By a News Reporter-Staff News Editor at Energy Weekly News -- Williams (NYSE: WMB) and Williams Partners (NYSE: WPZ) announced dividend and distribution growth guidance for 2016. The financial guidance is included in the presentations the company and partnership have posted for their annual Analyst Day event, which is tomorrow, May 14. The presentations are available for viewing and downloading at www.williams.com and www.williamslp.com.
In addition to in-depth information on the energy infrastructure business segments, the presentations contain financial guidance consistent with guidance issued earlier in May for years 2014 and 2015 and additional guidance for 2016. Williams expects rapidly growing distributions for WPZ and Access Midstream Partners, L.P. (NYSE: ACMP), including distributions from its LP and GP interests including incentive distribution rights, to drive 20 percent dividend growth at Williams through 2016.
Williams Partners expects, at the midpoint of guidance ranges, per LP unit annual distribution growth of 6 percent in each 2014 and 2015 and 4.5 percent in 2016. Williams Partners expects cash distribution coverage of 1.03 in 2015 and 1.05 in 2016.
"With this extension of our guidance, the expected 2016 dividend is more than five times the level of the 2010 dividend," said Alan Armstrong, Williams' chief executive officer. "We're pleased to continue this pace of high dividend and distribution growth and reward shareholders as we serve customer needs by connecting the best supplies of natural gas and natural gas liquids to the highest-value markets."
Members of Williams' senior management team are scheduled to present between approximately 8:45 a.m. EDT to 2 p.m. EDT tomorrow. Additionally, management of ACMP will provide a presentation on ACMP's business.
A link to the live webcast of the event will be available the morning of May 14 at www.williams.com and www.williamslp.com. A replay of the Analyst Day webcast will be available for two weeks following the event. Non-GAAP Measures This press release includes the financial measure cash distribution coverage ratio, which is a non-GAAP financial measure as defined under the rules of the Securities and Exchange Commission. We define cash distribution coverage ratio as the ratio of distributable cash flow attributable to partnership operations to the total cash distributed. This measure reflects the amount of distributable cash flow relative to our cash distribution. We define distributable cash flow, also a non-GAAP measure, as net income plus depreciation and amortization and cash distributions from our equity investments less our earnings from equity investments, income attributable to noncontrolling interests and maintenance capital expenditures. We also adjust for payments and/or reimbursements under omnibus agreements with Williams and certain other adjustments. Total distributable cash flow is reduced by any amounts associated with operations which occurred prior to our ownership of the underlying assets to arrive at distributable cash flow attributable to partnership operations.
Keywords for this news article include: Energy, Williams, Oil & Gas, Natural Gas, Investment and Finance.
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