FERC approves Northwest Pipeline pre-filed rate settlement

TULSA, Okla. - Williams Partners L.P. (WPZ) on April 27 announced that its Northwest Pipeline system received approval from the Federal Energy Regulatory Commission on a pre-filed rate settlement.

Northwest filed a Stipulation and Settlement Agreement with the FERC on March 15.

The supporting or non-opposing customers named in the settlement represent approximately 99.5 percent of Northwest's long-term firm transportation and storage capacity.

Williams (WMB) owns approximately 69 percent of Williams Partners, including the general-partner interest.

"We're pleased to have reached a settlement with our customers. We appreciate the long-standing relationships with them that allowed us to work cooperatively and reach a timely quick settlement," said Randy Barnard, senior vice president of the partnership's interstate gas pipeline business.

The settlement is based on an annual cost of service of $466.5 million and established a new general system firm transportation rate of $0.44 per dekatherm, a 7.4 percent increase over the current rate. New rates will become effective Jan. 1, 2013. Northwest can file another rate case in three years and must file within five years. The settlement is in line with Williams Partners' and Williams' earnings and cash flow guidance for 2013 and 2014.

Williams Partners' Transco Pipeline in agreement, announces open season

Williams Partners L.P. (NYSE: WPZ) announced on April 4 that it is initiating a binding open season to April 25 for an expansion of its Transco interstate pipeline to provide incremental firm natural gas transportation capacity to markets in southern Virginia and northern North Carolina by 2015.

Williams owns 72 percent of Williams Partners, including the general-partner interest.

The Virginia Southside Expansion Project is being designed to provide incremental firm transportation service on the Transco pipeline from its existing Zone 6 Station 210 pooling point in Mercer County, N.J., to delivery points along Transco's South Virginia Lateral. The company has executed a precedent agreement to provide Dominion Virginia Power with 250,000 dekatherms per day of the capacity and will solicit bids in the open season from shippers for additional deliveries along the project path. The proposed in-service date is September 2015.

Dominion Virginia Power would use its capacity for a 1,300-megawatt, combined-cycle, natural gas-fired power station that it plans to build in Brunswick County, Va.

"Williams is excited by this opportunity to partner with Dominion to serve Virginia's power needs and open this part of the Commonwealth to additional economic development," said Randy Barnard, president of Williams Partners' natural gas pipeline business.

Williams Partners notes progress on natural gas supply hub in Pennsylvania

TULSA, Okla. - Williams Partners L.P. (NYSE: WPZ) on Feb. 21 announced two major milestones in its strategy to create a major natural gas supply hub in northeastern Pennsylvania.

Williams (NYSE: WMB) owns 72 percent of Williams Partners.

The new 120-mile Constitution Pipeline will connect Williams Partners' gathering system in Susquehanna County, Pa., to the Iroquois Gas Transmission and Tennessee Gas Pipeline systems in Schoharie County, NY. Williams Partners will own 75 percent of Constitution Pipeline and, through its affiliates, will provide construction, operation and maintenance services for the new pipeline. Cabot will own the remaining 25 percent.

The new pipeline will initially be designed to transport at least 500,000 dekatherms per day of Cabot's Marcellus production, but will be expandable to meet growing demand for takeaway capacity in northeast Pennsylvania.

Constitution Pipeline will be regulated by the Federal Energy Regulatory Commission (FERC). Williams Partners expects to initiate the FERC application process soon.

Williams Partners also has completed the acquisition of the Laser Northeast Gathering System and other midstream businesses from Delphi Midstream Partners, LLC. The original acquisition along with additional pipeline construction was funded with $329 million in cash and approximately 7.5 million Williams Partners units.

These two projects are key steps in Williams Partners' strategy to create the Susquehanna Supply Hub, a major natural gas supply hub in northeastern Pennsylvania.

