Williams Companies, Inc. (the) · NYSE:WMB
Williams Companies, Inc. (the) — The Williams Companies — Q1 2005 Earnings Presentation
76 slides from Williams Companies, Inc. (the)'s earnings presentation, May 5, 2005
Slide 1: Williams 2005 1st Quarter Earnings Release
Williams 2005 1st Quarter Earnings Release May 5, 2005
Slide 2: Forward Looking Statements
Forward Looking Statements Our reports, filings, and other public announcements might 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 Litigatio
Slide 3: Oil & Gas Reserves Disclaimer
Oil & Gas Reserves Disclaimer The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves. We use certain terms in this presentation, such as “probable and possible” reserves that the SEC’s guidelines strictly prohibit us from including in filings with the
Slide 4: Overview
Overview Steve Malcolm, Chairman, President & CEO
Slide 5: Headlines: Williams delivers strong 1Q performance
Overview Headlines Williams delivers strong 1Q performance Midstream benefits again from above average margins, strong volumes Exploration & Production boosts year-over- year production Gas Pipeline posts another solid quarter Power continues to deliver positive cash flow Strength in conso
Slide 6: Headlines: Williams seizes rich opportunities for growth
Overview Headlines Williams seizes rich opportunities for growth Picking up the pace to grow Piceance production Expanding pipelines to meet market demand Pursuing deep-water infrastructure opportunities Contracting existing power capacity Business overview set for May 12 Power Gas P
Slide 7: Headlines: Williams Partners L.P. files registration statement
Overview Headlines Williams Partners L.P. files registration statement $270 million expected initial enterprise value 100% equity capitalization at IPO 3Q expected completion Williams ownership – 2% General Partner Interest – 61% Limited Partner Interest $85 million cash to Williams expe
Slide 8: Williams Partners L.P. MLP Foundation Assets
Williams Partners L.P. MLP Foundation Assets Discovery 40% interest Integrated wellhead-to-market midstream services for Gulf of Mexico producers Offshore gathering and transportation system with 600 MMcf/d capacity Onshore gas processing and fractionation facilities Carbonate Trend Pipe
Slide 9: MLP Benefits to Williams
Williams Partners L.P. MLP Benefits to Williams Gain access to new, lower cost source of equity capital Receive premium valuation for assets Retain control of monetized assets Redeploy IPO proceeds Create Economic Value Added® Deliver WMB shareholders increased equity value 9 / Williams
Slide 10: 2005 Financial Results
2005 Financial Results Don Chappel, CFO
Slide 11: Consolidated Financial Results
Consolidated Financial Results 1st Quarter Dollars in millions (except per share amounts) 2005 2004 Income from Continuing Operations $202 $0 Income (Loss) from Disc. Operations (1) 10 Net Income $201 $10 Net Income/Share $0.34 $0.02 Recurring Inc. from Cont. Ops. /Share $0.33 $0.01 Recurring Inc. f
Slide 12: Recurring Income from Cont. Operations
Consolidated Recurring Income from Cont. Operations 1st Quarter Dollars in millions 2005 2004 Income from Continuing Operations $202 $0 Gains on Sale of Assets (8) - Income Related to Prior Periods (6) - Other - Net 7 7 Tax effect of adjustments 3 (3) Recurring Inc. from Cont. Ops. Avail. to Com. $1
Slide 13: Recurring Income from Cont. Ops. After Mark-to-Market Adjustments
Consolidated Recurring Income from Cont. Ops. After Mark-to-Market Adjustments 1st Quarter Dollars in millions, except for per-share amounts 2005 2004 Recurring income from Cont. Ops. avail. to Common $ 198 $ 4 Recurring Diluted Earnings per Common Share $ 0.33 $ 0.01 Mark-to-Market (MTM) adjustment
