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HOUSTON, May 5 /PRNewswire/ — EnergyCurrent.com, a leading publisher of upstream energy business news focused on offshore petroleum and emerging and alternative energy resources, has an updated appearance and released several new features in advance of the 2008 Offshore Technology Conference.
“The redesign of EnergyCurrent represents a major step forward in our efforts to be the global leader in offshore oil and gas and emerging energy news” said Billy Levy, General Manager of EnergyCurrent. “Our new site design gives readers around the world better access to our expansive coverage of the upstream energy sector. Our new logo and tagline say it best, we are News for the business of Energy.”
The new site design features significant improvements in overall readability and navigation, allowing readers to more easily drill down to the news that is important for them. New features include an events calendar, industry links, a translation tool powered by Google and the EnergyWiki.
“EnergyWiki represents an opportunity for our growing readership to contribute to a free, energy focused business encyclopedia. We are hopeful that user contribution will expand the content of EnergyWiki so that it becomes an important resource for the rapidly growing energy industry.”
About EnergyCurrent.com:
EnergyCurrent.com is News for the business of Energy, a one-stop resource for the latest news on the rapidly growing upstream energy business segments of Offshore Oil and Gas and Emerging and Alternative Energy resources. With more than 10,000 stores published to date, coverage focuses on global offshore exploration and production of oil and gas, field development and construction, the global LNG industry and renewable energy resources such as wind energy, wave energy, solar power, and bio-fuels. EnergyCurrent.com is free to read online and offers a free daily email digest recapping the previous day’s stories, an events calendar and a free business encyclopedia, EnergyWiki.
Visit us online at .

CONTACT:
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EnergyCurrent.com
832.463.3089
832.463.3100

EnergyCurrent.com

CLEVELAND, April 23 /PRNewswire/ — As an active advocate of small business in the evolution of electric deregulation since 1999, the Council of Smaller Enterprises (COSE) commends Ohio’s General Assembly for recognizing the importance of energy efficiency education and support for small business with the passage of SB 221.
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“The General Assembly’s recent action with the passage of SB 221 is a step in moving Ohio to the next phase of its electric market,” said Steve Millard, president and executive director of COSE. “Small businesses typically do not have the resources or the expertise to keep up with the complexity of electricity markets. The support that is provided by the energy efficiency funding recognizes that efforts focused on small business can have an impact on the efficiency of energy consumption in Ohio.”
COSE had advocated for rates for small businesses that are equitable and predictable in an effort to ensure that small businesses can plan and operate as successfully as possible. Since 1999, COSE members have saved more than $10 million on the cost of electricity, through the COSE Electric Aggregation Program. COSE has also worked to provide small businesses with education and information about energy efficiency, and has focused on three key principals for small business energy efficiency: 1) a predictable, stable approach to avoid the rate shock that other market transitions have experienced; 2) elimination of historical subsidies for residential and industrial customer rebates and incentives at the cost of small businesses and 3) the creation of education and support resources to help small businesses become more efficient and effective users of electricity.
“We are pleased that the final version of the bill signed by Governor Strickland will recognize that each customer class should stand on its own with relation to its cost of service,” said Millard. “Small business has been the easiest target for well organized consumer groups and large industries to shift the costs of their special incentives. Small businesses and commercial class customers should receive rates that reflect their own cost of service in the future.”
COSE has also been working to advocate for a predictable and stable cost environment for small business. Most small businesses can’t afford large variances in the costs they incur to operate their businesses, and many could fail if Ohio faced the large price volatility of other states like California, Maryland and New Jersey. According to Millard, the final bill ensures that the PUCO is able to make sure Ohioans can obtain the most cost effective means of electric supply- whether from Ohio’s utilities or the open market. And, when the open market does make sense for Ohio, the predictable, planned approach to switching from regulated to market pricing is valuable for that transition.
“COSE appreciates the intense efforts and the progress the Governor and the General Assembly has made on Ohio’s next steps for electric regulation in Ohio, and we stand ready to support those working to create a more effective environment for small business in our state,” Millard said.
COSE, Northeast Ohio’s largest small business support organization, strives to help small businesses grow and maintain their independence. Comprised of more than 17,000 member companies, COSE has a long history of fighting for the rights of all small business owners, whether it’s through group purchasing programs in healthcare, workers’ compensation, payroll services, or shipping, or advocating for specific changes in legislation or regulation. COSE also produces more than 100 networking and business education events each year - all focused on connecting our members to each other to increase their productivity and sales. ()

Council of Smaller Enterprises (COSE)

SPOKANE, Wash., April 30 /PRNewswire-FirstCall/ — Avista Corp. today reported net income of $25.2 million, or $0.47 per diluted share, for the first quarter of 2008, an increase compared to net income of $14.1 million, or $0.26 per diluted share, for the first quarter of 2007. The primary reason for the increase in consolidated results was the net loss from Avista Energy of $7.6 million, or $0.14 per diluted share, for the first quarter of 2007. Avista Utilities had net income of $23.3 million and contributed $0.44 per diluted share, for the first quarter of 2008, an increase from net income of $19.9 million and a contribution of $0.37 per diluted share, for the first quarter of 2007.
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“We are pleased with our financial results for the first quarter of 2008. The improvement in our utility earnings was primarily due to the Washington general rate increase implemented at the beginning of the year. Our outlook for the remainder of the year remains positive due in part to current snowpack conditions and our issuance of $250 million of debt to replace high cost maturing debt,” said Avista Chairman, President and Chief Executive Officer Scott L. Morris.
The following table shows results for the first quarter of 2008 as compared to the first quarter of 2007:
($ in thousands, except per-share data) Q1 2008 Q1 2007
Operating Revenues $496,307 $459,187
Income from Operations $59,061 $38,937
Net Income $25,231 $14,094

Net Income (Loss) by business Segment:
Avista Utilities $23,314 $19,927
Advantage IQ $1,766 $1,584
Other * $151 $(7,417)

Contribution to earnings per diluted share by business Segment:
Avista Utilities $0.44 $0.37
Advantage IQ $0.03 $0.03
Other * $ - $(0.14)
Total earnings per diluted share $0.47 $0.26

* Results for Q1 2007 include a net loss from Avista Energy of
$7.6 million, or $0.14 per diluted share.

