Williams Partners L.P. Reports Fourth-Quarter and Full-Year 2007 Financial Results

- Partnership's Growth, Solid Performance Drive 20% Increase in Distributable Cash Flow per Unit in 2007





TULSA, Okla., Feb. 21  /PRNewswire-FirstCall/ -- Williams Partners L.P. (NYSE:WPZ) today announced unaudited 2007 net income of $164.6 million, or $1.97 per common unit, compared with 2006 net income of $214.6 million and $1.62 per common unit.

Net income per common unit for 2007 was higher due primarily to the growth of the partnership through its 2006 acquisition of Four Corners and higher equity earnings from Discovery, partially offset by higher interest expense and additional units outstanding.

However, net income for 2007, which includes pre-partnership income allocated to the general partner in association with the partnership's acquisitions, was lower than the recast 2006 net income due primarily to interest expense associated with the Four Corners and Wamsutter acquisitions.

For fourth-quarter 2007, Williams Partners reported net income of $44.9 million, or 56 cents per common unit, compared with $46.3 million and 45 cents per common unit for fourth-quarter 2006.

Fourth-quarter 2007 net income per common unit was higher than fourth-quarter 2006 also due to the growth of the partnership.  The growth was partially offset by lower volumes in Four Corners following the Nov. 28 fire and subsequent shut-down of the Ignacio natural gas processing plant, a $10.4 million non-cash impairment charge on the Carbonate Trend gathering pipeline and higher interest expense.

In 2007, the key measure of distributable cash flow per weighted-average limited partner unit was $2.59, compared with $2.15 for 2006 -- an increase of 20 percent.  Total distributable cash flow in 2007 for limited-partner unitholders was $103.7 million, compared with $42.5 million for 2006.

The increase in distributable cash flow during 2007 is due to the growth of the partnership through its 2006 acquisition of Four Corners, its 2007 acquisition of an additional 20 percent interest in Discovery, and the partnership's steady business performance.

For fourth-quarter 2007, distributable cash flow per weighted-average limited partner unit was 63 cents, compared with 62 cents for fourth-quarter 2006.  Total distributable cash flow for limited-partner unitholders totaled $26.6 million in fourth-quarter 2007, compared with $15.8 million for fourth-quarter 2006.

The slight increase in distributable cash flow during the fourth quarter is also due to the growth of the partnership and its business performance. These benefits were partially offset by lower volumes at Four Corners, due to the Ignacio fire.

The partnership's issuance of 13.4 million common units in the fourth-quarter 2007 to fund a portion of the Wamsutter acquisition also reduced the per-unit distributable cash flow amounts in the fourth-quarter 2007 and full-year.

Because the units were issued and the acquisition closed in December 2007, the partnership has not yet received a cash distribution from its equity investment in Wamsutter.  As such, fourth-quarter distributable cash flow did not include any benefit from the investment.  The Wamsutter investment will make its first scheduled cash distribution to the partnership in the first quarter of 2008.

Business Segment Performance

Business segment performance includes results for the partnership's three business segments: Gathering and Processing -- West, which includes Four Corners and the Wamsutter investment; Gathering and Processing -- Gulf, which includes the Discovery investment; and NGL Services, which includes the Conway fractionation and storage complex.

The segment profit numbers have been recast to include Wamsutter through all periods presented following the partnership's fourth-quarter acquisition of an ownership interest in the assets.

  Consolidated Segment Profit                 4Q              Full Year
  Amounts in thousands                  2007      2006      2007      2006

  Gathering and Processing - West     $62,486   $53,349   $223,903  $221,499
  Gathering and Processing - Gulf       2,447     2,310     17,431    17,845
  NGL Services                          4,689     3,623     14,305     9,834

  Consolidated Segment Profit         $69,622   $59,282   $255,639  $249,178

  Recurring Consolidated Segment Profit*
  Amounts in thousands

  Gathering and Processing - West     $63,486   $53,349   $227,292  $213,980
  Gathering and Processing - Gulf      12,847     2,310     27,831    17,845
  NGL Services                          4,689     3,623     15,742     9,834

  Recurring Consolidated Segment
   Profit*                            $81,022   $59,282   $270,865  $241,659



* A schedule reconciling segment profit to recurring segment profit is attached to this press release.

Williams Partners' consolidated recurring segment profit for 2007 was $270.9 million, compared with $241.7 million for 2006.

Recurring segment profit for Gathering & Processing -- West was $227.3 million in 2007, compared with $214 million in 2006.  The increase in recurring segment profit was primarily the result of higher NGL margins at Four Corners and higher equity earnings from Wamsutter, also due to higher NGL margins.  These benefits were partially offset by lower volumes in Four Corners due to the Ignacio fire and higher operating and maintenance expenses.

Recurring segment profit for the Gathering & Processing -- Gulf segment was $27.8 million in 2007, compared with $17.9 million in 2006.  Increased equity earnings from the partnership's Discovery interest were the primary driver of the improvement.  Discovery's equity earnings increased due to higher gross processing margins and higher gathered volumes for the year.