Slide 14: Net Income Components
Consolidated Net Income Components 1st Quarter Dollars in millions (except per share amounts) 2005 2004 Segment Profit $510 $268 Net Interest Expense (164) (239) Other Income/(Expense) - Net (14) (17) Income from Cont. Ops. Before Tax 332 12 Provision for Income Tax 130 12 Income/(Loss) from Continu
Slide 15: First Quarter Segment Profit
Consolidated First Quarter Segment Profit Reported Recurring Dollars in millions 1Q05 1Q04 1Q05 1Q04 Exploration & Production $104 $52 $96 $52 Midstream Gas & Liquids 129 110 129 110 Gas Pipeline 167 147 154 147 Power 114 (32) 125 (32) Other (4) (9) (4) (2) Segment Profit $510 $268 $500 $275 MTM Adj
Slide 16: Major Changes in Quarter Recurring Segment Profit
Consolidated Major Changes in Quarter Recurring Segment Profit After Mark-to-Market Adjustments Dollars in millions Recurring Segment Profit after MTM Adj. 1Q04 $387 Exploration & Production 44 - Higher production volumes +$16 million - Higher net realized price +$36 million Midstream 19 - Increased
Slide 17: Cash Information
Consolidated Cash Information Dollars in millions 1Q05 Beginning Unrestricted $930 Cash flow from Continuing Operations 304 Proceeds from Issuing Common* 288 Sale of WilTel Note 54 Contract Termination Payment 88 Debt Retirements (216) Capital Expenditures/Investments (223) Dividends (29) Other-Net
Slide 18: Debt Balance
Consolidated Debt Balance Dollars in millions Avg. Cost Debt Balance @ 12/31/04* $7,962 7.4% Scheduled Debt Retirements & Amortization (216) Capitalized Lease 4 Debt Balance @ 3/31/05* $7,750 7.4% Fixed Rate Debt @ 3/31/05 $7,094 7.7% Variable Rate Debt @ 3/31/05 $656 5.0% * Debt is long-term debt d
Slide 19: Business Unit Results
Business Unit Results Willianis. —
Slide 20: Exploration & Production
Exploration & Production Ralph Hill, Senior Vice President
Slide 21: Exploration & Production Segment Profit
Exploration & Production Segment Profit Dollars in millions 1st Quarter 2005 2004 Segment Profit $104 $52 Nonrecurring: Gain on sale of assets (8) - Recurring Segment Profit $96 $52 1Q04 to 1Q05 financial highlights include: Volume increase of 22% Net realized price increase of 31% Recurring
Slide 22: Strong Domestic Production Growth
Exploration & Production Strong Domestic Production Growth 600 Net MMcfed 500 400 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr 2004 2005 22 / Williams 2005 First Quarter Earnings Release / Thursday, May 5, 2005 © 2005 The Williams Companies, Inc.
Slide 23: 2005 Accomplishments
Exploration & Production 2005 Accomplishments 1Q05 production up 22%, 113 MMcfed since 1Q04 Recurring Segment Profit + Depreciation Piceance production up 59% 160 since 1Q04 140 Piceance higher activity, 120 10 new H&P rigs contracted 100 Additional Piceance 80 10-acre spacing approved 60
Slide 24: E&P 2005-2007 Guidance
Exploration & Production 2005-2007 Guidance Dollars in millions 2005 2006 2007 Segment profit $400 - 475 $480 - 555 $550 - 675 Annual DD&A 235 - 265 280 - 320 350 - 400 220 - 250 250 - 290 300 - 350 Segment Profit + DD&A $635 - 740 $760 - 875 $900 - 1,075 Capital spending $530 - 605 $725 - 825 $725
Slide 25: Exploration & Production Key Points
Exploration & Production Key Points Achieving strong volume growth Continuing to expand development drilling activity – Piceance is primary growth driver Long history of high drilling success, low finding costs Short time cycle investments, fast cash returns Maintaining top quartile cost a
Slide 26: Midstream
Midstream Alan Armstrong, Senior Vice President
Slide 27: Midstream Segment Profit
