EXHIBIT 99
(WILLIAMS ENERGY PARTNERS LOGO)
NEWS RELEASE
NYSE: WEG
================================================================================
DATE: April 28, 2003
CONTACT: Susie Hereden Paula Farrell
Media Relations Investor Relations
(918) 573-2278 (918) 573-9233
susie.hereden@williams.com paula.farrell@williams.com
WILLIAMS ENERGY PARTNERS REPORTS 32 PERCENT PROFIT GROWTH
TULSA, Okla. - Williams Energy Partners L.P. (NYSE:WEG) today announced
first-quarter 2003 operating profit of $38.1 million compared with $28.8 million
in 2002, representing a 32 percent increase. Net income for the same period
increased 38 percent from $21.1 million in 2002 to $29.1 million in 2003.
Improved results from the partnership's Williams Pipe Line system and
independent petroleum products terminals contributed to the growth in operating
profit. Williams Pipe Line generated additional revenues due to higher
transportation rates resulting from longer haul shipments, higher ancillary
service revenues and increased volumes. The independent terminals benefited from
a contract settlement associated with the early termination of an affiliate's
storage agreement.
Partially offsetting these increases were reduced transportation
volumes on the partnership's ammonia pipeline system resulting from high prices
for natural gas, the primary component in the production of ammonia.
The partnership's general and administrative expenses decreased from
first-quarter 2002 primarily due to the establishment of a cap on these expenses
negotiated when the partnership acquired Williams Pipe Line.
Although the Williams Pipe Line system was acquired April 11, 2002, the
acquisition is treated similar to a pooling of interest under accounting rules
requiring that historical financial statements be restated to include the
results from Williams Pipe Line.
The increase in net income was primarily attributable to the higher
operating profit. Increased income resulting from the elimination of income
taxes due to the partnership structure was offset by increased interest expense
associated with the Williams Pipe Line acquisition.
Diluted earnings per unit increased to 99 cents for first-quarter 2003
compared with 72 cents for the same period in 2002. Based on accounting rules,
per unit numbers are not restated to include Williams Pipe Line results prior to
the partnership's ownership.
The average number of limited partner units outstanding on a diluted
basis was 27.3 million units for first-quarter 2003 compared with 11.4 million
units for first-quarter 2002.
MORE
PAGE 2/2 WILLIAMS ENERGY PARTNERS REPORTS 32 PERCENT PROFIT GROWTH
"Our refined products businesses continue to provide outstanding
results and the market conditions affecting our ammonia business are improving,"
said Don Wellendorf, chief executive officer. "We remain focused on the key
components of our strategy, which are excellent customer service, safe
operations and growth in cash flow through organic opportunities and accretive
acquisitions."
The partnership announced on April 21 that Williams (NYSE:WMB) has
agreed to sell its 54.6 percent interest in Williams Energy Partners to a new
entity formed jointly by private equity firms Madison Dearborn Partners, LLC and
Carlyle/Riverstone Global Energy and Power Fund II, L.P. Before consideration of
the one-time transition expenses associated with the partnership's separation
from Williams, management expects earnings per unit for the second quarter to be
between 80 and 85 cents. Expectations for second quarter are lower than the same
period in 2002 primarily due to a higher weighted average number of units
outstanding during 2003 resulting from the second-quarter 2002 equity issuances
associated with the financing of the Williams Pipe Line system. After
consideration of the one-time transition costs, which will not impact
distributable cash generated per unit, management expects earnings per unit
between 50 and 55 cents for the second quarter.
Management remains comfortable with the annual guidance previously
provided for earnings per unit between $3.25 and $3.35 for the full-year 2003.
Current analyst expectations for 2003 average $3.30.
"Our businesses have continued their outstanding record of exceeding
earnings expectations," said John Chandler, chief financial officer. "Because of
our strong first-quarter results as well as our expectations for the remainder
of the year, our earnings guidance for the year remains unchanged, even after
consideration of the one-time expense items associated with the partnership's
separation from Williams."
An investor call with management regarding first-quarter 2003 earnings
is scheduled today at 1:30 p.m. Eastern. To participate, dial (800) 289-0468 and
provide code 656940. International callers should dial (913) 981-5517 and
provide the same code. A webcast also will be available at
www.williamsenergypartners.com/calendar.jsp.
Audio replays of the conference call will be available from 4:30 p.m.
Eastern today through midnight on May 2. To access the replay, dial (888)
203-1112. International callers should dial (719) 457-0820. The access replay
code is 656940. The webcast also will be available for replay at
www.williamsenergypartners.com.
ABOUT WILLIAMS ENERGY PARTNERS L.P.
Williams Energy Partners L.P. is a publicly traded partnership formed to own,
operate and acquire a diversified portfolio of energy assets. The partnership
primarily transports, stores and distributes refined petroleum products and
ammonia.
###
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
filings with the Securities and Exchange Commission.
