Williams Energy Partners L.P. Issues First Earnings Report

Apr 24, 2001, 01:00 ET from Williams Energy Partners L.P.

    TULSA, Okla., April 24 /PRNewswire Interactive News Release/ -- Williams
 Energy Partners L.P. (NYSE:   WEG) today announced earnings for the period
 Feb. 10 through March 31, 2001.  The initial public offering of common units
 in the partnership closed on Feb. 9.
     Net income for the 50-day partial first quarter was $4.1 million, or
 $0.36 per unit on a fully diluted basis.  Cash from operating activities for
 the partial quarter was $10.5 million, or $0.92 per unit.  The average number
 of common and subordinated units outstanding for the period was 11.4 million.
     "As expected, we are profitably out of the gate and are already seeing the
 kinds of growth opportunities anticipated in our strategy," said Phil Wright,
 president of Williams Energy Partners L.P.  "Our earnings and distributable
 cash flow are right on target with what we anticipated during the time of our
 initial public offering.  The abundance of opportunities for accretive
 transactions and projects cause us to be optimistic about our ability to
 achieve rapid growth."
     Comparing the full 90-day first quarter 2001, including the period
 Jan. 1 through Feb. 9 before the initial public offering, to the first quarter
 of 2000, revenues increased 13 percent from $17.9 million in 2000 to
 $20.3 million in 2001.  Revenues from the partnership's terminaling operations
 increased $3.3 million due to a marine terminal acquisition in the fourth
 quarter of 2000 and to overall higher utilization rates at the marine
 terminals.  A reduction in ammonia transportation revenues of $0.9 million
 partially offset the increase in terminaling revenues.  Ammonia transportation
 revenues decreased due to lower fertilizer demand resulting from higher prices
 for natural gas, which is the primary feedstock for ammonia production.  The
 decrease was also due to wet weather in the upper midwestern agricultural
 corridor, which delayed ammonia fertilizer applications.
     Operating profit for the full first quarter of 2001 compared to the first
 quarter of 2000 increased 3 percent from $6.6 million in 2000 to $6.8 million
 in 2001.  Operating expenses increased during the period by $1.3 million
 primarily due to a marine terminal acquisition in the fourth quarter of 2000,
 including costs to bring the acquired facilities into compliance with
 Williams' safety and environmental policies, and due to higher energy costs.
     An investor conference call with management regarding first-quarter
 results is scheduled for this morning at 10 a.m. Eastern/9 a.m. Central.  To
 participate, call 1-800-521-5428 and request "WEG Earnings Call."  This event
 may also be accessed through www.williams.com by clicking on "investors."
     Williams Energy Partners' asset portfolio includes four marine petroleum
 product terminal facilities, three located along the U.S. Gulf Coast and one
 located near the New York Harbor.  The aggregate storage capacity of these
 terminals is in excess of 17.6 million barrels.  The portfolio also includes
 24 inland terminals that form a distribution network for gasoline and other
 refined petroleum products throughout the southeastern United States.  The
 partnership also owns an ammonia pipeline and terminals system that extends
 for approximately 1,100 miles from Texas and Oklahoma to Minnesota.
 
     About Williams Energy Partners L.P.
     Williams Energy Partners L.P. was formed to own, operate and acquire a
 diversified portfolio of energy assets.  The partnership is engaged
 principally in the storage, transportation and distribution of refined
 petroleum products and ammonia.  The general partner of WEG is Williams
 (NYSE:   WMB), which specializes in a broad array of energy-related services,
 including energy marketing and trading and natural gas pipeline
 transportation.
 
     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 Form
 10-K for the year 2000 filed with the Securities and Exchange Commission.
 This news release is not an offer to sell, nor the solicitation of any offer
 to buy, any securities.  Any offer will be made only by means of a prospectus
 that would be registered with the Securities and Exchange Commission.
 
 
                         WILLIAMS ENERGY PARTNERS L.P.
                   UNAUDITED CONSOLIDATED STATEMENT OF INCOME
                     (In millions, except per unit amounts)
 
                                              Three Months Ended March 31,
                                               2001                2000
                                            (Full Qtr)
 
     Revenues                                 $ 20.3              $ 17.9
 
     Operating Expenses                          8.1                 6.8
     Depreciation                                3.1                 2.1
     G&A Expense                                 2.3                 2.4
                                                13.5                11.3
 
     Operating Profit                            6.8                 6.6
     Interest Expense                            2.7                 3.1
                                                 4.1                 3.5
 
     Provision for Income Taxes                  ---                 1.3
 
     Net Income                               $  4.1              $  2.2
 
 
     Allocation of first quarter 2001
      net income:
       Portion applicable to the period
        January 1 through February 9, 2001    $ (0.1)
       Portion applicable to the period
        February 10 through March 31, 2001       4.2
         Net income                           $  4.1
 
     General partners' interest in income
      applicable to the period February 10
      through March 31, 2001                  $  0.1
 
     Limited partners' interest in income
      applicable to the period February 10
      through March 31, 2001                  $  4.1
 
     Basic and diluted net income per
      limited partner unit                    $ 0.36
 
     Weighted average number of units
      outstanding                               11.4
 
 
                         WILLIAMS ENERGY PARTNERS L.P.
 
