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Williams Pipeline Partners L.P. Reports Operating Results (10-Q)

July 29, 2010 | About:
10qk

10qk

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Williams Pipeline Partners L.P. (WMZ) filed Quarterly Report for the period ended 2010-06-30.

Williams Pipeline Partners L.p. has a market cap of $1.14 billion; its shares were traded at around $34.08 with a P/E ratio of 23.7. The dividend yield of Williams Pipeline Partners L.p. stocks is 4%.

Highlight of Business Operations:

Northwests operating revenues decreased $5.2 million, or 5 percent. This decrease is primarily attributed to i) lower Parachute Lateral lease revenues of $2.6 million resulting from the termination of the Parachute Lateral lease on August 1, 2009, ii) lower other revenues of $1.0 million resulting from the absence of sublease income attributed to the restructuring of the Salt Lake City headquarters building lease, iii) lower revenues of $0.9 million resulting from the termination of the Everett Delta Lateral lease on November 9, 2009, and iv) lower firm transportation commodity revenues of $0.7 million due primarily to mild weather in Northwests market area and lower off-system deliveries on the southern end of the system. The revenue decreases from the Parachute and Everett Delta laterals as well as the reduction in building sublease revenues is substantially offset by decreases in lease expenses as described below.

Operating expenses decreased $3.6 million, or 6 percent, due primarily to i) the termination of the Parachute and Everett Delta leases, resulting in lower lease expense of $3.4 million and ii) the restructuring of the Salt Lake City headquarters building lease resulting in lower building lease expense of $1.2 million. These decreases were partially offset by higher property taxes of $1.0 million primarily attributed to a $1.1 million reduction in 2009 for lower than anticipated mill levies.

Northwests operating revenues decreased $10.6 million, or 5 percent. This decrease is primarily attributed to i) lower Parachute Lateral lease revenues of $5.2 million resulting from the termination of the Parachute Lateral lease on August 1, 2009, ii) lower other revenues of $2.0 million resulting from the absence of sublease income attributed to the restructuring of the Salt Lake City headquarters building lease, iii) lower firm transportation commodity revenues of $2.0 million due primarily to mild weather in Northwests market area and lower off-system deliveries on the southern end of the system, and iv) lower revenues of $1.4 million resulting from the termination of the Everett Delta Lateral lease on November 9, 2009. The revenue decreases from the Parachute and Everett Delta laterals as well as the reduction in building sublease revenues is substantially offset by decreases in lease expenses as described below.

Operating expenses decreased $6.2 million, or 5 percent, due primarily to i) the termination of the Parachute and Everett Delta leases, resulting in lower lease expense of $6.4 million and ii) the restructuring of the Salt Lake City headquarters building lease resulting in lower building lease expense of $2.5 million. These decreases were partially offset by higher property taxes of $2.4 million primarily attributed to a $2.6 million reduction in 2009 for lower than anticipated mill levies.

Northwest anticipates 2010 capital expenditures will be between $120 million and $140 million which includes $60 million to $80 million for maintenance capital and $95 million to $115 million considered nondiscretionary due to legal, regulatory and/or contractual requirements. Northwests property, plant and equipment additions were $30.2 million ($21.7 million for maintenance and $8.5 million for expansion) and $47.8 million ($18.4 million for maintenance and $29.4 million for expansion) for the six months ended June 30, 2010 and 2009, respectively.

In January 2010, we received cash distributions of $12.6 million from Northwest. In February 2010, Northwest made a cash distribution of $39.3 million to its partners to settle the outstanding advances to Williams as of January 31, 2010, of which our share was $13.7 million. In July 2010, Northwest declared a cash distribution of $39.5 million to its partners of which our share will be $13.8 million to be paid on July 30, 2010.

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