First Quarter of 2008 Highlights

Avista Utilities: Due to colder than normal weather and lower than expected runoff, we absorbed $3.4 million of costs in the first quarter of 2008 under the Energy Recovery Mechanism (ERM) in Washington. In addition to lower than normal hydroelectric generation, fuel and purchased costs were higher than expected to meet increased demand. As a result, our utility earnings were slightly lower than planned for the first quarter of 2008. Based on current snowpack conditions that are well above normal levels, we may have favorable hydroelectric generation conditions during the period May through July of 2008. Actual hydroelectric generation will depend on precipitation, temperatures and other variables during the remainder of the year. It is important to note that the amounts recognized under the ERM can vary significantly from quarter to quarter due to a variety of factors including the level of hydroelectric generation, as well as changes in purchased power and fuel costs.
As approved by the Washington Utilities and Transportation Commission (WUTC) and previously reported, electric rates for our Washington customers increased by 9.4 percent (designed to increase annual revenues by $30.2 million) and natural gas rates increased by 1.7 percent (designed to increase annual revenues by $3.3 million) effective Jan. 1, 2008. As approved by the Public Utility Commission of Oregon in March 2008, natural gas rates for our Oregon customers increased 0.7 percent (designed to increase annual revenues by $0.9 million) effective April 1, 2008 and are expected to increase an additional 1.1 percent (designed to increase annual revenues by an additional $1.4 million) effective Nov. 1, 2008. The Nov. 1, 2008 increase is related to placing into service a natural gas construction project and the allocation of natural gas storage assets to our Oregon operations and may be adjusted downward if actual costs are lower than currently estimated.
We filed requests for increases in electric and natural gas general rates in Washington in March 2008 and in Idaho in April 2008. Any rate adjustments, if approved by the regulatory commissions, would most likely become effective in 2009.
Advantage IQ: Net income from Advantage IQ for the first quarter of 2008 increased as compared to the prior year primarily due to an increase in operating revenues as a result of customer growth, partially offset by a decrease in interest earnings on funds held for customers and increased operating expenses from expanding operations. As a result of the decline in short-term interest rates, net income from Advantage IQ may decrease slightly for the full year of 2008 as compared to 2007. Customer growth and operating efficiencies are expected to be offset by a decrease in Advantage IQ’s interest revenue.
Advantage IQ’s revenues for the first quarter of 2008 increased 14 percent as compared to the prior year and totaled $12.5 million. In the first quarter of 2008, Advantage IQ processed bills totaling $3.4 billion, an increase of 16 percent, as compared to the first quarter of 2007.
Other Businesses: Results from our other businesses improved as compared to the first quarter of 2007 primarily due to the net loss at Avista Energy in the prior year. The remaining activities of Avista Energy are no longer a reportable business segment and are included in “Other” for segment reporting purposes.
Liquidity and Capital Resources: On April 3, 2008, we issued $250 million (net proceeds of $247.5 million before company expenses) of 5.95 percent First Mortgage Bonds due in 2018. The net proceeds from the issuance, together with other available funds, will be used to pay the $273 million of 9.75 percent Unsecured Senior Notes that mature on June 1, 2008.
We are currently planning to issue additional long-term debt during the second half of 2008 to fund other maturing debt, as well as to provide additional funding for capital expenditures and other corporate purposes.
In December 2006, we entered into a sales agency agreement to issue up to 2 million shares of our common stock from time to time. We are currently planning to begin issuing common stock under this sales agency agreement during the second half of 2008.
Utility capital expenditures were $48 million for the first quarter of 2008. We expect utility capital expenditures to be approximately $200 million for the full year of 2008, and over $200 million in each of 2009 and 2010.
Earnings Guidance and Outlook
We are confirming our guidance for 2008 consolidated earnings to be in the range of $1.35 to $1.55 per diluted share. We expect Avista Utilities to contribute in the range of $1.20 to $1.40 per diluted share for 2008. Our outlook for Avista Utilities assumes, among other variables, normal precipitation, temperatures and hydroelectric generation for the remainder of the year. Our guidance for Advantage IQ continues to be a range of $0.10 to $0.12 per diluted share. We expect the other businesses to be between break-even and a loss of $0.03 per diluted share.
NOTE: We will host a conference call with financial analysts and investors on April 30, 2008, at 10:30 a.m. EDT to discuss this news release. The call is available at (866) 202-0886, passcode: 84328415. A replay of the conference call will be available through Wednesday, May 7, 2008. Call (888) 286-8010, passcode 79647041 to listen to the replay. A simultaneous webcast of the call is available on our website, .
Avista Corp. is an energy company involved in the production, transmission and distribution of energy as well as other energy-related businesses. Avista Utilities is our operating division that provides service to 352,000 electric and 311,000 natural gas customers in three Western states. Avista’s primary, non-regulated subsidiary is Advantage IQ. Our stock is traded under the ticker symbol “AVA.” For more information about Avista, please visit .
Avista Corp. and the Avista Corp. logo are trademarks of Avista Corporation.
The attached condensed consolidated statements of income, condensed consolidated balance sheets, and financial and operating highlights are integral parts of this earnings release.
This news release contains forward-looking statements, including statements regarding our current expectations for future financial performance and cash flows, capital expenditures, financing plans, our current plans or objectives for future operations, future hydroelectric generation projections and other factors, which may affect the company in the future. Such statements are subject to a variety of risks, uncertainties and other factors, most of which are beyond our control and many of which could have significant impact on our operations, results of operations, financial condition or cash flows and could cause actual results to differ materially from those anticipated in such statements.
The following are among the important factors that could cause actual results to differ materially from the forward-looking statements: weather conditions and their effect on energy demand and generation, including the effect of precipitation and temperatures on the availability of hydroelectric resources and the effect of temperatures on customer demand; changes in wholesale energy prices that can affect, among other things, cash needed to purchase electricity, natural gas for our retail customers and natural gas fuel for electric generation, and the value of surplus energy sold, as well as the market value of derivative assets and liabilities; volatility and illiquidity in wholesale energy markets, including the availability of willing buyers and sellers and prices of purchased energy and demand for energy sales; the effect of state and federal regulatory decisions affecting our ability to recover costs and/or earn a reasonable return including, but not limited to, the disallowance of costs that we have deferred; the potential effects of legislation or administrative rulemaking, including the possible adoption of national or state laws requiring resources to meet certain standards and placing restrictions on greenhouse gas emissions to mitigate concerns over global climate changes; the outcome of pending regulatory and legal proceedings arising out of the “western energy crisis” of 2000 and 2001, and including possible retroactive price caps and resulting refunds; the outcome of legal proceedings and other contingencies; changes in, and compliance with, environmental and endangered species laws, regulations, decisions and policies, including present and potential environmental remediation costs; wholesale and retail competition including, but not limited to, electric retail wheeling and transmission costs; the ability to relicense and maintain licenses for our hydroelectric generating facilities at cost-effective levels with reasonable terms and conditions; unplanned outages at any of our generating facilities or the inability of facilities to operate as intended; unanticipated delays or changes in construction costs, as well as our ability to obtain required operating permits for present or prospective facilities; natural disasters that can disrupt energy production or delivery, as well as the availability and costs of materials and supplies and support services; blackouts or disruptions of interconnected transmission systems; the potential for future terrorist attacks or other malicious acts, particularly with respect to our utility assets; changes in the long-term climate of the Pacific Northwest, which can affect, among other things, customer demand patterns and the volume and timing of streamflows to our hydroelectric resources; changes in future economic conditions in our service territory and the United States in general, including inflation or deflation; changes in industrial, commercial and residential growth and demographic patterns in our service territory; the loss of significant customers and/or suppliers; default or nonperformance on the part of any parties from which we purchase and/or sell capacity or energy; deterioration in the creditworthiness of our customers and counterparties; our ability to obtain financing through the issuance of debt and/or equity securities, which can be affected by various factors including our credit ratings, interest rates and other capital market conditions; the effect of any change in our credit ratings; changes in actuarial assumptions, the interest rate environment and the actual return on plan assets for our pension plan, which can affect future funding obligations, costs and pension plan liabilities; increasing health care costs and the resulting effect on health insurance provided to our employees and retirees; increasing costs of insurance, changes in coverage terms and our ability to obtain insurance; employee issues, including changes in collective bargaining unit agreements, strikes, work stoppages or the loss of key executives, as well as our ability to recruit and retain employees; the potential effects of negative publicity regarding business practices, whether true or not, which could result in, among other things, costly litigation and a decline in our common stock price; changes in technologies, possibly making some of the current technology obsolete; changes in tax rates and/or policies; and changes in our strategic business plans, which may be affected by any or all of the foregoing, including the entry into new businesses and/or the exit from existing businesses.
For a further discussion of these factors and other important factors, please refer to the company’s Annual Report on Form 10-K for the year ended Dec. 31, 2007. The forward-looking statements contained in this news release speak only as of the date hereof. The company undertakes no obligation to update any forward-looking statement or statements to reflect events or circumstances that occur after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible for management to predict all of such factors, nor can it assess the impact of each such factor on the company’s business or the extent to which any such factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement.
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AVISTA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Dollars in Thousands except Per Share Amounts)

First Quarter
2008 2007
Operating revenues $496,307 $459,187

Operating expenses:
Resource costs 324,146 307,713
Other operating expenses 65,564 66,177
Depreciation and amortization 22,451 22,365
Utility taxes other than income taxes 25,085 23,995
Total operating expenses 437,246 420,250

Income from operations 59,061 38,937

Other income (expense):
Interest expense, net of capitalized
interest (19,784) (21,067)
Other income - net 1,043 3,711
Total other income (expense) - net (18,741) (17,356)

Income before income taxes 40,320 21,581

Income taxes 15,089 7,487

Net income $25,231 $14,094

Weighted-average common shares
outstanding (thousands), basic 53,020 52,684

Weighted-average common shares
outstanding (thousands), diluted 53,382 53,322

Total earnings per common share, basic $0.48 $0.27

Total earnings per common share, diluted $0.47 $0.26

Dividends paid per common share $0.165 $0.145

Issued April 30, 2008

AVISTA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in Thousands)

March 31, December 31,
2008 2007
Assets
Cash and cash equivalents $12,986 $11,839
Restricted cash 120 4,068
Accounts and notes receivable 223,725 105,440
Other current assets 201,752 210,838
Total net utility property 2,371,251 2,351,342
Other property and investments 117,321 116,157
Regulatory assets for deferred
income taxes 115,984 117,461
Regulatory assets for pensions and
other postretirement benefits 49,322 51,006
Other regulatory assets 43,371 43,004
Non-current utility energy commodity
derivative assets 73,136 55,313
Power and natural gas deferrals 74,414 85,885
Unamortized debt expense 33,627 32,542
Other deferred charges 5,826 4,902

Total Assets $3,322,835 $3,189,797

Liabilities and Stockholders’ Equity
Accounts payable $139,468 $117,546
Current portion of long-term debt 179,700 427,344
Short-term borrowings 29,000 -
Other current liabilities 292,129 218,759
Long-term debt 752,536 521,489
Long-term debt to affiliated trusts 113,403 113,403
Regulatory liability for utility
plant retirement costs 210,807 209,357
Pensions and other postretirement
benefits 83,709 90,555
Deferred income taxes 440,595 440,918
Other non-current liabilities and
deferred credits 142,378 136,460

Total Liabilities 2,383,725 2,275,831

Common stock - net (53,048,994 and
52,909,013 outstanding shares) 727,707 726,933
Retained earnings and accumulated
other comprehensive loss 211,403 187,033

Total Stockholders’ Equity 939,110 913,966

Total Liabilities and
Stockholders’ Equity $3,322,835 $3,189,797

Issued April 30, 2008

AVISTA CORPORATION
FINANCIAL AND OPERATING HIGHLIGHTS
(Dollars in Thousands)

First Quarter
2008 2007
Avista Utilities
Retail electric revenues $177,687 $151,860
Retail kWh sales (in millions) 2,497 2,377
Retail electric customers at
end of period 352,361 345,907

Wholesale electric revenues $30,676 $26,308
Wholesale kWh sales (in millions) 311 342

Sales of fuel $14,578 $8,143
Other electric revenues $3,296 $3,857

Retail natural gas revenues $184,333 $177,573
Wholesale natural gas revenues $58,861 $43,534
Transportation and other
natural gas revenues $2,841 $2,991
Total therms delivered (in thousands) 263,663 246,734
Retail natural gas customers at
end of period 311,495 305,821

Income from operations (pre-tax) $55,800 $50,154
Net income $23,314 $19,927

Advantage IQ
Revenues $12,520 $10,999
Income from operations (pre-tax) $3,005 $2,576
Net income $1,766 $1,584

Other
Revenues $11,515 $33,922
Income (loss) from operations
(pre-tax) $256 $(13,793)
Net income (loss) $151 $(7,417)

Issued April 30, 2008

Avista Corp.