Midstream Segment Profit 1st Quarter Dollars in millions 2005 2004 Segment Profit $129 $110 Nonrecurring: - - Recurring Segment Profit $129 $110 1Q04 to 1Q05 financial highlights include: $19 million increase in NGL margins $7 million increase in NGL volume $6 million due to better performance
Slide 28: 1st Quarter and 2005 Accomplishments
Midstream 1st Quarter and 2005 Accomplishments Three key operating $ MM Recurring Segment Profit + Depreciation* statistics up: 200 Gathering volumes up 3% 180 Processing volumes up 3% 160 NGL sales volumes up 22% 140 Two new Letters of Intent 120 executed for Deepwater Acquired ENI’s in
Slide 29: Midstream 2005-2007 Guidance
Midstream 2005-2007 Guidance Dollars in millions 2005 2006 2007 Segment Profit $370-450 $400-500 $400-520 $350 - $430 Annual DD&A 180-190 185-195 190-200 Segment Profit + DDA $550-640 $585-695 $590-720 Capital Spending $120-140 $110-130 $100-130 Note: - Guidance does not include any new major deepwa
Slide 30: Midstream Key Points
Midstream Key Points Raising 2005 guidance, again Strong demand for services is yielding Higher key operating statistics High return organic growth opportunities Continued strong free cash flows Deepwater expansion continues One-two punch Premier assets in growth basins Attracting
Slide 31: Gas Pipeline
Gas Pipeline Phil Wright, Senior Vice President
Slide 32: Gas Pipeline Segment Profit
Gas Pipeline Segment Profit 1st Quarter Dollars in millions 2005 2004 Segment Profit $167 $147 Nonrecurring: Expense reduction related to prior period* (13) - Recurring Segment Profit $154 $147 1Q04 to 1Q05 financial highlights include: $5 million - Gulfstream completion fee $3 million - Increas
Slide 33: 1st Quarter and 2005 Accomplishments
Gas Pipeline 1st Quarter and 2005 Accomplishments 240 Transco sets three-day delivery record in January 220 Gulfstream Phase II placed into service 200 FERC approves the Central 180 New Jersey project $ MM Leidy to Long Island 160 project - agreement executed with KeySpan 140 Transco and N
Slide 34: Gas Pipeline 2005-2007 Guidance
Gas Pipeline 2005-2007 Guidance Dollars in millions 2005 2006 2007 (2) (2) Segment Profit (1) $555 - 585 $500 - 565 $565 - 635 545 - 585 515 - 565 575 - 635 Annual DD&A 280 - 290 290 - 300 300 - 310 Segment Profit + DDA $835 - 875 $790 - 865 $865 - 945 825 - 875 805 - 865 875 - 945 Capital Spending
Slide 35: 2005-2007 Capital Spending Detail
Gas Pipeline 2005-2007 Capital Spending Detail Dollars in millions 2005 2006 2007 Normal Maintenance/ Compliance $305 - 335 $190 - 245 $180 - 235 NWP 26” Replacement 48 276 2 Expansion 20 - 30 10 - 20 70 - 90 Total $370 - 420 $475 - 550 $250 - 325 Note: - Amounts include AFUDC - Sum of ranges may no
Slide 36: Gas Pipeline Key Points
Gas Pipeline Key Points Another strong quarter, operationally and financially Strong free cash flow generator Achieving substantial progress in operational compliance and reliability projects Continued success in… Customer satisfaction Expansion development System operations 36 / Willi
Slide 37: Power
Power Bill Hobbs, Senior Vice President
Slide 38: Power Segment Profit
Power Segment Profit 1st Quarter Dollars in millions 2005 2004 Gross Margin $140 ($2) SG&A (16) (16) Op. & Other Inc / (Expense) (10) (14) Segment Profit $114 $(32) Nonrecurring: Expense related to prior period and other 11 - Recurring Segment Profit 125 (32) MTM Adjustments (108) 112 Recurring Segm
Slide 39: Power Segment Profit to Cash Flow
Power Segment Profit to Cash Flow Dollars in millions Power & Natural Gas Other Total Gross Margin $140 $140 SG&A & Other Inc/(Exp) (26) (26) Segment Profit $114 $0 $114 MTM Adjustments: Reverse Forward Unrealized MTM (Gains) (221) (221) Add Realized Gains from MTM previously recognized 113 113 Segm
