Williams slips after middling quarter, but distributable cash flow climbs 8%
May  2, 2019 12:59 PM ET
Williams Cos. ( WMB -1.7%) is lower after reporting in-line Q1 earnings and below consensus revenues which fell 1.6% Y/Y to $2.05B. Q1 adjusted EBITDA rose 7% Y/Y to $1.21B, cash flow from operations climbed 12% to $775M, distributable cash flow increased 8% to $780M, and the dividend coverage ratio was 1.7x. WMB issues FY 2019 EPS guidance of $0.83-$1.07 vs. $0.93 analyst consensus and maintains guidance for full-year adjusted EBITDA of $4.85B-$5.15B, distributable cash flow of $2.9B-$3.3B and dividend coverage ratio of 1.7x. WMB lowers its growth capex guidance to $2.4B from $2.8B previously, partly due to lower capital requirements in the Northeast and lower capital requirements from the Jackalope Gas Gathering Services deleveraging transaction.

Williams slips after middling quarter, but distributable cash flow climbs 8%

Williams Reports First-Quarter 2019 Financial Results

Bracewell LLP represented affiliates of existing preferred equity investors in CN Jackalope Holdings, LLC (Holdings), led by Global Infrastructure Partners, in connection with the preferred equity investment by Holdings in Crestwood Niobrara LLC (Niobrara) for $235 million in cash consideration. The preferred investment was used in part to finance the acquisition by Niobrara of the remaining 50 percent interest in Jackalope Gas Gathering Services, L.L.C. that it did not already own from Williams MLP Operating LLC. As a result of the consummation of the transactions, Niobrara owns 100 percent of the interests in Jackalope, and Crestwood Midstream Operating LLC, a Delaware limited liability company and affiliate of Niobrara, will now provide field operations and construction management services for Jackalope. Bracewell LLP advised with a team including Thomas M. Tomlinson (Picture), Elizabeth L. McGinley, Lytch T. Gutmann, Katherine Erbeznik , and Charlotte Keenan.

$235 Million Preferred Equity Investment in Crestwood Niobrara LLC

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Davis Polk advised The Williams Companies, Inc. on its $484.6 million sale of a 50% interest in Jackalope Gas Gathering Services, L.L.C. to an affiliate of Crestwood Equity Partners L.P. Prior to the transaction, Crestwood was Williams' 50% joint venture partner in Jackalope where Williams acted as operator, responsible for managing construction and operations and Crestwood served as marketer, responsible for commercial services. Following the transaction, Crestwood has assumed operatorship of Jackalope. Headquartered in Tulsa, Oklahoma, Williams is a premier provider of large-scale infrastructure connecting U.S. natural gas and natural gas products to growing demand for cleaner fuel and feedstocks. With major positions in top U.S. supply basins, Williams owns and operates more than 30,000 miles of pipeline system wide providing natural gas for clean-power generation, heating and industrial use. Headquartered in Houston, Texas, Crestwood Equity Partners L.P. is a master limited partnership that owns and operates midstream businesses in multiple shale resource plays across the United States. The Davis Polk corporate team included partner Oliver Smith and associates Laura C. Turano, Nicholas C. Phillips and Elizabeth R. Diggs. Partner Pritesh P. Shah provided intellectual property and technology advice. Partner Kyoko Takahashi Lin provided executive compensation advice. Counsel Betty Moy Huber provided environmental advice. Partner Brian D. Hirsch provided real estate advice. All members of the Davis Polk team are based in the New York office. Attachments

Davis Polk & Wardwell LLP : Advises Williams on Its Sale of 50% Interest in Jackalope Gas Gathering Services to an Affiliate of Crestwood Equity Partners

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Jackalope Gas Gathering Services provides gathering, compression and processing services and include the Jackalope Gas Gathering System and the Bucking Horse Processing Plant

Jackalope Gas Gathering Services

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