      OPERATING STATISTICS
 
                                               Full 1st Quarter  1st Quarter
                                                     2001            2000
 
     Petroleum product terminals:
 
       Marine terminal average storage
        capacity utilized per month
        (million barrels)                            15.2            11.7
 
       Marine terminal throughput (million barrels)   2.7             ---
 
       Inland terminal throughput (million barrels)  11.7            12.6
 
     Ammonia pipeline & terminals system:
 
       Volume shipped (thousand tons)                 160             233
 
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SOURCE Williams Energy Partners L.P.
    TULSA, Okla., April 24 /PRNewswire Interactive News Release/ -- Williams
 Energy Partners L.P. (NYSE:   WEG) today announced earnings for the period
 Feb. 10 through March 31, 2001.  The initial public offering of common units
 in the partnership closed on Feb. 9.
     Net income for the 50-day partial first quarter was $4.1 million, or
 $0.36 per unit on a fully diluted basis.  Cash from operating activities for
 the partial quarter was $10.5 million, or $0.92 per unit.  The average number
 of common and subordinated units outstanding for the period was 11.4 million.
     "As expected, we are profitably out of the gate and are already seeing the
 kinds of growth opportunities anticipated in our strategy," said Phil Wright,
 president of Williams Energy Partners L.P.  "Our earnings and distributable
 cash flow are right on target with what we anticipated during the time of our
 initial public offering.  The abundance of opportunities for accretive
 transactions and projects cause us to be optimistic about our ability to
 achieve rapid growth."
     Comparing the full 90-day first quarter 2001, including the period
 Jan. 1 through Feb. 9 before the initial public offering, to the first quarter
 of 2000, revenues increased 13 percent from $17.9 million in 2000 to
 $20.3 million in 2001.  Revenues from the partnership's terminaling operations
 increased $3.3 million due to a marine terminal acquisition in the fourth
 quarter of 2000 and to overall higher utilization rates at the marine
 terminals.  A reduction in ammonia transportation revenues of $0.9 million
 partially offset the increase in terminaling revenues.  Ammonia transportation
 revenues decreased due to lower fertilizer demand resulting from higher prices
 for natural gas, which is the primary feedstock for ammonia production.  The
 decrease was also due to wet weather in the upper midwestern agricultural
 corridor, which delayed ammonia fertilizer applications.
     Operating profit for the full first quarter of 2001 compared to the first
 quarter of 2000 increased 3 percent from $6.6 million in 2000 to $6.8 million
 in 2001.  Operating expenses increased during the period by $1.3 million
 primarily due to a marine terminal acquisition in the fourth quarter of 2000,
 including costs to bring the acquired facilities into compliance with
 Williams' safety and environmental policies, and due to higher energy costs.
     An investor conference call with management regarding first-quarter
 results is scheduled for this morning at 10 a.m. Eastern/9 a.m. Central.  To
 participate, call 1-800-521-5428 and request "WEG Earnings Call."  This event
 may also be accessed through www.williams.com by clicking on "investors."
     Williams Energy Partners' asset portfolio includes four marine petroleum
 product terminal facilities, three located along the U.S. Gulf Coast and one
 located near the New York Harbor.  The aggregate storage capacity of these
 terminals is in excess of 17.6 million barrels.  The portfolio also includes
 24 inland terminals that form a distribution network for gasoline and other
 refined petroleum products throughout the southeastern United States.  The
 partnership also owns an ammonia pipeline and terminals system that extends
 for approximately 1,100 miles from Texas and Oklahoma to Minnesota.
 
     About Williams Energy Partners L.P.
     Williams Energy Partners L.P. was formed to own, operate and acquire a
 diversified portfolio of energy assets.  The partnership is engaged
 principally in the storage, transportation and distribution of refined
 petroleum products and ammonia.  The general partner of WEG is Williams
 (NYSE:   WMB), which specializes in a broad array of energy-related services,
 including energy marketing and trading and natural gas pipeline
 transportation.
 
     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 Form
 10-K for the year 2000 filed with the Securities and Exchange Commission.
 This news release is not an offer to sell, nor the solicitation of any offer
 to buy, any securities.  Any offer will be made only by means of a prospectus
 that would be registered with the Securities and Exchange Commission.
 
 
                         WILLIAMS ENERGY PARTNERS L.P.
                   UNAUDITED CONSOLIDATED STATEMENT OF INCOME
                     (In millions, except per unit amounts)
 
                                              Three Months Ended March 31,
                                               2001                2000
                                            (Full Qtr)
 
     Revenues                                 $ 20.3              $ 17.9
 
     Operating Expenses                          8.1                 6.8
     Depreciation                                3.1                 2.1
     G&A Expense                                 2.3                 2.4
                                                13.5                11.3
 
     Operating Profit                            6.8                 6.6
     Interest Expense                            2.7                 3.1
                                                 4.1                 3.5
 
     Provision for Income Taxes                  ---                 1.3
 
     Net Income                               $  4.1              $  2.2
 
 
     Allocation of first quarter 2001
      net income:
       Portion applicable to the period
        January 1 through February 9, 2001    $ (0.1)
       Portion applicable to the period
        February 10 through March 31, 2001       4.2
         Net income                           $  4.1
 
     General partners' interest in income
      applicable to the period February 10
      through March 31, 2001                  $  0.1
 
     Limited partners' interest in income
      applicable to the period February 10
      through March 31, 2001                  $  4.1
 
     Basic and diluted net income per
      limited partner unit                    $ 0.36
 
     Weighted average number of units
      outstanding                               11.4
 
 
                         WILLIAMS ENERGY PARTNERS L.P.
 
      OPERATING STATISTICS
 
                                               Full 1st Quarter  1st Quarter
                                                     2001            2000
 
     Petroleum product terminals:
 
       Marine terminal average storage
        capacity utilized per month
        (million barrels)                            15.2            11.7
 
       Marine terminal throughput (million barrels)   2.7             ---
 
       Inland terminal throughput (million barrels)  11.7            12.6
 
     Ammonia pipeline & terminals system:
 
       Volume shipped (thousand tons)                 160             233
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X15780198
 
 SOURCE  Williams Energy Partners L.P.