Williams : 3Q‘22 WMB Earnings Webcast Presentation

10/31/2022 | 03:22pm EST

NYSE: WMB | www.williams.com

Williams 3rd Quarter 2022 Earnings Call

November 1, 2022

Solid execution drives strong 3Q results

ANNUAL ADJ. EBITDA

2018

~8% CAGR1

ADJ. EBITDA (2018-2022G)

Strength of	Financial Growth	Value Chain
Our Assets	and Stability	Integration
Strong gathering and transmission	Adjusted EBITDA near high-end of	Further advancing our integrated clean
volumes and continued progress on	guidance range driven by strong	energy value chain strategy through
announced projects	fundamentals and base business stability	announced partnerships and acquisitions
2019	2020	2021	2022G

Delivering shareholder value through consistent Adjusted EBITDA growth year-over-year

1Anticipated CAGR based on high-end of 2022 Adjusted EBITDA guidance range

NYSE: WMB I Williams 3rd Quarter 2022 Earnings Call 11/01/22 I www.williams.com

Strong third quarter results across key financial metrics

Strong Financial Performance		3Q	3Q	Change
Across Key Metrics		2022	2021


Adjusted EBITDA	$1,637	$1,420	15%
Adjusted Earnings per Share	$0.48	$0.35	37%
Available Funds from Operations	$1,241	$1,080	15%
Dividend Coverage Ratio (AFFO basis)		2.40x	2.17x	11%


Balance Sheet Strength and
Capital Discipline

Debt-to-Adjusted EBITDA1		3.68x	4.04x
Capital Investments2,3	$526	$469	12%

3Q YTD	3Q YTD	Change
2022	2021


$4,644	$4,152	12%
$1.29	$0.96	34%
$3,561	$3,028	18%
2.29x	2.03x	13%

$1,271

$1,206

1Does 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.

2Capital Investments includes increases to property, plant, and equipment (growth & maintenance capital), purchases of businesses, net of cash acquired, purchases of and contributions to equity-method investments and purchases of other long-term investments. 33Q capital excludes $424 million for the purchase of the NorTex assets, which closed August 31, 2022. YTD capital excludes the $424 million NorTex acquisition as well as $933 million for purchase of the Trace Midstream Haynesville gathering assets, which closed April 29, 2022. 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.

NYSE: WMB I Williams 3rd Quarter 2022 Earnings Call 11/01/22 I www.williams.com

Delivered 15% growth 3Q'22 vs. 3Q'21

WMB Adjusted EBITDA ($MM): 3Q 2022 vs. 3Q 2021

Core Business Performance

$1,750
			$80	$4	$10	$1,637
$1,600			$22	Gas & NGL	Other
		$41	Marketing
		West	Services
	$60
		Northeast
$1,450	$1,420	Transmission	G&P

		& Gulf of
	Upstream	Mexico
	in Other
$1,300
$1,150
$1,000	3Q 2021					3Q 2022

Core business

performance drivers

Transmission & GOM

Increased revenues primarily from Transco's Leidy South expansion project and higher Gulf of Mexico volumes; Partially offset by higher operating and maintenance costs

Northeast G&P

Higher volumes at Ohio Valley Midstream and Laurel Mountain Midstream (LMM) and higher rates primarily at LMM; Partially offset by lower Bradford cost of service rates

West

Increased revenues driven by increased gathering volumes from Trace and the legacy Haynesville systems and higher gathering rates

Gas and NGL Marketing Services

Increased revenues driven by higher realized margins; Partially offset by $54 million lower of cost or market adjustment to inventories

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.

NYSE: WMB I Williams 3rd Quarter 2022 Earnings Call 11/01/22 I www.williams.com

Achieved 12% growth 3Q'22 YTD vs. 3Q'21 YTD

WMB Adjusted EBITDA ($MM): 3Q'22 YTD vs. 3Q'21 YTD

Core business

performance drivers

Transmission & GOM

Increased revenues primarily from Transco's Leidy

$4,900

Core Business Performance

South expansion project, higher Gulf of Mexico volumes and higher NGL margins; Partially offset by higher operating and maintenance costs

					$188	$32	$6	$4,644

						Gas & NGL	Other
$4,500
			$79		Marketing
					Services
			$82
				West
		$182
			Northeast
$4,152	($77)		Transmission	G&P

$4,100			& Gulf of
		Mexico
	Net Winter	Upstream
	Storm	in Other
	Benefit1
$3,700
$3,300								3Q'22 YTD
3Q'21 YTD

1Includes net benefit of 2021 winter storm in Gas & NGL Marketing Services, Upstream operations in Other segment and in the West (unfavorable impact).

Northeast G&P

Higher volumes at Ohio Valley Midstream and Laurel Mountain Midstream (LMM) and higher rates primarily at LMM; Partially offset by lower Bradford cost of service rates and higher operating and administration costs

West

Increased revenues driven by higher gathering rates and increased volumes from Trace and the legacy Haynesville systems

Gas & NGL Marketing Services

Increased marketing margins driven by favorable commodity pricing, transportation contracts and market volatility; Partially offset by $64 million lower of cost or market adjustment to inventories

NYSE: WMB I Williams 3rd Quarter 2022 Earnings Call 11/01/22 I www.williams.com

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The Williams Companies Inc. published this content on 31 October 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 October 2022 20:21:26 UTC.

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Williams : 3Q‘22 WMB Earnings Webcast Presentation

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