Business Wire | Aug 2, 2021 04:16PM EDT

Williams Reports Higher Results Across Key Metrics in Second Quarter

Aug. 02, 2021

TULSA, Okla.--(BUSINESS WIRE)--Aug. 02, 2021--Williams (NYSE: WMB) today announced its unaudited financial results for the three and six months ended June 30, 2021.

Results exceed expectations and trend toward higher end of previously increased 2021 financial guidance

* Net income of $304 million, or $0.25 per diluted share (EPS) * Adjusted EPS of $0.27 per diluted share - up 8% from 2Q 2020 * Cash flow from operations (CFFO) of $1.1 billion - down $86 million or 8% from 2Q 2020; however, decline was due to working capital fluctuations * Available funds from operations (AFFO) of $919 million - up $47 million or 5% from 2Q 2020 * Adjusted EBITDA of $1.317 billion - up $77 million or 6% from 2Q 2020 * Achieved record quarterly gathering volumes of 13.79 Bcf/d * Debt-to-Adjusted EBITDA at quarter end: 4.13x * Dividend coverage ratio is 1.85x (AFFO basis)

Recently executed strategic transactions to drive optimization, synergies and volume growth across portfolio of assets

* Finalized upstream JV with GeoSouthern in Haynesville, in addition to previously announced JV with Crowheart in Wamsutter * Closed Sequent Energy Management acquisition * Signed definitive agreements for Shenandoah deepwater Gulf of Mexico expansion project * Signed definitive agreements for Whale deepwater Gulf of Mexico expansion project following producer customer reaching final investment decision (FID)

CEO Perspective

Alan Armstrong, president and chief executive officer, made the following comments:

"Williams once again posted another strong quarter of results with Adjusted EBITDA up 6 percent, reflecting record quarterly gas gathering volumes and the successful execution of several critical Transco expansion projects. Our natural gas focused strategy continues to deliver, driven by our connections in the best supply areas and evidenced in another quarter of growth in our gathering volumes despite flat production nationwide. As we move into the second half of the year, we are trending to the higher end of our previously increased 2021 financial guidance and are on track to bring into full service the Leidy South Transco expansion ahead of schedule and in time for the winter heating season.

"Our strategy of connecting the best supplies of affordable, reliable and clean natural gas with growing customer demand continues to produce sustainable growth for our shareholders. Our recent acquisition of Sequent is designed to enhance this strategy and accelerate our natural gas pipeline and storage optimization activities. In addition, our upstream joint ventures with Crowheart in the Wamsutter and GeoSouthern in the Haynesville enhance the value of our midstream infrastructure in those regions, while setting the stage for future clean energy development."

Armstrong added, "As detailed in our latest sustainability report published last week, we continue to capture near-term emissions reduction opportunities while driving a variety of other ESG initiatives focused on building strong communities, environmental stewardship and workforce diversity. I appreciate our employees for their commitment to sustainable operations as we meet today's growing need for natural gas and leverage our leading infrastructure for additional low-carbon solutions."

Williams Summary Financial 2Q Year to DateInformation

Amounts in millions, except ratiosand per-share amounts. Per shareamounts are reported on a dilutedbasis. Net income amounts are from 2021 2020 2021 2020continuing operations attributable toThe Williams Companies, Inc.available to common stockholders.



GAAP Measures

Net Income (Loss) $304 $303 $729 ($215)

Net Income (Loss) Per Share $0.25 $0.25 $0.60 ($0.18)

Cash Flow From Operations $1,057 $1,143 $1,972 $1,930



Non-GAAP Measures (1)

Adjusted EBITDA $1,317 $1,240 $2,732 $2,502

Adjusted Income $327 $305 $756 $618

Adjusted Income Per Share $0.27 $0.25 $0.62 $0.51

Available Funds from Operations $919 $872 $1,948 $1,792

Dividend Coverage Ratio 1.85 x 1.79 x 1.96 x 1.85 x



Other

Debt-to-Adjusted EBITDA at Quarter 4.13x 4.31 x End (2)

Capital Investments (3) $460 $363 $737 $647



(1) Schedules reconciling Adjusted Income, Adjusted EBITDA, Available Fundsfrom Operations and Dividend Coverage Ratio (non-GAAP measures) to the mostcomparable GAAP measure are available at www.williams.com and as an attachmentto this news release.

(2) Does not represent leverage ratios measured for WMB credit agreementcompliance or leverage ratios as calculated by the major credit ratingsagencies. Debt is net of cash on hand, and Adjusted EBITDA reflects the sum ofthe last four quarters.

(3) Capital Investments includes increases to property, plant, and equipment,purchases of businesses, net of cash acquired, and purchases of andcontributions to equity-method investments.

GAAP Measures

* Second-quarter 2021 net income was consistent with the prior year, reflecting $26 million of increased earnings from Northeast G&P equity-method investments and revenues from recently acquired upstream operations, as well as the benefit of increased service revenues from Transco expansion projects and Northeast G&P, partially offset by a decrease from lower gathering volumes in the West. These favorable impacts were substantially offset by $33 million of higher depreciation expense primarily related to accelerated depreciation on decommissioning assets and higher operating and maintenance costs. * Year-to-date 2021 net income improved by $944 million over the prior year, reflecting $136 million of higher commodity margins, $54 million of increased earnings from Northeast G&P equity-method investments, and revenues from recently acquired upstream operations, partially offset by $42 million of higher depreciation expense and higher operating and maintenance costs. The improvement over last year also reflects the absence of $1.2 billion in pre-tax charges in 2020 related to impairments of equity-method investments, goodwill and goodwill at an equity investee, of which $65 million was attributable to noncontrolling interests. The provision for income taxes changed unfavorably by $347 million primarily due to higher pre-tax income. * The severe winter weather impact in February 2021 and the associated effect on commodity prices is estimated to have had a net favorable impact on our pre-tax results of approximately $77 million, primarily within our commodity margins and results from upstream operations. * Cash flow from operations for the second quarter of 2021 decreased as compared to 2020 primarily due to net working capital and other changes, partially offset by $15 million higher distributions from equity-method investments. Year-to-date, cash flow from operations increased due to higher operating results exclusive of non-cash charges and $22 million higher distributions from equity-method investments, partially offset by net working capital and other changes.

