Williams Virtual ESG Event
January 19, 2021
ESG Event I NYSE:1/19/2021WMBI www| www.williams.williams.com.com0
CEO Perspective
Alan Armstrong, President and Chief Executive Officer
NYSE: WMB | www.williams.com
Large-scale, irreplaceable natural gas infrastructure
Wamsutter
Southwest
Wyoming
DJ Basin
Piceance
Anadarko /
Mid-Con
Permian
Barnett Haynesville
Eagle Ford
Deepwater
Gulf of Mexico
Marcellus
+ Utica
Handling
30%
nation's
natural gas
1.26 million MT CO2 avoided each day by combusting
29.8 MMDth of gas v. coal 1
Transco
Nation's largest
and fastest
growing major
pipeline
Directly
Serving
600
customers
Indirectly
serving over
35 million energy
consumers 2
Serving
15
key supply
areas
- Coal and natural gas plant emissions rate and heat rate assumptions per EIA.
- Based on customer count statements of major gas and electric utilities served by Transco, Northwest Pipeline, and Gulfstream.
WILLIAMS © 2021 The Williams Companies, Inc. All rights reserved. | NYSE: WMB I Williams Virtual ESG Event I 1/19/2021 I www.williams.com 2 |
Sustainable strategy driven by long-term trend of
natural gas demand growth
OUR MISSION
Committed to being the leader in providing infrastructure that safely delivers natural gas products to reliably fuel the clean energy economy
WHO WE ARE
Safely and responsibly handle 30% of the natural gas in the United States that is used every day to heat our homes, cook our food and generate our electricity
Authentic | Safety Driven |
Reliable Responsible
Performers Stewards
WILLIAMS © 2021 The Williams Companies, Inc. All rights reserved. | NYSE: WMB I Williams Virtual ESG Event I 1/19/2021 I www.williams.com 3 |
Natural gas
remains a global fuel for the
ESG Event I 1/19/2021 I www.williams.com 4
Strong performance across several key
ESG ratings and rankings
Williams' ESG Risk Rating places it in the top 3% of the Refiners and Pipelines industry assessed by Sustainalytics
Ranked in the top 7% of industry peer group and included in Dow Jones
Sustainability Index North America
As of December 24, 2020 | As of November 13, 2020 |
Recognized with a 'B' score for its | As of 2020, Williams received |
commitment to transparency and | |
governance around climate change, ranking | an MSCI ESG Rating of BB, |
above the sector average of 'C' and North | illustrating its ongoing |
America regional average of 'D' | emphasis on ESG developments |
As of December 15, 2020 | As of November 6, 2020 |
The use by Williams of any MSCI ESG Research LLC or its affiliates ("MSCI") data, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement, recommendation, or promotion of Williams by MSCI. MSCI services and data are the property of MSCI or its information providers and are provided 'as-is' and without warranty. MSCI names and logos are trademarks or service marks of MSCI.
WILLIAMS © 2021 The Williams Companies, Inc. All rights reserved. | NYSE: WMB I Williams Virtual ESG Event I 1/19/2021 I www.williams.com 5 |
Leading ESG efforts with relentless commitment to sustainable operations and increased disclosures
Joined ONE | Announced Solar | Joined RNG | |
Future Coalition | Project Initiative | ||
Coalition | |||
June 2019 | May 2020 | Alan Armstrong | |
Midstream ESG | |||
Initiative | |||
December 2020 |
Microsoft
Partnership
Pending 2021
Williams Virtual
ESG Event
January 2021
WILLIAMS © 2021 The Williams Companies, Inc. All rights reserved. | NYSE: WMB I Williams Virtual ESG Event I 1/19/2021 I www.williams.com 6 |
Sustainability Highlights
Debbie Cowan, SVP and Chief Human Resources Officer Lane Wilson, SVP and General Counsel
Micheal Dunn, EVP and Chief Operating Officer
NYSE: WMB | www.williams.com
Authentic
Building a culture of authenticity leads to a collective mindset that transcends differences.
This allows for inclusion, acceptance and, ultimately, belonging.
Debbie Cowan, Senior Vice President & Chief Human Resources Officer
Commodity Optimization Rep, | Operations Manager, | Environmental Specialist, |
Quincy J. | Ben K. | Amy L. |
WILLIAMS © 2021 The Williams Companies, Inc. All rights reserved. | NYSE: WMB I Williams Virtual ESG Event I 1/19/2021 I www.williams.com 8 |
Jennifer H.
