Williams Companies, Inc. (the) · NYSE:WMB
Williams Companies, Inc. (the) — The Williams Companies — Q4 2016 Earnings Presentation
23 slides from Williams Companies, Inc. (the)'s earnings presentation, Feb 16, 2017
Slide 1: Williams and Williams Partners Fourth Quarter Earnings Call
Williams and Williams Partners Fourth Quarter Earnings Call February 16, 2017
Slide 2: 2016 Review and Recent Accomplishments
2016 Review and Recent Accomplishments > Strong operating and financial performance; Cash Flow from Operations up significantly, exceeded 2016 Adjusted EBITDA guidance > Continued execution on multi-year, multi-billion dollar project backlog > Ongoing transformation of asset portfolio, now almost ex
Slide 3: WPZ 2016 Results: Adjusted EBITDA Exceeded Guidance with Continued Growth
WPZ 2016 Results: Adjusted EBITDA Exceeded Guidance with Continued Growth GAAP Measures: 2016 CFFO up on Barnett contract restructuring and operational performance > 2016 Net Income/(Loss) attributable to WPZ of $431 million vs. $(1,449) million for 2015 > 2016 Segment Modified EBITDA ($MM): Atlanti
Slide 4: WPZ Fourth Quarter 2016 Results: Delivered Continued Growth
WPZ Fourth Quarter 2016 Results: Delivered Continued Growth GAAP Measures: 4Q CFFO up on Barnett contract restructuring, Modified EBITDA growth > 4Q 2016 Net Income/(Loss) attributable to WPZ of $145 million vs. $(1,644) million for 4Q 2015 > WPZ 4Q 2016 Segment Modified EBITDA ($MM): Atlantic Gulf
Slide 5: Continued Execution Against Natural Gas Focused Strategy
Continued Execution Against Natural Gas Focused Strategy Recent Developments > Transco – Atlantic Sunrise: Received FERC Certificate on ~1.7 Bcf/d fully-contracted expansion project designed to bring Pennsylvania gas to markets along Transco as far south as Alabama > Transco – Gulf Trace in service:
Slide 6: Marcellus-for-Permian Transactions Deliver Value and Enhance Natural Gas Focused Strategy
Marcellus-for-Permian Transactions Deliver Value and Enhance Natural Gas Focused Strategy > Transactions expected to be immediately accretive to Adjusted EBITDA, DCF and free cash flow > Increased ownership in growing Marcellus gathering position – Williams Partners will acquire additional ~34% inte
Slide 7: Financial Repositioning for Long-term Sustainable Growth
Financial Repositioning for Long-term Sustainable Growth Satisfied Equity • Expect no external equity financing to fund current business plan Financing Needs • Removes market risk and shifts focus to business performance • Increased coverage contributes to growth funding and further de- Strengthened
Slide 8: WPZ Focus on High-quality Fee-based Revenue Drives Steady, Predictable EBITDA Performance
WPZ Focus on High-quality Fee-based Revenue Drives Steady, Predictable EBITDA Performance Actions support cash flow stability > Capital program focused on Transco and other fee-based revenue – ~68% of 2017 growth capital for regulated pipelines – Remainder focused on other fee-based revenue > Declin
Slide 9: Attractive EBITDA Performance vs. Peers; Value Discount vs. Peers
Attractive EBITDA Performance vs. Peers; Value Discount vs. Peers Valuation Considerations WPZ Steady EBITDA Growth vs. WPZ Peers (1) Indexed Quarterly EBITDA (2) • High-quality fee-based revenue, 135 drives peer-leading stability and WPZ growth in WPZ Adjusted EBITDA 110 • Fully contracted, fee-bas
Slide 10: Natural Gas Focused Strategy, Advantaged Assets Position Williams for Continued Growth
Natural Gas Focused Strategy, Advantaged Assets Position Williams for Continued Growth > Continued natural gas demand growth driven by LNG, Compelling Industrial, Power, Residential/Commercial, Mexican Export Market Fundamentals > Abundant low cost natural gas supplies readily available > Transco, n
Slide 11: Appendix
Appendix
Slide 12: WPZ and WMB Key Guidance Metrics
WPZ and WMB Key Guidance Metrics EBITDA 2017 $4.6 billion a DCF 2017 $2.8 billion a Distribution 2017 Distribution $2.40 per L.P. unit & Growth Rate Expected Growth Rate 5% to 7% annual growth WPZ Cash Coverage 2017 Cash Distribution ~1.2x a Ratio Coverage Ratio Growth 2017 Total WPZ $2.1 to $2.8 bi
Slide 13: WMB Benefits Significantly from WPZ Cash Flows
WMB Benefits Significantly from WPZ Cash Flows WMB holds 74% interest in coverage retained at WPZ 13 Williams and Williams Partners 4Q 2016 Earnings Release | February 16, 2016 © 2017 The Williams Companies, Inc. All rights reserved.