Non-GAAP Measures

* Second-quarter 2021 Adjusted EBITDA increased by $77 million over the prior year, driven by the previously described benefits from recently acquired upstream operations and increased service revenues, as well as $41 million higher proportional EBITDA from Northeast G&P equity-method investments. These improvements were partially offset by higher operating and maintenance costs. * Year-to-date Adjusted EBITDA increased by $230 million over the prior year, driven by the previously described benefits from commodity margins and recently acquired upstream operations, as well as $74 million higher proportional EBITDA from Northeast G&P equity-method investments. These improvements were partially offset by higher operating and maintenance costs. * Second-quarter 2021 Adjusted Income improved by $22 million over the prior year, while year-to-date Adjusted Income improved by $138 million. The year-to-date increase was driven by the previously described impacts to net income, adjusted to remove the effects of the absence of $1.2 billion in pre-tax charges in 2020 related to impairments and related noncontrolling interest and income tax effects. Second-quarter and year-to-date 2021 were also adjusted to remove the impact of accelerated depreciation on decommissioning assets. * Second-quarter 2021 Available Funds From Operations increased by $47 million, primarily due to higher operating results exclusive of non-cash charges, $15 million higher distributions from equity-method investments and lower distributions to noncontrolling interests. The year-to-date increase of $156 million largely reflects higher operating results exclusive of non-cash charges and $22 million higher distributions from equity-method investments.

Business Segment Results & Form 10-Q

Williams' operations are comprised of the following reportable segments: Transmission & Gulf of Mexico, Northeast G&P, West and Other. For more information, see the company's second-quarter 2021 Form 10-Q.

Second Quarter Year to Date

Modified EBITDA Adjusted EBITDA Modified EBITDA Adjusted EBITDAAmounts inmillions 2Q 2Q Change 2Q 2Q Change 2021 2020 Change 2021 2020 Change 2021 2020 2021 2020

Transmission& Gulf of $646 $615 $31 $648 $617 $31 $1,306 $1,277 $29 $1,308 $1,286 $22Mexico

Northeast G& 409 370 39 409 363 46 811 739 72 811 733 78P

West 231 253 (22 ) 231 252 (21 ) 546 468 78 546 468 78

Other 20 8 12 29 8 21 53 15 38 67 15 52

Totals $1,306 $1,246 $60 $1,317 $1,240 $77 $2,716 $2,499 $217 $2,732 $2,502 $230



Note: Williams uses Modified EBITDA for its segment reporting. Definitions ofModified EBITDA and Adjusted EBITDA and schedules reconciling to net income areincluded in this news release.

Transmission & Gulf of Mexico

* Second-quarter 2021 Modified and Adjusted EBITDA improved compared to the prior year driven by higher natural gas transmission service revenues related to recent expansion projects. * Year-to-date Modified and Adjusted EBITDA also improved compared to the prior year, as higher service revenues, commodity margins, and proportional EBITDA from equity-method investments were partially offset by higher operating and administrative costs.

Northeast G&P

* Second-quarter and year-to-date 2021 Modified and Adjusted EBITDA increased over the prior year driven by higher proportional EBITDA from equity-method investments associated with higher gathering volumes on our Bradford and Marcellus South systems, along with the benefit of an increased ownership in Blue Racer Midstream, acquired in November 2020. * Gross gathering volumes for second-quarter 2021, including 100% of operated equity-method investments, increased by 9% over the same period in 2020.

West

* Second-quarter 2021 Modified and Adjusted EBITDA declined compared to the prior year primarily due to lower service revenues reflecting lower gathering volumes, lower Barnett deferred revenue amortization and the absence of a deficiency fee, partially offset by higher commodity margins driven by higher prices. * Year-to-date 2021 Modified and Adjusted EBITDA increased over the prior year primarily due to an estimated $55 million net favorable impact from the February 2021 severe winter weather, $63 million of higher commodity margins driven by higher prices and the absence of prior year inventory impacts, and lower operating and administrative costs. These favorable changes were partially offset by lower service revenues reflecting lower Haynesville gathering revenues from lower rates and volumes, lower Barnett deferred revenue amortization and the absence of a deficiency fee, as well as lower proportional EBITDA from equity method investments driven by reduced transportation volumes on Overland Pass Pipeline.

Other

* Second-quarter and year-to-date 2021 Modified and Adjusted EBITDA improved compared to the prior year primarily due to our recently acquired oil and gas producing properties. The year-to-date increase reflects an estimated $22 million attributable to the February 2021 severe winter weather.

2021 Financial Guidance

The company expects 2021 Adjusted EBITDA at the higher end of the previously increased guidance range of $5.2 billion to $5.4 billion and Available Funds from Operations between $3.7 billion and $3.9 billion. Moreover, the leverage ratio is expected to be less than the 4.2x midpoint for year-end 2021; growth capex is reaffirmed at $1 billion to $1.2 billion. Importantly, Williams expects to generate positive free cash flow (after capital expenditures and dividends), allowing it to retain financial flexibility.

