Williams Companies, Inc. (the) · NYSE:WMB
Williams Companies, Inc. (the) — Merger or Acquisition (June 2015)
26 slides from Williams Companies, Inc. (the)'s merger presentation, Jun 23, 2015
Slide 1: Explanatory Note and Forward-Looking Statements
Explanatory The Forward (including use “ongoing,” uncertainties assumptions, L.P. ETE’s, make combination terminate customers, including stockholders; respective are forward©\looking Additional prior Securities and statement, WMB STATEMENT, IMPORTANT http://www.sec.gov. 214©\981©\0700. the regarding
Slide 2: Credit Suisse Energy Summit, Jamie Welch, CFO, Energy Transfer Equity
ENERGY Credit June Jamie Group Filed Pursuant Subject Commission 23, by Welch Suisse CFO Company: Energy 2015 toTRANSFER Rule File Conference Transfer 425 No.: Theunder 001-04174 Williams EQUITY, Equity, the Securities Companies, L.P. L.P. Act Inc. of 1933
Slide 3: Disclaimer
This DISCLAIMER June L.P. outlook and members While results, Securities as All subject 2capacity areferences any result (SXL), presentation 23, the to performance and statement levels. 2015. of multiple Partnerships and ofPanhandle management expectations new in Exchange Atthis relates information,
Slide 4: Energy Transfer Group Structure
Business 100%(1) (Class 5% ~1% ENERGY Interest, IDRs Transportation LNG Export Ba2 Retail Terminal Crude Pro Publicly Traded Operating (1) 3 LPForma /GP (Regas) Intrastate BB Sunoco, Oil H Interest, Co MLP Owner 60% & Interest, Units) Ba2 Facilities /Midstream Transportation TRANSFER (NYSE: BBLiquid
Slide 5: Significant Scale and Diversification Across the Group
SIGNIFICANT Enterprise Indexed ETE: SUN: Jan-13 ETE Market $4.06 4Source: ETP 206% Dist/unit 82% May-13 cap: Bloomberg unit SXL value SXL: $38 price SUN (LQA): Sep-13 FINANCIAL ~$100 billion 55% performance as ETP: of Jan-14 $1.68 billion Market 06/18/15 31% Dist/unit SCALE May-14 cap: since$28 Janu
Slide 6: ETE's Fundamentals Driven by Strong Performance of Its Subsidiaries
ETE’S FUNDAMENTALS $60.00 $70.00 Jan-13 $20.00 $30.00 $40.00 $50.00 ETE $2.00 Ten $1.75 8.0% $1.50 6.0% $1.31 $1.25 $1.29 $1.00 Q1 2013 5Source: Q2 consecutive unit has 2014 ETE of $1.39 $1.35 2.0% –Mar-13 Q3 PERFORMANCE $69.67 Bloomberg distribution grown price Q4 2015 Annualized $1.44 4.0% Q1 /per
Slide 7: Business Overview and Key Assets
36(1) BUSINESS ETE, in ETP: MLP storage, (“NGL”) and acquisition KEY PFSXL, retail $1,365 Max ~62,300 Owns1Q ASSETS with asubsidiaries Panhandle natural storage; engaged storage ~6,700 with NGL onelarge-cap, pure-play interstate midstream; and rate:LNG transportation marketing intrastate and retail/
Slide 8: A Truly Unique Franchise
Alargest Natural 23rd oil Transporting approved 7US TRULY facility natural largest NGLs 3US UNIQUE in largest G&P gas Fractionating the retail Crude plans nd US MLP gasoline rdin FRANCHISE to Gas the more player Oil US 12% Mbpd than and inOver the the 4th of US NGL US 4.25 largest inUS Bcfd theLNG N
Slide 9: Significant Geographic Footprint Across the Group
18Source: SIGNIFICANT ETP Crude 91,499 16,737 Bakken 411 5,279 6,436 Niobrara 7,034 897 ‘03 Permian 90 Lone ‘15 114 Marcellus Assets Combined1,267 0 ‘03 Production /4,565 ‘03 Haynesville Company Dealer SUN 01,643 57 58 84 ‘15 1Desktop ‘15 SXL Development 2,056 Terminals Dakota DI 2,571 ‘03GEOGRAPHIC
Slide 10: Exceptionally Well Positioned to Capitalize on Energy Exports
EXCEPTIONALLY Asset NGLs Canada Energy ETP Development Eagle Europe India Asia Revolution 9South Assets South Lake base Point America LNG Transfer Nederland well-positioned Charles America Project SXL Natural Projects Marcus Caribbean Asset Assets LNG Gas WELL Overview Hook Mexico toPOSITIONED captu
Slide 11: Transformation and Continued Growth
(1) TRANSFORMATION Segment 3% (1),(2) 13% 47% EBITDA Adjusted Operating ($ 11% 39% 18% 2009: LTM: (2)in24% 10 20% SXL millions) $1,683 $372 $5,772 $984 20% Pro 9% by Propane ETP 12% Segment ETP Operating Crude forma 4%16% 20% 14% LTM40% Midstream ETP Oil 17% 28% pie AND Pipelines &32% Regency chart
Slide 12: Substantial Value Creation Opportunities from Regency Merger
SUBSTANTIAL REALIZE Value Low $160 Most Corporate Commercial 11 execution –of Creation $225 theSystems VALUE synergies synergies million risk OPPORTUNITIES Field FROM annual toare be / Capital incremental REGENCY harvested synergies G&A TOover and MERGER Operational balance likely toofbe Efficiency
Slide 13: Regency Merger: Strategic Highlights
