Williams Partners Cuts Planned Investments by $1.2 Billion

By Anne Steele 

Natural-gas pipeline company Williams Cos. on Monday said its Williams Partners affiliate cut its planned investment expenditures by about one third from previous estimates to $2.1 billion amid tough energy market conditions.

Shares of Williams Cos., which have erased more than half their value over the past 12 months, slipped another 3.6% premarket to $19.04. Shares of Williams Partners were unchanged at $21.45.

The company said the move is a result of project deferrals, delays and cancellations brought on by the current commodity price environment and sharply higher capital costs.

Including consolidated joint ventures, the company said it cut its planned growth capital by $1.2 billion to $2.1 billion.

Williams Chief Executive Alan Armstrong said the company continues to focus on demand-driven projects serving long-term distribution needs.

"Our revised capital plan addresses the realities of our current market environment while continuing to invest in the growing demand side of our business," he said.

Williams Partners said it plans to eliminate 2016 equity needs with planned asset monetizations in excess of $1 billion during the first half of 2016, and doesn't plan to issue public equity or public debt in 2016.

The company said volumes grew across natural gas gathering and processing operations in the northeast and remained stable in the west during the fourth quarter. It plans to report full results Feb. 17.

Earlier this month, Williams Cos. said it remained committed to completing its merger agreement with Energy Transfer Equity LP, amid investors' concerns that the deal would fall apart. Williams last year resisted Energy Transfer's initial buyout overture but eventually accepted a lesser price amid slumping energy stocks. Energy companies had a rough ride in 2015, with natural gas and oil prices plummeting.

Write to Anne Steele at [e-mail]

(END) Dow Jones Newswires

January 25, 2016 09:19 ET (14:19 GMT)

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