Thursday, May 05, 2011
Tulsa World, Okla.
by Rod Walton
Williams Cos. Inc. and Williams Partners LP both exceeded $300 million in profits for 2011's first quarter, the Tulsa natural gas, oil and natural gas liquids firms reported Wednesday.
Higher NGL margins sparked the strong returns for the three months ending March 31. Parent Williams tapped $321 million, or 54 cents per share, in net income while Williams Partners totaled $307 million, or 81 cents per unit, in profit.
"We're off to a good start this year, and we're expecting an even stronger performance for the remainder of 2011 and 2012," Alan Armstrong, president and chief executive officer, said in a statement. "We've increased our earnings guidance 11 percent for both years, as we expect strong NGL and olefin margins in our midstream businesses."
Williams Cos. net income was a dramatic increase over 2010's first quarter, when the company announced a $195 million net loss. Williams Partners' total was down slightly from the $322 million same time last year, but 33 percent higher on a per-unit basis, according to the release.
The traditionally natural gas-rich Tulsa company has upped its stake in oil and NGL plays in the past year due to higher prices and increased demand for ethane for use in petrochemical production. Williams has $4.8 billion in growth capital projects planned through 2012.
"We continue to invest in and bring more value-adding natural gas and NGL infrastructure projects online," Armstrong added. "With abundant supplies in the new shale plays and growing demand from natural gas-fired electrical generation, the need for natural gas infrastructure will continue to grow."
Williams Cos. is focused on infrastructure, exploration and production although a new subsidiary, WPX Energy Inc., will spin off the E&P segment in the near future. Williams Partners handles natural gas and NGL gathering, transport and processing assets.
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