Slide 40: Power 2005-2007 Guidance
Power 2005-2007 Guidance Dollars in millions 2005 2006 2007 2/23/05 Segment Profit Guidance ($250) – (150) ($200) – (50) ($100) – 50 1st Quarter 2005 Impact: MTM Earnings 221 - - Est. Forward Impact of MTM (32) (54) (92) Total 1st Quarter 2005 Impact 189 (54) (92) Change in Segment Profit Guidance 2
Slide 41: Power Key Points
Power Key Points Positive CFFO in a shoulder quarter CFFO expected to remain positive Risk reducing contracts term sales are occurring Expect to see improvements Market liquidity Spark spreads Williams credit Active E&P drilling program will increase natural gas sales Factors impac
Slide 42: 2005-2007 Consolidated Outlook
2005-2007 Consolidated Outlook Don Chappel, CFO
Slide 43: 2005 Forecast Guidance
Consolidated 2005 Forecast Guidance Dollars in millions, except per-share amounts May 5 Guidance Feb 23 Guidance Segment profit before MTM adjustment $1,275 - 1,575 $1,050 - 1,350 Net Interest Expense (630) - (665) (625) - (660) Other (Primarily General Corp. Costs) (80) - (110) (90) - (125) Pretax
Slide 44: 2005-2007 Segment Profit
Consolidated 2005-2007 Segment Profit Dollars in millions 2005 2006 2007 Exploration & Production $400 - 475 $480 - 555 $550 - 675 450 - 525 500 - 625 Midstream 370 - 450 400 - 500 400 - 520 350 - 430 Gas Pipeline 555 - 585 500 - 565 565 - 635 545 515 575 Power (50) - 50 (250) - (100) (200) - (50) (
Slide 45: 2005 - 2007 Outlook
Consolidated 2005 - 2007 Outlook Dollars in millions 2005 2006 2007 Segment Profit Reported Seg. Profit $1,275 - 1,575 $1,175 - 1,475 $1,325 - 1,750 1,050 - 1,350 1,200 - 1,500 1,375 - 1,800 MTM Adjustment 100 300 250 300 250 150 After MTM Adjust. 1,375 - 1,675 1,475 - 1,775 1,575 - 2,000 1,350 - 1,
Slide 46: 2005 - 2007 Capital Expenditures
Consolidated 2005 - 2007 Capital Expenditures Dollars in millions 2005 2006 2007 Exploration & Prod. $530 - 605 $725 - 825 $725 - 875 500 - 575 525 - 625 525 – 675 Midstream 120 - 140 110 - 130 100 - 130 Gas Pipeline 370 - 420 475 - 550 250 - 325 Power - - - Other/Corporate 10 - 30 10 - 30 10 - 30 T
Slide 47: 2005-2007 Maintenance vs. Growth Capital
Consolidated 2005-2007 Maintenance vs. Growth Capital Dollars in millions 2005 2006 2007 Explor. & Prod. Growth $340 - 395 $515 - 595 $495 - 625 Maintenance 190 - 210 210 - 230 230 - 250 Total 530 - 605 725 - 825 725 - 875 Midstream Growth 60 - 75 60 - 75 50 - 70 Maintenance 60 - 65 50 - 55 50 - 60
Slide 48: Steady Improvement
Consolidated Steady Improvement . . . Cash Flow 1 Debt / Cap 2 $1,600 to 2,000 $1,450 $1,900 80% to $1,300 $1,750 1,800 to $1,600 1,600 $1,473 70% 1,400 $ Millions 62% 1,200 60% 58% 57% 1,000 to to 59% 58% 54% to 800 56% 50% 600 400 40% 200 - 30% 2004 2005 2006 2007 1 Cash Flow from Continuing Opera
Slide 49: Guidance Trends
Consolidated Guidance Trends 2,200 $1,575 to $2,000 2,000 $1,475 to $1,375 $1,775 1,800 to $1,675 rofit Segment P * 1,600 TM Adjus tments After M $ Millions 1,400 Cap Ex $1,263 $1,350 1,200 (recurring) to $1,550 $1,100 1,000 $1,025 to to $1,300 $1,225 800 $790 600 400 200 - 2004 2005 2006 2007 * Inc
Slide 50: Financial Strategy/Key Points
Consolidated Financial Strategy/Key Points Drive/enable sustainable growth in EVA®/shareholder value Maintain a cash/liquidity cushion of $1.0 billion plus Continue to steadily improve credit ratios/ratings; ultimately achieving investment grade ratios Reduce risk in Power segment Increase
Slide 51: Summary
Summary Steve Malcolm Willianis. —
Slide 52: Key Points
Summary Key Points Hitting on all cylinders Another strong quarter Raising earnings guidance Seizing rich opportunities to grow shareholder value Williams Partners L.P. files registration statement Business overview on May 12 52 / Williams 2005 First Quarter Earnings Release / Thursday,
