | 419 | $ | 345 | $ | 352 | $ | 426 | $ | 1,542 | $ | 437 | ||||||||||||
2
Williams Partners L.P.
(UNAUDITED)
(UNAUDITED)
| Full Year Forecasted 2011 | Full Year Forecasted 2012 | |||||||||||||||||||||||
| (Dollars in millions, except coverage ratios) | Low | Midpoint | High | Low | Midpoint | High | ||||||||||||||||||
Reconciliation of Non-GAAP “Distributable Cash Flow attributable to partnership operations” to GAAP “Net income” |
||||||||||||||||||||||||
Net income |
$ | 1,135 | $ | 1,335 | $ | 1,535 | $ | 1,225 | $ | 1,490 | $ | 1,755 | ||||||||||||
Depreciation and amortization |
610 | 630 | 650 | 635 | 655 | 675 | ||||||||||||||||||
Other |
25 | 28 | 30 | 10 | 10 | 10 | ||||||||||||||||||
Maintenance capital expenditures |
(500 | ) | (523 | ) | (545 | ) | (410 | ) | (445 | ) | (480 | ) | ||||||||||||
Distributable cash flow attributable to partnership operations |
$ | 1,270 | $ | 1,470 | $ | 1,670 | $ | 1,460 | $ | 1,710 | $ | 1,960 | ||||||||||||
Total cash to be distributed * |
$ | 1,142 | $ | 1,171 | $ | 1,200 | $ | 1,283 | $ | 1,358 | $ | 1,433 | ||||||||||||
Coverage ratios: |
||||||||||||||||||||||||
Distributable cash flow attributable to partnership operations divided by Total cash distributed * |
1.1 | 1.3 | 1.4 | 1.1 | 1.3 | 1.4 | ||||||||||||||||||
Net income divided by Total cash distributed * |
1.0 | 1.1 | 1.3 | 1.0 | 1.1 | 1.2 | ||||||||||||||||||
|
* Distributions reflect growth rates of 6-10%. |
||||||||||||||||||||||||
Reconciliation of Non-GAAP “Adjusted Segment Profit” to GAAP “Segment Profit” |
||||||||||||||||||||||||
Segment Profit: |
||||||||||||||||||||||||
Midstream |
$ | 1,025 | $ | 1,200 | $ | 1,375 | $ | 1,100 | $ | 1,350 | $ | 1,600 | ||||||||||||
Gas Pipeline |
670 | 690 | 710 | 680 | 700 | 720 | ||||||||||||||||||
Total Segment Profit |
1,695 | 1,890 | 2,085 | 1,780 | 2,050 | 2,320 | ||||||||||||||||||
Adjustments: |
||||||||||||||||||||||||
Gas Pipeline — Gain on sale of base gas from Hester storage field |
(4 | ) | (4 | ) | (4 | ) | — | — | — | |||||||||||||||
Gas Pipeline — Loss related to Eminence storage facility leak |
4 | 4 | 4 | — | — | — | ||||||||||||||||||
Adjusted segment profit |
$ | 1,695 | $ | 1,890 | $ | 2,085 | $ | 1,780 | $ | 2,050 | $ | 2,320 | ||||||||||||
3
Consolidated Statement of Income
(UNAUDITED)
(UNAUDITED)
| 2010 | 2011 | |||||||||||||||||||||||
| (Dollars in millions, except per-share amounts) | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | ||||||||||||||||||
Revenues: |
||||||||||||||||||||||||
Gas Pipeline |
$ | 407 | $ | 380 | $ | 409 | $ | 409 | $ | 1,605 | $ | 416 | ||||||||||||
Midstream Gas & Liquids |
1,083 | 1,020 | 919 | 1,087 | 4,109 | 1,163 | ||||||||||||||||||
Intercompany eliminations |
— | — | (1 | ) | 2 | 1 | — | |||||||||||||||||
Total revenues |
1,490 | 1,400 | 1,327 | 1,498 | 5,715 | 1,579 | ||||||||||||||||||
Segment costs and expenses: |
||||||||||||||||||||||||