(1) ETP LEADING ATTRACTIVE WORLD COMPLEMENTARY FOOTPRINT SIGNIFICANT OPPORTUNITIES TERM Strong Combines Provides –Significant Additional Substantial In Higher The (3)Active 12Top 2015 addition, merger – 3REGENCY positions pro VALUE long-term regions Source: in additional CLASS strong NGL forma organ
Slide 14: ETP - Regency Merger: Key Takeaways
The ETE –ETP Regency 13Immediate Combined Operations Improved Better merger –isREGENCY becomes benefits stronger potential benefits steps of pro access footprint increase in from the ETP into major forma and from for second furthe MERGER: to an and better growth capital in with high-growth investmen
Slide 15: Benefits from Diversification While Maintaining Fee Based Profile
(1) ETP LTM OtherBENEFITS Adjusted Midstream 10% SXL Stable Non-fee Fee 14 Pro Regency based NGL 17% Forma(2) Natural Fee based 21% Fee EBITDA FROM Services Based Resources G&P based Non-fee Cash segment 9% Fee by DIVERSIFICATION Other Flow Segment Midstream based based included Intrastate Profile(3
Slide 16: Balance of Organic Development and Acquisitions Drives Cash Flow Growth
A BALANCE SXL Current 15 RGPboard ETPapproved OF ORGANIC growthDEVELOPMENT projects of approximately AND ACQUISITIONS $22 billion HAVE DRIVEN AND WILL CONTINUE TO DRIVE STRONG CASH FLOW GROWTH
Slide 17: ETE Distributions Will Continue to Benefit from Strong Growth
(3) ETE Distributions ($ Lake LP GP $13 $11 $7 $35 2007 Cash 2014 ETP RGP 16% 9% SXL 11% LC 74% (1) ~50% (2) remainder distribution subject 16 i$48 |ETP + LNG 14% $48 $574 RGP AA(3) 74% WILL 12% 64% BBB Charles 2008 1Q flow IDRs (~90% $1,124 to2015E distributions $1,210 Assumes $99 16% 2015 BB $261
Slide 18: Key Investment Highlights
KEY2020 Diversified Corporate Stream Unique Preserve Strong Flexibility Well Lake “Game Post 17 Positioned Charles INVESTMENT Changer” level Financial structure +Revenue Cost of is insider aforofbuilt 2016 Performance HIGHLIGHTS Continued around and Beyond strategic Capital ownership and ~25% financ
Slide 19: Appendix
APPENDIX
Slide 20: Pro Forma ETE Capital Structure and Credit Profile
(1) PRO No ($ Cash Revolver Term Senior 7.50% 5.88% 5.50% Sub-total ETE $1,000 Pro Floating Fixed 2015 Total 19 millions) maturities Forma Total FORMA … and =Loan 60% due Notes: $5,523 Term 2018 40% ($1.5bn) $3,337 Cash Debt weighted Capital Interest 10/15/2020 1/15/2024 06/01/2027 B03/31/15 due in
Slide 21: Net IDR Subsidies from ETP
(1) NET IDR ($ Unadjusted ETPmillions) Subsidies /IDR Regency Adjusted 20 SUBSIDIES IDR 2015 Merger Includes IDR Subsidies 2016 Subsidies the Adjustment TO 2017 IDR ($51) ETP 2018 ($111) FROM subsidy($72) 2019 (80)($145) ($137) ($50) ETE (60) ($45) givebacks (60) that (60) ($35) ($140) ETE (60) Suss
Slide 22: Energy Transfer Non-GAAP Reconciliations
ENERGY Energy Reconciliation Twelve ($MM) Net Gain Income Depreciation Non-cash (Gains) Unrealized Impairment Loss Inventory Non-operating Equity Adjusted Interest Amortization Current Transaction-related Maintenance Other, Distributions Distributable 21 income onnet in Transfer Months 2009 tax expe
Slide 23: Energy Transfer Equity Non-GAAP Reconciliations
(1) ENERGY ($MM) 2010 ETP Class RGP Cash Distributable SG&A(2) Management Adjusted GP LP distributions GP LP 2011 dividends H Twelve distributions distributions(1) Includes distributions distributions(1) EBITDA (9) TRANSFER (2) Excludes 22 2012 fees cash (8)Months from 2013 (14) distributions credit
Slide 24: Lake Charles LNG Non-GAAP Reconciliations
LAKE NON-GAAP Lake Year ($MM) Revenues 23 ended Charles CHARLES 31-Dec-14 $ Three 216 RECONCILIATIONS LNG $ Months 54 31-Mar-15 LNG Operating Endedexpenses (17) (4) Selling, general and administrative expenses (5) (1) Other, net 1 -Distributable cash flow attributable to Lake Charles LNG $ 195 $ 49
Slide 25: Sunoco Logistics Partners Non-GAAP Reconciliations
SUNOCO Twelve ($MM) Net Depreciation Impairment Unrealized Proportionate and Adjustments Gain Non-cash Adjusted Interest Provision Amortization Distributions Maintenance Contributions Distributable 24 Income provision onMonths 2009 expense, investments EBITDA compensation accrued inventory for LOGIS
Slide 26: Sunoco Non-GAAP Reconciliations
SUNOCO NON-GAAP Sunoco 12 December Net Depreciation, Interest EBITDA Non-cash (Gain) Unrealized Inventory Adjusted Cash Income Maintanence MACS Earnings Distributable 25 Months Income Interest loss acquisition expense, tax LPattributable 101,422 EBITDA stock fair 31 LP Ended Reconciliation loss on e
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