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2019 European Investor Meetings – Williams Companies, Inc.

Williams Companies, Inc. · Sep 16, 2019 · 55 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. 2019 European Investor Meetings – Williams Companies, Inc. – slide 1
    NYSE: WMB williams.com WE MAKE ENERGY HAPPEN European Investor Meetings September 16th-20th, 2019 Alan Armstrong, President and CEO John Chandler, Sr. Vice President and CFO Brett Krieg, Director Investor Relations
  2. 2019 European Investor Meetings – Williams Companies, Inc. – slide 2
    Williams is a unique large-scale, low-volatility, growing natural gas infrastructure company with high quality revenues STABILITY GROWTH YIELD & COVERAGE Irreplaceable asset base handling 30% of 12% Adjusted EBITDA growth 2Q19 over…
  3. 2019 European Investor Meetings – Williams Companies, Inc. – slide 3
    Williams handles 30% of U.S. natural gas volumes High-Quality, Investment-Grade, Demand-Pull Customers Gas End Users Wellhead Gathering Industrial Residential/ Gas Processing Plants Natural Gas Commercial (onshore and…
  4. 2019 European Investor Meetings – Williams Companies, Inc. – slide 4
    Williams offers attractive yield, valuation and defensive balance sheet with EBITDA growth and stability ATTRACTIVE YIELD VS. HISTORY AND OTHER ATTRACTIVE EBITDA MULTIPLE VS. HISTORY AND OTHER INCOME INVESTMENTS INCOME INVESTMENTS…
  5. 2019 European Investor Meetings – Williams Companies, Inc. – slide 5
    Natural Gas Demand Growth Drives Williams Strategy 2019 The Williams Companies, Inc. All rights reserved. European Investor Meetings I September 2019 5
  6. 2019 European Investor Meetings – Williams Companies, Inc. – slide 6
    Natural gas provides superior economics vs. other fuel type, driving investment in new demand AUGUST 2019 /MMBTU BY FUEL SOURCE 12 WTI to Henry Hub 10 ratio 4.4X 55.00 58.99 Bbl 54.83 Bbl 8 Bbl /MMBtu 6 4 2 2.02 2.15…
  7. 2019 European Investor Meetings – Williams Companies, Inc. – slide 7
    Natural gas plays a critical role in reducing CO2 emissions POUNDS OF CO2 PER MMBTU NESE ENVIRONMENTAL IMPACT: ANNUAL CO2 EMISSIONS IN MM TONS Natural gas has lowest CO2 emissions to 6 million tons of CO2 Williams NESE project…
  8. 2019 European Investor Meetings – Williams Companies, Inc. – slide 8
    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…
  9. 2019 European Investor Meetings – Williams Companies, Inc. – slide 9
    Robust US and global natural gas demand forecasts continue to rise, reaching 104 Bcf/d by 2021 AUGUST 2018 TO JULY 2019 UNITED STATES NATURAL GAS DEMAND BY SECTOR (20142021) UNITED STATES PRODUCTION BY REGION IN BCF/D 120 5 105…
  10. 2019 European Investor Meetings – Williams Companies, Inc. – slide 10
    Increased natural gas market share in the power sector has enabled a 27% reduction in CO2 emissions in the United States NET POWER GENERATION VS. CO2 EMISSIONS IN THE U.S. NATURAL GAS PLAYS A CRITICAL POWER SECTOR ROLE IN REDUCING CO2…
  11. 2019 European Investor Meetings – Williams Companies, Inc. – slide 11
    Natural gas overtakes coal and nuclear as dominant fuel source for power S&P GLOBAL PLATTS ANALYTICS FORECASTED UNITED STATES POWER GENERATION AND MARKET SHARE BY MAJOR SOURCES 300 COAL AND NUCLEAR NATURAL GAS RENEWABLES 250 20%…
  12. 2019 European Investor Meetings – Williams Companies, Inc. – slide 12
    Natural gas continues to be the preferred fuel type for new power generation projects in the United States, followed by renewables Power Generation Projects Built in 18-19, Under Construction and Permitted by Fuel Type Fuel Type of…
  13. 2019 European Investor Meetings – Williams Companies, Inc. – slide 13
    North American LNG export growth has just begun Project Name Bcf/d Status +5.4 Sabine Pass Trains 1-5 3.3 Operational FORECASTED N.A. LNG EXPORT MONTHLY VOLUMES (2017 2028) Cove Point 0.7 Operational 20,000 Corpus Christi Train 1 0.7…