Williams' Second-Quarter 2021 Materials to be Posted Shortly; Q&A Webcast Scheduled for Tomorrow

Williams' second-quarter 2021 earnings presentation will be posted at www.williams.com. The company's second-quarter 2021 earnings conference call and webcast with analysts and investors is scheduled for Tuesday, Aug. 3, at 9:30 a.m. Eastern Time (8:30 a.m. Central Time). Participants who wish to join the call by phone must register using the following link: http://www.directeventreg.com/registration/event/9217437

A webcast link to the conference call is available at www.williams.com. A replay of the webcast will be available on the website for at least 90 days following the event.

About Williams

Williams (NYSE: WMB) is committed to being the leader in providing infrastructure that safely delivers natural gas products to reliably fuel the clean energy economy. Headquartered in Tulsa, Oklahoma, Williams is an industry-leading, investment grade C-Corp with operations across the natural gas value chain including gathering, processing, interstate transportation and storage of natural gas and natural gas liquids. With major positions in top U.S. supply basins, Williams connects the best supplies with the growing demand for clean energy. Williams owns and operates more than 30,000 miles of pipelines system wide - including Transco, the nation's largest volume and fastest growing pipeline - and handles approximately 30 percent of the natural gas in the United States that is used every day for clean-power generation, heating and industrial use. www.williams.com

The Williams Companies, Inc.

Consolidated Statement of Operations

(Unaudited)

Three Months Ended Six Months Ended June 30, June 30,

2021 2020 2021 2020

(Millions, except per-share amounts)

Revenues:

Service revenues $ 1,460 $ 1,446 $ 2,912 $ 2,920

Service revenues -commodity 51 25 100 53 consideration

Product sales 772 310 1,883 721

Total revenues 2,283 1,781 4,895 3,694

Costs and expenses:

Product costs 697 271 1,629 667

Processing 18 15 39 28 commodity expenses

Operating andmaintenance 379 320 739 657 expenses

Depreciation andamortization 463 430 901 859 expenses

Selling, general,and administrative 114 127 237 240 expenses

Impairment of - - - 187 goodwill

Other (income) 12 6 11 13 expense - net

Total costs and 1,683 1,169 3,556 2,651 expenses

Operating income 600 612 1,339 1,043 (loss)

Equity earnings 135 108 266 130 (losses)

Impairment ofequity-method - - - (938 )investments

Other investingincome (loss) - 2 1 4 4 net

Interest incurred (301 ) (299 ) (597 ) (600 )

Interest 3 5 5 10 capitalized

Other income 2 5 - 9 (expense) - net

Income (loss)before income 441 432 1,017 (342 )taxes

Less: Provision(benefit) for 119 117 260 (87 )income taxes

Net income (loss) 322 315 757 (255 )

Less: Net income(loss)attributable to 18 12 27 (41 )noncontrollinginterests

Net income (loss)attributable to 304 303 730 (214 )The Williams Companies, Inc.

Less: Preferred - - 1 1 stock dividends

Net income (loss)available to $ 304 $ 303 $ 729 $ (215 )common stockholders

Basic earnings(loss) per common share:

Net income (loss) $ .25 $ .25 $ .60 $ (.18 )

Weighted-average 1,215,250 1,213,601 1,214,950 1,213,310 shares (thousands)

Diluted earnings(loss) per common share:

Net income (loss) $ .25 $ .25 $ .60 $ (.18 )

Weighted-average 1,217,476 1,214,581 1,217,344 1,213,310 shares (thousands)

The Williams Companies, Inc.

Consolidated Balance Sheet

(Unaudited)

June 30,2021

December 31,2020

(Millions, except per-share amounts)

ASSETS

Current assets:

Cash and cash equivalents

$

1,201

$

142

Trade accounts and other receivables

1,000

1,000

Allowance for doubtful accounts

(1

)

(1

)

Trade accounts and other receivables - net

999

999

Inventories

194

136

Other current assets and deferred charges

231

152

Total current assets

2,625

1,429

Investments

5,124

5,159

Property, plant, and equipment

43,543

42,489

Accumulated depreciation and amortization

(14,244

)

(13,560

)

Property, plant, and equipment - net

29,299

28,929

Intangible assets - net of accumulated amortization

7,277

7,444

Regulatory assets, deferred charges, and other

1,182

1,204

Total assets

$

45,507

$

44,165

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable

$

611

$

482

Accrued liabilities

1,005

944

Long-term debt due within one year

2,143

893

Total current liabilities

3,759

2,319

Long-term debt

21,091

21,451

Deferred income tax liabilities

2,179

1,923

Regulatory liabilities, deferred income, and other

4,213

3,889

Contingent liabilities

Equity:

Stockholders' equity:

Preferred stock

35

35

Common stock ($1 par value; 1,470 million shares authorized at June 30, 2021 and December 31, 2020; 1,249 million shares issued at June 30, 2021 and 1,248 million shares issued at December 31, 2020)

1,249

1,248

Capital in excess of par value

24,401

24,371

Retained deficit

(13,022

)

(12,748

)

Accumulated other comprehensive income (loss)

(110

)

(96

)

Treasury stock, at cost (35 million shares of common stock)

(1,041

)

(1,041

)

Total stockholders' equity

11,512

11,769

Noncontrolling interests in consolidated subsidiaries

2,753

2,814

Total equity

14,265

14,583

Total liabilities and equity

$

45,507

$

44,165

The Williams Companies, Inc.

