Williams Partners L.P. (WPZ)

TULSA, Okla.--(BUSINESS WIRE)--Williams Partners L.P. (NYSE: WPZ) today announced its financial results for the three and nine months ended Sept. 30, 2017. (1) Adjusted EBITDA, distributable cash flow (DCF) and cash coverage ratio are non-GAAP measures. Reconciliations to the most relevant measures included in GAAP are attached to this news release. Third-Quarter 2017 Financial Results Williams Partners reported unaudited third-quarter 2017 net income attributable to controlling interests of $259 million, a $67 million decrease from third-quarter 2016. The unfavorable change was driven primarily by the absence of results associated with the Geismar olefins facility, which was sold July 6, 2017, and the partnership's former Canadian business, which was sold in September 2016. In addition, results were negatively impacted by impairments of certain assets, largely offset by the gain related to the sale of the Geismar facility. Year-to-date, Williams Partners reported unaudited net income attributable to controlling interests of $1.213 billion, a $927 million improvement over the same nine-month reporting period in 2016. The favorable change was driven primarily by increased fee-based revenues from expansion projects, and gains on the sale of assets and equity investments. These favorable results were partially offset by higher impairment losses on assets between the periods and the decrease related to the previously mentioned sales of the Geismar olefins facility and the partnership's former Canadian operations. Williams Partners reported third-quarter 2017 Adjusted EBITDA of $1.101 billion, an $88 million decrease from third-quarter 2016. The unfavorable change was driven primarily by the absence of $101 million of Adjusted EBITDA contribution from the NGL & Petchem Services segment associated with the previously described assets sold. Williams Partners' current businesses increased Adjusted EBITDA by approximately $13 million including an unfavorable impact of approximately $8 million from Hurricanes Harvey and Irma. Year-to-date, Williams Partners reported Adjusted EBITDA of $3.322 billion, an $8 million increase over the corresponding nine-month reporting period in 2016. The comparison includes an approximately $110 million decrease from the NGL & Petchem Services segment associated with the previously described assets that were sold. Williams Partners' current businesses increased Adjusted EBITDA by approximately $118 million during the period. Favorable results included increased fee-based revenues, improved commodity margins, lower selling, general and administrative (SG&A) expenses and increased proportional EBITDA from joint ventures. Partially offsetting the increases were higher operating and maintenance (O&M) expenses. Distributable Cash Flow and Distributions For third-quarter 2017, Williams Partners generated $669 million in distributable cash flow (DCF) attributable to partnership operations, compared with $795 million in DCF attributable to partnership operations for third-quarter 2016. DCF was unfavorably impacted by the change in Adjusted EBITDA described above. DCF for third-quarter 2017 was also reduced by $59 million for the removal of non-cash deferred revenue amortization associated with the fourth-quarter 2016 contract restructurings in the Barnett Shale and Mid-Continent region. Partially offsetting the unfavorable change was a $37 million decrease in interest expense. For third-quarter 2017, the cash distribution coverage ratio was 1.17x. Year-to-date, Williams Partners generated $2.119 billion in DCF attributable to partnership operations, an unfavorable change of $152 million compared with the same period in 2016. DCF for 2017 was reduced by $175 million for the non-cash deferred revenue amortization associated with the previously described contract restructurings. Also contributing to the unfavorable change was a $35 million increase in maintenance capital expenditures. Partially offsetting the unfavorable change was an $83 million decrease in interest expense. The cash distribution coverage for the nine-month reporting period was 1.24x. Williams Partners recently announced a regular quarterly cash distribution of $0.60 per unit, payable Nov. 10, 2017, to its common unitholders of record at the close of business on Nov. 3, 2017. CEO Perspective Alan Armstrong, chief executive officer of Williams Partners’ general partner, made the following comments: “The large-scale, competitive positions we've established continue to generate long-term value as evidenced once again this quarter as we maintained our strong results with year-to-date Adjusted EBITDA comparable to 2016 results despite the impact of two hurricanes and the sale of over $3 billion in assets. We've substantially reduced our direct exposure to commodities and, as a result, our current businesses' steady growth is being driven by consistent fee-based revenue growth. “Our strategic focus on natural gas volumes continues to deliver results. So far in 2017, we've placed four of our 'Big 5' Transco expansion projects into service including Gulf Trace, Hillabee Phase 1, Dalton Expansion and New York Bay Expansion with the fifth of the 'Big 5' expansions - the Virginia Southside II project - expected to be placed in service during fourth-quarter 2017. The incremental capacity from the fully-contracted Transco expansion projects going in service so far this year reflects a 25 percent increase in Transco’s design capacity. And, year-to-date, Transco's transportation revenues have increased $74 million, a 7 percent increase over last year. “Our existing asset footprint and the efficient incremental expansions available to us have also been highlighted in our Northeast G&P and West segments. Our recently announced agreement to expand our services in the Northeast for our valued customer, Southwestern Energy, showcases how well-positioned our Northeast G&P segment is to serve the growing gas production in the Marcellus and Utica. We are also positioned to capture growth in the Haynesville where in August, we completed the Springridge South plant expansion, and in Wyoming where we are able to bring more volumes onto our Wamsutter system after placing our Chain Lake compressor station into service in October to meet the growing demand of a customer. “I’m also extremely pleased that even as we continue to deliver on our growth strategy by successfully executing on expansion projects across our operational map, we have strengthened our balance sheet and credit profile, significantly reducing our debt and continued to lower expenses. Year-to-date in 2017, total adjusted SG&A expenses have been reduced by about $40 million when compared to the same period in 2016.” Business Segment Results Effective, Jan. 1, 2017, Williams Partners implemented certain changes in its reporting segments as part of an operational realignment. As a result beginning with the reporting of first-quarter 2017 financial results, Williams Partners operations were comprised of the following reportable segments: Atlantic-Gulf, West, Northeast G&P, and NGL & Petchem Services. As of July 7, 2017, following the completed sale of Williams Partners' ownership interest in the Geismar olefins plant on July 6, 2017, the partnership's NGL & Petchem Services segment no longer contained any operating assets. ModifiedEBITDA AdjustedEBITDA EBITDA EBITDA EBITDA EBITDA EBITDA Atlantic-Gulf This segment includes the partnership’s interstate natural gas pipeline, Transco, and significant natural gas gathering and processing and crude oil production handling and transportation assets in the Gulf Coast region, including a 51 percent interest in Gulfstar One (a consolidated entity), which is a proprietary floating production system, and various petrochemical and feedstock pipelines in the Gulf Coast region, as well as a 50 percent equity-method investment in Gulfstream, a 41 percent interest in Constitution (a consolidated entity) which is under development, and a 60 percent equity-method investment in Discovery. The Atlantic-Gulf segment reported Modified EBITDA of $430 million for third-quarter 2017, compared with $423 million for third-quarter 2016. Adjusted EBITDA decreased by $3 million to $431 million for the same time period. The increase in Modified EBITDA was driven primarily by $46 million increased fee-based revenues from Transco expansion projects brought online. Partially offsetting the increase were $29 million increased O&M expenses primarily associated with Transco's integrity and pipeline maintenance programs. Proportional EBITDA from joint ventures decreased by $11 million. The total unfavorable impact to Atlantic-Gulf in third-quarter 2017 related to hurricanes was over $6 million. Year-to-date, Atlantic-Gulf reported Modified EBITDA of $1.334 billion, an increase of $169 million over the same nine-month reporting period in 2016. Adjusted EBITDA increased $139 million to $1.346 billion. Fee-based revenues increased $199 million due primarily to higher volumes from Gulfstar One and Transco expansion projects placed in service. Partially offsetting these improvements were $56 million increased O&M expenses due primarily to higher costs associated with Transco’s integrity and pipeline maintenance programs, the segment’s offshore business, and costs associated with several of Transco's expansion projects. West This segment includes the partnership’s interstate natural gas pipeline, Northwest Pipeline, and natural gas gathering, processing, and treating operations in New Mexico, Colorado, and Wyoming, as well as the Barnett Shale region of north-central Texas, the Eagle Ford Shale region of south Texas, the Haynesville Shale region of northwest Louisiana, and the Mid-Continent region which includes the Anadarko, Arkoma, Delaware and Permian basins. This reporting segment also includes an NGL and natural gas marketing business, storage facilities, and an undivided 50 percent interest in an NGL fractionator near Conway, Kansas, and a 50 percent equity-method investment in OPPL. The partnership completed the disposal of its 50 percent equity-method investment in a Delaware Basin gas gathering system in the Mid-Continent region during first-quarter 2017. The West segment reported Modified EBITDA of ($615) million for third-quarter 2017, compared with $363 million for third-quarter 2016. Adjusted EBITDA decreased by $7 million to $426 million. The unfavorable change in Modified EBITDA was driven primarily by a $1.019 billion impairment of certain gathering operations in the Mid-Continent region. The unfavorable change also includes $11 million in decreased proportional EBITDA from joint ventures, due in part to the partnership's sale of its interests in certain non-operated Delaware Basin assets in first-quarter 2017. Partially offsetting these decreases were $19 million higher fee-based revenues, a $21 million increase in commodity margins and a $12 million decline in O&M and SG&A expenses. Adjusted EBITDA excludes the previously mentioned impairment charge and is further adjusted for estimated minimum volume commitments. As a result, Adjusted EBITDA reflects $33 million of lower fee-based revenues. The West segment also experienced unfavorable impacts from Hurricane Harvey of more than $1 million during third-quarter 2017. Year-to-date, the West segment reported Modified EBITDA of $126 million, a decrease of $876 million from the same nine-month period in 