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Asia Pacific Virtual Investor Meetings – Williams Companies, Inc.

Williams Companies, Inc. · Aug 19, 2020 · 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. Asia Pacific Virtual Investor Meetings – Williams Companies, Inc. – slide 1
    NYSE: WMB www.williams.com Asia-Pacific Virtual Investor Meetings Alan Armstrong, President & Chief Executive Officer Micheal Dunn, Chief Operating Officer John Chandler, Chief Financial Officer August 19-20, 2020
  2. Asia Pacific Virtual Investor Meetings – Williams Companies, Inc. – slide 2
    Sustainable strategy driven by long-term trend of natural gas demand growth OUR MISSION Authentic Committed to being the leader in providing infrastructure that safely delivers natural gas products to reliably fuel the clean…
  3. Asia Pacific Virtual Investor Meetings – Williams Companies, Inc. – slide 3
    Large-scale, irreplaceable natural gas infrastructure Wamsutter Handling Southwest Serving 30% Wyoming 600 Williams Asset Map Marcellus Piceance DJ Basin + Utica nations customers Anadarko / natural gas Mid-Con…
  4. Asia Pacific Virtual Investor Meetings – Williams Companies, Inc. – slide 4
    Compelling financial performance Return on Debt-to- Adjusted EBITDA Adjusted EPS Invested Capital1 Adjusted EBITDA2 (16 19) (16 19) (16 19) 2019 vs. 2016 13% 18% 12% 4.39x GROWTH CAGR Down from 5.26x Note: This slide…
  5. Asia Pacific Virtual Investor Meetings – Williams Companies, Inc. – slide 5
    Attractive 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) 20.6x 20.8x 7.4% 5.9% 12.2x…
  6. Asia Pacific Virtual Investor Meetings – Williams Companies, Inc. – slide 6
    NYSE: WMB www.williams.com Natural gas demand drives business performance
  7. Asia Pacific Virtual Investor Meetings – Williams Companies, Inc. – slide 7
    Natural gas fulfilling 40% of global energy demand growth through 2040 Total Global Energy Consumption By Fuel 15-40 300 Global Energy +42 QBtu Or 20% Demand (QBtu) 250 +68 QBtu 792 Or 53% 621 200 -21 QBtu QBtu Or -13%…
  8. Asia Pacific Virtual Investor Meetings – Williams Companies, Inc. – slide 8
    Renewables remain a small part of the energy mix 2019 Total Global End-Use Power Generation only Energy Consumption by Fuel 2019 Global Power Generation by Fuel Type accounts for 20% of total end-use energy Coal consumption 12%…
  9. Asia Pacific Virtual Investor Meetings – Williams Companies, Inc. – slide 9
    Call on natural gas production growth expected to occur in three key supply areas U.S. Natural Gas Production Forecaster Comparison for Key Supply Areas (20 30) 45 Legend: Highest Forecast 40 3.5 Bcf/d Min/Max range Average…
  10. Asia Pacific Virtual Investor Meetings – Williams Companies, Inc. – slide 10
    Gas transmission pipelines ideally positioned for U.S. domestic and international demand Northwest Pipeline Cove Point Legend Transco 3rd Party LNG Export Terminal Population per sq. mile 50 or less 50-100 Elba Island…
  11. Asia Pacific Virtual Investor Meetings – Williams Companies, Inc. – slide 11
    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…
  12. Asia Pacific Virtual Investor Meetings – Williams Companies, Inc. – slide 12
    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…
  13. Asia Pacific Virtual Investor Meetings – Williams Companies, Inc. – slide 13
    De-levering balance sheet through growth and debt reduction Adjusted EBITDA (US MM) Net Debt (US MM) Net Debt-to-Adjusted EBITDA (x) 23,332 5.26 x 5,060 4.31 x 4,436 21,816 2016 LTM 2016 6/30/2020 2016 6/30/2020 6/30/2020…
  14. Asia Pacific Virtual Investor Meetings – Williams Companies, Inc. – slide 14
    Williams self-funding unique compared to utility peers DIVIDENDS AND INVESTING CASH FLOWS % OF OPERATING CASH FLOW 2016 THROUGH 6/30/2020 (%) WMB VS. TOP UTILITIES 200% DIVIDENDS & 150% INVESTMENTS IN EXCESS OF CFFO 100%…
