Williams Companies, Inc. (the) · NYSE:WMB
Williams Companies, Inc. (the) — The Williams Companies — Q2 2007 Earnings Presentation
77 slides from Williams Companies, Inc. (the)'s earnings presentation, Aug 2, 2007
Slide 1: Williams 2007 2nd Quarter Earnings
Williams 2007 2nd Quarter Earnings August 2, 2007 © 2007 The Williams Companies, Inc. All rights reserved.
Slide 2: Forward Looking Statements
Forward Looking Statements Our reports, filings, and other public announcements might contain or incorporate by reference statements that do not directly or exclusively relate to historical facts. Such statements are “forward-looking statements” within the meaning of the Private Securities Litigatio
Slide 3: Forward Looking Statements (cont.)
Forward Looking Statements (cont.) • Our ability to receive services from outsourcing provider locations outside the United States might be impacted by cultural differences, political instability, or unanticipated regulatory requirements in jurisdictions outside the United States; • We could be held
Slide 4: Oil and Gas Reserves and Resource Potential Disclaimer
Oil and Gas Reserves and Resource Potential Disclaimer The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves. We have used certain terms in this presentation such as “probable” reserves and “possible” reserves and "unrisked theoretical resource estima
Slide 5: Overview
Overview Steve Malcolm Chairman, President & CEO © 2007 The Williams Companies, Inc. All rights reserved.
Slide 6: Tremendous 2nd Quarter Performance
Tremendous 2nd Quarter Performance > Key Performance Measure Jumps 48% to 43¢ > Up From 29¢ in 2Q ’06 > Results, Forecast Drive Improved Earnings Outlook > Integrated Businesses Deliver Robust Earnings > Higher NGL Margins Fuel Record Midstream Segment Profit > Higher Production Volumes, Higher Pric
Slide 7: Delivering Shareholder Value
Delivering Shareholder Value > Power Sale – Closing Getting Closer > Creating New, Pipeline MLP > Continuing to Execute Midstream MLP Strategy with Williams Partners > Moving Forward with $1 Billion Stock Repurchase Program > Investing in Abundant, Value-Creating Growth Opportunities © 2007 The Will
Slide 8: Financial Results
Financial Results Don Chappel Chief Financial Officer © 2007 The Williams Companies, Inc. All rights reserved.
Slide 9: Consolidated Financial Results
Consolidated Financial Results 2nd Quarter YTD Dollars in millions ( except per share amounts) 2007 2006 2007 2006 Income (loss) from Continuing Operations $244 $(59) $414 $73 Income (loss) from Discontinued Operations 189 (17) 153 (17) Net Income (loss) $433 $(76) $567 $56 Net Income (loss) /Share
Slide 10: Recurring Income from Continuing Operations
Consolidated Recurring Income from Continuing Operations 2nd Quarter YTD Dollars in millions ( except per share amounts) 2007 2006 2007 2006 Income (loss) from Continuing Operations $244 $ (59) $414 $ 73 Nonrecurring Items Reduction in Regulatory Liability (16) - (16) - Debt Retirement Expense - 4 -
Slide 11: Recurring Income from Cont. Ops. after MTM Adjustment
Consolidated Recurring Income from Cont. Ops. after MTM Adjustment 2nd Quarter YTD Dollars in millions ( except per share amounts) 2007 2006 2007 2006 Recurring Inc. from Cont. Ops. Avail. to Common $222 $118 $387 $255 Recurring Diluted Earnings per Common Share $0.36 $0.20 $0.63 $0.43 Mark-to-Marke
Slide 12: 2nd Quarter Segment Profit
Financial Results 2nd Quarter Segment Profit Dollars in millions Reported Recurring 2007 2006 2007 2006 Exploration & Production (See Slide 46) $209 $120 $209 $120 Midstream Gas & Liquids (See Slide 53) 250 131 250 199 Gas Pipeline (See Slide 60) 174 123 158 123 Subtotal $633 $374 $617 $442 Gas Mark
Slide 13: YTD Segment Profit
Financial Results YTD Segment Profit Dollars in millions Reported Recurring 2007 2006 2007 2006 Exploration & Production (See Slide 46) $397 $267 $397 $267 Midstream Gas & Liquids (See Slide 53) 404 282 396 344 Gas Pipeline (See Slide 60) 324 257 307 255 Subtotal $1,125 $806 $1,100 $866 Gas Marketin
Slide 14: Exploration & Production
Exploration & Production Ralph Hill President © 2007 The Williams Companies, Inc. All rights reserved.
