The first-quarter 2008 net income is based on a full first quarter. The year-ago quarter’s net income per-unit amount is based on prorated net income for the period from the date the partnership concluded its initial public offering on January 24, 2008, through March 31, 2008.
Higher firm transportation revenue under long-term contracts and higher storage revenue, partly counterbalanced by higher interest expense, contributed to a strong improvement in Northwest Pipeline GP’s first-quarter operating results. Those results are a key part of the partnership’s earnings from its 35% equity interest in Northwest pipeline.
Distributable cash flow in first-quarter 2009 for Williams Pipeline Partners’ limited-partner unitholders was $11.0 million, or $0.33 per weighted average limited-partner unit. The first-quarter of 2008 was $13.1 million for total distributable cash flow, or $0.39 per weighted average limited-partner unit. The 2008 amounts were for the partial first-quarter 2008. Also, the first-quarter 2008 amounts benefited from a further cash distribution to the partnership from Northwest Pipeline.
Consequent to the close of the first quarter, Williams Pipeline Partners declared that it had increased its regular cash distribution to unitholders to $0.325 per unit.
The new distribution amount is a 1.6% raise over the fourth-quarter 2008 distribution of $0.32 per unit and an 8.3% increase over the partnership’s initial prorated cash distribution to unitholders of $0.2242 per unit for first-quarter 2008.
Liquidity and Debt Maturities
As of March 31, 2009 Williams Pipeline Partners had $6.9 million of cash and no outstanding debt.
Northwest Pipeline on March 31, 2009 had about $98.1 million of available cash through demand notes with Williams and $381 million of available capacity under Williams’ credit facility. Northwest Pipeline has no major debt maturities until 2016.
