Lower NGL, olefin margins hurt profit at Williams and Williams Partners

Williams Cos. (NYSE:WMB) and Williams Partners (NYSE:WPZ) each report lower Q2 earnings (I, II), hurt by lower margins for natural gas liquids and olefins.

WMB says adjusted earnings from continuing operations rose to $0.23/share from $0.19, while revenue fell 5% Y/Y to $1.68B; WPZ's profit of $0.11/unit fell from $0.31 a year earlier.

WMB affirms dividend growth guidance of ~15% annually from the higher Q3 2014 base; says capex has been decreased by ~$565M to reflect a shift in capital spending to periods beyond 2016 for developing Canadian projects.

WMB says the rebuild and expansion of its Geismar, La., olefins plant is substantially complete, but due to more time required to modify existing safety systems, it now expects full production and ethylene sales by Q4.

Earlier today, WPZ unveiled plans for a $150M project to increase natural gas distribution capacity to areas of the New Jersey coast affected by Hurricane Sandy, in addition to $4.3B in expansion projects planned through 2017.

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