Williams Partners Cuts 2016 Capex by About $1 bln
Pipeline operator Williams Partners LP , a master limited partnership of Williams Companies Inc , cut its 2016 capital budget by about $1 billion, or by almost a third, to $2 billion.
The company said the spending plan reduction was due to delays and cancellations in its projects on the back of the current commodity price environment as well as sharply higher costs of raising capital.
Oil prices remain near 12-year lows as global supply continues to outstrip demand.
"We continue to execute on critical demand-driven infrastructure projects that serve the long-term natural gas needs of local distribution companies, electric power generation, LNG and industrial sources," said Alan Armstrong, chief executive officer of Williams Partners LP.
The Oklahoma-based company's shares was up 7.1 percent at $21 in morning trade on the New York Stock Exchange.
(Reporting by Manish Parashar in Bengaluru)
