TULSA, Okla., June 10 /PRNewswire-FirstCall/ -- Williams Partners L.P. today provided a second update on the status of its Ignacio Gas Processing plant following a ruptured pipeline at the facility on June 3.
The scope of the work was expanded beyond the repair of the damaged pipes to ensure that any similarly situated piping was thoroughly inspected and repaired as necessary. Additionally, maintenance at the plant was opportunistically accelerated to be performed concurrent with this outage. The partnership now believes that the work designed to ensure safe and reliable operations at the plant will be completed late next week. The partnership previously announced that it expected the plant to be fully repaired and operational early this week.
As a result of the new schedule for commencing operations, the partnership's management now estimates the incident will reduce second-quarter 2009 cash flows by approximately $5 million to $6 million as a result of reduced NGL equity sales volumes of 5 million to 6 million gallons at current market prices, reduced gathering volumes of 3 trillion to 4 trillion British thermal units (TBtus) and estimated repair costs of approximately $1.6 million. The partnership does not anticipate this incident will affect expected distributions, or have a material impact on its financial position or liquidity.
The Ignacio plant is part of Williams Four Corners LLC, which is owned by Williams Partners. Williams operates the facility, which is located near Durango, Colo., and has a processing capacity of approximately 450 million cubic feet per day (MMcfd).
The partnership and Williams have re-routed approximately 250 MMcfd of the plant's normal production capacity to other facilities in the San Juan Basin. In addition to the Ignacio plant, the Four Corners gathering system is connected to the Kutz and Lybrook natural gas processing plants and the Milagro and Esperanza natural gas treating plants in northwestern New Mexico, which are all owned by Williams Four Corners, LLC. The Four Corners gathering system is also connected to the facilities of third party gatherers. A number of those connections are also being utilized to flow volumes prior to commencing operations at the plant.
About Williams Partners L.P.
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 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) (918) 573-3332 Sharna Reingold Williams (investor relations) (918) 573-2078
Williams Partners L.P. is a limited partnership formed by The Williams Companies, Inc. (Williams). Our reports, filings, and other public announcements 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 the Private Securities Litigation Reform Act of 1995. You typically can identify forward-looking statements by the use of forward-looking words, such as "anticipates," believes," "could," "may," "should," "continues," "estimates," "expects," "forecasts," "might," "planned," "potential," "projects," "scheduled," "will," and other similar words. These statements are based on our present intentions and our assumptions about future events and are subject to risks, uncertainties, and other factors. In addition to any assumptions, risks, uncertainties or other factors referred to specifically in connection with such statements, other factors not specifically referenced could cause our actual results to differ materially from the results expressed or implied in any forward-looking statements. Those factors include, among others:
-- whether we have sufficient cash from operations to enable us to maintain current levels of cash distributions or to pay the minimum quarterly distribution following establishment of cash reserves and payment of fees and expenses, including payments to our general partner; -- availability of supplies (including the uncertainties inherent in assessing and estimating future natural gas reserves), market demand, volatility of prices, and the availability and cost of capital; -- inflation, interest rates and general economic conditions (including the current economic slowdown and the disruption of global credit markets and the impact of these events on our customers and suppliers); -- the strength and financial resources of our competitors; -- development of alternative energy sources; -- the impact of operational and development hazards; -- costs of, changes in, or the results of laws, government regulations (including proposed climate change legislation), environmental liabilities, litigation, and rate proceedings; -- changes in maintenance and construction costs; -- changes in the current geopolitical situation; -- our exposure to the credit risks of our customers; -- risks related to strategy and financing, including restrictions stemming from our debt agreements, future changes in our credit ratings, and the availability and cost of credit; -- risks associated with future weather conditions; -- acts of terrorism; and -- additional risks described in our filings with the Securities and Exchange Commission.
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. In addition to causing our actual results to differ, the factors listed above may cause our intentions to change. Such changes in our intentions may also cause our results to differ. We disclaim any obligation to and do not intend to publicly update or revise any forward-looking statements or changes to our intentions, whether as a result of new information, future events or otherwise.
Limited partner interests 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. Investors are urged to closely consider the disclosures and risk factors in our annual report on Forms 10-K filed with the Securities and Exchange Commission on February 26, 2009, and our quarterly reports on Form 10-Q available from our offices or from our website at www.williamslp.com.
Williams Partners L.P.
CONTACT: media, Jeff Pounds, +1-918-573-3332, or investors, Sharna
Reingold, +1-918-573-2078, both of Williams Partners L.P.
Web Site: http://www.williamslp.com/