Slide 53: Q&A
Q&A Willianis. —
Slide 54: Non-GAAP Reconciliations
Non-GAAP Reconciliations Willianis. —
Slide 55: Non-GAAP Disclaimer
Non-GAAP Disclaimer This presentation includes certain financial measures, EBITDA, recurring earnings, free cash flow and recurring segment profit, that are non-GAAP financial measures as defined under the rules of the Securities and Exchange Commission. EBITDA represents the sum of net income (loss
Slide 56: Non-GAAP Reconciliation Schedule
Non-GAAP Reconciliation Non-GAAP Reconciliation Schedule (Dollars in millions, except for per-share amounts) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr Income (loss) from continuing operations available to common stockholders $0.0 ($18.5) $16.2 $95.5 $93.2 $202.2 Income (loss) from continuing oper
Slide 57: Non-GAAP Reconciliation Schedule
Non-GAAP Reconciliation Non-GAAP Reconciliation Schedule Reconciliation of Segment Profit (Loss) to Recurring Segment Profit (Loss) (UNAUDITED) 2004 2005 (Dollars in millions) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr Segment profit (loss): Power* $ (32.0) $ 43.8 $ 109.3 $ (44.4) $ 76.7 $ 114.1 G
Slide 58: Non-GAAP Reconciliation Schedule
Non-GAAP Reconciliation Non-GAAP Reconciliation Schedule Adjustment to remove MTM impact Dollars in millions except for per share amounts 2005 2004 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year Recurring income from cont. ops available to common shareholders $ 198 $ 198 $ 4 $ 54 $ 136 $ 68 $ 261 Recurring dilut
Slide 59: EBITDA Reconciliation
Non-GAAP Reconciliation EBITDA Reconciliation Dollars in millions 1Q05 Net Income $201 Loss from Disc. Operations 1 Net Interest Expense 164 DD&A 178 Provision for Income Taxes 130 EBITDA $674 59 / Williams 2005 First Quarter Earnings Release / Thursday, May 5, 2005 © 2005 The Williams Companies, In
Slide 60: 1Q 2005 Segment Contribution
Non-GAAP Reconciliation 1Q 2005 Segment Contribution Dollars in millions Gas Pipeline E&P Midstream Power Corp/Other Total Segment Profit (Loss) $167 $104 $129 $114 ($4) $510 DD&A 67 59 46 4 3 179 Segment Profit before DDA $234 $163 $175 $118 ($1) $689 General Corporate Expense (28) Investing Income
Slide 61: 2005 Forecast EBITDA Reconciliation
Consolidated 2005 Forecast EBITDA Reconciliation Dollars in millions May 5 Guidance Feb 23 Guidance Net Income $320 - 480 $175 - 325 Income (Loss) from Disc. Ops. 10 - 0 5 - (5) Net Interest 630 - 665 625 - 660 DD&A 700 - 775 700 - 775 Provision for Income Taxes 235 - 320 155 - 245 Other/Rounding (2
Slide 62: 2005 Forecast Segment Contribution
Non-GAAP Reconciliation 2005 Forecast Segment Contribution Corp/ Dollars in millions E&P Midstream Gas Pipeline Power * Other Total * Segment Profit (Loss) 400 - 475 370 - 450 555 - 585 (50) - 50 0 - 15 1,275 - 1,575 350 - 430 545 (250) - (150) 5 - 10 1,050 - 1,350 DD&A 235 - 265 180 - 190 280 - 290
Slide 63: 2005 Forecast Guidance Reconciliation
Non-GAAP Reconciliation 2005 Forecast Guidance Reconciliation Dollars in millions, except per-share amounts May 5 Guidance Feb 23 Guidance Net Income $320 - 480 $175 - 325 Less: Discontinued Operations 10 - 0 5 - (5) Income from Continuing Ops $330 - 480 $180 - 320 Non-Recurring Items (Pretax) (7) -
Slide 64: Appendix
Appendix Willianis. —
Slide 65: EPS Metrics
Consolidated EPS Metrics 2005 1Q 2Q 3Q 4Q Total EPS $0.34 - - - Recurring EPS 0.33 - - - Rec. EPS after MTM Adj. 0.22 - - - Average Shares (MM) 599 - - - 2004 1Q 2Q 3Q 4Q Total EPS $0.02 ($0.03) $0.19 $0.13 $0.31 Recurring EPS 0.01 0.10 0.26 0.12 0.49 Rec. EPS after MTM Adj. 0.14 0.03 0.09 0.09 0.35
Slide 66: 2005 Interest Expense Guidance