By 2015, Williams Partners expects the Susquehanna Supply Hub to be capable of delivering more than three billion cubic feet per day (Bcf/d) of Marcellus Shale production into four major interstate gas pipeline systems.

"We are developing all the key elements of a major new supply area hub, where we can provide Marcellus Shale producers in northeast Pennsylvania with a large-scale gathering system that has significant takeaway capacity to the best available markets," said Alan Armstrong, chief executive officer of Williams Partners' general partner. "It's key to our strategy of providing large-scale infrastructure and continuing to build on our significant fee-based midstream and gas pipeline businesses."

Williams Partners' gathering system in northeastern Pennsylvania currently covers three counties and has a capacity of 750 million cubic feet per day (MMcf/d). With the recent start-up of the Springville pipeline, it is now connected to three major interstate gas pipeline systems - Williams Partners' Transco system, Tennessee Gas Pipeline and Millennium Pipeline.

Williams Partners notes progress on natural gas supply hub in Pennsylvania

TULSA, Okla. - Williams Partners L.P. (NYSE: WPZ) on Feb. 21 announced two major milestones in its strategy to create a major natural gas supply hub in northeastern Pennsylvania.

Williams (NYSE: WMB) owns 72 percent of Williams Partners.

The new 120-mile Constitution Pipeline will connect Williams Partners' gathering system in Susquehanna County, Pa., to the Iroquois Gas Transmission and Tennessee Gas Pipeline systems in Schoharie County, NY. Williams Partners will own 75 percent of Constitution Pipeline and, through its affiliates, will provide construction, operation and maintenance services for the new pipeline. Cabot will own the remaining 25 percent.

The new pipeline will initially be designed to transport at least 500,000 dekatherms per day of Cabot's Marcellus production, but will be expandable to meet growing demand for takeaway capacity in northeast Pennsylvania.

Constitution Pipeline will be regulated by the Federal Energy Regulatory Commission (FERC). Williams Partners expects to initiate the FERC application process soon.

Williams Partners also has completed the acquisition of the Laser Northeast Gathering System and other midstream businesses from Delphi Midstream Partners, LLC. The original acquisition along with additional pipeline construction was funded with $329 million in cash and approximately 7.5 million Williams Partners units.

These two projects are key steps in Williams Partners' strategy to create the Susquehanna Supply Hub, a major natural gas supply hub in northeastern Pennsylvania.

By 2015, Williams Partners expects the Susquehanna Supply Hub to be capable of delivering more than three billion cubic feet per day (Bcf/d) of Marcellus Shale production into four major interstate gas pipeline systems.

"We are developing all the key elements of a major new supply area hub, where we can provide Marcellus Shale producers in northeast Pennsylvania with a large-scale gathering system that has significant takeaway capacity to the best available markets," said Alan Armstrong, chief executive officer of Williams Partners' general partner. "It's key to our strategy of providing large-scale infrastructure and continuing to build on our significant fee-based midstream and gas pipeline businesses."

Williams Partners' gathering system in northeastern Pennsylvania currently covers three counties and has a capacity of 750 million cubic feet per day (MMcf/d). With the recent start-up of the Springville pipeline, it is now connected to three major interstate gas pipeline systems - Williams Partners' Transco system, Tennessee Gas Pipeline and Millennium Pipeline.

Williams Partners seeks FERC OK for more natural gas service to Northeast

TULSA, Okla. - Williams Partners L.P. (NYSE: WPZ) announced on Dec. 14 that its Transco pipeline has filed an application with the Federal Energy Regulatory Commission (FERC) to provide 250,000 dekatherms per day of incremental, year-round firm natural gas transportation capacity to serve growing markets in the Northeast by November 2013.

The Northeast Supply Link project is designed to expand certain segments of the existing Transco pipeline in Pennsylvania and New Jersey to transport robust domestic supplies of natural gas to growing markets in the Northeast.

