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 October 28, 2015 - 4:15 PM EDT
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Williams Partners Reports Third-Quarter 2015 Financial Results

  • 3Q 2015 Adjusted EBITDA is $1.1 Billion, Up 21% Primarily on Major Fee-Based Projects
  • Record Distributable Cash Flow of $754 Million – More than Double 3Q 2014 – Coverage Ratio of 1.04x
  • Fee-Based Revenues Up $204 Million or 18% on Contributions from New Major Projects, Access Midstream Growth

Williams Partners L.P. (NYSE: WPZ) today reported third quarter 2015 adjusted EBITDA of $1.1 billion, a $193 million, or 21 percent, increase from third quarter 2014.

The increase in adjusted EBITDA for third quarter 2015 is due to increases of $143 million from the Atlantic-Gulf segment, $63 million from NGL & Petchem Services, $29 million from Access Midstream and $19 million from the Northeast G&P segment. Partially offsetting these increases was a $63 million decrease in the West due to lower NGL margins.

   
Summary Financial Information 3Q YTD
Amounts in millions, except coverage ratio amounts. All income amounts attributable to Williams Partners L.P. 2015   2014   2015   2014
(Unaudited)
 
Williams Partners
Adjusted EBITDA (1) $ 1,100 $ 907 $ 3,025 $ 2,392
DCF attributable to partnership operations (1) $ 754 $ 367 $ 2,101 $ 1,453
Cash distribution coverage ratio (1) (2) 1.04x .63x .97x .84x
Net income (loss) (3) ($194 ) $ 233 $ 195 $ 806
 
(1) Adjusted EBITDA, distributable cash flow (DCF) and cash distribution coverage ratio are non-GAAP measures. Financial information for periods prior to July 1, 2014 represents Williams Partners L.P. on a basis that is prior to the merger with Access Midstream Partners, L.P. DCF and cash distribution coverage ratio for the 2014 periods reflect amounts previously reported for Williams Partners L.P. for those periods prior to the merger. Reconciliations to the most relevant measures included in GAAP are attached to this news release.
 
(2) Cash distribution coverage ratios for the third quarter and year-to-date 2015 periods exclude the benefit of $209 million of IDR waivers associated with the WPZ merger termination fee. The 2015 cash distribution coverage ratios, including the benefit of the $209 million IDR waiver during third quarter 2015, are 1.47x and 1.07x for the third quarter and year-to-date 2015 periods, respectively.
 
(3) Amounts reported for the 2015 periods reflect impairment charges totaling $477 million associated with certain equity-method investments previously recorded at fair value in conjunction with the Access merger.
 

The increase in adjusted EBITDA in third quarter 2015 as described above by segment was driven by $204 million, or 18 percent, higher fee-based revenues and minimum volume commitments compared with third quarter 2014. Olefins margins increased $58 million reflecting production at the expanded Geismar plant in third quarter 2015 at multi-year low per unit ethylene margins, partially offset by lower margins from our Canadian operations. Additionally, the proportional EBITDA from non-consolidated equity investments increased $52 million for third quarter 2015 versus third quarter 2014, due primarily to Discovery’s Keathley Canyon Connector project in the Atlantic-Gulf operating area.

Partially offsetting these increases were $68 million in lower NGL margins due primarily to NGL prices that remain at a 10-year low, as well as $51 million higher operating and general and administrative expenses versus third quarter 2014 primarily reflecting higher costs associated with our growing businesses.

Year-to-date 2015, Williams Partners reported adjusted EBITDA of $3.025 billion, a $633 million, or 26 percent, increase from the same period last year. The year-to-date increase in adjusted EBITDA was primarily driven by contributions from the Access Midstream merger for periods following July 1, 2014, as well as fee-based revenue growth in other operating areas.

Williams Partners reported unaudited third quarter 2015 net loss attributable to controlling interests of $194 million compared with income of $233 million in third quarter 2014. The unfavorable change was driven by $477 million of impairments in 2015 associated with certain equity-method investments, as well as declines in NGL margins and higher operating, depreciation and interest expenses. The impairment charges primarily relate to our investment in the Delaware basin gas gathering system, which were driven by an increase in the discount rate utilized in our estimation of the fair value of the investment at September 30, 2015. Higher fee-based revenues and increased olefins margins partially offset these unfavorable changes.

