Williams Partners L.P. Reports Third-Quarter 2007 Financial Results.

- Four Corners Acquisition, Steady Operational Performance Drive Strong Increase in Distributable Cash Flow per Unit

- Four Corners NGL Margins, Higher Conway Revenue, Higher Discovery Equity Earnings Highlight 3Q Performance

- Cash Distribution Increased to 55 Cents

TULSA, Okla., Nov. 1 /PRNewswire-FirstCall/ -- Williams Partners L.P. today announced unaudited third-quarter 2007 net income of $29.4 million, or 62 cents per common unit, compared with third-quarter 2006 net income of $45.4 million and 58 cents per common unit.

Year-to-date through Sept. 30, Williams Partners reported net income of $69.4 million, or $1.41 per common unit, compared with $119.7 million and $1.19 cents per common unit for the same time frame last year.

The third-quarter and year-to-date 2007 results were lower than the restated 2006 results due primarily to interest expense associated with the Four Corners acquisition. No interest expense had been allocated to these assets when they were held by Williams .

Distributable cash flow for limited-partner unitholders totaled $28.5 million for the third quarter of 2007, compared with $13.5 million for the same period in 2006. The key measure of distributable cash flow per weighted-average limited partner unit was 72 cents in third-quarter 2007, compared with 62 cents for third-quarter 2006, an increase of 16 percent.

The increase in distributable cash flow for the quarter is due to the growth of the partnership through its 2006 acquisition of Four Corners and the partnership's steady financial performance.

Year-to-date through Sept. 30, distributable cash flow for limited-partner unitholders totaled $77 million, compared with $26.7 million for 2006. Also during the first nine months of 2007, distributable cash flow per weighted- average limited partner unit was $1.96, compared with $1.53 for 2006, an increase of 28 percent.

Recurring Segment Profit Results

Consolidated recurring segment profit for Williams Partners for third-quarter 2007 was $54.9 million, compared with $55.9 million for third- quarter 2006.

Recurring segment profit for Gathering & Processing -- West, which includes Four Corners, was $43.2 million in third-quarter 2007, compared with $47.7 million in 2006. The decline in recurring segment profit was primarily the result of $3.7 million higher net product imbalance losses at Four Corners. Gains and losses from product imbalances are an unpredictable component of operating costs.

Recurring segment profit for the NGL Services segment improved significantly for the third-quarter. Its third-quarter recurring segment profit was $4 million, compared with $2.2 million in 2006. Lower operating costs, including $1 million lower losses on cavern empties, and increased storage and product upgrade revenue at Conway drove the quarterly improvement. Gains and losses on cavern empties are an unpredictable component of operating costs.

Equity earnings from the partnership's 60 percent interest in Discovery were $1.8 million higher in the third quarter, due primarily to higher NGL sales volumes.

For the nine-month period ending Sept. 30, consolidated recurring segment profit for Williams Partners was $139.5 million, compared with $133.8 million for the first nine months of 2006.

Gathering & Processing -- West reported recurring segment profit of $113.4 million in the first nine months of 2007, compared with $112.1 million for 2006. Nine percent higher NGL margins, which were partially offset by higher operating expenses, drove the slight improvement in the year-to-date results.

Year-to-date through Sept. 30, NGL Services reported recurring segment profit of $11.1 million, compared with $6.2 million for the same period in 2006. The segment benefited from lower operating costs and higher storage revenue, due to higher demand, at Conway. These gains were partially offset by lower fractionation revenues.

Reconciliations of the partnership's distributable cash flow for limited-partner unitholders to net income, as well as recurring segment profit to segment profit, accompany this press release.

Chief Operating Officer Perspective

"Our growing portfolio of assets continues to deliver steady performance," said Alan Armstrong, chief operating officer of the general partner of Williams Partners. "We've increased cash distributions to unitholders for seven consecutive quarters, distributable cash flow per unit is up nearly 30 percent year to date, and our distribution coverage ratio continues to be strong.

"Gathering volumes at Four Corners are responding positively to our well-connect program, Discovery continues to capture new business and Conway's storage revenues and distributable cash flow continues to increase," Armstrong said.

Increase in Cash Distribution to Unitholders

Subsequent to the close of the third quarter, the board of directors of the general partner of Williams Partners increased the quarterly cash distribution payable to unitholders to 55 cents from 52.5 cents. This was the seventh consecutive quarter the partnership increased its cash distribution.

Distributable Cash Flow and Recurring Segment Profit Definitions

Distributable cash flow per weighted average limited-partner unit is a key measure of the partnership's financial performance and available cash flows to unitholders.

Williams Partners defines distributable cash flow per limited partner unit as distributable cash flow, as defined in the following paragraph, attributable to partnership operations plus the cash distributed by Discovery. The total distributable cash flow attributable to partnership operations is then allocated among the general partner and the limited partners in accordance with the…