Skip to main content January Investor Meetings – Williams Companies, Inc. Investor Presentation | Shale Experts
Loading...
Pm

January Investor Meetings – Williams Companies, Inc.

Williams Companies, Inc. · Jan 8, 2019 · 46 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. January Investor Meetings – Williams Companies, Inc. – slide 1
    NYSE: WMB williams.com WE MAKE ENERGY HAPPEN Williams January Investor Meetings January 2019 WILLIAMS COMPANIES HEADQUARTERS Tulsa, Oklahoma
  2. January Investor Meetings – Williams Companies, Inc. – slide 2
    Williams is a unique large-scale, low-volatility, growing natural gas infrastructure company with strong investor upside Volume-driven, natural gas strategy drives low volatility in earnings and cash flow STABILITY Advantaged and…
  3. January Investor Meetings – Williams Companies, Inc. – slide 3
    Consistent strategy focused on natural gas volume growth WILLIAMS HANDLES 30% OF U.S. NATURAL GAS VOLUMES Gas End Users Industrial Residential/ Commercial Wellhead Gathering Gas Processing Plants Natural Gas (onshore and…
  4. January Investor Meetings – Williams Companies, Inc. – slide 4
    Connecting the best supplies to the best markets with advantaged infrastructure Williams U.S. Asset Map NORTHEAST G&P Operating Area Large-scale asset footprint in place Significant production growth driven by infrastructure…
  5. January Investor Meetings – Williams Companies, Inc. – slide 5
    Industry leading board of directors focused on capital discipline and long-term growth Alan Armstrong Stephen W. Bergstrom Nancy K. Buese Stephen I. Chazen Charles Casey Kathleen B. Cooper Michael A. Creel Inside Director…
  6. January Investor Meetings – Williams Companies, Inc. – slide 6
    Leadership team focused on driving toward sustainable, long-term growth Leadership & Organization aligned around our focused strategy Talent Focusing resources on regulatory, permitting and government Development affairs to increase…
  7. January Investor Meetings – Williams Companies, Inc. – slide 7
    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…
  8. January Investor Meetings – Williams Companies, Inc. – slide 8
    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…
  9. January Investor Meetings – Williams Companies, Inc. – slide 9
    Williams regulated gas pipelines located in most densely populated areas of United States, creating premier competitive advantage U.S. Counties Color-coded by Population Density vs. Williams Regulated Northwest Natural Gas Pipelines…
  10. January Investor Meetings – Williams Companies, Inc. – slide 10
    Williams Northeast G&P located in basin with largest recoverable gas reserves at the lowest cost Gas-Directed Risked Reserves by Region U.S. Key Production (Tcf) Basins vs. Williams 89% G&P Assets…
  11. January Investor Meetings – Williams Companies, Inc. – slide 11
    Natural gas provides superior economic and environmental benefits vs. other fuels, driving investment in new demand DECEMBER 2018 /MMBTU BY FUEL SOURCE 12 61.00 10 Bbl WTI to Henry Hub ratio 2.2X 8 52.16 Bbl Ethane Frac 47.20…
  12. January Investor Meetings – Williams Companies, Inc. – slide 12
    Robust domestic and global natural gas demand forecasts continue to rise, reaching 120 Bcf/d by 2023 NORTH AMERICAN NATURAL GAS DEMAND BY SECTOR (20122023) 135 120 Demand Growth 17-18: 105 10% 90 1,045 Mbpd of incremental…
  13. January Investor Meetings – Williams Companies, Inc. – slide 13
    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 45% Cumulative Global Demand Growth Since 11 Forecast 16 40% 14 35% Oil & Gas Price in…
  14. January Investor Meetings – Williams Companies, Inc. – slide 14
    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…
  15. January Investor Meetings – Williams Companies, Inc. – slide 15
    Natural gas continues to be the preferred fuel type for new power generation projects in the United States, followed by renewables Power Generation Projects Under Construction Fuel Type of Carbon intensity from the U.S. power sector by…
