Williams Partners plans 29.4% distribution cut

Williams Partners (WPZ) plans to cut its quarterly distribution by almost 30 percent this quarter.

Effective with the quarterly distribution for the quarter ending March 31, 2017, Williams Partners expects to pay a quarterly distribution of $0.60 ($2.40 per unit on an annualized basis), a reduction of approximately 29% from Williams Partners’ expected fourth quarter 2016 distribution of $0.85 per common unit ($3.40 per unit on an annualized basis).

Williams Partners expects distribution growth of 5-7% annually over the next several years. Future quarterly distributions are subject to quarterly approval by Williams Partners’ board of directors.
On the other hand Williams (WMB) plans to raise its quarterly dividend by 50% to $0.30 quarterly.

Williams Partners (WPZ) is a natural gas infrastructure master limited partnership with operations across the natural gas value chain from gathering, processing and interstate transportation of natural gas and natural gas liquids to petchem production of ethylene, propylene and other olefins. Williams (WMB), a provider of U.S. natural gas infrastructure, owns approximately 72 percent of Williams Partners.

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