Williams Companies, Inc. (the) · NYSE:WMB

Williams Companies, Inc. (the) — Q1 2024 Earnings Presentation

48 slides from Williams Companies, Inc. (the)'s earnings presentation, May 7, 2024

  1. Slide 1: Williams 1st Quarter 2024 Earnings Call

    Williams 1st Quarter 2024 Earnings Call May 7, 2024 WILLIAMS © 2024 The Williams Companies, Inc. All rights reserved NYSE: WMB I Williams 1st Quarter 2024 Earnings Call I May 7, 2024 I www.williams.com 1

  2. Slide 2: Strong operational, strategic and financial achievement year-to-date

    Strong operational, strategic and financial achievement year-to-date OPERATIONAL EXECUTION FINANCIAL STRENGTH Record contracted Progressed 7 projects Record 1Q Adjusted KEY HIGHLIGHTS transmission capacity of through FERC process EBITDA drives expectations 33.9 Bcf/d year-to-date to top half of 2024

  3. Slide 3: Strong results across key financial metrics

    Strong results across key financial metrics Strong Financial Performance 1Q 2024 1Q 2023 Change Across Key Metrics Adjusted EBITDA $1,934 $1,795 8% Adjusted Earnings per Share $0.59 $0.56 5% Available Funds from Operations $1,507 $1,445 4% Dividend Coverage Ratio (AFFO basis) 2.60x 2.65x (2%) Balanc

  4. Slide 4: Achieved 8% growth 1Q 2024 vs. 1Q 2023

    Achieved 8% growth 1Q 2024 vs. 1Q 2023 Core business performance drivers WMB Adjusted EBITDA ($MM): 1Q 2024 vs. 1Q 2023 Transmission & GOM Higher earnings due to the Gulf Coast Storage and Core Business Performance MountainWest acquisitions, Transco expansions and favorable segment costs; partially

  5. Slide 5: Why Williams?

    WHY WILLIAMS? Williams is a unique investment opportunity Strategy fueled by natural gas Our infrastructure is critical to providing reliable, affordable and clean energy to meet growing demand both domestically and abroad. Shareholder value creation Williams has demonstrated a long history of value

  6. Slide 6: Appendix

    Appendix WILLIAMS © 2024 The Williams Companies, Inc. All rights reserved NYSE: WMB I Williams 1st Quarter 2024 Earnings Call I May 7, 2024 I www.williams.com 6

  7. Slide 7: Achieved 12% growth 1Q 2024 vs. 4Q 2023

    Achieved 12% growth 1Q 2024 vs. 4Q 2023 Core business performance drivers WMB Adjusted EBITDA ($MM): 1Q 2024 vs. 4Q 2023 Transmission & GOM Increased earnings due to the Gulf Coast Storage Core Business Performance acquisition, favorable segment costs, Transco $2,100 expansions and increased short-t

  8. Slide 8: Diversification of Adjusted EBITDA fuels stability and growth

    Diversification of Adjusted EBITDA fuels stability and growth ~$6.8B 2023 Adj. EBITDA NGL Services1 1% ~1% from NGL Services Marketing Services 4% ~4% from Gas and NGL Marketing Services E&P 4% ~4% from E&P Joint Ventures Other Onshore Oil Basin2 2% Eagle Ford 5% ~7% from G&P SW Wyoming / Wamsutter

  9. Slide 9: Williams generates steady growth in volumes and Adjusted EBITDA

    Williams generates steady growth in volumes and Adjusted EBITDA Quarterly Growth: Williams Base Business Adjusted EBITDA1, Contracted Transmission Capacity and Gathering Volume vs. Crude Oil and Natural Gas Commodity Prices 250 Capacity + Indexed to 100 200 Volume Adj. EBITDA 150 Oil Price 100 Gas P

  10. Slide 10: Recent accomplishments

    Recent accomplishments Closed acquisition of 6 storage facilities with total capacity of 115 Bcf across Louisiana and Gulf Coast Mississippi, strategically located to serve growing LNG and power generation demand; portfolio of Storage Acquisition assets acquired for $1.95 billion, representing a ~10

  11. Slide 11: Anticipating continued base business strength in 2024 and 2025

    Anticipating continued base business strength in 2024 and 2025 2023 actuals 203 2024 guidance 2025 guidance $6.950B $7.4B Adjusted EBITDA $6.779B $6.8B $7.1B $7.2B $7.6B $1.76 $1.97 Adjusted Diluted EPS1 $1.91 $1.65 $1.86 $1.85 $2.10 Available Funds From $5.050B $5.225B $5.213B $4.925B $5.175B $5.07