Consolidated Balance Sheet

(Unaudited)

June 30, December 2021 31, 2020

(Millions, except per-share amounts)

ASSETS

Current assets:

Cash and cash equivalents $ 1,201 $ 142

Trade accounts and other receivables 1,000 1,000

Allowance for doubtful accounts (1 ) (1 )

Trade accounts and other receivables - net 999 999

Inventories 194 136

Other current assets and deferred charges 231 152

Total current assets 2,625 1,429

Investments 5,124 5,159

Property, plant, and equipment 43,543 42,489

Accumulated depreciation and amortization (14,244 ) (13,560 )

Property, plant, and equipment - net 29,299 28,929

Intangible assets - net of accumulated amortization 7,277 7,444

Regulatory assets, deferred charges, and other 1,182 1,204

Total assets $ 45,507 $ 44,165

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable $ 611 $ 482

Accrued liabilities 1,005 944

Long-term debt due within one year 2,143 893

Total current liabilities 3,759 2,319

Long-term debt 21,091 21,451

Deferred income tax liabilities 2,179 1,923

Regulatory liabilities, deferred income, and other 4,213 3,889

Contingent liabilities

Equity:

Stockholders' equity:

Preferred stock 35 35

Common stock ($1 par value; 1,470 million sharesauthorized at June 30, 2021 and December 31, 2020; 1,249 1,248 1,249 million shares issued at June 30, 2021 and1,248 million shares issued at December 31, 2020)

Capital in excess of par value 24,401 24,371

Retained deficit (13,022 ) (12,748 )

Accumulated other comprehensive income (loss) (110 ) (96 )

Treasury stock, at cost (35 million shares of (1,041 ) (1,041 )common stock)

Total stockholders' equity 11,512 11,769

Noncontrolling interests in consolidated 2,753 2,814 subsidiaries

Total equity 14,265 14,583

Total liabilities and equity $ 45,507 $ 44,165

The Williams Companies, Inc.

Consolidated Statement of Cash Flows

(Unaudited)

Six Months EndedJune 30,

2021

2020

(Millions)

OPERATING ACTIVITIES:

Net income (loss)

$

757

$

(255

)

Adjustments to reconcile to net cash provided (used) by operating activities:

Depreciation and amortization

901

859

Provision (benefit) for deferred income taxes

262

(59

)

Equity (earnings) losses

(266

)

(130

)

Distributions from unconsolidated affiliates

345

323

Impairment of goodwill

-

187

Impairment of equity-method investments

-

938

Amortization of stock-based awards

39

24

Cash provided (used) by changes in current assets and liabilities:

Accounts receivable

(50

)

85

Inventories

(58

)

(9

)

Other current assets and deferred charges

(56

)

(13

)

Accounts payable

94

236

Accrued liabilities

14

(236

)

Other, including changes in noncurrent assets and liabilities

(10

)

(20

)

Net cash provided (used) by operating activities

1,972

1,930

FINANCING ACTIVITIES:

Proceeds from long-term debt

898

3,896

Payments of long-term debt

(11

)

(3,226

)

Proceeds from issuance of common stock

3

6

Common dividends paid

(996

)

(971

)

Dividends and distributions paid to noncontrolling interests

(95

)

(98

)

Contributions from noncontrolling interests

6

4

Payments for debt issuance costs

(6

)

(17

)

Other - net

(12

)

(10

)

Net cash provided (used) by financing activities

(213

)

(416

)

INVESTING ACTIVITIES:

Property, plant, and equipment:

Capital expenditures (1)

(685

)

(613

)

Dispositions - net

(5

)

(16

)

Contributions in aid of construction

36

19

Proceeds from dispositions of equity-method investments

1

-

Purchases of and contributions to equity-method investments

(44

)

(66

)

Other - net

(3

)

6

Net cash provided (used) by investing activities

(700

)

(670

)

Increase (decrease) in cash and cash equivalents

1,059

844

Cash and cash equivalents at beginning of year

142

289

Cash and cash equivalents at end of period

$

1,201

$

1,133

_____________

(1) Increases to property, plant, and equipment

$

(693

)

$

(581

)

Changes in related accounts payable and accrued liabilities

8

(32

)

Capital expenditures

$

(685

)

$

(613

)

The Williams Companies, Inc.

Consolidated Statement of Cash Flows

(Unaudited)

Six Months Ended June 30,

2021 2020

(Millions)

OPERATING ACTIVITIES:

Net income (loss) $ 757 $ (255 )

Adjustments to reconcile to net cash provided (used) by operating activities:

Depreciation and amortization 901 859

Provision (benefit) for deferred income taxes 262 (59 )

Equity (earnings) losses (266 ) (130 )

Distributions from unconsolidated affiliates 345 323

Impairment of goodwill - 187

Impairment of equity-method investments - 938

Amortization of stock-based awards 39 24

Cash provided (used) by changes in current assets and liabilities:

Accounts receivable (50 ) 85

Inventories (58 ) (9 )

Other current assets and deferred charges (56 ) (13 )

Accounts payable 94 236

Accrued liabilities 14 (236 )

Other, including changes in noncurrent assets and (10 ) (20 )liabilities

Net cash provided (used) by operating activities 1,972 1,930

FINANCING ACTIVITIES:

Proceeds from long-term debt 898 3,896

Payments of long-term debt (11 ) (3,226 )

Proceeds from issuance of common stock 3 6

Common dividends paid (996 ) (971 )

Dividends and distributions paid to noncontrolling (95 ) (98 )interests

Contributions from noncontrolling interests 6 4

Payments for debt issuance costs (6 ) (17 )

Other - net (12 ) (10 )

Net cash provided (used) by financing activities (213 ) (416 )

INVESTING ACTIVITIES:

Property, plant, and equipment:

Capital expenditures (1) (685 ) (613 )

Dispositions - net (5 ) (16 )