Year-to-date net income was $195 million, compared with $806 million year-to-date 2014. The year-to-date decrease in net income was driven primarily by the same factors described above, as well as higher general and administrative costs.

Distributable Cash Flow & Distributions

For third quarter 2015, Williams Partners generated $754 million in distributable cash flow (DCF) attributable to partnership operations, compared with $367 million in DCF attributable to partnership operations in third quarter 2014. The $387 million increase in DCF for the quarter was driven by the Access Midstream acquisition and other increases in adjusted EBITDA, partially offset by higher interest expense. DCF for 2014 reflects pre-merger Williams Partners.

Year-to-date 2015, Williams Partners generated $2.1 billion in DCF attributable to partnership operations, compared with $1.45 billion in DCF attributable to partnership operations for the same period last year. The $648 million increase in DCF for the nine-month period ended Sept. 30 was driven by the Access Midstream acquisition and other increases in adjusted EBITDA, partially offset by higher interest expense.

CEO Perspective

Alan Armstrong, chief executive officer of Williams Partners’ general partner, made the following comments:

“Our strong third quarter results underscore the effectiveness of our strategy to connect the best natural gas supplies to the best markets with fee-based infrastructure, which accounted for more than 90 percent of our gross margin. Williams Partners achieved record distributable cash flow and delivered adjusted EBITDA growth across four of the partnership’s five operating areas.

“In September, we completed Transco’s Virginia Southside Expansion and we’re on track to place into full service the Leidy Southeast Expansion by the end of the year, helping relieve supply bottlenecks in the Northeast and creating more fee-based revenue. Supply development in the Northeast will continue to be hampered until constraints are addressed. Fortunately, Williams Partners and other industry participants are hard at work implementing projects that will solve this problem.

“We recognize the fundamental pressures impacting our direct commodity margins and volume growth on our gathering and processing systems. However, our unique position and backlog of fully contracted, demand-driven projects will drive our continued operating cash flow growth.”

Business Segment Performance

Williams Partners   Adjusted EBITDA
Amounts in millions 3Q 2015   3Q 2014   YTD 2015   YTD 2014
Access Midstream (1) $ 351 $ 322 $ 1,010 $ 322
Atlantic-Gulf 414 271 1,138 807
NGL & Petchem Services (2) 85 22 125 426
Northeast G&P 87 68 279 198
West 161 224 473 641
Other   2   -   -   (2 )
Total $ 1,100 $ 907 $ 3,025 $ 2,392  
 
Schedules reconciling adjusted EBITDA to modified EBITDA and net income are attached to this news release.
 
(1) First and second quarter 2014 represents pre-merger Williams Partners and excludes Access Midstream.
 
(2) The first and second quarters of 2014 include $173 million and $138 million, respectively, in assumed business interruption insurance proceeds related to the 2013 incident at the Geismar plant.
 

Access Midstream Segment

Access Midstream provides gathering, treating, and compression services to producers under long term, fee-based contracts in Pennsylvania, West Virginia, Ohio, Louisiana, Texas, Arkansas, Oklahoma and Kansas. Access Midstream also includes a non-operated 50 percent interest in the Delaware Basin gas gathering system in the Mid-Continent region and a 62 percent interest in Utica East Ohio Midstream LLC, a joint project to develop infrastructure for the gathering, processing and fractionation of natural gas and NGLs in the Utica Shale play in Eastern Ohio. Additionally, Access Midstream operates 100 percent of and owns an approximate average 45 percent interest in 11 natural gas gathering systems in the Marcellus Shale region.

Access Midstream reported adjusted EBITDA of $351 million for third quarter 2015, compared with $322 million of adjusted EBITDA in third quarter 2014. The increase in adjusted EBITDA between years was driven by higher fee-based volumes, minimum volume commitments and the increased ownership interest in the Utica East Ohio Midstream joint venture.

Year-to-date 2015, Access Midstream segment reported adjusted EBITDA of $1.01 billion, compared with $322 million previously reported for the same period last year. Williams Partners’ results for first and second quarter 2014 are on a pre-merger basis and exclude Access Midstream.

Atlantic-Gulf Segment

Atlantic-Gulf includes the Transco interstate gas pipeline and a 41-percent interest in the Constitution interstate gas pipeline development project, which Williams Partners consolidates. The segment also includes the partnership’s significant natural gas gathering and processing and crude production handling and transportation in the Gulf Coast region. These operations include a 51-percent interest in Gulfstar One, a 50-percent interest in Gulfstream and a 60-percent interest in the Discovery pipeline and processing system.

