EXHIBIT 99.1
NEWS RELEASE [WILLIAMS ENERGY PARTNERS L.P. LOGO]
NYSE: WEG
DATE: Jan. 28, 2002
CONTACT: Kelly Swan Paula Farrell
Media Relations Investor Relations
(918) 573-6932 (918) 573-9233
kelly.swan@williams.com paula.farrell@williams.com
WILLIAMS ENERGY PARTNERS L.P. REPORTS 2001 EARNINGS
TULSA, Okla. - Williams Energy Partners L.P. (NYSE:WEG) today announced
an operating profit of $28 million for the year ended Dec. 31, 2001, compared
with $17.7 million in 2000. The $10.3 million increase in 2001 represents 58
percent growth in operating profit.
The growth was due to the acquisition of marine terminal facilities in
New Haven, Conn., in September 2000, and Gibson, La., in October 2001, and two
inland terminals in Little Rock, Ark., in June 2001, along with higher ammonia
volume and tariffs, increased utilization and rates at the Gulf Coast marine
facilities and reduced general and administration expenses due to the
partnership structure.
Net income for the year was $21.7 million, compared with $3 million in
2000. The $18.7 million increase in net income included a gain on the sale of
the Meridian, Miss., inland terminal during the fourth quarter of 2001. The
results also benefited from changes related to the partnership's initial public
offering that closed on Feb. 9, 2001, including the retirement of debt that
lowered interest costs and the lack of income taxes due to the partnership
structure.
Prior to the initial public offering, the partnership's assets were
held by Williams
(NYSE:WMB). For the period since the initial public offering, earnings per unit
were $1.87. Earnings per unit calculated on full-year results would have been
$1.89.
Phil Wright, president of the general partner, said, "Our first year
out of the gate yielded strong returns for our unitholders. Profits have
increased because we're getting solid results from our base business and
significant contributions from new acquisitions. As a result, we increased our
cash distribution every quarter since the initial public offering for a total
gain of more than 12 percent over the original distribution level."
For the fourth quarter ended Dec. 31, 2001, net income was $4.8
million, or 42 cents per unit, compared with a loss of $400,000 for the same
period in 2000.
Operating profit was $5.3 million in fourth quarter 2001 and $2.4
million in fourth quarter 2000. This 121 percent increase was primarily due to
the New Haven, Little Rock and Gibson acquisitions, increased storage
utilization at the Gulf Coast marine terminal facilities and increased volumes
and tariffs on the ammonia pipeline and terminals system.
The average number of common and subordinated units outstanding for the
quarter and year-to-date periods was 11.4 million.
Wright added, "Williams Energy Partners was one of the year's most
successful initial public offerings in terms of unit price appreciation. Through
aggressive pursuit of deal flow, we established our partnership as a strong
performer and enter 2002 with our sights set on more growth."
The partnership recently purchased an 8.5-mile natural gas liquids
pipeline in Illinois and started providing delivery service of jet fuel to
Southwest Airlines at Dallas Love Field under a long-term agreement.
An investor conference call with management regarding 2001 results is
scheduled today at 9 a.m. Eastern. To participate, call (800) 289-0496 and
provide code 717011. International callers may dial into (913) 981-5519 and
provide the same code. A Webcast will also be available at
www.williams.com/weg/weg_news.html.
Audio replays of the conference call will be available from 12:30 p.m.
Eastern on Jan. 28
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through midnight on Feb. 4. To access the replay, dial (888) 203-1112. The
access replay code is 717011. International callers should dial (719) 457-0820,
providing the same code.
Williams Energy Partners' asset portfolio includes five marine
petroleum product terminals, 25 inland terminals that form a distribution
network for gasoline and other refined petroleum products throughout the
southeastern United States and an 1,100-mile ammonia pipeline and terminals
system that extends from Texas and Oklahoma to Minnesota.
ABOUT WILLIAMS ENERGY PARTNERS L.P.
Williams Energy Partners L.P. was formed to own, operate and acquire a
diversified portfolio of energy assets. The partnership is engaged principally
in the storage, transportation and distribution of refined petroleum products
and ammonia. The general partner of WEG is a unit of Williams (NYSE:WMB), which
specializes in a broad array of energy-related services, including energy
marketing and trading and natural gas pipeline transportation.
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Portions of this document may constitute "forward-looking statements" as defined
by federal law. Such statements are subject to certain risks, uncertainties and
assumptions. Should one or more of these risks or uncertainties materialize, or
should underlying assumptions prove incorrect, actual results may vary
materially from those anticipated, estimated or projected. Examples of such
uncertainties and risk factors include, but are not limited to, changes in the
price for crude oil, changes in demand for refined petroleum products, adverse
developments affecting our ammonia pipeline customers, changes in federal
government policies affecting farm subsidies, changes to cost estimates relating
to specific acquisitions, changes in economic and industry conditions and
changes in regulatory requirements (including changes in environmental
requirements). These and other factors are set forth in the Partnership's Form
10-K for the year 2000 filed with the Securities and Exchange Commission.
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