2016. Adjusted EBITDA decreased by $70 million to $1.187 billion. The unfavorable change in Modified EBITDA reflected the impairment in the Mid-Continent region described in the above paragraph. The unfavorable change also includes $21 million in decreased proportional EBITDA of joint ventures, due in part to the partnership’s sale of its interests in certain non-operated Delaware Basin assets in first-quarter 2017. Partially offsetting the decreases were $59 million in reduced O&M and SG&A expenses and $38 million in improved commodity margins. Revenues reflect an increase from the amortization of deferred revenue from 2016 contract restructurings largely offset by lower rates associated with those restructurings and lower volumes driven by natural declines. Adjusted EBITDA excludes the previously mentioned impairment charge and is further adjusted for estimated minimum volume commitments. As a result, Adjusted EBITDA reflects $141 million of lower fee-based revenues. Northeast G&P This segment includes the partnership’s natural gas gathering and processing, compression and NGL fractionation businesses in the Marcellus Shale region primarily in Pennsylvania, New York, and West Virginia and Utica Shale region of eastern Ohio, as well as a 66 percent interest in Cardinal (a consolidated entity), a 62 percent equity-method investment in UEOM, a 69 percent equity-method investment in Laurel Mountain, a 58 percent equity-method investment in Caiman II, and Appalachia Midstream Services, LLC, which owns an approximate average 66 percent equity-method investment in multiple gas gathering systems in the Marcellus Shale (Appalachia Midstream Investments). The Northeast G&P segment reported Modified EBITDA of $115 million for third-quarter 2017, compared with $214 million for third-quarter 2016. Adjusted EBITDA increased by $26 million to $246 million. The unfavorable change in Modified EBITDA reflected a $115 million impairment of certain gathering operations in the Marcellus South. This impairment charge is excluded from Adjusted EBITDA. The current year benefited from a $30 million increase in proportional EBITDA of joint ventures due largely to the partnership's increase in ownership in two Marcellus shale gathering systems in first-quarter 2017. Fee-based revenues were stable between the two periods due to increases in the Susquehanna that offset decreases in the Utica. Year-to-date, the Northeast G&P segment reported Modified EBITDA of $588 million, a decrease of $68 million over the corresponding nine-month period in 2016. Adjusted EBITDA increased by $54 million to $721 million. The unfavorable change in Modified EBITDA reflected the impairment in the Marcellus South region described in the above paragraph. This impairment charge is excluded from Adjusted EBITDA. The current year benefited from a $51 million increase in proportional EBITDA of joint ventures due largely to the previously described increase in ownership in two Marcellus shale gathering systems. Fee-based revenues were stable between the two periods due to increases in the Susquehanna and Ohio River systems that offset decreases in the Utica. NGL & Petchem Services On Jan. 1, 2017, this segment included the partnership’s 88.46 percent undivided interest in an olefins production facility in Geismar, Louisiana, along with a refinery grade propylene splitter. On July 6, 2017, the partnership announced that it had completed the sale of all of its membership interest in the Geismar olefins production facility and associated complex. On June 30, 2017 the partnership completed the sale of the refinery grade propylene splitter. Prior to September 2016, this reporting segment also included an oil sands offgas processing plant near Fort McMurray, Alberta, and an NGL/olefin fractionation facility, which were subsequently sold. As of July 7, 2017, this segment no longer contained any operating assets. The NGL & Petchem Services segment reported Modified EBITDA of $1.084 billion for third-quarter 2017, compared with $70 million for third-quarter 2016. Adjusted EBITDA decreased by $101 million to $1 million. The improvement in Modified EBITDA was driven primarily by the $1.095 billion gain resulting from the sale of the partnership's interest in the Geismar olefins facility on July 6, 2017. This gain is excluded from Adjusted EBITDA. The current year was also impacted by the absence of EBITDA associated with assets recently sold by the partnership as described in the above paragraph. Year-to-date, the NGL & Petchem Services segment reported Modified EBITDA of $1.165 billion, an improvement of $1.359 billion over the same nine-month reporting period in 2016. Adjusted EBITDA decreased $110 million to $73 million. The improvement in Modified EBITDA was driven primarily by the $1.095 billion gain resulting from the sale of the partnership's interest in the Geismar olefins facility on July 6, 2017, and the absence of a $341 million impairment of our former Canadian operations in 2016. These items are excluded from Adjusted EBITDA. The current year was also impacted by the absence of EBITDA associated with the previously described assets that were recently sold by the partnership. Atlantic Sunrise Update On Sept. 18, 2017 Williams Partners reported that construction is now underway in Pennsylvania on the greenfield portion of the Atlantic Sunrise pipeline project - an expansion of the existing Transco natural gas pipeline to connect abundant Marcellus gas supplies with markets in the Mid-Atlantic and Southeastern U.S. The partnership anticipates pipeline and compressor station construction to last approximately 10 months, weather permitting. Additionally, Williams Partners also placed a portion of the project into early service on Sept. 1, 2017, providing 400,000 dth/day of firm transportation service on Transco's existing mainline facilities to various delivery points as far south as Choctaw County, Alabama. The partial service milestone is the result of recently completed modifications to existing Transco facilities in Virginia and Maryland designed to further accommodate bi-directional flow on the existing Transco pipeline system. Additional Notable Recent Accomplishments On Oct. 12, 2017, Williams Partners announced the execution of agreements with Southwestern Energy Company (NYSE: SWN) (“Southwestern”) to expand its services to Southwestern in the Appalachian Basin of West Virginia where Williams Partners has established a strong operational footprint. The agreements call for Williams Partners to deliver gas processing, fractionation, and liquids handling services in Southwestern’s Wet Gas Acreage in the Marcellus and Upper Devonian Shale along with gas gathering services for Southwestern in its South Utica Dry Gas Acreage. Williams Partners will provide Southwestern with 660 million cubic feet per day (MMcf/d) of processing capacity to serve a 135,000-acre dedication in Southwestern’s Wet Gas Acreage in the Marcellus and Upper Devonian Shale in Marshall and Wetzel counties in West Virginia. As a result of this agreement, Williams Partners expects to further build out its Oak Grove processing facility for Southwestern’s expanding production of wet gas. The Oak Grove processing facility has the ability to expand by an additional 1.8 Bcf/d of gas processing capacity. On Oct. 9, 2017, Williams Partners announced that it has placed into service an expansion of its Transco pipeline system to increase natural gas delivery capacity to New York City by 115,000 dekatherms per day in time for the 2017/2018 heating season. The New York Bay Expansion provides additional firm transportation capacity for much-needed incremental natural gas supplies to National Grid, the largest distributor of natural gas in the northeastern U.S. The company provides service to 1.8 million customers in Brooklyn, Queens, Staten Island and Long Island. The New York Bay Expansion is the fourth of Williams Partners’ projected five fully-contracted Transco expansion projects to be placed into service this year, combining with Gulf Trace, Hillabee Phase 1 and the Dalton Expansion to add more than 2.5 million dekatherms per day capacity to the Transco pipeline system so far in 2017. The partnership continues to target a fourth-quarter 2017 in-service date for its fifth Transco expansion this year - the Virginia Southside II project. Williams Partners' Credit Profile Improvement including Debt Reduction Update The partnership continued to strengthen its balance sheet and credit profile during the quarter with nearly $2.1 billion of debt reduction. As of the end of third-quarter 2017, the partnership had total debt of $16.5 billion. Year-to-date, cash and cash equivalents increased by $1.02 billion to $1.17 billion, which the partnership intends to use primarily to fund growth capital expenditures and long-term investments. Guidance The Guidance previously provided at our Analyst Day event on May 11, 2017, remains unchanged. The partnership plans to announce its 2018 Guidance as part of the release of its fourth-quarter 2017 financial results. Williams Partners’ Third-Quarter 2017 Materials to be Posted Shortly; Q&A Webcast Scheduled for Tomorrow Williams Partners’ third-quarter 2017 financial results package will be posted shortly at www.williams.com. Note: the analyst package is included at the back of this news release. Williams Partners and Williams will host a joint Q&A live webcast on Thursday, Nov. 2 at 9:30 a.m. Eastern Time (8:30 a.m. Central Time). A limited number of phone lines will be available at (877) 830-2641. International callers should dial (785) 424-1809. The conference ID is 8089866. The link to the webcast, as well as replays of the webcast, will be available for at least 90 days following the event at www.williams.com. Form 10-Q The partnership plans to file its third-quarter 2017 Form 10-Q with the Securities and Exchange Commission (SEC) this week. Once filed, the document will be available on both the SEC and Williams Partners websites. Definitions of Non-GAAP Measures This news release may include certain financial measures – Adjusted EBITDA, distributable cash flow and cash distribution coverage ratio – that are non-GAAP financial measures as defined under the rules of the SEC. Our segment performance measure, Modified EBITDA, is defined as net income (loss) before income tax expense, net interest expense, equity earnings from equity-method investments, other net investing income, impairments of equity investments and goodwill, depreciation and amortization expense, and accretion expense associated with asset retirement obligations for nonregulated operations. We also add our proportional ownership share (based on ownership interest) of Modified EBITDA of equity-method investments. Adjusted EBITDA further excludes items of income or loss that we characterize as unrepresentative of our ongoing operations. Management believes these measures provide investors meaningful insight into results from ongoing operations. We define distributable cash flow as Adjusted EBITDA less maintenance capital expenditures, cash portion of interest expense, income attributable to noncontrolling interests and cash income taxes, plus WPZ restricted stock unit non-cash compensation expense and certain other adjustments that management believes affects the comparability of results. Adjustments for maintenance capital expenditures and cash portion of interest expense include our proportionate share of these items of