Contributions in aid of construction 36 19

Proceeds from dispositions of equity-method investments 1 -

Purchases of and contributions to equity-method (44 ) (66 )investments

Other - net (3 ) 6

Net cash provided (used) by investing activities (700 ) (670 )

Increase (decrease) in cash and cash equivalents 1,059 844

Cash and cash equivalents at beginning of year 142 289

Cash and cash equivalents at end of period $ 1,201 $ 1,133

_____________

(1) Increases to property, plant, and equipment $ (693 ) $ (581 )

Changes in related accounts payable and accrued 8 (32 )liabilities

Capital expenditures $ (685 ) $ (613 )

Transmission & Gulf of Mexico

(UNAUDITED)

2020

2021

(Dollars in millions)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

1st Qtr

2nd Qtr

Year

Regulated interstate natural gas transportation, storage, and other revenues (1)

$

692

$

676

$

686

$

702

$

2,756

$

708

$

693

$

1,401

Gathering, processing, and transportation revenues

99

78

85

86

348

86

90

176

Other fee revenues (1)

4

5

3

6

18

4

4

8

Commodity margins

3

1

4

4

12

8

7

15

Operating and administrative costs (1)

(184

)

(189

)

(192

)

(192

)

(757

)

(198

)

(197

)

(395

)

Other segment income (expenses) - net

4

2

(8

)

8

6

5

5

10

Impairment of certain assets

-

-

-

(170

)

(170

)

-

(2

)

(2

)

Proportional Modified EBITDA of equity-method investments

44

42

38

42

166

47

46

93

Modified EBITDA

662

615

616

486

2,379

660

646

1,306

Adjustments

7

2

6

158

173

-

2

2

Adjusted EBITDA

$

669

$

617

$

622

$

644

$

2,552

$

660

$

648

$

1,308

Statistics for Operated Assets

Natural Gas Transmission

Transcontinental Gas Pipe Line

Avg. daily transportation volumes (Tbtu)

13.8

12.0

12.8

13.2

12.9

14.1

13.1

13.6

Avg. daily firm reserved capacity (Tbtu)

17.7

17.5

18.0

18.2

17.9

18.6

18.3

18.5

Northwest Pipeline LLC

Avg. daily transportation volumes (Tbtu)

2.6

1.9

1.8

2.5

2.2

2.8

2.2

2.5

Avg. daily firm reserved capacity (Tbtu) (4)

3.9

3.9

3.9

3.8

3.8

3.8

3.8

3.8

Gulfstream - Non-consolidated

Avg. daily transportation volumes (Tbtu)

1.2

1.2

1.3

1.1

1.2

1.0

1.2

1.1

Avg. daily firm reserved capacity (Tbtu)

1.3

1.3

1.3

1.3

1.3

1.3

1.3

1.3

Gathering, Processing, and Crude Oil Transportation

Consolidated (2)

Gathering volumes (Bcf/d)

0.30

0.23

0.23

0.26

0.25

0.28

0.31

0.30

Plant inlet natural gas volumes (Bcf/d)

0.58

0.50

0.40

0.46

0.48

0.46

0.41

0.44

NGL production (Mbbls/d)

32

25

27

30

29

29

26

28

NGL equity sales (Mbbls/d)

5

4

5

5

5

7

5

6

Crude oil transportation volumes (Mbbls/d)

138

92

121

132

121

130

151

141

Non-consolidated (3)

Gathering volumes (Bcf/d)

0.35

0.31

0.26

0.30

0.30

0.36

0.40

0.38

Plant inlet natural gas volumes (Bcf/d)

0.35

0.31

0.25

0.30

0.30

0.37

0.40

0.38

NGL production (Mbbls/d)

24

23

17

21

21

28

31

30

NGL equity sales (Mbbls/d)

5

8

4

6

6

9

7

8

(1) Excludes certain amounts associated with revenues and operating costs for tracked or reimbursable charges.

(2) Excludes volumes associated with equity-method investments that are not consolidated in our results.

(3) Includes 100% of the volumes associated with operated equity-method investments.

(4) Revised to include daily maximum peak capacity.

Transmission & Gulf of Mexico

(UNAUDITED)

2020 2021

(Dollars in 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr Year millions)

Regulatedinterstatenatural gastransportation, $ 692 $ 676 $ 686 $ 702 $ 2,756 $ 708 $ 693 $ 1,401 storage, andother revenues ^(1)

Gathering,processing, and 99 78 85 86 348 86 90 176 transportation revenues

Other fee 4 5 3 6 18 4 4 8 revenues ^(1)

Commodity 3 1 4 4 12 8 7 15 margins

Operating andadministrative (184 ) (189 ) (192 ) (192 ) (757 ) (198 ) (197 ) (395 ) costs ^(1)

Other segmentincome 4 2 (8 ) 8 6 5 5 10 (expenses) - net

Impairment of - - - (170 ) (170 ) - (2 ) (2 ) certain assets

ProportionalModified EBITDA 44 42 38 42 166 47 46 93 of equity-method investments

Modified EBITDA 662 615 616 486 2,379 660 646 1,306

Adjustments 7 2 6 158 173 - 2 2

Adjusted EBITDA $ 669 $ 617 $ 622 $ 644 $ 2,552 $ 660 $ 648 $ 1,308



Statistics for Operated Assets

Natural Gas Transmission

Transcontinental Gas Pipe Line

Avg. dailytransportation 13.8 12.0 12.8 13.2 12.9 14.1 13.1 13.6 volumes (Tbtu)

Avg. daily firmreserved 17.7 17.5 18.0 18.2 17.9 18.6 18.3 18.5 capacity (Tbtu)

Northwest Pipeline LLC

Avg. dailytransportation 2.6 1.9 1.8 2.5 2.2 2.8 2.2 2.5 volumes (Tbtu)

