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

Williams Companies, Inc. (the) — Q3 2024 Earnings Presentation

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

  1. Slide 1: Williams 3rd Quarter 2024 Earnings Call

    Williams 3rd Quarter 2024 Earnings Call November 7, 2024 WILLIAMS © 2024 The Williams Companies, Inc. All rights reserved NYSE: WMB I Williams 3rd Quarter 2024 Earnings Call I November 7, 2024 I www.williams.com 1

  2. Slide 2: Another successful quarter responding to increasing market demands

    Another successful quarter responding to increasing market demands PROJECT COMPLETION PROJECT PROGRESSION PROJECT ANNOUNCEMENTS • Placed Transco’s Regional Energy • Received FERC certificate for • Executed agreements on three new Access and MountainWest’s Uinta MountainWest’s Overthrust Westbound ex

  3. Slide 3: Strong results across key financial metrics

    Strong results across key financial metrics Strong Financial Performance 3Q 3Q 3Q YTD 3Q YTD Change Change Across Key Financial Metrics 2024 2023 2024 2023 Adjusted EBITDA $1,703 $1,652 3% $5,304 $5,058 5% Adjusted Earnings per Share $0.43 $0.45 (4%) $1.45 $1.43 1% Available Funds from Operations $1

  4. Slide 4: Achieved 3% growth 3Q 2024 vs. 3Q 2023

    Achieved 3% growth 3Q 2024 vs. 3Q 2023 Core business performance drivers WMB Adjusted EBITDA ($MM): 3Q 2024 vs. 3Q 2023 Transmission & GOM Higher earnings due to transmission expansions and Core Business Performance the Gulf Coast Storage acquisition; partially offset by $1,800 lower Gulf of Mexico

  5. Slide 5: Positioned for continued success

    Positioned for continued success DEMONSTRATED TRACK CLEAR LINE-OF-SIGHT INTO FORECASTED FUNDAMENTALS RECORD OF GROWTH AND GROWTH FROM FULLY SUPPORT AN EVEN HIGHER FINANCIAL STRENGTH CONTRACTED PROJECTS LEVEL OF GROWTH AHEAD Williams has demonstrated a long history of value creation to its shareholde

  6. Slide 6: Appendix

    Appendix WILLIAMS © 2024 The Williams Companies, Inc. All rights reserved NYSE: WMB I Williams 3rd Quarter 2024 Earnings Call I November 7, 2024 I www.williams.com 6

  7. Slide 7: Achieved 2% growth 3Q 2024 vs. 2Q 2024

    Achieved 2% growth 3Q 2024 vs. 2Q 2024 Core business performance drivers WMB Adjusted EBITDA ($MM): 3Q 2024 vs. 2Q 2024 Transmission & GOM Higher earnings due to Regional Energy Access Core Business Performance expansion and one more billable day on Transco; $1,750 partially offset by higher operati

  8. Slide 8: Achieved 5% growth 3Q 2024 YTD vs. 3Q 2023 YTD

    Achieved 5% growth 3Q 2024 YTD vs. 3Q 2023 YTD Core business performance drivers WMB Adjusted EBITDA ($MM): 3Q 2024 YTD vs. 3Q 2023 YTD Transmission & GOM Higher earnings due to the Gulf Coast Storage and Core Business Performance MountainWest acquisitions and transmission $5,500 expansions; partial

  9. Slide 9: 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

  10. Slide 10: 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

  11. Slide 11: Recent accomplishments

    Recent accomplishments 2024 Financial Increased midpoint of guidance by $125 million and now expects 2024 Adjusted EBITDA between $7.0 Guidance billion to $7.150 billion, driven by strength of base business Placed Regional Energy Access in-service; Placed a portion of Southside Reliability Enhanceme

  12. Slide 12: Anticipating continued base business strength in 2024 and 2025

    Anticipating continued base business strength in 2024 and 2025 Financial Metric Original 2024 Updated 2024 Maintained 2025 Guidance Guidance Guidance Adjusted EBITDA $6.8B - $7.1B $7.0B $__B- $7.150B - $__B $7.2B - $7.6B Adjusted Diluted EPS1 $1.65 - $1.86 $1.83 $__ - $1.93 $__ $1.85 - $2.10 Availab

  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 3.8x 1.0x improvement as of September 30, 2024 2024 guidance for in leverage since 20182 ($ in millions) Debt-to-Adjusted EBITDA $330 Investment $2,575 BBB/Baa2

  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 107 Bcf/d in 3Q 24 YTD compared to 105 Bcf/d in 3Q 23 YTD, driven by strong power sector demand POWER GEN INDUSTRIAL RES / COM LNG & MEXICAN EXPORTS Bcf/d Bcf/d Bcf/d Bcf/d 40 3.8% 40 40 40 35 35 35

  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 11.9 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 6,000 Electricity demand 5,500 experiencing 5,000 10x TWh 4,500 f

