Oct. 29, 2009 (PR Newswire) -- TULSA, Okla., Oct. 29 /PRNewswire-FirstCall/ -- Williams Pipeline Partners L.P. (NYSE: WMZ) today announced unaudited third-quarter 2009 net income of $12.5 million, compared with $13.9 million for third-quarter 2008. Net income per limited-partner unit for third-quarter 2009 was $0.38, compared with $0.42, as revised, for third-quarter 2008.

Higher operating expenses led to the Northwest Pipeline GP's slightly lower third-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 Sept. 30, Williams Pipeline Partners' net income was $37.7 million, compared with $38.6 million for the same period in 2008. Net income per limited-partner unit for the year-to-date period was $1.14, compared with $1.05, as revised, 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 Sept. 30, 2008. The 2008 year-to-date net income is based on a full nine-month period.

Higher operating and interest expense, partially offset by higher firm transportation revenue under long-term contracts and higher storage revenues, were drivers of Northwest Pipeline GP's slightly lower results in the year-to-date period.

Third-quarter and year-to-date 2008 net income per limited-partner unit have been revised pursuant to the adoption of an accounting rule change in 2009, which changed the method the partnership previously used to allocate undistributed earnings between the limited partners and the general partner.

Distributable cash flow in third-quarter 2009 for Williams Pipeline Partners' limited-partner unitholders was $11.4 million, or $0.34 per weighted average limited-partner unit. The third-quarter 2008 amounts were $10.6 million for total distributable cash flow, or $0.31 per weighted average limited-partner unit.

A higher cash distribution from Northwest Pipeline drove the increase in distributable cash flow for the third quarter.

Year-to-date through Sept. 30, Williams Pipeline Partners' distributable cash flow for limited-partner unitholders was $34.0 million, or $1.01 per weighted average limited-partner unit. For the first nine months of 2008, these amounts were $34.2 million, or $1.02 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 third quarter, Williams Pipeline Partners announced it had raised its regular quarterly cash distribution to unitholders to $0.335 per unit. The new amount is a 1.5-percent increase over the second-quarter 2009 distribution of $0.33 per unit and a 6.3-percent increase over the partnership's third-quarter 2008 distribution of $0.315 per unit.

Liquidity and Debt Maturities

As of Sept. 30, 2009, Williams Pipeline Partners had $7.9 million of cash and cash equivalents and no outstanding debt. The partnership will make its third-quarter distribution to unitholders on Nov. 13.

Northwest Pipeline on Sept. 30 had approximately $92.1 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.