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JP Morgan Energy Conference – Williams Companies, Inc.

Williams Companies, Inc. · Jun 17, 2020 · 34 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. JP Morgan Energy Conference – Williams Companies, Inc. – slide 1
    NYSE: WMB www.williams.com J.P. Morgan 2020 Energy, Power & Renewables Conference Alan Armstrong, President & CEO June 17, 2020
  2. JP Morgan Energy Conference – Williams Companies, Inc. – slide 2
    COVID-19 Response & Business Continuity Teams created and empowered COO leading continuity and contingency planning across enterprise New teams formed to integrate front-line operations with functional expertise Framework Business…
  3. JP Morgan Energy Conference – Williams Companies, Inc. – slide 3
    Williams is a unique investment opportunity Focused Strategy Safely delivering natural gas products to reliably fuel the clean energy economy Disciplined Execution Value & Stability IMPROVING SAFETY PERFORMANCE STABLE…
  4. JP Morgan Energy Conference – Williams Companies, Inc. – slide 4
    Positioned to succeed through volatile environment Debt-to-Adjusted EBITDA (x) DCF (MM) & Dividend Per Share (/Shr) 75% 4.80x 2,872 3,297 3,050 - 3,450 Healthy TO ACHIEVING 1.52 1.60 DCF SUPPORTING 1.36 4.2X LEVERAGE 4.39x…
  5. JP Morgan Energy Conference – Williams Companies, Inc. – slide 5
    Large-scale, irreplaceable natural gas infrastructure Handling Serving Williams Asset Map 30% 600 nations customers natural gas Serving Transco Nations largest and fastest 15 growing major key supply pipeline areas…
  6. JP Morgan Energy Conference – Williams Companies, Inc. – slide 6
    Business performance tied to contracted transmission capacity and gathering volume Williams Quarterly Adj. EBITDA vs. Contracted Transmission Capacity and Gathering Volumes Jackalope Sale Canada Sale FCA Sale Apr. 19 Geismar Sale…
  7. JP Morgan Energy Conference – Williams Companies, Inc. – slide 7
    Scale and operational excellence increase operating margin Operating Margin Ratio 70% Creating efficiency & advantage with focused scale 67% 64% Driving more revenue to 62% the bottom line 60% Continuing to drive…
  8. JP Morgan Energy Conference – Williams Companies, Inc. – slide 8
    Natural gas demand growth remains strong over the long-term GLOBAL NATURAL GAS & OIL CUMULATIVE DEMAND GROWTH % OVER 2019 45% Gas To Grow Nearly 3x % Growth Over 2019 30% Faster Than Oil 19 - 40 15% 0% 2025 2030…
  9. JP Morgan Energy Conference – Williams Companies, Inc. – slide 9
    Natural gas remains largest piece of power generation mix, while coal continues to decline U.S. Net Power Generation Market Share (17 1Q 20) 50% NATURAL GAS COAL NUCLEAR WIND & SOLAR HYDRO 40% +8% % Market Share 30% -13%…
  10. JP Morgan Energy Conference – Williams Companies, Inc. – slide 10
    Market expected to rely heavily on Marcellus, Utica & Haynesville production to meet demand Natural Gas Production Growth Forecast by Major Supply Growth Areas CUMULATIVE GROWTH BASED ON DECEMBER EXIT RATES 19 21 +3.2 Bcf/d…
  11. JP Morgan Energy Conference – Williams Companies, Inc. – slide 11
    Williams positioned to benefit as market calls on most economic gas supplies Northeast G&P Gathered Volumes and Adjusted EBITDA per Mcf 2 Northeast contains 70% of 0.48 0.52 8 economic gas-directed reserves 1 0.41 0.40 0.39…
  12. JP Morgan Energy Conference – Williams Companies, Inc. – slide 12
    Executing significant portfolio of gas transmission growth projects PROJECTS IN EXECUTION 2.2B Target Current Markets Project In-service Status* Served Hillabee Ph. 2 2Q 20 Commenced Service 5/1/20 Power demand in Florida Res/Com…
  13. JP Morgan Energy Conference – Williams Companies, Inc. – slide 13
    Pursuing deep and diverse set of transmission growth opportunities PROJECTS IN DEVELOPMENT Williams Asset Map, Highlighting Transco & Gulfstream Natural Gas Pipelines Type of of Capex Capacity Estimated Project Projects (Bln) (Bcf/d)…
  14. JP Morgan Energy Conference – Williams Companies, Inc. – slide 14
    Unique Deepwater opportunities available due to incumbent position Recent Deepwater Project Milestones Western Gulf Eastern Gulf Discovery Whale Ballymore Taggart Anchor Under existing dedication Under existing Positive FID June…
  15. JP Morgan Energy Conference – Williams Companies, Inc. – slide 15
    Compelling valuation with low-volatility cash flows and strong balance sheet Three Year Average Current(1) DIVIDEND YIELD 3-YEAR AVERAGE VS. CURRENT (%) EV / NTM EBITDA 3-YEAR AVERAGE VS. CURRENT (X) 8.8% 20.7x 20.9x 5.6% 4.5%…
  16. JP Morgan Energy Conference – Williams Companies, Inc. – slide 16
    Appendix WILLIAMS 2020 The Williams Companies, Inc. All rights reserved. NYSE: WMB I J.P. Morgan 2020 Energy, Power & Renewables Conference 6/17/2020 I www.williams.com 16
