OREANDA-NEWS.    Distributable Cash Flow (DCF) From Partnership's Operations Is USD 504 Million, Up 30% vs. Year-Ago
Adjusted Segment Profit + DD&A is USD 719 Million, Up 16% vs. Year-Ago
2Q 2014 Net Income Is USD 232 Million or USD 0.11 per Common Unit
Geismar Rebuild & Expansion Substantially Complete; Safety-System Upgrades Pushing Startup to 4Q 2014, Lowering 2014 Financial Guidance as a Result
Continue to Expect More Than 68% Growth in DCF for 2016 vs. 2013
Partnership Reaffirms Guidance for LP per Unit Distribution Growth of Approximately 6% Annually at Mid-Point 2014, 2015 and 4.5% at Mid-Point 2016, While Growing Cash Distribution Coverage
Williams Partners' Conflicts Committee Evaluating Proposed Merger with Access Midstream Partners

Williams Partners L.P. (NYSE: WPZ) today announced USD 504 million in distributable cash flow (DCF) attributable to partnership operations in second-quarter 2014, compared with USD 387 million in DCF attributable to partnership operations in second-quarter 2013.

The USD 117 million increase in DCF for the quarter was driven by USD 46 million, or 7 percent, growth in fee-based revenues compared with second-quarter 2013, as well as USD 52 million in higher Geismar results. The Geismar plant remained off-line for the quarter; however, assumed business interruption insurance proceeds for the second quarter totaled USD 138 million and were included in the calculation of DCF. Additionally, second-quarter 2014 DCF was favorably affected by USD 23 million in DCF from the Canadian asset dropdown in 2014.

The partnership reported year-to-date DCF of USD 1.086 billion, compared with USD 884 million year-to-date 2013. The USD 202 million increase in year-to-date DCF was driven by USD 109 million, or 8 percent, growth in fee-based revenues compared with year-to-date 2013, as well as USD 113 million in higher Geismar results, which include the favorable impacts of assumed business interruption insurance.

For second-quarter 2014, Williams Partners generated USD 719 million in adjusted segment profit + DD&A, compared with USD 619 million in second-quarter 2013. The USD 100 million increase in second-quarter adjusted segment profit + DD&A was driven primarily by the same factors that drove the favorable increase in DCF detailed above.

Year-to-date adjusted segment profit + DD&A was USD 1.490 billion, compared with USD 1.303 billion year-to-date 2013. The USD 187 million increase in year-to-date adjusted segment profit + DD&A was driven primarily by the same factors that drove the favorable increase in year-to-date DCF detailed above.

Williams Partners reported unaudited second-quarter 2014 net income attributable to controlling interests of USD 232 million, or USD 0.11 per common limited-partner unit, compared with net income of USD 271 million, or USD 0.31 per common limited-partner unit for second-quarter 2013. Prior-period results throughout this release have been recast to include the results of the Canadian asset dropdown in February 2014.

The decrease in second-quarter net income was primarily due to the ongoing effects of the June 13, 2013 Geismar incident, which resulted in USD 90 million lower olefin margins partially offset by the receipt of USD 50 million of related insurance recoveries. Additionally, the 2014 period was unfavorably affected by USD 23 million lower natural gas liquids (NGL) margins and USD 21 million in higher net interest expense. These unfavorable effects were partially offset by a USD 46 million, or 7 percent, increase in fee-based revenues in second-quarter 2014 compared with the year-ago period.

Year-to-date through June 30, Williams Partners reported net income of USD 584 million, or USD 0.47 per common limited-partner unit, compared with USD 615 million, or USD 0.81 per common limited-partner unit, for the first half of 2013.

For the first half of 2014, fee-based revenues were up USD 109 million, or 8 percent, compared with the first half of 2013. However, the increase in fee-based revenues was more than offset by USD 61 million, or 23 percent, lower NGL margins and USD 26 million lower Geismar results including insurance. Additionally, the 2014 period was unfavorably affected by USD 31 million higher net interest expense and USD 28 million higher depreciation primarily associated with ongoing growth in our Northeast G&P segment.

Williams Partners recently announced that it increased its quarterly cash distribution to unitholders to USD 0.9165 per unit, a 6.3 percent increase over the prior year amount.