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JEFFERIES GLOBAL ENERGY CONFERENCE – Williams Companies, Inc.

Williams Companies, Inc. · Dec 1, 2010 · 38 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. JEFFERIES GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 1
    Jefferies Global Energy Conference Don Chappel Chief Financial Officer December 1, 2010 2010 The Williams Companies, Inc. All rights reserved.
  2. JEFFERIES GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 2
    Oil and gas reserves and resource potential disclaimer The SEC requires oil and gas companies, in filings made with the SEC, to disclose proved reserves, which are those quantities of oil and gas, which, by analysis of geoscience and…
  3. JEFFERIES GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 3
    Highlights WMB acquired over 85,000 acres in Bakken Shale WPZ reached deal to acquire Cabot midstream assets in Susquehanna County, PA Closed sale of Piceance Basin gathering and processing assets to Williams Partners 782 million…
  4. JEFFERIES GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 4
    Commodity-price assumptions are unchanged Henry Hub Rockies 6.50 6.50 6.00 6.00 5.50 5.50 5.00 5.00 4.50 4.50 4.00 4.00 Guidance 3.50 Range 3.50 Midpoint 2010 2011 2012 2010 2011 2012 (white dash) WTI Oil NGL to Crude…
  5. JEFFERIES GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 5
    Steady growth even on expected low nat gas prices Adjusted EPS Adjusted Segment Profit 2.25 3,500 2.00 3,000 1.75 1.50 2,500 1.25 2,000 1.00 0.75 1,500 Guidance 2010 2011 2012 2010 2011 2012 Midpoint Capital…
  6. JEFFERIES GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 6
    Expect 25% growth in adjusted segment profit Adjusted Segment Profit 3,000 2,500 2,000 Other 1,500 E&P WPZ 1,000 500 - 2010 2011 2012 Notes: Based on mid-point of guidance. Adjusted segment profit is a non-GAAP measure.…
  7. JEFFERIES GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 7
    Expect to invest 6B+ in growth 2010-12 Planned capital expenditures detail 4,500 2010 4,000 2011 4,000 2012 4,000 3,500 3,500 3,500 3,000 3,000 3,000 2,500 2,500 2,500 2,000 2,000 2,000 1,500 1,500 1,500 1,000 1,000…
  8. JEFFERIES GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 8
    WPZ Midstream Gas & Liquids WPZ Midstream assets in growth areas Marcellus Shale Basin Wamsutter Area Piceance Basin San Juan Basin Eagle Ford Shale Deepwater Gulf of Mexico 2010 The Williams Companies, Inc.…
  9. JEFFERIES GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 9
    WPZ Midstream Gas & Liquids WPZ Midstream capital-spending outlook Dollars in millions In guidance + under negotiation In guidance + under negotiation In guidance + potential 2010-2014; spending 4,400 5,400 2010-2012; spending…
  10. JEFFERIES GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 10
    Dropping down Piceance gathering assets to WPZ Large-scale asset 150 miles large-diameter pipeline Connects to 3,300+ wells 6 amine treating facilities 160,000 hp compression 1.2 Bcf/d dew-point processing capacity Synergies with…
  11. JEFFERIES GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 11
    WPZ Midstream Gas & Liquids Williams presence in the Marcellus Susquehanna County Expansion 2010 The Williams Companies, Inc. All rights reserved. Jefferies Global Energy Conference / December 1, 2010 / 13
  12. JEFFERIES GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 12
    WPZ Midstream Gas & Liquids Susquehanna County expansion Agreed to purchase Cabots Susquehanna County midstream assets for 150MM The assets include approximately 75 miles of gathering pipelines and two compressor stations…
  13. JEFFERIES GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 13
    WPZ Midstream Gas & Liquids Laurel Mountain Midstream (LMM) WPZ-Midstream has a 51% ownership interest in Area shown LMM Operated by Williams Atlas acreage Pennsylvania 1,000 miles of intrastate gathering lines in Western WPZ…
  14. JEFFERIES GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 14
    WPZ Midstream Gas & Liquids Large projects drive fee-based revenue growth Capital placed in service between 1,000 Incremental Fee Revenue Fee Revenue 3Q09 and 3Q10 = 1.16 B 900 800 350 700 300 in millions in millions…
  15. JEFFERIES GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 15
    WPZ Gas Pipeline 1.3 billion in WPZ Gas Pipeline growth projects Jackson Prairie Phased 07- 12 NE Connector/ Rockaway Lateral Nov. 13 NE Supply Link Nov. 13 Opal Market Link TBD Sundance Trail Keystone Connector* Nov. 10…
  16. JEFFERIES GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 16
    WPZ Gas Pipeline Emerging supplies benefit Transco Projected decline in shallow Gulf of Mexico production is more than offset by shale gas and Marcellus NY LNG imports. By 2020 estimated supply increases for the Zone 6 210 PA…
  17. JEFFERIES GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 17
    Exploration & Production Premier E&P portfolio low-cost, long-lived Powder River 0.4 Tcfe Proved 1.5 Tcfe 3P Green River Basin Bakken Shale 424,005 net acres 237 MMcfe/d Powder River Basin Marcellus Shale Piceance 3.4 Tcfe…
  18. JEFFERIES GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 18
    Bakken Shale acquisition 85,800 net acres - concentrated position with many large contiguous blocks 95% average working interest on leases with 21% average royalty Three 9,000 ft lateral wells per 2 square mile spacing unit per…
  19. JEFFERIES GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 19