our equity-method investments. We also calculate the ratio of distributable cash flow to the total cash distributed (cash distribution coverage ratio). This measure reflects the amount of distributable cash flow relative to our cash distribution. We have also provided this ratio using the most directly comparable GAAP measure, net income (loss). This news release is accompanied by a reconciliation of these non-GAAP financial measures to their nearest GAAP financial measures. Management uses these financial measures because they are accepted financial indicators used by investors to compare company performance. In addition, management believes that these measures provide investors an enhanced perspective of the operating performance of the Partnership's assets and the cash that the business is generating. Neither Adjusted EBITDA nor distributable cash flow are intended to represent cash flows for the period, nor are they presented as an alternative to net income or cash flow from operations. They should not be considered in isolation or as substitutes for a measure of performance prepared in accordance with United States generally accepted accounting principles. About Williams Partners Williams Partners is an industry-leading, large-cap natural gas infrastructure master limited partnership with a strong growth outlook and major positions in key U.S. supply basins. Williams Partners has operations across the natural gas value chain including gathering, processing and interstate transportation of natural gas and natural gas liquids. Williams Partners owns and operates more than 33,000 miles of pipelines system wide – including the nation’s largest volume and fastest growing pipeline – providing natural gas for clean-power generation, heating and industrial use. Williams Partners’ operations touch approximately 30 percent of U.S. natural gas. Tulsa, Okla.-based Williams (NYSE: WMB), a premier provider of large-scale U.S. natural gas infrastructure, owns approximately 74 percent of Williams Partners. Forward-Looking Statements The reports, filings, and other public announcements of Williams Partners L.P. (WPZ) may contain or incorporate by reference statements that do not directly or exclusively relate to historical facts. Such statements are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (Securities Act) and Section 21E of the Securities Exchange Act of 1934, as amended (Exchange Act). These forward-looking statements relate to anticipated financial performance, management’s plans and objectives for future operations, business prospects, outcome of regulatory proceedings, market conditions and other matters. All statements, other than statements of historical facts, included herein that address activities, events or developments that we expect, believe or anticipate will exist or may occur in the future, are forward-looking statements. Forward-looking statements can be identified by various forms of words such as “anticipates,” “believes,” “seeks,” “could,” “may,” “should,” “continues,” “estimates,” “expects,” “forecasts,” “intends,” “might,” “goals,” “objectives,” “targets,” “planned,” “potential,” “projects,” “scheduled,” “will,” “assumes,” “guidance,” “outlook,” “in-service date” or other similar expressions. These forward-looking statements are based on management’s beliefs and assumptions and on information currently available to management and include, among others, statements regarding: Levels of cash distributions with respect to limited partner interests; Our and our affiliates’ future credit ratings; Amounts and nature of future capital expenditures; Expansion and growth of our business and operations; Expected in-service dates for capital projects; Financial condition and liquidity; Business strategy; Cash flow from operations or results of operations; Seasonality of certain business components; Natural gas and natural gas liquids prices, supply, and demand; Demand for our services. Forward-looking statements are based on numerous assumptions, uncertainties and risks that could cause future events or results to be materially different from those stated or implied herein. Many of the factors that will determine these results are beyond our ability to control or predict. Specific factors that could cause actual results to differ from results contemplated by the forward-looking statements include, among others, the following: Whether we will produce sufficient cash flows to provide expected levels of cash distributions; Whether we elect to pay expected levels of cash distributions; Whether we will be able to effectively execute our financing plan; Whether Williams will be able to effectively manage the transition in its board of directors and management as well as successfully execute its business restructuring; Availability of supplies, including lower than anticipated volumes from third parties served by our business, and market demand; Volatility of pricing including the effect of lower than anticipated energy commodity prices and margins; Inflation, interest rates, and general economic conditions (including future disruptions and volatility in the global credit markets and the impact of these events on customers and suppliers); The strength and financial resources of our competitors and the effects of competition; Whether we are able to successfully identify, evaluate, and timely execute our capital projects and other investment opportunities in accordance with our forecasted capital expenditures budget; Our ability to successfully expand our facilities and operations; Development and rate of adoption of alternative energy sources; The impact of operational and developmental hazards, unforeseen interruptions, and the availability of adequate insurance coverage; The impact of existing and future laws, regulations, the regulatory environment, environmental liabilities, and litigation, as well as our ability to obtain necessary permits and approvals, and achieve favorable rate proceeding outcomes; Our costs for defined benefit pension plans and other postretirement benefit plans sponsored by our affiliates; Changes in maintenance and construction costs; Changes in the current geopolitical situation; Our exposure to the credit risk of our customers and counterparties; Risks related to financing, including restrictions stemming from debt agreements, future changes in credit ratings as determined by nationally-recognized credit rating agencies and the availability and cost of capital; The amount of cash distributions from and capital requirements of our investments and joint ventures in which we participate; Risks associated with weather and natural phenomena, including climate conditions and physical damage to our facilities; Acts of terrorism, including cybersecurity threats, and related disruptions; Additional risks described in our filings with the Securities and Exchange Commission (SEC). Given the uncertainties and risk factors that could cause our actual results to differ materially from those contained in any forward-looking statement, we caution investors not to unduly rely on our forward-looking statements. We disclaim any obligations to and do not intend to update the above list or announce publicly the result of any revisions to any of the forward-looking statements to reflect future events or developments. In addition to causing our actual results to differ, the factors listed above may cause our intentions to change from those statements of intention set forth herein. Such changes in our intentions may also cause our results to differ. We may change our intentions, at any time and without notice, based upon changes in such factors, our assumptions, or otherwise. Limited partner units are inherently different from the capital stock of a corporation, although many of the business risks to which we are subject are similar to those that would be faced by a corporation engaged in a similar business. You should carefully consider the risk factors discussed above in addition to the other information contained herein. If any of such risks were actually to occur, our business, results of operations, and financial condition could be materially adversely affected. In that case, we might not be able to pay distributions on our common units, the trading price of our common units could decline, and unitholders could lose all or part of their investment. Because forward-looking statements involve risks and uncertainties, we caution that there are important factors, in addition to those listed above, that may cause actual results to differ materially from those contained in the forward-looking statements. For a detailed discussion of those factors, see Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K filed with the SEC on February 22, 2017. Williams Partners L.P. (UNAUDITED) (UNAUDITED) Northeast G&P Atlantic-Gulf West NGL & Petchem Services Other (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)

TULSA, Okla.--(BUSINESS WIRE)--Williams Partners L.P. (NYSE: WPZ) today reported first quarter 2016 adjusted EBITDA of $1.06 billion, a $143 million, or 16 percent, increase from first quarter 2015. The increase in adjusted EBITDA for first quarter 2016 is due to increases of $64 million from the Atlantic-Gulf operating area, $50 million from NGL & Petchem Services, $23 million from Northeast G&P and $8 million from the Central operating area. Adjusted EBITDA contributions from the West were down slightly compared with first quarter 2015. Adjusted EBITDA, distributable cash flow (DCF) and cash distribution coverage ratio are non-GAAP measures. Reconciliations to the most relevant measures included in GAAP are attached to this news release. The increase in adjusted EBITDA as described above by segment was driven by $60 million in higher olefins margins from a full quarter of production at the Geismar plant and $63 million in fee-based revenue growth. Proportional adjusted EBITDA from equity investments increased $45 million due primarily to contributions from Discovery’s Keathley Canyon Connector project in the Atlantic-Gulf operating area. Lower NGL margins were mostly offset by reduced operating costs. Commodity margins totaled approximately $103 million, up $53 million due primarily to higher olefins margins from a full quarter of production at Geismar, partially offset by lower NGL margins. Williams Partners reported unaudited first quarter 2016 net income attributable to controlling interests of $50 million compared with $89 million in first quarter 2015. The decrease is primarily due to impairments of certain equity-method investments and higher interest expense, partially offset by higher olefins margins from the Geismar plant and contributions from projects placed in service. Distributable Cash Flow & Distributions For first quarter 2016, Williams Partners generated $739 million in distributable cash flow (DCF) attributable to partnership operations, compared with $646 million in DCF attributable to partnership operations in first quarter 2015. The $93 million increase in DCF for the quarter was driven by the $143 million net increase in adjusted EBITDA, partially offset by higher cash interest expense of $37 million. Consistent with prior years, maintenance capital expenditures were seasonably lower for the first quarter versus expectations for the remaining quarters of the year. Williams Partners recently announced a regular quarterly cash distribution of $0.85 per unit for its common unitholders. CEO