  12. Slide 12: Returns-based approach to capital allocation

    Returns-based approach to capital allocation Capital allocation priorities: • Protect long-term health of balance sheet and investment-grade rating Maintain financial strength 1 • 2024 Debt-to-Adjusted EBITDA1 ~3.85x • Preserve long-standing commitment to shareholder returns and grow dividend in- Di

  13. Slide 13: Balance sheet strength and financial flexibility

    Balance sheet strength and financial flexibility Strong liquidity and minimal near-term debt maturities Principal Value of Debt Maturities 3.85x 0.95x improvement 2024 guidance for In leverage since 20181 as of March 31, 2024 Debt-to-Adjusted EBITDA ($ in millions) $330 Investment $2,575 BBB/Baa2 gr

  14. Slide 14: Strong exports and gas-fired power generation driving demand

    Strong exports and gas-fired power generation driving demand Total demand including exports averaged 122 Bcf/d in 1Q ‘24 compared to 117 Bcf/d in 1Q‘23, driven by strong power sector demand POWER GEN INDUSTRIAL RES / COM LNG & MEXICAN EXPORTS Bcf/d Bcf/d Bcf/d Bcf/d 35 40 40 40 5.6% 0.0% 35 35 35 30

  15. Slide 15: Transco resides along active and growing US LNG corridor

    Transco resides along active and growing US LNG corridor Williams’ Asset Map in U.S. Gulf Coast1 + U.S. L-48 Large Scale Approved and Potential Liquefaction Facilities Per EIA2 14.3 11.6 13.7 Bcf/d3 Bcf/d3 Bcf/d3 LNG projects INVESTED LNG export CAPITAL LNG export already projects currently projects

  16. Slide 16: Growing electricity demand requires additional backup generation

    Growing electricity demand requires additional backup generation Electrification of heating and transport, data centers and AI-driven future will create growth in power demand not seen in past two decades U.S. Net On-Grid Power Demand 5,500 Electricity demand experiencing 5,000 4,500 3x TWh faster g

  17. Slide 17: Expected peak day demand drives need for reliable natural gas

    Expected peak day demand drives need for reliable natural gas Gas-fired power generation, 2021 peak day vs. expected 2040 peak day, TWh of gas-fired generation per day WECC Natural gas plays a PJM 63% critical role in in expected peak day demand 167% decarbonizing U.S. in expected peak MISO day dema

  18. Slide 18: Renewables remain a small part of the total energy mix

    Renewables remain a small part of the total energy mix 2023 Total Global Energy Electricity only 2023 Global Power Consumption by Sector Generation by Fuel Type accounts for ~21% of total end-use energy consumption Transportation Natural 25% Gas, Coal, 19% 37% Wind, 8% Non- 12% Energy 11% Electricit

  19. Slide 19: There is a growing need for reliable infrastructure investment

    There is a growing need for reliable infrastructure investment Cumulative Percentage Growth in L-48 Natural Gas Demand versus Growth in Interstate Natural Gas Pipeline Capacity and Natural Gas Storage Delivery, 2013-2022 Since 2013 demand for gas 45% has grown by 40% 43% 35% Cumulative Growth Since

  20. Slide 20: A strong future ahead

    A strong future ahead CONTINUED GROWTH AFTER RECORD YEARS, WITH A SIGNIFICANT EARNINGS STEP-UP AHEAD Transmission Gathering & Processing 2024 uplift Carolina Market Link 1Q’24 ✓ Marcellus South expansion 3Q’24 2025 uplift MountainWest Uinta Basin expansion 3Q’24 Louisiana Energy Gateway 2H’25 2026 u

  21. Slide 21: Executing on ~3.1 Bcf/d of Transco expansions

    Executing on ~3.1 Bcf/d of Transco expansions1 Projects in Execution ~$2.7B2 1 Target In- Project Current Status Project Capacity Service ~1/2 in service; Regional Energy Partial ISD 4Q’23; Access 1 Full ISD 4Q’24 ~1/2 under 829 MMcf/d construction 2 Southeast Supply Pre-filed FERC 3 2 4Q’27 1,592 M

  22. Slide 22: Emissions Reduction Program to modernize transmission infrastructure

    Emissions Reduction Program to modernize transmission infrastructure and reduce emissions Phased replacement of up to 205 compressor Reducing units Up to transmission compressor methane emissions $1.3B in anticipated ~50% capital spend through 2030 Implemented Reducing tracker for transmission NOx e

