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Raymond James Annual Institutional Investors Conference – Williams Companies, Inc.

Williams Companies, Inc. · Mar 2, 2020 · 39 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. Raymond James Annual Institutional Investors Conference – Williams Companies, Inc. – slide 1
    NYSE: WMB www.williams.com Raymond James Annual Institutional Investors Conference John Chandler, SVP and Chief Financial Officer March 2, 2020 Erica B. Operations Supervisor
  2. Raymond James Annual Institutional Investors Conference – Williams Companies, Inc. – slide 2
    Williams is a unique investment opportunity Disciplined Value & Focused Strategy Execution Stability Sustainable natural gas Operational excellence Sustainable growth demand growth supports Capital project success Predictable…
  3. Raymond James Annual Institutional Investors Conference – Williams Companies, Inc. – slide 3
    Williams assets are well-positioned to serve natural gas volumes WILLIAMS 2020 The Williams Companies, Inc. All rights reserved. NYSE: WMB Raymond James Annual Institutional Investors Conference 3/2/2020 I www.williams.com 2
  4. Raymond James Annual Institutional Investors Conference – Williams Companies, Inc. – slide 4
    Establishing all-time highs in 2019 Record Record Record Record Contracted Adjusted Distributable Gathered Transmission EBITDA Cash Flow Volumes Capacity 5.02 B 3.30 B 12.9 Bcf/d1 21.5 Bcf/d2 Initial 19 Guidance Initial 19…
  5. Raymond James Annual Institutional Investors Conference – Williams Companies, Inc. – slide 5
    Business performance tied to contracted transmission capacity and gathering volume Williams Quarterly Adj. EBITDA vs. Contracted Transmission Capacity and Gathering Volumes (15-19) Canada sale Geismar sale FCA sale Sept. 2016 July…
  6. Raymond James Annual Institutional Investors Conference – Williams Companies, Inc. – slide 6
    Williams generates steady growth in volumes and EBITDA Quarterly Growth: Williams Continuing Segment Adj. EBITDA, Contracted Transmission Capacity and Gathering Volume vs. Crude oil and Natural Gas Commodity Prices 160 140 EBITDA…
  7. Raymond James Annual Institutional Investors Conference – Williams Companies, Inc. – slide 7
    Stable and diversified EBITDA, limiting exposure to any one basin and creating numerous growth opportunities Stable EBITDA Growth 19 EBITDA By Franchise(2) 5,000 SUSQUEHANNA SUPPLY HUB, 10% OHIO RIVER SUPPLY HUB, 7% 4,000 EAGLE…
  8. Raymond James Annual Institutional Investors Conference – Williams Companies, Inc. – slide 8
    Gas transmission business built on demand-pull customer base Firm Contracted Capacity By Customer Type 4% 7% Utilities/Power LNG / Industrial 8% Marketer Producer 13% Other 68% Note: Includes firm reserved capacity of…
  9. Raymond James Annual Institutional Investors Conference – Williams Companies, Inc. – slide 9
    Unique opportunity to invest in attractive yield with strong coverage Dividend Yield vs. Coverage of Midstream C-Corps 2.25x Dividend provides significant income 2.00x Dividend Coverage Coverage provides stability 1.75x…
  10. Raymond James Annual Institutional Investors Conference – Williams Companies, Inc. – slide 10
    Excess cash generation enhances shareholder value 2019 2020 Guidance Jackalope & NE 0.54 B JV Net Proceeds1 0.10 B 1.09 B Total Capital Total Distributable Expenditures2 Distributable Capital Cash Flow (Growth +Maintenance)…
  11. Raymond James Annual Institutional Investors Conference – Williams Companies, Inc. – slide 11
    Natural gas: Low emissions and low cost Pounds of CO2 per MMBtu Winter 2019-2020 Primary Residential by Fuel Type Space Heating Fuel in /MMBtu Electricity Natural Gas 50% Natural Gas 9.19 4x Lower CO2 More expensive Emissions than…
  12. Raymond James Annual Institutional Investors Conference – Williams Companies, Inc. – slide 12
    Natural gas demand driven by low prices As PRICE forecasts have FALLEN DEMAND forecasts have INCREASED 8 115 Natural Gas Henry Hub Price Lower-48 Total Demand Forecasts & Forward Curves 2013 Forecasts From Previous Years 2019 From…
