Williams Companies, Inc. (the) · NYSE:WMB
Williams Companies, Inc. (the) — The Williams Companies — Investor Presentation (August 2013)
32 slides from Williams Companies, Inc. (the)'s investor presentation, August 2013
Slide 1: Transco's Atlantic Sunrise Project
Transco’s Atlantic Sunrise Project August 2013 FOR DISCUSSION PURPOSES ONLY NOT AN OFFER OR ACCEPTANCE OF AN OFFER Atlantic Sunrise | August 2013 | NOT AN OFFER OR ACCEPTANCE OF AN OFFER © 2013 The Williams Companies, Inc. All rights reserved.
Slide 2: Forward-Looking Statements
Forward-Looking Statements The reports, filings, and other public announcements of The Williams Companies, Inc. and Williams Partners L.P. (WPZ) may contain or incorporate by reference statements that do not directly or exclusively relate to historical facts. Such statements are "forward-looking sta
Slide 3: Forward-Looking Statements continued
Forward-Looking Statements continued > Ability to acquire new businesses and assets and integrate those operations and assets into our existing businesses, as well as expand our facilities; > Development of alternative energy sources; > The impact of operational an d development hazards; > Costs of,
Slide 4: Williams At A Glance
Williams At A Glance Unique, large-scale energy- infrastructure assets strategically located to provide customers with access to the best markets 4 Atlantic Sunrise | August 2013 | NOT AN OFFER OR ACCEPTANCE OF AN OFFER © 2013 The Williams Companies, Inc. All rights reserved.
Slide 5: The Williams Companies
The Williams Companies > One of the leading energy infrastructure companies in North America > 15,000 miles of interstate gas pipelines > 1,000 miles of NGL transportation pipelines > 10,000 miles of oil and gas gathering pipelines > Daily gas processing capacity of 6.6 billion cubic feet of natural
Slide 6: Williams Operating Areas
Williams Operating Areas > Northeast Gathering & Processing – Consists of our existing Laurel Mountain, Appalachian Basin and Ohio Valley assets, and also oversees our investment in Caiman Ohio. > Atlantic Gulf – Consists of Transco’s 10,200-mile interstate pipeline that is a major supplier of natur
Slide 7: Transco: Nation's largest gas pipeline system
Transco: Nation’s largest gas pipeline system > First gas delivery was made on Dec. 5, 1950 to Danville, VA New York City > Official operations began on Jan. 16, Transco Deliveries * 1951 with deliveries into NYC Market Area % NC 100 Baltimore > System design capacity: 9.9 MMDthd NYC NJ 50 50 > Seas
Slide 8: Transco Peak Day Deliveries
Transco Peak Day Deliveries* 21% Increase 10.44 10.5 Peak Day 3 Day Peak 9.96 9.90 10 9.52 Quantity (MMdt/d) 9.5 9.25 9.25 9.00 8.99 9 8. 91 8.64 8.5 8.24 8.23 8 07- 08 08 - 09 09 - 10 10 - 11 11 - 12 12 – 13 7.5 1/2/08 1/2-4/08 2/5/09 2/3-5/09 1/3/10 1/2-4/10 12/14/10 12/13-15/10 1/3/12 1/3-5/12 1/
Slide 9: Transco System Overview
Transco System Overview System Facts LEIDY 91 MMDth > Peak design capacity 9.9 MMDth/d. W/D 1,328 MDth/d Zone 6 > ~ 10,200 miles of pipe Inj. 519 MDth/d STA. 240 LNG – 2,000 mainline miles 2 MMDth > 40 Mainline Compressor Stations W/D 399 MDth/d Inj. 10 MDth/d – 369 compressor units – 1.5 MM HP Zone
Slide 10: Transco System Flows
Transco System Flows Marcellus supplies on the Leidy Line continue to increase Zone 6 Rivervale '08-'09 71 MDthd TETCO’s TEMAX expansion delivers Rockies/Marcellus supplies Leidy ’12-’13 213 MDthd to Lower Chanceford '08-'09 1,171 MDthd ’12-’13 1,893 MDthd Mobile Bay volumes flow southward on
Slide 11: Marcellus Impact on Transco's System
Marcellus Impact on Transco’s System > Marcellus supply connected to Leidy Line can fully serve load downstream of Station 195 during certain shoulder periods > Situation could be exacerbated once projects are placed into service – NE Supply Link – Spectra NJ – NY project > Limitations on southbound
Slide 12: Future Projected Supply Usage
Future Projected Supply Usage • Future Expansion Projects will provide shippers Leidy Line interconnect capacity with contractual capacity as far south as Station 85 totals over 5.4 MMDthd from Marcellus production receipts Current flow approx. 2.8 MMDthd • Mainline becomes bi-directional New Yo
Slide 13: Zone 6 Constrained Areas
Zone 6 Constrained Areas 13 Atlantic Sunrise | August 2013 | NOT AN OFFER OR ACCEPTANCE OF AN OFFER © 2013 The Williams Companies, Inc. All rights reserved.