Slide 15: E&P 2007 Accomplishments
Exploration & Production 2007 Accomplishments > 2Q ’07 total production 945 Recurring Segment Profit + Depreciation MMcfed, up 20% compared to 400 2Q ’06 350 300 > 2Q ’07 segment profit up 75% 250 compared to 2Q ‘06 $MM 200 150 > Rig fleet high-grading 100 continues 50 0 > Bolt-on acquisitions of 1Q
Slide 16: 1Q '07 E&P remains a Leader in Production Growth
Exploration & Production 1Q ’07 E&P remains a Leader in Production Growth Quarterly U.S. Daily Natural Gas Production Top 20 U.S. Gas Producers Top 20 U.S. Gas Producers (sorted by 2007 MMcfd) (sorted by Percent Change) MMcfd MMcfd Percent MMcfd MMcfd Percent Company Q1 2007 Q1 2006 Change Company Q
Slide 17: Basin Highlights
Exploration & Production Basin Highlights > Piceance Valley Williams' Total Piceance Production > 497 MMcfd, up 25% over one year ago > 18 rigs operating, (25 with Highlands) Valley Highlands 550 > SIMOPS* continuing to improve 500 Net MMcfed cycle times 450 400 350 300 > Piceance Highlands 250 2Q '
Slide 18: Basin Highlights (cont.)
Exploration & Production Basin Highlights (cont.) > San Juan Williams' San Juan Production > Steady production of 147 MMcfd 200 over year ago Net MMcfed 150 > Solid performer in mature basin > Optimization efforts paying dividends 100 > 2Q ‘07 scheduled plant maintenance affected volumes 50 2Q '06 3
Slide 19: 93% Domestic Production Not At Rockies Prices
Exploration & Production 93% Domestic Production Not At Rockies Prices 2Q 2007 Sales Points > Total Domestic Production of 898 Other MMcfed 3% • 29% (260 MMcfed) at Rockies prices before hedging Rockies • 71% (638 MMcfed) produced or hedges Mid 22% transported to other price points Continent 27% • R
Slide 20: Key Points – Value Creation Continues
Exploration & Production Key Points – Value Creation Continues > An industry leader in production growth and cost efficiencies > Continued strong reserves replacement through the drill bit > Long-term repeatable drilling inventory of significant proved undeveloped, probables, and possibles > Strateg
Slide 21: Midstream
Midstream Alan Armstrong President © 2007 The Williams Companies, Inc. All rights reserved.
Slide 22: Midstream 2007 Accomplishments
Midstream 2007 Accomplishments Recurring Segment Profit + Depreciation > Record quarter for recurring 350 segment profit 300 > NGL unit margins set historic records 250 > Exercised Right of First 200 Refusal for BASF’s interest in $MM Geismar 150 > Progress made on Canadian 100 Oil Sands 50 > Signed
Slide 23: Significant Progress Made on Growth Projects
Midstream Significant Progress Made on Growth Projects In Development/Proposal (2007+) Under Negotiation (2007+) In Guidance(2007+) Spending $1,100-1,200MM Spending $700MM–1,100MM Spending $450MM–650MM 25% 30% 15% 40% 35% 60% 20% 45% 25% 5% Deepwater Canadian Oil Sands Western Overland Pass Olefins
Slide 24: Midstream Key Points
Midstream Key Points > Dramatic increase in segment profit guidance > NGL margins set new record highs > Well positioned for growth in three areas > Continuing to differentiate our business on reliability © 2007 The Williams Companies, Inc. All rights reserved. Williams 2007 Second Quarter Earnings
Slide 25: 2007-08 Consolidated Outlook
2007-08 Consolidated Outlook Don Chappel Chief Financial Officer © 2007 The Williams Companies, Inc. All rights reserved.