NGL Services reported recurring segment profit of $15.8 million for 2007, compared with $9.8 million for 2006.  The increase in segment profit was due primarily to higher storage and product upgrade fee revenues and lower operating and maintenance expense.

Reconciliations of the partnership's distributable cash flow for limited-partner unitholders to net income, as well as recurring segment profit to segment profit, accompany this press release.

Chief Operating Officer Perspective

"The partnership had a solid performance in 2007," said Alan Armstrong, chief operating officer of the general partner of Williams Partners.  "The core assets performed well and our two acquisitions -- the additional interest in Discovery and Wamsutter -- provide a foundation for future growth.

"In particular, the fourth-quarter acquisition of an interest in the Wamsutter system should be a key driver in the partnership's future growth. Wamsutter includes large-scale assets in a high-growth natural gas basin. This investment will increase the diversity of our cash flows and reduce our dependence on commodity margins.

"We also continued to increase our cash distributions in 2007 and our coverage ratio remains strong," Armstrong said.

Increase in Cash Distribution to Unitholders

Subsequent to the close of the fourth quarter, the board of directors of the general partner of Williams Partners increased the quarterly cash distribution payable to unitholders to 57.5 cents from 55 cents.  This was the eighth consecutive quarter the partnership increased its cash distribution.

For 2007, Williams Partners' total cash distribution to unitholders was $2.15 per unit, compared with $1.725 per unit in 2006 -- an increase of 25 percent.

Distributable Cash Flow and Recurring Segment Profit Definitions

Distributable cash flow per weighted average limited-partner unit is a key measure of the partnership's financial performance and available cash flows to unitholders.

Williams Partners defines distributable cash flow per limited partner unit as distributable cash flow, as defined in the following paragraph, attributable to partnership operations plus the cash distributed by Wamsutter and Discovery.  The total distributable cash flow attributable to partnership operations is then allocated among the general partner and the limited partners in accordance with the cash-distribution provisions of our partnership agreement.  The resulting distributable cash flow attributable to partnership operations and to its limited partners is then divided by the weighted average limited partner units outstanding to arrive at distributable cash flow per limited partner unit.

Williams Partners defines distributable cash flow as net income plus depreciation, amortization and accretion, and the amortization of a natural gas purchase contract, less its equity earnings in Wamsutter and Discovery, as well as adjustments for certain non-cash, non-recurring items, plus reimbursements from Williams under an omnibus agreement and less maintenance capital expenditures.

Williams Partners defines recurring segment profit as segment profit excluding items of income or loss that it characterizes as unrepresentative of its ongoing operations.  Schedules presenting Williams Partners' consolidated statements of income, segment profit and operating information are available on Williams Partners' web site at http://www.williamslp.com/ and as an attachment to this document.

Today's Analyst Call

Williams Partners' management will discuss the partnership's year-end financial results during an analyst presentation to be webcast live beginning at noon Eastern today.

Participants are encouraged to access the presentation and corresponding slides via http://www.williamslp.com/.  A limited number of phone lines also will be available at [phone]. International callers should dial [phone].  Callers should dial in at least 10 minutes prior to the start of the discussion.  A replay of the year-end webcast will be available for two weeks at http://www.williamslp.com/.

Form 10-K

The partnership plans to file its Form 10-K with the Securities and Exchange Commission during the week of Feb. 25.  The document will be available on both the SEC and Williams Partners web sites.

About Williams Partners L.P. (NYSE:WPZ)

Williams Partners L.P. is a publicly traded master limited partnership that owns natural gas gathering, transportation, processing and treating assets serving regions where producers require large scale and highly reliable services, including the Gulf of Mexico, the San Juan Basin in New Mexico and Colorado, and the Washakie Basin in Wyoming.  The partnership also serves the natural gas liquids (NGL) market through its NGL fractionating and storage assets.  The general partner is Williams Partners GP LLC.  More information about the partnership is available at http://www.williamslp.com.  Go to http://www.b2i.us/irpass.asp?BzID=1296&to=ea&s=0 to join our e-mail list.

   Contact:  Jeff Pounds
             Williams (media relations)
             [phone]

             Sharna Reingold
             Williams (investor relations)
             [phone]