HOUSTON, May 27 /PRNewswire-FirstCall/ — Flotek Industries, Inc. , a technology-driven growth company serving the oil, gas, and mining industries, today revised its previously announced guidance for the year ending December 31, 2008. The Company revised earnings guidance to $1.12 to $1.22 per fully diluted share, as compared to prior guidance of $1.50 to $1.60 per fully diluted share, and 2007 fully diluted EPS of $0.88.
Although management’s expectations for 2008 remain very positive, several factors were identified by management in reviewing first quarter 2008 earnings, the original guidance model, and current business conditions which prompted the revision. The rationale for the revisions fall into the following categories:
1. First Quarter performance
2. Fine tuning guidance assumptions
3. Operations

Q1 performance

First Quarter performance was below management’s estimates on which guidance was based and the Company does not feel it can recapture those earnings in the remainder of the year. As described in the first quarter press release and earnings call, a four month delay in parts for the downhole tools segment and higher corporate costs contributed to quarterly performance that was not in line with management’s original estimates for the quarter. Revised guidance does not assume that this miss can be recaptured in the remaining three quarters.
Modeling
Revised guidance was impacted by a higher interest rate cost for the convertible debenture than originally assumed before credit market conditions worsened.
Operational
Chemical and Logistics — The integration of production chemical services into CESI and the rollout of the production chemicals business unit to additional geographic areas has not progressed as quickly as originally planned, but is being addressed. Rising commodity prices have occurred, however, the price increase in our chemical division has been accepted and is now in place and offsetting feedstock cost increases. The expenditures for our international expansion of the chemicals business is resulting in a global infrastructure allowing the offering of a suite of all Flotek products.
Downhole tools — As discussed in the earnings conference call, the rental tool division has seen cost cutting from competitors and after not participating in the cost cutting, the Company has begun competing on price in addition to service. This is currently impacting margins adversely. The impact of Teledrift has been as originally projected and the field operating profit is increasing in the downhole tool segment. Also the integration of CAVO downhole motors and Teledrift is proceeding as planned.
Artificial lift — There have been limited revisions to the artificial lift segment although the inflation in salary costs in the oilfield continues to impact all divisions.
Corporate — Third party professional fees were higher than originally budgeted and are being rigorously evaluated and monitored. Outside consultants have been or are being replaced with full time employees such as Head of Internal Audit and Head of Information Technology.
Jerry Dumas, Chairman of the Board, CEO and President reiterated, “As I stated in Flotek’s first quarter earnings call, we have conducted a comprehensive analysis of our performance to date, revisited issues on the horizon for our Company, and decided to lower guidance for the year although our core business fundamentals remain sound. We look to continued growth in 2008 through the successful acquisition of Teledrift, improving margins in drilling tools, strong microemulsion product sales and the appointment of Steve Reeves as COO. Although revising downward, I look to another successful year of growth for Flotek.”
About Flotek Industries, Inc.
Flotek is a global developer and distributor of innovative specialty chemicals, and downhole drilling and production equipment. Flotek manages automated bulk material handling, loading and blending facilities. It serves major and independent companies in the domestic and international oilfield service industry. Flotek Industries, Inc. is a publicly traded company headquartered in Houston, Texas, and its common shares are traded on the New York Stock Exchange under the ticker symbol “FTK”.
For additional information, please visit Flotek’s web site at .
Forward-Looking Statements:
This Press Release contains forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934) regarding Flotek Industries, Inc. business, financial condition, results of operations and prospects. Words such as expects, anticipates, intends, plans, believes, seeks, estimates and similar expressions or variations of such words are intended to identify forward-looking statements, but are not the exclusive means of identifying forward-looking statements in this Press Release.
Although forward-looking statements in this Press Release reflect the good faith judgment of management, such statements can only be based on facts and factors currently known to management. Consequently, forward-looking statements are inherently subject to risks and uncertainties, and actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. Factors that could cause or contribute to such differences in results and outcomes include, but are not limited to, demand for oil and natural gas drilling services in the areas and markets in which the Company operates, competition, obsolescence of products and services, the Company’s ability to obtain financing to support its operations, environmental and other casualty risks, and the impact of government regulation. Further information about the risks and uncertainties that may impact the Company are set forth in the Company’s most recent filings on Form 10-K (including without limitation in the “Risk Factors” Section) and Form 10-Q, and in the Company’s other SEC filings and publicly available documents. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this Press Release. The Company undertakes no obligation to revise or update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this Press Release.
Flotek Industries, Inc.

TULSA, Okla., May 1 /PRNewswire-FirstCall/ — Williams announced first-quarter 2008 unaudited net income of $500 million, or 84 cents per share on a diluted basis, compared with net income of $134 million, or 22 cents per share on a diluted basis, for first-quarter 2007.
Quarterly Summary Financial Information

Per share amounts are reported 1Q 2008 1Q 2007
on a fully diluted basis millions per share millions per share

Income from continuing operations $416 $0.70 $170 $0.28
Income (loss) from discontinued
operations 84 0.14 (36) (0.06)
Net income $500 $0.84 $134 $0.22

Recurring income from continuing
operations* $343 $0.57 $166 $0.27
After-tax mark-to-market
adjustments (2) - 23 0.04
Recurring income from continuing
operations - after mark-to-market
adjustments* $341 $0.57 $189 $0.31

* A schedule reconciling income from continuing operations to recurring
income from continuing operations and mark-to-market adjustments
(non-GAAP measures) is available at and as an
attachment to this press release.

Strong performances in the company’s exploration & production, midstream and gas pipeline businesses were the key drivers of the increase in net income for the first quarter. Key factors were higher net realized average natural gas prices and strong natural gas production growth, natural gas liquid (NGL) margins remaining at historically high levels, and higher gas pipeline revenue.
The first-quarter 2008 results also benefited from a $118 million pre-tax gain on the sale of certain international interests and increased income from discontinued operations. Income from discontinued operations in first-quarter 2008 included pre-tax income of $128 million related to the Williams’ former Alaska operations, while first-quarter 2007 primarily reflects the results of the company’s former power business.
Recurring Results Adjusted for Effect of Mark-to-Market Accounting
Williams is continuing its practice of providing an analysis of recurring earnings adjusted to remove the effect on its results of mark-to-market accounting for certain hedges and other derivatives in Gas Marketing Services.
Although not significant for first-quarter 2008, the company expects to have some level of future mark-to-market volatility in Gas Marketing Services from natural gas storage and transportation hedging and legacy contracts from the former power business. However, mark-to-market volatility is expected to be significantly reduced compared with previous levels.
Recurring income from continuing operations after mark-to-market adjustments was $341 million, or 57 cents per share, for first-quarter 2008, compared with $189 million, or 31 cents per share, for first-quarter 2007.
A reconciliation of the company’s income from continuing operations to recurring income from continuing operations and mark-to-market adjustments is available at and as an attachment to this news release.
CEO Perspective
“Williams delivered a strong start to 2008, highlighted by an 84 percent increase in our recurring adjusted earnings per share,” said Steve Malcolm, chairman, president and chief executive officer.
“Quarter after quarter, our operational performance continues to drive impressive financial results. In the first quarter this year, we increased production 27 percent in each of our two largest production areas — the Piceance and Powder River basins. Our focus on quickly and responsibly developing our long-lived natural gas reserves continues to generate value.
“We also have a solid track record of delivering results in an ever-changing commodity price environment. Our capabilities and our portfolio of well-positioned natural gas production, processing and pipeline assets provide abundant opportunities for investment and growth,” Malcolm said.
Business Segment Performance
Consolidated results include segment profit for Williams’ businesses — Exploration & Production, Midstream Gas & Liquids, Gas Pipeline and Gas Marketing Services as well as results reported in the Other segment.
Consolidated Segment Profit (Loss) 1Q
Amounts in millions 2008 2007

Exploration & Production $430 $188
Midstream Gas & Liquids 261 154
Gas Pipeline 180 150
871 492

Gas Marketing Services 21 (30)
Other 1 -
Consolidated Segment Profit $893 $462

Recurring Consolidated Segment Profit
(Loss) After Mark-to-Market Adjustments* 1Q
Amounts in millions 2008 2007

Exploration & Production $312 $188
Midstream Gas & Liquids 261 146
Gas Pipeline 180 150
753 484

Gas Marketing Services 21 (30)
MTM Adjustments for Gas Marketing
Services (3) 38
Other 1 -
Recurring Consolidated Segment Profit
After Mark-to-Market Adjustments $772 $492

* A schedule reconciling income from continuing operations to recurring
income from continuing operations and mark-to-market adjustments
(non-GAAP measures) is available at and as an
attachment to this press release.

