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CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc.

Williams Companies, Inc. · Feb 7, 2012 · 54 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. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 1
    Williams Alan Armstrong, Chief Executive Officer Credit Suisse Annual Energy Summit 2012 February 7, 2012 2012 The Williams Companies, Inc. All rights reserved.
  2. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 2
    New Williams energy infrastructure rapidly growing, well-positioned 2012 The Williams Companies, Inc. All rights reserved. Credit Suisse Energy Summit / February 7, 2012 / 4
  3. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 3
    Market fundamentals drive New Williams growth strategy 2012 The Williams Companies, Inc. All rights reserved. Credit Suisse Energy Summit / February 7, 2012 / 5
  4. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 4
    Market perspective NGL-to-crude Ratio will strengthen in the second half of 2012 Lower first half 2012 ethane demand due to several scheduled cracker outages Crackers are expanding their ethane consuming capacity during outages and…
  5. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 5
    High-dividend, high-growth strategy WPZ distribution growth, Williams IDRs drive strong growth in Williams dividend Strong WPZ coverage provides distribution cushion, additional funds for reinvestment We plan to pay out…
  6. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 6
    Corporate Solid segment profit + DD&A Assumes E&P Separation 12/31/11 (Prior periods exclude E&P) growth Adjusted Segment Profit1 + DD&A (midpoint of guidance, dollars in millions) 4,000 TOTAL Williams Partners MC&O 3,500…
  7. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 7
    Corporate Assumes E&P Growing fee-based business Separation 12/31/11 (Prior periods exclude E&P) supports higher dividends millions 2011 2012 2013 3,500 Gross Margin Williams Partners (WPZ) Adjusted Segment Profit +…
  8. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 8
    Williams Partners L.P. (WPZ) MLP business model drives strong cash distributions (midpoint of guidance, dollars in millions) WPZ distributions grow at 8% -- GP / IDRs grow at 25% WPZ Distributions2 to WMB 1,400 13% CAGR 1,216…
  9. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 9
    Williams Partners L.P. (WPZ) 77% of business is low-risk, fee-based WPZ Gross Margin* 2010 2013 Forecast Total Gross Margin: 3.1B Total Gross Margin: 3.7B 6% 6% Gas Pipeline Demand Revenues 18% 17% Non-demand Revenues…
  10. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 10
    Williams Consolidated Visibility to growth in all areas Growth Capital Spending by Supply and Market Areas 2011-2013 2011-2016 4,600 5,800 8,350 10,500 14,450 16,900 In guidance In guidance Under negotiation In guidance Under…
  11. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 11
    Marcellus - WPZ Atlantic Access connects Marcellus to Transco markets (proposed) Description Rivervale (Tenn) Firm path from receipt points in SW PA/WV and Butler Rivervale, NJ in Transcos Zone 6 to Northeast, Mid- Oakford…
  12. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 12
    Marcellus - WPZ Marcellus NE Pennsylvania expansion Acquired Cabot midstream assets in Susquehanna County for 150MM in late 2010 Planned system capacity of approximately 1.25 Bcf/d Gathering and take-away capacity expansions…
  13. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 13
    Deepwater Gulf of Mexico - WPZ Proposed Keathley Canyon Connector Major expansion of the central Gulf of Mexico (Discovery) gas gathering system Over 200 miles of new large diameter deepwater gas pipeline Originating in…
  14. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 14
    Western U.S. - WPZ Parachute TXP1 Expansion of the existing Parachute plant complex Additional 350 MMcfd high ethane recovery, cryogenic processing plant Capable of recovering 15-18 Mbpd, with ethane recoveries of 90%…
  15. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 15
    Eastern Seaboard - WPZ Power generation opportunities Marcellus 30 GW of potential incremental natural gas C power generation within 50 miles of Transco Shale C G C C G G G G Zone 6 G C G P C G N C C P C G G P G G…
  16. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 16
    Canada MC&O Uniquely positioned to open up NGL market out of Fort McMurray Boreal Pipeline Low-risk investment utilizes Williams international cash reserves 261-mile NGL pipeline from Fort McMurray to Redwater Fractionator…
  17. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 17
    Olefins - MC&O Geismar plant expansion capitalizes on competitive advantages Preliminary engineering complete; detailed engineering under way Expansion targets Completion 3Q 2013 600 million pounds per year of ethylene Why…
  18. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 18
    Executed on plan to unlock value Transformed Williams into premier high-growth, high-dividend energy infrastructure company Right assets, right markets, right strategy MLP structure enables Williams high growth and high dividend…
  19. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 19
    2012 The Williams Companies, Inc. All rights reserved.
  20. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 20
    Appendix 2012 The Williams Companies, Inc. All rights reserved.