Perspective Alan Armstrong, chief executive officer of Williams Partners’ general partner, made the following comments: “Our strategy to connect North America’s abundant natural gas supply to the best markets continues to deliver results and gain momentum as we capture increasing opportunities on the demand side. This marks the fourth consecutive quarter of adjusted EBITDA in excess of $1 billion. Our focus on fee-based revenues has allowed us to produce strong cash flow growth despite a 16-year low in NGL prices. “To help offset the effects of low commodity prices and slower near-term growth among producers, we continue to aggressively manage our costs and we made additional cost cutting decisions at the end of the first quarter, including reducing our workforce by 10 percent. “Importantly this year, we won new business in the Gulf of Mexico, started receiving fee-based revenues from Williams’ new offgas plant in Canada and achieved significant milestones on a number of demand-driven natural gas projects. For the balance of 2016, we expect additional cash flow from recently completed expansions and new projects coming into service in the second and third quarters. Our fully contracted natural gas transmission business coming on in 2017 and 2018 will drive growth in the supply basins we serve.” Business Segment Performance Atlantic-Gulf Atlantic-Gulf includes the Transco interstate gas pipeline and a 41-percent interest in the Constitution interstate gas pipeline development project, which Williams Partners consolidates. The segment also includes the partnership’s significant natural gas gathering and processing and crude oil production handling and transportation in the Gulf Coast region. These operations include a 51-percent consolidated interest in Gulfstar One, a 50-percent equity-method interest in Gulfstream and a 60-percent equity-method interest in the Discovery pipeline and processing system. Atlantic-Gulf reported adjusted EBITDA of $399 million for first quarter 2016, compared with $335 million for first quarter 2015. Adjusted EBITDA for the quarter increased primarily due to $28 million higher proportional EBITDA from Discovery due to contributions from Keathley Canyon Connector and $28 million higher fee-based revenues primarily from higher transportation fee-based revenues on Transco associated with expansion projects. Central The Central operating area includes operations that were previously part of the former Access Midstream segment located in Louisiana, Texas, Arkansas and Oklahoma. These operations became the Central operating area effective January 1, 2016 and prior period segment disclosures have been recast for this change. Central provides gathering, treating and compression services to producers under long-term, fee-based contracts. The segment also includes a non-operated 50 percent interest in the Delaware Basin gas gathering system in the Mid-Continent region. Central reported adjusted EBITDA of $226 million for first quarter 2016, compared with $218 million for first quarter 2015. The increase in adjusted EBITDA between years was driven primarily by higher gathering fees in the Haynesville area. NGL & Petchem Services NGL & Petchem Services includes an 88.5 percent interest in an olefins production facility in Geismar, La., along with a refinery grade propylene splitter and pipelines in the Gulf Coast region. This segment also includes midstream operations in Alberta, Canada, including an oil sands offgas processing plant near Fort McMurray, 261 miles of NGL and olefins pipelines and an NGL/olefins fractionation facility at Redwater. This segment also includes the partnership’s energy commodities marketing business, an NGL fractionator and storage facilities near Conway, Kan. and a 50-percent equity-method interest in Overland Pass Pipeline. NGL & Petchem Services reported adjusted EBITDA of $57 million for first quarter 2016, compared with $7 million for first quarter 2015. The increase in first quarter 2016 adjusted EBITDA was due primarily to $60 million higher olefins margins at the Geismar plant reflecting a full quarter of production, compared to intermittent production in first quarter 2015. The Geismar plant was off-line for most of first quarter 2015 and resumed consistent operations in late March 2015. Additionally, the change in adjusted EBITDA included $16 million in unfavorable changes in foreign currency exchange gains and losses. Northeast G&P Northeast G&P now includes the Marcellus South, Bradford and Utica midstream gathering and processing operations that were previously within the former Access Midstream segment. These operations became part of Northeast G&P effective January 1, 2016 and prior period segment disclosures have been recast for this change. Northeast G&P also includes the Susquehanna Supply Hub and Ohio Valley Midstream, as well as its 69-percent equity investment in Laurel Mountain Midstream, and its 58.4-percent equity investment in Caiman Energy II. Caiman Energy II owns a 50 percent interest in Blue Racer Midstream. Northeast G&P reported adjusted EBITDA of $219 million for first quarter 2016, compared with adjusted EBITDA of $196 million for first quarter 2015. The improved results are primarily due to a $16 million increase in fee-based revenues driven by higher gathering volumes in the Utica Shale and $13 million higher proportional EBITDA from equity method investments primarily due to our increased ownership in Utica East Ohio Midstream LLC. These benefits were partially offset by lower volumes caused by price-related shut-ins by producers. West West includes the partnership’s Northwest Pipeline interstate gas pipeline system, as well as gathering, processing and treating operations in Wyoming, the Piceance Basin and the Four Corners area. West reported adjusted EBITDA of $159 million for first quarter 2016, compared with $162 million for first quarter 2015. First Quarter Materials to be Posted Shortly, Live Webcast Scheduled for Tomorrow Williams Partners’ first quarter 2016 financial results will be posted shortly at www.williams.com. The information will include the data book and analyst package. The company and the partnership plan to jointly host a conference call and live webcast on Thursday, May 5, at 10 a.m. EDT. A limited number of phone lines will be available at (800) 344-6698. International callers should dial (785) 830-7979. The conference ID is 9742588. A link to the webcast, as well as replays of the webcast in both streaming and downloadable podcast formats, will be available following the event at www.williams.com. Form 10-Q The company plans to file its first quarter 2016 Form 10-Q with the Securities and Exchange Commission this week. Once filed, the document will be available on both the SEC and Williams websites. Definitions of Non-GAAP Measures This news release may include certain financial measures – adjusted EBITDA, distributable cash flow and cash distribution coverage ratio – that are non-GAAP financial measures as defined under the rules of the Securities and Exchange Commission. Our segment performance measure, modified EBITDA, is defined as net income (loss) before income tax expense, net interest expense, equity earnings from equity-method investments, other net investing income, impairments of equity investments and goodwill, depreciation and amortization expense, and accretion expense associated with asset retirement obligations for nonregulated operations. We also add our proportional ownership share (based on ownership interest) of modified EBITDA of equity investments. Adjusted EBITDA further excludes items of income or loss that we characterize as unrepresentative of our ongoing operations and may include assumed business interruption insurance related to the Geismar plant. Management believes these measures provide investors meaningful insight into results from ongoing operations. We define distributable cash flow as adjusted EBITDA less maintenance capital expenditures, cash portion of interest expense, income attributable to noncontrolling interests and cash income taxes, plus WPZ restricted stock unit non-cash compensation expense and certain other adjustments that management believes affects the comparability of results. Adjustments for maintenance capital expenditures and cash portion of interest expense include our proportionate share of these items of our equity-method investments. We also calculate the ratio of distributable cash flow to the total cash distributed (cash distribution coverage ratio). This measure reflects the amount of distributable cash flow relative to our cash distribution. We have also provided this ratio calculated using the most directly comparable GAAP measure, net income (loss). This news release is accompanied by a reconciliation of these non-GAAP financial measures to their nearest GAAP financial measures. Management uses these financial measures because they are accepted financial indicators used by investors to compare company performance. In addition, management believes that these measures provide investors an enhanced perspective of the operating performance of the Partnership's assets and the cash that the business is generating. Neither adjusted EBITDA nor distributable cash flow are intended to represent cash flows for the period, nor are they presented as an alternative to net income or cash flow from operations. They should not be considered in isolation or as substitutes for a measure of performance prepared in accordance with United States generally accepted accounting principles. About Williams Partners Williams Partners (NYSE: WPZ) is an industry-leading, large-cap natural gas infrastructure master limited partnership with a strong growth outlook and major positions in key U.S. supply basins and also in Canada. Williams Partners has operations across the natural gas value chain from gathering, processing and interstate transportation of natural gas and natural gas liquids to petchem production of ethylene, propylene and other olefins. Williams Partners owns and operates more than 33,000 miles of pipelines system wide – including the nation’s largest volume and fastest growing pipeline – providing natural gas for clean-power generation, heating and industrial use. Williams Partners’ operations touch approximately 30 percent of U.S. natural gas. Tulsa, Okla.