Project Analyst
Mohamed Y.
Knowledge Services
Aaron M.
Project Manager
Social performance
- 29% of our management team is female or ethnic minority
- Year over year from 2019-2020, our female leadership representation increased from 16% to 19%; ethnic minority leadership representation stayed relatively flat
- 19% of our office/professional staff is ethnic minority
- 34% of our office/professional staff is female
- On average, 27% of our early career program hires were ethnic minority and 40% were female over the past 5 years
- 5% voluntary turnover rate
- 10% of employees promoted
- $10 million annually invested in community
Based on 2020 reporting
CEO Action for Diversity &
Inclusion Coalition
D&I Council
Metrics Dashboard
Diversity & Inclusion Training
and Tools & Resources
Candid Conversations
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Reliable Performers
We stand behind our reputation as a dependable and trustworthy business that delivers on its promises and
is committed to strong corporate governance.
Lane Wilson, Senior Vice President & General Counsel
WILLIAMS © 2021 The Williams Companies, Inc. All rights reserved. | NYSE: WMB I Williams Virtual ESG Event I 1/19/2021 I www.williams.com 10 |
Long history of strong corporate governance
• Williams recognized as a Trendsetter in political disclosure practices and accountability in the 2020 CPA-Zicklin Index
• 12 of 13 Williams Board members are independent
• A gender diverse board since 2008
• Management-levelESG Director appointed to develop and execute strategy
• 10% of Annual Incentive Program targets composed of environmental and safety metrics
• National Diversity Council named Debbie Cowan one of 50 Most Powerful Women in Oil & Gas
• Named 2020 Top Inclusive Workplace by Mosaic
Board of Directors | Stacey Doré | Debbie Cowan |
Board of Directors | SVP & Chief Human | |
Elected December 2020 | Elected January 2021 | Resources Officer |
WILLIAMS © 2021 The Williams Companies, Inc. All rights reserved. | NYSE: WMB I Williams Virtual ESG Event I 1/19/2021 I www.williams.com 11 |
Safety Driven
Safeguarding our people and neighbors is engrained in our culture and fundamental to everything we do.
Micheal Dunn, Executive Vice President & Chief Operating Officer
WILLIAMS © 2021 The Williams Companies, Inc. All rights reserved. | NYSE: WMB I Williams Virtual ESG Event I 1/19/2021 I www.williams.com 12 |
COVID-19 response minimizes
disruption to our business
> Utilizing existing centralized emergency call numbers for employee self-reporting of symptoms or potential exposure to COVID-19
> Following CDC guidance for contact tracing and quarantine
> Implemented measures in our offices and field locations to include:
- Voluntary work from home
- Schedules reducing office occupancy
- High-risk/childcareaccommodations
- Business continuity plans for critical infrastructure employees
> Focusing on data
- Response decisions are data
focused, including review of external and internal data
WILLIAMS © 2021 The Williams Companies, Inc. All rights reserved. | NYSE: WMB I Williams Virtual ESG Event I 1/19/2021 I www.williams.com 13 |
Safety is core to our operations
Williams' Process Safety Incident Trend | ||||
Williams' TRIR vs. Industry | ||||
Since 2017 | Since 2017 |
-50%
-72%
2017 | 2018 | 2019 | 2017 | 2018 | 2019 |
Represents industry benchmark
Note: Total Recordable Incident Rate (TRIR) = Total number of recordable injuries and/or illnesses x 200,000/number of work hours; There is not an external benchmark for Process Safety, but Williams' data shows a trend based upon API 754 process safety metrics.
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Focus on public safety drives our reputation as a reliable operator
811 One Call
- Extensive line marking and flagging of assets
- Responded to 215,000 One Call tickets
2019 SUSTAINABILITY REPORT HIGHLIGHTS
Public Awareness
- Mailed more than 1 million communications to key stakeholders
- Excavators
- Landowners
- Farmers
- Schools
- Public Officials
Emergency Preparedness
- Robust incident support management system
- Full-scaledrills
- Severe weather & wildfire monitoring/ response
- Pandemic business continuity plan
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Responsible Stewards
We are dedicated to strengthening our communities and to protecting the environment.
