Williams Partners 3Q profit falls on weaker prices

posted: 103 DAYS 11 HOURS AGO

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TULSA, Okla. -Williams Partners LP, which processes and stores natural gas, said Thursday its third-quarter profit declined 8 percent on sharply lower natural gas liquid prices.

But results widely beat analyst estimates, sending shares sharply higher.

The lower price of natural gas liquids hurt the company's revenue and reduced its margins. That was partially offset by the fact that it cost less to source natural gas, which is processed into natural gas liquids, as natural gas prices were also tremendously weaker in the third quarter.

Last year natural gas prices traded at record levels, close to $14 per 1,000 cubic feet. In the most recent quarter natural gas prices ranged between $2.50 and $5 per 1,000 cubic feet.

Quarterly earnings fell to $55.9 million, or $1.04 per share, from $60.8 million, or $1 per share during the same period last year. Analysts predicted profit of 64 cents per share.

Revenue tumbled 29 percent to $125.2 million from $175.7 million. Analysts expected revenue of $108.6 million.

Shares of the company rose $1.67, or 7.2 percent, to $24.78 in afternoon trading. The stock has traded between $8.54 and $25.75 over the past year.

2009-10-29 15:35:40