Slide 14: Zone 4 & 5 Constrained Areas
Zone 4 & 5 Constrained Areas 14 Atlantic Sunrise | August 2013 | NOT AN OFFER OR ACCEPTANCE OF AN OFFER © 2013 The Williams Companies, Inc. All rights reserved.
Slide 15: Why Transco Firm Service?
Why Transco Firm Service? > Firm Transportation (FT) service is provided through a primary path of capacity, as defined by the receipt and delivery points specified on a shipper’s service agreement, and is not subject to reduction or interruption except under force majeure conditions. – FT service p
Slide 16: Transco Zone 6 FT Rates
Transco Zone 6 FT Rates 5-5 6-6 6-5 > Motion Filing Rates (Docket No. RP12-993) (Including Electric Power) – Reservation $0.20083/dt $0.14752/dt $0.27860/dt – Commodity $0.01543/dt $0.00901/dt $0.02412/dt > Electric Power Charge – Reservation $0.00106/dt $0.00061/dt $0.00167/dt – Commodity $0.00471/
Slide 17: Northern Market Area Projects
Northern Market Area Projects Leidy Southeast • 27-42 mi. of 42-inch loop • Compression OH PA Leidy Hub Northeast Supply Link •12 mi. 42-inch loop • Compression Zone 6 New York City • Modifications NY NE Connector • Compression 210 Philadelphia Rockaway Lateral Project Name ISD MDth/d • 3.3 mi. 26-i
Slide 18: Southern Market Area Projects
Southern Market Area Projects Zone 6 210 Virginia Southside • 99 mi. of 24-inch pipe Richmond (including lateral) • Compression 160 Mid-South • 22.6 mi. of 42-inch loop • Compression Charlotte Atlanta Zone 5 Project Name ISD MDth/d Zone 4 Mid-South 2012/13 225 Mobile Bay South III 2014 325 85 Mobile
Slide 19: Constitution Pipeline LLC
Constitution Pipeline LLC > A 125-mile, 30-inch pipeline connecting Williams’ Midstream Gathering System in Susquehanna County, PA to Iroquois Gas Iroquois Wright Transmission and Tennessee Gas Pipeline & in Schoharie County, NY TGP Line 200 > Capacity: 650 MDth/d Otsego Chenango > New FERC-regulate
Slide 20: Atlantic Sunrise
Atlantic Sunrise 20 Atlantic Sunrise | August 2013 | NOT AN OFFER OR ACCEPTANCE OF AN OFFER © 2013 The Williams Companies, Inc. All rights reserved.
