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Wells Fargo Midstream & Utility Symposium – Williams Companies, Inc.

Williams Companies, Inc. · Dec 9, 2020 · 52 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. Wells Fargo Midstream & Utility Symposium – Williams Companies, Inc. – slide 1
    NYSE: WMB www.williams.com Wells Fargo Midstream & Utility Symposium John Chandler, SVP and Chief Financial Officer December 9, 2020
  2. Wells Fargo Midstream & Utility Symposium – Williams Companies, Inc. – slide 2
    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…
  3. Wells Fargo Midstream & Utility Symposium – Williams Companies, Inc. – slide 3
    Succeeding through current volatile environment Adjusted Earnings Per Share (/Shr) DCF (MM) & Dividend Per Share (/Shr) 17% 0.99 0.95 - 1.25 2,872 3,297 3,050 - 3,450 Healthy CAGR TO 0.79 1.52 1.60 DCF SUPPORTING 1.36 MIDPOINT…
  4. Wells Fargo Midstream & Utility Symposium – Williams Companies, Inc. – slide 4
    De-levering balance sheet through growth and debt reduction ADJUSTED EBITDA NET DEBT NET DEBT-TO-ADJUSTED (US MM) (US MM) EBITDA (X) 5,053 5.26 x 23,332 4.42 x 4,436 22,313 2016 LTM 9/30/2020 2016 9/30/2020 2016…
  5. Wells Fargo Midstream & Utility Symposium – Williams Companies, Inc. – slide 5
    Williams self-funding unique compared to utility peers DIVIDENDS AND INVESTING CASH FLOWS % OF OPERATING CASH FLOW 2016 THROUGH 9/30/2020 (%) WMB VS. TOP UTILITIES 200% DIVIDENDS & 150% INVESTMENTS IN EXCESS OF CFFO 100%…
  6. Wells Fargo Midstream & Utility Symposium – Williams Companies, Inc. – slide 6
    Attractive valuation with low-volatility cash flows and strong balance sheet Current(1) Three Year Average DIVIDEND YIELD 3-YEAR AVERAGE VS. CURRENT (%) EV / NTM EBITDA 3-YEAR AVERAGE VS. CURRENT (X) 7.6% 20.4x 21.2x 6.3% 12.4x…
  7. Wells Fargo Midstream & Utility Symposium – Williams Companies, Inc. – slide 7
    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…
  8. Wells Fargo Midstream & Utility Symposium – Williams Companies, Inc. – slide 8
    NYSE: WMB www.williams.com Natural gas demand drives business performance
  9. Wells Fargo Midstream & Utility Symposium – Williams Companies, Inc. – slide 9
    Natural gas fulfilling 36% of global energy demand growth through 2040 Total Global Energy Consumption By Fuel 15-40 300 Global Energy +40 QBtu Or 20% Demand (QBtu) 250 +54 QBtu 771 Or 43% 619 200 -24 QBtu QBtu Or -15%…
  10. Wells Fargo Midstream & Utility Symposium – Williams Companies, Inc. – slide 10
    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%…
  11. Wells Fargo Midstream & Utility Symposium – Williams Companies, Inc. – slide 11
    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) Legend: 45 Highest Forecast 8.6 Bcf/d 40 Min/Max range Average…
  12. Wells Fargo Midstream & Utility Symposium – Williams Companies, Inc. – slide 12
    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…
  13. Wells Fargo Midstream & Utility Symposium – Williams Companies, Inc. – slide 13
    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 Sept. 16…
  14. Wells Fargo Midstream & Utility Symposium – Williams Companies, Inc. – slide 14
    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…
  15. Wells Fargo Midstream & Utility Symposium – Williams Companies, Inc. – slide 15
    NYSE: WMB www.williams.com Near-term fundamentals remain strong
  16. Wells Fargo Midstream & Utility Symposium – Williams Companies, Inc. – slide 16
    Natural gas demand resilient in 2020 3Q YTD demand averaged 91.5 bcf/d in 2020 compared to 91.8 Bcf/d in 2019 POWER GEN LNG & MEXICAN INDUSTRIAL RES / COM EXPORTS Bcf/d Bcf/d Bcf/d Bcf/d 35 35 35 35 +3.4% 30 30 30 30 25 25…
  17. Wells Fargo Midstream & Utility Symposium – Williams Companies, Inc. – slide 17
    Growth across Williams assets outpaces market rate LOWER-48 + GOM NATURAL WILLIAMS NATURAL GAS GAS WELLHEAD PRODUCTION GATHERING VOLUMES Bcf/d Bcf/d 110 14 -0.1% +3.1% 100 12 90 80 10 70 60 8 3Q 19 3Q 20 3Q 19 3Q 20…
