Williams Companies, Inc. (the) · NYSE:WMB
Williams Companies, Inc. (the) — Investor Day (November 2015)
21 slides from Williams Companies, Inc. (the)'s investor day presentation, Nov 18, 2015
Slide 1: 2015 Analyst Day
Energy transfer equity, L.p. 2015 Analyst Day November 17th, 2015 Filed By Energy Transfer Corp LP pursuant to Rule 425 under the Securities Act of 1933 and deemed filed pursuant to Rule 14a-12 under the Securities Exchange Act of 1934 Subject Company: The Williams Companies, Inc. Commission File No
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements This communication may contain forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding the merger of ETE and Williams, the expected future performance of the combined company (includi
Slide 3: Pro forma Energy Transfer organizational structure
Pro forma energy transfer organizational structure ENERGY TRANSFER LNG SUNOCO LOGISTICS PARTNERS L.P. (NYSE: SXL) Baa2 / BBB / BBB ~1% LP Interest 100% GP / IDRs 90% GP / IDRs (Class H Units) 27% LP Interest SUNOCO LP (NYSE: SUN) Ba2 / BB / BB ENERGY TRANSFER EQUITY L.P. (NYSE: ETE) ENERGY TRANSFER
Slide 4: Energy Transfer Family Evolution Over Time
Energy Transfer Family Evolution Over Time Transformational Objectives Key Accomplishments Add $ amounts; Align timeline with dates or x-axis Total ETE has announced or executed on nearly $128 billion of midstream opportunities since 2004 2004 – 2011 2012 – 2013 ETP reverse merger with Heritage Prop
Slide 5: ETE will be among the largest energy companies in the world
ETE WILL be among the largest energy companies in the world Enterprise Value vs. Top Energy Companies(1) Midstream Major Oilfield Services E&P Pro Forma ETE Family to Include Three of the Largest Investment Grade MLPs by Enterprise Value(1) Credit Rating Baa1 BBB+ BBB+ Baa3 BBB- BBB- Baa2 BBB BBB Ba
Slide 6: Williams merger enhances Energy Transfer's strengths
Williams merger enhances energy transfer’s STRENGTHS WPZ is a major complement to Energy Transfer's existing business and will benefit from its integrated business model Interstate Natural Gas T&S Franchise Strengths Intrastate Natural Gas T&S Midstream Liquids Transportation & Services Lone Star NG
Slide 7: Merger creates one of the largest energy franchises in the U.S.
Merger Creates one of The largest energy franchises in the U.s.... Largest transporter of natural gas in the U.S. 3rd largest NGL business in the U.S. Largest G&P MLP and NGL Producer in the U.S. 3rd largest MLP transporter of crude oil in the U.S. Natural Gas NGLs Crude Oil 2nd largest planned LNG
Slide 8: Unique geographic footprint to help drive increased energy production
Unique geographic footprint to help drive increased energy production… Source: Company disclosures, DI Desktop and EIA Drilling Productivity Report; November 2015 (1) Includes unconsolidated affiliates volumes Asset Summary ETE Williams Pro Forma Pipeline (miles) 71,000 33,000 104,000 Midstream Thro
Slide 9: Exceptionally well-positioned to capitalize on U.S. energy exports
Alberta South America Caribbean Europe Mexico Europe India Asia Europe Asia South America Asia South America Canada NGLs LNG Natural Gas ETP Assets SXL Assets WPZ Assets Energy Transfer Assets Exceptionally well-positioned to capitalize on u.s. energy exports Marcus Hook Nederland Energy Transfer Pr
Slide 10: Fully integrated midstream / liquids platform across North America
…and a fully integrated midstream / liquids platform across north America NGL Pipelines Crude Projects NGL Projects Refined Products Crude Products Growth Projects LPG Pipelines Crude Products Energy Transfer Sunoco Logistics Williams Chemical Plant LPG Fractionator Facility LNG Facilities Fractiona
Slide 11: Organic growth contributes to Energy Transfer's strong foothold in prolific basins
ORGANIC GROWTH contributes TO energy transfer’s Strong FOOTHOLD IN the most PROLIFIC PRODUCING BASINS 2007Expanded Godley Plant to 400 MMcf/d 2008Expanded Godley Plant to 600 MMcf/d Eight 36” & 42” gas pipelines totaling 419 miles Texas Independence Pipeline – 148 mile 42” gas pipeline 2013Godley Pl
Slide 12: ETE's pro forma cash flow components
ETE’s pro forma Cash flow components Note: This is for illustrative purposes and does not represent the actual amount of distributions received (1)Pro forma for the SUN transaction on 11/16/2015 $0.00 ETP IDR Sub SXL TLNG WPZ SUN (1)
Slide 13: ETE will continue to benefit from solid underlying cash flow growth
ETE will continue to benefit from solid underlying cash flow growth ($ in millions) AA- BBB BBB- BB ETP SXL SUN LC LNG WPZ Distributions Received From Underlying Operating Partnerships(1) Cash Flow Contribution to ETE 2016E Pro Forma 2016E Pro Forma Note: Assumes 100% cash election resulting in equi
Slide 14: Peer-leading historical and projected distribution growth
Peer-leading historical and projected distribution growth 2015E-2017E ETE/WMB Distribution CAGR vs. Public GP Peers Historical & Projected DPU Growth Source: Company filings, Factset. Consensus estimates. Market data as of 11/13/2015. Median of peers shown. ETE peers include WGP, ENLC, PAGP, SE, TRG
Slide 15: Significant value upside for ETE unitholders
significant Value upside for ETE unitholders Illustrative Effective ETE Price Appreciation Source: FactSet market data as of 11/13/2015. Median Wall Street research price target as of 11/13/2015. Reports date from 8/6/2015 to 11/6/2015. Assumes realized synergies resulting in $1.25bn of incremental
Slide 16: Merger improves ETE's credit profile
Merger improves ete’s credit profile Pro Forma Interest Rate Exposure (3) Pro Forma Maturity Profile ($ millions) Net Debt = $17,680 million Pro Forma Capital Structure Shown at maximum cash election of $8.00 per WMB share. Revolver balance shown net of cash Assumes WMB revolver paydown and terminat
Slide 17: Key Takeaways
Key Takeaways The Williams merger creates numerous benefits: Enhances overall cash flow diversification by commodity exposure, geographic areas and customer base Increases long-term cash flow growth Improves pro forma credit profile ETE will derive its cash flow strength from: Three of the largest i
Slide 18: Illustrative Transaction timeline
Illustrative Transaction timeline September 2015 Sign Merger Agreement Announce transaction Finalize proxy / registration statement Begin regulatory approval process File proxy statement / S-4 registration statement WMB shareholder vote Merger Close File for Regulatory (HSR) Approval 8 – 12 weeks 5
Slide 19: Appendix
gt APPENDIX
Slide 20: Substantial opportunity to realize shared service cost savings
SUBSTANTIAL opportunity TO REALIZE shared service cost savings Shared Service Implementation Is Identical to Our Highly Successful Approach With Sunoco, Inc. Value Creation Low execution risk Run-rate cost synergies achieved by 2017 At least $400 million annual cost synergies
Slide 21: G&A comparison and Synergy Track Record
g&A comparison and Synergy Track Record ($ in millions) WMB / ETE G&A Historical Synergies Track Record ($ in millions)