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Q1 2009 Earning Report of Williams Companies, Inc.
- 1. First Quarter 2009 Earnings
Steve Malcolm
Chairman, President & CEO
The Williams Companies, Inc. / February 1, 2009 / 1
© 2009 The Williams Companies, Inc. All rights reserved.
- 2. Forward Looking Statements
Our reports, filings, and other public announcements may 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 Litigation Reform Act of 1995. You
typically
t i ll can id tif f
identify forward-looking statements by th use of forward-looking words, such as “ ti i t ” b li
d l ki tt t b the ff d l ki d h “anticipate,” believe,” “
” “could,” “
ld ” “continue,” “estimate,”
ti ” “ ti t ”
“expect,” “forecast,” “may,” “plan,” “potential,” “project,” “schedule,” “will,” and other similar words. These statements are based on our present intentions
and our assumptions about future events and are subject to risks, uncertainties, and other factors. In addition to any assumptions, risks, uncertainties or
other factors referred to specifically in connection with such statements, other factors not specifically referenced could cause our actual results to differ
materially from the results expressed or implied in any forward-looking statements. Those factors include, among others:
• availability of supplies (including the uncertainties inherent in assessing, estimating, acquiring and developing future natural gas reserves), market
demand, volatility of prices, and the availability and cost of capital;
• inflation, interest rates, fluctuation in foreign exchange, and general economic conditions (including the current economic slowdown and the disruption
of global credit markets and the impact of these events on our customers and suppliers);
• the strength and financial resources of our competitors;
• development of alternative energy sources;
• the impact of operational and development hazards;
• costs of, changes in, or the results of laws, government regulations (including proposed climate change legislation), environmental liabilities, litigation,
and rate proceedings;
• our costs and funding obligations for defined benefit pension plans and other postretirement benefit plans;
• changes in maintenance and construction costs;
• changes in the current geopolitical situation;
• risks related to strategy and financing, including restrictions stemming from our debt agreements, future changes in our credit ratings and the
availability and cost of credit;
• risks associated with future weather conditions;
• our exposure to the credit risks of our customers;
• acts of terrorism, and
• additional risks described in our filings with the Securities and Exchange Commission.
Given the uncertainties and risk factors that could cause our actual results to differ materially from those contained in any forward-looking statement,
we caution investors not to unduly rely on our forward-looking statements. In addition to causing our actual results to differ, the factors listed above
may cause our intentions to change. Such changes in our intentions may also cause our results to differ. We disclaim any obligation to and do not
intend to publicly update or revise any forward-looking statements or changes to our intentions, whether as a result of new information, future events or
forward looking
otherwise.
The Williams Companies, Inc. / February 1, 2009 / 2
© 2009 The Williams Companies, Inc. All rights reserved.
- 3. 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 quot;unrisked theoretical resource estimatesquot; that the SEC’s guidelines strictly
prohibit us from including in filings with the SEC. The SEC defines proved reserves as estimated hydrocarbon quantities that geological and
engineering data demonstrate with reasonable certainty to be recoverable in the future from known reservoirs under the assumed economic
conditions. Probable and possible reserves are estimates of potential reserves that are made using accepted geological and engineering analytical
techniques, but which are estimated with reduced levels of certainty than for proved reserves. Generally under such techniques, probable reserve
estimates are more than 50% certain and possible reserve estimates are less than 50% but more than 10% certain. Unrisked theoretical
resource estimates are even less certain than those for possible reserves and are not risk adjusted. Unrisked theoretical resource estimates include
(i) an estimate of hydrocarbon quantities for new areas for which we do not have sufficient information to date to classify the resources as probable or
even possible reserves and (ii) the amount by which we have reduced our probable and possible reserves for existing areas to take into account the
reduced level of certainty of recovery of the resources. Unlike probable and possible reserves, unrisked theoretical resource estimates do not take
into account the uncertainty of resource recovery and are therefore not indicative of the expected future recovery and should not be relied upon.
Reference to “Resource Potential” includes proved, probable and possible reserves as well as unrisked theoretical resource estimates that might
never be recoverable and are contingent on exploration success, technical improvements in drilling access, commerciality and other factors.
Investors are urged to closely consider the disclosures and risk factors in our annual report on Form 10-K filed with the Securities and Exchange
Commission on Feb. 25, 2009, and our quarterly reports on Form 10-Q available from our offices or from our website at www.williams.com.