Slide 26: 2007 Forecast Guidance
Consolidated 2007 Forecast Guidance Aug 2 May 3 Dollars in millions, except per-share amounts Guidance Guidance Segment profit before MTM adjustment $2,085 - $2,350 $1,833 - $2,283 Net Interest Expense (640) - (700) (640) - (700) Other (Primarily General Corp. Costs) (140) - (160) (140) - (170) Pret
Slide 27: 2007-08 Segment Profit
Consolidated 2007-08 Segment Profit Dollars in millions 2007 2008 Exploration & Production $750 - 950 $950 - 1,250 700 - 975 Midstream 700 - 850 550 - 825 500 - 750 Gas Pipeline 625 - 655 625 - 675 585 590 - 665 Gas Marketing (75) - (50) 15 - 55 Other / Corp. / Rounding (15) - 20 (15) - 35 23 - (22)
Slide 28: 2007-08 Capital Expenditures
Consolidated 2007-08 Capital Expenditures Dollars in millions 2007 2008 Exploration & Prod. $1,400 - 1,500 $1,250 - 1,400 1,300 - 1,400 Midstream 650 - 700 525 - 575 550 - 600 475 - 525 Gas Pipeline 460 - 565 285 - 410 425 - 535 Gas Marketing - - Other/Corporate 10 - 30 10 - 30 Total $2,575 - 2,775
Slide 29: 2007-08 Outlook
Consolidated 2007-08 Outlook Dollars in millions 2007 2008 Segment Profit Reported After MTM Adj. $2,160 - 2,425 $2,090 - 2,805 1,958 - 2,408 2,125 - 2,975 Recurring After MTM Adj. 2,135 - 2,400 2,090 - 2,805 1,950 2,125 - 2,975 DD&A 1,010 - 1,110 1,150 - 1,250 1,130 - 1,230 Cash Flow from Ops.1 2,0
Slide 30: Summary
Summary Steve Malcolm Chairman, President & CEO © 2007 The Williams Companies, Inc. All rights reserved.
Slide 31: Tremendous Quarter, Stronger Forecast – Value-Creating
Tremendous Quarter, Stronger Forecast – Value-Creating > Integrated Businesses Delivering Value > Key Performance Measure Jumps 48% > Results, Forecast Drive Improved Earnings Outlook > Higher NGL Margins Fuel Record Midstream Segment Profit > Higher Production Volumes, Higher Prices > Higher Pipeli
Slide 32: Q&A
Q&A © 2007 The Williams Companies, Inc. All rights reserved.
Slide 33: Non-GAAP Reconciliations
Non-GAAP Reconciliations © 2007 The Williams Companies, Inc. All rights reserved.