For first-quarter 2008, Williams’ businesses reported consolidated segment profit of $893 million, compared with $462 million for first-quarter 2007.
The significant improvements in consolidated segment profit during first-quarter 2008 were reflective of strong operational results in Midstream, Exploration & Production and Gas Pipeline. First-quarter consolidated segment profit also benefited from the previously noted gain on the sale of certain international interests.
On a basis adjusted to remove the effect of nonrecurring items and mark-to-market accounting, Williams’ recurring consolidated segment profit was $772 million in first-quarter 2008, compared with $492 million for the same period in 2007.
Exploration & Production: Robust Production Growth in Piceance, Powder River Basins Drive Record Segment Profit
Exploration & Production includes natural gas production and development in the U.S. Rocky Mountains, San Juan Basin and Mid-Continent, and oil and gas development in South America.
The business reported segment profit of $430 million for first-quarter 2008, compared with first-quarter 2007 segment profit of $188 million.
Higher net realized average prices and strong growth in domestic natural gas production volumes were the primary drivers of the increased segment profit in 2008. The first-quarter results also benefited from the $118 million gain on the sale of certain international interests.
Williams’ average daily domestic production for the quarter surpassed 1 billion cubic feet equivalent (Bcfe) per day for the first time. For first-quarter 2008, average daily domestic production was 1.01 Bcfe per day, an increase of 20 percent over the same period last year.
Increased development within the Piceance, Powder River and Fort Worth basins drove the strong growth in domestic production volumes. In the Piceance Basin of western Colorado — the company’s cornerstone for production and reserves growth — average daily production increased 27 percent for the first quarter.
Quarterly Average Daily Production 1Q
Amounts in million cubic feet 2008 2007 Growth rate
equivalent of natural gas (MMcfe)

Piceance Basin 607 478 27%
Powder River Basin 209 165 27%
Other Basins 197 202 -2%
U.S. Interests only 1,013 845 20%
U.S. & International Interests 1,062 891 19%

Williams also has increased the company’s total proved, probable and possible reserves to an estimated 11.4 trillion cubic feet equivalent (Tcfe) from the previous estimate of 10.8 Tcfe, after producing 0.334 Tcfe in 2007. Total reserves are comprised of primarily domestic interests.
During first-quarter 2008, Williams’ net realized average price for U.S. production was $6.58 per thousand cubic feet of natural gas equivalent (Mcfe), which was 24 percent higher than the $5.32 per Mcfe realized in first-quarter 2007.
The benefits of higher net realized average prices and higher production volumes in first-quarter 2008 were partially offset by increased depreciation, depletion and amortization, higher operating taxes, and higher lease operating expenses.
Williams is increasing Exploration & Production’s segment profit guidance for 2009. The new range for 2009 is $1.1 billion to $1.4 billion, up from previous guidance of $1.025 billion to $1.325 billion. The new range for 2009 reflects higher expected net realized average natural gas prices. Previous Exploration & Production segment profit guidance for 2008 is unchanged.
Midstream Gas & Liquids: NGL Margins Remain Robust, Drive 69% Increase in Segment Profit
Midstream, which provides natural gas gathering and processing, NGL fractionation and storage services and olefins production, reported first-quarter 2008 segment profit of $261 million, an increase of 69 percent over first-quarter 2007 segment profit of $154 million.
Midstream’s growth in segment profit during the first quarter is primarily due to NGL margins remaining at historically high levels, driven by favorable market commodity pricing on NGLs.
Higher margins in Midstream’s olefins business unit were driven by favorable market commodity pricing, and higher volumes also contributed to the growth. The acquisition of an additional interest in the Geismar plant in July 2007 drove the increase in volumes.
Williams markets NGLs via equity volumes the company retains as payment-in-kind under certain processing contracts.
Although Midstream’s total NGL production volumes increased 7 percent during first-quarter 2008, NGL equity volumes sold declined during the quarter. The reason for the decline was a downstream shift in a product delivery location in the West, which resulted in higher in-transit inventory at the end of the quarter. The resulting lower equity volumes in the West drove an overall decline in Midstream’s equity volumes for the quarter.
For first-quarter 2008, Midstream sold 308 million gallons of NGL equity volumes, compared with 345 million gallons during first-quarter 2007. Higher equity volumes in the Gulf of Mexico, due to the company connecting to new supplies in the deepwater, partially offset the lower equity volumes in the West.
Higher operating expenses and the lower NGL equity sales volumes in the West partially offset the benefit of the higher average NGL prices during the first quarter.
Williams is increasing its 2008 segment profit guidance for Midstream. The new range is $775 million to $1.025 billion, compared with the previous range of $700 million to $950 million. The new range reflects higher expected NGL margins for the year. Previous segment profit guidance for 2009 is unchanged.
Gas Pipeline: New Transco Rates, Expansion Projects Drive 20% Increase Segment Profit
Gas Pipeline, which primarily delivers natural gas to markets along the Eastern Seaboard, in Florida and in the Northwest, reported first-quarter 2008 segment profit of $180 million, compared with $150 million for first-quarter 2007, an increase of 20 percent.
Increased revenues from new rates on the Transco system and two expansion projects were the primary drivers of the increased segment profit during the first three months of 2008. Higher operating costs partially offset these benefits.
Williams placed the Leidy to Long Island and Potomac expansions into service during fourth-quarter 2007. Leidy to Long Island increased transportation capacity into the New York City metropolitan area by 100,000 dekatherms per day, while the Potomac expansion increased capacity into the Washington, D.C., and Baltimore, Md., metropolitan areas by 165,000 dekatherms per day.
Transco’s new, higher rates went into effect, subject to refund, on March 1, 2007. On March 7, 2008, the Federal Energy Regulatory Commission granted final approval of the rate case.
Gas Pipeline segment profit guidance for 2008 has been slightly lowered to reflect the development costs of certain potential new projects. The new segment profit guidance for 2008 is $625 million to $675 million, a reduction of $15 million from the previous guidance of $640 million to $690 million. Previous Gas Pipeline segment profit guidance for 2009 is unchanged.
Williams is increasing its capital expenditure guidance for Gas Pipeline for 2009. The new range for 2009 is $400 million to $550 million, up from the previous range of $340 million to $490 million. This increase is due to new expansion projects, principally the 85 North and the Mobile Bay South projects. Previous Gas Pipeline capital expenditure guidance for 2008 is unchanged.
Gas Marketing Services: Supporting Natural Gas Businesses with Marketing, Risk Management
Gas Marketing Services is responsible for supporting Williams’ natural gas businesses by providing marketing and risk management services. These services primarily include marketing and hedging the gas produced by Exploration & Production, and procuring fuel and shrink gas and hedging natural gas liquids for Midstream.
In addition, Gas Marketing manages various natural-gas related contracts, such as transportation, storage, and related hedges, and provides marketing services to third-parties, such as producers. The segment also manages certain legacy natural gas contracts and positions that previously were reported in the former power business.
Gas Marketing reported a first-quarter 2008 segment profit of $21 million, compared with a segment loss of $30 million in first-quarter 2007.
The improvement in first-quarter 2008 was primarily due to a favorable change in mark-to-market gains and losses and improvement in accrual gross margin.
The company continues to liquidate its legacy contracts from the former power business. While some mark-to-market volatility from natural gas storage and transportation hedging is expected, it should be significantly reduced compared with previous levels.
Gas Marketing Recurring Segment Profit
(Loss) Adjusted for Mark-to-Market
Effect* 1Q
Amounts in millions 2008 2007

Segment profit (loss) $21 ($30)
Nonrecurring adjustments - -
Recurring segment profit (loss) 21 (30)
Mark-to-market adjustments - pretax (3) 38
Recurring segment profit after MTM adjustments $18 $8

* A schedule reconciling income from continuing operations to recurring
income from continuing operations and mark-to-market adjustments
(non-GAAP measures) is available at and as an
attachment to this press release.