The Williams Companies, Inc. / February 1, 2009 / 3
© 2009 The Williams Companies, Inc. All rights reserved.
- 4. Recession knocks down 1Q profitability
Dramatically lower energy commodity p
y gy y prices drive lower
adjusted EPS
• $0.22 adjusted EPS is 61% below y
$ j year-ago level
g
• Average net realized price for U.S. production was 36% lower at
$4.21/Mcfe
• Per-unit NGL margins dropped 69% from year-ago
Stable,
S bl steady earnings and cash fl
d i d h flows f
from G Pi li
Gas Pipeline, our
business most insulated from commodity prices
The Williams Companies, Inc. / February 1, 2009 / 4
© 2009 The Williams Companies, Inc. All rights reserved.
- 5. 1st quarter financial results
1Q
2009 2008
Dollars in millions, except per-share amounts
Income (loss) from Continuing
$(165)
( ) $416
Operations:
Income (loss) from Discontinued
(7) 84
Operations:
Net Income (loss) (172) 500
Net Income (loss) /Share (Diluted EPS) $(0.30) $0.84
Recurring Income from Continuing
$0.18 $0.57
Operations/Share
Recurring Income from Continuing
$0.22
$0 22 $0.57
$0 57
Ops. after MTM Adjustments/Share
Note: All amounts are attributable to Williams. A more detailed schedule reconciling income from continuing operations to recurring income from continuing
Williams
operations after mark-to-market adjustments is available on the Williams’ Web site at www.williams.com and at the end of this presentation. Per-share
amounts are presented on a fully diluted basis.
The Williams Companies, Inc. / February 1, 2009 / 5
© 2009 The Williams Companies, Inc. All rights reserved.
- 6. 1st quarter segment profit (loss)
Recurring
Reported
2009 2008 2009 2008
Dollars in millions, except per-share amounts
Exploration & Production $78 $430 $117 $312
Midstream Gas & Liquids (291) 261 81 261
Gas Pipeline 179 180 179 180
Subtotal $(34) $871 $377 $753
Gas Marketing Services (2) 21 (2) 21
Other 1 1 1 1
Total Segment Profit (loss) $(35) $893 $376 $775
MTM Adjustments for Gas Marketing 36 (3)
Services
Segment Profit after MTM Adjustments $412 $772
Memo:
$34 $18
Gas Marketing Services after MTM Adj.
The Williams Companies, Inc. / February 1, 2009 / 6
© 2009 The Williams Companies, Inc. All rights reserved.
- 7. Successfully executing strategy in recession
Making significant progress
• Entered Marcellus Shale play
• Announced plans to expand Canadian operations with new NGL pipeline
• Increased excess liquidity with $600 million debt issue
• Demonstrated add’l support for Williams Partners LP
• Produced 4% more gas in U.S. vs. last quarter
• Received approval to expand our Northwest system to transport add’ll Piceance gas
add
• Continued progress toward bringing strategic infrastructure projects into service
Economic environment is far from last year’s super-charged
energy-commodity markets
• Energy commodity prices show little strength
– Crude prices were down 56% from robust year-ago levels
year ago
– Natural gas spot was off 47% from year-ago
– Williams’ 1Q ’09 average net realized price for U.S. E&P production was off 36%
from 1Q ’08 level
o Q 08 e e
• Industrial demand reflects reduced level of business activity, manufacturing
The Williams Companies, Inc. / February 1, 2009 / 7
© 2009 The Williams Companies, Inc. All rights reserved.
- 8. Entering Marcellus Shale with Midstream JV
Sweet spot of basin
JV with Atlas Pipeline
Partners for gathering
position
$102 million cash; $25.5
million note payable
Expect strong after-tax
return
t
550k-acre dedication
Rapid-growth p
pg potential –
’09 volumes are up 30%
from ’08 level
Substantial opportunity to
service other producers
i th d
in the future with large
scale, highly reliable
systems
The Williams Companies, Inc. / February 1, 2009 / 8
© 2009 The Williams Companies, Inc. All rights reserved.