  17. JP Morgan Energy Conference – Williams Companies, Inc. – slide 17
    Recent accomplishments Solar Power Taking steps to develop solar energy installations at certain facilities to provide electricity to our existing natural gas transmission and processing operations; Expected to be Initiative placed…
  18. JP Morgan Energy Conference – Williams Companies, Inc. – slide 18
    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 per share 2.50 -…
  19. JP Morgan Energy Conference – Williams Companies, Inc. – slide 19
    Gas transmission business built on high credit-quality, demand-pull customer base Firm Contracted Capacity By Credit Rating Profile Of Williams 2019 Gas Customer Type1 Transmission Revenue From Top 100 Customers2 1% 4% 8% 9% 7%…
  20. JP Morgan Energy Conference – Williams Companies, Inc. – slide 20
    Stable and diversified EBITDA, limiting exposure to any one basin 5 B 2019 ADJ. EBITDA Other Onshore Oil Basin1 2% Only 7% EBITDA from Eagle Ford 5% Marketing & NGL Services2 2% G&P serving on-shore Blue Racer & Aux Sable 2% SW…
  21. JP Morgan Energy Conference – Williams Companies, Inc. – slide 21
    Williams positioned to benefit as market calls on most economic gas supplies Remaining Risked Natural Gas Reserves Held By Major Producers Tcfe Northeast 250 70% Remaining reserves 200 Under 3 150 100 50 0 Henry Hub <…
  22. JP Morgan Energy Conference – Williams Companies, Inc. – slide 22
    Forward Looking Statements WILLIAMS 2020 The Williams Companies, Inc. All rights reserved. NYSE: WMB I J.P. Morgan 2020 Energy, Power & Renewables Conference 6/17/2020 I www.williams.com 22
  23. JP Morgan Energy Conference – Williams Companies, Inc. – slide 23
    Forward-looking statements (contd) The ability of the members of the Organization of Petroleum Exporting Countries and other oil exporting nations to agree to and maintain oil price and production controls and the impact on domestic…
  24. JP Morgan Energy Conference – Williams Companies, Inc. – slide 24
    Non-GAAP Reconciliations WILLIAMS 2020 The Williams Companies, Inc. All rights reserved. NYSE: WMB I J.P. Morgan 2020 Energy, Power & Renewables Conference 6/17/2020 I www.williams.com 26
  25. JP Morgan Energy Conference – Williams Companies, Inc. – slide 25
    Reconciliation of Income (Loss) Attributable to The Williams Companies, Inc. to Adjusted Income 2015 - 2017 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…
  26. JP Morgan Energy Conference – Williams Companies, Inc. – slide 26
    Reconciliation of Income (Loss) Attributable to The Williams Companies, Inc. to Adjusted Income 2015 2017 continued 2015 2016 2017 (Dollars in millions, except per-share amounts) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr…
  27. JP Morgan Energy Conference – Williams Companies, Inc. – slide 27
    Reconciliation of Income (Loss) from Continuing Operations Attributable to The Williams Companies, Inc. to Adjusted Income 2018 - 1Q 2020 2018 2019 2020 (Dollars in millions, except per-share amounts) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr…
  28. JP Morgan Energy Conference – Williams Companies, Inc. – slide 28
    Reconciliation of Income (Loss) from Continuing Operations Attributable to The Williams Companies, Inc. to Adjusted Income 2018 - 1Q 2020 continued 2018 2019 2020 (Dollars in millions, except per-share amounts) 1st Qtr 2nd Qtr 3rd Qtr…
  29. JP Morgan Energy Conference – Williams Companies, Inc. – slide 29
    Reconciliation of Net Income to Non-GAAP Modified EBITDA, Adjusted EBITDA and Distributable Cash Flow 2018 2019 2020 (Dollars in millions, except coverage ratios) Year Year 1st Qtr The Williams Companies, Inc. Net income (loss) 193…
  30. JP Morgan Energy Conference – Williams Companies, Inc. – slide 30
    Reconciliation of Net Income (Loss) to Modified EBITDA and Non-GAAP Adjusted EBITDA 2015 - 2017 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…
  31. JP Morgan Energy Conference – Williams Companies, Inc. – slide 31
    Reconciliation of Net Income (Loss) to Modified EBITDA and Non-GAAP Adjusted EBITDA 2018 - 1Q 2020 2018 2019 2020 (Dollars in millions) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr Net income (loss)…
  32. JP Morgan Energy Conference – Williams Companies, Inc. – slide 32
    Reconciliation of Northeast G&P Adjusted EBITDA to Adjusted EBITDA excluding non-operated equity method investments 2016 2017 2018 2019 2020 (Dollars in millions) Year Year Year Year 1st Qtr Adjusted EBITDA 886 959 1,090 1,341…
  33. JP Morgan Energy Conference – Williams Companies, Inc. – slide 33
    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) 304 454 604…
  34. JP Morgan Energy Conference – Williams Companies, Inc. – slide 34
    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) 304 454 604 Less: Net income (loss)…

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