Segment Profit, EPS Guidance Increased for 2008, 2009

Guidance for consolidated segment profit includes results for Exploration & Production, Midstream and Gas Pipeline, as well as Gas Marketing and the Other segment. All consolidated segment profit and earnings per share ranges are presented on a recurring basis adjusted for the effect of mark-to-market accounting.
For 2008, Williams has increased its consolidated segment profit guidance to a range of $2.5 billion to $3.0 billion and earnings per share of $1.70 to $2.10. The previous ranges were $2.4 billion to $2.9 billion in consolidated segment profit and earnings per share of $1.60 to $2.00. The new range for 2008 reflects the previously referenced increase in Midstream, partially offset by the slight reduction in guidance for Gas Pipeline.
For 2009, Williams is increasing its consolidated segment profit guidance to a range of $2.6 billion to $3.2 billion and earnings per share of $1.80 to $2.30. The previous ranges were $2.5 billion to $3.1 billion in consolidated segment profit and earnings per share of $1.70 to $2.20. The increased segment profit guidance for 2009 reflects the previously referenced increase in Exploration & Production.
Williams is updating its capital expenditure guidance for 2008. The new range, $2.6 billion to $2.95 billion, is due to a carryover from 2007 due to capital spending timing differences. The previous range was $2.575 billion to $2.925 billion.
Williams is increasing previously announced guidance for 2009 capital expenditures. The new range is $2.3 billion to $2.7 billion, compared with the previous range of $2.25 billion to $2.65 billion. The updated capital expenditure guidance reflects the previously referenced increase in Gas Pipeline.
Williams Updates Commodity Price, NGL Margin Outlook
The following provides an update on Williams’ outlook for natural gas and crude oil prices in 2008 and 2009. The company is also now providing guidance on its expected average NGL margins.
For 2008, the company expects unhedged natural gas prices ranging from $7.35 to $8.65 per Mcfe (Henry Hub), adjusted for basis differentials, and crude oil pricing in the range of $70 to $90 per barrel. Also for 2008, the company expects average NGL margins of 42 cents to 53 cents per gallon.
For 2009, the company expects unhedged natural gas prices ranging from $7.35 to $8.65 per Mcfe (Henry Hub), adjusted for basis differentials, and crude oil pricing in the range of $70 to $90 per barrel. Also for 2009, the company expects average NGL margins of 34 cents to 55 cents per gallon.
Stock Repurchase Update
In July 2007, Williams announced that its board of directors authorized the repurchase of up to $1 billion of the company’s common stock. The stock-repurchase program has no expiration date.
Through March 31, 2008, the company has purchased approximately 20 million shares for $652 million under the program at an average cost of $33.24 per share.
Today’s Analyst Call
Management will discuss first-quarter 2008 results during a live webcast beginning at 9:30 a.m. Eastern today. Participants are encouraged to access the webcast at . Slides are available for viewing, downloading and printing.
A limited number of phone lines also will be available at (877) 741-4249. International callers should dial (719) 325-4787. Replays of the first-quarter webcast, in both streaming and downloadable podcast formats, will be available for two weeks at following the event.
Form 10-Q
The company has filed its Form 10-Q with the Securities and Exchange Commission. The document is available on both the SEC and Williams websites.
About Williams
Williams, through its subsidiaries, finds, produces, gathers, processes and transports natural gas. Williams’ operations are concentrated in the Pacific Northwest, Rocky Mountains, Gulf Coast, and Eastern Seaboard. More information is available at http://www.williams.com. Go to http://www.b2i.us/irpass.asp?BzID=630&to=ea&s=0 to join our e-mail list.
Contact: Jeff Pounds
Williams (media relations)
(918) 573-3332

Travis Campbell
Williams (investor relations)
(918) 573-2944

Richard George
Williams (investor relations)
(918) 573-3679

Sharna Reingold
Williams (investor relations)
(918) 573-2078

Williams’ reports, filings, and other public announcements might contain or incorporate by reference statements that do not directly or exclusively relate to historical facts. Such statements are “forward-looking statements” within the meaning of Private Securities Litigation Reform Act of 1995. You typically can identify forward-looking statements by the use of forward-looking words, such as “anticipate,” believe,”"could,”"continue,”"estimate,”"expect,”"forecast,”"may,”"plan,”"potential,”"project,”"schedule,”"will,” and other similar words. These statements are based on our intentions, beliefs, and assumptions about future events and are subject to risks, uncertainties, and other factors. Actual results could differ materially from those contemplated by the forward-looking statements. In addition to any assumptions and other factors referred to specifically in connection with such statements, other factors could cause our actual results to differ materially from the results expressed or implied in any forward-looking statements. Those factors include, among others: changes in general economic conditions and changes in the industries in which Williams conducts business; changes in federal or state laws and regulations to which Williams is subject, including tax, environmental and employment laws and regulations; the cost and outcomes of legal and administrative claims proceedings, investigations, or inquiries; the results of financing efforts, including our ability to obtain financing on favorable terms, which can be affected by various factors, including our credit ratings and general economic conditions; the level of creditworthiness of counterparties to our transactions; the amount of collateral required to be posted from time to time in our transactions; the effect of changes in accounting policies; the ability to control costs; the ability of each business unit to successfully implement key systems, such as order entry systems and service delivery systems; the impact of future federal and state regulations of business activities, including allowed rates of return, the pace of deregulation in retail natural gas market, and the resolution of other regulatory matters; changes in environmental and other laws and regulations to which Williams and its subsidiaries are subject or other external factors over which we have no control; changes in foreign economies, currencies, laws and regulations, and political climates, especially in Canada, Argentina, Brazil, and Venezuela, where Williams has direct investments; the timing and extent of changes in commodity prices, interest rates, and foreign currency exchange rates; the weather and other natural phenomena; the ability of Williams to develop or access expanded markets and product offerings as well as their ability to maintain existing markets; the ability of Williams and its subsidiaries to obtain governmental and regulatory approval of various expansion projects; future utilization of pipeline capacity, which can depend on energy prices, competition from other pipelines and alternative fuels, the general level of natural gas and petroleum product demand, decisions by customers not to renew expiring natural gas transportation contracts; the accuracy of estimated hydrocarbon reserves and seismic data; and global and domestic economic repercussions from terrorist activities and the government’s response to such terrorist activities. In light of these risks, uncertainties, and assumptions, the events described in the forward-looking statements might not occur or might occur to a different extent or at a different time that we have described. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
In regard to the company’s reserves in Exploration & Production, the SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves. We have used certain terms in this news release, such as “probable” reserves and “possible” reserves and “new opportunities potential” reserves that the SEC’s guidelines strictly prohibit us from including in filings with the SEC. The SEC defines proved reserves as estimated quantities that geological and engineering data demonstrate with reasonable certainty to be recoverable in the future from known reservoirs under the assumed economic conditions. Probable and possible reserves are estimates of potential reserves that are made using accepted geological and engineering analytical techniques, but which are estimated with reduced levels of certainty than for proved reserves. Possible reserve estimates are less certain than those for probable reserves. New opportunities potential is an estimate of reserves for new areas for which we do not have sufficient information to date to raise the reserves to either the probable category or the possible category. New opportunities potential estimates are even less certain that those for possible reserves.
Reference to “total resource portfolio” include proved, probable and possible reserves as well as new opportunities potential.
Investors are urged to closely consider the disclosures and risk factors in our annual report on Form 10-K filed with the Securities and Exchange Commission on Feb. 26, 2008, and our quarterly reports on Form 10-Q available from our offices or from our website at http://www.williams.com.
Reconciliation of Income from Continuing Operations to Recurring Earnings
(UNAUDITED)

2007 2008
(Dollars in
millions, except
per-share amounts) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr

Income from
continuing
operations
available to
common
stockholders $170 $243 $228 $206 $847 $416

Income from
continuing
operations -
diluted earnings
per common share $0.28 $0.40 $0.38 $0.34 $1.40 $0.70

Nonrecurring items:

Exploration &
Production
Accrual for
royalty
litigation
contingency $- $- $- $4 $4 $-
Gain on sale of
Peru interests - - - - - (118)

Total Exploration
& Production
nonrecurring
items - - - 4 4 (118)

Gas Pipeline
Change in
estimate related
to a regulatory
liability - NWP - (17) - - (17) -
Payments received
for terminated
firm
transportation
agreement - NWP - (6) (12) - (18) -

Total Gas Pipeline
nonrecurring
items - (23) (12) - (35) -

Midstream Gas &
Liquids
Reversal of a
maintenance
accrual (8) - - - (8) -
Income from a
favorable
litigation
outcome - - - (12) (12) -
Reserve for
international
receivables - - - 9 9 -
Impairment of
Carbonate Trend
pipeline - - - 10 10 -

Total Midstream
Gas & Liquids
nonrecurring
items (8) - - 7 (1) -

Gas Marketing
Services
Accrual for
litigation
contingencies - - - 20 20 -

Total Gas
Marketing
Services
nonrecurring
items - - - 20 20 -

Nonrecurring items
included in
segment profit
(loss) (8) (23) (12) 31 (12) (118)

Nonrecurring items
below segment
profit (loss)
Early debt
retirement costs
(Corporate) - - - 19 19 -
Interest related
to Gulf Liquids
litigation
contingency
(Interest accrued
- Midstream) 1 1 1 - 3 -
Interest income
related to
contract
termination gain
noted above
(Investing
income -
Gas
Pipeline -
NWP) - - (2) - (2) -
Interest related
to royalty
litigation
contingency
noted above
(Interest accrued
- E&P) - - - 1 1 -
Rounding - 1 (1) - - -

1 2 (2) 20 21 -

Total nonrecurring
items (7) (21) (14) 51 9 (118)
Tax effect for
above items (1)(2) (3) 1 (5) 13 6 (45)
Adjustment for
nonrecurring tax-
related items (3) - - - 23 23 -

Recurring income
from continuing
operations
available to
common
stockholders $166 $221 $219 $267 $873 $343

Recurring diluted
earnings per
common share $0.27 $0.36 $0.36 $0.44 $1.44 $0.57

Weighted-average
shares - diluted
(thousands) 611,470 613,172 610,651 604,243 609,866 598,627

(1) The tax rate applied to nonrecurring items for 2nd quarter 2007 has
been adjusted to reverse the effect of certain previous adjustments
for nondeductible expenses associated with securities litigation and
related costs, as these expenses are now considered deductible based
on an IRS ruling.

