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European Investor Meetings – Williams Companies, Inc.

Williams Companies, Inc. · Sep 17, 2018 · 43 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. European Investor Meetings – Williams Companies, Inc. – slide 1
    NYSE: WMB williams.com WE MAKE ENERGY HAPPEN Williams European Investor Meetings Alan Armstrong, President and CEO John Chandler, Sr. Vice President and CFO John Porter, VP Enterprise FP&A and Investor Relations September 17-20,…
  2. European Investor Meetings – Williams Companies, Inc. – slide 2
    Williams is the premier natural gas infrastructure provider in North America Leading Natural Gas Infrastructure Company; Organizational Structure Moving 30% of U.S. Volume WMB Shareholders Highly Liquid C-Corp.; 35B Market Cap.…
  3. European Investor Meetings – Williams Companies, Inc. – slide 3
    A history of industry recognition 2018 International Association for Public Participations Core Values Award and Project of the Year Award for Atlantic Sunrise project Platts 2018 1 Midstream Company 2017 Forbes U.S. Best Large…
  4. European Investor Meetings – Williams Companies, Inc. – slide 4
    Strong leadership commitment to sustainable business practices SAFETY ENVIRONMENTAL Strong safety reporting and continuous improvement culture Comprehensive Integrated Management System operationalizes EHS Robust Pipeline Integrity…
  5. European Investor Meetings – Williams Companies, Inc. – slide 5
    Robust domestic and global natural gas demand forecasts continue to rise, reaching 116 Bcf/d by 2022 NORTH AMERICAN NATURAL GAS DEMAND BY SECTOR (20122022) 135 120 10% Growth 105 2017 - 2018 33.5% CAGR 8.4% CAGR 90 4.9% CAGR 1,045…
  6. European Investor Meetings – Williams Companies, Inc. – slide 6
    Natural gas is cheaper, cleaner, more reliable and less volatile than other fuel sources Cheaper & Cleaner Than Less Volatility Henry Hub natural gas 4.5x cheaper Coal Natural gas emits nearly 60% less Than Oil than Brent crude on an…
  7. European Investor Meetings – Williams Companies, Inc. – slide 7
    U.S. natural gas market share increases over time for Power sector, while coal use declines; Contributes to a decline of CO2 emissions U.S. ELECTRIC POWER GENERATION AND EMISSIONS 2007-2017 4,500 3,000 4,000 Coal and petroleum 2,500…
  8. European Investor Meetings – Williams Companies, Inc. – slide 8
    Natural gas provides superior economics to drive investment in new demand JULY 2018 /MMBTU BY FUEL SOURCE 16 80.53/ 14 WTI to Henry Hub Bbl ratio 4.3X 12 74.34/ 70.58/ Bbl Bbl 10 /MMBtu 8 Ethane Frac 6 Spread 17.1 CPG…
  9. European Investor Meetings – Williams Companies, Inc. – slide 9
    Low inventory and price demonstrate confidence in producer abilities to meet demand U.S. NATURAL GAS INVENTORY AND HENRY HUB PRICE Bcf /MMBtu 4,000 6.00 3,500 5.50 5.00 3,000 4.50 2,500 4.00 2,000 3.50 3.00 1,500 2.50 1,000 2.00…
  10. European Investor Meetings – Williams Companies, Inc. – slide 10
    Natural gas will continue to win global market share NATURAL GAS VS. OIL DEMAND GROWTH (2011 TO 2027); HENRY HUB AND WTI PRICES (MMBTU) 18 50% Cumulative Global Demand Growth Since 2011 Forecast 16 45% 14 40% Oil & Gas Price in…
  11. European Investor Meetings – Williams Companies, Inc. – slide 11
    North American natural gas demand driving a 30% increase in production through 2022, led by the Northeast NORTH AMERICAN NATURAL GAS PRODUCTION FORECAST (2017-2022) Total 140 Reaching 116 Bcf/d 120 -1.7 Bcf/d by 2022 CAGR: -5.1%…
  12. European Investor Meetings – Williams Companies, Inc. – slide 12
    Incremental infrastructure and demand will continue to unlock low-cost natural gas production in the Northeast NORTHEAST GAS PRODUCTION GROWTH FORECAST VS. PIPELINE TAKEAWAY CAPACITY + MID-ATLANTIC DEMAND Additional Mid-Atlantic 20…
  13. European Investor Meetings – Williams Companies, Inc. – slide 13
    Unique position connecting abundant U.S. natural gas supplies to growing markets NORTHEAST Large-scale asset footprint in place Significant production growth driven by infrastructure de- bottlenecking Capital efficient expansions…
  14. European Investor Meetings – Williams Companies, Inc. – slide 14
    Williams strategy: Connecting growing natural gas demand to growing low-cost gas production Consistent strategy focused on natural gas volume growth Gas End Users Natural Gas Industrial Residential/ Transportation Commercial Lines…
