Williams Cuts CAPEX 33% for 2016

Pipeline giant Williams and its Williams Partners affiliate said Monday Williams Partners’ 2016 capital budget for growth was chopped by $1 billion – 33% — to $2 billion, Kallanish Energy learns.Williams also said it’s maintaining its quarterly dividend at 85 cents a share. Williams Partners’ current yield is now 15%.The sharp cut in 2016 capital and investment expenditures includes project deferrals, delays and cancellations due to current commodity prices and sharply higher costs of capital.“Our strategy remains intact and the underlying fundamentals of our business are strong despite the slower growth rates producers currently face,” said Alan Armstrong, CEO of Williams Partners’ general partner. “Our revised capital plan addresses the realities of our current market environment while continuing to invest in the growing demand side of our business.”The $2 billion growth capital funding needs include $1.3 billion for Transco (pipeline) expansions and other inters
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