  13. Raymond James Annual Institutional Investors Conference – Williams Companies, Inc. – slide 13
    Global natural gas demand growth expected to outpace global oil demand growth 50% 45% 40% Global Gas Expected to 35% Grow 45% Cumulative % Growth 30% 25% 2020-2040 20% 15% 10% 5% 0% 2020 2022 2024 2026 2028…
  14. Raymond James Annual Institutional Investors Conference – Williams Companies, Inc. – slide 14
    Market relies heavily on Northeast to meet demand Lower-48 Natural Gas Production Totaling 92 Bcf/d By Region (Feb. 19 Jan. 20) 35 30 67% 25 20 From gas- Bcf/d directed drilling 15 Flat 10 Flat 5 0 Growth…
  15. Raymond James Annual Institutional Investors Conference – Williams Companies, Inc. – slide 15
    Robust demand growth and well declines drive new U.S. production Lower 48 Natural Gas Production Declines + New Production Required to Meet Robust Demand Growth (1928) 120 100 80 +76 Bcf/d of incremental Bcf/d 60 natural…
  16. Raymond James Annual Institutional Investors Conference – Williams Companies, Inc. – slide 16
    Significant Atlantic-Gulf transmission growth opportunities PROJECT BACKLOG PROJECTS IN EXECUTION 3.2B of Project Target In-service Type of Project Opportunities Gateway 4Q 19 Transporting Natural Gas to Power Generation…
  17. Raymond James Annual Institutional Investors Conference – Williams Companies, Inc. – slide 17
    Existing Deepwater infrastructure positions Williams for future growth Map of Williams Deepwater Assets, Projects & Opportunities MS AL COMPLETED PROJECTS FL LA TX First production of Shell Appomattox/Norphlet Esox & Fieldwood…
  18. Raymond James Annual Institutional Investors Conference – Williams Companies, Inc. – slide 18
    Williams is a unique investment opportunity Disciplined Value & Focused Strategy Execution Stability Sustainable natural gas Operational excellence Sustainable growth demand growth supports Capital project success Predictable…
  19. Raymond James Annual Institutional Investors Conference – Williams Companies, Inc. – slide 19
    NYSE: WMB www.williams.com Appendix
  20. Raymond James Annual Institutional Investors Conference – Williams Companies, Inc. – slide 20
    Significant Transmission growth opportunities PROJECTS IN EXECUTION 3.2B Target Current Markets Project In-service Status* Served Hillabee Ph. 2 2Q 20 Mechanically Complete Power demand in Florida Res/Com & Power demand in Mid-…
  21. Raymond James Annual Institutional Investors Conference – Williams Companies, Inc. – slide 21
    Recent accomplishments Achieved record levels of Adjusted EBITDA, Distributable Cash Flow, gathered Record Performance natural gas volumes and contracted transmission capacity at close of 2019 Environmental Joined The Environmental…
  22. Raymond James Annual Institutional Investors Conference – Williams Companies, Inc. – slide 22
    Our business remains substantially fee-based, with limited volatility 2020 Gross Margin (1) 2% 98% Gross Margin from Fee-based Revenue Gas & Liquids Transportation Deepwater 27% Minimum Volume Commitments (MVCs) & other…
  23. Raymond James Annual Institutional Investors Conference – Williams Companies, Inc. – slide 23
    Consistently delivering on our promises 2019 RESULTS EXCEED GUIDANCE MIDPOINTS In Billions except for percentages, ratios and per share amounts 2019 GUIDANCE Reported Adjusted Diluted EPS1 0.99 1.07 0.71 0.83 0.95 Reported…
  24. Raymond James Annual Institutional Investors Conference – Williams Companies, Inc. – slide 24
    Significant improvement in key financial metrics 2-Year Key Financial Metrics 2017 2018 2019 CAGR Cash Flow Metrics Cash Flow from Operations 3,089 3,293 3,693 9.3% Distributable Cash Flow (DCF) 2,580 2,872 3,297 13.0% Dividend…
  25. Raymond James Annual Institutional Investors Conference – Williams Companies, Inc. – slide 25
    Williams reaffirms 2020 Guidance ranges FINANCIAL METRIC 2020 GUIDANCE Adjusted Net Income1 1.160 - 1.460 Bn Adjusted Diluted EPS1 0.95 - 1.20 Adjusted EBITDA 4.950 - 5.250 Bn Distributable Cash Flow (DCF) 3.050 - 3.450 Bn DCF…
  26. Raymond James Annual Institutional Investors Conference – Williams Companies, Inc. – slide 26