Slide 34: Non-GAAP Disclaimer
Non-GAAP Disclaimer This presentation includes certain financial measures, EBITDA, recurring earnings, operating free cash flow and recurring segment profit, that are non-GAAP financial measures as defined under the rules of the Securities and Exchange Commission. EBITDA represents the sum of net in
Slide 35: Non-GAAP Reconciliation Schedule
Non-GAAP Reconciliation Non-GAAP Reconciliation Schedule © 2007 The Williams Companies, Inc. All rights reserved. Williams 2007 Second Quarter Earnings / August 2, 2007 / 35
Slide 36: Non-GAAP Reconciliation Schedule
Non-GAAP Reconciliation Non-GAAP Reconciliation Schedule Reconciliation of Segment Profit to Recurring Segment Profit (UNAUDITED) 2006 2007 (Dollars in millions) 1st Qtr* 2nd Qtr* 3rd Qtr* 4th Qtr* Year* 1st Qtr* 2nd Qtr Year Segment profit (loss): Exploration & Production $ 147.6 $ 119.8 $ 144.5 $
Slide 37: Non-GAAP Reconciliation Schedule – EPS after MTM adjustment
Non-GAAP Reconciliation Non-GAAP Reconciliation Schedule – EPS after MTM adjustment Dollars in millions except per share amounts 2007 2Q Year Recurring income from cont. ops available to common shareholders $ 222 $ 387 Recurring diluted earnings per common share $ 0.36 $ 0.63 Mark-to-Market (MTM) ad
Slide 38: EBITDA Reconciliation
Non-GAAP Reconciliation EBITDA Reconciliation Dollars in millions 2Q07 YTD Net Income $ 433 $ 567 Income from Discontinued Operations (189) (153) Net Interest Expense 165 333 DD&A 268 516 Provision for Income Taxes 152 257 EBITDA $ 829 $ 1,520 © 2007 The Williams Companies, Inc. All rights reserved.
Slide 39: 2Q 2007 Segment Contribution
Non-GAAP Reconciliation 2Q 2007 Segment Contribution Dollars in Millions E&P Midstream Gas Pipeline Gas Marketing Other Total Segment Profit (Loss) $ 209 $ 250 $ 174 $ (63) $ 1 $ 571 DD&A 131 53 79 1 4 $ 268 Segment Profit (Loss) before DDA $ 340 $ 303 $ 253 $ (62) $ 5 $ 839 General Corporate Expens
Slide 40: YTD 2007 Segment Contribution
Non-GAAP Reconciliation YTD 2007 Segment Contribution Dollars in Millions E&P Midstream Gas Pipeline Gas Marketing Other Total Segment Profit (Loss) $ 397 $ 404 $ 324 $ (93) $ 1 $ 1,033 DD&A 245 107 156 2 6 $ 516 Segment Profit (Loss) before DDA $ 642 $ 511 $ 480 $ (91) $ 7 $ 1,549 General Corporate
Slide 41: 2007 Forecast EBITDA Reconciliation
Non-GAAP Reconciliation 2007 Forecast EBITDA Reconciliation Aug 2 May 3 Dollars in millions Guidance Guidance Income from Continuing Ops. $780 - 900 $635 - 850 Net Interest 640 - 700 640 - 700 DD&A 1,010 - 1,110 1,010 - 1,110 Provision for Income Taxes 525 - 590 418 - 563 Other/Rounding (5) - 0 (3)
Slide 42: 2007 Forecast Segment Contribution
Non-GAAP Reconciliation 2007 Forecast Segment Contribution Corp/ Dollars in millions E&P Midstream Gas Pipeline Gas Mktg 1 Other Total Segment Profit (Loss) $750 - 950 $700 - 850 $625 - 655 $(75) - (50) $(15) - 20 $2,085 - 2,350 2 DD&A 485 - 535 210 - 220 310 - 330 0 5 - 25 1,010 - 1,110 Seg. Profit
Slide 43: 2007 Forecast Guidance Contribution
Non-GAAP Reconciliation 2007 Forecast Guidance Contribution Aug 2 May 3 Dollars in millions, except per-share amounts Guidance Guidance Income from Continuing Operations: $780 - 900 $635 - 850 Non-Recurring Items (Pretax) (28) (7) Less Taxes (2) (3) Non-Recurring After Tax (26) (4) Recurring Income
Slide 44: Appendix
Appendix © 2007 The Williams Companies, Inc. All rights reserved.
Slide 45: Exploration & Production
Exploration & Production © 2007 The Williams Companies, Inc. All rights reserved.