(2) The tax rate applied to nonrecurring items 4th quarter 2007 has been
adjusted to reverse the effect of early debt retirement costs
considered deductible in 2004 as these expenses are now considered
nondeductible.

(3) The 4th quarter of 2007 includes an adjustment for an income tax
contingency.

Note: The sum of earnings per share for the quarters may not equal the
total earnings per share for the year due to changes in the
weighted-average number of common shares outstanding.

The sum of amounts for the quarters may not equal the totals
for the year due to rounding.

Adjustment to remove MTM effect
Dollars in millions except for per share amounts First Quarter
2008 2007

Recurring income from cont. ops available
to common shareholders $343 $166
Recurring diluted earnings per common share $0.57 $0.27

Mark-to-Market (MTM) adjustments:
Reverse forward unrealized MTM losses 264 40
Add realized (losses) from MTM previously
recognized (267) (2)
Total MTM adjustments (3) 38

Tax effect of total MTM adjustments 1 (15)

After tax MTM adjustments (2) 23

Recurring income from cont. ops available
to common shareholders after MTM adjust. $341 $189
Recurring diluted earnings per share after MTM adj. $0.57 $0.31

weighted average shares - diluted (thousands) 598,627 611,470

Adjustments have been made to reverse estimated forward unrealized MTM
gains/losses and add estimated realized gains/losses from MTM previously
recognized, i.e. assumes MTM accounting had never been applied to
designated hedges and other derivatives.

Williams

TULSA, Okla., May 1 /PRNewswire-FirstCall/ — Williams Partners L.P. today announced unaudited first-quarter 2008 net income of $43.6 million, compared with first-quarter 2007 net income of $25.1 million.
Williams Partners’ net income per limited-partner unit for first-quarter 2008 was 66 cents, compared with 31 cents per limited-partner unit for first-quarter 2007. Increased equity earnings from the partnership’s Wamsutter and Discovery investments and higher natural gas liquid margins at Four Corners were the key drivers of the improved earnings per unit in first-quarter 2008.
Also, because the partnership’s 2007 acquisitions of an additional 20 percent of Discovery and a membership interest in Wamsutter closed later in the year, their first-quarter 2007 net income was allocated to the general partner as pre-partnership income. As a result, a higher portion of the partnership’s total net income was allocated to the limited partners in first-quarter 2008, compared with first-quarter 2007.
Lower gathering and processing volumes and higher operating and maintenance expenses at Four Corners, and higher interest expense due to the Wamsutter acquisition partially offset these benefits.
First-quarter 2007 results throughout this release have been recast to reflect the Wamsutter and Discovery acquisitions.
In first-quarter 2008, the key measure of distributable cash flow per weighted-average limited partner unit was 74 cents, compared with 51 cents for first-quarter 2007 — an increase of 45 percent. Total distributable cash flow in first-quarter 2008 for limited-partner unitholders was $38.8 million, compared with $20 million for first-quarter 2007.
The significant increase in distributable cash flow during first-quarter 2008 is due to the partnership receiving its first cash distribution associated with the Wamsutter investment, as well as a record-high distribution associated with its Discovery investment.
Business Segment Performance
Business segment performance includes results for the partnership’s three business segments: Gathering and Processing — West, which includes Four Corners and the Wamsutter investment; Gathering and Processing — Gulf, which includes the Discovery investment; and NGL Services, which includes the Conway fractionation and storage complex.
Consolidated Segment Profit 1Q
Amounts in thousands 2008 2007

Gathering and Processing - West $50,405 $42,604
Gathering and Processing - Gulf 13,511 3,638
NGL Services 5,541 53

Consolidated Segment Profit $69,457 $46,295

Recurring Consolidated Segment Profit*
Amounts in thousands

Gathering and Processing - West $47,340 $42,885
Gathering and Processing - Gulf 13,511 3,638
NGL Services 5,541 1,490

Recurring Consolidated Segment Profit* $66,392 $48,013

* A schedule reconciling segment profit to recurring segment profit is
attached to this press release.

Williams Partners’ consolidated recurring segment profit for first-quarter 2008 was $66.4 million, compared with $48 million for first-quarter 2007.
Recurring segment profit for Gathering and Processing — West was $47.3 million in first-quarter 2008, compared with $42.9 million in first-quarter 2007. Higher NGL margins at Four Corners and the Wamsutter investment were the primary drivers of the quarterly improvement.
Lower gathering and processing volumes at Four Corners, due to severe winter weather and the shutdown of the Ignacio gas processing plant following the Nov. 28, 2007, fire, partially offset these benefits. The Ignacio plant returned to service on Jan. 18. Also, both Wamsutter and Four Corners experienced higher net product imbalance losses during the first quarter of 2008. Gains and losses from product imbalances are an unpredictable component of operating costs.
Recurring segment profit for the Gathering and Processing — Gulf segment was $13.5 million in first-quarter 2008, compared with $3.6 million in first-quarter 2007. Higher equity earnings from the partnership’s Discovery interest were the primary source of the improvement. Discovery’s results increased due to higher gross processing margins and higher gathered volumes in the first quarter.
NGL Services reported recurring segment profit of $5.5 million for first-quarter 2008, compared with $1.5 million for first-quarter 2007. Higher fractionation and storage revenues and lower operating costs drove the increase in segment profit.
Reconciliations of the partnership’s distributable cash flow for limited-partner unitholders to net income, as well as recurring segment profit to segment profit, are available on Williams Partners’ web site at and as an attachment to this document.
Chief Operating Officer Perspective
“The partnership performed extremely well during the first quarter, highlighted by a 45-percent increase in our distributable cash flow per unit,” said Alan Armstrong, chief operating officer of the general partner of Williams Partners. “We’re now seeing the benefit of our 2007 acquisitions — Wamsutter and the additional interest in Discovery, both of which contributed significant cash flow to the partnership in the first quarter.
“Operationally, our Conway and Discovery businesses performed extremely well, and both Four Corners and Wamsutter posted terrific financial performances despite long periods of severe winter weather that halted our customers’ production in those areas. We are glad to see that production flows have returned to normal after the very difficult winter,” Armstrong said.
Increase in Cash Distribution to Unitholders
Subsequent to the close of the first quarter, the board of directors of the general partner of Williams Partners increased the quarterly cash distribution payable to unitholders to 60 cents from 57.5 cents. This was the ninth 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 Wamsutter and 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 cash-distribution provisions of our partnership agreement. The resulting distributable cash flow attributable to partnership operations and to its limited partners is then divided by the weighted average limited partner-units outstanding to arrive at distributable cash flow per limited-partner unit.
Williams Partners defines distributable cash flow as net income plus depreciation, amortization and accretion, and the amortization of a natural gas purchase contract, less its equity earnings in Wamsutter and Discovery, as well as adjustments for certain non-cash, non-recurring items, plus reimbursements from Williams under an omnibus agreement and less maintenance capital expenditures.
Williams Partners defines recurring segment profit as segment profit excluding items of income or loss that it characterizes as unrepresentative of its ongoing operations. Schedules presenting Williams Partners’ consolidated statements of income, segment profit and operating information are available on Williams Partners’ web site at and as an attachment to this document.
Today’s Analyst Call
Williams Partners’ management will discuss the partnership’s first-quarter 2008 financial results during an analyst presentation to be webcast live beginning at 11 a.m. Eastern today.
Participants are encouraged to access Williams Partners’ webcast at . Slides will be available for viewing, downloading and printing.
A limited number of phone lines also will be available for the partnership’s webcast at (877) 857-6177. International callers should dial (719) 325-4816. Replays of the first-quarter webcast, in both streaming and downloadable podcast formats, will be available for two weeks at following the event.
Form 10-Q
The partnership has filed its Form 10-Q with the Securities and Exchange Commission. The document is available on both the SEC and Williams Partners web sites.
About Williams Partners L.P.
Williams Partners L.P. is a publicly traded master limited partnership that owns natural gas gathering, transportation, processing and treating assets serving regions where producers require large scale and highly reliable services, including the Gulf of Mexico, the San Juan Basin in New Mexico and Colorado, and the Washakie Basin in Wyoming. The partnership also serves the natural gas liquids (NGL) market through its NGL fractionating and storage assets. The general partner is Williams Partners GP LLC. More information about the partnership is available at http://www.williamslp.com. Go to http://www.b2i.us/irpass.asp?BzID=1296&to=ea&s=0 to join our e-mail list.
Contact: Jeff Pounds
Williams (media relations)
(918) 573-3332