Consolidated 2005 Interest Expense Guidance Dollars in millions 2005 Interest on Long-Term Debt $560 - 580 Amortization Discount/Premium and 25 other Debt Expense Credit Facilities: 30 - 40 (incl. Commitment Fees plus LC Usage) Interest on other Liabilities 20 - 30 Interest Expense $635 - 675 Less:
Slide 67: Drivers
Consolidated Drivers Dollars in millions Segment Profit CFFO Low High Low High 1 1 2004 1,381 1,381 1,473 1,473 Interest Savings - - 230 260 Gas Pipes - Lower Grays Harbor - - (30) (10) Midstream - Lower NGL Margins (100) - (100) - - Deepwater Increase - 50 30 50 2 Changes in Power (130) (30) 50 150
Slide 68: 2005 Effective Tax Rate
Consolidated 2005 Effective Tax Rate Dollars in millions Combined Continuing Ops. Disc. Ops. First Quarter 2005 Federal $115 35% $116 35% $(1) 35% State 14 4% 14 4% * 3% Foreign (5) (2%) (5) (2%) - 0% Other 5 5% 5 2% - 0% Tax Provision $129 39% $130 39% ($1) 38% * Rounding – less than .1 million ben
Slide 69: 1Q 2005 Net Realized Price Calculation
Exploration & Production 1Q 2005 Net Realized Price Calculation 1Q05 Unhedged Hedge Market Price: NYMEX including collars $6.20 - $6.30 $4.59 Basis Differential (0.50 - 1.00) (0.49) Net basin market price $5.30 - $5.70 $4.10 Fuel & Shrinkage/Gathering/ (0.80 - 1.00) (0.80 - 1.00) Transportation Net
Slide 70: 2005 Price Modeling
Exploration & Production 2005 Price Modeling 2005 Unhedged Hedge Market Price: NYMEX $6.00 - $6.60 $4.44 Basis Differential (0.50 - 0.70) (0.47) Net basin market price $5.50 - $5.90 $3.97 Fuel & Shrinkage/Gathering/ (0.80 - 1.00) (0.80 - 1.00) Transportation Net Price $4.70 - $4.90 $2.97 - $3.17 Yea
Slide 71: Margins Above Average
Midstream Margins Above Average Domestic NGL Actual Average Net Margin and Volume by Quarter Margin Equity Volume by Quarter (Cents / Gallon) (MM Gallons) 25.00 450 400 20.00 350 300 15.00 250 200 10.00 150 5.00 100 50 0.00 0 Q1'02 Q2'02 Q3'02 Q4'02 Q1'03 Q2'03 Q3'03 Q4'03 Q1'04 Q2'04 Q3'04 Q4'04 Q1
Slide 72: Fee-Based Bedrock of Earnings
Midstream Fee-Based Bedrock of Earnings Net Revenues $1,100 $1,000 $900 21% 20% 30% 23% $800 $700 $ 000's $600 $500 79% 80% 77% 70% $400 $300 $200 $100 $0 2004 2005 2006 2007 Fee Commodity Note: Total revenues less cost of goods sold. Reflects 5 year average (Jan ’00 – Dec ’04) margins in 2006-2007
Slide 73: Strong Free Cash Flow
Midstream Strong Free Cash Flow Dollars in millions Seg Profit & DDA 800 Discretionary 700 Expansion 600 2004 Margin Uplift 500 Base 400 Capital Spending Historic 300 Expansion 200 Discretionary Expansion 100 Maintenance 0 Well Connects 2003 2004 2005 2006 2007 Capital Seg Capital Seg Capital Seg Ca
Slide 74: Power Cash Flow Variance Analysis
Power Cash Flow Variance Analysis Undiscounted dollars in millions Combined Pow er Portfolio Actual 1Q05 v. Forecast 1Q05 1Q05 A 1Q05 F Tolling Demand Payment Obligations ($89) ($84) Resale of Tolling 41 40 Full Requirements (2) (1) Long-term Physical Forward Power Sales 22 21 OTC Hedges 34 33 Estim
Slide 75: Enterprise Risk Management
Enterprise Risk Management As of 3/31/05 Corp./ 12/31/04 Dollars in millions E&P Midstream Power Other Total Total Margins & Ad. Assur. $70 $1 $87 - $158 $134 Prepayments - 4 27 - 31 40 Subtotal $70 $5 $114 $- $189 $174 Letters of Credit 496 104 257 90 947 855 Total as of 3/31/05 $566 $109 $371 $90
Slide 76: Enterprise Risk Management
Enterprise Risk Management Dollars in millions Margin volatility (99% confidence interval) - Incremental liquidity requirement 3/31/05 12/30/04 – 30 days ($124) ($106) – 180 days ($328) ($268) – 360 days ($341) ($353) Assumption: The margin numbers above consist of only the forward marginable posi
The Williams Companies — Q1 2005 Earnings Presentation on 6ix