WILLIAMS UT 
By The 2008 per-unit amount is based on prorated net income for the period from the date the partnership completed its initial public offering on
For fourth-quarter 2008, Williams Pipeline Partners reported net income of
Higher transportation volumes contributed to a strong improvement in Northwest Pipeline GP's fourth-quarter operating results. Higher revenues and lower operating expenses were the primary drivers of improvement in Northwest Pipeline's full-year recurring operating results. Those results are a key component of the partnership's earnings from its 35 percent equity interest in Northwest Pipeline.
Total distributable cash flow in 2008 for Williams Pipeline Partners' limited-partner unitholders was
Subsequent to the close of the fourth quarter, Williams Pipeline Partners announced it had raised its regular cash distribution to unitholders to
The new distribution amount is a 1.6-percent increase over the third-quarter 2008 distribution of
Liquidity and Debt Maturities
As of
Northwest Pipeline on
Distributable Cash Flow Definition
Distributable cash flow per weighted average limited-partner unit is a key measure of the partnership's financial performance and available cash flows to unitholders.
This press release includes certain financial measures, Distributable Cash Flow and Distributable Cash Flow per Limited Partner Unit that are non-GAAP financial measures as defined under the rules of the Securities and Exchange Commission. GAAP refers to generally accepted accounting principles.
For Williams Pipeline Partners, we define Distributable Cash Flow as net income less its equity earnings in Northwest Pipeline, plus reimbursements from Williams under an omnibus agreement, plus cash distributed by Northwest Pipeline attributable to Northwest Pipeline's operations through the current reporting period.
For Williams Pipeline Partners, we define Distributable Cash Flow per Limited Partner Unit as Distributable Cash Flow, as defined in the preceding paragraph, allocated among the general partner and the limited partners in accordance with the cash-distribution provisions of our partnership agreement resulting in distributable cash flow attributable to the general partner and distributable cash flow attributable to limited partners, respectively. The resulting Distributable Cash Flow attributable to limited partners is then divided by the weighted average limited partner units outstanding to arrive at Distributable Cash Flow per Limited Partner Unit.
This press release is accompanied by a reconciliation of these non-GAAP financial measures to their nearest GAAP financial measures.
Today's Analyst Call
Management will discuss Williams Pipeline Partners' year-end 2008 results during a live webcast beginning at
Participants are encouraged to access the webcast and slides available for viewing, downloading and printing at www.williamspipelinepartners.com.
A limited number of phone lines also will be available at (877) 723-9517. International callers should dial (719) 325-4829. Replays of the year-end webcast, in both streaming and downloadable podcast formats, will be available for two weeks at www.williamspipelinepartners.com following the event.
Form 10-K
Williams Pipeline Partners plans to file its Form 10-K with the SEC during the week of
About Williams Pipeline Partners L.P. (NYSE: WMZ)
Williams Pipeline Partners is a publicly traded master limited partnership that owns and operates natural gas transportation and storage assets. The general partner of Williams Pipeline Partners is Williams Pipeline GP LLC, which is a wholly owned subsidiary of Williams (NYSE: WMB). For more information, please visit www.williamspipelinepartners.com. Go to http://www.b2i.us/irpass.asp?BzID=1589&to=ea&s=0 to join our e-mail list.
Contact: Jeff Pounds
Williams (media relations)
(918) 573-3332
Richard George
Williams (investor relations)
(918) 573-3679
Williams Pipeline 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 the Private Securities Litigation Reform Act of 1995. You typically can identify forward-looking statements by the use of forward-looking words, such as "anticipates," believes," "could," "may," "should," "continues," "estimates," "expects," "forecasts," "might," "planned," "potential," "projects," "scheduled," "will," and other similar words. These statements are based on our present intentions and our assumptions about future events and are subject to risks, uncertainties, and other factors. In addition to any assumptions, risks, uncertainties or other factors referred to specifically in connection with such statements, other factors not specifically referenced could cause our actual results to differ materially from the results expressed or implied in any forward-looking statements. Those factors include, among others:
-- whether we have sufficient cash from operations to enable us to pay the
minimum distribution following establishment of cash reserves and
payment of fees and expenses, including cost reimbursements to our
general partner;
-- availability of cash for distribution, which depends primarily on our
cash flow, and not solely on profitability;
-- availability of supplies (including the uncertainties inherent in
assessing, estimating, acquiring and developing future natural gas
reserves), market demand, volatility of prices, and the availability and
costs of capital;
-- inflation, interest rates, fluctuation in foreign exchange, and general
economic conditions (including the recent economic slowdown and the
disruption of 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 proposed climate change legislation), environmental
liabilities, litigation, and rate proceedings;
-- increasing maintenance and construction costs;
-- changes in the current geopolitical situation;
-- 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.
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. In addition to causing our actual results to differ, the factors listed above may cause our intentions to change. Such changes in our intentions may also cause our results to differ. We disclaim any obligation to and do not intend to publicly update or revise any forward-looking statements or changes to our intentions, whether as a result of new information, future events 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 Securities and Exchange Commission on
Reconciliation of non-GAAP Measures
(UNAUDITED)
Williams Pipeline Partners L.P.
Distributable Cash Flow per LP Unit Reconciliation
2008
Amounts in
thousands, except
per-unit amounts 1Q 2Q 3Q 4Q YTD
Net Income 12,855 11,867 13,863 13,295 51,880
Equity in earnings - Northwest (13,355) (12,490) (14,433) (14,102) (54,380)
Reimbursements from
Williams from
omnibus agreement 371 497 503 503 1,874
--- --- --- --- -----
Distributable cash
flow excluding
equity investments (129) (126) (67) (304) (626)
Plus: Northwest's
cash distributions to WMZ 13,943 10,850 10,850 11,200 46,843
------ ------ ------ ------ ------
Distributable cash
flow attributable
to partnership 13,814 10,724 10,783 10,896 46,217
Distributable cash flow
attributable to
partnership allocated to GP 736 214 216 218 1,384
--- --- --- --- -----
Distributable cash flow
attributable to
partnership allocated to LP 13,078 10,510 10,567 10,678 44,833
Weighted Average
number of LP units
outstanding 33,563 33,564 33,564 33,565 33,564
Distributable cash flow
attributable to partnership per weighted average
limited partner unit 0.3897 0.3131 0.3148 0.3181 1.3357
SOURCE Williams Pipeline Partners L.P.
