Williams Companies, Inc. (the) · NYSE:WMB
Williams Companies, Inc. (the) — Barclays Capital 2009 CEO Energy/Power Conference
32 slides from Williams Companies, Inc. (the)'s conference presentation, Sep 10, 2009
Slide 1: Barclays Capital 2009 CEO Energy/Power Conference
Barclays Capital 2009 CEO Energy/Power Conference Steve Malcolm Chairman, President & CEO
Slide 2: Forward-looking statements
Forward-looking statements Our reports, filings, and other public announcements may contain or incorporate by reference statements that do not directly or exclusively relate to historical facts. Such statements are "forward-looking statements" within the meaning of the Private Securities Litigation
Slide 3: Oil and gas reserves and resource potential disclaimer
Oil and gas reserves and resource potential disclaimer The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves. We have used certain terms in this presentation such as "probable" reserves and "possible" reserves and "unrisked theoretical resource estima
Slide 4: Williams is a winning long-term investment
Williams is a winning long-term investment Strong natural gas, NGL fundamentals + improving markets Favorably positioned to generate sharply higher earnings Substantial upside to current valuation Attractive risk / reward balance Sustained growth ahead
Slide 5: Natural gas, NGL market outlook strengthens
Natural gas, NGL market outlook strengthens Price outlook for overall natural gas market improves 2010+ Expect natural gas supply/demand balance by 1Q 2010 Today, market factors improve relative position of Rockies production; outlook favorable Basis prices improve vs. NYMEX and other markets Energy
Slide 6: Rapid return to significant value creation
Rapid return to significant value creation Sharply higher profitability at current forward-market prices Approaching return to record-high 2008 performance by 2011 EPS growth significantly outpaces commodity price improvement Notes: Diluted EPS - recurring after mark-to-market adjustment; based on m
Slide 7: Sharply higher earnings
Sharply higher earnings 2009 2010 2011 Gas Pipeline 650 665 685 Midstream 575 875 1025 Exploration & Production 400 625 938 Total recurring adjusted segment profit outlook: 60%+ increase from '09 to '11 +125% +75% +5% Gas Pipeline Midstream Exploration & Production Millions Notes: Based on midpoint
Slide 8: Planned Capital Expenditures
Planned Capital Expenditures Strong cash flows fund growth E&P MS GPL new 2009 1305 760 560 2010 1145 490 515 2011 1700 625 550 175 LIVE CHART Strength in cash flow fuels greater investment in growth Continued discipline to keep spending in line with cash Gas Pipeline Midstream E&P Millions Cash flo
Slide 9: Expect to invest $4B+ in growth 2009-2011
9 Expect to invest $4B+ in growth 2009-2011 2009 Gas Pipeline Midstream Exploration & Production 2011 2010 Planned capital expenditures detail Notes: All numbers reflect midpoint of guidance. (See Slide 18.) Dollars in millions and includes purchases of investments. *Includes $57.5MM of Gas Pipeline
Slide 10: Williams' Piceance a value-generator
Williams' Piceance a value-generator Low costs Benefits of scale Opportunistic Colorado Area Shown Rio Blanco County Garfield County Williams Parachute Lateral Williams PGX Pipeline (NGL) Proposed NGL Pipeline to Overland Pass Pipeline Barcus Creek Williams Colorado Hub Connection Ryan Gulch Trail R
Slide 11: Continuing to execute on our 2009 priorities
Continuing to execute on our 2009 priorities Maintaining strong balance sheet and liquidity Liquidity - $600 million added in March through debt offering Investment-grade credit rating - agencies removed negative watch Driving down costs through rigorous execution and expense discipline Seeing rapid
Slide 12: Key takeaways
Key takeaways Strong natural gas, NGL fundamentals + improving markets Favorably positioned to generate sharply higher earnings Substantial upside to current valuation Attractive risk / reward balance Sustained growth ahead
Slide 13: Appendix
williams. [ Appendix
Slide 14: Commodity price assumptions and financial impacts
The Williams Companies, Inc. / February 1, 2009 / Commodity price assumptions and financial impacts Notes: 1Oil = WTI; Natural Gas = Henry Hub. 2Dollars per gallon. 3Dollars in millions and includes purchases of investments. 4Recurring Segment Profit (shown in millions) and Diluted EPS are adjusted
Slide 15: Economic commodity exposure
Economic commodity exposure 2009 2010 2011 2009 2010 2011 Consolidated Enterprise -90541 -140577 -38790 Consolidated Enterprise 56431 124739 515939 Midstream Fuel & Shrink -290440 -339212 -341262 -165769 -221556 -231552 E&P Unhedged Position 346871 463950 857201 75227 80979 192762 E&P Hedged Positio
Slide 16: Income guidance