Slide 21: Project Path
Project Path Zone 6 Pennsylvania Maryland Virginia Zone 5 165 Access to Cove Point Pipeline North Carolina Zone 4 South Carolina Alabama Georgia 85 Access to Elba Express Pipeline Access to Sabal Trail Pipeline 21 Atlantic Sunrise | August 2013 | NOT AN OFFER OR ACCEPTANCE OF AN OFFER © 2013 The Wil
Slide 22: Open Season – Overview
NOTE: The following is intended to be a summary of the Open Season – Overview Open Season Notice, please reference the actual notice filed on Transco’s 1Line on August 8, 2013. > Atlantic Sunrise will provide from 450,000 dt/day to in excess of 1,000,000 dt/day of new, year-round firm transportation
Slide 23: Open Season – Overview
NOTE: The following is intended to be a summary of the Open Season – Overview Open Season Notice, please reference the actual notice filed on Transco’s 1Line on August 8, 2013. > Shippers must submit a Open Season Transportation Request form. > Anchor Shipper: – A shipper requesting at least 420,000
Slide 24: Atlantic Sunrise – Overview
Atlantic Sunrise – Overview > Atlantic Sunrise provides firm transportation service from various supply points along Transco’s Leidy Line in Pennsylvania to Dominion’s Cove Point Pipeline interconnect located in Fairfax County, Virginia and extends south to the Zone 4 / 4A Pools at Station 85 in Cho
Slide 25: Receipt Point Area (Between Grugan and Station 515)
Receipt Point Area (Between Grugan and Station 515) Wharton Storage Mountain Gathering (XTO) – Dry Run CNYOG- Leidy Storage Marc I 535 Anadarko- NFG Midstream- PVR- Grugan Tombs Run Liberty Drive PVR- Anadarko- PVR- Chapin Grugan 2 Quaker State PVR- Canoe Run Williams Field Services- Puddlefield XTO
Slide 26: Leidy Line Volumes Ramping Up
Leidy Line Volumes Ramping Up Marcellus Flow Volumes (MDth/d) 3,500 7/31/2013: 3,080 MDth/d 3,000 Marcellus Interconnect Capacity: 2,500 In Service: 5,446 MDth/d In Progress: 311 MDth/d MDth/d 2,000 1,500 1,000 500 0 26 Atlantic Sunrise | August 2013 | NOT AN OFFER OR ACCEPTANCE OF AN OFFER © 2013 T
Slide 27: Leidy Line Meter Stations (Grugan East)
Leidy Line Meter Stations (Grugan East) Leidy Line Activity (As of August 2013) Interconnect Meter 6-month Historical Interconnect Party Interconnect Name In-Service Date Design (Dts/Day) Avg. Vol. (Dts/Day) PVR NEPA Gas Gathering Barto 03/15/09 155,250 110,000 Pennsylvania General Energy Company Br
Slide 28: Marcellus Producers
Marcellus Producers Leidy Line 6-month Historical Producers Interconnects Avg. Vol. (Dts/Day) Barto Chesapeake, Enerplus, Exco 110,000 Breon Anadarko Petroleum, Exxon Mobil, Pennsylvania General Energy 150,000 Bull Run Vista 1 & 2 Anadarko Petroleum, Mitsui, Ultra 105,000 Canoe Run Anadarko Petroleu
Slide 29: Pipeline Key Delivery Points
Pipeline Key Delivery Points Point Name Location Status Zone Pleasant Valley bi-directional interconnect with Milepost 1586.20 on Transco’s mainline in Existing Zone 5 Dominion’s Cove Point Pipeline Fairfax County, Virginia. Boswell’s Tavern bi-directional interconnect with Milepost 1519.91 on Trans
Slide 30: Project Milestones – Proforma
Project Milestones – Proforma Deliverable Timing • Preliminary Marketing Effort March 2013 – July 2013 Development Project • Non-Binding Open Season August – September 2013 • Execute Binding Precedent Agreements October 31, 2013 • WMB / WPZ Board Consideration November 2013 • Initiate FERC Pre-Filin
Slide 31: Why Transco?
Why Transco? > We are a pipeline owner / operator with significant large project experience. – 19 projects completed since 2001 that added 3.2 Bcf of capacity to the Transco mainline. – 8 projects in the execution stage adding another 2.5 Bcf of capacity. > We offer a diversified supply portfolio. –
Slide 32: Transco Expansions – 12 Year Review
Transco Expansions – 12 Year Review > Strong track record of successfully building system expansions to meet the customers’ needs…when they need it. Project In-Service MDth/d MarketLink Phase 1 2001 166 MarketLink Phase 2 2002 130 Leidy East 2002 130 Trenton Woodbury 2003 51 Central New Jersey 2005
The Williams Companies — Investor Presentation (August 2013) on 6ix