Williams Pipeline Partners Considers IPO

Williams Pipeline Partners has filed registration statement with the Securities and Exchange Commission proposing an underwritten initial public offering of common units representing limited partner interests.

Williams owns and operates natural gas transportation and storage assets. The initial asset will be a 25 percent interest in Williams' Northwest Pipeline. Northwest Pipeline includes a 3,900-mile pipeline system that accesses natural gas supplies in the Rocky Mountains, Canada and the San Juan Basin. It serves markets in the Pacific Northwest and includes a natural gas storage capacity of approximately 12.4 billion cubic feet. Williams will continue to own the 75 percent interest in Northwest Pipeline while Williams employees continue operations.

Williams expects to offer 13 million common units in the IPO, representing a 53.6 percent limited partner interest. Following this offering, the subsidiary of Williams will own 2 percent general partner interest, all of the incentive distribution rights, and a 44.4 percent limited partner interest.

Williams is also anticipating a 30-day option for the underwriters to purchase up to 1.95 million additional common units. If the underwriters purchase all of the additional common units, the Williams subsidiary's limited partner interest would be reduced to 37.1 percent

Sale of the common units is expected in the fourth quarter of this year. The partnership plans to list the common units on the New York Stock Exchange under the symbol "WMZ."