  15. Asia Pacific Virtual Investor Meetings – Williams Companies, Inc. – slide 15
    NYSE: WMB www.williams.com Near-term fundamentals remain strong
  16. Asia Pacific Virtual Investor Meetings – Williams Companies, Inc. – slide 16
    Natural gas demand stands strong growing more than 2% in 2Q 2020 POWER GEN LNG & MEXICAN INDUSTRIAL RES / COM EXPORTS Bcf/d Bcf/d Bcf/d Bcf/d 35 35 35 35 30 +3% 30 30 30 25 25 25 25 -0.6% 20 20 20 20 +5% 15 15 15 15 +11%…
  17. Asia Pacific Virtual Investor Meetings – Williams Companies, Inc. – slide 17
    Growth across Williams assets continues through external volatility LOWER-48 NATURAL GAS WILLIAMS NATURAL GAS WELLHEAD PRODUCTION GATHERING VOLUMES Bcf/d Bcf/d 100 14 +3.6% -0.3% 98 12 96 10 94 8 2Q 19 2Q 20 2Q 19 2Q…
  18. Asia Pacific Virtual Investor Meetings – Williams Companies, Inc. – slide 18
    Williams positioned to benefit as market calls on most economic gas supplies Remaining Risked Natural Gas Reserves Held By Major Producers Tcfe Northeast 300 70% Remaining 250 reserves Under 3 200 150 100 50 0 Henry Hub…
  19. Asia Pacific Virtual Investor Meetings – Williams Companies, Inc. – slide 19
    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 +2.8 Bcf/d +2.8…
  20. Asia Pacific Virtual Investor Meetings – Williams Companies, Inc. – slide 20
    NYSE: WMB www.williams.com Unique competitive advantages provide stability and growth
  21. Asia Pacific Virtual Investor Meetings – Williams Companies, Inc. – slide 21
    Substantially fee-based business with limited volatility (1) 2020 Gross Margin 2% 98% Gross Margin from Fee-based Revenue Gas & Liquids Transportation Deepwater 27% Minimum Volume Commitments (MVCs) & other protected (2)…
  22. Asia Pacific Virtual Investor Meetings – Williams Companies, Inc. – slide 22
    Stable and diversified EBITDA 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 Wyoming / Wamsutter 2% oil-directed…
  23. Asia Pacific Virtual Investor Meetings – Williams Companies, Inc. – slide 23
    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…
  24. Asia Pacific Virtual Investor Meetings – Williams Companies, Inc. – slide 24
    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%…
  25. Asia Pacific Virtual Investor Meetings – Williams Companies, Inc. – slide 25
    Recent accomplishments Sustainability Published 2019 Sustainability Report on July 27, providing a comprehensive review of the Report companys environmental, social and governance programs and initiatives Solar Power Taking steps to…
  26. Asia Pacific Virtual Investor Meetings – Williams Companies, Inc. – slide 26
    Our strategy provides significant solutions to a clean energy economy +41% 39% 47% reduction in decrease in decline in reported reportable spills employee Williams 2019 methane to soil and water recordable Sustainability emissions…
  27. Asia Pacific Virtual Investor Meetings – Williams Companies, Inc. – slide 27
    Executing significant portfolio of gas transmission growth projects Williams U.S. Asset Map, Highlighting Natural Gas Transmission Pipeline Expansion Projects Leidy South WILLIAMS GAS TRANSMISION 582 MMcf/d PIPELINE PROJECTS IN…
  28. Asia Pacific Virtual Investor Meetings – Williams Companies, Inc. – slide 28
    Pursuing deep and diverse set of transmission growth opportunities PROJECTS IN DEVELOPMENT Williams Asset Map, Highlighting Northwest, Transco, & Gulfstream Natural Gas Pipelines Type of of Capex Capacity Estimated Project Projects…
  29. Asia Pacific Virtual Investor Meetings – Williams Companies, Inc. – slide 29
    Transco positioned to meet natural gas demand in Mid-Atlantic and Southeast Williams U.S. Asset Map, Highlighting Transco Natural Gas Pipeline, G&P assets in Appalachia Basin & Third-party Operating Coal Plants Appalachian MD…
  30. Asia Pacific Virtual Investor Meetings – Williams Companies, Inc. – slide 30