Micheal Dunn, Executive Vice President & Chief Operating Officer
WILLIAMS © 2021 The Williams Companies, Inc. All rights reserved. | NYSE: WMB I Williams Virtual ESG Event I 1/19/2021 I www.williams.com 16 |
Maintaining and strengthening
relationships by understanding local
needs, listening to stakeholder
priorities and identifying
opportunities to collaborate
Stakeholder outreach
2019 SUSTAINABILITY REPORT HIGHLIGHTS
Conducted 40 meetings with Native American tribes
Hosted more than 100 community engagements
Maintained relationships with more than 100,000 landowners
Reached mutual agreements with landowners ~93% of the time
Note: Data is from 2019 Sustainability report (published in 2020)
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Environmental reporting
2019 SUSTAINABILITY REPORT HIGHLIGHTS
60% | 60% reduction in | 10% | Established '20 goal to |
reduce reportable air | |||
environmental notices of | |||
non-compliance since '17 | releases by an additional | ||
10% from '19 levels |
39% decrease in | 39% | 52% reduction in | 52% |
reportable spills to soil | reportable air releases | ||
and water from '18 levels | from '18 levels |
Note: Data is from 2019 Sustainability report (published in 2020)
WILLIAMS © 2021 The Williams Companies, Inc. All rights reserved. | NYSE: WMB I Williams Virtual ESG Event I 1/19/2021 I www.williams.com 18 |
Climate Commitment
Alan Armstrong, President and Chief Executive Officer Micheal Dunn, EVP and Chief Operating Officer
NYSE: WMB | www.williams.com
Key climate commitment drivers
As a midstream industry leader, Williams believes we can successfully sustain and evolve our business as the world moves to a low carbon future, while also helping our customers and stakeholders meet their climate goals.
Global Cooperation | Technology Investment |
Economically Sustainable | Regulatory Certainty |
Measurable Progress | Science Driven |
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Committed to a clean energy future
Williams recognizes the risks of climate change and our strategy provides a practical and immediate path to reduce industry emissions and grow a clean energy economy
Right Here, Right Now Opportunities
Goal: 56% absolute reduction in company-wide
greenhouse gas emissions by 2030
Leverage our natural gas-focused strategy and technology that is available today to focus on immediate opportunities to reduce emissions, scale renewables and build a clean energy economy.
Future Innovation and Technologies
Our path to net zero by 2050 involves a combination of immediate and long-term solutions, including investments in renewables, technology and the best and brightest talent who are committed to doing what is right.
Note: 56% absolute reduction measured against 2005 emissions
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Significant improvements in emissions efficiency
Williams greenhouse gas emissions vs. natural gas handled
Significant growth since 2005
- Transmission capacity up over 100%
- Gathering volumes up nearly 3x
Emissions down while business scales up
- Improving operations efficiency
- Implementing operating practices focused on safety and emissions reductions
- Modernizing equipment and investing in new technologies
Volume + Capacity (Bcf/d) 1
40
35
30
25
20
15
10
5
0
22.6
14.3
2005
Volume + Capacity
34.4
12.7
2019
GHG Emissions
25 | Emissions |
20 | |
15 | Gas |
5 | |
Greenhouse | |
10 | |
0 |
(Million metric tons CO2e)
- For 2005, E&P net volumes: 0.7 Bcfe/d; Firm reserved transmission capacity (Transco, NWP and Gulfstream): 10 Tbtu/d; Gathering volumes: 3.4 Tbtu/d; gas used in power tolling agreements: 0.2 Bcf/d. For 2019, Firm reserved transmission capacity (Transco, NWP and Gulfstream): 21.5 Tbtu/d; Gathering volumes:12.9 Bcf/d. Tbtu converted to Bcf at 1,000 btu per cf.
