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JEFFERIES COMPANY INC 2012 GLOBAL ENERGY CONFERENCE – Williams Companies, Inc.

Williams Companies, Inc. · Nov 29, 2012 · 28 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 COMPANY INC 2012 GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 1
    Jefferies Global Energy Conference 2012 Alan Armstrong, Chief Executive Officer November 29, 2012 2012 The Williams Companies, Inc. All rights reserved.
  2. JEFFERIES COMPANY INC 2012 GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 2
    Natural gas infrastructure supercycle Long-term, low natural-gas-to-crude ratio driving infrastructure supercycle Vast need for new infrastructure and large-scale service providers like Williams Power Industry Generation…
  3. JEFFERIES COMPANY INC 2012 GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 3
    Diverse, large-scale positions drive high-value business Northwest Rocky Mountain Marcellus Shale Pipeline Utica Shale Piceance Basin NGL Services Infrastructure Petchem Transco San Juan Basin Services Deepwater…
  4. JEFFERIES COMPANY INC 2012 GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 4
    In guidance projects bringing large- scale infrastructure to the Marcellus Marcellus Shale Overview Ohio Valley Midstream 2015* 1.1 Bcf/d processing capacity 100 MBPD fractionation/deethanization Susquehanna Supply Hub 2015* 3…
  5. JEFFERIES COMPANY INC 2012 GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 5
    Building scale in the Marcellus through strategic investments Expected gathering volume growth and upside capacity Focusing on capacity build- outs where the producers 5.5 Upside need it most Laurel Mountain Midstream Capacity 5.0…
  6. JEFFERIES COMPANY INC 2012 GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 6
    Geismar dropdown gives WPZ robust MLP cash flow generator Industry-leading IRS Private Letter Geismar Segment Profit, DD&A and Capex Ruling in hand (midpoint of guidance, dollars in millions) 2.36 B price financed primarily 600…
  7. JEFFERIES COMPANY INC 2012 GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 7
    Canadian business signs major new customer NGL / Olefins volume (Mbbl/d) Barrels from expansions and Expected to add new upgraders approximately 15 MBPD (Voyageur, CNRL 200 expansion, other) of NGL/Olefins 180 production (12…
  8. JEFFERIES COMPANY INC 2012 GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 8
    Worlds largest energy companies our customers ramp up Gulf drilling Monthly drilling rig activity in deepwater Gulf of Mexico January 2010 October 2012 50 45 Moratorium 40 imposed 35 Average Rigs 30 Moratorium 25…
  9. JEFFERIES COMPANY INC 2012 GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 9
    Large-scale Gulf Coast projects built for deepwater production levels adding to asset base capacities Gas processing: Fractionation: 1,790 MMcf/d 57,000 Bbls/d Gulfstar Floating Production System Speed-to-market solution for…
  10. JEFFERIES COMPANY INC 2012 GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 10
    New fee-based business focused on optimizing connectivity, market access for petchems and NGL growth Pipeline, NGL supply fractionation, Distribution Consuming/ growth storage infrastructure market areas facilities Delivering on…
  11. JEFFERIES COMPANY INC 2012 GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 11
    Major 201214 projects in guidance & on track; almost all are fee-based revenues Canada (MC&O) Boreal Pipeline in service (2Q) Ethane Recovery mid-year 13 Petchem Services (WPZ and MC&O) CNRL Upgrader processing mid- year 15…
  12. JEFFERIES COMPANY INC 2012 GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 12
    Current large cap ex carry drives strong expected cash flow growth Project Description and Capital Expected Remaining Time to In-Service Date Expenditures* Utica JV Ongoing Laurel Mountain Midstream 6.2 billion of Marcellus/Utica…
  13. JEFFERIES COMPANY INC 2012 GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 13
    Visibility to diversity of growth Growth investment spending by supply and market areas 20122014 20122017 10.712.2 billion 16.8 billion 27.3 billion In guidance In guidance In guidance Under negotiation Under negotiation…
  14. JEFFERIES COMPANY INC 2012 GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 14
    Expect fee-based revenues to increase to 70% of business by 20132014 WMB total gross margin1 2013 Forecast 2014 Forecast Blues = Fee-based 4.4 billion 5.1 billion Greens = Commodity 0% 1% WPZ Gas Pipeline 5% 5% Demand Revenues…
  15. JEFFERIES COMPANY INC 2012 GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 15
    Strong, clear dividend growth and excess cash flow guidance Cash dividends per share growth Illustrative excess cash flow 20102014 CAGR of 37%* available & coverage ratio* (midpoint of guidance) (upside & cushion for risk)…
  16. JEFFERIES COMPANY INC 2012 GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 16
    Premier energy-infrastructure investment Natural gas infrastructure supercycle Large-scale positions, strong competitive advantages Deep, diverse, long-range growth opportunities provide visibility to cash flow beyond…
  17. JEFFERIES COMPANY INC 2012 GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 17
    Appendix 2012 The Williams Companies, Inc. All rights reserved.