Sharna Reingold
Williams (investor relations)
(918) 573-2078

Williams Partners’ reports, filings and other public announcements might contain or incorporate by reference forward-looking statements — statements that do not directly or exclusively relate to historical facts. You typically can identify forward-looking statements by the use of forward-looking words, such as “anticipate,” believe,”"could,”"continue,”"estimate,”"expect,”"forecast,”"may,”"plan,”"potential,”"project,”"schedule,”"will” and other similar words. These statements are based on our intentions, beliefs and assumptions about future events and are subject to risks, uncertainties and other factors. Actual results could differ materially from those contemplated by the forward-looking statements. In addition to any assumptions, risks, uncertainties and other factors referred to specifically in connection with such statements, other factors could cause our actual results to differ materially from the results expressed or implied in any forward-looking statements. Those risks, uncertainties and factors include, among others: Williams Partners may not have sufficient cash from operations to enable it to pay the minimum distribution following establishment of cash reserves and payment of fees and expenses, including payments to our general partner; because of the natural decline in production from existing wells and competitive factors, the success of Williams Partners’ gathering and transportation businesses depends on its ability to connect new sources of natural gas supply, which is dependent on factors beyond its control; any decrease in supplies of natural gas could adversely affect Williams Partners’ business and operating results; lower natural gas and oil prices could adversely affect Williams Partners’ fractionation and storage businesses; Williams Partners’ processing, fractionation and storage businesses could be affected by any decrease in natural gas liquids (NGL) prices or a change in NGL prices relative to the price of natural gas; Williams Partners depends on certain key customers and producers for a significant portion of its revenues and supply of natural gas and NGLs and the loss of any of these key customers or producers could result in a decline in its revenues and cash available to pay distributions; if third-party pipelines and other facilities interconnected to Williams Partners’ pipelines and facilities become unavailable to transport natural gas and NGLs or to treat natural gas, Williams Partners’ revenues and cash available to pay distributions could be adversely affected; Williams Partners does not own all of the interests in Wamsutter LLC (Wamsutter), the Conway fractionator or Discovery Producer Services LLC (Discovery), which could adversely affect Williams Partners’ ability to operate and control these assets in a manner beneficial to it; Williams Partners’ results of storage and fractionation operations are dependent upon the demand for propane and other NGLs and a substantial decrease in this demand could adversely affect Williams Partners’ business and operation results; Discovery and Wamsutter may reduce their cash distributions to Williams Partners in some situations; Discovery’s interstate tariff rates and terms and conditions are subject to review and possible adjustment by federal regulators and are subject to changes in policy by federal regulators, which could have a material adverse effect on Williams Partner’s business and operating results; Williams Partners’ operations are subject to operational hazards and unforeseen interruptions for which it may not be adequately insured; Williams Partners does not operate all of its assets and its reliance on others to operate its assets and to provide other services could adversely affect Williams Partners’ business and operating results. Williams Partners’ partnership agreement limits its general partner’s fiduciary duties to unitholders and restricts the remedies available to unitholders for actions taken by its general partner that might otherwise constitute breaches of fiduciary duty; The Williams Companies, Inc.’s (Williams) public indentures and Williams Partners’ credit facility contain financial and operating restrictions that may limit its access to credit; in addition, Williams Partners’ ability to obtain credit in the future will be affected by Williams’ credit ratings; Williams Partners’ future financial and operating flexibility may be adversely affected by restrictions in Williams Partners’ debt agreements and by its leverage; Williams Partners has a holding company structure in which its subsidiaries conduct its operations and own its operating assets, which may affect Williams Partners’ ability to make payments on its debt obligations and distributions on its common units; common units held by Williams eligible for future sale may have adverse effects on the price of Williams Partners’ common units; Williams controls Williams Partners’ general partner, which has sole responsibility for conducting Williams Partners’ business and managing its operations; Williams Partners’ general partner and its affiliates have conflicts of interests with Williams Partners and limited fiduciary duties, and they may favor their own interests to the detriment of Williams Partners’ unitholders; even if unitholders are dissatisfied, they currently have little ability to remove Williams Partners’ general partner without its consent. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than we have described. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Investors are urged to closely consider the disclosures and risk factors in Williams Partners’ reports on Forms 10-K and 10-Q filed with the Securities and Exchange Commission available from Williams Partners’ offices or from Williams Partners’ website at http://www.williamslp.com.
Reconciliation of Non-GAAP Measures
(UNAUDITED)

This press release includes certain financial measures, Recurring Segment Profit, Distributable Cash Flow and Distributable Cash Flow per Limited Partner Unit that are non-GAAP financial measures as defined under the rules of the Securities and Exchange Commission.
For Williams Partners L.P., Recurring Segment Profit excludes items of income or loss that we characterize as unrepresentative of our ongoing operations. Management believes Recurring Segment Profit provides investors meaningful insight into Williams Partners L.P.’s results from ongoing operations.
For Williams Partners L.P. we define Distributable Cash Flow as net income (loss) plus depreciation, amortization and accretion, and the amortization of a natural gas purchase contract, less our earnings from equity investments, as well as adjustments for certain non-cash, non-recurring items, plus reimbursements from Williams under an omnibus agreement and less maintenance capital expenditures. For our equity investments, Wamsutter and Discovery, we define Distributable Cash Flow as net income (loss) plus depreciation, amortization and accretion and less maintenance capital expenditures. We also adjust for certain non-cash, non-recurring items. Our equity share of Wamsutter’s Distributable Cash Flow is based on the distribution provisions of the Wamsutter LLC Agreement. Our equity share of Discovery’s Distributable Cash Flow is 60%.
For Williams Partners L.P. we define Distributable Cash Flow per Limited Partner Unit as Distributable Cash Flow, as defined in the preceding paragraph, attributable to partnership operations plus the actual cash distributed by Wamsutter and Discovery. The total Distributable Cash Flow attributable to partnership operations is then allocated between the general partner and the limited partners in accordance with the cash distribution provisions of our partnership agreement. The resulting Distributable Cash Flow attributable to partnership operations and to its limited partners is then divided by the weighted average limited partner units outstanding to arrive at Distributable Cash Flow per Limited Partner Unit.
This press release is accompanied by a reconciliation of these non-GAAP financial measures to their nearest GAAP financial measures. Management uses these financial measures because they are accepted financial indicators used by investors to compare company performance. In addition, management believes that these measures provide investors an enhanced perspective of the operating performance of the Partnership’s assets and the cash that the business is generating. Neither Recurring Segment Profit nor Distributable Cash Flow are intended to represent cash flows for the period, nor are they presented as an alternative to net income (loss) or cash flow from operations. Distributable Cash Flow per Limited Partner is not presented as an alternative to net income per unit. They should not be considered in isolation or as substitutes for a measure of performance prepared in accordance with United States generally accepted accounting principles.
2007* 2008
(Thousands, except per-unit amounts) 1st Qtr 1st Qtr

Williams Partners L.P.
Reconciliation of Non-GAAP “Recurring Segment
Profit” to GAAP “Segment Profit”

Gathering and Processing - West $42,604 $50,405
Gathering and Processing - Gulf 3,638 13,511
NGL Services 53 5,541

Segment Profit 46,295 69,457
Non-recurring Items:
Gathering and Processing - West
Wamsutter customer contract adjustment
included in equity earnings - (3,065)
2005-2006 retroactive charges for customer
contract (848) -
Adjust right-of-way prepaid expense 1,243 -
Adjust 2006 incentive compensation accrual (899) -
Adjust asset retirement obligation 785 -
NGL Services
Product imbalance valuation adjustment 1,437 -
Recurring Segment Profit $48,013 $66,392

* Because Wamsutter and the additional 20% interest in Discovery were
affiliates of Williams at the time of these acquisitions, the
transactions were between entities under common control, and have been
accounted for at historical cost. Accordingly, these tables have been
recast to reflect the historical results of Wamsutter and Equity
Earnings in Discovery throughout the periods presented.

2007* 2008
(Thousands, except per-unit amounts) 1st Qtr 1st Qtr

Williams Partners L.P.
Reconciliation of Non-GAAP “Distributable Cash
Flow per Limited Partner Unit “GAAP “Net income”

Net income $25,137 $43,629
Depreciation, amortization and accretion 13,178 1,226
Amortization of natural gas purchase contract 1,188 -
Non-cash amortization of debt issuance costs
included in interest expense 404 489
Equity earnings (15,259) (34,815)
Reimbursements from Williams under omnibus
agreement 842 771
Maintenance capital expenditures(a) (7,621) (8,534)

Distributable Cash Flow Excluding Equity
Investments $17,869 $12,766

Plus: Wamsutter cash distributions
to Williams Partners L.P. - 22,704
Plus: Discovery’s cash
distributions to Williams Partners L.P. 3,600 16,800

Distributable cash flow attributable to
partnership operations 21,469 52,270

Distributable Cash Flow attributable to
partnership operations allocable to general
partner 1,487 13,431
Distributable Cash Flow attributable to limited
partnership operations allocable to limited
partners $19,982 $38,839

Weighted average number of units
outstanding: 39,358,798 52,774,728

Distributable Cash Flow
attributable to partnership operations per
limited partner unit: $0.51 $0.74

(a) Maintenance capital expenditures includes certain well connection
capital.