  16. January Investor Meetings – Williams Companies, Inc. – slide 16
    Supply from advantaged basins must grow to meet forecasted demand NATURAL GAS FORECASTED PRODUCTION BY REGION & WELL TYPE (20172022) 45 +14.8 Bcf/d Gas Directed 40 or 61% Oil-Directed 70% of N.A. 35 Gas growth 30 comes from…
  17. January Investor Meetings – Williams Companies, Inc. – slide 17
    Forecasted Northeast production growth alone could fuel domestic natural gas demand growth through 2022 NORTH AMERICAN NATURAL GAS CUMULATIVE PRODUCTION NORTH AMERICAN NATURAL GAS CUMULATIVE DEMAND GROWTH 2017-2022 (IN BCF/D) GROWTH…
  18. January Investor Meetings – Williams Companies, Inc. – slide 18
    2nd wave of U.S. LNG export projects expected to drive an additional +5 Bcf/d of growth through 2027 Williams Asset Map + Third-party Liquefaction Plants Sabine Pass Cove Point Corpus Christi Cameron Elba Island Freeport 2nd Wave Gulf…
  19. January Investor Meetings – Williams Companies, Inc. – slide 19
    Global LNG demand grows by 24 Bcf/d through 2027, driven by Asia and Europe TOP DRIVERS OF GLOBAL LNG DEMAND BY COUNTRY 17- 27 Factors Driving Growth China & India Developing economies pursuing clean 63 61 Global energy for growth &…
  20. January Investor Meetings – Williams Companies, Inc. – slide 20
    Chinese LNG demand surpassed industry expectations in 2017; Growth outlook remains strong for 2018 and beyond 1 Chinese LNG Demand vs. N.A. LNG Export Forecast 2 Factors Driving LNG Demand Growth in China 2016-2020 Ambitious goals to…
  21. January Investor Meetings – Williams Companies, Inc. – slide 21
    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 Bcf/d (2017-2022) +3.5…
  22. January Investor Meetings – Williams Companies, Inc. – slide 22
    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…
  23. January Investor Meetings – Williams Companies, Inc. – slide 23
    Atlantic Sunrise: Largest expansion project in Transco history placed in service October 6th delivers significant EBITDA growth Williams U.S. Asset Map NY Highlighting Transcos Significant revenue contribution to Transco Atlantic…
  24. January Investor Meetings – Williams Companies, Inc. – slide 24
    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…
  25. January Investor Meetings – Williams Companies, Inc. – slide 25
    Transco Project 2 sanctioned: Leidy South Providing access to new Northeast supplies U.S. Map of Williams Assets, Highlighting Transco Pipeline PROJECT 1 Extends Transcos reach Greater than 1,000 MDth/d of firm transport capacity in…
  26. January Investor Meetings – Williams Companies, Inc. – slide 26
    Transco: Unprecedented growth demonstrates competitive advantage TRANSCO CONTRACTED CAPACITY AND FEE-BASED REVENUE 20 19.3 2,750 Attractive Returns on Growth Projects 18.0 18 2018 17.7 2,500 2017(1) 2021(2) 16.9 Growth Capital…
  27. January Investor Meetings – Williams Companies, Inc. – slide 27
    Northeast G&P: Large footprint with foundational assets in place UTICA SUSQUEHANNA SUPPLY SUPPLY HUB(1) HUB Cardinal Gathering(3) 3.6 Bcf/d of gathering capacity in Flint Gathering dry gas Utica East Ohio (UEO)(2) BRADFORD 1.3…
  28. January Investor Meetings – Williams Companies, Inc. – slide 28
    Northeast G&P: Substantial growth expected from incremental takeaway capacity and new expansion projects to relieve constraints NORTHEAST GATHERING VOLUME GROWTH THROUGH 3Q 2018; AVERAGE GATHERED VOLUMES (BCF/D) 8 Legend Dry Gas Wet…
  29. January Investor Meetings – Williams Companies, Inc. – slide 29
    Gulf of Mexico: Substantial discoveries in close proximity to existing assets expected to facilitate long-term growth MS AL 7 tiebacks contracted, expecting more LA FL Shell Appomattox dedication, Norphlet pipeline option Producer…
  30. January Investor Meetings – Williams Companies, Inc. – slide 30
    Pro-forma Four Corners sale and DJ Basin acquisition: 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…