- 9. Base business anchors new NGL pipeline
Low-risk investment Fort McMurray
Extraction Plant
Suncor agreement support
Utilizes WMB international
Liquids
cash reserves Pipeline
261-mile NGL pipeline from
Fort McMurray to Redwater
Fractionator
125k b/d capacity vs. Redwater
Fractionator
Williams
Williams’ current production
of 14k b/d
Provides capacity for growth
in the oil sands area
$283 million total capital;
most spending in
2011-12
The Williams Companies, Inc. / February 1, 2009 / 9
© 2009 The Williams Companies, Inc. All rights reserved.
- 10. Commodity Price Assumptions & Financial Impacts
2009 Assumption 2009 Assumption 2008
(April 30, 2009)
30 (Feb. 19,
(Feb 19 2009) Actuals
$40.00 – $60.00
Crude Oil1 $45.00 – $60.00 $104.34
$4.50 $6.00
$4 50 – $6 00
Natural Gas1 $4.00 – $5.00 $9.03
8.9x – 10.0x
Crude to Gas Ratio1 11.3x – 12.0x 11.6x
$0.22 – $0.35
Average NGL Margins2 $0.23 – $0.38 $0.61
$2,150 – $2,450
CapEx & Investments3 $2,250 – $2,550 $3,586
$1,350 – $1,925
Recurring Segment Profit4 $1,325 – $1,850 $2,819
$0.60 – $1.10
Diluted EPS4 $0.55 – $0.95 $2.15
Notes: 2008 actual commodity prices reflect an average of futures contracts settlement prices. 1Oil = WTI and Natural Gas = Henry Hub.
2Dollars per gallon. 3Dollars in millions and includes purchases of investments. 4Amounts attributable to Williams; recurring; and adjusted
to remove the effect of mark-to-market accounting.
The Williams Companies, Inc. / February 1, 2009 /10
© 2009 The Williams Companies, Inc. All rights reserved.
- 11. Continuing to execute on our 2009 priorities
Maintaining strong balance sheet and liquidity
Liquidity – $600 million added in March through debt offering
Investment-grade credit rating – agencies removed negative watch
Driving down costs through rigorous execution and expense
discipline
Seeing rapid drop in many operating costs
Bringing key infrastructure projects online i ’09 -’10
Bi i k i f t t jt li in ’10
• Total investment of $1.6 billion; annual expected segment profit contribution is $250 million*
• Midstream – Willow Creek, Paradox, Blind Faith, Perdido Norte
• Gas Pi li
G Pipeline – S ti l C l d H b
Sentinel, Colorado Hub
Right-sizing capital spending
Cut ’09 spending to $2.4 billion*; primary reduction is in commodity-sensitive business
Retain flexibility
Seizing opportunities
• Consistent with focus on spending discipline and financial strength
Geographic diversity – strategic Midstream acquisition moves us into Marcellus Shale
*Midpoint of guidance.
The Williams Companies, Inc. / February 1, 2009 /11
© 2009 The Williams Companies, Inc. All rights reserved.
- 12. Strength and stability
Strong financial position
• $3.067 billion of liquidity as of April 28
• Investment-grade credit rating
• No significant debt maturities until 2011; primary credit facilities don’t expire until
2012 and 2013
d
• Flexibility to adjust capital spending further in response to market conditions
• Our business and capex strategies are built on foundation of continued financial
strength
Stable foundation of cash flows
• Integrated structure best suited to capture value in today’s challenging market and in
recovery
• Significant business insulated from market prices, economic conditions
• Gas Pipeline and fee-based Midstream businesses are key cash-generators
• Expect $1 2 billion – $1 4 billion cash flows* in ’09 from price risk-insulated business;
$1.2 $1.4 09 risk insulated
additionally 62% of E&P production revenue is hedged
• ’09 capital budget and dividend requirement fully funded from operating cash flow and
cash on hand
• ’10 capital budget and dividend requirement expected to be fully funded from operating
cash flow
*Segment profit plus DD&A.
The Williams Companies, Inc. / February 1, 2009 /12
© 2009 The Williams Companies, Inc. All rights reserved.
- 13. Built on a strong foundation
Well-positioned to weather the economic storm
• Strong financial position
• Stable foundation of cash flows
• Ability to adjust spending
• Integrated model best suited for success
Substantial upside to current valuation
• Market recovery and more normal commodity prices will drive value accretion across
our asset base
• Significant expansion projects coming online
• Substantial probable and potential low risk reserves
low-risk
• Expect expansion of valuation multiple as financial markets improve
Attractive risk / reward balance
• Foundation of low-risk, cash-generating businesses
• Upside as commodity prices return to normal levels
• Disciplined investment p
p process
• Track record of disciplined execution of value-driving initiatives
The Williams Companies, Inc. / February 1, 2009 /13
© 2009 The Williams Companies, Inc. All rights reserved.