-based Williams (NYSE: WMB), a premier provider of large-scale North American natural gas infrastructure, owns 60 percent of Williams Partners, including all of the 2 percent general-partner interest. www.williams.com Forward-Looking Statements The reports, filings, and other public announcements of Williams Partners L.P. (WPZ) may contain or incorporate by reference statements that do not directly or exclusively relate to historical facts. Such statements are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These forward-looking statements relate to anticipated financial performance, management’s plans and objectives for future operations, business prospects, outcome of regulatory proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this document that address activities, events or developments that we expect, believe or anticipate will exist or may occur in the future, are forward-looking statements. Forward-looking statements can be identified by various forms of words such as “anticipates,” “believes,” “seeks,” “could,” “may,” “should,” “continues,” “estimates,” “expects,” “forecasts,” “intends,” “might,” “goals,” “objectives,” “targets,” “planned,” “potential,” “projects,” “scheduled,” “will,” “assumes,” “guidance,” “outlook,” “in service date” or other similar expressions. These forward-looking statements are based on management’s beliefs and assumptions and on information currently available to management and include, among others, statements regarding: • The status, expected timing and expected outcome of the proposed ETC Merger; • Events which may occur subsequent to the proposed ETC Merger including events which directly impact our business; • Expected levels of cash distributions with respect to general partner interests, incentive distribution rights and limited partner interests; • Our and our affiliates’ future credit ratings; • Amounts and nature of future capital expenditures; • Expansion and growth of our business and operations; • Financial condition and liquidity; • Business strategy; • Cash flow from operations or results of operations; • Seasonality of certain business components; • Natural gas, natural gas liquids, and olefins prices, supply, and demand; and • Demand for our services. Forward-looking statements are based on numerous assumptions, uncertainties and risks that could cause future events or results to be materially different from those stated or implied in this document. Many of the factors that will determine these results are beyond our ability to control or predict. Specific factors that could cause actual results to differ from results contemplated by the forward-looking statements include, among others, the following: • The timing and likelihood of completion of the proposed ETC Merger, including the satisfaction of conditions to the completion of the proposed ETC Merger; • Energy Transfer’s plans for us, as well as the other master limited partnerships it currently controls, following the completion of the proposed ETC Merger; • Disruption from the proposed ETC Merger making it more difficult to maintain business and operational relationships; • Whether we have sufficient cash from operations to enable us to pay current and expected levels of cash distributions, if any, following the establishment of cash reserves and payment of fees and expenses, including payments to our general partner; • Availability of supplies, market demand and volatility of prices; • Inflation, interest rates, fluctuation in foreign exchange rates and general economic conditions (including future disruptions and volatility in the global credit markets and the impact of these events on customers and suppliers); • The strength and financial resources of our competitors and the effects of competition; • Whether we are able to successfully identify, evaluate and execute investment opportunities; • Our ability to acquire new businesses and assets and successfully integrate those operations and assets into our existing businesses as well as successfully expand our facilities; • Development of alternative energy sources; • The impact of operational and developmental hazards and unforeseen interruptions; • Costs of, changes in, or the results of laws, government regulations (including safety and environmental regulations), environmental liabilities, litigation, and rate proceedings; • Williams’ costs and funding obligations for defined benefit pension plans and other postretirement benefit plans; • Our allocated costs for defined benefit pension plans and other postretirement benefit plans sponsored by our affiliates; • Changes in maintenance and construction costs; • Changes in the current geopolitical situation; • Our exposure to the credit risk of our customers and counterparties; • Risks related to financing, including restrictions stemming from debt agreements, future changes in credit ratings as determined by nationally-recognized credit rating agencies and the availability and cost of capital; • The amount of cash distributions from and capital requirements of our investments and joint ventures in which we participate; • Risks associated with weather and natural phenomena, including climate conditions; • Acts of terrorism, including cybersecurity threats and related disruptions; and • Additional risks described in our filings with the Securities and Exchange Commission (the “SEC”). Given the uncertainties and risk factors that could cause our actual results to differ materially from those contained in any forward-looking statement, we caution investors not to unduly rely on our forward-looking statements. We disclaim any obligations to and do not intend to update the above list or to announce publicly the result of any revisions to any of the forward-looking statements to reflect future events or developments. In addition to causing our actual results to differ, the factors listed above and referred to below may cause our intentions to change from those statements of intention set forth in this document. Such changes in our intentions may also cause our results to differ. We may change our intentions, at any time and without notice, based upon changes in such factors, our assumptions, or otherwise. Limited partner units are inherently different from the capital stock of a corporation, although many of the business risks to which we are subject are similar to those that would be faced by a corporation engaged in a similar business. You should carefully consider the risk factors referred to below in addition to the other information in this document. If any of the risks to which we are subject were actually to occur, our business, results of operations and financial condition could be materially adversely affected. In that case, we might not be able to pay distributions on our common units, the trading price of our common units could decline, and unitholders could lose all or part of their investment. Because forward-looking statements involve risks and uncertainties, we caution that there are important factors, in addition to those listed above, that may cause actual results to differ materially from those contained in the forward-looking statements. For a detailed discussion of those factors, see Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K filed with the SEC on February 26, 2016 and in Part II, Item 1A. Risk Factors in our Quarterly Reports on Form 10-Q available from our office or from our website at www.williams.com. Central Northeast G&P Atlantic-Gulf West NGL & Petchem Services Other

TULSA, Okla.--(BUSINESS WIRE)--Williams Partners L.P. (NYSE: WPZ) today reported fourth quarter 2015 adjusted EBITDA of $1.06 billion, a $215 million, or 25 percent, increase from fourth quarter 2014. The increase was driven by $139 million in fee-based revenue growth, $43 million in higher olefins margins from higher volumes and $42 million in higher marketing margins. Proportional adjusted EBITDA from equity investments increased $37 million. These increases were partially offset by $45 million lower NGL margins. For the year, the partnership reported 2015 adjusted EBITDA of $4.09 billion, an $848 million, or 26 percent, increase from 2014. The increase in 2015 adjusted EBITDA was driven by $1.376 billion, or 36 percent, higher fee-based revenues and minimum volume commitments (MVCs) compared with 2014. These higher fee-based revenues and MVCs include an $837 million increase at Access Midstream primarily driven by contributions from the full-year consolidation of Access Midstream for periods following July 1, 2014. The remaining growth was driven by fee-based revenues from Gulfstar One, Transco expansion projects placed in service and higher volumes in the Northeast. The Geismar olefins plant operated at expected production levels in the second half of 2015 and contributed approximately $168 million of olefins margins for the year. However, 2014 included approximately $311 million in assumed business interruption insurance proceeds related to the 2013 incident at the Geismar plant. Additionally, the proportional EBITDA from non-consolidated equity investments increased $301 million in 2015 versus 2014, due primarily to full-year contributions from Access Midstream joint ventures and Discovery’s Keathley Canyon Connector project in the Atlantic-Gulf operating area. Partially offsetting these increases in 2015 adjusted EBITDA were $229 million in lower NGL margins due primarily to NGL prices that remain at a 13-year low. NGL margins for 2015 totaled $160 million. Operating expenses increased $370 million in 2015 due to a $219 million increase at Access Midstream due to the consolidation of Access Midstream for periods following July 1, 2014 and due to expansions at the partnership’s other operating areas. General and administrative expenses decreased $11 million excluding a $78 million increase at Access Midstream due to the consolidation for periods following July 1, 2014. Williams Partners reported unaudited fourth quarter 2015 net loss attributable to controlling interests of $1.605 billion compared with net income of $382 million in fourth quarter 2014. The unfavorable change was driven primarily by a $1.1 billion non-cash impairment of goodwill and $859 million of non-cash impairments associated with certain equity-method investments. The impairments were largely the result of significant declines in energy commodity prices as well as market values of Williams Partners’ and comparable midstream companies’ publicly traded equity securities in the fourth quarter. The impaired equity-method investments and certain of the impaired goodwill relate to the acquisition of Access Midstream Partners completed in 2014. The remaining impaired goodwill was associated with 2012 acquisitions. For the year, Williams Partners reported unaudited net loss attributable to controlling interests of $1.410 billion, compared with net income of $1.188 billion for 2014. The unfavorable change was driven by a $1.1 billion non-cash impairment of goodwill and $1.3 billion of impairments associated with certain equity-method investments, as well as declines in NGL margins and higher operating, depreciation and interest expenses. Higher fee-based revenues and increased olefins margins partially offset these unfavorable changes. Distributable Cash Flow Williams Partners reported $718 million in fourth quarter 2015 distributable cash flow (DCF) attributable to partnership operations, compared with $266 million in fourth quarter 2014. For the year, the partnership reported $2.819 billion in DCF, compared with $1.719 billion for 2014. The primary drivers of the growth in DCF for both the quarter and the year were the Access Midstream acquisition and other increases in adjusted EBITDA discussed above, partially offset by higher interest expense. DCF for 2014 reflects Williams Partners’ results prior to the merger with Access Midstream Partners, L.P. CEO Perspective Alan Armstrong, chief executive officer of Williams Partners’ general partner, made the following comments: “Williams Partners recorded another strong quarter, demonstrating excellent operational performance and the resilience of our business to grow despite sharply lower commodity prices. Even with reduced activities in supply areas, the partnership enjoyed continued growth in fee-based revenues primarily from demand-driven projects and expansions brought into service. “Several Transco expansions, Gulfstar One, as well as the Keathley Canyon Connector and the expanded Geismar plant, delivered significant revenues in the second half of 2015. We expect new cash flow contributions in the