  18. Wells Fargo Midstream & Utility Symposium – Williams Companies, Inc. – slide 18
    Natural gas forward curves Pre-COVID-19 impact vs. now 2021 Henry Hub up 24% since March 1st 4.00 Calendar 2021 Mar. 1st Dec. 1st % Change 3.50 Curve Curve 2.28 2.83 24% 3.00 Dec. 1, 2020 /MMBtu Forward Curve 2.50 Mar.…
  19. Wells Fargo Midstream & Utility Symposium – Williams Companies, Inc. – slide 19
    Williams positioned to benefit as market calls on most economic gas supplies Remaining Risked Natural Gas Reserves Held By Major Producers Northeast Tcfe 250 75% Remaining reserves 200 Under 3 150 100 50 0 Henry Hub…
  20. Wells Fargo Midstream & Utility Symposium – Williams Companies, Inc. – slide 20
    NYSE: WMB www.williams.com Unique competitive advantages provide stability and growth
  21. Wells Fargo Midstream & Utility Symposium – 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. Wells Fargo Midstream & Utility Symposium – 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. Wells Fargo Midstream & Utility Symposium – Williams Companies, Inc. – slide 23
    Northeast G&P segment hits record volumes Natural Gas Natural Gas Processing NGL Production Gathering Volumes Plant Inlet Volumes Volumes 9.4 1.4 114 Bcf/d Bcf/d Mbbls/d up 8.4% up 17.2% up 23.9% v. 3Q19 v. 3Q19 v. 3Q19…
  24. Wells Fargo Midstream & Utility Symposium – Williams Companies, Inc. – slide 24
    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 75% of 0.48 0.52 8 economic gas-directed reserves 1 0.41 0.40 0.39…
  25. Wells Fargo Midstream & Utility Symposium – Williams Companies, Inc. – slide 25
    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%…
  26. Wells Fargo Midstream & Utility Symposium – Williams Companies, Inc. – slide 26
    Recent accomplishments Record Volumes Achieved record Northeast natural gas gathering, natural gas processing plant inlet and NGL production volumes in 3Q 2020, despite a volatile market environment Commenced partial in-service of…
  27. Wells Fargo Midstream & Utility Symposium – 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. Wells Fargo Midstream & Utility Symposium – 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. Wells Fargo Midstream & Utility Symposium – 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. Wells Fargo Midstream & Utility Symposium – Williams Companies, Inc. – slide 30
    Unique Deepwater opportunities available due to incumbent position Recent Deepwater Project Milestones Western Gulf Eastern Gulf Discovery Whale Ballymore Taggart Positive FIDs Under existing dedication Under existing Positive FID…
  31. Wells Fargo Midstream & Utility Symposium – Williams Companies, Inc. – slide 31
    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 -…
  32. Wells Fargo Midstream & Utility Symposium – Williams Companies, Inc. – slide 32
    NYSE: WMB www.williams.com Sustainability is synonymous with strong fundamentals
  33. Wells Fargo Midstream & Utility Symposium – Williams Companies, Inc. – slide 33
    Leadership and transparency in sustainability Board Strategy & Oversight Management Leadership Transparency Clear delineation of Board and Committee and Disclosure responsibilities Sustainability steering Governance and…
  34. Wells Fargo Midstream & Utility Symposium – Williams Companies, Inc. – slide 34
    Committed to a clean energy future Williams recognizes the risks of climate change and our strategy provides a practical and immediate path to reduce industry emissions and grow a clean energy economy POTENTIAL % REDUCTION* Reduce…
  35. Wells Fargo Midstream & Utility Symposium – Williams Companies, Inc. – slide 35
    Our strategy provides a practical and immediate path to reduce emissions Natural gas is an integral part of the low-carbon future, particularly when it comes to displacing higher-emission fuels such as coal and heating oil 60%…
  36. Wells Fargo Midstream & Utility Symposium – Williams Companies, Inc. – slide 36