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Our strategy provides a practical
and immediate path to reduce industry emissions
Williams Path To 56% Absolute Reduction In Company-wide Greenhouse Gas Emissions By 2030
Measured In Million Metric Tons Of Carbon Dioxide Equivalent (Million MT CO2e)
2005-2030
44% Achieved
From 2005 Baseline of
22.6 million MT CO2e
12.7
12.2
11.6
11.1
10.5
10.0
Optimizing | Operational | Solar | 2030 Goal of |
Operations | Design | Projects | 56% Reduction |
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Our path to net zero by 2050 involves a combination of
immediate and long-term solutions
POTENTIAL %
REDUCTION*
Elements of a Net Zero Approach
Reduce methane through work practices; Voluntary Leak Detection | <15% |
and Repair (LDAR) and blowdown minimization | |
Evaluate opportunities to cost-effectively reduce methane emitting | <5% |
equipment (e.g., rod packing, pneumatic devices, etc.) | |
Increase renewable power generation to supply electric | <20% |
compression/demand | |
Collaborate with peers and customers on reduction strategies | >10% |
through Williams-led initiatives (ERP, etc.), research organizations | |
and trade groups | |
Pursue renewable natural gas opportunities | >25% |
Prepare for next-generation technologies/approaches - including | >25% |
Carbon Capture, Use and Storage (CCUS) and hydrogen as a | |
fuel source |
*2018-2050 target
WILLIAMS © 2021 The Williams Companies, Inc. All rights reserved. | NYSE: WMB I Williams Virtual ESG Event I 1/19/2021 I www.williams.com 24 |
Innovation and Emerging Opportunities
Chad Zamarin, SVP Corporate Strategic Development
NYSE: WMB | www.williams.com
DedicatedRenewablesteam to lead the way to
netzerocarbon emissions by 2050
Strategy &
Market
Intelligence
Communications | |
& | Renewables |
Corporate Social | |
Responsibility |
Strategic
Development
Government | Corporate & |
Affairs | |
Business | |
& | |
Development | |
Outreach | |
Deal
Evaluation &
Prioritization
- Renewables team to commercially develop emerging opportunities
- Solar Initiative
- Renewable Natural Gas
- Developing sectors
- Dedicated strategy team with annual process
- On-goingmarket intelligence and monitoring of market fundamentals
- Experienced business and corporate development teams to lead enterprise initiatives
- Consistent communication and positive impact across key stakeholders, including public, elected officials and regulatory bodies
WILLIAMS © 2021 The Williams Companies, Inc. All rights reserved. | NYSE: WMB I Williams Virtual ESG Event I 1/19/2021 I www.williams.com 26 |
Transco best positioned to support power
generation shift to gas from coal
Williams' U.S. Asset Map, Highlighting Third-party Operating Coal Plants
77
Coal Plants;
75 GW
Net Summer
Capacity
Equates to
386 MM
mt CO2 reduction
Equates to
+11.8
Bcf/d natural
gas1
Equates to
84 MM
cars off the road annually
Operating coal plant in Transco Pipeline states
Sources: Coal plant data per Velocity Suite; Coal and natural gas plants emissions rates and heat rate assumptions per EIA; Metric tons of CO2 emitted by a typical passenger vehicle per year per EPA
- Using 6,800 Btu/kWh heat rate, 100% plant utilization
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Leveraging our footprint to create value and new revenue generation
Emerging Opportunities
Current Solar Project | Current RNG Project | Potential CCUS / H2 |
Development Area | Development Area | Development Area |
WILLIAMS © 2021 The Williams Companies, Inc. All rights reserved.
Current Developments
>Solar Program
- Developing 13 projects, current total of ~350 MW, in- service by 2023
- Identified 37 additional projects for future development
>Renewable Natural Gas
- Currently 6 existing interconnections to Williams
infrastructure, more in the queue for 2021-2023
-Evaluating multiple investment opportunities along Transco and NWP
Forward-looking Innovation
- Partnershipwith University of Oklahoma, Department ofEnergy on hydrogen blending and efficientenergystorage
- Expandingoriginationteam to explore emerging opportunitieslikehydrogen, CCUS, and develop RoadmaptoNetZeroby 2050
NYSE: WMB I Williams Virtual ESG Event I 1/19/2021 I www.williams.com 28
Committed to a clean energy future
Committed to being the leader in providing | Our mission is to empower every person and |
infrastructure that safely delivers natural gas | every organization on the planet to achieve |
products to reliably fuel the clean energy | more. |
economy |
WILLIAMS © 2021 The Williams Companies, Inc. All rights reserved. | NYSE: WMB I Williams Virtual ESG Event I 1/19/2021 I www.williams.com 29 |
10-Minute Break
NYSE: WMB | www.williams.com
ESG Focus Aligned with Shareholder Value
John Chandler, SVP and Chief Financial Officer
NYSE: WMB | www.williams.com
Sustainable value creation
Stable Cashflows & Reliable Dividend