  15. European Investor Meetings – Williams Companies, Inc. – slide 15
    Williams best positioned to capitalize on significant opportunities to connect low-cost supplies to premier demand markets Production and Demand Growth in Key Areas in Majority of production growth in Northeast +3.5 with significant…
  16. European Investor Meetings – Williams Companies, Inc. – slide 16
    Seasonality has been eliminated from LNG export forecasts, as full utilization rates are expected Williams Asset Map + Third-party Liquefaction Plants Sabine Pass Cove Point Corpus Christi Cameron Elba Island Freeport 2nd Wave of LNG…
  17. European Investor Meetings – Williams Companies, Inc. – slide 17
    Global LNG demand grows by 25 Bcf/d through 2027, driven by Asia and Europe TOP DRIVERS OF GLOBAL LNG DEMAND BY COUNTRY 17- 27 Factors Driving Growth 64 China & India Developing economies pursuing clean 62 Global energy for growth &…
  18. European Investor Meetings – Williams Companies, Inc. – slide 18
    Attractive returns on visible growth capital focused on Transco and G&P projects in the Northeast, West and AG Deepwater 2018 2019 2020 2021 2022+ West DJ Processing West DJ Processing Plant 225 MMcf/d West DJ Processing West DJ…
  19. European Investor Meetings – Williams Companies, Inc. – slide 19
    Transco: 2018 rate case protects adequate return on base system RATE CASE TIMELINE Rate filed August 31, 2018 270MM annual revenue increase Based on 16% ROE as prescribed by FERC methodology; every 1% change in ROE is worth 30MM in…
  20. European Investor Meetings – Williams Companies, Inc. – slide 20
    Atlantic Sunrise: Largest expansion project in Transco history delivers significant run-rate EBITDA growth Map of Williams Assets and Construction complete and final commissioning Atlantic Sunrise Expansion targeted for week of…
  21. European Investor Meetings – Williams Companies, Inc. – slide 21
    Transco: Unprecedented growth demonstrates competitive advantage TRANSCO CONTRACTED CAPACITY AND FEE-BASED REVENUE 20 2,750 Attractive Returns on Growth Projects 18.7 18.0 18 2018 17.7 2,500 2017(1) 2021(2) 16.9 Fee Based…
  22. European Investor Meetings – Williams Companies, Inc. – slide 22
    Transco: Significant portfolio of growth opportunities driven by domestic and international demand Map of Williams Assets and (1)Wood Mackenzies Natural Gas Pursuing 20+ different expansion opportunities Demand Forecast in States Served…
  23. European Investor Meetings – Williams Companies, Inc. – slide 23
    Gulf of Mexico: Substantial discoveries in close proximity to existing assets expected to facilitate long-term growth MS GA 7 tiebacks contracted, expecting more LA FL Shell Appomattox dedication, Norphlet pipeline option Producer…
  24. European Investor Meetings – Williams Companies, Inc. – slide 24
    Northeast G&P: Large footprint with foundational assets in place UTICA SUSQUEHANNA SUPPLY NY HUB SUPPLY HUB(1) Cardinal Gathering(3) 3.6 Bcf/d of gathering capacity in Flint Gathering dry gas Utica East Ohio (UEO)(2) BRADFORD 1.3…
  25. European Investor Meetings – Williams Companies, Inc. – slide 25
    Northeast G&P: New expansion projects and customer agreements boosting gathering volumes in NE PA and processing in Ohio Valley SSH Producer Activity Highlights ORSH Producer Activity Highlights SUSQUEHANNA SUPPLY HUB OHIO RIVER…
  26. European Investor Meetings – Williams Companies, Inc. – slide 26
    West: Projecting growth in Wyoming assets from emerging oil, gas and NGL reserves Incremental G&P expansions and upgraded liquids handling expected in 2018 and 2019 Expansions supported by recently executed G&P agreements Horizontal…
  27. European Investor Meetings – Williams Companies, Inc. – slide 27
    West: Capturing synergies through integration of G&P and downstream assets With KKR & Co. Inc. as JV partner, acquiring Discovery DJ Services for 1.173B; 40% initial Large-Scale, Premium, Connecting the Best Supplies to economic…
  28. European Investor Meetings – Williams Companies, Inc. – slide 28
    Pro-forma Four Corners sale and Discovery DJ purchase: Fee-based business structure reinforces stability in cash flows 97% of 2019 Gross Margin from Fee-based Sources 2019 Gross Margin(1) 3% NGL and Other Commodity 38% Regulated Gas…