Williams Partners' reports, filings and other public announcements might contain or incorporate by reference forward-looking statements -- statements that do not directly or exclusively relate to historical facts. You typically can identify forward-looking statements by the use of forward-looking words, such as "anticipate," believe," "could," "continue," "estimate," "expect," "forecast," "may," "plan," "potential," "project," "schedule," "will" and other similar words. These statements are based on our intentions, beliefs and assumptions about future events and are subject to risks, uncertainties and other factors. Actual results could differ materially from those contemplated by the forward-looking statements. In addition to any assumptions, risks, uncertainties and other factors referred to specifically in connection with such statements, other factors could cause our actual results to differ materially from the results expressed or implied in any forward-looking statements. Those risks, uncertainties and factors include, among others: Williams Partners may not have sufficient cash from operations to enable it to pay the minimum quarterly distribution following establishment of cash reserves and payment of fees and expenses, including payments to its general partner; because of the natural decline in production from existing wells and competitive factors, the success of Williams Partners' gathering and transportation businesses depends on its ability to connect new sources of natural gas supply, which is dependent on factors beyond its control; any decrease in supplies of natural gas could adversely affect Williams Partners' business and operating results; Williams Partners' processing, fractionation and storage business could be affected by any decrease in the price of natural gas liquids or a change in the price of natural gas liquids relative to the price of natural gas; lower natural gas and oil prices could adversely affect Williams Partners' fractionation and storage businesses; Williams Partners depends on certain key customers and producers for a significant portion of its revenues and supply of natural gas and natural gas liquids and the loss of any of these key customers or producers could result in a decline in its revenues and cash available to pay distributions; if third-party pipelines and other facilities interconnected to Williams Partners' pipelines and facilities become unavailable to transport natural gas and natural gas liquids or to treat natural gas, Williams Partners' revenues and cash available to pay distributions could be adversely affected; Discovery Producer Services LLC and Wamsutter LLC may reduce their cash distributions to Williams Partners in some situations; Williams Partners' future financial and operating flexibility may be adversely affected by restrictions in its indentures and by its leverage; Williams Partners' partnership agreement limits its general partner's fiduciary duties to Williams Partner's unitholders and restricts the remedies available to unitholders for actions taken by the general partner that might otherwise constitute breaches of fiduciary duty; even if unitholders are dissatisfied, they currently have little ability to remove Williams Partners' general partner without its consent; The Williams Companies, Inc.'s public indentures and Williams Partners' credit facility contain financial and operating restrictions that may limit Williams Partners' access to credit; in addition, Williams Partners' ability to obtain credit in the future will be affected by The Williams Companies Inc.'s credit ratings; Williams Partners' general partner and its affiliates have conflicts of interest and limited fiduciary duties and they may favor their own interests to the detriment of Williams Partners' unitholders; unitholders will be required to pay taxes on their share of Williams Partners' income even if they do not receive any cash distributions from Williams Partners; and Williams Partners' operations are subject to operational hazards and unforeseen interruptions for which it may or may not be adequately insured. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than we have described. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Investors are urged to closely consider the disclosures and risk factors in Williams Partners' reports on Forms 10-K and 10-Q filed with the Securities and Exchange Commission available from Williams Partners' offices or from Williams Partners' website at http://www.williamslp.com.

  Reconciliation of Non-GAAP Measures
  (UNAUDITED)



This press release includes certain financial measures, Recurring Segment Profit, Distributable Cash Flow and Distributable Cash Flow per Limited Partner Unit that are non-GAAP financial measures as defined under the rules of the Securities and Exchange Commission.

For Williams Partners L.P., Recurring Segment Profit excludes items of income or loss that we characterize as unrepresentative of our ongoing operations.  Management believes Recurring Segment Profit provides investors meaningful insight into Williams Partners L.P.'s results from ongoing operations.

For Williams Partners L.P. we define Distributable Cash Flow as net income (loss) plus the non-cash affiliate interest expense associated with the advances from affiliate that were forgiven by Williams, depreciation, amortization and accretion, and the amortization of a natural gas purchase contract, less our earnings from equity investments, as well as adjustments for certain non-cash, non-recurring items, plus reimbursements from Williams under an omnibus agreement and less maintenance capital expenditures.  For our equity investments, Wamsutter and Discovery, we define Distributable Cash Flow as net income (loss) plus depreciation, amortization and accretion and less maintenance capital expenditures.  We also adjust for certain non-cash, non-recurring items.  Our equity share of Wamsutter's Distributable Cash Flow is based on the distribution provision of the Wamsutter LLC Agreement.  Our equity share of Discovery's Distributable Cash Flow is 60%.

For Williams Partners L.P. we define Distributable Cash Flow per Limited Partner Unit as Distributable Cash Flow, as defined in the preceding paragraph, attributable to partnership operations plus the actual cash distributed by Wamsutter and Discovery.  The total Distributable Cash Flow attributable to partnership operations is then allocated between the general partner and the limited partners in accordance with the cash distribution provisions of our partnership agreement.  The resulting Distributable Cash Flow attributable to partnership operations and to its limited partners is then divided by the weighted average limited partner units outstanding to arrive at Distributable Cash Flow per Limited Partner Unit.

This press 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 Recurring Segment Profit nor Distributable Cash Flow are intended to represent cash flows for the period, nor are they presented as an alternative to net income (loss) or cash flow from operations.  Distributable Cash Flow per Limited Partner is not presented as an alternative to net income per unit.  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.