Costs and operating expenses |
1,033 | 1,002 | 923 | 1,026 | 3,984 | 1,105 | ||||||||||||||||||
Selling, general and administrative expenses |
62 | 70 | 70 | 79 | 281 | 73 | ||||||||||||||||||
Other (income) expense — net |
(3 | ) | (6 | ) | (13 | ) | 7 | (15 | ) | (11 | ) | |||||||||||||
Segment costs and expenses |
1,092 | 1,066 | 980 | 1,112 | 4,250 | 1,167 | ||||||||||||||||||
General corporate expenses |
35 | 28 | 30 | 32 | 125 | 30 | ||||||||||||||||||
Operating income: |
||||||||||||||||||||||||
Gas Pipeline |
160 | 138 | 151 | 150 | 599 | 166 | ||||||||||||||||||
Midstream Gas & Liquids |
238 | 196 | 196 | 236 | 866 | 246 | ||||||||||||||||||
General corporate expenses |
(35 | ) | (28 | ) | (30 | ) | (32 | ) | (125 | ) | (30 | ) | ||||||||||||
Total operating income |
363 | 306 | 317 | 354 | 1,340 | 382 | ||||||||||||||||||
Equity earnings |
26 | 27 | 24 | 32 | 109 | 25 | ||||||||||||||||||
Interest accrued — third party |
(81 | ) | (101 | ) | (103 | ) | (107 | ) | (392 | ) | (108 | ) | ||||||||||||
Interest accrued — affiliate |
— | (1 | ) | — | — | (1 | ) | — | ||||||||||||||||
Interest capitalized |
12 | 7 | 7 | 3 | 29 | 2 | ||||||||||||||||||
Interest income |
3 | — | — | 1 | 4 | 1 | ||||||||||||||||||
Other income (expense) — net |
(1 | ) | 2 | 9 | 4 | 14 | 5 | |||||||||||||||||
Income before income taxes |
322 | 240 | 254 | 287 | 1,103 | 307 | ||||||||||||||||||
Provision for income taxes |
— | — | 1 | 1 | 2 | — | ||||||||||||||||||
Net income |
322 | 240 | 253 | 286 | 1,101 | 307 | ||||||||||||||||||
Less: Net income attributable to noncontrolling interests |
6 | 5 | 5 | — | 16 | — | ||||||||||||||||||
Net income attributable to controlling interests |
$ | 316 | $ | 235 | $ | 248 | $ | 286 | $ | 1,085 | $ | 307 | ||||||||||||
Allocation of net income for calculation of earnings per common unit: |
||||||||||||||||||||||||
Net income attributable to controlling interests |
$ | 316 | $ | 235 | $ | 248 | $ | 286 | $ | 1,085 | $ | 307 | ||||||||||||
Allocation of net income to general partner and Class C units |
284 | 65 | 85 | 73 | 517 | 71 | ||||||||||||||||||
Allocation of net income to common units |
$ | 32 | $ | 170 | $ | 163 | $ | 213 | $ | 568 | $ | 236 | ||||||||||||
Net income, per common unit |
$ | 0.61 | $ | 0.66 | $ | 0.63 | $ | 0.76 | $ | 2.66 | $ | 0.81 | ||||||||||||
Weighted-average number of common units outstanding |
52,777 | 255,777 | 260,508 | 282,058 | 213,539 | 289,845 | ||||||||||||||||||
Cash distributions per common unit |
$ | 0.6575 | $ | 0.6725 | $ | 0.6875 | $ | 0.7025 | $ | 2.7200 | $ | 0.7175 | ||||||||||||
4
Gas Pipeline
(UNAUDITED)
(UNAUDITED)
| 2010 | 2011 | |||||||||||||||||||||||
| (Dollars in millions) | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | ||||||||||||||||||
Revenues: |
||||||||||||||||||||||||
Northwest Pipeline |
$ | 106 | $ | 103 | $ | 103 | $ | 110 | $ | 422 | $ | 110 | ||||||||||||
Transcontinental Gas Pipe Line |
