TULSA, Okla., Aug. 6 /PRNewswire-FirstCall/ -- Williams Pipeline Partners L.P. (NYSE: WMZ) today announced unaudited second-quarter 2009 net income of $11.6 million, compared with $11.9 million for second-quarter 2008. Net income per limited partner unit for second-quarter 2009 was $0.35, compared with $0.36 for second-quarter 2008.
Higher interest and operating expenses, mostly offset by higher storage revenues led to the Northwest Pipeline GP's comparable second-quarter operating results. Those results are a key component of the partnership's earnings from its 35-percent equity interest in Northwest Pipeline.
Year-to-date through June 30, Williams Pipeline Partners' net income was $25.2 million, compared with $24.7 million for the same period in 2008. Net income per limited partner unit for the year-to-date period was $0.76, compared with $0.63 for the same period in 2008. The per-unit amount for year-to-date 2008 is based on prorated net income for the period from the partnership's initial public offering on Jan. 24, 2008, through June 30, 2008. The 2008 year-to-date net income is based on a full six-month period.
Higher firm transportation revenue under long-term contracts and higher storage revenues, partially offset by higher interest expense, were drivers of Northwest Pipeline GP's improvement in the year-to-date period.
Distributable cash flow in second-quarter 2009 for Williams Pipeline Partners' limited-partner unitholders was $11.6 million, or $0.34 per weighted average limited-partner unit. The second-quarter 2008 amounts were $10.5 million for total distributable cash flow, or $0.31 per weighted average limited-partner unit.
Year-to-date through June 30, Williams Pipeline Partners' distributable cash flow for limited-partner unitholders was $22.6 million, or $0.67 per weighted average limited-partner unit. For the first half of 2008, these amounts were $23.6 million, or $0.70 per weighted average limited-partner unit.
The year-to-date 2008 amounts were for the partial first-quarter 2008. Also, the year-to-date 2008 amounts benefited from an additional cash distribution made in the first quarter to the partnership from Northwest Pipeline.
Subsequent to the close of the second quarter, Williams Pipeline Partners announced it had raised its regular quarterly cash distribution to unitholders to $0.33 per unit.
The new amount is a 1.5-percent increase over the first-quarter 2009 distribution of $0.325 per unit and a 6.5-percent increase over the partnership's second-quarter 2008 distribution of $0.31 per unit.
Liquidity and Debt Maturities
As of July 31, 2009, Williams Pipeline Partners had $19.2 million of cash and no outstanding debt. The partnership will make its second-quarter distribution to unitholders on Aug. 14, totaling $11.3 million.
Northwest Pipeline on July 31 had approximately $66.0 million of available cash through demand notes with Williams (NYSE: WMB) and $381 million of available capacity under Williams' credit facility. Northwest Pipeline has no significant debt maturities until 2016.
Distributable Cash Flow Definition
Distributable cash flow per weighted average limited-partner unit is a key measure of the partnership's financial performance and available cash flows to unitholders.
This press release includes certain financial measures, Distributable Cash Flow and Distributable Cash Flow per Limited Partner Unit that are non-GAAP financial measures as defined under the rules of the Securities and Exchange Commission.