  (Thousands, except per-unit amounts)
                                                 2006*
                             1st Qtr   2nd Qtr  3rd Qtr   4th Qtr     Y-T-D

  Williams Partners L.P.
  Reconciliation of
  Non-GAAP "Recurring
  Segment Profit" to
  GAAP "Segment Profit"

  Gathering and
   Processing - West         $45,994   $55,505  $66,651   $53,349  $221,499
  Gathering and
   Processing - Gulf           5,860     3,659    6,016     2,310    17,845

  NGL Services                 2,050     1,984    2,177     3,623     9,834

  Segment Profit              53,904    61,148   74,844    59,282   249,178

    Non-recurring Items:
      Gathering
       and Processing - West
        2001-2002 EFM
         fees adjustment,
         revenue effect            -         -        -         -         -
        2001-2002 EFM
         fees adjustment,
         depreciation effect       -         -        -         -         -
        Condensate revenue
         adjustment                -    (1,900)       -         -    (1,900)
          2005-2006 retroactive
           charges for customer
           contract                -         -        -         -         -
          Adjust right-of-way
           prepaid expense         -         -        -         -         -
          Adjust 2006 incentive
           compensation accrual    -         -        -         -         -
          Adjust asset
           retirement
           obligation              -         -        -         -         -
          Adjust other
           accounts payable
           items              (3,300)     (700)   2,000         -    (2,000)

      NGL Services
          Product imbalance
           valuation adjustment    -         -        -         -         -

    Other items:
      Gathering
       and Processing - West
        Gain on sale of
         LaMaquina treating
         facility             (3,619)        -        -        -     (3,619)
        Ignacio fire property
         insurance deductible      -         -        -        -          -

      Gathering
       and Processing - Gulf
        Impairment of
         Carbonate Trend
         gathering pipeline        -         -        -        -          -

  Recurring Segment Profit   $46,985   $58,548  $76,844  $59,282   $241,659


  (Thousands, except per-unit amounts)
                                                 2007*
                             1st Qtr   2nd Qtr  3rd Qtr  4th Qtr      Y-T-D

  Williams Partners L.P.
  Reconciliation of
  Non-GAAP "Recurring
  Segment Profit" to
  GAAP "Segment Profit"

  Gathering and
   Processing - West         $42,604   $59,181  $59,632  $62,486   $223,903
  Gathering and
   Processing - Gulf           3,638     3,670    7,676    2,447     17,431
  NGL Services                    53     5,606    3,957    4,689     14,305

  Segment Profit              46,295    68,457   71,265   69,622    255,639
    Non-recurring Items:
      Gathering
       and Processing - West
        2001-2002 EFM
         fees adjustment,
         revenue effect            -         -    3,464        -      3,464
        2001-2002 EFM
         fees adjustment,
         depreciation effect       -         -   (1,356)       -     (1,356)
        Condensate revenue
         adjustment                -         -        -        -          -
          2005-2006 retroactive
           charges for customer
           contract             (848)        -        -        -       (848)
          Adjust right-of-way
           prepaid expense     1,243         -        -        -      1,243
          Adjust 2006 incentive
           compensation accrual (899)        -        -        -       (899)
          Adjust asset
           retirement
           obligation            785         -        -        -        785
          Adjust other
           accounts payable
           items                   -         -        -        -          -

      NGL Services
        Product imbalance
         valuation
         adjustment            1,437         -        -        -      1,437

    Other items:
      Gathering
       and Processing - West
        Gain on sale of
         LaMaquina treating
         facility                  -         -        -        -          -
        Ignacio fire property
         insurance deductible      -         -        -    1,000      1,000
      Gathering
       and Processing - Gulf
        Impairment of
         Carbonate Trend
         gathering pipeline        -         -        -   10,400     10,400

  Recurring Segment Profit   $48,013   $68,457  $73,373  $81,022   $270,865



* Because Four Corners, Wamsutter and the additional 20% interest in Discovery were affiliates of Williams at the time of these acquisitions, the transactions were between entities under common control, and have been accounted for at historical cost.  Accordingly, these tables have been recast to reflect the historical results of Four Corners, Wamsutter and Equity Earnings in Discovery throughout the periods presented.

  (Thousands, except per-unit amounts)
                                               2006*
                       1st Qtr    2nd Qtr     3rd Qtr    4th Qtr      Y-T-D

  Williams Partners L.P.
  Reconciliation of
  Non-GAAP "Distributable
  Cash Flow Excluding
  Equity Investments"
  to GAAP "Net income"

  Net income           $48,855    $53,036     $66,384    $46,300   $214,575
  Depreciation,
   amortization
   and accretion        10,714     10,852      10,944     11,182     43,692
  Amortization of
   natural gas
   purchase contract     1,354      1,322       1,322      1,322      5,320
  Non-cash
   amortization of
   debt issuance costs
   included in interest
   expense                   -          -           -          -          -
  Equity earnings      (15,012)   (21,789)    (27,035)   (15,904)   (79,740)
  Reimbursements from
   Williams under
   omnibus agreement     1,248      1,183       1,813        996      5,240
  Non-cash adjustment
   of 2001-2002 EFM
   revenue                   -          -           -          -          -
  Impairment of
   Carbonate Trend
   gathering pipeline        -          -           -          -          -
  Maintenance capital
   expenditures (a)(b)  (5,838)    (5,371)     (5,305)    (4,555)   (21,069)
  Distributable Cash
   Flow Excluding
   Equity Investments  $41,321    $39,233     $48,123    $39,341   $168,018