    2020 DCF per share vs. Adjusted EPS Earnings Per Share (EPS) Includes Large Non-cash Charges 3.50 0.10 (1.44) 1.44 0.41 ARO Accretion Amortization (0.03) 3.00 Add Back: (0.27) Noncontrolling 2.67 Interests Difference Add Back:…
  27. Raymond James Annual Institutional Investors Conference – Williams Companies, Inc. – slide 27
    NYSE: WMB www.williams.com Forward Looking Statements Erica B. Operations Supervisor
  28. Raymond James Annual Institutional Investors Conference – Williams Companies, Inc. – slide 28
    Forward-looking statements (contd) Risks related to financing, including restrictions stemming from debt agreements, future changes in credit ratings as determined by nationally recognized credit rating agencies, and the availability…
  29. Raymond James Annual Institutional Investors Conference – Williams Companies, Inc. – slide 29
    NYSE: WMB www.williams.com Non-GAAP Reconciliations Erica B. Operations Supervisor
  30. Raymond James Annual Institutional Investors Conference – Williams Companies, Inc. – slide 30
    Reconciliation of Net Income (Loss) to Modified EBITDA and Non-GAAP Adjusted EBITDA 2015 2016 2017 (Dollars in millions) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year…
  31. Raymond James Annual Institutional Investors Conference – Williams Companies, Inc. – slide 31
    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 3rd Qtr 4th Qtr Year Net income (loss) 270 269 200 (546) 193 214 324 242 (66) 714…
  32. Raymond James Annual Institutional Investors Conference – Williams Companies, Inc. – slide 32
    Reconciliation of Income (Loss) Attributable to The Williams Companies, Inc. to Adjusted Income 2015 2016 2017 (Dollars in millions, except per-share amounts) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year…
  33. Raymond James Annual Institutional Investors Conference – Williams Companies, Inc. – slide 33
    Reconciliation of Income (Loss) Attributable to The Williams Companies, Inc. to Adjusted Income (cont) 2015 2016 2017 (Dollars in millions, except per-share amounts) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr…
  34. Raymond James Annual Institutional Investors Conference – Williams Companies, Inc. – slide 34
    Reconciliation of Income (Loss) Attributable to The Williams Companies, Inc. to Adjusted Income 2018 2019 (Dollars in millions, except per-share amounts) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year Income…
  35. Raymond James Annual Institutional Investors Conference – Williams Companies, Inc. – slide 35
    Reconciliation of Income (Loss) Attributable to The Williams Companies, Inc. to Adjusted Income (cont) 2018 2019 (Dollars in millions, except per-share amounts) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year…
  36. Raymond James Annual Institutional Investors Conference – Williams Companies, Inc. – slide 36
    Reconciliation of GAAP Net Income (Loss) to Non-GAAP Modified EBITDA, Adjusted EBITDA and Distributable cash flow (Dollars in millions, except coverage ratios) 2017 The Williams Companies, Inc. Reconciliation of GAAP Net Income (Loss)…
  37. Raymond James Annual Institutional Investors Conference – Williams Companies, Inc. – slide 37
    Reconciliation of Net Income to Non-GAAP Modified EBITDA, Adjusted EBITDA and Distributable Cash Flow 2018 2019 (Dollars in millions, except coverage ratios) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year…
  38. Raymond James Annual Institutional Investors Conference – Williams Companies, Inc. – slide 38
    Reconciliation of Net Income to Modified EBITDA, Non-GAAP Adjusted EBITDA and Distributable Cash Flow 2020 Guidance (Dollars in millions, except per share amounts and coverage ratio) Low Mid High Net income (loss) 1,200 1,350 1,500…
  39. Raymond James Annual Institutional Investors Conference – Williams Companies, Inc. – slide 39
    Reconciliation of GAAP Net Income (Loss) to Non-GAAP Adjusted Income Available to Common Stockholders 2020 Guidance (Dollars in millions, except per-share amounts) Low Mid High Net income (loss) 1,200 1,350 1,500 Less: Net income…

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