Financial Highlights and Operating Statistics. (UNAUDITED) Final

Transcription

1 Financial Highlights and Operating Statistics Final March 31, 2016

2 Reconciliation of Income (Loss) Attributable to The Williams Companies, Inc. to Adjusted Income (Dollars in millions, except per-share amounts) Income (loss) attributable to The Williams Companies, Inc. available to common stockholders $ 70 $ 114 $ (40) $ (715) $ (571) $ (65) Income (loss) - diluted earnings (loss) per common share Adjustments: Estimated minimum volume commitments Severance and related costs Potential rate refunds associated with rate case litigation Impairment of certain assets ACMP Merger and transition-related expenses Share of impairment at equity-method investments Geismar Incident adjustment for insurance and timing Loss related to Geismar Incident Loss (recovery) related to Opal incident Gain on extinguishment of debt Expenses associated with strategic alternatives adjustments Canadian PDH facility project development costs Gain on sale of certain assets Impairment of certain assets adjustments Expenses associated with strategic alternatives ACMP Merger and transition-related expenses Severance and related costs Contingency gain Accrued long-term charitable commitment adjustments Adjustments included in Modified EBITDA Adjustments below Modified EBITDA Impairment of equity-method investments - Impairment of goodwill - Interest expense related to potential rate refunds associated with rate case litigation - $.09 $.15 $ (.05) $ (.95) $ (.76) $ (.09) $ 55 $ 55 $ 65 $ (175) $ $ (126) (126) (8) 1 (6) (14) (14) (45) 79 (48) (10) (9) (9) (29) , ,098 1,098 3 Accelerated depreciation related to reduced salvage value of certain assets ACMP Acquisition-related financing expenses - Interest income on receivable from sale of Venezuela assets - Allocation of adjustments to noncontrolling interests adjustments Less tax effect for above items Adjustments for tax-related items (1) 2 2 (9) (18) (27) (18) (33) 21 (212) (767) (991) (83) (31) ,236 1, (17) 335 1,268 1, (28) 4 (129) (473) (626) (61) (74) (59) Adjusted income available to common stockholders Adjusted diluted earnings per common share Weighted-average shares - diluted (thousands) $ 122 $ 110 $ 167 $ 6 $ 405 $ 26 $.16 $.15 $.22 $.01 $.54 $ , , , , , ,040 (1) The fourth quarter of 2015 includes an unfavorable adjustment related to the translation of certain foreign-denominated unrecognized tax benefits. Note: The sum of earnings per share for the quarters may not equal the total earnings per share for the year due to changes in the weighted-average number of common shares outstanding.

3 Consolidated Statement of Operations (Dollars in millions, except per-share amounts) Revenues: Service revenues Product sales revenues Costs and expenses: Product costs $ 1,197 $ 1,241 $ 1,239 $ 1,487 $ 5,164 $ 1, , ,716 1,839 1,799 2,006 7,360 1, , Operating and maintenance expenses , Depreciation and amortization expenses , Selling, general, and administrative expenses Impairment of goodwill 1,098 1,098 Net insurance recoveries - Geismar Incident (126) (126) (income) expense - net costs and expenses 1,489 1,447 1,443 2,755 7,134 1,398 Operating income (loss) (749) Equity earnings (losses) Gain on remeasurement of equity-method investment Impairment of equity-method investments (461) (898) (1,359) (112) investing income (loss) - net Interest incurred (273) (278) (280) (287) (1,118) (306) Interest capitalized income (expense) - net Income (loss) before income taxes (238) (1,784) (1,713) (11) Provision (benefit) for income taxes Net income (loss) Less: Net income (loss) attributable to noncontrolling interests Net income (loss) attributable to The Williams Companies, Inc (65) (447) (399) (173) (1,337) (1,314) (13) (57) 69 (133) (622) (743) 52 $ 70 $ 114 $ (40) $ (715) $ (571) $ (65) Diluted earnings (loss) per common share: Net income (loss) $.09 $.15 $ (.05) $ (.95) $ (.76) $ (.09) Weighted-average number of shares used in computations (thousands) Common shares outstanding at end of period (thousands) Market price per common share (end of period) Cash dividends declared per share 752, , , , , , , , , , , ,484 $ $ $ $ $ $ $.58 $.59 $.64 $.64 $ 2.45 $.64 Note: The sum of earnings (loss) per share for the quarters may not equal the total earnings (loss) per share for the year due to changes in the weightedaverage number of common shares outstanding.