  21. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 21
    Williams Partners L.P. (WPZ) 4 billion of growth spending dominates capex Capital Expenditure Guidance 2011 2012 2013 2,000 2,250 2,000 1,750 2,000 1,750 1,500 1,750 1,500 1,500 1,250 1,250 1,250 1,000 1,000 1,000 750…
  22. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 22
    Williams Partners L.P. (WPZ) Adjusted segment profit and DD&A guidance 2011 2012 2013 Dollars in millions Guidance Guidance Guidance Adjusted Segment Profit: Midstream 1,150 - 1,250 1,050 - 1,450 1,100 - 1,550 1,075 - 1,325…
  23. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 23
    WPZ Midstream Gas & Liquids Assets are resilient relative to commodity price swings Marcellus Shale Rockies Basin Piceance Basin San Juan Basin Deepwater Gulf of Mexico 2012 The Williams Companies, Inc. All…
  24. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 24
    WPZ Midstream Gas & Liquids Capital spending outlook Dollars in Millions 20112013 20112016 2,725 3,475 4,000 5,000 8,500 9,500 In guidance In guidance Under negotiation In guidance Under negotiation Potential 10% 10% 5% 30%…
  25. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 25
    WPZ Midstream Gas & Liquids Leading Marcellus gatherer with continued growth opportunities 2012 The Williams Companies, Inc. All rights reserved. Credit Suisse Energy Summit / February 7, 2012 / 27
  26. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 26
    WPZ Midstream Gas & Liquids Capacity additions allow for increasing Marcellus volumes Initial two Midstream gathering systems expected to drive 2.75 Bcf/d in volumes by 2015 Laurel Mountain* and NE Pennsylvania 400 3.0 350…
  27. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 27
    WPZ Midstream Gas & Liquids Well positioned for emerging plays 2012 The Williams Companies, Inc. All rights reserved. Credit Suisse Energy Summit / February 7, 2012 / 29
  28. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 28
    WPZ Midstream Gas & Liquids Large-scale western G&P assets well positioned for continued success Southwest Wyoming 1.5 Bcf/d processing capacity Opal Market Link to connect Uinta gas to Opal hub Wamsutter 740 MMcf/d of…
  29. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 29
    WPZ Gas Pipeline Premier assets serving growth markets Gas Pipeline Key Facts: 14,650 miles of pipelines Total annual throughput of 3.2 Tcf Peak-day delivery of 14.7 MMDth Transports 14% of daily U.S. gas supply Northwest…
  30. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 30
    WPZ Gas Pipeline Stable, fee-based revenues 92% of 2010 operating revenues from reservation charges Transco Northwest 2010 Revenue 999 MM 2010 Revenue 420 MM 2% 91% 5% 7% 95% Reservation Volumetric Other Note:…
  31. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 31
    WPZ Gas Pipeline Growth projects: Inventory approaching 1 billion N Seattle Lateral NE Connector/ Nov. 12 Rockaway Lateral As early as April 14 S Seattle Lateral NE Supply Link Nov. 12 Nov. 13 Jackson Prairie Phased 07-12…
  32. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 32
    WPZ Gas Pipeline Future growth outside guidance Leidy Expansion TBD Atlantic Access As early as Dec. 14 Opal Market Link TBD Pacific Connector TBD McMullen Expansion TBD Future Southeast Expansions TBD…
  33. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 33
    Midstream Canada & Olefins Capital spending outlook Dollars in Millions 20112013 20112016 1,400 1,800 2,750 3,750 3,350 4,650 In guidance In guidance Under negotiation In guidance Under negotiation Potential 35% 20% 25%…
  34. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 34
    Midstream Canada & Olefins Gulf Olefins major assets are well positioned in revitalized U.S. petrochemical industry Mont Belvieu Area Port Arthur Williams Ethylene Hub Houston Ship Channel Geismar Williams…
  35. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 35
    Williams Partners L.P. (WPZ) WPZ Price assumptions and financial impacts 2012 Guidance 2013 Guidance Low Midpoint High Low Midpoint High Crude Oil - WTI 70.00 82.50 95.00 70.00 85.00 100.00 Natural Gas - Henry Hub 3.50 4.25…
  36. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 36
    Williams Consolidated Assumes E&P Separation 2012-2013 commodity price 12/31/11 assumptions and financial impacts 2012 Guidance 2013 Guidance Low Midpoint High Low Midpoint High Crude Oil - WTI 70.00 82.50 95.00 70.00 85.00…
  37. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 37
    Williams Consolidated Strong performance even in less favorable commodity market Adjusted Segment Profit1 + DD&A Capital Expenditures Assumes E&P separation 12/31/11 (Prior periods exclude E&P) 4,000 3,000 Assumes E&P separation…
  38. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 38
    Corporate Geismar reduces WPZ Midstream long ethane position WPZ Midstream Geismar Olefins 800 191 MBbl/d 600 C2 400 74 MBbl/d 13 MM Lbs C3= 200 C2 C3+ 35 270 MM Lbs MBbl/d C2= C3+ - Total WPZ NGL production…
  39. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 39
    Corporate Assumes E&P 2012-2013 adjusted segment Separation 12/31/11 profit + DD&A guidance 2012 2013 Dollars in millions Guidance Guidance Williams Partners (WPZ) 2,365 - 2,845 2,460 - 3,000 2,315 - 2,895 2,385 - 3,075…
  40. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 40
    Corporate Assumes E&P 2012-2013 capital Separation 12/31/11 expenditures guidance 2012 2013 Dollars in millions Guidance Guidance Williams Partners (WPZ) 1,905 - 2,205 1,450 - 1,850 1,480 - 1,780 1,350 - 1,750 Midstream…
  41. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 41
    WMB Non-GAAP Reconciliations 2012 The Williams Companies, Inc. All rights reserved.