  Less: Pre-partnership
   Four Corners net
   income allocated
   to general partner  (33,415)  (30,624)     (31,445)   (20,967)  (116,451)
  Less: Pre-partnership
   Four Corners
   depreciation,
   amortization and
   accretion expense    (9,814)   (9,666)      (7,517)    (6,096)   (33,093)
  Plus: Pre-partnership
   Four Corners
   maintenance
   capital
   expenditures(b)       4,673     4,116        3,368      2,711     14,868
  Plus: Discovery's
   cash distributions
   to Williams Partners
   L.P.                  4,400     3,600        4,000      4,400     16,400
  Distributable cash
   flow attributable to
   partnership
   operations            7,165     6,659       16,529     19,389     49,742
  Distributable Cash
   Flow attributable to
   partnership operations
   allocable to general
   partner                 410        201       3,066      3,612      7,289

  Distributable Cash
   Flow attributable to
   limited partnership
   operations allocable
   to limited partners  $6,755     $6,458     $13,463    $15,777    $42,453

  Weighted average
   number of units
   outstanding:     14,006,146 14,923,619  21,597,072 25,266,210 18,986,368
  Distributable Cash
   Flow attributable
   to partnership operations
   per limited
   partner unit:         $0.48      $0.43       $0.62      $0.62      $2.15



  Wamsutter
  Reconciliation of Non-GAAP "Distributable Cash Flow" to GAAP "Net income"

  Net income            $9,341    $18,268     $20,952    $13,129    $61,690
  Depreciation,
   amortization and
   accretion             3,774      3,920       4,215      4,280     16,189
  Maintenance
   capital
   expenditures         (6,450)    (5,372)     (5,794)    (2,992)   (20,608)

  Distributable
   Cash Flow
   - 100%               $6,665    $16,816     $19,373    $14,417    $57,271

  Discovery Producer Services
  Reconciliation of Non-GAAP "Distributable Cash Flow" to GAAP "Net income"

  Net income            $9,452     $5,868     $10,138     $4,625    $30,083
  Depreciation,
   amortization
   and accretion         6,379      6,374       6,380      6,429     25,562
  Maintenance
   capital
   expenditures           (516)      (506)       (262)        22     (1,262)

  Distributable
   Cash Flow
   - 100%              $15,315    $11,736     $16,256    $11,076    $54,383

  Distributable
   Cash Flow
   - our 60%
   interest             $9,189     $7,042      $9,754     $6,646    $32,631



  (Thousands, except per-unit amounts)
                                               2007*
                       1st Qtr    2nd Qtr     3rd Qtr    4th Qtr     Y-T-D

  Williams Partners L.P.
  Reconciliation of
  Non-GAAP "Distributable
  Cash Flow Excluding
  Equity Investments"
  to GAAP "Net income"

  Net income           $25,137     $46,742    $47,901    $44,851   $164,631
  Depreciation,
   amortization
   and accretion        13,178      11,234     10,345     11,735     46,492
  Amortization of
   natural gas
   purchase contract     1,188       1,189      1,189      1,188      4,754
  Non-cash
   amortization of
   debt issuance
   costs included in
   interest expense        404         403        404        394      1,605
  Equity earnings      (15,259)    (24,433)   (26,374)   (38,988)  (105,054)
  Reimbursements from
   Williams under
   omnibus agreement       842         825      1,059      2,636      5,362
  Non-cash adjustment
   of 2001-2002 EFM
   revenue                   -           -      3,464          -      3,464
  Impairment of
   Carbonate Trend
   gathering pipeline        -           -          -     10,400     10,400
  Maintenance capital
   expenditures (a)(b)  (7,621)     (8,665)    (3,524)    (7,790)   (27,600)

  Distributable Cash
   Flow Excluding
   Equity Investments  $17,869     $27,295    $34,464    $24,426   $104,054
  Less: Pre-partnership
   Four Corners net
   income allocated
   to general partner        -           -          -          -          -
  Less: Pre-partnership
   Four Corners
   depreciation,
   amortization and
   accretion expense         -           -          -          -          -
  Plus: Pre-partnership
   Four Corners
   maintenance
   capital
   expenditures(b)           -           -          -          -          -
  Plus: Discovery's
   cash distributions
   to Williams Partners
   L.P.                  3,600      10,869      3,600      8,400     26,469
  Distributable cash
   flow attributable to
   partnership
   operations           21,469      38,164     38,064     32,826    130,523
  Distributable Cash
   Flow attributable to
   partnership operations
   allocable to general
   partner               1,487       9,607      9,557      6,201     26,852
  Distributable Cash
   Flow attributable to
   limited partnership
   operations allocable
   to limited
   partners            $19,982     $28,557    $28,507    $26,625   $103,671
  Weighted average
   number of units
   outstanding:     39,358,798  39,358,798 39,359,555 42,422,444 40,131,195
  Distributable Cash
   Flow attributable
   to partnership operations
   per limited partner
   unit:                 $0.51       $0.73       $0.72      $0.63     $2.59

  Wamsutter


Reconciliation of Non-GAAP "Distributable Cash Flow" to GAAP "Net income"