- 14. Non-GAAP Reconciliations
The Williams Companies, Inc. / February 1, 2009 /14
© 2009 The Williams Companies, Inc. All rights reserved.
- 15. Non-GAAP Disclaimer
This presentation includes certain financial measures, recurring earnings and recurring segment profit, that are non-GAAP financial
measures as defined under the rules of the Securities and Exchange Commission Recurring earnings exclude items of income or
Commission.
loss that the company characterizes as unrepresentative of its ongoing operations. Recurring earnings and recurring segment profit
provide investors meaningful insight into the Company’s results from ongoing operations. This presentation is accompanied by a
reconciliation of these non-GAAP financial measures to their nearest GAAP financial measures. Management uses these financial
measures because they are widely accepted financial indicators used by investors to compare company performance. In addition,
management believes that these measures provide investors an enhanced perspective of the operating performance of the
Company’s assets and the cash that the business is generating. Neither recurring earnings and recurring segment profit are intended
to represent cash flows for the period, nor are they presented as an alternative to net income or cash flow from operations. They
should not be considered in isolation or as substitutes for a measure of performance prepared in accordance with United States
generally accepted accounting principles.
Certain financial information in this presentation is also shown including Gas Marketing Services mark-to-market adjustments. This
presentation is accompanied by a reconciliation of these non-GAAP financial measures to their nearest GAAP financial measures.
Management uses the mark-to-market adjustments to better reflect Gas Marketing’s results on a basis that is more consistent with
Gas Marketing’s portfolio cash flows and to aid investor understanding. The adjustments reverse forward unrealized mark-to-market
gains or losses from derivatives and add realized gains or losses from derivatives for which mark-to-market income has been
previously recognized, with the effect that the resulting adjusted segment profit is presented as if mark-to-market accounting had
never been applied to Gas Marketing Services’ derivatives. The measure is limited by the fact that it does not reflect potential
unrealized future losses or gains on derivative contracts. However, management compensates for this limitation since derivative
assets and liabilities do reflect unrealized gains and losses of derivative contracts. Overall, management believes the mark-to-market
adjustments provide an alternative measure that more closely matches realized cash flows for the Gas Marketing segment but does
not substitute for actual cash flows. We also apply the mark-to-market adjustment and the recurring adjustments to present a
measure referred to as recurring income from continuing operations after mark-to-market adjustments.
The Williams Companies, Inc. / February 1, 2009 /15
© 2009 The Williams Companies, Inc. All rights reserved.
- 16. Non-GAAP Reconciliation
Non-GAAP Reconciliation Schedule
Reconciliation of Income (Loss) from Continuing Operations Attributable to The Williams Companies, Inc. to Recurring Earnings
(UNAUDITED)
2008 2009
(Dollars in millions, except per-share amounts)
(D ll i illi h ) 1st Q
1 Qtr 2nd Q
2 d Qtr 3rd Q
3 d Qtr 4th Q
4 h Qtr Year
Y 1st Q
1 Qtr
Income (loss) from continuing operations attributable to The Williams Companies, Inc.