Slide 46: Segment Profit – Exploration & Production
Financial Results Segment Profit – Exploration & Production 2nd Quarter YTD Dollars in millions 2007 2006 2007 2006 Segment Profit $209 $120 $397 $267 Nonrecurring Recurring segment profit $209 $120 $397 $267 > 2Q07 to 2Q06 financial highlights: > 2007 YTD to 2006 YTD financial highlights: • 20% vol
Slide 47: E&P 2007-08 Guidance
Exploration & Production 2007-08 Guidance Dollars in millions 2007 2008 Segment Profit $750 - 950 $950 - 1,250 $700 - 975 Annual DD&A 485 - 535 575 - 625 Segment Profit + DD&A $1,235 - 1,485 $1,525 - 1,875 $1,185 -$1,510 Capital Spending $1,400 - 1,500 $1,250 - 1,400 $1,300 -$1,400 Production (MMcfe
Slide 48: Rockies Producer Not Necessarily a Rockies Price Taker
Exploration & Production Rockies Producer Not Necessarily a Rockies Price Taker > Rockies price risk managed through transport and basis hedges > Our contracted pipeline 209 150 capacity moves our Rockies production to 200 more favorable price markets 200 Firm Capacity Under Contract Wamsutter 200 2
Slide 49: Cash Margin Analysis
Exploration & Production Cash Margin Analysis 2-Year Average (2007-08) Previous $6.00 Previous $6.04 $4.08 $5.00 $4.00 $4.08 Cash Margin $3.00 $6.14 $2.00 $1.96 $1.00 $2.06 Cash Costs $1.47 $0.00 3 yr. Historical Realized Gas Price Margin/Cost Assumption F&D Costs Assumption Reflective of core basin
Slide 50: 2Q07 Net Realized Price Summary
Exploration & Production 2Q07 Net Realized Price Summary Unhedged Hedge Market Price: NYMEX $7.50 - $7.60 $4.11 NYMEX & Basis Collars 1.98 Basis Differential (1.50) - (1.60) (0.40) Net basin market price $5.90 - $6.10 $5.68 Net basin market price $5.90 - $6.10 $5.68 Fuel & Shrinkage/Gathering/ (0.50
Slide 51: 2007-08 Hedge Update
Exploration & Production 2007-08 Hedge Update 3Q-4Q Dollars in millions 2007 2008 Fixed Price at the basin Volume (MMcf/d) 171 73 Average Price ($/Mcf) $3.95 $3.96 Collars 1 Nymex Volume (MMcf/d) 15 Average Price ($/Mcf) $6.50 - $8.25 NWPL Volume (MMcf/d) 50 140 Average Price ($/Mcf) $5.65 - $7.45 $
Slide 52: Midstream
Midstream © 2007 The Williams Companies, Inc. All rights reserved.
Slide 53: Segment Profit - Midstream
Financial Results Segment Profit - Midstream 2nd Quarter YTD Dollars in millions 2007 2006 2007 2006 Segment Profit $250 $131 $404 $282 Nonrecurring Maintenance expense accrual reversal - - (8) - Accrual for Gulf Liquids litigation - 68 - 68 International Contract Settlement - - - (6) Recurring segm
Slide 54: Midstream 2007-08 Guidance
Midstream 2007-08 Guidance Dollars in millions 2007 2008 Segment Profit $700-850 $550 - 825 $500-750 Annual DD&A 210 - 220 240 - 250 205-210 220-230 Segment Profit + DD&A $910 – 1,070 $790 – 1,075 $705 - 965 $770 – 1,055 Capital Spending $650 – 700 $525 – 575 $550-600 $475 - 525 NGL Margins $450 – 6
Slide 55: Midstream Free Cash Flow - Forecast
Midstream Free Cash Flow - Forecast $1,100 Recurring Segment Profit & DDA $1,000 Guidance Mid-Point to High Case Upper Limit $900 Discretionary $800 Expansion Segment $’s in Millions Profit $700 Segment Profit + DDA $600 Capital Spending $500 Discretionary Expansion $400 $300 Historic Expansion $200
Slide 56: Margins Above Average
Midstream Margins Above Average Domestic NGL Average Realized Net Margin and Volumes by Quarter Realized Margin Total Production & Equity (Cents / Gallon) Volumes by Quarter (MM Gallons) 50 800 45 700 40 600 35 500 30 25 400 20 300 15 200 10 100 5 0 0 Q3'02 Q4'02 Q1'03 Q2'03 Q3'03 Q4'03 Q1'04 Q2'04
Slide 57: Venezuela Assets
Midstream Venezuela Assets Ownership of gas compression, gas processing, and NGL fractionation operations Net book value plus equity investments $437 MM Segment profit of $98.4 MM Project secured debt of $246 MM © 2007 The Williams Companies, Inc. All rights reserved. * All numbers reference
Slide 58: Gas Pipeline
Gas Pipeline © 2007 The Williams Companies, Inc. All rights reserved.