  42. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 42
    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) 2010 2011 (Dollars in…
  43. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 43
    WMB Non-GAAP Reconciliations WMB non-GAAP reconciliation schedule cont. Other (Gain)/loss from Venezuela investment - (13) (30) - (43) (11) - - (11) Total Other adjustments - (13) (30) - (43) (11) - - (11) Adjustments included…
  44. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 44
    WMB Non-GAAP Reconciliations Non-GAAP reconciliation schedule adjusted segment profit (loss) Reconciliation of Segment Profit (Loss) to Adjusted Segment Profit (Loss) (UNAUDITED) 2010* 2011 (Dollars in millions) 1st Qtr 2nd…
  45. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 45
    WMB Non-GAAP Reconciliations 2011 forecast Non-GAAP adjustment detail Segment Profit Adjustments: in millions Wi l l i a ms Pa rtners Ga i n on s a l e of ba s e ga s from Hes ter s tora ge fi el d (4) Los s rel a ted to Emi…
  46. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 46
    WMB Non-GAAP Reconciliations Segment profit guidance reported to adjusted Dollars in millions 2011 Guidance 2012 Guidance 2013 Guidance PRE E&P SEPARATION POST E&P SEPARATION -- DOES NOT INCLUDE EXPLOR. & PROD. Low Midpoint…
  47. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 47
    WMB Non-GAAP Reconciliations Reconciliation of forecasted reported income from continuing operations to adjusted income from continuing operations Dollars in millions 2011 Guidance 2012 Guidance 2013 Guidance PRE E&P SEPARATION…
  48. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 48
    WPZ Non-GAAP Reconciliations 2012 The Williams Companies, Inc. All rights reserved.
  49. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 49
    WPZ Non-GAAP Reconciliations WPZ distributable cash flow reconciliation Dollars in millions 3rd Quarter Year-to-Date 2011 2010 2011 2010 Net income 342 253 987 815 Depreciation and amortization 155 140 459 420 Non-cash…
  50. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 50
    WPZ Non-GAAP Reconciliations WPZ coverage ratios Dollars in millions, except coverage ratios 3rd Quarter Year-to-Date 2011 2010 2011 2010 Net income 342 253 987 815 Distributable cash flow attributable to partnership…
  51. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 51
    WPZ Non-GAAP Reconciliations Net income & distributable cash flow Dollars in million, except coverage ratios 2011 Guidance 2012 Guidance 2013 Guidance Low Midpoint High Low Midpoint High Low Midpoint High Net Income 1,275 1,350…
  52. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 52
    WPZ Non-GAAP Reconciliations Segment profit guidance reported to adjusted Dollars in millions 2011 Guidance 2012 Guidance 2013 Guidance Low Midpoint High Low Midpoint High Low Midpoint High Reported segment profit: Midstream…
  53. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 53
    WPZ Non-GAAP Reconciliations Adjusted segment profit reconciliation Reconciliation of GAAP Segment Profit to Non-GAAP Adjusted Segment Profit (UNAUDITED) 2010 2011 (Dollars in millions) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr…
  54. CREDIT SUISSE ANNUAL ENERGY SUMMIT 2012 – Williams Companies, Inc. – slide 54
    2012 The Williams Companies, Inc. All rights reserved.

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