Avg. daily firmreserved 3.9 3.9 3.9 3.8 3.8 3.8 3.8 3.8 capacity (Tbtu) ^(4)

Gulfstream - Non-consolidated

Avg. dailytransportation 1.2 1.2 1.3 1.1 1.2 1.0 1.2 1.1 volumes (Tbtu)

Avg. daily firmreserved 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 capacity (Tbtu)

Gathering,Processing, and Crude Oil Transportation

Consolidated ^ (2)

Gathering 0.30 0.23 0.23 0.26 0.25 0.28 0.31 0.30 volumes (Bcf/d)

Plant inletnatural gas 0.58 0.50 0.40 0.46 0.48 0.46 0.41 0.44 volumes (Bcf/d)

NGL production 32 25 27 30 29 29 26 28 (Mbbls/d)

NGL equity sales 5 4 5 5 5 7 5 6 (Mbbls/d)

Crude oiltransportation 138 92 121 132 121 130 151 141 volumes (Mbbls/ d)

Non-consolidated ^(3)

Gathering 0.35 0.31 0.26 0.30 0.30 0.36 0.40 0.38 volumes (Bcf/d)

Plant inletnatural gas 0.35 0.31 0.25 0.30 0.30 0.37 0.40 0.38 volumes (Bcf/d)

NGL production 24 23 17 21 21 28 31 30 (Mbbls/d)

NGL equity sales 5 8 4 6 6 9 7 8 (Mbbls/d)



(1) Excludes certain amounts associated with revenues and operating costs for tracked or reimbursable charges.

(2) Excludes volumes associated with equity-method investments that are not consolidated in our results.

(3) Includes 100% of the volumes associated with operated equity-method investments.

(4) Revised to include daily maximum peak capacity.

Northeast G&P

(UNAUDITED)

2020

2021

(Dollars in millions)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

1st Qtr

2nd Qtr

Year

Gathering, processing, transportation, and fractionation revenues

$

312

$

308

$

332

$

327

$

1,279

$

311

$

315

$

626

Other fee revenues (1)

25

25

22

24

96

25

25

50

Commodity margins

1

1

1

1

4

3

-

3

Operating and administrative costs (1)

(87

)

(86

)

(85

)

(84

)

(342

)

(89

)

(86

)

(175

)

Other segment income (expenses) - net

(2

)

(4

)

(4

)

1

(9

)

(1

)

(7

)

(8

)

Impairment of certain assets

-

-

-

(12

)

(12

)

-

-

-

Proportional Modified EBITDA of equity-method investments

120

126

121

106

473

153

162

315

Modified EBITDA

369

370

387

363

1,489

402

409

811

Adjustments

1

(7

)

9

43

46

-

-

-

Adjusted EBITDA

$

370

$

363

$

396

$

406

$

1,535

$

402

$

409

$

811

Statistics for Operated Assets

Gathering and Processing

Consolidated (2)

Gathering volumes (Bcf/d)

4.27

4.14

4.47

4.36

4.31

4.19

4.10

4.15

Plant inlet natural gas volumes (Bcf/d)

1.23

1.22

1.36

1.45

1.32

1.41

1.62

1.52

NGL production (Mbbls/d) (4)

93

93

114

111

103

102

115

108

NGL equity sales (Mbbls/d)

2

2

2

2

2

1

1

1

Non-consolidated (3)

Gathering volumes (Bcf/d)

4.40

4.68

4.94

5.11

4.78

5.40

5.47

5.44

(1) Excludes certain amounts associated with revenues and operating costs for reimbursable charges.

(2) Includes volumes associated with Susquehanna Supply Hub, the Northeast JV, and Utica Supply Hub, all of which are consolidated.

(3) Includes 100% of the volumes associated with operated equity-method investments, including the Laurel Mountain Midstream partnership; and the Bradford Supply Hub and a portion of the Marcellus South Supply Hub within the Appalachia Midstream Services partnership.

(4) 1st Qtr and Year columns for 2020 volumes reflect revised NGL production.

Northeast G&P

(UNAUDITED)

2020 2021

(Dollars in 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr Year millions)

Gathering,processing,transportation, $ 312 $ 308 $ 332 $ 327 $ 1,279 $ 311 $ 315 $ 626 and fractionationrevenues

Other fee 25 25 22 24 96 25 25 50 revenues ^(1)

Commodity 1 1 1 1 4 3 - 3 margins

Operating andadministrative (87 ) (86 ) (85 ) (84 ) (342 ) (89 ) (86 ) (175 ) costs ^(1)

Other segmentincome (2 ) (4 ) (4 ) 1 (9 ) (1 ) (7 ) (8 ) (expenses) - net

Impairment of - - - (12 ) (12 ) - - - certain assets

ProportionalModified EBITDA 120 126 121 106 473 153 162 315 of equity-method investments

Modified EBITDA 369 370 387 363 1,489 402 409 811

Adjustments 1 (7 ) 9 43 46 - - -

Adjusted EBITDA $ 370 $ 363 $ 396 $ 406 $ 1,535 $ 402 $ 409 $ 811



Statistics for Operated Assets

Gathering and Processing

Consolidated ^ (2)

Gathering 4.27 4.14 4.47 4.36 4.31 4.19 4.10 4.15 volumes (Bcf/d)

Plant inletnatural gas 1.23 1.22 1.36 1.45 1.32 1.41 1.62 1.52 volumes (Bcf/d)

NGL production 93 93 114 111 103 102 115 108 (Mbbls/d) ^(4)

NGL equity sales 2 2 2 2 2 1 1 1 (Mbbls/d)

Non-consolidated ^(3)

Gathering 4.40 4.68 4.94 5.11 4.78 5.40 5.47 5.44 volumes (Bcf/d)



(1) Excludes certain amounts associated with revenues and operating costs for reimbursable charges.