    Environmental considerations are applied to our decision-making process Williams takes care to reduce emissions, safeguard biodiversity and manage natural resources responsibly Established 20 goal to 60% 10% 60% reduction in…
  37. Wells Fargo Midstream & Utility Symposium – Williams Companies, Inc. – slide 37
    Strong governance practices Single class of common stock: 1 share = 1 vote All Directors are elected to one-year terms All Directors, other than CEO, are independent Board Chair is an independent Director Policies in place to…
  38. Wells Fargo Midstream & Utility Symposium – Williams Companies, Inc. – slide 38
    Strengthening relationships with key stakeholders We operate in a manner that protects our employees and contractors and provides value for shareholders while safeguarding the public Female or ethnically diverse employees…
  39. Wells Fargo Midstream & Utility Symposium – Williams Companies, Inc. – slide 39
    Driving a safety-first culture Safeguarding our people and neighbors is ingrained in our culture and fundamental to everything we do 47% 1.2 Employee Total Recordable Incident Rate Per 200,000 Work Hours decline in 1.09…
  40. Wells Fargo Midstream & Utility Symposium – Williams Companies, Inc. – slide 40
    Forward Looking Statements WILLIAMS 2020 The Williams Companies, Inc. All rights reserved. NYSE: WMB I Wells Fargo Midstream & Utility Symposium I December 9, 2020 I www.williams.com 40
  41. Wells Fargo Midstream & Utility Symposium – Williams Companies, Inc. – slide 41
    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…
  42. Wells Fargo Midstream & Utility Symposium – Williams Companies, Inc. – slide 42
    Non-GAAP Reconciliations WILLIAMS 2020 The Williams Companies, Inc. All rights reserved. NYSE: WMB I Wells Fargo Midstream & Utility Symposium I December 9, 2020 I www.williams.com 44
  43. Wells Fargo Midstream & Utility Symposium – Williams Companies, Inc. – slide 43
    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…
  44. Wells Fargo Midstream & Utility Symposium – Williams Companies, Inc. – slide 44
    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…
  45. Wells Fargo Midstream & Utility Symposium – Williams Companies, Inc. – slide 45
    Reconciliation of Income (Loss) from Continuing Operations Attributable to The Williams Companies, Inc. to Adjusted Income 2018 - 3Q 2020 2018 2019 2020 (Dollars in millions, except per-share amounts) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr…
  46. Wells Fargo Midstream & Utility Symposium – Williams Companies, Inc. – slide 46
    Reconciliation of Income (Loss) from Continuing Operations Attributable to The Williams Companies, Inc. to Adjusted Income 2018 - 3Q 2020 continued 2018 2019 2020 (Dollars in millions, except per-share amounts) 1st Qtr 2nd Qtr 3rd Qtr…
  47. Wells Fargo Midstream & Utility Symposium – Williams Companies, Inc. – slide 47
    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 3rd Qtr YTD Net income (loss) 193 714 (570)…
  48. Wells Fargo Midstream & Utility Symposium – Williams Companies, Inc. – slide 48
    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…
  49. Wells Fargo Midstream & Utility Symposium – Williams Companies, Inc. – slide 49
    Reconciliation of Net Income (Loss) to Modified EBITDA and Non-GAAP Adjusted EBITDA 2018 - 3Q 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 3rd Qtr…
  50. Wells Fargo Midstream & Utility Symposium – Williams Companies, Inc. – slide 50
    Reconciliation of Northeast G&P Adjusted EBITDA to Adjusted EBITDA excluding non-operated equity method investments 2016 2017 2018 2019 2020 3rd Qtr (Dollars in millions) Year Year Year Year YTD Adjusted EBITDA 886 959 1,090…
  51. Wells Fargo Midstream & Utility Symposium – Williams Companies, Inc. – slide 51
    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…
  52. Wells Fargo Midstream & Utility Symposium – Williams Companies, Inc. – slide 52
    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…

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