4 Reconciliation of Non-GAAP Modified EBITDA to Non-GAAP Adjusted EBITDA Net income (loss) Provision (benefit) for income taxes Interest expense Equity (earnings) losses Impairment of equity-method investments investing (income) loss - net Proportional Modified EBITDA of equity-method investments Impairment of goodwill Depreciation and amortization expenses Accretion for asset retirement obligations associated with nonregulated operations Modified EBITDA $ 13 $ 183 $ (173) $ (1,337) $ (1,314) $ (13) (65) (447) (399) , (51) (93) (92) (99) (335) (97) , (9) (18) (27) (18) ,098 1, , $ 812 $ 1,046 $ 999 $ 1,034 $ 3,891 $ 918 Modified EBITDA $ 817 $ 1,053 $ 1,021 $ 1,112 $ 4,003 $ 955 (5) (3) (5) (70) (83) (38) (4) (17) (8) (29) 1 $ 812 $ 1,046 $ 999 $ 1,034 $ 3,891 $ 918 Adjustments included in Modified EBITDA: Adjustments included in Modified EBITDA $ 100 $ (45) $ 79 $ (48) $ 86 $ $ 106 $ (29) $ 104 $ 32 $ 213 $ 138 Adjusted EBITDA: Adjusted EBITDA $ 917 $ 1,008 $ 1,100 $ 1,064 $ 4,089 $ 1,060 (5) (3) (5) (6) (19) (14) $ 918 $ 1,017 $ 1,103 $ 1,066 $ 4,104 $ 1,056

5 Revenues: Service revenues $ 1,192 $ 1,231 $ 1,232 $ 1,480 $ 5,135 $ 1,226 Product sales , revenues 1,711 1,830 1,792 1,998 7,331 1,654 Segment costs and expenses: Product costs , Operating and maintenance expenses , Selling, general, and administrative expenses Net insurance recoveries - Geismar Incident (126) (126) segment costs and expenses 1 4 (13) segment costs and expenses 1, ,081 4, Proportional Modified EBITDA of equity-method investments Modified EBITDA Adjustments Adjusted EBITDA Operating statistics ,053 1,021 1,112 4, (45) 79 (48) $ 917 $ 1,008 $ 1,100 $ 1,064 $ 4,089 $ 1,060 Interstate Transmission Throughput (Tbtu) Avg. daily transportation volumes (Tbtu) Avg. daily firm reserved capacity (Tbtu) Gathering and Processing Gathering volumes (Bcf per day) - Consolidated (1) Gathering volumes (Bcf per day) - Non-consolidated (2) Plant inlet natural gas volumes (Bcf per day) - Consolidated (1) Plant inlet natural gas volumes (Bcf per day) - Non-consolidated (2) 1, , , Consolidated (1) Ethane margin ($/gallon) $.13 $.13 $.13 $.11 $.12 $.08 Non-ethane margin ($/gallon) NGL margin ($/gallon) Ethane equity sales (million gallons) $.28 $.26 $.23 $.25 $.25 $.20 $.24 $.22 $.19 $.20 $.21 $ Non-ethane equity sales (million gallons) NGL equity sales (million gallons) Ethane production (million gallons) Non-ethane production (million gallons) , NGL production (million gallons) , NGL equity sales (million gallons) Non-consolidated (2) NGL production (million gallons) Petrochemical Services Geismar ethylene sales volumes (million lbs) Geismar ethylene margin ($/lb) (3) , $ $.21 $.16 $.11 $.15 $.13 Canadian propylene sales volumes (million lbs) Canadian alky feedstock sales volumes (million gallons) Overland Pipeline Company (2) NGL transportation volumes (Mbbls) 10,845 13,860 15,075 15,527 55,307 16,814 (1) Excludes volumes associated with equity-method investments that are not consolidated for financial reporting purposes. (2) Includes 100% of the volumes associated with operated equity-method investments. (3) Ethylene margin and ethylene margin per pound are calculated using financial results determined in accordance with GAAP, which include realized ethylene sales prices and ethylene COGS. Realized sales and COGS per unit metrics may vary from publicly quoted market indices or spot prices due to various factors, including, but not limited to, basis differentials, transportation costs, contract provisions, and inventory accounting methods.