• Strong cash generation and capital discipline provide financial flexibility
Sustainable Capital Structure
- Leverage target of 4.2x achievable in 2021
- Variety of capital allocation options available upon reaching target
• Strong dividend coverage of 1.7x
Renewable Energy Projects
ESG Integrated
into Corporate
Finance Goals
Transparency & Targets
- Leading governance practices
- Increasing transparency through enhanced reporting
- Continued investment in our market- leading climate commitment
- Leverage existing assets and capabilities
- Returns meet or exceed cost of capital
ESG Financing Options
- Transition bonds
- Sustainability-linkedloans
- Green bonds
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Executing
Long investment horizon for capital spending
Regulated gas transmission investments
- Expansions displace carbon-heavy fuels and support intermittent renewable investments
Emerging
- Rate base investments
- Emissions reduction program focused on modernizing compressor stations o Transport value in excess of tariff supports continued investment
Solar investment opportunities
- Up to $400 million solar initiative with attractive returns
- Potential to lower Scope 2 greenhouse gas emissions
Exploring broader RNG participation
- Focus on complementary assets leveraging existing footprint
- Investments must compete for capital dollars with broad set of investment opportunities
Hydrogen opportunities on the horizon
- $3 Billion in Capital Toward Reducing Emissions Through 2025
RNG
Solar
Expansions in
Execution
Emissions
Reduction
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Solar opportunities generate competitive returns
Total Realizable
Project Return
10% - 15%
Investment
Tax Credit
2% - 3%
Renewable
Energy Credits
<1% - 3%
Base Project
Return
5% - 9%
Solar Project Assumptions
ITC based on Safe | 10% to 26% |
Harbor date | of capital cost |
Market value of | $6-$90 per REC |
RECs vary by state | |
Capital Cost | ~$1,100 per kW |
Average power | ~$65 per MWh |
price at project sites | |
Developing solar energy capabilities
Renewable energy credits provide economic value or emissions reductions
Earning attractive investment returns
Note: Unlevered, pre-tax return
WILLIAMS © 2021 The Williams Companies, Inc. All rights reserved. | NYSE: WMB I Williams Virtual ESG Event I 1/19/2021 I www.williams.com 34 |
Fixed income market assesses low risk through 2050
30-Year Corporate Spread to Treasuries by Sector ( b p s )
BBB - range Credit Ratings
250 | ||||||||
200 | / Max Range | |||||||
150 | ||||||||
Min | ||||||||
100 | ||||||||
50 | ||||||||
0 | Transco | Transport | Utilities | Health | Distribution | Consumer | Industrial | Producer |
2050 | Services | Services | Non- | Services | Mfg. | |||
durables |
Long-dated bonds trade in line with other sectors
Trading significantly above par value
Fixed income market not pricing significant energy transition risk through 2050
Source: FactSet, Corporate Spreads to Treasury select sectors and Transco 3.95% coupon, May 15, 2050 maturity bond; January 7, 2021
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ESG efforts broaden equity investor base
NUMBER OF WILLIAMS SHARES HELD BY MAJOR ESG FUNDS1
Number of Shares in 000's
1,000
800
600
400
200
0
ESG fund
ownership
dramatically
increases with
increased Williams ESG disclosures & commitments
30-Sep-18 | 31-Dec-18 | 31-Mar-19 | 30-Jun-19 | 30-Sep-19 | 31-Dec-20 | 30-Mar-20 | 30-Jun-20 | 30-Sep-20 |
Source: IHS Markit fund-level ownership data. Note: Williams holdings of select ESG funds. 1 iShares ESG MSCI USA ETF, Xtrackers MSCI USA ESG Leaders Equity ETF, iShares ESG MSCI USA Leaders ETF, Timothy Plan - Timothy High Dividend Stock ETF, iShares MSCI ACWI Low Carbon Target ETF, Inspire Global Hope ETF, Timothy Plan - Timothy Plan US Large/Mid Cap Core ETF, Global X S&P 500 Catholic Values ETF, ClearBridge Dividend Strategy ESG ETF, Goldman Sachs JUST U.S. Large Cap Equity ETF, Point Bridge GOP Stock Tracker ETF, and SPDR MSCI ACWI Low Carbon Target ETF
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Closing Remarks
Alan Armstrong, President and Chief Executive Officer
NYSE: WMB | www.williams.com
Q&A
NYSE: WMB | www.williams.com
Forward Looking Statements
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Forward-looking statements
- The reports, filings, and other public announcements of The Williams Companies, Inc. (Williams) 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 Section 27A of the Securities Act of 1933, as amended (Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended (Exchange Act). These forward- looking statements relate to anticipated financial performance, management's plans and objectives for future operations, business prospects, outcome of regulatory proceedings, market conditions, and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995.
