NYSE: WMB |www.williams.com

Williams 4th Quarter and Full-Year 2020

Earnings Call

February 23, 2021

Exceptional performance in the face of significant headwinds

2020 PERFORMANCE

2020 HEADWINDS

Record Adj. EBITDA, $5.1B

Record DCF, $3.4B

Record gathering volumes, 13.2 Bcf/d1

Record transmission contracted capacity, 22.2 Bcf/d2Debt-to-Adj. EBITDA reduced to 4.35x

Free Cash Flow, $212 million3

Improved Operating Margin for 6th consecutive yearKey ESG ratings and rankings improved

Improved credit ratings

Continued strength in project execution

COVID-19 global pandemic

Oil price collapse

Depressed NGL prices

Active hurricane season in Gulf of Mexico

Major customer bankruptcies

Note: This slide contains non-GAAP financial measures. A reconciliation of all non-GAAP financial measures used in this presentation to their nearest comparable GAAP financial measures is included at the back of this presentation. 1 Williams 2020 natural gas gathering volumes exclude Blue Racer Midstream, which we began to operate in 4Q 2020 following our November 2020 acquisition of a controlling interest in Caiman Energy II. 2 Dekatherms converted to cubic feet at 1,000 cubic feet = 1 dekatherm. 3 Free Cash Flow is Available Funds From Operations less common dividends paid less Capital Investments

4Q 2020 and full-year 2020 results demonstrate continued stability despite external volatility

Stable Financial Performance

Across Key Metrics

Adjusted EBITDA

$1,336

$1,284

4% $5,105 $5,015 2%

Adjusted Earnings per Share Available Funds from Operations

$0.31

  • $0.24 29% $1.10 $0.99 11%

    $983

    $962

    2% $3,638 $3,611 1%

    Distributable Cash Flow

    $926

  • $828 12% $3,356 $3,297 2%

Dividend Coverage Ratio

1.91x

1.80x

1.73x 1.79x

(Based on AFFO)

2.03x

2.09x

1.87x

1.96x

Substantially Lower Capital Expenditures Enhancing Free Cash Flow and Lowering

Leverage

Debt-to-Adjusted EBITDA 1

Capital Investments 2,3

4.35x $423

4.39x $408

4% $1,485

$2,476 (40%)

1 Does not represent leverage ratios measured for WMB credit agreement compliance or leverage ratios as calculated by the major credit ratings agencies. Debt is net of cash on hand, and Adjusted EBITDA reflects the sum of the last four quarters. 2 2019 excludes $728 million (net of cash acquired) for the purchase of the remaining 38% of UEOM as this amount was provided for at the close of the Northeast JV by our JV partner, CPPIB, in June 2019. 3 Includes increases to property, plant and equipment; purchases of businesses net of cash acquired; and purchases of and contributions to equity-method investments. Note: In $ millions except for ratios and per-share amounts. This slide contains non-GAAP financial measures. A reconciliation of all non-GAAP financial measures used in this presentation to their nearest comparable GAAP financial measures is included at the back of this presentation.

WMB fourth quarter results up 4%

WMB Adjusted EBITDA ($MM): 4Q 2019 vs. 4Q 2020

Ongoing Performance

$1,350

$1,300

$1,250

$1,200

4Q 2020

4Q 2019

1 Includes stepdown in non-cash deferred revenue amortization for Gulfstar (-$24mm), Wamsutter MVC cash payment attributable to 1Q '20 - 3Q '20 but recognized in 4Q '20 (+$20mm) and non-cash inventory write downs, derivative and other inventory impacts on NGL marketing margin in the West (+$2mm)

Note: This slide contains non-GAAP financial measures. A reconciliation of all non-GAAP financial measures used in this presentation to their nearest comparable GAAP financial measures is included at the back of this presentation.

ONGOING PERFORMANCE DRIVERS

> TRANSMISSION & GOM

Increased revenue driven by transmission expansion projects and lower segment costs; Partially offset by $10 million of hurricane-related shut-ins in the Deepwater Gulf of Mexico

> NORTHEAST G&P

Increased JV EBITDA primarily due to higher gathering volumes and increased ownership in Blue Racer as well as lower segment costs

> WEST

Decreased revenue due to lower G&P volumes and lower JV EBITDA; Partially offset by higher G&P rates and step up in MVC commitments as well as lower segment costs

This is an excerpt of the original content. To continue reading it, access the original document here.

Attachments

  • Original document
  • Permalink

Disclaimer

The Williams Companies Inc. published this content on 22 February 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 February 2021 21:25:18 UTC.