Slide 59: Gas Pipeline 2007 Accomplishments
Gas Pipeline 2007 Accomplishments Northwest: > Completed Parachute Lateral R e c ur r i ng S e gme nt P r of i t + D e pr e c i a t i on Pipeline 250 > Completed open season for 200 150 Colorado Hub Connection 100 Transco: 50 0 > Potomac Expansion Project 1Q 2Q 3Q 4Q construction underway, with in-
Slide 60: Segment Profit – Gas Pipeline
Financial Results Segment Profit – Gas Pipeline 2nd Quarter YTD Dollars in millions 2007 2006 2007 2006 Segment Profit $174 $123 $324 $257 Nonrecurring Excess royalty reserve reversal - - - (2) Regulatory Liability Reduction (17) - (17) - Recurring segment profit $157 $123 $307 $255 > 2Q07 to 2Q06 f
Slide 61: Gas Pipeline 2007-08 Guidance
Gas Pipeline 2007-08 Guidance Dollars in millions 2007 2008 Segment Profit $625 - 655 $625-675 585-655 590-665 Annual DD&A 310 - 330 310-340 320-340 Segment Profit + DD&A $935 - 985 $935 - 1015 895-985 910-1005 Capital Spending $460 - 565 $285 - 410 425-535 Note: If guidance has changed, previous gu
Slide 62: 2007-08 Capital Spending Detail
Gas Pipeline 2007-08 Capital Spending Detail Dollars in millions 2007 2008 Normal Maintenance/Compliance $250 - 300 $180 - 260 215-270 Expansion 210 - 265 105 - 150 Total $460 - 565 $285 - 410 425 - 535 Note: If guidance has changed, previous guidance from 05/03/07 is shown in italics directly below
Slide 63: Gas Pipeline Key Points
Gas Pipeline Key Points > Growth • Leidy to Long Island 12/07 • Potomac 11/07 > Strong Earnings / Return to Stable, Solid Free Cash Flow © 2007 The Williams Companies, Inc. All rights reserved. Williams 2007 Second Quarter Earnings / August 2, 2007 / 63
Slide 64: Enterprise Risk Management
Enterprise Risk Management © 2007 The Williams Companies, Inc. All rights reserved.
Slide 65: WMB Collateral Sensitivity
Enterprise Risk Management WMB Collateral Sensitivity Dollars in millions Margin Volatility (1% chance of exceeding) -Potential incremental collateral requirement Days 6/29/2007 3/30/2007 12/29/2006 9/29/2006 30 ($86) ($199) ($98) ($155) 180 ($236) ($442) ($434) ($459) 360 ($309) ($559) ($521) ($471
Slide 66: Sensitivity Analysis
Enterprise Risk Management Sensitivity Analysis Dollars in millions, except per unit increases Enterprise Risk Management Sensitivity Analysis 1 2 Enterprise Midstream Natural Gas Processing Margin Per MMBtu Per Gallon of NGL's Increase $0.10 $0.01 2007 $3-$5 MM $5-$7 MM 2008 $13-$16 MM $11-$14 MM 1
Slide 67: Natural hedges in our commodity businesses
Consolidated Natural hedges in our commodity businesses Economic Natural Gas Exposure for E&P and Midstream (Q3-Q4 2007-2008) E&P Gross Commodity Position 1,000,000 E&P Net Commodity Position Midstream Fuel & Shrink 750,000 E&P Length + Midstream Short 500,000 250,000 M M B tu /D a y 0 (250,000) Q3-
Slide 68: Consolidated
Consolidated © 2007 The Williams Companies, Inc. All rights reserved.