- All statements, other than statements of historical facts, included in this report that address activities, events, or developments that we expect, believe, or anticipate will exist or may occur in the future, are forward-looking statements. Forward-looking statements can be identified by various forms of words such as "anticipates," "believes," "seeks," "could," "may," "should," "continues," "estimates," "expects," "forecasts," "intends," "might," "goals," "objectives," "targets," "planned," "potential," "projects," "scheduled," "will," "assumes," "guidance," "outlook," "in-service date," or other similar expressions. These forward-looking statements are based on management's beliefs and assumptions and on information currently available to management and include, among others, statements regarding:
- Levels of dividends to Williams stockholders;
- Future credit ratings of Williams and its affiliates;
- Amounts and nature of future capital expenditures;
- Expansion and growth of our business and operations;
- Expected in-service dates for capital projects;
- Financial condition and liquidity;
- Business strategy;
- Cash flow from operations or results of operations;
- Seasonality of certain business components;
- Natural gas, natural gas liquids, and crude oil prices, supply, and demand;
- Demand for our services;
- The impact of the novel coronavirus (COVID-19) pandemic.
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Forward-looking statements (cont'd)
- Forward-lookingstatements are based on numerous assumptions, uncertainties, and risks that could cause future events or results to be materially different from those stated or implied in this report. Many of the factors that will determine these results are beyond our ability to control or predict. Specific factors that could cause actual results to differ from results contemplated by the forward-looking statements include, among others, the following:
- Availability of supplies, market demand, and volatility of prices;
- Development and rate of adoption of alternative energy sources;
- The impact of existing and future laws and regulations, the regulatory environment, environmental liabilities, and litigation, as well as our ability to obtain necessary permits and approvals, and achieve favorable rate proceeding outcomes;
- Our exposure to the credit risk of our customers and counterparties;
- Our ability to acquire new businesses and assets and successfully integrate those operations and assets into existing businesses as well as successfully expand our facilities, and to consummate asset sales on acceptable terms;
- Whether we are able to successfully identify, evaluate, and timely execute our capital projects and investment opportunities;
- The strength and financial resources of our competitors and the effects of competition;
- The amount of cash distributions from and capital requirements of our investments and joint ventures in which we participate;
- Whether we will be able to effectively execute our financing plan;
- Increasing scrutiny and changing expectations from stakeholders with respect to our environmental, social, and governance practices;
- The physical and financial risks associated with climate change;
- The impacts of operational and developmental hazards and unforeseen interruptions;
- The risks resulting from outbreaks or other public health crises, including COVID-19;
- Risks associated with weather and natural phenomena, including climate conditions and physical damage to our facilities;
- Acts of terrorism, cybersecurity incidents, and related disruptions;
- Our costs and funding obligations for defined benefit pension plans and other postretirement benefit plans;
- Changes in maintenance and construction costs, as well as our ability to obtain sufficient construction-related inputs, including skilled labor;
- Inflation, interest rates, and general economic conditions (including future disruptions and volatility in the global credit markets and the impact of these events on customers and suppliers);
- Risks related to financing, including restrictions stemming from debt agreements, future changes in credit ratings as determined by nationally recognized credit rating agencies, and the availability and cost of capital;
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Forward-looking statements (cont'd)
- The ability of the members of the Organization of Petroleum Exporting Countries and other oil exporting nations to agree to and maintain oil price and production controls and the impact on domestic production;
- Changes in the current geopolitical situation;
- Whether we are able to pay current and expected levels of dividends;
- Additional risks described in our filings with the Securities and Exchange Commission (SEC).
- 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. We disclaim any obligations to and do not intend to update the above list or announce publicly the result of any revisions to any of the forward-looking statements to reflect future events or developments.
- In addition to causing our actual results to differ, the factors listed above and referred to below may cause our intentions to change from those statements of intention set forth in this report. Such changes in our intentions may also cause our results to differ. We may change our intentions, at any time and without notice, based upon changes in such factors, our assumptions, or otherwise.