  Net income           $11,328     $20,558     $18,472    $27,027   $77,385
  Depreciation,
   amortization and
   accretion             4,258       4,440       4,586      5,140    18,424
  Maintenance
   capital
   expenditures         (4,535)     (5,763)     (5,284)    (5,108)  (20,690)

  Distributable
   Cash Flow
   - 100%              $11,051     $19,235     $17,774    $27,059   $75,119

  Discovery Producer Services


Reconciliation of Non-GAAP "Distributable Cash Flow" to GAAP "Net income"

  Net income            $6,551      $6,460     $13,168    $21,892   $48,071
  Depreciation,
   amortization
   and accretion         6,483       6,508       6,243      6,718    25,952
  Maintenance
   capital
   expenditures           (429)       (595)     (1,560)     1,207    (1,377)

  Distributable
   Cash Flow
   - 100%              $12,605     $12,373     $17,851    $29,817   $72,646

  Distributable
   Cash Flow
   - our 60%
   interest             $7,563      $7,424     $10,711    $17,890   $43,588



* Because Four Corners, Wamsutter and the additional 20% interest in Discovery were affiliates of Williams at the time of these acquisitions, the transactions were between entities under common control, and have been accounted for at historical cost.  Accordingly, these tables have been recast to reflect the historical results of Four Corners, Wamsutter and Equity Earnings in Discovery throughout the periods presented.

  Consolidated Statements of Income
  (UNAUDITED)

  (Thousands, except per-unit amounts)
                                              2006*
                      1st Qtr     2nd Qtr    3rd Qtr     4th Qtr      Y-T-D
  Revenues:
    Product sales:
      Affiliate       $58,396     $63,370    $68,542     $64,767   $255,075
      Third-party       2,792       7,766      4,553       1,808     16,919
    Gathering and processing:
      Affiliate         9,933      10,756     10,162      11,377     42,228
      Third-party      51,376      49,405     52,679      52,972    206,432
    Storage             5,105       5,924      6,581       7,627     25,237
    Fractionation       3,953       2,989      2,708       2,048     11,698
    Other               1,180         976      1,357       2,308      5,821

  Total revenues      132,735     141,186    146,582     142,907    563,410

  Cost and expenses:
    Product cost and shrink replacement:
      Affiliate        21,380      18,057     19,159      19,605     78,201
      Third-party      22,620      26,662     25,542      22,483     97,307
    Operating and maintenance expense:
      Affiliate        15,686      13,401     10,681      13,859     53,627
      Third-party      21,100      28,167     26,888      25,432    101,587
    Depreciation,
     amortization and
     accretion         10,714      10,852     10,944      11,182     43,692
    General and administrative expense:
      Affiliate         7,281       9,227      7,730      10,057     34,295
      Third-party       1,305         950      1,038       1,852      5,145
    Taxes other
     than income        2,283       1,757      2,352       2,569      8,961
    Other              (3,643)        328         90         752     (2,473)

  Total costs
   and expenses        98,726     109,401    104,424     107,791    420,342

  Operating income     34,009      31,785     42,158      35,116    143,068

  Equity earnings
   - Wamsutter          9,341      18,268     20,952      13,129     61,690
  Equity earnings
   - Discovery          5,671       3,521      6,083       2,775     18,050
  Interest expense:
    Affiliate             (15)        (15)       (15)        (44)       (89)
    Third-party          (221)       (633)    (3,256)     (5,634)    (9,744)
  Interest income          70         110        462         958      1,600

  Net income          $48,855     $53,036    $66,384     $46,300   $214,575

  Allocation of net income*
    Net income        $48,855     $53,036    $66,384     $46,300   $214,575
    Allocation of
     net income to
     general partner   43,957      49,241     54,171      35,011    182,380
    Allocation of
     net income to
     limited partners   4,898       3,795     12,213      11,289     32,195

    Net income, per
     common and
     subordinated
     unit               $0.35       $0.25      $0.57       $0.45      $1.62
    Weighted average
     number of units
     outstanding   14,006,146  14,923,619 21,597,072  25,266,210 18,986,368



  Consolidated Statements of Income
  (UNAUDITED)

  (Thousands, except per-unit amounts)
                                              2007*
                      1st Qtr     2nd Qtr    3rd Qtr     4th Qtr      Y-T-D
  Revenues:
    Product sales:
      Affiliate       $56,552     $62,119    $75,519     $73,780   $267,970
      Third-party       6,313       5,070      4,297       7,282     22,962
    Gathering and processing:
      Affiliate         9,491       8,743      9,178       8,407     35,819
      Third-party      51,103      51,422     51,721      48,529    202,775
    Storage             6,410       6,818      7,404       7,384     28,016
    Fractionation       1,917       2,616      2,723       2,366      9,622
    Other               2,029       2,481     (1,266)      2,409      5,653