6 Revenues: Service revenues $ $ 1 $ 1 $ $ 2 $ Product sales 3 revenues Segment costs and expenses: Product costs Operating and maintenance expenses Selling, general, and administrative expenses (income) expense - net segment costs and expenses Proportional Modified EBITDA of equity-method investments Modified EBITDA Adjustments Adjusted EBITDA (1) (8) (5) (3) (5) (70) (83) (38) $ (5) $ (3) $ (5) $ (6) $ (19) $ (14) Operating statistics Ethane equity sales (million gallons) Non-ethane equity sales (million gallons) NGL equity sales (million gallons) Ethane production (million gallons) Non-ethane production (million gallons) NGL production (million gallons) Petrochemical Services Canadian propylene sales volumes (million lbs) Canadian alky feedstock sales volumes (million gallons)

7 Capital Expenditures and Investments Capital expenditures: * $ 735 $ 715 $ 692 $ 653 $ 2,795 $ $ 832 $ 822 $ 771 $ 742 $ 3,167 $ 513 Purchase of businesses (net of cash acquired): $ $ 112 $ $ $ 112 $ $ $ 112 $ $ $ 112 $ Purchase of investments: $ 83 $ 400 $ 45 $ 66 $ 594 $ $ 83 $ 400 $ 46 $ 66 $ 595 $ 63 Summary: $ 818 $ 1,227 $ 737 $ 719 $ 3,501 $ $ 915 $ 1,334 $ 817 $ 808 $ 3,874 $ 576 Capital expenditures incurred, purchase of businesses (net of cash acquired), and purchase of investments: Increases to property, plant, and equipment Purchase of businesses (net of cash acquired) Purchase of investments $ 738 $ 816 $ 757 $ 713 $ 3,024 $ $ 821 $ 1,328 $ 803 $ 779 $ 3,731 $ 588 *Increases to property, plant, and equipment Changes in related accounts payable and accrued liabilities Capital expenditures $ 738 $ 816 $ 757 $ 713 $ 3,024 $ (12) $ 832 $ 822 $ 771 $ 742 $ 3,167 $ 513

8 Depreciation and Amortization and Selected Financial Data Depreciation and amortization: Williams NGL & Petchem $ 419 $ 419 $ 423 $ 441 $ 1,702 $ $ 427 $ 428 $ 432 $ 451 $ 1,738 $ 445 selected financial data: Cash and cash equivalents $ 341 $ 204 $ 125 $ 100 $ 100 $ 164 assets $ 50,325 $ 51,034 $ 50,694 $ 49,020 $ 49,020 $ 48,807 Capital structure: Debt Commercial paper Current Noncurrent Stockholders equity Debt to debt-plus-stockholders equity ratio $ $ 1,743 $ 1,530 $ 499 $ 499 $ 135 $ 801 $ 377 $ 377 $ 176 $ 176 $ 976 $ 21,559 $ 21,158 $ 21,680 $ 23,812 $ 23,812 $ 23,701 $ 8,212 $ 7,928 $ 7,387 $ 6,148 $ 6,148 $ 5, % 74.6 % 76.2 % 79.9 % 79.9 % 81.3 % Cash distributions received from interests in: L.P. General partner Limited partner $ 226 $ 227 $ 224 $ 14 $ 691 $ , $ 515 $ 515 $ 513 $ 303 $ 1,846 $ 304

9 Dividend Coverage Ratio (Dollars in millions, except per share amounts) Distributions from WPZ (accrued / as declared basis) (3) $ 515 $ 513 $ 513 $ 513 $ 2,054 $ 513 adjusted cash flow (see below) Corporate interest Subtotal WMB cash tax rate WMB cash taxes (excludes cash taxes paid by WPZ) (1) Corporate Capex (5) (3) (5) (6) (19) (14) (64) (64) (63) (64) (255) (66) , % 0% 0% 0% -3% 0% (6) (5) (6) (7) (24) (6) WMB cash flow available for dividends $ 495 $ 441 $ 439 $ 436 $ 1,811 $ per share $ 0.66 $ 0.59 $ 0.59 $ 0.58 $ 2.42 $ 0.57 WMB dividends paid Excess cash flow available after dividends (434) (442) (480) (480) (1,836) (480) $ 61 $ (1) $ (41) $ (44) $ (25) $ (51) Dividend per share $ $ $ $ $ $ Coverage ratio (2)(3) Adjusted Cash Flow: Modified EBITDA Segment adjustments (5) (3) (5) (70) (83) (38) Adjusted EBITDA (5) (3) (5) (6) (19) (14) Less: Maintenance Capex Adjusted cash flow (5) (3) (5) (6) (19) (14) Notes: (1) A refund was received in the first quarter of 2015 related to a 2014 tax Net Operating Loss, due to bonus depreciation, that yielded a carryback refund from (2) WMB cash flow available for dividends / WMB dividends paid. (3) Cash distributions for the third and fourth quarters of 2015 and the first quarter of 2016 have been increased by $209 million, $209 million, and $10 million, respectively, in order to exclude the impact of the IDR waiver associated with the WPZ merger termination fee from the determination of coverage ratios.