Atlantic-Gulf reported adjusted EBITDA of $414 million for third quarter 2015, compared with $271 million for third quarter 2014. The increase was due primarily to $113 million higher fee-based revenues from both Gulfstar One and Transco expansion projects, as well as $35 million higher proportional adjusted EBITDA primarily from Discovery driven by the Keathley Canyon Connector project, partially offset by lower NGL margins.

Year-to-date 2015, Atlantic-Gulf reported adjusted EBITDA of $1.14 billion, compared with $807 million for the same period last year. The year-to-date results were driven primarily by the same factors that drove the quarterly results.

NGL & Petchem Services Segment

NGL & Petchem Services includes an 88.5 percent interest in an olefins production facility in Geismar, La., along with a refinery grade propylene splitter and pipelines in the Gulf Coast region. This segment also includes midstream operations in Alberta, Canada, including an oil sands offgas processing plant near Fort McMurray, 260 miles of NGL and olefins pipelines and an NGL/olefins fractionation facility and butylene/butane splitter facility at Redwater. This segment also includes the partnership’s energy commodities marketing business, an NGL fractionator and storage facilities near Conway, Kan. and a 50-percent interest in Overland Pass Pipeline.

NGL & Petchem Services reported adjusted EBITDA of $85 million for third quarter 2015, compared with $22 million for third quarter 2014. Geismar operated at expected production levels and contributed approximately $71 million of olefins margins for third quarter 2015, partially offset by $19 million in lower commodity-related margins at the Canadian operations.

Year-to-date 2015, NGL & Petchem Services reported adjusted EBITDA of $125 million, compared with $426 million for the same period last year. Year-to-date 2014 results include approximately $311 million in assumed business interruption insurance proceeds related to the 2013 incident at the Geismar plant. In addition to the absence of the assumed business interruption insurance proceeds, the year-to-date results were also driven by the same factors that drove the quarterly results.

Northeast G&P Segment

Northeast G&P includes the partnership’s midstream gathering and processing business in the Marcellus and Utica shale regions, including Susquehanna Supply Hub and Ohio Valley Midstream, as well as its 69-percent equity investment in Laurel Mountain Midstream, and its 58.4-percent equity investment in Caiman Energy II. Caiman Energy II owns a 50 percent interest in Blue Racer Midstream.

Northeast G&P reported adjusted EBITDA of $87 million for third quarter 2015, compared with $68 million for third quarter 2014. The improved results are due primarily to a $25 million increase in fee-based revenues driven primarily by higher volumes and incremental new services at Ohio Valley Midstream, as well as $11 million higher proportional EBITDA from equity investments. These gains were partially offset by $15 million in higher operating expenses associated with growth and operational repairs in the Northeast.

Year-to-date 2015, Northeast G&P reported adjusted EBITDA of $279 million, compared with $198 million for the same period last year. The year-to-date results were driven primarily by the same factors that drove the quarterly results.

West Segment

West includes the partnership’s Northwest Pipeline interstate gas pipeline system, as well as gathering, processing and treating operations in Wyoming, the Piceance Basin and the Four Corners area.

West reported adjusted EBITDA of $161 million for third quarter 2015, compared with $224 million for third quarter 2014. Lower adjusted EBITDA for the quarter was due primarily to $52 million lower NGL margins from lower NGL prices that remain at 10-year lows.

Year-to-date 2015, West reported adjusted EBITDA of $473 million, compared with $641 million for the same period last year. Lower adjusted EBITDA for the year-to-date period was due primarily to nearly $123 million lower NGL margins and $37 million higher operating and maintenance expenses driven by the addition of the Niobrara operations from the Access Midstream merger and various increases in other operating expenses.

Other

Williams Partners recently announced a regular quarterly cash distribution of $0.85 per unit for its common unitholders. As announced on Sept. 28 in connection with the proposed business combination transaction between Williams and Energy Transfer Equity, L.P., Williams and Williams Partners withdrew previous financial guidance and adopted a policy of no longer providing financial guidance.

Third-Quarter Materials to be Posted Shortly, Live Webcast Scheduled for Tomorrow

Williams Partners’ third-quarter 2015 financial results will be posted shortly at www.williams.com. The information will include the data book and analyst package.