  Total revenues      133,815     139,269    149,576     150,157    572,817

  Cost and expenses:
    Product cost and shrink replacement:
      Affiliate        21,725      18,520     18,806      14,424     73,475
      Third-party      20,470      26,157     30,043      31,553    108,223
    Operating and maintenance expense:
      Affiliate        14,328      10,484     15,275      21,546     61,633
      Third-party      28,185      23,759     25,259      23,507    100,710
    Depreciation,
     amortization and
     accretion         13,178      11,234     10,345      11,735     46,492
    General and administrative expense:
      Affiliate         9,406       9,644     10,816      12,172     42,038
      Third-party         664       1,189        925         812      3,590
    Taxes other
     than income        2,114       2,626      2,474       2,410      9,624
    Other                 460         198        134      11,303     12,095

  Total costs
   and expenses       110,530     103,811    114,077     129,462    457,880

  Operating income     23,285      35,458     35,499      20,695    114,937

  Equity earnings
   - Wamsutter         11,328      20,558     18,472      25,854     76,212
  Equity earnings
   - Discovery          3,931       3,875      7,902      13,134     28,842
  Interest expense:
    Affiliate             (15)        (15)       (16)        (15)       (61)
    Third-party       (14,375)    (14,395)   (14,268)    (15,249)   (58,287)
  Interest income         983       1,261        312         432      2,988

  Net income          $25,137     $46,742    $47,901     $44,851   $164,631

  Allocation of net income*
    Net income        $25,137     $46,742    $47,901     $44,851   $164,631
    Allocation of
     net income to
     general partner   12,912      27,725     23,409      21,144     85,190
    Allocation of
     net income to
     limited partners  12,225      19,017     24,492      23,707     79,441

    Net income, per
     common and
     subordinated
     unit               $0.31       $0.48      $0.62       $0.56      $1.97
    Weighted average
     number of units
     outstanding   39,358,798  39,358,798 39,359,555  42,422,444 40,131,195



* Because Four Corners, Wamsutter and the additional 20% interest in Discovery were affiliates of Williams at the time of these acquisitions, the transactions were between entities under common control, and have been accounted for at historical cost.  Accordingly, these tables have been recast to reflect the historical results of Four Corners, Wamsutter and Equity Earnings in Discovery throughout the periods presented.  Net income applicable to periods before the acquisitions of these businesses is fully allocated to our general partner, which results in no impact to net income per limited partner unit.

  Segment Profit & Operating Statistics
  (UNAUDITED)

  (Thousands)
                                              2006*
                      1st Qtr    2nd Qtr     3rd Qtr    4th Qtr      Y-T-D
  Gathering
   and Processing - West
  Segment revenues   $115,672   $127,794    $132,603    $126,244   $502,313
  Product cost
   and shrink
   replacement         38,277     41,800      41,821      38,099    159,997
  Operating and
   maintenance
   expense             29,095     34,525      29,950      31,193    124,763
  Depreciation,
   amortization
   and accretion        9,814      9,952      10,035      10,254     40,055
  Direct general
   and administrative
   expenses             3,400      2,361       2,838       3,321     11,920
  Other, net           (1,567)     1,919       2,260       3,157      5,769

  Segment operating
   income              36,653     37,237      45,699      40,220    159,809
  Equity earnings       9,341     18,268      20,952      13,129     61,690


  Segment profit      $45,994    $55,505     $66,651     $53,349   $221,499

  Gathering
   and Processing - Gulf
  Segment revenues       $733       $676        $632        $615     $2,656
  Operating and
   maintenance
   expense                242        231         399         788      1,660
  Depreciation
   and accretion          300        300         300         300      1,200
  Direct general
   and administrative
   expenses                 2          7           -          (8)         1
  Other, net                -          -           -           -          -

  Segment operating
   income (loss)          189        138         (67)       (465)      (205)
  Equity earnings       5,671      3,521       6,083       2,775     18,050

  Segment profit       $5,860     $3,659      $6,016      $2,310    $17,845

  NGL Services
  Segment revenues    $16,330    $12,716     $13,347     $16,048    $58,441
  Product cost          5,723      2,919       2,880       3,989     15,511
  Operating and
   maintenance
   expense              7,449      6,812       7,220       7,310     28,791
  Depreciation
   and accretion          600        600         609         628      2,437
  Direct general
   and administrative
   expenses               301        235         279         334      1,149
  Other, net              207        166         182         164        719

  Segment profit       $2,050     $1,984      $2,177      $3,623     $9,834



* Because Four Corners, Wamsutter and the additional 20% interest in Discovery were affiliates of Williams at the time of these acquisitions, the transactions were between entities under common control, and have been accounted for at historical cost.  Accordingly, these tables have been recast to reflect the historical results of Four Corners, Wamsutter and Equity Earnings in Discovery throughout the periods presented.