300 | 278 | 305 | 299 | 1,182 | 305 | ||||||||||||||||||
Other |
1 | (1 | ) | 1 | — | 1 | 1 | |||||||||||||||||
Total revenues |
407 | 380 | 409 | 409 | 1,605 | 416 | ||||||||||||||||||
Segment costs and expenses: |
||||||||||||||||||||||||
Costs and operating expenses |
212 | 199 | 216 | 212 | 839 | 219 | ||||||||||||||||||
Selling, general and administrative expenses |
33 | 39 | 37 | 42 | 151 | 41 | ||||||||||||||||||
Other (income) expense — net |
2 | 4 | 5 | 5 | 16 | (10 | ) | |||||||||||||||||
Total segment costs and expenses |
247 | 242 | 258 | 259 | 1,006 | 250 | ||||||||||||||||||
Equity earnings |
9 | 10 | 10 | 9 | 38 | 9 | ||||||||||||||||||
Reported segment profit: |
||||||||||||||||||||||||
Northwest Pipeline |
54 | 50 | 53 | 55 | 212 | 56 | ||||||||||||||||||
Transcontinental Gas Pipe Line |
108 | 91 | 100 | 95 | 394 | 111 | ||||||||||||||||||
Other |
7 | 7 | 8 | 9 | 31 | 8 | ||||||||||||||||||
Total reported segment profit |
169 | 148 | 161 | 159 | 637 | 175 | ||||||||||||||||||
Adjustments: |
||||||||||||||||||||||||
Northwest Pipeline |
— | (1 | ) | — | — | (1 | ) | — | ||||||||||||||||
Transcontinental Gas Pipe Line |
(5 | ) | (4 | ) | — | 5 | (4 | ) | — | |||||||||||||||
Total adjustments |
(5 | ) | (5 | ) | — | 5 | (5 | ) | — | |||||||||||||||
Adjusted segment profit: |
||||||||||||||||||||||||
Northwest Pipeline |
54 | 49 | 53 | 55 | 211 | 56 | ||||||||||||||||||
Transcontinental Gas Pipe Line |
103 | 87 | 100 | 100 | 390 | 111 | ||||||||||||||||||
Other |
7 | 7 | 8 | 9 | 31 | 8 | ||||||||||||||||||
Total adjusted segment profit |
$ | 164 | $ | 143 | $ | 161 | $ | 164 | $ | 632 | $ | 175 | ||||||||||||
Operating statistics (Tbtu) |
||||||||||||||||||||||||
Northwest Pipeline |
||||||||||||||||||||||||
Throughput |
179.4 | 156.5 | 152.7 | 183.8 | 672.4 | 176.8 | ||||||||||||||||||
Avg. daily transportation volumes |
2.0 | 1.7 | 1.7 | 2.0 | 1.8 | 2.0 | ||||||||||||||||||
Avg. daily firm reserved capacity |
2.8 | 2.8 | 2.8 | 2.8 | 2.8 | 2.9 | ||||||||||||||||||
Transcontinental Gas Pipe Line |
||||||||||||||||||||||||
Throughput |
586.1 | 459.6 | 517.1 | 593.5 | 2,156.3 | 652.2 | ||||||||||||||||||
Avg. daily transportation volumes |
6.5 | 5.1 | 5.6 | 6.5 | 5.9 | 7.2 | ||||||||||||||||||
Avg. daily firm reserved capacity |
7.0 | 6.9 | 7.1 | 7.6 | 7.2 | 7.7 | ||||||||||||||||||
5
Midstream Gas & Liquids
(UNAUDITED)
(UNAUDITED)
| 2010 | 2011 | |||||||||||||||||||||||
| (Dollars in millions) | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | ||||||||||||||||||
Revenues: |
||||||||||||||||||||||||
Gathering & processing |
$ | 149 | $ | 152 | $ | 155 | $ | 163 | $ | 619 | $ | 163 | ||||||||||||
NGL sales from gas processing |
338 | 272 | 229 | 298 | 1,137 | 306 | ||||||||||||||||||
Production handling and transportation |
29 | 26 | 26 | 26 | 107 | 25 | ||||||||||||||||||
Marketing sales |
999 | 897 | 796 | 1,025 | 3,717 | 1,122 | ||||||||||||||||||