  14. 2019 European Investor Meetings – Williams Companies, Inc. – slide 14
    Global LNG demand expected to grow over 70% through 2028, driven by Asia and Europe TOP DRIVERS OF GLOBAL LNG DEMAND BY REGION 18-28 Factors Driving Growth 0.6 0.7 China & India 1.0 0.9 Developing economies pursuing clean 68 Global…
  15. 2019 European Investor Meetings – Williams Companies, Inc. – slide 15
    Williams regulated gas pipelines have unmatched access to growing natural gas demand sources U.S. POPULATION DENSITY SEATTLE AND FORECASTED LNG TERMINALS VS. WILLIAMS Northwest REGULATED NATURAL GAS PORTLAND PIPELINES Pipeline…
  16. 2019 European Investor Meetings – Williams Companies, Inc. – slide 16
    Industrial projects drive additional natural gas demand, predominantly along Transco states and Midwest 80 IDENTIFIED INDUSTRIAL PROJECTS DRIVING NATURAL GAS NATURAL GAS INDUSTRIAL PROJECTS BY DEMAND THROUGH 2023 IN LOWER-48 SUB-SECTOR…
  17. 2019 European Investor Meetings – Williams Companies, Inc. – slide 17
    Positioned for Stability and Growth 2019 The Williams Companies, Inc. All rights reserved. European Investor Meetings I September 2019 17
  18. 2019 European Investor Meetings – Williams Companies, Inc. – slide 18
    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…
  19. 2019 European Investor Meetings – Williams Companies, Inc. – slide 19
    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 Pipeline Exposure Fee-based Revenue Reduced commodity…
  20. 2019 European Investor Meetings – Williams Companies, Inc. – slide 20
    Growth capital projects across the portfolio 2018 2019 2020 2021 2022+ Transco Atlantic Sunrise Northwest Pipeline North Seattle Lateral Transco Hillabee Phase 2 Transco Transco Leidy South 1.7 MMDth/d; 2.6B Upgrade 159 MDth/d; 47MM…
  21. 2019 European Investor Meetings – Williams Companies, Inc. – slide 21
    Applying a data-driven approach to NESE advocacy NORTHEAST SUPPLY ENHANCEMENT (NESE) DATA-DRIVEN ADVOCACY: Map Of NESE Project Area Analyzed data to pinpoint compelling narratives and segments of NY supporters to help communicate the…
  22. 2019 European Investor Meetings – Williams Companies, Inc. – slide 22
    Fully-contracted Transco expansions provide clear visibility into forecasted revenue TRANSCO FULLY-CONTRACTED YEAR-END DELIVERY CAPACITY AND FEE-BASED REVENUE 20 2.75 Attractive Returns on Growth Projects 18.9 18.3 2017(1) 2018(2)…
  23. 2019 European Investor Meetings – Williams Companies, Inc. – slide 23
    Double digit EBITDA growth expected in the Northeast in 2019 - 2020 NORTHEAST EBITDA VS. VOLUME GROWTH CURRENT NORTHEAST FORECASTS 2Q 18 - 2Q 19 2019 - 2020 Actuals Forecast 400 25% 12 1.8 11% 12 growth growth 5.5% 350 17% 1.6…
  24. 2019 European Investor Meetings – Williams Companies, Inc. – slide 24
    New projects, rate increases and additional services enable Northeast EBITDA growth at a higher rate than gathering volumes Utica Gathering Pipeline 2020 EBITDA DRIVERS Northeast JV Pipeline Constitution ORSH Gathering Pipeline 2019…
  25. 2019 European Investor Meetings – Williams Companies, Inc. – slide 25
    Substantial Gulf of Mexico discoveries near existing assets expected to facilitate long-term growth MS AL FL COMPLETED PROJECTS LA Acquired the Norphlet Pipeline for 200 million following Shells first TX gas production in late June…
  26. 2019 European Investor Meetings – Williams Companies, Inc. – slide 26
    Sustainability and Stewardship 2019 The Williams Companies, Inc. All rights reserved. European Investor Meetings I September 2019 26
  27. 2019 European Investor Meetings – Williams Companies, Inc. – slide 27
    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…
  28. 2019 European Investor Meetings – Williams Companies, Inc. – slide 28
    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…
  29. 2019 European Investor Meetings – Williams Companies, Inc. – slide 29