Slide 69: Commodity Price Summary
Consolidated Commodity Price Summary Un-hedged Commodity Price Assumptions 2007 2008 Exploration & Production: Natural Gas: Basin Prices Average Rockies $4.50 - $5.50 $5.10 - $6.40 Average San Juan / Mid-Continent $6.10 - $7.40 $6.10 - $7.40 NYMEX (reference only) $7.00 - $8.30 $7.00 - $8.30 Midstre
Slide 70: Liquidity at June 30, 2007
Consolidated Liquidity at June 30, 2007 Dollars in millions Cash and cash equivalents $ 1,739 Other current securities 246 Less: Subsidiary and Int'l cash & cash equivalents $ 468 Customer margin deposits payable 209 (677) Available unrestricted cash 1,308 Available revolver capacity 1,806 Total Liq
Slide 71: Debt Balance
Consolidated Debt Balance1 Dollars in millions Avg. Cost Debt Balance @ 12/31/06 $8,014 7.6% Scheduled Debt Retirements & Amortization (119) Debt Balance @ 3/31/07 $7,895 7.7% Additions 195 Early Retirements (175) Scheduled Debt Retirements & Amortization (4) Debt Balance @ 6/30/07 $7,911 7.6% Fixed
Slide 72: Debt Amortization – As of 6/30/2007
Consolidated Debt Amortization – As of 6/30/2007 Dollars in millions $1,250 $1,000 $750 1173 1170 $500 998 850 785 750 700 $250 385 270 244 208 22 7 85 100 80 54 43 8 10 $0 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 2
Slide 73: 2007 Interest Expense Forecast Guidance
Consolidated 2007 Interest Expense Forecast Guidance Dollars in millions 2007 Interest on Long-Term Debt $600 - $620 Amortization Discount/Premium and other 25 - 30 Debt Expense Credit Facilities: 35 - 45 (Incl. Commitment Fees Plus LC Usage) Interest on other Liabilities 10 - 20 Interest Expense $6
Slide 74: 2007 Effective Tax Rates
Consolidated 2007 Effective Tax Rates 2007 2007 2007 First Second Quarter Quarter Year-To-Date Statutory Rate 96 35% 138 35% 234 35% State 7 3% 9 2% 16 2% Foreign 3 1% 8 2% 11 2% Other (1) -1% (3) -1% (4) -1% Tax Provision 105 38% 152 38% 257 38% 2007 2008 Full Year Effective Tax Rate Guidance 40% 4
Slide 75: Earnings Per Share
Financial Results Earnings Per Share 2nd Quarter YTD 2007 2006 2007 2006 Continuing Operations $0.40 $(0.10) $0.68 $0.12 Discontinued Operations 0.31 (0.03) 0.25 (0.03) Net Income - Diluted 0.71 (0.13) 0.93 (0.09) Recurring Income from Continuing Operations 0.36 0.20 0.63 0.43 Recurring Cont. Operat
Slide 76: Reclassification of Power Business Segment
Reclassification of Power Business Segment Power Segment Component New Presentation •Portfolio of power related •Being sold to Bear Energy and contracts and certain related reported as discontinued assets operations •Hazleton electric •Being marketed for sale and generating plant reported as discont
Slide 77: The Williams Companies, Inc.
The Williams Companies, Inc. © 2007 The Williams Companies, Inc. All rights reserved.
The Williams Companies — Q2 2007 Earnings Presentation on 6ix