available to common stockholders $ 416 $ 419 $ 369 $ 130 $ 1,334 $ (165)
Income (loss) from continuing operations - diluted earnings per common share $ 0.70 $ 0.70 $ 0.62 $ 0.23 $ 2.26 $ (0.29)
Nonrecurring items:
Exploration & Production (E&P)
Gain on sale of Peru interests $ (118) $ (30) $ - $ - $ (148) $ -
Reserve for receivables from bankrupt counterparty - 5 4 - 9 -
Impairments of property in the Arkoma basin - - 14 129 143 5
Accrual for Wyoming severance taxes - - - 34 34 -
Penalties from early release of drilling rigs - - - - - 34
Total Exploration & Production nonrecurring items (118) (25) 18 163 38 39
Gas Pipeline
Gain on sale of excess inventory gas - TGPL - (9) - - (9) -
Gain on sale of certain south Texas assets - TGPL - - (10) - (10) -
Total Gas Pipeline nonrecurring items - (9) (10) - (19) -
Midstream Gas & Liquids (MGL)
Impairment of Carbonate Trend pipeline - - - 6 6 -
Involuntary conversion gain related to Ignacio gas processing plant - (3) (6) (3) (12) 1
Reserve for receivables from bankrupt counterparty - 1 - - 1 -
Final earnout payment from 2005 Gulf Liquids asset sale - - (8) - (8) -
Charges from Hurricanes Gustav & Ike - - 8 5 13 -
Involuntary conversion gain from hurricane damage at Cameron - - - (5) (5) -
Gulf Liquids litigation partial settlement - - - (32) (32) -
Loss associated with Venezuela operations and investments - - - - - 371
Total Midstream Gas & Liquids nonrecurring items
q g - ()
(2) ()
(6) ()
(29) ()
(37) 372
Nonrecurring items included in segment profit (loss) (118) (36) 2 134 (18) 411
Nonrecurring items below segment profit (loss)
Interest related to Gulf Liquids litigation partial settlement - MGL - - - (11) (11) -
Interest related to Wyoming severance taxes - E&P - - - 4 4 -
Loss associated with Venezuela operations and investments - MGL & E&P - - - - - 15
Loss associated with Venezuela operations and investments attributable to noncontrolling interests - MGL - - - - - (69)
- - - (7) (7) (54)
(118) (36) 2 127 (25) 357
Total
T t l nonrecurring items
i it
[1]
Tax effect for above items (45) (14) 1 49 (9) 86
Adjustment for nonrecurring tax-related items - - - - - -
$ 343 $ 397 $ 370 $ 208 $ 1,318 $ 106
Recurring income from continuing operations available to common stockholders
$ 0.57 $ 0.67 $ 0.63 $ 0.35 $ 2.23 $ 0.18
Recurring diluted earnings per common share
598,627 596,187 589,138 587,057 592,719 579,495
Weighted-average shares - diluted (thousands)
[1] The tax effect for the first quarter of 2009 includes a benefit of $71 million related to Midstream's impairments and write-offs associated with Venezuela operations.
Note: The sum of earnings per share for the quarters may not equal the total earnings per share for the year due to changes in the weighted-average number of common shares outstanding.
The Williams Companies, Inc. / February 1, 2009 /16
© 2009 The Williams Companies, Inc. All rights reserved.
- 17. Non-GAAP Reconciliation
Non-GAAP Reconciliation
Schedule – Recurring Segment Profit
Reconciliation of Segment Profit (Loss) to Recurring Segment Profit (Loss)
(UNAUDITED)
2008 2009
(Dollars in millions) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr
Segment profit (loss):
Exploration & Production $ 430 $ 496 $ 361 $ (27) $ 1,260 $ 78
Gas Pipeline 180 179 173 157 689 179
Midstream Gas & Liquids 261 295 254 153 963 (291)
Gas Marketing Services 21 (46) 16 12 3 (2)
Other 1 (1) (2) (1) (3) 1
Total segment profit (loss) $ 893 $ 923 $ 802 $ 294 $ 2,912 $ (35)
Nonrecurring adjustments:
Exploration & Production $ (118) $ (25) $ 18 $ 163 $ 38 $ 39
Gas Pipeline - (9) (10) - (19) -
Midstream Gas & Liquids - (2) (6) (29) (37) 372
Gas Marketing Services - - - - - -
Other - - - - - -
Total segment nonrecurring adjustments $ (118) $ (36) $ 2 $ 134 $ (18) $ 411
Recurring segment profit (loss):
Exploration & Production $ 312 $ 471 $ 379 $ 136 $ 1,298 $ 117
Gas Pipeline 180 170 163 157 670 179
Midstream Gas & Liquids 261 293 248 124 926 81
Gas Marketing Services 21 (46) 16 12 3 (2)
Other 1 (1) (2) (1) (3) 1
Total recurring segment profit $ 775 $ 887 $ 804 $ 428 $ 2,894 $ 376
Note: Segment profit (loss) includes equity earnings and income (loss) from investments reported in investing income (loss) in the Consolidated Statement of
Operations. Equity earnings results from investments accounted for under the equity method. Income (loss) from investments results from the
management of certain equity investments.
