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Which Segment Drove Williams Partners’ 4Q17 Performance?

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Feb. 15 2018, Published 11:38 a.m. ET

Williams Partners’ Atlantic Gulf segment

Williams Partners’ (WPZ) Atlantic Gulf segment, which is mainly involved in natural gas transportation, gathering and processing, and offshore gathering, posted a 4.6% YoY decline in its adjusted EBITDA during the fourth quarter. The YoY decline, despite a strong contribution from the Transco expansion projects placed into service, was due to higher operating and maintenance expenses and a lower contribution from the Discovery joint venture.

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Williams Partners’ West segment

The West segment was Williams Partners’ best-performing segment in the fourth quarter. The segment, which is involved in diversified midstream activities including natural gas gathering, natural gas transportation, NGLs (natural gas liquids) fractionation, and NGLs marketing, posted a 22.1% YoY increase in adjusted EBITDA in 4Q17. The segment’s 4Q17 performance was driven by strong throughput volume from the Haynesville region, higher commodity margins, and lower operating and maintenance expenses. The above positives were partially offset by the sale of 50% interest in the DBJV (Delaware Basin Joint Venture) gathering system to Western Gas Partners (WES).

Williams Partners’ Northeast G&P segment

The Northeast G&P segment, which provides natural gas gathering and processing and NGLs fractionation in the US Northeast region, experienced an 8.7% increase in its adjusted EBITDA. The increase was mainly driven by the acquisition of an interest in two Marcellus gathering systems from Western Gas Partners—partially offset by weak throughput volumes from the Utica region. EQT Midstream Partners (EQM) and Antero Midstream Partners (AM) are among the midstream companies that have exposure to the Utica region.

Next, we’ll discuss the 2018 financial guidance for Williams Partners and Williams Companies.

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