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

Williams Companies, Inc. (the) — The Williams Companies — Investor Presentation (April 2020)

18 slides from Williams Companies, Inc. (the)'s investor presentation, Apr 22, 2020

  1. Slide 1: Proposed Tariff Modifications

    NYSE: WMB | www.williams.com Proposed Tariff Modifications Customer Focused and Market Orientated April 22, 2020 WILLIAMS © 2020 The Williams Companies, Inc. All rights reserved. NYSE: WMB | www.williams.com 1

  2. Slide 2: Agenda

    Agenda  Meeting Kickoff Daniel Drew  Agenda and Meeting Format Hector Alatorre  OFO Changes Discussion Sharon Larsen  Application of new OFO Structure Rich Truxell  Over/Under Run Changes Discussion Mike DiCarlo  Q&A Various  Next Steps Gennifer Raney WILLIAMS © 2020 The Williams Companies, I

  3. Slide 3: Operation Flow Order Discussion

    Operation Flow Order Discussion WILLIAMS © 2020 The Williams Companies, Inc. All rights reserved. NYSE: WMB | www.williams.com 3

  4. Slide 4: Changes to tariff GT&C Section 51 and 52

    Changes to tariff GT&C Section 51 and 52 Tariff Changes  Eliminate Section 51 (Operational Controls) and incorporate cumulative imbalance restrictions into Operational Flow Order Section 52.  Two new OFO types will be: – Reduce Cumulative imbalance OFOs which require a party’s cumulative monthly i

  5. Slide 5: Customer Forum – Proposals: OFO Changes

    Customer Forum – Proposals OFO Changes Tariff Changes  Penalties will also be dependent on the OFO Class called:  Class 1 OFO – will allow for penalty tiering: – Penalty Tier 1 –$5.00 for quantities that are up to 1.5% above tolerance. – Penalty Tier 2 –$10.00 for quantities that are greater than

  6. Slide 6: Example of new OFO tiering

    Example of new OFO tiering Daily OFO Imbalance Due From Zone 6 Total Allocated Delivery Qty less Imbalance Imbalance Tolerance Penalty Qty = Exclusions Percent Qty Qty (Imb – Tolerance) 451,887 12% 55,000 10,000 45,000 Class 1 (2% of Allocated Deliveries or 10,000 dth) 9,038 Lower Upper Penalty Pena

  7. Slide 7: Example of Reduce Cumulative OFO

    Example of Reduce Cumulative OFO Reduce Cumulative Imbalance OFO shall require Buyers to reduce the cumulative monthly imbalance attributable to the Buyer, over the time specified in the OFO (minimum of three (3) Gas Days, one of which must be a business day), to no greater than the tolerance percen

  8. Slide 8: Example 2 of Reduce Cumulative OFO

    Example 2 of Reduce Cumulative OFO Class 1 Reduce Cumulative OFO Called on Day 15 10% Due From to be Effective Day 18 Cumulative Imbalance Deliveries Tolerance Penalty Thursday OFO Day 1 Gas days 1-15 15,000 120,000 12,000 3,000 3 day grace No penalty Friday OFO Day 2 Gas days 1-16 28,000 240,000 24

  9. Slide 9: Example of Maintain Cumulative OFO

    Example of Maintain Cumulative OFO Maintain Cumulative Imbalance OFO The OFO shall require Buyers to maintain for the duration of the OFO the cumulative monthly imbalance attributable to Buyer at the time of the OFO notice. Any change in such cumulative imbalance attributable to a Buyer in excess of

  10. Slide 10: Example 2 of Maintain Cumulative OFO

    Example 2 of Maintain Cumulative OFO M ai nt ai n Cum ul at i ve O FO - m ust m ai nt ai n i m bal ance w it hi n i m bal ance t hr eshol d of 2% or 10, 000 dt s ( w hi chever i s gr eat er ) f r om dat e cal l ed. Shipper B: Imbalance tolerance used is 2% of cumulative imbalance Thresholds Outside

  11. Slide 11: Example of Scheduling OFO

    Example of Scheduling OFO Class 1 Scheduling OFO - Directed at Shippers 5% Tolerance or 10,000 dth 5000 Location A Scheduled Allocated Difference Tolerance OFO Penalty Shipper A 100,000 120,000 20,000 10,000 10,000 Shipper B 50,000 50,000 0 2,500 Shipper C 15,000 15,000 0 750 Penalty Tiers for Shipp

  12. Slide 12: Daily Overrun and Underrun Discussion

    Daily Overrun and Underrun Discussion WILLIAMS © 2020 The Williams Companies, Inc. All rights reserved. NYSE: WMB | www.williams.com 12

  13. Slide 13: Changes to tariff GT&C Section 18 Unauthorized Daily Overrun

    Changes to tariff GT&C Section 18 Unauthorized Daily Overrun  Changes to the Allowable Daily Dispatching Variations. This is the quantity of unauthorized overrun that is subject to Tier 1 penalty. Currently, the Allowable Daily Dispatching Variation is a seasonal percentage of the sum of: – (1) all

  14. Slide 14: Unauthorized Daily Overrun Example – 5% Tolerance

    Unauthorized Daily Overrun Example – 5% Tolerance Allowable Daily Dispatching Variation Current Traditional Allocated 20,000 Non-Traditional Allocated 30,000 GSS Allocated 4,000 Secondary Scheduled 5,000 Zone 6 Swing Service Delivery IT Scheduled 10,000 69,000 Point Tolerance 5% Allowable Daily Disp

  15. Slide 15: Changes to Tariff GT&C Section 18 Unauthorized Daily Underrun

    Changes to Tariff GT&C Section 18 Unauthorized Daily Overrun  Unauthorized Daily Underrun is a daily penalty for Swing Service Delivery point operators that flow less than scheduled quantities at their location(s).  Unauthorized Daily Underruns DO NOT include low-burn transactions scheduled on: FT

  16. Slide 16: Unauthorized Daily Underrun Example – 10% Tolerance

    Unauthorized Daily Underrun Example – 10% Tolerance Zone 6 Swing Service Delivery Point Measured = 80,184 Scheduled Allocated Traditional Delivery 60,000 40,000 Non-Traditional Delivery 70,000 44,000 Secondary Delivery 30,000 8,184 IT Delivery 10,000 0 0 -12,000 Bundled Storage Injection Tolerance C

  17. Slide 17: Williams Contact Information

    Williams Contact Information  Rich Truxell, Gas Control [email protected]  Brett Snyder, Director Gulf Coast Market Area [email protected]  Robert Biffle, Manager, NE Market Area [email protected]  Mike DiCarlo, Mgr. Gulf Coast Market Area [email protected]

  18. Slide 18: Thank You

    THANK YOU WILLIAMS © 2020 The Williams Companies, Inc. All rights reserved. NYSE: WMB | www.williams.com 18

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