first quarter of 2016 from our Leidy Southeast Expansion, the Kodiak tieback and the expansion of our offgas processing and fractionation business in Canada. “Low natural gas prices continue to spur demand-based growth on Transco and our other interstate pipelines. As a result, our 2016 growth investments are primarily focused on serving the long-term natural gas needs of local distribution companies, electric power generation, LNG and industrial loads.” Business Segment Performance Access Midstream Segment Access Midstream provides gathering, treating, and compression services to producers under long-term, fee-based contracts in Pennsylvania, West Virginia, Ohio, Louisiana, Texas, Arkansas and Oklahoma. Access Midstream also includes a non-operated 50 percent interest in the Delaware Basin gas gathering system in the Mid-Continent region and a 62 percent interest in Utica East Ohio Midstream LLC, a joint project to develop infrastructure for the gathering, processing and fractionation of natural gas and NGLs in the Utica Shale play in Eastern Ohio. Additionally, Access Midstream operates 100 percent of and owns an approximate average 45 percent interest in multiple natural gas gathering systems in the Marcellus Shale region. Access Midstream reported fourth quarter 2015 adjusted EBITDA of $351 million, compared with $325 million in fourth quarter 2014. The increase was driven by higher fee-based volumes, minimum volume commitments and the increased ownership interest in the Utica East Ohio Midstream joint venture. For the year, Access Midstream reported adjusted EBITDA of $1.36 billion, compared with $647 million previously reported for full-year 2014. Williams Partners' results for first and second quarter 2014 are on a pre-merger basis and exclude Access Midstream. Atlantic-Gulf Segment Atlantic-Gulf includes the Transco interstate gas pipeline and a 41-percent interest in the Constitution interstate gas pipeline development project, which Williams Partners consolidates. The segment also includes the partnership’s significant natural gas gathering and processing and crude oil production handling and transportation in the Gulf Coast region. These operations include a 51-percent consolidated interest in Gulfstar One, a 50-percent equity-method interest in Gulfstream and a 60-percent equity-method interest in the Discovery pipeline and processing system. Atlantic-Gulf reported fourth quarter 2015 adjusted EBITDA of $390 million, compared with $268 million for fourth quarter 2014. The increase was due primarily to $88 million in higher fee-based revenues from both Gulfstar One and Transco expansion projects, as well as $35 million higher proportional adjusted EBITDA primarily from Discovery driven by the Keathley Canyon Connector project. For the year, Atlantic-Gulf reported adjusted EBITDA of $1.528 billion, compared with $1.075 billion for full-year 2014. The increase was due primarily to $385 million in higher fee-based revenues from both Gulfstar One and Transco expansion projects, as well as $106 million higher proportional adjusted EBITDA primarily from Discovery driven by the Keathley Canyon Connector project, partially offset by lower NGL margins. NGL & Petchem Services Segment NGL & Petchem Services includes an 88.5 percent interest in an olefins production facility in Geismar, La., along with a refinery grade propylene splitter and pipelines in the Gulf Coast region. This segment also includes midstream operations in Alberta, Canada, including an oil sands offgas processing plant near Fort McMurray, 261 miles of NGL and olefins pipelines and an NGL/olefins fractionation facility at Redwater. This segment also includes the partnership’s energy commodities marketing business, an NGL fractionator and storage facilities near Conway, Kan. and a 50-percent interest in Overland Pass Pipeline. NGL & Petchem Services reported fourth quarter 2015 adjusted EBITDA of $72 million, compared with a loss of $13 million for fourth quarter 2014. Geismar operated at expected production levels and contributed approximately $53 million of olefins margins for fourth quarter 2015. Marketing margins increased $41 million for the quarter due primarily to the absence of unfavorable inventory valuation adjustments, which occurred in fourth quarter 2014. Partially offsetting these increases were $27 million in lower commodity-related margins at the Canadian operations. For the year, NGL & Petchem Services reported adjusted EBITDA of $197 million, compared with $413 million for 2014. The Geismar olefins plant operated at expected production levels in the second half of 2015 and contributed approximately $168 million of olefins margins for the year. However, 2014 included approximately $311 million in assumed business interruption insurance proceeds related to the 2013 incident at the Geismar plant. In addition to the absence of the assumed business interruption insurance proceeds, the year-over-year results were also partially offset by $89 million in lower commodity-related margins at the Canadian operations. Northeast G&P Segment Northeast G&P includes the partnership’s midstream gathering and processing business in the Marcellus and Utica shale regions, including Susquehanna Supply Hub and Ohio Valley Midstream, as well as its 69-percent equity investment in Laurel Mountain Midstream, and its 58.4-percent equity investment in Caiman Energy II. Caiman Energy II owns a 50 percent interest in Blue Racer Midstream. Northeast G&P reported fourth quarter 2015 adjusted EBITDA of $77 million, compared with $78 million for fourth quarter 2014. The lack of growth between fourth quarter 2015 and fourth quarter 2014 was primarily due to lower fee-based volumes caused by price-related shut-ins by producers. For the year, Northeast G&P reported adjusted EBITDA of $356 million, compared with $276 million for full-year 2014. The improved results were due primarily to a $96 million increase in fee-based revenues driven primarily by higher volumes and incremental new service at Ohio Valley Midstream as well as $23 million higher proportional EBITDA from equity method investments. These gains were partially offset by $49 million in higher operating expenses associated with growth and operational repairs in the Northeast. Williams Partners recently negotiated a new gathering agreement with an existing customer. The new agreement provides for a lower per-unit rate but with expected higher revenue as a result of additional expected production as well as additional acreage dedication and extended term. Williams Partners expects no change in revenue associated with this new agreement in 2016 and higher revenue in 2017 and beyond. West Segment West includes the partnership’s Northwest Pipeline interstate gas pipeline system, as well as gathering, processing and treating operations in Wyoming, the Piceance Basin and the Four Corners area. West reported fourth quarter adjusted EBITDA of $175 million, compared with $190 million for fourth quarter 2014. Lower adjusted EBITDA for the quarter was due primarily to $27 million lower NGL margins from lower NGL prices that remain at 13-year lows. For the year, West reported adjusted EBITDA of $648 million, compared with $831 million for full-year 2014. Lower adjusted EBITDA for the year-over-year period was due primarily to $150 million lower NGL margins and $24 million higher expenses primarily driven by the addition of the Niobrara operations from the Access Midstream merger. Higher fee-based revenues from the addition of the Niobrara operations were largely offset by decreases in other areas. Year-End 2015 Materials to Be Posted Shortly; Conference Call Scheduled for Tomorrow Williams Partners’ fourth quarter and full-year 2015 financial materials will be posted shortly at www.williams.com. The information will include the data book and analyst package. Williams Partners and Williams will jointly host a conference call and live webcast on Thursday, Feb. 18, at 9:30 a.m. EST. A limited number of phone lines will be available at (800) 524-8850. International callers should dial (416) 204-9702. A link to the webcast, as well as replays of the webcast in both streaming and downloadable podcast formats, will be available for two weeks following the event at www.williams.com. Form 10-K The partnership plans to file its 2015 Form 10-K with the Securities and Exchange Commission next week. Once filed, the document will be available on both the SEC and Williams Partners websites. Definitions of Non-GAAP Measures This news release may include certain financial measures – adjusted EBITDA, distributable cash flow and cash distribution coverage ratio – that are non-GAAP financial measures as defined under the rules of the Securities and Exchange Commission. Our segment performance measure, modified EBITDA, is defined as net income (loss) before income tax expense, net interest expense, equity earnings from equity-method investments, other net investing income, impairments of equity investments and goodwill, depreciation and amortization expense, and accretion expense associated with asset retirement obligations for nonregulated operations. We also add our proportional ownership share (based on ownership interest) of modified EBITDA of equity investments. Adjusted EBITDA further excludes items of income or loss that we characterize as unrepresentative of our ongoing operations and may include assumed business interruption insurance related to the Geismar plant. Management believes these measures provide investors meaningful insight into results from ongoing operations. We define distributable cash flow as adjusted EBITDA less maintenance capital expenditures, cash portion of interest expense, income attributable to noncontrolling interests and cash income taxes, plus WPZ restricted stock unit non-cash compensation expense and certain other adjustments that management believes affects the comparability of results. Adjustments for maintenance capital expenditures and cash portion of interest expense include our proportionate share of these items of our equity-method investments. We also calculate the ratio of distributable cash flow to the total cash distributed (cash distribution coverage ratio). This measure reflects the amount of distributable cash flow relative to our cash distribution. We have also provided this ratio calculated using the most directly comparable GAAP measure, net income (loss). This news release is accompanied by a reconciliation of these non-GAAP financial measures to their nearest GAAP financial measures. Management uses these financial measures because they are accepted financial indicators used by investors to compare company performance. In addition, management believes that these measures provide investors an enhanced perspective of the operating performance of the Partnership's assets and the cash that the business is generating. Neither adjusted EBITDA nor distributable cash flow are intended to represent cash flows for the period, nor are they presented as an alternative to net income or cash flow from operations. They should not be considered in isolation or as substitutes for a measure of performance prepared in accordance with United States generally accepted accounting principles. About Williams Partners Williams Partners (NYSE: WPZ) is an industry-leading, large-cap natural gas infrastructure master limited partnership with a strong growth outlook and major positions in key U.S. supply basins and also in Canada. Williams Partners has operations across the natural gas value chain from gathering, processing and interstate transportation of natural gas and natural gas liquids to petchem production of ethylene, propylene and other olefins. Williams Partners owns and operates more than 33,000 miles of pipelines system wide – including the nation’s largest volume and fastest growing pipeline – providing natural gas for clean-power generation, heating and industrial use. Williams Partners’ operations touch approximately 30 percent of U.S. natural gas. Tulsa, Okla.