  18. JEFFERIES COMPANY INC 2012 GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 18
    Geismar mitigates declining ethane to crude ratio Ethane and Ethylene relationship to crude 100% 90% 80% 70% % of Crude 60% 50% 40% 30% 20% 10% 0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q…
  19. JEFFERIES COMPANY INC 2012 GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 19
    Growing fee-based business supports dividend growth (Midpoint of guidance, dollars in millions) 2011 2012 2013 2014 4,000 Gross margin 3,500 Gross margin 3,000 Gross margin Gross margin1 2,500 Adjusted segment profit2 +…
  20. JEFFERIES COMPANY INC 2012 GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 20
    Price assumptions and financial impacts 2011 2012 Guidance 2013 Guidance 2014 Guidance Actual Low Midpoint High Low Midpoint High Low Midpoint High Crude Oil - WTI 94.01 88.00 93.00 98.00 70.00 85.00 100.00 70.00 85.00 100.00…
  21. JEFFERIES COMPANY INC 2012 GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 21
    Sensitivities to price changes (millions) NG Ethane Propane C4+ Ethylene Propylene + 0.10/MMBtu (1.4) WPZ 1 + 0.01/gallon 0.6 0.4 0.3 0.4 0.2 Balance + 0.10/MMBtu (0.4) of MC&O2 + 0.01/gallon 0.0 0.2 0.1 0.1 2012 + 0.10/MMBtu…
  22. JEFFERIES COMPANY INC 2012 GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 22
    Dividend illustration and coverage calculation (Midpoint of guidance, dollars in millions except per share amounts) Williams positioned to provide shareholders strong dividend increases 2012 2013 2014 Distributions from WPZ1 1,107…
  23. JEFFERIES COMPANY INC 2012 GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 23
    Midstream Canada & Olefins (MC&O) Illustrative cash flow available (Dollars in millions) MC&O positioned to contribute significantly to dividend growth 2012 Guidance 2013 Guidance 2014 Guidance Low Midpoint High Low Midpoint High…
  24. JEFFERIES COMPANY INC 2012 GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 24
    WMB Non-GAAP Reconciliations 2012 The Williams Companies, Inc. All rights reserved.
  25. JEFFERIES COMPANY INC 2012 GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 25
    WMB non-GAAP disclaimer This presentation may include certain financial measures adjusted segment profit, adjusted income from continuing operations (earnings) and adjusted earnings per share that are non-GAAP financial measures as…
  26. JEFFERIES COMPANY INC 2012 GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 26
    WMB Non-GAAP Reconciliations Non-GAAP reconciliation schedule adjusted segment profit (loss) Reconciliation of segment profit (loss) to adjusted segment profit (loss) (unaudited) 2011 2012 (Dollars in millions) 1st Qtr 2nd…
  27. JEFFERIES COMPANY INC 2012 GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 27
    WMB Non-GAAP Reconciliations WMB 2012 schedule of adjustments (Dollars in millions) Segment profit adjustments Williams Partners (WPZ) Acquisition and transition-related costs 23 Loss related to Eminence storage facility…
  28. JEFFERIES COMPANY INC 2012 GLOBAL ENERGY CONFERENCE – Williams Companies, Inc. – slide 28
    WMB Non-GAAP Reconciliations Segment profit guidance Reported to adjusted (Dollars in millions) 2012 Guidance 2013 Guidance 2014 Guidance Low Midpoint High Low Midpoint High Low Midpoint High Reported segment profit:…

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