  23. Slide 23: MountainWest poised for growth beyond acquisition expectations

    MountainWest poised for growth beyond acquisition expectations P R O J E C TS I N S E RV I C E Strong project execution on 570 ▪ Opal East ▪ Carbonate Tap significant opportunity set ✓ ▪ Green River 104 ▪ Rex Meeker MMcf/d ▪ Wells Draw ▪ Skull Creek P R O J E C TS I N E X E C U T I O N 400+ ▪ Uinta

  24. Slide 24: Deepwater expansions adding significant volume growth

    Deepwater expansions adding significant volume growth Whale WESTERN ▪ Expected in-service date: 4Q 2024 GULF OF MEXICO ▪ Expected CAPEX: ~$400MM ▪ Combined reserves: ~545 MMboe: Oil: 380 MMBbls, Gas: 1,000 Bcf Shenandoah Salamanca ▪ Expected in-service date: 4Q 2024 ▪ Expected in-service date: 2Q 20

  25. Slide 25: Northeast expansion projects help capture future growth

    Northeast expansion projects help capture future growth Map of Williams’ Northeast Assets Utica NW Cardinal gathering expansion ▪ Scope: ~8 miles of gathering pipeline and incremental compression ▪ Incremental capacity: 125 MMcf/d ▪ In-service: 3Q 2025 Marcellus South Gathering expansion ▪ Scope: ~2

  26. Slide 26: Enhancing our Haynesville position

    Enhancing our Haynesville position Map of Williams’ Assets in Haynesville ADDING INCREMENTAL GATHERING CAPACITY ▪ Haynesville West | Capacity: 400 MMcf/d | ISD: 2H’25 Springridge ▪ Mansfield | Capacity: 150 MMcf/d | ISD: YE’25 (aligned with customer need) Mansfield Haynesville CO2 from gathering Wes

  27. Slide 27: Williams' hedge positions

    Williams’ hedge positions Commodity 2024 2025 E&P Hedges Weighted-Average Weighted-Average Natural Gas Volume (MMBtu) Volume (MMBtu) Price ($MMBtu) Price ($MMBtu) Fixed Price Swaps (30,470,000) $3.37 (43,470,000) $3.43 Basis Swaps (25,827,500) ($0.44) (13,005,000) ($0.22) Weighted-Average Weighted-A

  28. Slide 28: Committed to a clean energy future

    Committed to a clean energy future For more information regarding our sustainability efforts, please review our 2022 Sustainability Report and 2023 CDP Disclosure Long-term ambition Near-term goal Achieve net zero by 2050 utilizing a combination Upcoming goal of immediate and long-term 30% reduction

  29. Slide 29: Forward Looking Statements

    Forward Looking Statements WILLIAMS © 2024 The Williams Companies, Inc. All rights reserved NYSE: WMB I Williams 1st Quarter 2024 Earnings Call I May 7, 2024 I www.williams.com 29

  30. Slide 30: Forward-looking statements

    Forward-looking statements > The reports, filings, and other public announcements of The Williams Companies, Inc. (Williams) 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

  31. Slide 31: Forward-looking statements (cont'd)

    Forward-looking statements (cont’d) > Forward-looking statements are based on numerous assumptions, uncertainties, and risks that could cause future events or results to be materially different from those stated or implied in this report. Many of the factors that will determine these results are bey

  32. Slide 32: Forward-looking statements (cont'd)

    Forward-looking statements (cont’d) – 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 production; – Changes in the current geopolitical situation, inc

  33. Slide 33: Non-GAAP Reconciliations

    Non-GAAP Reconciliations WILLIAMS © 2024 The Williams Companies, Inc. All rights reserved NYSE: WMB I Williams 1st Quarter 2024 Earnings Call I May 7, 2024 I www.williams.com 33

  34. Slide 34: Non-GAAP Disclaimer

    Non-GAAP Disclaimer > This news release and accompanying materials may include certain financial measures – adjusted EBITDA, adjusted income (“earnings”), adjusted earnings per share, available funds from operations and dividend coverage ratio – that are non-GAAP financial measures as defined under

  35. Slide 35: Reconciliation to Adjusted Income 2015-2017

    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 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year Income (loss) attrib

  36. Slide 36: Reconciliation to Adjusted Income 2015-2017 cont.

    Reconciliation of Income (Loss) Attributable to The Williams Companies, Inc. to Adjusted Income 2015-2017 cont. 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 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year Other Impairme