Williams Partners and Williams will jointly host a conference call and live webcast on Thursday, Oct. 29, at 9 a.m. EDT. A limited number of phone lines will be available at (800) 505-9568. International callers should dial (416) 505-9568. A link to the webcast, as well as replays of the webcast in both streaming and downloadable podcast formats, will be available following the event at www.williams.com.

Form 10-Q

The partnership plans to file its third-quarter 2015 Form 10-Q with the Securities and Exchange Commission this week. Once filed, the document will be available on both the SEC and Williams Partners websites.

Definitions of Non-GAAP Financial Measures

This news release may include certain financial measures – adjusted EBITDA, distributable cash flow and cash distribution coverage ratio – that are non-GAAP financial measures as defined under the rules of the Securities and Exchange Commission.

Our segment performance measure, modified EBITDA, is defined as net income (loss) before income tax expense, net interest expense, equity earnings from equity-method investments, other net investing income, impairments of equity investments, depreciation and amortization expense, and accretion expense associated with asset retirement obligations for nonregulated operations. We also add our proportional ownership share (based on ownership interest) of modified EBITDA of equity investments.

Adjusted EBITDA further excludes items of income or loss that we characterize as unrepresentative of our ongoing operations and may include assumed business interruption insurance related to the Geismar plant. Management believes these measures provide investors meaningful insight into results from ongoing operations.

We define distributable cash flow as adjusted EBITDA less maintenance capital expenditures, cash portion of interest expense, income attributable to noncontrolling interests and cash income taxes, plus WPZ restricted stock unit non-cash compensation expense and certain other adjustments that management believes affects the comparability of results. Adjustments for maintenance capital expenditures and cash portion of interest expense include our proportionate share of these items of our equity-method investments.

We also calculate the ratio of distributable cash flow 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 news 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 EBITDA 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.

About Williams Partners

Williams Partners (NYSE: WPZ) is an industry-leading, large-cap natural gas infrastructure master limited partnership with a strong growth outlook and major positions in key U.S. supply basins and also in Canada. Williams Partners has operations across the natural gas value chain from gathering, processing and interstate transportation of natural gas and natural gas liquids to petchem production of ethylene, propylene and other olefins. Williams Partners owns and operates more than 33,000 miles of pipelines system wide – including the nation’s largest volume and fastest growing pipeline – providing natural gas for clean-power generation, heating and industrial use. Williams Partners’ operations touch approximately 30 percent of U.S. natural gas. Tulsa, Okla.-based Williams (NYSE: WMB), a premier provider of large-scale North American natural gas infrastructure, owns 60 percent of Williams Partners, including all of the 2 percent general-partner interest. www.williams.com

Forward-Looking Statements

The reports, filings, and other public announcements of Williams Partners L.P. (WPZ) 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. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995.

Forward-looking statements can be identified 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,” “assumes,” “guidance,” “outlook,” “in service date” 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:

  • The status, expected timing and expected outcome of the proposed ETC Merger;
  • Events which may occur subsequent to the proposed ETC Merger including events which directly impact our business;
  • Expected levels of cash distributions with respect to general partner interests, incentive distribution rights and limited partner interests;
  • Our and our affiliates’ future credit ratings;
  • 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;
  • Seasonality of certain business components;
  • Natural gas, natural gas liquids, and olefins prices, supply, and demand; and
  • Demand for our services.

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 document. 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:

  • The timing and likelihood of completion of the proposed ETC Merger, including the satisfaction of conditions to the completion of the proposed ETC Merger;
  • Energy Transfer’s plans for us, as well as the other master limited partnerships it currently controls, following the completion of the proposed ETC Merger;
  • Disruption from the proposed ETC Merger making it more difficult to maintain business and operational relationships;
  • Whether we have sufficient cash from operations to enable us to pay current and expected levels of cash distributions, if any, following the establishment of cash reserves and payment of fees and expenses, including payments to our general partner;
  • Availability of supplies, market demand and volatility of prices;
  • Inflation, interest rates, fluctuation in foreign exchange rates and general economic conditions (including future disruptions and volatility in the global credit markets and the impact of these events on customers and suppliers);
  • The strength and financial resources of our competitors and the effects of competition;
  • Whether we are able to successfully identify, evaluate and execute investment opportunities;
  • Our ability to acquire new businesses and assets and successfully integrate those operations and assets into our existing businesses as well as successfully expand our facilities;
  • Development of alternative energy sources;
  • The impact of operational and developmental hazards and unforeseen interruptions;
  • Costs of, changes in, or the results of laws, government regulations (including safety and environmental regulations), environmental liabilities, litigation, and rate proceedings;
  • Williams’ costs and funding obligations for defined benefit pension plans and other postretirement benefit plans;
  • 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 risk of our customers and counterparties;
  • Risks related to financing, including restrictions stemming from debt agreements, future changes in credit ratings as determined by nationally-recognized credit rating agencies and the availability and cost of capital;
  • The amount of cash distributions from and capital requirements of our investments and joint ventures in which we participate;
  • Risks associated with weather and natural phenomena, including climate conditions;
  • Acts of terrorism, including cybersecurity threats and related disruptions; 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 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 and referred to below may cause our intentions to change from those statements of intention set forth in this document. 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.