WILLIAMS ENERGY PARTNERS L.P.
CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER UNIT AMOUNTS)
(UNAUDITED)
<Table>
<Caption>
THREE MONTHS ENDED
MARCH 31,
------------------------------
2002 2003
------------- -------------
Transportation and terminals revenues:
Third party ................................................................. $ 72,753 $ 79,463
Affiliate ................................................................... 7,569 8,251
Product sales revenues:
Third party ................................................................. 6,625 31,948
Affiliate ................................................................... 15,491 53
Affiliate management fee revenues .............................................. 210 --
------------- -------------
Total revenues ............................................................ 102,648 119,715
Costs and expenses:
Operating ................................................................... 32,196 33,751
Environmental ............................................................... 870 1,797
Environmental reimbursed by Williams ........................................ -- (1,186)
Product purchases ........................................................... 18,409 27,426
Depreciation and amortization ............................................... 8,964 9,379
Affiliate general and administrative ........................................ 13,457 10,438
------------- -------------
Total costs and expenses ............................................... 73,896 81,605
------------- -------------
Operating profit ............................................................... 28,752 38,110
Interest expense:
Affiliate interest expense .................................................. 407 --
Other interest expense ...................................................... 906 9,031
Interest income ................................................................ (550) (526)
Debt placement fee amortization ................................................ 33 547
Other (income)/expense ......................................................... (986) --
------------- -------------
Income before income taxes ..................................................... 28,942 29,058
Provision (benefit) for income taxes ........................................... 7,816 --
------------- -------------
Net income (loss) .............................................................. $ 21,126 $ 29,058
============= =============
Allocation of net income:
Limited partners' interest in income applicable to the period after
February 9, 2001 ......................................................... $ 8,265 $ 27,008
General partner's interest in net income .................................... 242 2,050
------------- -------------
Portion applicable to partners' interests ................................ 8,507 29,058
Portion applicable to non-partnership interests ............................. 12,619 --
------------- -------------
Net income ................................................................ $ 21,126 $ 29,058
============= =============
Basic net income per limited partner unit ...................................... $ 0.73 $ 0.99
============= =============
Weighted average number of limited partner units outstanding used for basic
net income per unit calculation ............................................. 11,359 27,190
============= =============
Diluted net income per limited partner unit .................................... $ 0.72 $ 0.99
============= =============
Weighted average number of limited partner units outstanding used for diluted
net income per unit calculation ............................................. 11,407 27,318
============= =============
</Table>
WILLIAMS ENERGY PARTNERS L.P.
OPERATING STATISTICS
<Table>
<Caption>
THREE MONTHS ENDED
MARCH 31,
---------------------------
2002 2003
------------ ------------
WILLIAMS PIPE LINE SYSTEM:
Transportation revenue per barrel 88.4 98.0
shipped (cents per barrel)
Transportation barrels shipped 52.1 52.7
(million barrels)
Barrel miles (billions) 14.5 15.8
PETROLEUM PRODUCTS TERMINALS:
Marine terminal average storage 16.1 15.8
capacity utilized per month
(million barrels)
Marine terminal throughput 5.0 5.3
(million barrels)
Inland terminal throughput 13.9 12.6
(million barrels)
AMMONIA PIPELINE SYSTEM:
Volume shipped (thousand tons) 257 47
</Table>
WILLIAMS ENERGY PARTNERS L.P.
OPERATING MARGIN
(UNAUDITED, IN THOUSANDS)
<Table>
<Caption>
THREE MONTHS ENDED
MARCH 31,
---------------------------
2002 2003
------------ ------------
WILLIAMS PIPE LINE SYSTEM:
Transportation and terminals revenues $ 56,608 $ 64,727
Less: Operating expenses 23,639 24,542
Environmental expenses 870 1,797
Environmental expenses reimbursed by Williams -- (1,099)
------------ ------------
Transportation and terminals operating margin 32,099 39,487
Product sales revenues 21,608 29,141
Less: Product purchases 18,409 27,426
------------ ------------
Product operating margin 3,199 1,715
------------ ------------
Management fee revenue 210 --
------------ ------------
Operating margin $ 35,508 $ 41,202
============ ============
PETROLEUM PRODUCTS TERMINALS:
Total revenues $ 19,847 $ 24,236
Less: Operating expenses 7,412 8,069
------------ ------------
Operating margin $ 12,435 $ 16,167
============ ============
AMMONIA PIPELINE SYSTEM:
Total revenues $ 4,375 $ 1,611
Less: Operating expenses 1,145 1,140
Environmental expenses reimbursed by Williams -- (87)
------------ ------------
Operating margin $ 3,230 $ 558
============ ============
Total operating margin $ 51,173 $ 57,927
Less: Depreciation and amortization 8,964 9,379
Affiliate general and administrative 13,457 10,438
------------ ------------
Operating profit $ 28,752 $ 38,110
============ ============
</Table>