Slide 14: Forward-looking Statements
Forward-looking Statements
Slide 15: Forward Looking Statements
Forward Looking Statements > The reports, filings, and other public announcements of The Williams Companies, Inc. (Williams) and Williams Partners L.P. (WPZ) may contain or incorporate by reference statements that do not directly or exclusively relate to historical facts. Such statements are “forwar
Slide 16: Forward Looking Statements (cont'd)
Forward Looking Statements (cont’d) – The impact of existing and future laws, regulations, the regulatory environment, environmental liabilities, and litigation, as well as our ability to obtain permits and achieve favorable rate proceeding outcomes; – Williams’ costs and funding obligations for def
Slide 17: Non-GAAP Reconciliations
Non-GAAP Reconciliations
Slide 18: Non-GAAP Disclaimer
Non-GAAP Reconciliations Non-GAAP Disclaimer > This presentation includes certain financial measures – adjusted EBITDA, adjusted income (“earnings”), adjusted earnings per share, cash available for dividends, dividend coverage ratio, distributable cash flow and cash distribution coverage ratio – tha
Slide 19: WPZ 2017 Guidance Reconciliation of GAAP Net Income to Modified EBITDA
WPZ 2017 Guidance Reconciliation of GAAP Net Income to Modified EBITDA and Non-GAAP Adjusted EBITDA and Distributable Cash Flow 19 Williams and Williams Partners 4Q 2016 Earnings Release | February 16, 2016 © 2017 The Williams Companies, Inc. All rights reserved.
Slide 20: Reconciliation of Non-GAAP Adjusted EBITDA and Distributable Cash Flow to GAAP Net Income
WPZ Non-GAAP Reconciliations Reconciliation of Non-GAAP Adjusted EBITDA and Distributable Cash Flow to GAAP Net Income 20 Williams and Williams Partners 4Q 2016 Earnings Release | February 16, 2016 © 2017 The Williams Companies, Inc. All rights reserved.
Slide 21: Reconciliation of Non-GAAP Adjusted EBITDA and Distributable Cash Flow to GAAP Net Income (cont'd)
WPZ Non-GAAP Reconciliations Reconciliation of Non-GAAP Adjusted EBITDA and Distributable Cash Flow to GAAP Net Income (cont’d) 21 Williams and Williams Partners 4Q 2016 Earnings Release | February 16, 2016 © 2017 The Williams Companies, Inc. All rights reserved.
Slide 22: Reconciliation of Modified EBITDA to Non-GAAP Adjusted EBITDA
WPZ Non-GAAP Reconciliations Reconciliation of Modified EBITDA to Non-GAAP Adjusted EBITDA 22 Williams and Williams Partners 4Q 2016 Earnings Release | February 16, 2016 © 2017 The Williams Companies, Inc. All rights reserved.
Slide 23: Adjustments to Modified EBITDA by Segment
WPZ Non-GAAP Reconciliations Adjustments to Modified EBITDA by Segment 23 Williams and Williams Partners 4Q 2016 Earnings Release | February 16, 2016 © 2017 The Williams Companies, Inc. All rights reserved.
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