"Because of its existing location, the Transco pipeline is well positioned to connect vast domestic natural gas supplies with growing markets in New York, New Jersey and Pennsylvania," said Randy Barnard, president of Williams' natural gas pipeline business. "This increased access will not only enhance reliability of natural gas service, but should contribute to a more stable gas and electric pricing environment in markets served by the project."

The proposed expansion will primarily consist of approximately 12 miles of new pipe at various locations in Pennsylvania and New Jersey, in addition to a new 25,000-horsepower compressor facility in Essex County, N.J., along with other facility modifications. The capital cost of the project is estimated to be $341 million.

Most of the new pipe will be installed either entirely within or parallel to existing pipeline and utility rights-of-way. The new Essex County compressor facility will be constructed on land already owned by Williams. All other compression-related activities will be performed entirely within existing compressor station facilities.

If approved, compressor station construction would begin in November 2012 with pipeline construction following in the spring of 2013.

Williams Partners signs agreements with Hess, Chevron for Gulfstar FPS™

TULSA, Okla. - Williams Partners L.P. (NYSE: WPZ) announced on Oct. 25 that it has signed multiple agreements with Hess Corp. (NYSE: HES) and Chevron (NYSE: CVX) to provide production handling, export pipeline, oil and gas gathering and gas processing services in the Tubular Bells field development located in the eastern deepwater Gulf of Mexico.

Hess and Chevron, owners of the Tubular Bells leases, will utilize Williams Partners' proprietary floating production system, Gulfstar FPS™. Williams Partners expects Gulfstar FPS to be capable of serving as a central host facility for other deepwater prospects in the area.

A Letter of Award for the project was announced in a May 24, 2011, news release.

Williams Partners will design, construct and install its Gulfstar FPS with a capacity of 60,000 barrels of oil per day, up to 200 million cubic feet of natural gas per day (MMcf/d) and the capability to provide seawater injection services. The facility is a spar-based floating production system that utilizes traditional three-level topsides mated to a classic spar hull. This standard design approach will allow customers to reduce their cycle time from discovery to first oil.

From sanctioning the project to completion, Gulfstar FPS is expected to be delivered in 30 months.

"This agreement demonstrates the value that deepwater producers place on reducing cycle time and costs. It also reflects the commercial benefit of our reputation for reliability and our commitment to safety - both in our deployment of innovative solutions and in our operations. We are delivering a solution that has positive, meaningful bottom-line impact for producers," said Rory Miller, president of Williams Partners' midstream business.

This Gulfstar FPS will be the first spar-based floating production system with major components to be built entirely in the U.S. Gulf Coast area.

"This project will create approximately 1,000 U.S. jobs for 30 months," said Miller. "These jobs are spread from coast to coast across more than 20 states."

11 large-cap MLP stocks for dividend lovers

For many investors, publicly traded master limited partnerships (MLPs) can be valuable tools for income. As partnerships, MLPs are subject to a special tax code and avoid federal and state corporate income taxes. Their distributions to investors are partially or entirely tax-deferred.

Most MLPs are high yield investments and increase their distributions to investors each quarter, achieving a consistent dividend growth for years. However, investing in MLPs can be tricky due to the disadvantages of holding them in tax-deferred accounts. Investors should consult with their tax advisors before adding MLPs to their portfolios.

The market data for stocks listed below are sourced from Fidelity and data is as of Aug. 26, 2011. All companies on the list have a 12-month dividend yield of at least five percent. The stocks also have market capitalizations above $3 billion and positive average dividend growth over the past five years. The average dividend yield of these 11 stocks is 7.00 percent, while their five-year average dividend growth is 6.29 percent on average.

Boardwalk Pipeline Partners (NYSE: BWP) is a U.S. energy partnership that provides natural gas transportation and storage services in the United States. BWP lost -17.68 percent since the beginning of this year and the stock now has an 8.59 percent dividend yield. In the past five years, BWP increased its dividend payments by 6.68 percent annually. The stock recently traded at $24.56 and has a market cap of $4.84 billion. Jim Simons and Chuck Royce are prominent BWP investors.