Other revenues |
43 | 42 | 38 | 40 | 163 | 42 | ||||||||||||||||||
| 1,558 | 1,389 | 1,244 | 1,552 | 5,743 | 1,658 | |||||||||||||||||||
Intrasegment eliminations |
(475 | ) | (369 | ) | (325 | ) | (465 | ) | (1,634 | ) | (495 | ) | ||||||||||||
Total revenues |
1,083 | 1,020 | 919 | 1,087 | 4,109 | 1,163 | ||||||||||||||||||
Segment costs and expenses: |
||||||||||||||||||||||||
NGL cost of goods sold |
145 | 106 | 93 | 98 | 442 | 99 | ||||||||||||||||||
Marketing cost of goods sold |
997 | 902 | 792 | 1,006 | 3,697 | 1,109 | ||||||||||||||||||
Other cost of goods sold |
10 | 7 | 7 | 6 | 30 | 7 | ||||||||||||||||||
Operating costs |
144 | 157 | 141 | 166 | 608 | 166 | ||||||||||||||||||
Other |
||||||||||||||||||||||||
Selling, general and administrative expenses |
29 | 31 | 32 | 38 | 130 | 32 | ||||||||||||||||||
Other (income) expense — net |
(5 | ) | (10 | ) | (17 | ) | 2 | (30 | ) | (1 | ) | |||||||||||||
Intrasegment eliminations |
(475 | ) | (369 | ) | (325 | ) | (465 | ) | (1,634 | ) | (495 | ) | ||||||||||||
Total segment costs and expenses |
845 | 824 | 723 | 851 | 3,243 | 917 | ||||||||||||||||||
Equity earnings |
17 | 17 | 14 | 23 | 71 | 16 | ||||||||||||||||||
Reported segment profit |
255 | 213 | 210 | 259 | 937 | 262 | ||||||||||||||||||
Adjustments |
— | (11 | ) | (19 | ) | 3 | (27 | ) | — | |||||||||||||||
Adjusted segment profit |
$ | 255 | $ | 202 | $ | 191 | $ | 262 | $ | 910 | $ | 262 | ||||||||||||
Operating statistics |
||||||||||||||||||||||||
Gathering and Processing |
||||||||||||||||||||||||
Gathering volumes (TBtu) |
312 | 312 | 317 | 321 | 1,262 | 321 | ||||||||||||||||||
Plant inlet natural gas volumes (Tbtu) |
360 | 352 | 343 | 369 | 1,424 | 349 | ||||||||||||||||||
NGL equity sales (million gallons) * |
332 | 302 | 271 | 317 | 1,222 | 289 | ||||||||||||||||||
NGL margin ($/gallon) |
$ | 0.58 | $ | 0.55 | $ | 0.50 | $ | 0.63 | $ | 0.57 | $ | 0.71 | ||||||||||||
NGL production (million gallons) * |
671 | 653 | 616 | 722 | 2,662 | 666 | ||||||||||||||||||
Discovery Producer Services L.L.C. (equity investment) - 100% |
||||||||||||||||||||||||
NGL equity sales (million gallons) |
30 | 28 | 23 | 24 | 105 | 20 | ||||||||||||||||||
NGL production (million gallons) |
89 | 84 | 81 | 91 | 345 | 83 | ||||||||||||||||||
Laurel Mountain Midstream, LLC (equity investment) - 100% |
||||||||||||||||||||||||
Gathering volumes (Tbtu) |
9 | 10 | 11 | 12 | 42 | 12 | ||||||||||||||||||
| * | Excludes volumes associated with partially owned assets that are not consolidated for financial reporting purposes. |
6
Capital Expenditures and Investments
(UNAUDITED)
(UNAUDITED)
| 2010 | 2011 | |||||||||||||||||||||||
| (Dollars in millions) | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | ||||||||||||||||||
Capital expenditures: |
||||||||||||||||||||||||
Gas Pipeline: |
||||||||||||||||||||||||
Northwest Pipeline |