(2) Includes volumes associated with Susquehanna Supply Hub, the Northeast JV, and Utica Supply Hub, all of which are consolidated.

(3) Includes 100% of the volumes associated with operated equity-methodinvestments, including the Laurel Mountain Midstream partnership; and the Bradford Supply Hub and a portion of the Marcellus South Supply Hub within theAppalachia Midstream Services partnership.

(4) 1st Qtr and Year columns for 2020 volumes reflect revised NGL production.

West

(UNAUDITED)

2020

2021

(Dollars in millions)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

1st Qtr

2nd Qtr

Year

Gathering, processing, transportation, storage, and fractionation revenues

$

299

$

297

$

288

$

320

$

1,204

$

262

$

278

$

540

Other fee revenues (1)

6

13

16

15

50

6

5

11

Commodity margins

2

30

28

25

85

128

41

169

Operating and administrative costs (1)

(115

)

(111

)

(108

)

(105

)

(439

)

(106

)

(114

)

(220

)

Other segment income (expenses) - net

(5

)

-

(7

)

-

(12

)

-

(1

)

(1

)

Proportional Modified EBITDA of equity-method investments

28

24

30

28

110

25

22

47

Modified EBITDA

215

253

247

283

998

315

231

546

Adjustments

1

(1

)

(2

)

(6

)

(8

)

-

-

-

Adjusted EBITDA

$

216

$

252

$

245

$

277

$

990

$

315

$

231

$

546

Statistics for Operated Assets

Gathering and Processing

Consolidated (2)

Gathering volumes (Bcf/d)

3.43

3.40

3.28

3.19

3.33

3.11

3.21

3.16

Plant inlet natural gas volumes (Bcf/d)

1.26

1.33

1.31

1.13

1.25

1.20

1.20

1.20

NGL production (Mbbls/d)

35

51

71

39

49

36

39

38

NGL equity sales (Mbbls/d)

12

25

34

18

22

13

16

15

Non-consolidated (3)

Gathering volumes (Bcf/d)

0.20

0.24

0.28

0.30

0.25

0.27

0.30

0.29

Plant inlet natural gas volumes (Bcf/d)

0.20

0.23

0.28

0.29

0.25

0.27

0.30

0.28

NGL production (Mbbls/d)

17

23

26

26

23

24

32

28

NGL and Crude Oil Transportation volumes (Mbbls/d) (4)

227

142

156

147

168

85

101

93

(1) Excludes certain amounts associated with revenues and operating costs for reimbursable charges.

(2) Excludes volumes associated with equity-method investments that are not consolidated in our results.

(3) Includes 100% of the volumes associated with operated equity-method investments, including Rocky Mountain Midstream.

(4) Includes 100% of the volumes associated with operated equity-method investments, including the Overland Pass Pipeline Company and Rocky Mountain Midstream.

West

(UNAUDITED)

2020 2021

(Dollars in 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr Year millions)

Gathering,processing,transportation, $ 299 $ 297 $ 288 $ 320 $ 1,204 $ 262 $ 278 $ 540 storage, and fractionationrevenues

Other fee 6 13 16 15 50 6 5 11 revenues^ (1)

Commodity 2 30 28 25 85 128 41 169 margins

Operating andadministrative (115 ) (111 ) (108 ) (105 ) (439 ) (106 ) (114 ) (220 ) costs ^(1)

Other segmentincome (5 ) - (7 ) - (12 ) - (1 ) (1 ) (expenses) - net

ProportionalModified EBITDA 28 24 30 28 110 25 22 47 of equity-method investments

Modified EBITDA 215 253 247 283 998 315 231 546

Adjustments 1 (1 ) (2 ) (6 ) (8 ) - - -

Adjusted EBITDA $ 216 $ 252 $ 245 $ 277 $ 990 $ 315 $ 231 $ 546



Statistics for Operated Assets

Gathering and Processing

Consolidated ^ (2)

Gathering 3.43 3.40 3.28 3.19 3.33 3.11 3.21 3.16 volumes (Bcf/d)

Plant inletnatural gas 1.26 1.33 1.31 1.13 1.25 1.20 1.20 1.20 volumes (Bcf/d)

NGL production 35 51 71 39 49 36 39 38 (Mbbls/d)

NGL equity sales 12 25 34 18 22 13 16 15 (Mbbls/d)

Non-consolidated ^(3)

Gathering 0.20 0.24 0.28 0.30 0.25 0.27 0.30 0.29 volumes (Bcf/d)

Plant inletnatural gas 0.20 0.23 0.28 0.29 0.25 0.27 0.30 0.28 volumes (Bcf/d)

NGL production 17 23 26 26 23 24 32 28 (Mbbls/d)

NGL and CrudeOilTransportation 227 142 156 147 168 85 101 93 volumes (Mbbls/d) ^(4)



(1) Excludes certain amounts associated with revenues and operating costs for reimbursable charges.

(2) Excludes volumes associated with equity-method investments that are not consolidated in our results.

(3) Includes 100% of the volumes associated with operated equity-method investments, including Rocky Mountain Midstream.

(4) Includes 100% of the volumes associated with operated equity-methodinvestments, including the Overland Pass Pipeline Company and Rocky Mountain Midstream.