  37. Slide 37: Reconciliation to Non-GAAP Adjusted Income 2018-2020

    Reconciliation of Income (Loss) from Continuing Operations Attributable to The Williams Companies, Inc. to Non-GAAP Adjusted Income 2018-2020 2018 2019 2020 (Dollars in millions, except per-share amounts) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Q

  38. Slide 38: Reconciliation to Non-GAAP Adjusted Income 2018-2020 Cont.

    Reconciliation of Income (Loss) from Continuing Operations Attributable to The Williams Companies, Inc. to Non-GAAP Adjusted Income 2018-2020 Cont. 2018 2019 2020 (Dollars in millions, except per-share amounts) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr

  39. Slide 39: Reconciliation to Non-GAAP Adjusted Income 2021-2022

    Reconciliation of Income (Loss) From Continuing Operations Attributable to The Williams Companies, Inc. to Non-GAAP Adjusted Income 2021-2022 2021 2022 (Dollars in millions, except per-share amounts) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year Income (loss) from continu

  40. Slide 40: Reconciliation to Non-GAAP Adjusted Income 2021-2022 Cont.

    Reconciliation of Income (Loss) From Continuing Operations Attributable to The Williams Companies, Inc. to Non-GAAP Adjusted Income 2021-2022 Cont. 2021 2022 (Dollars in millions, except per-share amounts) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year Gas & NGL Marketing

  41. Slide 41: Reconciliation to Non-GAAP Adjusted Income 2023-2024

    Reconciliation of Income (Loss) From Continuing Operations Attributable to The Williams Companies, Inc. to Non-GAAP Adjusted Income 2023-2024 2023 2024 (Dollars in millions, except per-share amounts) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr Income (loss) from continuing operations attributable t

  42. Slide 42: Reconciliation to Non-GAAP Adjusted Income 2023-2024 Cont.

    Reconciliation of Income (Loss) From Continuing Operations Attributable to The Williams Companies, Inc. to Non-GAAP Adjusted Income 2023-2024 Cont. 2023 2024 (Dollars in millions, except per-share amounts) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr Gas & NGL Marketing Services Impact of volatility

  43. Slide 43: Reconciliation to Modified EBITDA and Adjusted EBITDA 2015-2017

    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 Qtr Year Net income (loss) $ 13 $ 183 $ (173) $ (1,337) $ (1,314) $

  44. Slide 44: Reconciliation to Modified EBITDA and Adjusted EBITDA 2018-2020

    Reconciliation of Net Income (Loss) to Modified EBITDA and Non-GAAP Adjusted EBITDA 2018-2020 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 4th Qtr Year Net income (loss) $ 270 $ 269 $ 200 $ (546) $ 193 $ 214 $

  45. Slide 45: Reconciliation to Modified EBITDA and Adjusted EBITDA 2021-2022

    Reconciliation of Net Income (Loss) to Modified EBITDA and Non-GAAP Adjusted EBITDA 2021-2022 2021 2022 (Dollars in millions) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year Net income (loss) $ 435 $ 322 $ 173 $ 632 $ 1,562 $ 392 $ 407 $ 621 $ 697 $ 2,117 Provision (benefit

  46. Slide 46: Reconciliation to Modified EBITDA and Adjusted EBITDA 2023-2024

    Reconciliation of Net Income (Loss) to Modified EBITDA, and Non-GAAP Adjusted EBITDA 2023-2024 2023 2024 (Dollars in millions) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr Net income (loss) $ 957 $ 494 $ 684 $ 1,168 $ 3,303 $ 662 Provision (benefit) for income taxes 284 175 176 370 1,005 193 Interes

  47. Slide 47: Reconciliation to Available Funds from Operations 2023-2024

    Reconciliation of Cash Flow from Operating Activities to Non-GAAP Available Funds from Operations 2023-2024 2023 2024 (Dollars in millions, except coverage ratios) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr** Year** 1st Qtr Net cash provided (used) by operating activities $ 1,514 $ 1,377 $ 1,234 $ 1,813 $ 5,93

  48. Slide 48: Reconciliation of 2024 and 2025 Guidance to Non-GAAP Measures

    Reconciliation of Net Income (Loss) from Continuing Operations to Modified EBITDA, Non-GAAP Adjusted EBITDA and Cash Flow from Operating Activities to Non-GAAP Available Funds from Operations (AFFO) 2024 Guidance 2025 Guidance (Dollars in millions, except per-share amounts and coverage ratio) Low Mi

Williams Companies, Inc. (The) — Q1 2024 Earnings Presentation on 6ix