  31. January Investor Meetings – Williams Companies, Inc. – slide 31
    Moved to investment grade on significant credit metric improvement; Industry leading dividend coverage funding growth capital forecast 4.4 billion of asset sales from 2016-2018 No equity issuance required to fund forecasted…
  32. January Investor Meetings – Williams Companies, Inc. – slide 32
    Steady and predictable growth despite assets sales and commodity price volatility Williams Adjusted EPS 2017-2019 1.10 Assets sales of over 1.00 3.4B Geismar in 17; Four Corners & Gulf Pipes in 18 We expect 2018 to be in the High…
  33. January Investor Meetings – Williams Companies, Inc. – slide 33
    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…
  34. January Investor Meetings – Williams Companies, Inc. – slide 34
    Williams is a unique large-scale, low-volatility, growing natural gas infrastructure company with strong investor upside Volume-driven, natural gas strategy drives low volatility in earnings and cash flow STABILITY Advantaged and…
  35. January Investor Meetings – Williams Companies, Inc. – slide 35
    Forward Looking Statements 2019 The Williams Companies, Inc. All rights reserved. Williams January Investor Meetings I January 2019 35
  36. January Investor Meetings – Williams Companies, Inc. – slide 36
    FORWARD-LOOKING STATEMENTS Forward-looking statements (contd) Risks associated with weather and natural phenomena, including climate conditions and physical damage to our facilities; Acts of terrorism, cybersecurity incidents, and…
  37. January Investor Meetings – Williams Companies, Inc. – slide 37
    Non-GAAP Reconciliations 2019 The Williams Companies, Inc. All rights reserved. Williams January Investor Meetings I January 2019 39
  38. January Investor Meetings – Williams Companies, Inc. – slide 38
    NON-GAAP RECONCILIATIONS Reconciliation of Income (Loss) 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. January Investor Meetings – Williams Companies, Inc. – slide 39
    NON-GAAP RECONCILIATIONS Reconciliation of Income (Loss) 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…
  40. January Investor Meetings – Williams Companies, Inc. – slide 40
    NON-GAAP RECONCILIATIONS Reconciliation of Income (Loss) Attributable to The Williams Companies, Inc. to Adjusted Income (cont) GUI DANCE RANGES 2018 2019 Midpt. High Low Midpt. High (Dol l a rs i n mi l l i ons , except per-s ha…
  41. January Investor Meetings – Williams Companies, Inc. – slide 41
    NON-GAAP RECONCILIATIONS Reconciliation of Income (Loss) Attributable to The Williams Companies, Inc. to Adjusted Income (cont) 2018 Guidance 2018 Guidance (Dollars in millions, except per-share amounts) Midpoint High Adjustments…
  42. January Investor Meetings – Williams Companies, Inc. – slide 42
    NON-GAAP RECONCILIATIONS Reconciliation of Net Income to Modified EBITDA, Adjusted EBITDA, and Distributable Cash Flow 2017 2018 (Dollars in millions, except coverage ratios) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd…
  43. January Investor Meetings – Williams Companies, Inc. – slide 43
    NON-GAAP RECONCILIATIONS Reconciliation of Modified EBITDA to Non-GAAP Adjusted EBITDA 2015 and 2016 (Dollars in millions) 2015 2016 Net income (loss) (1,314) (350) Provision (benefit) for income taxes (399) (25) Interest expense…
  44. January Investor Meetings – Williams Companies, Inc. – slide 44
    NON-GAAP RECONCILIATIONS Reconciliation of Modified EBITDA to Non-GAAP Adjusted EBITDA 2017 2018 (Dollars in millions) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr Year Northeast G&P 226 247 115 231 819 250 255…
  45. January Investor Meetings – Williams Companies, Inc. – slide 45
    NON-GAAP RECONCILIATIONS 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 1.350…
  46. January Investor Meetings – Williams Companies, Inc. – slide 46
    NON-GAAP RECONCILIATIONS Distributable Cash Flow 2018 2019 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…

From the store

Browse maps, data & reports in the Shale Experts store