$ | 10 | $ | 24 | $ | 51 | $ | 35 | $ | 120 | $ | 14 | ||||||||||||
Transcontinental Gas Pipe Line |
56 | 83 | 98 | 145 | 382 | 84 | ||||||||||||||||||
Total |
66 | 107 | 149 | 180 | 502 | 98 | ||||||||||||||||||
Midstream Gas & Liquids |
54 | 114 | 97 | 70 | 335 | 58 | ||||||||||||||||||
Total* |
$ | 120 | $ | 221 | $ | 246 | $ | 250 | $ | 837 | $ | 156 | ||||||||||||
Purchase of businesses: |
||||||||||||||||||||||||
Gas Pipeline |
$ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Midstream Gas & Liquids |
— | — | — | 608 | 608 | — | ||||||||||||||||||
Total |
$ | — | $ | — | $ | — | $ | 608 | $ | 608 | $ | — | ||||||||||||
Purchase of investments: |
||||||||||||||||||||||||
Gas Pipeline |
$ | 1 | $ | — | $ | 1 | $ | 3 | $ | 5 | $ | 8 | ||||||||||||
Midstream Gas & Liquids |
8 | 6 | 434 | 23 | 471 | 28 | ||||||||||||||||||
Total |
$ | 9 | $ | 6 | $ | 435 | $ | 26 | $ | 476 | $ | 36 | ||||||||||||
Summary: |
||||||||||||||||||||||||
Gas Pipeline |
$ | 67 | $ | 107 | $ | 150 | $ | 183 | $ | 507 | $ | 106 | ||||||||||||
Midstream Gas & Liquids |
62 | 120 | 531 | 701 | 1,414 | 86 | ||||||||||||||||||
Total |
$ | 129 | $ | 227 | $ | 681 | $ | 884 | $ | 1,921 | $ | 192 | ||||||||||||
Cumulative summary: |
||||||||||||||||||||||||
Gas Pipeline |
$ | 67 | $ | 174 | $ | 324 | $ | 507 | $ | 507 | $ | 106 | ||||||||||||
Midstream Gas & Liquids |
62 | 182 | 713 | 1,414 | 1,414 | 86 | ||||||||||||||||||
Total |
$ | 129 | $ | 356 | $ | 1,037 | $ | 1,921 | $ | 1,921 | $ | 192 | ||||||||||||
Capital expenditures incurred and purchase of investments: |
||||||||||||||||||||||||
Increases to property, plant, and equipment |
$ | 103 | $ | 181 | $ | 235 | $ | 240 | $ | 759 | $ | 142 | ||||||||||||
Purchase of businesses |
— | — | — | 608 | 608 | — | ||||||||||||||||||
Purchase of investments |
9 | 6 | 435 | 26 | 476 | 36 | ||||||||||||||||||
Total |
$ | 112 | $ | 187 | $ | 670 | $ | 874 | $ | 1,843 | $ | 178 | ||||||||||||
*Increases to property, plant, and equipment |
$ | 103 | $ | 181 | $ | 235 | $ | 240 | $ | 759 | $ | 142 | ||||||||||||
Changes in related accounts payable and accrued
liabilities |
17 | 40 | 11 | 10 | 78 | 14 | ||||||||||||||||||
Capital expenditures |
$ | 120 | $ | 221 | $ | 246 | $ | 250 | $ | 837 | $ | 156 | ||||||||||||
7
Depreciation and Amortization
(UNAUDITED)
(UNAUDITED)
| 2010 | 2011 | |||||||||||||||||||||||
| (Dollars in millions) | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | ||||||||||||||||||
Depreciation and amortization: |
||||||||||||||||||||||||
Gas Pipeline: |
||||||||||||||||||||||||
Northwest Pipeline |
$ | 22 | $ | 22 | $ | 22 | $ | 22 | $ | 88 | $ | 23 | ||||||||||||
Transcontinental Gas Pipe Line |
63 | 62 | 62 | 65 | 252 | 64 | ||||||||||||||||||
Total |
85 | 84 | 84 | 87 | 340 | 87 | ||||||||||||||||||
Midstream Gas & Liquids |
55 | 56 | 56 | 61 | 228 | 63 | ||||||||||||||||||
Total |
$ | 140 | $ | 140 | $ | 140 | $ | 148 | $ | 568 | $ | 150 | ||||||||||||
8