Because forward-looking statements involve risks and uncertainties, we caution that there are important factors, in addition to those listed above, that may cause actual results to differ materially from those contained in the forward-looking statements. For a detailed discussion of those factors, see Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K filed with the SEC on February 25, 2015 and in Part II, Item 1A. Risk Factors in our Quarterly Report on Form 10-Q available from our office or from our website at www.williams.com.

                     
Williams Partners L.P.
Reconciliation of Non-GAAP Measures

(UNAUDITED)

 
2014   2015  
(Dollars in millions, except coverage ratios)     1st Qtr   2nd Qtr   3rd Qtr   4th Qtr   Year 1st Qtr   2nd Qtr   3rd Qtr   Year
                                         
Williams Partners L.P.

Reconciliation of GAAP "Net Income" to Non-GAAP "Modified EBITDA," "Adjusted EBITDA," and "Distributable cash flow”

 
Net income $ 352 $ 223 $ 247 $ 462 $ 1,284 $ 112 $ 332 $ (167 ) $ 277
Provision (benefit) for income taxes 8 5 10 6 29 3 1 4
Interest expense 106 126 154 176 562 192 203 205 600
Equity (earnings) losses (23 ) (32 ) (85 ) (88 ) (228 ) (51 ) (93 ) (92 ) (236 )
Impairment of equity-method investments 461 461
Other investing (income) loss (1 ) (1 ) (2 ) (1 ) (1 )
Proportional Modified EBITDA of equity-method investments 54 62 150 165 431 136 183 185 504
Depreciation and amortization expenses 208 207 364 372 1,151 419 419 423 1,261
Accretion for asset retirement obligations associated with nonregulated operations   3       6       3       5       17         7       9       5       21  
Modified EBITDA 708 596 843 1,097 3,244 817 1,053 1,021 2,891
 
Adjustments
Estimated minimum volume commitments 47 (114 ) (67 ) 55 55 65 175
Acquisition-related expenses 2 13 1 16
Merger and transition related expenses 11 30 41 32 14 2 48
Share of impairment at equity-method investment 8 1 17 26
Geismar Incident adjustment for insurance and timing 54 96 (71 ) 79 (126 ) (126 )
Loss related to Geismar Incident 5 5 10 1 1 2
Impairment of certain assets 17 35 52 3 24 2 29
Contingency loss (gain), net of legal costs (143 ) (143 )
Net gain related to partial acreage dedication release (12 ) (12 )
Loss related to compressor station fire 6 6
Loss (recovery) related to Opal incident 6 2 8 1 (8 ) (7 )
Loss on sale of equipment 7 7
Gain on extinguishment of debt (14 ) (14 )
Proposed WMB/WPZ merger expenses                                           1       1  
Total EBITDA adjustments   60       121       64       (248 )     (3 )   100       (45 )     79       134  
Adjusted EBITDA $ 768     $ 717     $ 907     $ 849     $ 3,241   917 1,008 1,100 3,025
 
Maintenance capital expenditures (1) (54 ) (80 ) (114 ) (248 )
Interest expense (cash portion) (2) (204 ) (207 ) (219 ) (630 )
Cash taxes (1 ) (1 )
Income attributable to noncontrolling interests (23 ) (32 ) (27 ) (82 )
WPZ restricted stock unit non-cash compensation 7 6 7 20
Plymouth incident adjustment   4       6       7       17  
 
Distributable cash flow attributable to Partnership Operations   646       701       754       2,101  
 
Total cash distributed (3) $ 725 $ 723 $ 723 $ 2,171
 
Coverage ratios:
Distributable cash flow attributable to partnership operations divided by Total cash distributed   0.89       0.97       1.04       0.97  
 
Net income divided by Total cash distributed   0.15       0.46       (0.23 )     0.13  
Notes: (1) Includes proportionate share of maintenance capital expenditures of equity investments.
(2) Includes proportionate share of interest expense of equity investments.