  17. Slide 17: 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% 38% Wind, 8% Non- 11% Energy 11% Electricit

  18. Slide 18: 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% Cumulative Growth Since 2013

  19. Slide 19: Natural gas meets the trifecta for energy solutions

    Natural gas meets the trifecta for energy solutions CLEAN AFFORDABLE RELIABLE 45% less carbon dioxide 4x 2.5x Performance of gas power cheaper than emissions than coal1 capacity compared to electricity2 solar PV power capacity3 U.S. CO2 emissions decline with Natural gas is a flexible and increased

  20. Slide 20: Clear line-of-sight into near-term contracted growth

    Clear line-of-sight into near-term contracted growth CONTINUED GROWTH AFTER RECORD YEARS, WITH A SIGNIFICANT EARNINGS STEP-UP AHEAD Transmission Gathering & Processing 2024 uplift Uinta Basin expansion 3Q’24 ✓ Regional Energy Access Southside Reliability Enhancement 3Q’24 4Q’24 ✓ Haynesville West ex

  21. Slide 21: Transacting on portfolio of deep and diverse set of transmission projects

    Transacting on portfolio of deep and diverse set of transmission projects DIVERSE OPTIONALITY ~11.5 Bcf/d in queue to serve power E X PA N S I V E generation facilities, LNG facilities and Moved from backlog into execution since 2020 FOOTPRINT industrial facilities/gas utilities Projects moved to ex

  22. Slide 22: Executing significant portfolio of Transco expansion projects

    Executing significant portfolio of Transco expansion projects Target In- Project Current Status Project Capacity 1 Service Regional Energy Placed in- Access 1 service 3Q’24 In-service 829 MMcf/d Southeast Supply 2 4Q’27 Filed FERC application 1,597 MMcf/d 2 Enhancement 3 Commonwealth 4 3 4Q’25 Under

  23. Slide 23: 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

  24. Slide 24: Expansions underway on MountainWest and Northwest Pipeline

    Expansions underway on MountainWest and Northwest Pipeline N O RT H W E S T P I P E L I N E P R O J E C TS I N E X E C U T I O N ▪ Ryckman Creek Lateral Capacity: 50 MMcf/d | Expected ISD: 4Q 2025 ▪ Stanfield South Project Capacity: 80 MMcf/d | Expected ISD: 4Q 2025 ▪ Naughton Coal-to-Gas Conversion

  25. Slide 25: 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: 2Q 2025 ▪ Expected in-service date: 2Q 20

  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: 3Q’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 (10,280,000) $3.19 (44,990,000) $3.43 Basis Swaps (13,227,500) ($0.27) (40,350,000) ($0.38) Weighted-Average Weighted-A

  28. Slide 28: Focused on environmental stewardship and building strong communities

    Focused on environmental stewardship and building strong communities LINK HERE 26% REDUCTION 4,346 MILES in intensity-based GHG emissions of pipeline integrity assessments from 2018, working towards goal to protect our people, environment of a 30% reduction by 2028 and assets, up 36% from 2022 589+

  29. Slide 29: Committed to a clean energy future

    Committed to a clean energy future For more information regarding our sustainability efforts, please review our 2023 Sustainability Report LONG-TERM AMBITION Achieve net zero NEAR-TERM GOAL ambition by 2050 utilizing a combination of immediate NEAR-TERM GOAL 30% reduction and long-term in carbon int

  30. Slide 30: Forward Looking Statements

    Forward Looking Statements WILLIAMS © 2024 The Williams Companies, Inc. All rights reserved NYSE: WMB I Williams 3rd Quarter 2024 Earnings Call I November 7, 2024 I www.williams.com 30

  31. Slide 31: 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

  32. Slide 32: 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

  33. Slide 33: 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

  34. Slide 34: Non-GAAP Reconciliations

    Non-GAAP Reconciliations WILLIAMS © 2024 The Williams Companies, Inc. All rights reserved NYSE: WMB I Williams 3rd Quarter 2024 Earnings Call I November 7, 2024 I www.williams.com 34

  35. Slide 35: 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

  36. Slide 36: Reconciliation of Income 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

  37. Slide 37: Reconciliation of Income 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

  38. Slide 38: 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

  39. Slide 39: 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

  40. Slide 40: 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

  41. Slide 41: 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

  42. Slide 42: 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 2nd Qtr 3rd Qtr Year-to-date Income (loss) from continu

  43. Slide 43: 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 2nd Qtr 3rd Qtr Year-to-date Gas & NGL Marketing

  44. Slide 44: Reconciliation of Net Income to 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) $

  45. Slide 45: Reconciliation of Net Income to 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 $

  46. Slide 46: Reconciliation of Net Income to 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

  47. Slide 47: Reconciliation of Net Income to 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 2nd Qtr 3rd Qtr Year-to-date Net income (loss) $ 957 $ 494 $ 684 $ 1,168 $ 3,303 $ 662 $ 426 $ 741 $ 1,829 Provision (benefit) fo

  48. Slide 48: Reconciliation of Cash Flow 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 2nd Qtr 3rd Qtr Year-to-date Net cash provided (used) by operating activities $ 1,514 $ 1,3

  49. Slide 49: Reconciliation of Guidance to Adjusted EBITDA and AFFO

    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) — Q3 2024 Earnings Presentation on 6ix