    Strong leadership commitment to sustainable business practices MAINTAINING STRONG LEADERSHIP WITH THE SUPPORT OF OUR ENGAGED BOARD OF DIRECTORS Diverse and independent board comprised of industry leaders Oversight on ESG issues from…
  30. 2019 European Investor Meetings – Williams Companies, Inc. – slide 30
    Taking care to reduce emissions, safeguard biodiversity and responsibly manage natural resources ENVIRONMENTAL PERFORMANCE HIGHLIGHTS Reduced reportable methane emissions from processing plants and compressor stations 53% since…
  31. 2019 European Investor Meetings – Williams Companies, Inc. – slide 31
    Strong safety culture founded on operational discipline WILLIAMS TOTAL RECORDABLE INCIDENT RATE AND LOST-TIME INCIDENT RATE SAFETY IS OUR PRIORITY 1.4 We empower all employees and 1.2 contractors to contribute to Williams safety…
  32. 2019 European Investor Meetings – Williams Companies, Inc. – slide 32
    Strengthening the communities where we operate for over a century STRENGTHING COMMUNITIES Following the Williams family legacy, we continue to be active, involved and passionate community leaders 107 million total charitable giving…
  33. 2019 European Investor Meetings – Williams Companies, Inc. – slide 33
    A history of industry recognition 2019 Tulsa Area United Way Cornerstone Award for 1MM+ campaign (29th consecutive year for 1MM+ campaign in Tulsa) Top company for number of volunteers at Day of Caring in Tulsa (450+ volunteers)…
  34. 2019 European Investor Meetings – Williams Companies, Inc. – slide 34
    Financial Performance: Meeting and Exceeding Targets 2019 The Williams Companies, Inc. All rights reserved. European Investor Meetings I September 2019 34
  35. 2019 European Investor Meetings – Williams Companies, Inc. – slide 35
    Strong 2Q year-to-date and quarterly results Significant financial performance improvement 2Q 2Q % 2Q YTD 2Q YTD % across all key metrics 2019 2018 Change 2019 2018 Change Cash Flow from Operations 1,069 891 20% 1,844 1,585 16%…
  36. 2019 European Investor Meetings – Williams Companies, Inc. – slide 36
    Consistently delivering on our promises: Key 2018 results exceeded guidance midpoints In Billions except for percentages, ratios and per share amounts 2018 GUIDANCE1 0.193 (Reported) 1.108 (Adjusted) Net Income 0.975 1.075 1.175…
  37. 2019 European Investor Meetings – Williams Companies, Inc. – slide 37
    Lowered Debt-to-Adjusted EBITDA guidance for 2019 2019 GUIDANCE In Billions except for percentages, ratios and per share amounts Net Income 1.100 - 1.400 Adjusted EPS 0.83 - 1.07 Adjusted EBITDA 4.850 - 5.150 Distributable Cash…
  38. 2019 European Investor Meetings – Williams Companies, Inc. – slide 38
    Full-year 2019 Distributable Cash Flow per share vs. Adjusted EPS Earnings per share (EPS) includes large, non-cash charges 3.50 0.08 (1.45) 1.45 0.47 ARO Accretion 3.00 Amortization (0.03) Add Back: (0.26) 2.55 Noncontrolling…
  39. 2019 European Investor Meetings – Williams Companies, Inc. – slide 39
    Adjusted EBITDA growth and strategic transactions accelerate de-leveraging NET DEBT-TO-ADJUSTED EBITDA VS. ADJUSTED EBITDA1 2016 2Q 19 6.0 5,000 5.1B Asset Sales Since 2016 Adjusted EBITDA In MM USD 5.5 4,800 Net Debt-to-Adj.…
  40. 2019 European Investor Meetings – Williams Companies, Inc. – slide 40
    Steady and predictable growth despite assets sales and commodity price volatility WILLIAMS ADJUSTED EPS 2017-2019 1.20 Assets sales of over 1.10 5.1B Includes Canadian Olefins in 16; 1.00 Geismar in 17; High 1.07 Four Corners &…
  41. 2019 European Investor Meetings – Williams Companies, Inc. – slide 41
    Williams is a unique large-scale, low-volatility, growing natural gas infrastructure company with high quality revenues Demand-driven, natural gas strategy built on irreplaceable asset base handling 30% of U.S. natural gas…
  42. 2019 European Investor Meetings – Williams Companies, Inc. – slide 42