The Williams Companies, Inc. / February 1, 2009 /17
© 2009 The Williams Companies, Inc. All rights reserved.
- 18. Non-GAAP Reconciliation
Non-GAAP Reconciliation
Schedule – EPS after MTM adjustment
Adjustment to remove MTM impact
Dollars in millions except per share amounts
2009
1Q
$ 106
Recurring income from cont. ops available to common shareholders
Recurring diluted earnings per common share $ 0.18
36
Mark-to-Market (MTM) adjustments:
(14)
Tax effect of total MTM adjustments
22
After tax MTM adjustments
Recurring income from cont. ops available
$ 128
to common shareholders after MTM adjust.
Recurring diluted earnings per share after MTM adj. $ 0.22
weighted average shares - diluted (thousands) 579,495
2008
1Q
$ 343
Recurring income from cont. ops available to common shareholders
Recurring diluted earnings per common share $ 0.57
(3)
Mark-to-Market (MTM) adjustments:
1
Tax effect of total MTM adjustments
(2)
After tax MTM adjustments
Recurring income from cont. ops available
$ 341
to common shareholders after MTM adjust.
Recurring diluted earnings per share after MTM adj. $ 0.57
weighted average shares - diluted (thousands) 598,627
Notes:
– All amounts attributable to Williams
The Williams Companies, Inc. / February 1, 2009 /18
© 2009 The Williams Companies, Inc. All rights reserved.
- 19. Non-GAAP Reconciliation
1Q 2009 Segment Contribution
Dollars in millions
E&P Midstream Gas Pipeline Gas Marketing Other Total
Segment Profit $ 78 $ (291) $ 179 $ (2) $ 1 $ (35)
DD&A 219 61 83 - 4 $ 367
Segment Profit before DDA
g $ 297 $ (230)
( ) $ 262 $ ()
(2) $ 5 $ 332
General Corporate Expenses (40)
Investing Loss* (9)
Net Loss Attributable to Noncontrolling Interests 52
Other Loss (2)
TOTAL $ 333
*Excluding equity earnings and loss from investments contained in segment profit
Notes:
– All amounts attributable to Williams
The Williams Companies, Inc. / February 1, 2009 /19
© 2009 The Williams Companies, Inc. All rights reserved.
- 20. Non-GAAP Reconciliation
2009 Forecast Guidance Contribution
2009
Dollars in millions, except per share amounts
per-share
Income from Continuing Operations: $49 – 289
Non-Recurring It
NR i Items (P t )
(Pretax) 357
Less Taxes 86
Non-Recurring After Tax 271
Recurring Income from Cont. Ops 320 – 560
Recurring EPS $0.53 – $0.93
Mark-to-Market Adjustment (
j (Pretax)
) 20
Less Taxes @ 39% 8
Mark-to-Market Adjust. After Tax 12
Inc.
Inc from Cont. Ops after MTM Adj.
Cont Adj 332 – 572
Inc. from Cont. Ops after MTM Adj. EPS $0.55 – $0.95
Note:
– All amounts attributable to Williams
The Williams Companies, Inc. / February 1, 2009 /20
© 2009 The Williams Companies, Inc. All rights reserved.
- 21. Non-GAAP Reconciliation
2009 Forecast Segment Contribution
Gas Mktg 1
E&P Midstream Gas Pipeline Total
Dollars in millions
$28 – 378 3 $894 – 1,419 2
Reported Segment Profit $236 – 411 $630 – 670 $(40) – 0
1,375 – 1,475 2
DD&A 775 – 875 230 – 240 325 – 345 0
$2,269 – 2,894 2
Seg. Profit Before DDA $1,011 – 1,286 $258 – 618 $955 – 1,015 $(40) – 0
General Corporate & Other (150) – (160)
Net Income Attributable to Noncontrolling Interests (16) – (101)
Rounding (3) – (8)
TOTAL
$2,100 – 2,625 2
1 Segment Profit is prior to MTM adjustments
Sum of the ranges for the business units does not match the consolidated total due to the offsetting effect of natural gas prices within our business units
2
3 Includes impairments and write-offs associated with Venezuelan operations of $370 million
Additionally, corporate and other is not forecast separately but is included in the total guidance.
The Williams Companies, Inc. / February 1, 2009 /21
© 2009 The Williams Companies, Inc. All rights reserved.