    Exploration & Production Williams: Leader in 2009 proved developed F&D 12.00 11.00 10.00 9.00 8.00 7.00 6.00 5.00 Median: 3.63/Mcfe 4.00 3.00 2.07 2.00 1.00 CRZO AREX DPTR PETD BEXP…
  20. JEFFERIES GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 20
    Exploration & Production Williams E&P: Cost-efficiency leader 10.00 E&P Cost Structure 2009 Herolds Peer Group 9.00 Super and Large US E&Ps 8.00 7.00 6.00 /Mcf 5.00 3.50 4.00 3.00 2.00 1.00 0.00…
  21. JEFFERIES GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 21
    Exploration & Production Piceance Valley: Typical well economics Development cost Illustrative economics Drill & Complete 1.43 NYMEX Gas Price (3yr avg market*) 4.88 Reserves (Bcfe) 1.24 Basin Differential -0.29 Drilling &…
  22. JEFFERIES GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 22
    Exploration & Production Highlands: Typical well economics Development cost Illustrative economics Drill & Complete 2.56 NYMEX Gas Price (3yr avg market*) 4.88 Reserves (Bcfe) 1.70 Basin Differential -0.29 Drilling & Completion…
  23. JEFFERIES GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 23
    Exploration & Production Price impact on typical well IRRs Typical well returns (After-tax) 4.88 (10/13/10) 80.0% Piceance Valley 70.0% Powder River Piceance Highlands 60.0% Internal Rate of Return San Juan Mesaverde…
  24. JEFFERIES GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 24
    Other Canadian Midstream and Domestic Olefins Moving forward with infrastructure: NGL pipeline Low-risk investment Utilizes Williams international cash reserves 283 million total capital; most spending in 2011-2012 261-mile…
  25. JEFFERIES GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 25
    Other Canadian Midstream and Domestic Olefins Plenty of off-gas liquids to recover today and tomorrow Potential liquids: 180 Announced potential new upgraders 160 Expansion of upgraders C2+ NGL / Olefins Volume (Mbbl/d)…
  26. JEFFERIES GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 26
    Corporate Economic commodity exposure for 2010-12 1,400,000 Consolidated Rockies 120,000 NGLs 1,200,000 100,000 1,000,000 80,000 800,000 60,000 Barrels/Day MMBtu/Day 600,000 400,000 40,000 200,000 20,000 0…
  27. JEFFERIES GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 27
    Other Canadian Midstream and Domestic Olefins Midstream domestic net volume position 3Q 10 WPZ Midstream Geismar Olefins 700 172 MBbl/d 600 500 C3+ 400 74 MBbl/d 16 MM Lbs 300 C3= 200 C3+ C2 275 MM Lbs 100 34 C2= C2…
  28. JEFFERIES GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 28
    Financial Outlook Williams growth business mix Segment Profit Adjusted 1 2009 2012 4% 10% 17% 27% 69% 73% Segment % of Segment % of Profit Total Profit Total Williams Partners 1,269 69% Williams Partners 1,820…
  29. JEFFERIES GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 29
    Why Williams is a winning investment Assets Premier assets in growth areas Integrated businesses deliver value and competitive advantage Execution Executing on a wealth of value-creating opportunities in all businesses Proven,…
  30. JEFFERIES GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 30
    2010 The Williams Companies, Inc. All rights reserved.
  31. JEFFERIES GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 31
    WMB Non-GAAP Reconciliations WMB Non-GAAP reconciliation schedule Reconciliation of Income (Loss) from Continuing Operations Attributable to The Williams Companies, Inc. to Adjusted Income (UNAUDITED) 2009 2010 (Dollars in…
  32. JEFFERIES GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 32
    Non-GAAP Non-GAAP reconciliation schedule adjusted segment profit Reconciliation of Segment Profit (Loss) to Adjusted Segment Profit (Loss) (UNAUDITED) 2009 2010 (Dollars in millions) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st…
  33. JEFFERIES GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 33
    Non-GAAP Non-GAAP reconciliation schedule EPS including MTM adjustment Dollars in millions except per share amounts 2010 3Q YTD Adjusted income from cont. ops available to common shareholders 142 520 Adjusted diluted earnings…
  34. JEFFERIES GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 34
    Corporate Adjusted segment profit guidance Dollars in millions 2010 2011 2012 Guidance Guidance Guidance Williams Partners (WPZ) 1,375 - 1,500 1,475 - 1,840 1,575 - 2,065 1,360 - 1,485 1,400 - 1,765 1,500 - 1,990 Exploration…
  35. JEFFERIES GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 35
    Corporate Capital expenditures guidance Dollars in millions 2010 2011 2012 Guidance Guidance Guidance Williams Partners (WPZ) 1,375 - 1,545 1,180 - 1,530 905 - 1,255 (Excluding 2010 Piceance basin gathering and processing…
  36. JEFFERIES GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 36
    Corporate Reconciliation of forecasted Reported income from continuing operations to adjusted income from continuing operations including MTM adjustments Dollars in millions, except per-share amounts 2010 2011 2012 Reported…
  37. JEFFERIES GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 37
    WMB Non-GAAP Reconciliations Segment profit guidance reported to adjusted Dollars in millions 2010 Guidance 2011 Guidance 2012 Guidance Low Midpoint High Low Midpoint High Low Midpoint High Reported segment profit: Williams…
  38. JEFFERIES GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 38
    Corporate Income guidance adjusted 2010 2011 2012 Dollars in millions, except per-share amounts Guidance Guidance Guidance Adjusted segment profit before MTM adjustments 1,900 - 2,125 1,795 - 2,595 1,900 - 3,125 Net interest…

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