  Operating Information:

  Williams Partners:
    Conway storage
     revenues          $5,105     $5,924      $6,581      $7,627    $17,610
    Conway fractionation
     volumes (bpd)
     - our 50%         46,042     39,669      38,517      31,374     41,382
    Carbonate Trend
     gathered volumes
     (MMBtu/d)         33,407     29,327      27,650      26,995     30,107
  Williams Four Corners:
    Gathered volumes
     (MMBtu/d)      1,511,867  1,473,371   1,501,978   1,512,304  1,495,771
    Processed volumes
    (MMBtu/d)         868,200    861,876     878,965     893,022    869,731
     Liquid sales
      gallons (000s)   41,413     43,874      47,009      49,714    132,296
     Net liquids margin
     (cents/gallon)     $0.37      $0.49       $0.56       $0.45      $0.48
  Wamsutter - 100%:
    Gathered volumes
     (MMBtu/d)        468,243    475,703     498,124     517,775    490,119
    Processed volumes
     (MMBtu/d)        264,744    270,752     282,024     293,116    277,749
    Liquid sales
     gallons (000s)    35,891     38,259      33,983      32,635    140,768
    Net liquids margin
     (cents/gallon)     $0.14      $0.34       $0.41       $0.29      $0.29
  Discovery Producer Services - 100%
    Gathered volumes
     (MMBtu/d)        581,788    342,037     435,885     514,486    451,449
    Gross processing
     margin ($/MMBtu)   $0.16      $0.25       $0.28       $0.25      $0.22


  Segment Profit & Operating Statistics
  (UNAUDITED)

  (Thousands)
                                              2007*
                      1st Qtr    2nd Qtr     3rd Qtr     4th Qtr      Y-T-D
  Gathering
   and Processing - West
  Segment revenues   $120,428   $125,047    $134,035    $134,277   $513,787
  Product cost
   and shrink
   replacement         39,675     42,313      45,791      42,655    170,434
  Operating and
   maintenance
   expense             33,097     29,487      34,267      38,931    135,782
  Depreciation,
   amortization
   and accretion       12,175     10,203       8,564      10,581     41,523
  Direct general
   and administrative
   expenses             1,821      1,797       1,839       2,333      7,790
  Other, net            2,384      2,624       2,414       3,145     10,567

  Segment operating
   income              31,276     38,623      41,160      36,632    147,691
  Equity earnings      11,328     20,558      18,472      25,854     76,212

  Segment profit      $42,604    $59,181     $59,632     $62,486   $223,903

  Gathering
   and Processing - Gulf
  Segment revenues       $561       $459        $521        $578     $2,119
  Operating and
   maintenance
   expense                550        361         443         521      1,875
  Depreciation
   and accretion          304        303         304         338      1,249
  Direct general
   and administrative
   expenses                 -          -           -           -          -
  Other, net                -          -           -      10,406     10,406

  Segment operating
   income (loss)         (293)      (205)       (226)    (10,687)   (11,411)
  Equity earnings       3,931      3,875       7,902      13,134     28,842

  Segment profit       $3,638     $3,670      $7,676      $2,447    $17,431

  NGL Services
  Segment revenues    $12,826    $13,763     $15,020     $15,302    $56,911
  Product cost          2,520      2,364       3,058       3,322     11,264
  Operating and
   maintenance
   expense              8,866      4,395       5,824       5,601     24,686
  Depreciation
   and accretion          699        728       1,477         816      3,720
  Direct general
   and administrative
   expenses               498        470         510         712      2,190
  Other, net              190        200         194         162        746

  Segment profit          $53     $5,606      $3,957      $4,689    $14,305



* Because Four Corners, Wamsutter and the additional 20% interest in Discovery were affiliates of Williams at the time of these acquisitions, the transactions were between entities under common control, and have been accounted for at historical cost.  Accordingly, these tables have been recast to reflect the historical results of Four Corners, Wamsutter and Equity Earnings in Discovery throughout the periods presented.

  Operating Information:

  Williams Partners:
    Conway storage
     revenues          $6,410     $6,818      $7,404      $7,384    $28,016
    Conway fractionation
     volumes (bpd)
     - our 50%         31,316     36,220      35,574      34,682     34,460
    Carbonate Trend
     gathered volumes
     (MMBtu/d)         25,187     19,127      22,080      24,226     22,651
  Williams Four Corners:
    Gathered volumes
     (MMBtu/d)      1,452,694  1,461,514   1,468,598   1,386,512  1,499,937
    Processed volumes
     (MMBtu/d)        866,116    872,091     889,576     786,271    875,601
    Liquid sales
     gallons (000s)    45,603     39,031      46,098      35,957    166,689
    Net liquids margin
     (cents/gallon)     $0.41      $0.53       $0.63       $0.91      $0.61
  Wamsutter - 100%:
    Gathered volumes
     (MMBtu/d)        509,857    521,586     512,808     519,428    515,938
    Processed volumes
     (MMBtu/d)        302,029    312,414     308,659     319,515    310,697
    Liquid sales
     gallons (000s)    28,053     26,789      25,114      33,191    113,147
    Net liquids margin
     (cents/gallon)     $0.27      $0.40       $0.48       $0.72      $0.48
  Discovery Producer Services - 100%
    Gathered volumes
     (MMBtu/d)        547,504    616,172     579,588     583,106    581,685
    Gross processing
     margin ($/MMBtu)   $0.23      $0.24       $0.32       $0.53      $0.33


DATASOURCE: Williams Partners L.P.



CONTACT:  Jeff Pounds, media relations, [phone], or Sharna

Reingold, investor relations, [phone], both of Williams



Web site:  http://www.williamslp.com/ 

Copyright