Williams Partners (WPZ) Misses on Q2 Earnings and Revenues - Analyst Blog
On Jul 29, 2015, Williams Partners L.P. WPZ reported weaker-than-expected second quarter results. Units of Williams have fallen over 4% since the earnings miss.
The partnership announced earnings of 14 cents per limited-partner unit, missing the Zacks Consensus Estimate of 21 cents. However, the bottom line improved from the year-ago profit level of 11 cents.
Williams Partners LP - Earnings Surprise | FindTheBest
Quarterly total revenue increased 13.2% year over year to $1,830 million from $1,616 million. The top line, however, came in below the Zacks Consensus Estimate of $1,905 million.
Williams Partners' distributable cash flow (DCF), attributable to partnership operations in the reported quarter, was $701 million against $504 million in the year-ago quarter. On Jul 20, the partnership announced a regular quarterly cash distribution of 85 cents per unit.
Segment Performance
During the first quarter, Williams Partners merged with Access Midstream Partners, L.P. (formerly ACMP) to form a master limited partnership (MLP). Consolidated adjusted segment profit was $1,008 million, up 40.6% from the year-ago level of $717 million.
Access Midstream: The segment reported profits of $345 million in the second quarter. Profits were driven by higher fee-based volumes in the Utica and Haynesville areas and higher contribution from the Utica East Ohio Midstream joint venture.
Atlantic-Gulf: The segment reported profits of $389 million compared with $270 million in the year-ago quarter. The upside was primarily backed by higher transportation fee revenues from Gulfstar One and Transco expansion projects, which were partially offset by lower NGL margins.
Northeast G&P: The segment reported profits of $92 million compared with $76 million in second-quarter 2014. The improved results are primarily due higher volumes and improved equity earnings from Ohio Valley Midstream.
West: Segmental profit was $150 million compared with $205 million a year ago. Lower NGL margins due to low NGL prices were responsible for the decline.
NGL & Petchem Services: The segment reported profits of $33 million compared with $168 million in the year-earlier quarter. Lower commodity-related margins at the partnership’s Canadian operations and higher operating expenses due to ramp-up activities at the Geismar plant hampered the results.
Guidance
Williams Partners has discontinued providing guidance owing to its merger agreement with Williams Companies, Inc. WMB.
Zacks Rank
Currently, Williams Partners carries a Zacks Rank #5 (Strong Sell).
Better-ranked players from the broader energy space include Linn Energy, LLC LINE CVR Refining, LP CVRR. Both these stocks sport a Zacks Rank #1 (Strong Buy).
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WILLIAMS COS (WMB): Free Stock Analysis Report
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