(3) Cash distributions for the third quarter and year-to-date periods have been increased by $209 million in order to exclude the impact of the IDR waiver associated with the WPZ merger termination fee from the determination of coverage ratios.

                     
Williams Partners L.P.
Reconciliation of Non-GAAP “Modified EBITDA” to Non-GAAP “Adjusted EBITDA”
(UNAUDITED)
2014   2015  
(Dollars in millions)     1st Qtr   2nd Qtr   3rd Qtr   4th Qtr   Year 1st Qtr   2nd Qtr   3rd Qtr   Year
                                             
Modified EBITDA:
Access Midstream $ $ (2 ) $ 254 $ 390 $ 642 $ 228 $ 273 $ 268 $ 769
Northeast G&P 48 59 80 208 395 90 70 84 244
Atlantic-Gulf 266 270 271 258 1,065 335 389 414 1,138
West 212 199 224 188 823 161 150 169 480
NGL & Petchem Services 182 72 17 53 324 6 158 85 249
Other       (2 )     (3 )           (5 )   (3 )     13       1       11  
Total Modified EBITDA $ 708   $ 596     $ 843     $ 1,097     $ 3,244   $ 817     $ 1,053     $ 1,021     $ 2,891  
 
Adjustments:

Access Midstream

ACMP Acquisition-related expenses $ $ 2 $ 13 $ 1 $ 16 $
ACMP Merger and transition costs 8 29 37 30 14 2 46
Loss on sale of equipment 7 7

 

Impairment of certain assets 12 12 1 3 4
Estimated minimum volume commitments 47 (114 ) (67 ) 55 55 65 175
Share of impairment at equity-method investment                                         16       16  
Total Access Midstream adjustments 2 68 (65 ) 5 86 72 83 241

Northeast G&P

Share of impairment at equity-method investment 8 1 1

 

 

10

Contingency gain, net of legal costs (143 ) (143 )

 

Loss related to compressor station fire 6 6
Net gain related to partial acreage dedication release (12 ) (12 )
Impairment of certain assets       17             13       30     2       21       2       25  
Total Northeast G&P adjustments 6 17 (12 ) (130 ) (119 ) 10 22 3 35

Atlantic-Gulf

Impairment of certain assets                   10       10                    

 

 
Total Atlantic-Gulf adjustments 10 10

West

Loss (recovery) related to Opal incident       6             2       8     1             (8 )     (7 )
Total West adjustments 6 2 8 1 (8 ) (7 )

NGL & Petchem Services

Loss related to Geismar Incident 5 5 10 1 1 2
Geismar Incident adjustment for insurance and timing   54     96             (71 )     79           (126 )           (126 )
Total NGL & Petchem Services adjustments 54 96 5 (66 ) 89 1 (125 ) (124 )

Other

ACMP Merger-related expenses 3 1 4 2 2
Proposed WMB/WPZ Merger expenses 1 1
Gain on extinguishment of debt                                   (14 )           (14 )
Total Other adjustments 3 1 4 2 (14 ) 1 (11 )
                               
Total Adjustments $ 60   $ 121     $ 64     $ (248 )   $ (3 ) $ 100     $ (45 )   $ 79     $ 134  
 
Adjusted EBITDA:
Access Midstream $ $ $ 322 $ 325 $ 647 $ 314 $ 345 $ 351 $ 1,010
Northeast G&P 54 76 68 78 276 100 92 87 279
Atlantic-Gulf 266 270 271 268 1,075 335 389 414 1,138
West 212 205 224 190 831 162 150 161 473
NGL & Petchem Services 236 168 22 (13 ) 413 7 33 85 125
Other       (2 )           1       (1 )   (1 )     (1 )     2        
Total Adjusted EBITDA $ 768   $ 717     $ 907     $ 849     $ 3,241   $ 917     $ 1,008     $ 1,100     $ 3,025  

Williams Partners L.P.
Media Contact:
Tom Droege, 918-573-4034
or
Investor Contacts:
John Porter, 918-573-0797
or
Brett Krieg, 918-573-4614


Source: Business Wire (October 28, 2015 - 4:15 PM EDT)

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