-based Williams (NYSE: WMB), a premier provider of large-scale North American natural gas infrastructure, owns 60 percent of Williams Partners, including all of the 2 percent general-partner interest. www.williams.com Forward-Looking Statements The reports, filings, and other public announcements of Williams Partners L.P. (WPZ) may contain or incorporate by reference statements that do not directly or exclusively relate to historical facts. Such statements are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These forward-looking statements relate to anticipated financial performance, management’s plans and objectives for future operations, business prospects, outcome of regulatory proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this document that address activities, events or developments that we expect, believe or anticipate will exist or may occur in the future, are forward-looking statements. Forward-looking statements can be identified by various forms of words such as “anticipates,” “believes,” “seeks,” “could,” “may,” “should,” “continues,” “estimates,” “expects,” “forecasts,” “intends,” “might,” “goals,” “objectives,” “targets,” “planned,” “potential,” “projects,” “scheduled,” “will,” “assumes,” “guidance,” “outlook,” “in service date” or other similar expressions. These forward-looking statements are based on management’s beliefs and assumptions and on information currently available to management and include, among others, statements regarding: • The status, expected timing and expected outcome of the proposed ETC Merger; • Events which may occur subsequent to the proposed ETC Merger including events which directly impact our business; • Expected levels of cash distributions with respect to general partner interests, incentive distribution rights and limited partner interests; • Our and our affiliates’ future credit ratings; • Amounts and nature of future capital expenditures; • Expansion and growth of our business and operations; • Financial condition and liquidity; • Business strategy; • Cash flow from operations or results of operations; • Seasonality of certain business components; • Natural gas, natural gas liquids, and olefins prices, supply, and demand; and • Demand for our services. Forward-looking statements are based on numerous assumptions, uncertainties and risks that could cause future events or results to be materially different from those stated or implied in this document. Many of the factors that will determine these results are beyond our ability to control or predict. Specific factors that could cause actual results to differ from results contemplated by the forward-looking statements include, among others, the following: • The timing and likelihood of completion of the proposed ETC Merger, including the satisfaction of conditions to the completion of the proposed ETC Merger; • Energy Transfer’s plans for us, as well as the other master limited partnerships it currently controls, following the completion of the proposed ETC Merger; • Disruption from the proposed ETC Merger making it more difficult to maintain business and operational relationships; • Whether we have sufficient cash from operations to enable us to pay current and expected levels of cash distributions, if any, following the establishment of cash reserves and payment of fees and expenses, including payments to our general partner; • Availability of supplies, market demand and volatility of prices; • Inflation, interest rates, fluctuation in foreign exchange rates and general economic conditions (including future disruptions and volatility in the global credit markets and the impact of these events on customers and suppliers); • The strength and financial resources of our competitors and the effects of competition; • Whether we are able to successfully identify, evaluate and execute investment opportunities; • Our ability to acquire new businesses and assets and successfully integrate those operations and assets into our existing businesses as well as successfully expand our facilities; • Development of alternative energy sources; • The impact of operational and developmental hazards and unforeseen interruptions; • Costs of, changes in, or the results of laws, government regulations (including safety and environmental regulations), environmental liabilities, litigation, and rate proceedings; • Williams’ costs and funding obligations for defined benefit pension plans and other postretirement benefit plans; • Our allocated costs for defined benefit pension plans and other postretirement benefit plans sponsored by our affiliates; • Changes in maintenance and construction costs; • Changes in the current geopolitical situation; • Our exposure to the credit risk of our customers and counterparties; • Risks related to financing, including restrictions stemming from debt agreements, future changes in credit ratings as determined by nationally-recognized credit rating agencies and the availability and cost of capital; • The amount of cash distributions from and capital requirements of our investments and joint ventures in which we participate; • Risks associated with weather and natural phenomena, including climate conditions; • Acts of terrorism, including cybersecurity threats and related disruptions; and • Additional risks described in our filings with the Securities and Exchange Commission (the “SEC”). Given the uncertainties and risk factors that could cause our actual results to differ materially from those contained in any forward-looking statement, we caution investors not to unduly rely on our forward-looking statements. We disclaim any obligations to and do not intend to update the above list or to announce publicly the result of any revisions to any of the forward-looking statements to reflect future events or developments. In addition to causing our actual results to differ, the factors listed above and referred to below may cause our intentions to change from those statements of intention set forth in this document. Such changes in our intentions may also cause our results to differ. We may change our intentions, at any time and without notice, based upon changes in such factors, our assumptions, or otherwise. Limited partner units are inherently different from the capital stock of a corporation, although many of the business risks to which we are subject are similar to those that would be faced by a corporation engaged in a similar business. You should carefully consider the risk factors referred to below in addition to the other information in this document. If any of the risks to which we are subject were actually to occur, our business, results of operations and financial condition could be materially adversely affected. In that case, we might not be able to pay distributions on our common units, the trading price of our common units could decline, and unitholders could lose all or part of their investment. Because forward-looking statements involve risks and uncertainties, we caution that there are important factors, in addition to those listed above, that may cause actual results to differ materially from those contained in the forward-looking statements. For a detailed discussion of those factors, see Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K filed with the SEC on February 25, 2015 and in Part II, Item 1A. Risk Factors in our Quarterly Reports on Form 10-Q available from our office or from our website at www.williams.com. Williams Partners L.P. (UNAUDITED) Access Midstream Northeast G&P Atlantic-Gulf West NGL & Petchem Services Other

TULSA, Okla.--(BUSINESS WIRE)--Williams Partners L.P. (NYSE: WPZ) today announced a regular quarterly cash distribution of $0.85 per unit for its common unitholders. The board of directors of the partnership's general partner has approved the quarterly cash distribution, which is payable on Nov. 13, 2015, to common unitholders of record at the close of business on Nov. 6. Third-Quarter Financial Results Williams Partners plans to report its third-quarter 2015 financial results after the market closes on Wednesday, Oct. 28. The partnership plans to host a conference call and live webcast on Thursday, Oct. 29, at 9 a.m. EDT. A limited number of phone lines will be available at 800-505-9568. International callers should dial (416) 204-9271. A link to the webcast, as well as replays of the webcast in both streaming and downloadable podcast formats, will be available for two weeks following the event at www.williams.com. This announcement is intended to be a qualified notice to nominees under Treasury Regulation Section 1.1446-4(b)(4) and (d). The partnership’s distributions to foreign investors, which are attributable to income that is effectively connected with a U.S. trade or business, are subject to withholding under U.S. law. In light of the uncertainty at the time of making distributions regarding the portion of any distribution that is attributable to income that is not effectively connected with a U.S. trade or business, we treat all of our distributions as attributable to U.S. operations. Accordingly, the entire amount of the partnership's distributions to foreign investors is subject to federal income tax withholding at the highest effective tax rate. Nominees, and not Williams Partners L.P., are treated as withholding agents responsible for withholding on the distributions received by them on behalf of foreign investors. About Williams Partners Williams Partners (NYSE: WPZ) is an industry-leading, large-cap natural gas infrastructure master limited partnership with a strong growth outlook and major positions in key U.S. supply basins and also in Canada. Williams Partners has operations across the natural gas value chain from gathering, processing and interstate transportation of natural gas and natural gas liquids to petchem production of ethylene, propylene and other olefins. Williams Partners owns and operates more than 33,000 miles of pipelines system wide – including the nation’s largest volume and fastest growing pipeline – providing natural gas for clean-power generation, heating and industrial use. Williams Partners’ operations touch approximately 30 percent of U.S. natural gas. Tulsa, Okla.-based Williams (NYSE: WMB), a premier provider of large-scale North American natural gas infrastructure, owns 60 percent of Williams Partners, including all of the 2 percent general-partner interest. www.williams.com Portions of this document may constitute “forward-looking statements” as defined by federal law. Although the partnership believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. Any such statements are made in reliance on the “safe harbor” protections provided under the Private Securities Reform Act of 1995. Additional information about issues that could lead to material changes in performance is contained in the partnership’s annual reports filed with the Securities and Exchange Commission.