    Forward Looking Statements 2019 The Williams Companies, Inc. All rights reserved. European Investor Meetings I September 2019 42
  43. 2019 European Investor Meetings – Williams Companies, Inc. – slide 43
    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…
  44. 2019 European Investor Meetings – Williams Companies, Inc. – slide 44
    Non-GAAP Reconciliations 2019 The Williams Companies, Inc. All rights reserved. European Investor Meetings I September 2019 46
  45. 2019 European Investor Meetings – Williams Companies, Inc. – slide 45
    NON-GAAP RECONCILIATIONS Reconciliation of Income (Loss) Attributable to The Williams Companies, Inc. to Adjusted Income, 2016 and 2017 2019 The Williams Companies, Inc. All rights reserved. European Investor Meetings I September…
  46. 2019 European Investor Meetings – Williams Companies, Inc. – slide 46
    NON-GAAP RECONCILIATIONS Reconciliation of Income (Loss) Attributable to The Williams Companies, Inc. to Adjusted Income, 2016 and 2017 (contd) 2019 The Williams Companies, Inc. All rights reserved. European Investor Meetings I…
  47. 2019 European Investor Meetings – Williams Companies, Inc. – slide 47
    NON-GAAP RECONCILIATIONS Reconciliation of Net Income/(Loss) to Modified EBITDA and Adjusted EBITDA, 2016 and 2017 2019 The Williams Companies, Inc. All rights reserved. European Investor Meetings I September 2019 50
  48. 2019 European Investor Meetings – Williams Companies, Inc. – slide 48
    NON-GAAP RECONCILIATIONS Reconciliation of Income (Loss) Attributable to The Williams Companies, Inc. to Adjusted Income, 2018 and 2019 YTD 2018 2019 (Dollars in millions, except per-share amounts) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year…
  49. 2019 European Investor Meetings – Williams Companies, Inc. – slide 49
    NON-GAAP RECONCILIATIONS Reconciliation of Income (Loss) Attributable to The Williams Companies, Inc. to Adjusted Income, 2018 and 2019 YTD (cont) 2018 2019 (Dollars in millions, except per-share amounts) 1st Qtr 2nd Qtr 3rd Qtr 4th…
  50. 2019 European Investor Meetings – Williams Companies, Inc. – slide 50
    NON-GAAP RECONCILIATIONS Reconciliation of Net Income (Loss) to Modified EBITDA, Adjusted EBITDA and Distributable Cash Flow, 2018 and 2019 YTD 2018 2019 (Dollars in millions, except coverage ratios) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr…
  51. 2019 European Investor Meetings – Williams Companies, Inc. – slide 51
    NON-GAAP RECONCILIATIONS Reconciliation of Modified EBITDA to Non-GAAP Adjusted EBITDA 2018 2019 (Dollars in millions) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr Year Net income (loss) 270 269 200 (546) 193 214 324 538…
  52. 2019 European Investor Meetings – Williams Companies, Inc. – slide 52
    NON-GAAP RECONCILIATIONS Explanation of Net Debt to Adjusted EBITDA Millions, unless otherwise noted 2016 2017 2018 Q2'19 Commercial Paper 93 0 0 0 Current Portion of Long-term Debt 785 501 47 1,563 Noncurrent Portion of…
  53. 2019 European Investor Meetings – Williams Companies, Inc. – slide 53
    NON-GAAP RECONCILIATIONS Reconciliation of Northeast G&P Modified EBITDA to Adjusted EBITDA, 2019 and 2020 Latest Forecast ( in millions) 2019 2020 Northeast G&P Modified EBITDA 1,281 1,450 Expenses associated with new venture 9…
  54. 2019 European Investor Meetings – Williams Companies, Inc. – slide 54
    NON-GAAP RECONCILIATIONS Reconciliation of Income (Loss) Attributable to The Williams Companies, Inc. to Adjusted Income Reconciliation of Net Income (Loss) to Adjusted Income 2 0 1 9 G U I D AN C E ( in millions, except per-share…
  55. 2019 European Investor Meetings – Williams Companies, Inc. – slide 55
    NON-GAAP RECONCILIATIONS Reconciliation of Net Income to Modified EBITDA, Non-GAAP Adjusted EBITDA and Distributable Cash Flow (cont) ( in millions, except per-share amounts and coverage ratios) 2 0 1 9 G U I D AN C E Low Mid High…

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