Energy Transfer Partners (NYSE: ETP) is a limited partnership that operates in the natural gas transportation business in the United States. ETP lost -8.24 percent year-to-date and the stock now has a 8.24 percent dividend yield. In the past five years, ETP increased its dividend payments by 6.99 percent annually. The stock recently traded at $43.36 and has a market cap of $9.06 billion. Jim Simons holds the largest ETP position.

Enbridge Energy Partners (NYSE: EEP) is a U.S. energy partnership providing crude oil, liquid petroleum and natural gas transportation and storage services in the United States. EEP lost -7.85 percent since the beginning of this year and it has a 7.59 percent dividend yield. In the past five years, EEP increased its dividend payments by 2.86 percent annually. The stock recently traded at $27.34 and has a market cap of $7.17 billion.

NuStar Energy (NYSE: NS) is a U.S. partnership that operates petroleum terminals and provides petroleum transportation services. NS lost -13.11 percent in 2011 and the stock now has a high dividend yield of 7.53 percent. In the past five years, NS increased its dividend payments by 4.35 percent annually. The stock recently traded at $57.40 and has a market cap of $3.62 billion.

Kinder Morgan Energy Partners (NYSE: KMP) is a U.S. energy partnership providing energy products transportation and storage services. KMP has a 6.68 percent dividend yield and returned 1.13 percent since the beginning of this year. In the past five years, KMP increased its dividend payments by 7.26 percent annually. The stock recently traded at $67.82 and has a market cap of $22.38 billion.

Buckeye Partners (NYSE: BPL) is a U.S. energy partnership that distributes petroleum in the United States. BPL lost -5.12 percent since the beginning of this year and it now has a 6.58 percent dividend. In the past five years, BPL increased its dividend payments by 5.84 percent annually. The stock recently traded at $60.45 and has a market cap of $5.55 billion. John Phelan's MSD Capital and Michael Messner’s Seminole Capital are the most prominent BPL investors.

Plains All American Pipeline (NYSE: PAA) is a limited partnership that provides energy products transportation, storage and marketing services in the United States and Canada. PAA has a 6.50 percent dividend yield but lost -1.08 percent since the beginning of this year. In the past five years, PAA increased its dividend payments by 6.27 percent annually. The stock recently traded at $59.36 and has a market cap of $8.78 billion.

Markwest Energy Partners (NYSE: MWE) is a U.S. partnership that provides natural gas transportation and processing services in the United States. MWE has a 6.03 percent dividend yield and gained 6.32 percent since the beginning of this year. In the past five years, MWE increased its dividend payments by 8.76 percent annually. The stock recently traded at $44.10 and has a market cap of $3.45 billion.

Enterprise Product Partners (NYSE: EPD) is a U.S. partnership that distributes natural gas and crude oil in the United States, Canada and the Gulf of Mexico. EPD has a 5.89 percent dividend yield and returned 1.05 percent year-to-date. In the past five years, EPD increased its dividend payments by 5.98 percent annually. The stock recently traded at $40.34 and has a market cap of $33.78 billion.

Williams Partners (NYSE: WPZ) is an American energy partnership that engages in natural gas exploration, processing, storage and transportation. WPZ has a 5.46 percent dividend yield and gained 16.15 percent since the beginning of this year. In the past five years, WPZ raised its dividend payments by 11.50 percent annually. The stock recently traded at $52.00 and has a market cap of $15.03 billion.

Magellan Midstream Partners (NYSE: MMP) is a U.S. partnership that provides transportation and storage services for refined petroleum products. MMP has a 5.29 percent dividend yield and returned 6.50 percent since the beginning of this year. In the past five years, MMP increased its dividend payments by 6.33 percent annually. The stock recently traded at $57.81 and has a market cap of $6.45 billion.