Income guidance Dollars in millions, except per-share amounts 2009 Guidance 2010 Guidance 2011 Guidance Reported Segment Profit Before MTM Adjust. Net Interest Expense General Corporate / Other / Rounding Pretax Income Provision for Income Tax Reported Income from Continuing Operations Net Income At
Slide 17: Recurring segment profit guidance
Exploration & Production Midstream Gas Pipeline Gas Marketing 1 Total Recurring Before MTM Adj. 2 MTM Adjustment Total Recurring After MTM Adj. 2 Gas Marketing After MTM Adj. 1 Recurring segment profit guidance Notes: If guidance has changed, previous guidance from 8/6/09 is shown in italics directl
Slide 18: Capital expenditures guidance
Capital expenditures guidance Notes: If guidance has changed, previous guidance from 8/6/09 is shown in italics directly below. Sum of ranges for each business line does not necessarily match total range. Includes purchases of investments. 1 Includes $275MM Piceance Valley bolt-on acquisition. 2Indi
Slide 19: Cash flow and liquidity guidance
Cash flow and liquidity guidance Notes: Sum of individual line items does not necessarily match total range. 1Capital Expenditures include purchases of investments. 2009 numbers are midpoint of guidance range. 2Cash and cash equivalents reduced for international subsidiaries and certain domestic or
Slide 20: Piceance bolt-on: Typical well economics
Piceance bolt-on: Typical well economics Development cost Development cost Drill & Complete ($ in millions) $1.5 Reserves (Bcf) 1.6 Drilling & Completion Cost $1.15 Working Interest 63% Royalty (8/8ths) 18% NRI 51% Illustrative economics Illustrative economics NYMEX Gas Price assumption $6.00 Locati
Slide 21: Non-GAAP Reconciliation Schedules
21 21 Non-GAAP Reconciliation Schedules
Slide 22: Non-GAAP Disclaimer
22 Non-GAAP Disclaimer This presentation includes certain financial measures, recurring earnings and recurring segment profit, that are non-GAAP financial measures as defined under the rules of the Securities and Exchange Commission. Recurring earnings and recurring segment profit exclude items of i
Slide 23: Non-GAAP Reconciliation Schedule
23 Non-GAAP Reconciliation Schedule Non-GAAP Reconciliation
Slide 24: Non-GAAP Reconciliation Schedule - Recurring Segment Profit
24 Non-GAAP Reconciliation Schedule - Recurring Segment Profit Non-GAAP Reconciliation
Slide 25: Non-GAAP Reconciliation Schedule - EPS after MTM adjustment
25 Non-GAAP Reconciliation Schedule - EPS after MTM adjustment Non-GAAP Reconciliation Note: All amounts attributable to Williams. Amounts have been recast to reflect certain Venezuela operations as discontinued operations.
Slide 26: 2009 Forecast Guidance Contribution
26 2009 Forecast Guidance Contribution Income from Continuing Operations: Non-Recurring Items (Pretax) Less Taxes Non-Recurring After Tax Recurring Income from Cont. Ops Recurring EPS Mark-to-Market Adjustment (Pretax) Less Taxes @ 39% Mark-to-Market Adjust. After Tax Inc. from Cont. Ops after MTM A
Slide 27: 2009 Forecast Segment Contribution
2009 Forecast Segment Contribution Reported Segment Profit DD&A Seg. Profit Before DDA General Corporate & Other Net Income Attributable to Noncontrolling Interests Rounding TOTAL 1Segment Profit is prior to MTM adjustments. 2Sum of the ranges for the business units does not match the consolidated t
Slide 28: 2010 - 2011 Forecast Guidance Contribution
28 2010 - 2011 Forecast Guidance Contribution Income from Continuing Operations: Non-Recurring Items (Pretax) Less Taxes Non-Recurring After Tax Recurring Income from Cont. Ops Recurring EPS Mark-to-Market Adjustment (Pretax) Less Taxes @ 39% Mark-to-Market Adjust. After Tax Inc. from Cont. Ops afte
Slide 29: 2010 Forecast Segment Contribution
2010 Forecast Segment Contribution Reported Segment Profit DD&A Seg. Profit Before DDA General Corporate & Other Net Income Attributable to Noncontrolling Interests Rounding TOTAL 1Segment Profit is prior to MTM adjustments. 2Sum of the ranges for the business units does not match the consolidated t
Slide 30: 2011 Forecast Segment Contribution
2011 Forecast Segment Contribution Reported Segment Profit DD&A Seg. Profit Before DDA General Corporate & Other Net Income Attributable to Noncontrolling Interests Rounding TOTAL 1Segment Profit is prior to MTM adjustments. 2Sum of the ranges for the business units does not match the consolidated t
Slide 31: 2009 Forecast Guidance - Reported to Recurring
2009 Forecast Guidance - Reported to Recurring 1See detail of Nonrecurring items on Slide 23 2Includes MTM adjustment - see Slide 17 for guidance A more detailed schedule reconciling income from continuing operations to recurring income from continuing operations after mark-to-market adjustments is
Slide 32: Williams. Ingenuity takes energy.
“xD Williams. | a Ingenuity takes energy.”
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