Wamsutter
Reconciliation of Non-GAAP “Distributable
Cash Flow” to GAAP “Net income”

Net income $11,328 $21,194
Depreciation, amortization and accretion 4,258 5,228
Maintenance capital expenditures (4,535) (3,245)

Distributable Cash Flow - 100% $11,051 $23,177

Discovery Producer Services
Reconciliation of Non-GAAP “Distributable
Cash Flow” to GAAP “Net income”

Net income $6,551 $22,701
Depreciation, amortization and accretion 6,483 6,983
Maintenance capital expenditures (429) (187)

Distributable Cash Flow - 100% $12,605 $29,497

Distributable Cash Flow - our 60% interest $7,563 $17,698

* Because Wamsutter and the additional 20% interest in Discovery were
affiliates of Williams at the time of these acquisitions, the
transactions were between entities under common control, and have been
accounted for at historical cost. Accordingly, these tables have been
recast to reflect the historical results of Wamsutter and Equity
Earnings in Discovery throughout the periods presented.

Consolidated Statements of Income
(UNAUDITED)

2007* 2008
(Thousands, except per-unit amounts) 1st Qtr 1st Qtr

Revenues:
Product sales:
Affiliate $56,552 $78,122
Third-party 6,313 4,221
Gathering and processing:
Affiliate 9,491 8,790
Third-party 51,103 46,210
Storage 6,410 7,333
Fractionation 1,917 3,292
Other 2,029 2,394

Total revenues 133,815 150,362

Cost and expenses:
Product cost and shrink replacement:
Affiliate 21,725 22,033
Third-party 20,470 30,065
Operating and maintenance expense:
Affiliate 14,328 23,133
Third-party 28,185 23,951
Depreciation, amortization and accretion 13,178 11,226
General and administrative expense:
Affiliate 9,406 9,876
Third-party 664 928
Taxes other than income 2,114 2,505
Other 460 333

Total costs and expenses 110,530 124,050

Operating income 23,285 26,312

Equity earnings - Wamsutter 11,328 21,194
Equity earnings - Discovery 3,931 13,621
Interest expense:
Affiliate (15) (25)
Third-party (14,375) (17,711)
Interest income 983 238

Net income $25,137 $43,629

Allocation of net income*
Net income $25,137 $43,629
Allocation of net income to general partner 12,912 8,911
Allocation of net income to limited partners 12,225 34,718

Net income, per common and subordinated unit $0.31 $0.66
Weighted average number of units
outstanding 39,358,798 52,774,728

* Because Wamsutter and the additional 20% interest in Discovery were
affiliates of Williams at the time of these acquisitions, the
transactions were between entities under common control, and have been
accounted for at historical cost. Accordingly, these tables have been
recast to reflect the historical results of Wamsutter and Equity
Earnings in Discovery throughout the periods presented. Net income
applicable to periods before the acquisitions of these businesses is
fully allocated to our general partner, which results in no impact to
net income per limited partner unit.

Segment Profit & Operating Statistics
(UNAUDITED)

2007* 2008
(Thousands) 1st Qtr 1st Qtr

Gathering and Processing - West
Segment revenues $120,428 $132,333
Product cost and shrink replacement 39,675 47,446
Operating and maintenance expense 33,097 40,893
Depreciation, amortization and accretion 12,175 10,299
Direct general and administrative expenses 1,821 1,930
Other, net 2,384 2,554

Segment operating income 31,276 29,211
Equity earnings 11,328 21,194

Segment profit $42,604 $50,405

Gathering and Processing - Gulf
Segment revenues $561 $567
Operating and maintenance expense 550 524
Depreciation and accretion 304 153
Direct general and administrative expenses - -
Other, net - -

Segment operating loss (293) (110)
Equity earnings 3,931 13,621

Segment profit $3,638 $13,511

NGL Services
Segment revenues $12,826 $17,462
Product cost 2,520 4,652
Operating and maintenance expense 8,866 5,667
Depreciation and accretion 699 774
Direct general and administrative expenses 498 544
Other, net 190 284

Segment profit $53 $5,541

* Because Wamsutter and the additional 20% interest in Discovery were
affiliates of Williams at the time of these acquisitions, the
transactions were between entities under common control, and have been
accounted for at historical cost. Accordingly, these tables have been
recast to reflect the historical results of Wamsutter and Equity
Earnings in Discovery throughout the periods presented.

Williams Partners:
Conway storage revenues $6,410 $7,333
Conway fractionation volumes (bpd) - our 50% 31,316 33,103
Carbonate Trend gathering volumes (BBtu/d) 25 24
Williams Four Corners:
Gathering volumes (BBtu/d) 1,453 1,316
Fee-based processing volumes (BBtu/d) 866 796
NGL equity sales (million gallons) 46 36
NGL margin ($/gallon) $0.41 $0.74
NGL production (million gallons) 140 112
Wamsutter - 100%:
Gathering volumes (BBtu/d) 510 434
Fee-based processing volumes (BBtu/d) 302 252
NGL equity sales (million gallons) 28 41
NGL margin ($/gallon) $0.27 $0.58
NGL production (million gallons) 101 106
Discovery Producer Services - 100%
Plant inlet volumes (BBtu/d) 548 627
Gross processing margin ($/MMBtu) $0.23 $0.45
NGL equity sales (million gallons) 18 37
NGL production (million gallons) 56 70

Williams Partners L.P.

JERSEY CITY, N.J., May 2 /PRNewswire/ — Axon Americas, the leading dedicated SAP business Transformation consultancy, announces that it has acquired EnterSys Group L.P., a leading provider of SAP consulting services to the oil, gas & chemical sectors.
Texas-based EnterSys Group has a proven track record in the delivery of complex SAP solutions for clients across the oil & gas value chain. With deep industry knowledge and experience around SAP’s Oil & Gas Industry Solution (SAP IS-Oil), the EnterSys Group represents an excellent addition both in terms of culture and capability to Axon Americas.
Steve Cardell, Chief Executive of Axon Global, said:
“Axon is already the largest dedicated SAP consultancy in the world. We have driven significant growth in the Americas by leveraging our deep expertise in industries such as Aerospace & Defense, Utilities, Transportation and Public Sector. The acquisition of EnterSys Group is consistent with Axon’s strategic growth goals and further extends our leadership position with expansion into the Energy sector.”
Steve Peck, President & CEO of Axon Americas, added:
“I am excited about the significant opportunities enabled by the addition of strategic acquisition to our existing global Oil & Gas practice. An immediate priority will be to enhance customer value creation by integrating Axon’s market leading Enterprise Asset Management (EAM) capabilities with EnterSys Group’s Oil Field Services tools and solutions as well as giving EnterSys Group clients access to Axon’s world-class off shore development center. I am delighted to welcome the partners and employees of EnterSys Group to Axon Americas.”
Kevin Graybill, Partner of EnterSys Group said:
“The acquisition by Axon represents a fantastic opportunity for all of us at EnterSys Group to extend our ability to better serve our existing and future clients. We will be able to compete for larger enterprise deals at the major clients in our industry as well as targeting global opportunities. Axon’s dedicated focus on SAP, the quality of their delivery track record, the completeness of their SAP value proposition, and the opportunities for our people were critical to making this acquisition happen.”
About AXON
Axon () is a business Transformation consultancy that delivers significant business value to large, complex organizations through the innovative implementation of SAP technologies. Axon has over 2,000 experienced professionals specializing in the delivery of sustained business improvement through technology enabled transformation programs. Axon’s consultants bring in-depth industry expertise alongside best practice functional knowledge to address the strategic, operational, information management and organizational effectiveness challenges faced by organizations today. Axon is renowned for its ability to help clients define more ambitious strategies, build more effective organizations and shape more successful futures.
Founded in 1994, today Axon has offices in the United States, United Kingdom, Canada, Malaysia, Singapore, China, India and Australia.
Axon Solutions, Inc.

HOUSTON, May 19 /PRNewswire-FirstCall/ — Harvest Natural Resources, Inc. today announced that G. Michael Morgan has been elected as Vice President, business Development effective immediately. Mr. Morgan has served in several capacities at Sempra Energy since 2000 including Corporate Vice President - International, Vice President - Special Projects and President and General Manager - South America Operations.
Before joining Sempra, Mr. Morgan was Vice President Latin America New Ventures for Unocal Corporation and held various international and domestic positions at Enron Corporation, Tenneco Corporation, Shell International and Gulf Oil.
Harvest President and Chief Executive Officer, James A. Edmiston, said, “Mike brings extensive international business development, operations and leadership experience to Harvest. Mike will help us continue execution of our strategy of adding exploration and exploitation projects in proven hydrocarbon systems that are technically driven with substantial resource potential.”
Mr. Morgan holds a Bachelor of Science degree in geology from the University of Texas. He has served as a director on the board of several energy companies based in Latin America.
Harvest Natural Resources
Harvest Natural Resources, Inc. headquartered in Houston, Texas, is an independent energy company with principal operations in Venezuela, exploration assets in the United States, Indonesia, Gabon and China, and business