    Unique Deepwater opportunities available due to incumbent capabilities and position Recent Deepwater Project Milestones Western Gulf Eastern Gulf Discovery Whale Ballymore Taggart Positive FIDs Under existing dedication Under…
  31. Asia Pacific Virtual Investor Meetings – Williams Companies, Inc. – slide 31
    2Q 2020 results exceed expectations despite external volatility Strong Financial Performance 2Q 2Q % 2Q YTD 2Q YTD % Across Key Metrics 2020 2019 Change 2020 2019 Change Cash Flow from Operations 1,143 1,069 7% 1,930 1,844 5%…
  32. Asia Pacific Virtual Investor Meetings – Williams Companies, Inc. – slide 32
    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 -…
  33. Asia Pacific Virtual Investor Meetings – Williams Companies, Inc. – slide 33
    Forward Looking Statements WILLIAMS 2020 The Williams Companies, Inc. All rights reserved. NYSE: WMB I Asia-Pacific Virtual Investor Meetings 08/19-20/2020 I www.williams.com 33
  34. Asia Pacific Virtual Investor Meetings – Williams Companies, Inc. – slide 34
    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…
  35. Asia Pacific Virtual Investor Meetings – Williams Companies, Inc. – slide 35
    Non-GAAP Reconciliations WILLIAMS 2020 The Williams Companies, Inc. All rights reserved. NYSE: WMB I Asia-Pacific Virtual Investor Meetings 08/19-20/2020 I www.williams.com 37
  36. Asia Pacific Virtual Investor Meetings – Williams Companies, Inc. – slide 36
    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…
  37. Asia Pacific Virtual Investor Meetings – Williams Companies, Inc. – slide 37
    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…
  38. Asia Pacific Virtual Investor Meetings – Williams Companies, Inc. – slide 38
    Reconciliation of Income (Loss) from Continuing Operations Attributable to The Williams Companies, Inc. to Adjusted Income 2018 - 2Q 2020 2018 2019 2020 (Dollars in millions, except per-share amounts) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr…
  39. Asia Pacific Virtual Investor Meetings – Williams Companies, Inc. – slide 39
    Reconciliation of Income (Loss) from Continuing Operations Attributable to The Williams Companies, Inc. to Adjusted Income 2018 - 2Q 2020 continued 2018 2019 2020 (Dollars in millions, except per-share amounts) 1st Qtr 2nd Qtr 3rd Qtr…
  40. Asia Pacific Virtual Investor Meetings – Williams Companies, Inc. – slide 40
    Reconciliation of Net Income to Non-GAAP Modified EBITDA, Adjusted EBITDA and Distributable Cash Flow 2018 2019 2020 (Dollars in millions, except coverage ratios) YTD YTD 1st Qtr 2nd Qtr YTD The Williams Companies, Inc. Net income…
  41. Asia Pacific Virtual Investor Meetings – Williams Companies, Inc. – slide 41
    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…
  42. Asia Pacific Virtual Investor Meetings – Williams Companies, Inc. – slide 42
    Reconciliation of Net Income (Loss) to Modified EBITDA and Non-GAAP Adjusted EBITDA 2018 - 2Q 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 2nd Qtr Year Net…
  43. Asia Pacific Virtual Investor Meetings – Williams Companies, Inc. – slide 43
    Reconciliation of Northeast G&P Adjusted EBITDA to Adjusted EBITDA excluding non-operated equity method investments 2016 2017 2018 2019 2020 2nd Qtr (Dollars in millions) Year Year Year Year YTD Adjusted EBITDA 886 959 1,090…
  44. Asia Pacific Virtual Investor Meetings – Williams Companies, Inc. – slide 44
    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…
  45. Asia Pacific Virtual Investor Meetings – Williams Companies, Inc. – slide 45
    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)…
  46. Asia Pacific Virtual Investor Meetings – Williams Companies, Inc. – slide 46
    Calculation of return on invested capital (US Millions) Increase in Adjusted EBITDA 2016-2019 2019 Adjusted EBITDA 5,015 2016 Adjusted EBITDA 4,436 Less EBITDA of assets sold (336) 2016 EBITDA of retained assets 4,100 Increase…

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