  29. European Investor Meetings – Williams Companies, Inc. – slide 29
    Moved to investment grade on significant credit metric improvement; Industry leading dividend coverage funding growth capital forecast 4.2 billion of asset sales largely eliminating direct No equity issuance required to fund forecasted…
  30. European Investor Meetings – Williams Companies, Inc. – slide 30
    Steady and predictable growth despite assets sales and commodity price volatility Assets sales of over 4.2B 5,500 (Canada in 2016, Geismar in 2017, Four Corners in 2018) 70 5,000 65 4,500 60 / barrel 4,000 55 millions…
  31. European Investor Meetings – Williams Companies, Inc. – slide 31
    Strong, stable and growing: 2018 and 2019 key guidance metrics 2018 GUIDANCE 1 2019 GUIDANCE Net Income 0.975 - 1.175 Bn 1.050 - 1.350 Bn Adjusted EBITDA 4.450 - 4.650 Bn 4.850 - 5.150 Bn Distributable Cash 2.600 - 2.900 Bn 2.900…
  32. European Investor Meetings – Williams Companies, Inc. – slide 32
    Williams provides a unique investment opportunity in the S&P 500 Leading Natural Gas Infrastructure Company; Moving 30% of U.S. Volume Median WMB vs. WMB S&P 500 S&P 500 Highly Liquid C-Corp.; 35B Market Cap. Approximate Current…
  33. European Investor Meetings – Williams Companies, Inc. – slide 33
    Forward Looking Statements 2018 The Williams Companies, Inc. All rights reserved. Williams European Investor Meetings I September 2018 33
  34. European Investor Meetings – Williams Companies, Inc. – slide 34
    Non-GAAP Reconciliations 2018 The Williams Companies, Inc. All rights reserved. Williams European Investor Meetings I September 2018 36
  35. European Investor Meetings – Williams Companies, Inc. – slide 35
    NON-GAAP RECONCILIATIONS WMB Reconciliation of Income Attributable to The Williams Companies, Inc. to Adjusted Income 2015 and 2016 2018 The Williams Companies, Inc. All rights reserved. Williams European Investor Meetings I…
  36. European Investor Meetings – Williams Companies, Inc. – slide 36
    NON-GAAP RECONCILIATIONS WMB Reconciliation of Income Attributable to The Williams Companies, Inc. to Adjusted Income 2015 and 2016 (cont) 2018 The Williams Companies, Inc. All rights reserved. Williams European Investor Meetings…
  37. European Investor Meetings – Williams Companies, Inc. – slide 37
    NON-GAAP RECONCILIATIONS WMB Reconciliation of Non-GAAP Modified EBITDA to Non-GAAP Adjusted EBITDA 2015 and 2016 2018 The Williams Companies, Inc. All rights reserved. Williams European Investor Meetings I September 2018 40
  38. European Investor Meetings – Williams Companies, Inc. – slide 38
    NON-GAAP RECONCILIATIONS WMB Reconciliation of Income Attributable to The Williams Companies, Inc. to Adjusted Income 2017 2018 (Dollars in millions, except per-share amounts) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr…
  39. European Investor Meetings – Williams Companies, Inc. – slide 39
    NON-GAAP RECONCILIATIONS WMB Reconciliation of Income Attributable to The Williams Companies, Inc. to Adjusted Income (cont) 2017 2018 (Dollars in millions, except per-share amounts) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd…
  40. European Investor Meetings – Williams Companies, Inc. – slide 40
    NON-GAAP RECONCILIATIONS WMB Reconciliation of Non-GAAP Modified EBITDA to Non-GAAP Adjusted EBITDA 2018 The Williams Companies, Inc. All rights reserved. Williams European Investor Meetings I September 2018 43
  41. European Investor Meetings – Williams Companies, Inc. – slide 41
    NON-GAAP RECONCILIATIONS WMB Reconciliation of Income Attributable to The Williams Companies, Inc. to Adjusted Income 2019 Guidance ( i n bi l l i ons , except per-s ha re a mounts ) Midpoint Net income (loss) 1.200 Less: Net…
  42. European Investor Meetings – Williams Companies, Inc. – slide 42
    NON-GAAP RECONCILIATIONS WMB Reconciliation of Net Income to Modified EBITDA and Non- GAAP Adjusted EBITDA 2018 2019 ( in billions) Guidance Guidance Low Mid High Low Mid High Net income (loss) 0.975 1.075 1.175 1.050 1.200…
  43. European Investor Meetings – Williams Companies, Inc. – slide 43
    NON-GAAP RECONCILIATIONS WMB Distributable Cash Flow 2 0 1 8 2 0 1 9 Guidance Guidance Low Mid High Low Mid High WMB Adjusted EBITDA 4.450 4.550 4.650 4.850 5.000 5.150 Interest expense - net…

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