Williams Partners’ revenue
Williams Partners’ (WPZ) reported its 2Q15 earnings on July 29. In this series, we’ll look at its 2Q15 operating results. We’ll compare actual numbers with analysts’ estimates and individual segment contributions to 2Q15 operating performance. We’ll also look at the outlook for the rest of 2015 as well as analysts’ recommendations. Let’s start with an analysis of Williams Partners’ 2Q15 operating results.
Williams Partners’ 2Q15 pro forma revenue rose to $1.830 billion from $1.616 billion in the second quarter of the previous year. This was a YoY (year-over-year) rise of ~13.24%. The rise in revenue was mainly driven by the rise in Williams Partners’ fee-based revenue. Excluding the impact of the Access Midstream merger, the partnership’s fee-based revenue rose 17% YoY (year-over-year).
Williams Partners’ adjusted EBITDA
Williams Partners’ 2Q15 adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) rose to $1,008 million in 2Q15 from $717 million in 2Q14. This was a YoY rise of 40.50%. The rise in the partnership’s EBITDA was mainly driven by a $345 million contribution from the Access Midstream segment, $119 million from the Atlantic Gulf segment, and $16 million from the Northeast G&P segment. The rise in the adjusted EBITDA was offset by the fall of $135 million and $55 million at WPZ’s NGL & Petchem Services and West segments, respectively. We’ll analyze the segment wise operating performance later.
Williams Partners’ distributions
Williams Partners declared a distribution of $0.85 per unit for 2Q15. This represents an ~42.86% YoY rise over 2Q14. However, Williams Partners’ distributions remained flat compared to the previous quarter. Its 2Q15 distributable cash flow was up 39% compared to 2Q14. The rise helped improve its low distribution coverage ratio. Williams’ Partners coverage ratio improved from 0.89x to 0.97x between 2Q14 and 2Q15.