- Because forward-looking statements involve risks and uncertainties, we caution that there are important factors, in addition to those listed above, that may cause actual results to differ materially from those contained in the forward-looking statements. For a detailed discussion of those factors, see Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2019, as filed with the SEC on February 24, 2020, as supplemented by the disclosures in Part II, Item 1A. Risk Factors in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020.
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Appendix
NYSE: WMB | www.williams.com
Natural gas products reliably fuel our everyday lives
Common Uses of Natural Gas Products
Electricity Generation | Propane Grill | Power for | Transportation | Warm Showers |
for Lighting | Manufacturing Plants | Fuel |
Home Heating | Electricity Generation | Electricity Generation | Stovetop Cooking | Commercial Heating |
for Household Items | for Air Conditioning | & Lighting |
Medical Supplies | Clothing | Recyclable Plastics for | Fertilizers for | Recreational |
Household Items | Agricultural Use | Equipment | ||
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Natural gas fulfilling 37% of global energy demand growth through 2040
Total Global Energy Consumption By Fuel '15-'40
300 | Global Energy | |||||||
250 | Demand (QBtu) | |||||||
+56 QBtu | 772 | |||||||
619 | ||||||||
200 | Or 43% | |||||||
QBtu | ||||||||
150 | ||||||||
2015 | 2040 | |||||||
100 | ||||||||
50 | +2 QBtu | |||||||
Or 9% | ||||||||
0 | Natural Gas | Nuclear | ||||||
2015 | 2020 | 2025 | 2030 | 2035 | 2040 |
Source: S&P Global Platts, ©2020 by S&P Global Inc. Used with permission from Platts. December 2020 Most Likely Case.
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Renewables remain a small part of the energy mix
2020 Total Global Energy Consumption by Sector
Transportation
24%
Non-
Energy
11%Electricity
20%
Distribution &
Own Use
9%
Industrial | Res/Com |
17% | 19% |
2020 Global Power
Generation by Fuel Type
Natural | ||
Coal, | Gas, | |
21% | Wind, | |
38% | 8% | Solar, 5.6% |
2.6% | ||
Hydro, | Nuclear, 10% | |
17% | Other Renewables*, 3% | |
Liquids, 3%
Electricity only accounts for ~20% of total end-use energy consumption
AND
Wind & Solar only
account for
8% of total global
power generation
*Other Renewables include Geothermal & Tidal
Source: S&P Global Platts, ©2020 by S&P Global Inc. Used with permission from Platts. December 2020 Most Likely Case.
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Despite renewables capacity growth, natural gas will
remain part of power generation stack
Forecasted Change in Global Power Capacity
Forecasted Global Power Generation per Energy Source
5,000
4,000
3,000
GW
2,000
1,000
0
-1,000
Coal
Crude Oil
Wind
4,242 GW
81% Renewables | |||||||
73% Wind+Solar | |||||||
2% | |||||||
22% | |||||||
-1% | |||||||
2020-40 | |||||||
Natural Gas | Nuclear | ||||||
Hydro | Solar | ||||||
Other Renewable | |||||||
TWh
40,000 | 37,107 TWh | ||||||||
30,000 | |||||||||
25,883 TWh | |||||||||
31% Renewables | |||||||||
20,000 | 12% Wind+Solar | ||||||||
10% | 9% | ||||||||
22% | |||||||||
10,000 | 23% | ||||||||
33% | 23% | ||||||||
0 | |||||||||
2020 | 2040 | ||||||||
Coal | Natural Gas | Nuclear | |||||||
Crude Oil | Hydro | Solar | |||||||
Wind | Other Renewable | ||||||||
46% Renewables
29% Wind+Solar
Source: U.S. Energy Information Administration; International Energy Outlook 2019
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MM Tons CO2
Natural gas plays critical role in reducing emissions
Total U.S. Energy CO2 Emissions vs. Natural Gas Market Share | |||
6,200 | 35% | GasNatural | |
5,800 | |||
6,000 | 30% | ||
5,600 | 25% | PrimaryTotalof%as Consumption | |
20% | |||
CO2 Emissions Decline | |||
5,400 | |||
15% | |||
5,200 | |||
10% | |||
5,000 | Energy | ||
5% | |||
4,800 | |||
4,600 | 0% | ||
Source: U.S. Energy Information Administration, December 2020
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The Williams Companies Inc. published this content on 19 January 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 January 2021 13:57:06 UTC