TULSA, Okla.--(BUSINESS WIRE)--Williams Partners L.P. (NYSE: WPZ) today announced a regular quarterly cash distribution of $0.85 per unit for its common unitholders. The board of directors of the partnership's general partner has approved the quarterly cash distribution, which is payable on Aug. 13, 2015, to common unitholders of record at the close of business on Aug. 6. The cash distribution is consistent with the partnership’s previously announced guidance for a total 2015 annual distribution of $3.40 per unit. Second-Quarter Financial Results Williams Partners plans to report its second-quarter 2015 financial results after the market closes on Wednesday, July 29. The partnership plans to host a conference call and live webcast on Thursday, July 30, at 9:30 a.m. EDT. A limited number of phone lines will be available at 888-297-0360. International callers should dial (719) 457-2603. A link to the webcast, as well as replays of the webcast in both streaming and downloadable podcast formats, will be available for two weeks following the event at www.williams.com. This announcement is intended to be a qualified notice to nominees under Treasury Regulation Section 1.1446-4(b)(4) and (d). The partnership’s distributions to foreign investors, which are attributable to income that is effectively connected with a U.S. trade or business, are subject to withholding under U.S. law. In light of the uncertainty at the time of making distributions regarding the portion of any distribution that is attributable to income that is not effectively connected with a U.S. trade or business, we treat all of our distributions as attributable to U.S. operations. Accordingly, the entire amount of the partnership's distributions to foreign investors is subject to federal income tax withholding at the highest effective tax rate. Nominees, and not Williams Partners L.P., are treated as withholding agents responsible for withholding on the distributions received by them on behalf of foreign investors. About Williams Partners Williams Partners (NYSE: WPZ) is an industry-leading, large-cap natural gas infrastructure master limited partnership with a strong growth outlook and major positions in key U.S. supply basins and also in Canada. Williams Partners has operations across the natural gas value chain from gathering, processing and interstate transportation of natural gas and natural gas liquids to petchem production of ethylene, propylene and other olefins. Williams Partners owns and operates more than 33,000 miles of pipelines system wide – including the nation’s largest volume and fastest growing pipeline – providing natural gas for clean-power generation, heating and industrial use. Williams Partners’ operations touch approximately 30 percent of U.S. natural gas. Tulsa, Okla.-based Williams (NYSE: WMB), a premier provider of large-scale North American natural gas infrastructure, owns 60 percent of Williams Partners, including all of the 2 percent general-partner interest. www.williams.com Portions of this document may constitute “forward-looking statements” as defined by federal law. Although the partnership believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. Any such statements are made in reliance on the “safe harbor” protections provided under the Private Securities Reform Act of 1995. Additional information about issues that could lead to material changes in performance is contained in the partnership’s annual reports filed with the Securities and Exchange Commission.

TULSA, Okla.--(BUSINESS WIRE)--Williams Partners L.P. (NYSE: WPZ) today announced a regular quarterly cash distribution of $0.85 per unit for its common unitholders. The board of directors of the partnership's general partner has approved the quarterly cash distribution, which is payable on May 14, 2015, to common unitholders of record at the close of business on May 7. The cash distribution is consistent with the partnership’s distribution guidance for a total 2015 annual distribution of $3.40 per unit announced on Feb. 18. First Quarter Financial Results to be Announced April 29 Williams Partners plans to report its first-quarter 2015 financial results after the market closes on Wednesday, April 29. The partnership plans to host a conference call and live webcast on Thursday, April 30, at 9:30 a.m. EDT. A limited number of phone lines will be available at (800) 475-3716. International callers should dial (719) 457-2660. A link to the webcast, as well as replays of the webcast in both streaming and downloadable podcast formats, will be available for two weeks following the event at www.williams.com. This announcement is intended to be a qualified notice to nominees under Treasury Regulation Section 1.1446-4(b)(4) and (d). The partnership’s distributions to foreign investors, which are attributable to income that is effectively connected with a U.S. trade or business, are subject to withholding under U.S. law. In light of the uncertainty at the time of making distributions regarding the portion of any distribution that is attributable to income that is not effectively connected with a U.S. trade or business, we treat all of our distributions as attributable to U.S. operations. Accordingly, the entire amount of the partnership's distributions to foreign investors is subject to federal income tax withholding at the highest effective tax rate. Nominees, and not Williams Partners L.P., are treated as the withholding agents responsible for withholding on the distributions received by them on behalf of foreign investors. About Williams Partners Williams Partners (NYSE: WPZ) is an industry-leading, large-cap natural gas infrastructure master limited partnership with a strong growth outlook and major positions in key U.S. supply basins and also in Canada. Williams Partners has operations across the natural gas value chain from gathering, processing and interstate transportation of natural gas and natural gas liquids to petchem production of ethylene, propylene and other olefins. Williams Partners owns and operates more than 33,000 miles of pipelines system wide – including the nation’s largest volume and fastest growing pipeline – providing natural gas for clean-power generation, home heating and industrial use. Williams Partners’ operations touch approximately 30 percent of U.S. natural gas. Tulsa, Okla.-based Williams (NYSE: WMB), a premier provider of large-scale North American natural gas infrastructure, owns 60 percent of Williams Partners, including the general-partner interest. www.williams.com Portions of this document may constitute “forward-looking statements” as defined by federal law. Although the partnership believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. Any such statements are made in reliance on the “safe harbor” protections provided under the Private Securities Reform Act of 1995. Additional information about issues that could lead to material changes in performance is contained in the partnership’s annual reports filed with the Securities and Exchange Commission.

TULSA, Okla.--(BUSINESS WIRE)--Williams Partners L.P. (NYSE: WPZ) and Access Midstream Partners, L.P. (NYSE: ACMP) today announced that the merged master limited partnership’s first quarterly cash distribution will be $0.85 per unit for common unitholders. The previously announced merger of Williams Partners into a subsidiary of Access Midstream Partners in a unit-for-unit exchange is expected to close Feb. 2, 2015. The quarterly cash distribution is payable on Feb. 13 to common unitholders of record at the close of business on Feb. 9. Following the closing of the merger, it is anticipated that Access Midstream Partners will change its name to Williams Partners L.P. and that its units will trade under the symbol “WPZ.” The merged master limited partnership intends to provide updated financial guidance on or before Feb. 18. Williams (NYSE: WMB) owns controlling interests in the two master limited partnerships. Fourth-Quarter and Year-end 2014 Financial Results Williams and the merged master limited partnership plan to jointly host a conference call and live webcast on Thursday, Feb. 19, at 9:30 a.m. EST following the announcement of their fourth-quarter and year-end 2014 financial results after the market closes on Wednesday, Feb. 18. A limited number of phone lines will be available at (800) 768-6570. International callers should dial (785) 830-1942. A link to the webcast, as well as replays of the webcast in both streaming and downloadable podcast formats, will be available for two weeks following the event at www.williams.com. About Williams, Williams Partners and Access Midstream Partners Headquartered in Tulsa, Okla., Williams is one of the leading energy infrastructure companies in North America. It owns controlling interests in both Williams Partners L.P. and Access Midstream Partners, L.P. through its 100-percent ownership of the general partner of each partnership. Additionally, Williams owns approximately 66 percent and 50 percent of the limited partner units of Williams Partners L.P. and Access Midstream Partners, L.P., respectively. Williams Partners owns and operates both onshore and offshore assets of approximately 15,000 miles of interstate natural gas pipelines, 1,800 miles of NGL transportation pipelines, an additional 11,000 miles of oil and gas gathering pipelines and numerous other energy infrastructure assets. Williams Partners’ operated facilities have daily gas gathering capacity of approximately 11 billion cubic feet, processing capacity of approximately 7 billion cubic feet, NGL production of more than 400,000 barrels per day and domestic olefins production capacity of 1.95 billion pounds of ethylene and 90 million pounds of propylene per year. Access Midstream Partners owns and operates natural gas midstream assets across nine states, with an average net throughput of approximately 4.13 billion cubic feet per day and more than 6,773 miles of natural gas gathering pipelines. ACMP’s operations are focused on the Barnett, Eagle Ford, Haynesville, Marcellus, Niobrara and Utica Shales and the Mid-Continent region of the U.S. For more information about Williams, Williams Partners and Access Midstream Partners, visit the Investor Center at www.williams.com. This announcement is intended to be a qualified notice to nominees under Treasury Regulation Section 1.1446-4(b)(4) and (d). The partnership’s distributions to foreign investors, which are attributable to income that is effectively connected with a U.S. trade or business, are subject to withholding under U.S. law. In light of the uncertainty at the time of making distributions regarding the portion of any distribution that is attributable to income that is not effectively connected with a U.S. trade or business, we treat all of our distributions as attributable to U.S. operations. Accordingly, the entire amount of the partnership's distributions to foreign investors is subject to federal income tax withholding at the highest effective tax rate. Nominees, and not Williams Partners L.P., are treated as the withholding agents responsible for withholding on the distributions received by them on behalf of foreign investors. Portions of this document may constitute “forward-looking statements” as defined by federal law. Although the company believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. Any such statements are made in reliance on the “safe harbor” protections provided under the Private Securities Reform Act of 1995. Additional information about issues that could lead to material changes in performance is contained in the company’s annual reports filed with the Securities and Exchange Commission.