Capital Expenditures and Investments

(UNAUDITED)

2020

2021

(Dollars in millions)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

1st Qtr

2nd Qtr

Year

Capital expenditures:

Transmission & Gulf of Mexico

$

185

$

181

$

192

$

190

$

748

$

109

$

209

$

318

Northeast G&P

46

41

32

38

157

40

46

86

West

72

80

93

65

310

33

76

109

Other

3

5

8

8

24

78

94

172

Total (1)

$

306

$

307

$

325

$

301

$

1,239

$

260

$

425

$

685

Purchases of and contributions to equity-method investments:

Transmission & Gulf of Mexico

$

1

$

1

$

34

$

1

$

37

$

3

$

6

$

9

Northeast G&P

27

30

47

174

278

11

24

35

West

2

5

3

-

10

-

-

-

Total

$

30

$

36

$

84

$

175

$

325

$

14

$

30

$

44

Summary:

Transmission & Gulf of Mexico

$

186

$

182

$

226

$

191

$

785

$

112

$

215

$

327

Northeast G&P

73

71

79

212

435

51

70

121

West

74

85

96

65

320

33

76

109

Other

3

5

8

8

24

78

94

172

Total

$

336

$

343

$

409

$

476

$

1,564

$

274

$

455

$

729

Capital investments:

Increases to property, plant, and equipment

$

254

$

327

$

331

$

248

$

1,160

$

263

$

430

$

693

Purchases of and contributions to equity-method investments

30

36

84

175

325

14

30

44

Total

$

284

$

363

$

415

$

423

$

1,485

$

277

$

460

$

737

(1) Increases to property, plant, and equipment

$

254

$

327

$

331

$

248

$

1,160

$

263

$

430

$

693

Changes in related accounts payable and accrued liabilities

52

(20

)

(6

)

53

79

(3

)

(5

)

(8

)

Capital expenditures

$

306

$

307

$

325

$

301

$

1,239

$

260

$

425

$

685

Contributions from noncontrolling interests

$

2

$

2

$

1

$

2

$

7

$

2

$

4

$

6

Contributions in aid of construction

$

14

$

5

$

8

$

10

$

37

$

19

$

17

$

36

Proceeds from disposition of equity-method investments

$

-

$

-

$

-

$

-

$

-

$

-

$

1

$

1

Non-GAAP Measures

This news release and accompanying materials may include certain financial measures - adjusted EBITDA, adjusted income ("earnings"), adjusted earnings per share, available funds from operations and dividend coverage ratio - that are non-GAAP financial measures as defined under the rules of the SEC.

Our segment performance measure, modified EBITDA, is defined as net income (loss) before income (loss) from discontinued operations, income tax expense, net interest expense, equity earnings from equity-method investments, other net investing income, impairments of equity investments and goodwill, depreciation and amortization expense, and accretion expense associated with asset retirement obligations for nonregulated operations. We also add our proportional ownership share (based on ownership interest) of modified EBITDA of equity-method investments.

Adjusted EBITDA further excludes items of income or loss that we characterize as unrepresentative of our ongoing operations. Such items are excluded from net income to determine adjusted income. Management believes this measure provides investors meaningful insight into results from ongoing operations.

Available funds from operations is defined as cash flow from operations excluding the effect of changes in working capital and certain other changes in noncurrent assets and liabilities, reduced by preferred dividends and net distributions to noncontrolling interests.

This news release 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 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 assets and the cash that the business is generating.

Neither adjusted EBITDA, adjusted income, nor available funds from operations 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.

Capital Expenditures and Investments

(UNAUDITED)

2020 2021

(Dollars in 1st 2nd Qtr 3rd Qtr 4th Year 1st Qtr 2nd Qtr Year millions) Qtr Qtr



Capital expenditures:

Transmission & $ 185 $ 181 $ 192 $ 190 $ 748 $ 109 $ 209 $ 318 Gulf of Mexico

Northeast G&P 46 41 32 38 157 40 46 86

West 72 80 93 65 310 33 76 109

Other 3 5 8 8 24 78 94 172

Total ^(1) $ 306 $ 307 $ 325 $ 301 $ 1,239 $ 260 $ 425 $ 685



Purchases ofandcontributions to equity-methodinvestments:

Transmission & $ 1 $ 1 $ 34 $ 1 $ 37 $ 3 $ 6 $ 9 Gulf of Mexico

Northeast G&P 27 30 47 174 278 11 24 35

West 2 5 3 - 10 - - -

Total $ 30 $ 36 $ 84 $ 175 $ 325 $ 14 $ 30 $ 44



Summary:

Transmission & $ 186 $ 182 $ 226 $ 191 $ 785 $ 112 $ 215 $ 327 Gulf of Mexico

Northeast G&P 73 71 79 212 435 51 70 121

West 74 85 96 65 320 33 76 109

Other 3 5 8 8 24 78 94 172

Total $ 336 $ 343 $ 409 $ 476 $ 1,564 $ 274 $ 455 $ 729



Capital investments:

Increases toproperty, $ 254 $ 327 $ 331 $ 248 $ 1,160 $ 263 $ 430 $ 693 plant, and equipment

Purchases ofandcontributions 30 36 84 175 325 14 30 44 to equity-methodinvestments

Total $ 284 $ 363 $ 415 $ 423 $ 1,485 $ 277 $ 460 $ 737



^(1) Increasesto property, $ 254 $ 327 $ 331 $ 248 $ 1,160 $ 263 $ 430 $ 693 plant, and equipment

Changes inrelatedaccounts 52 (20 ) (6 ) 53 79 (3 ) (5 ) (8 ) payable and accruedliabilities

Capital $ 306 $ 307 $ 325 $ 301 $ 1,239 $ 260 $ 425 $ 685 expenditures



Contributionsfrom $ 2 $ 2 $ 1 $ 2 $ 7 $ 2 $ 4 $ 6 noncontrolling interests

Contributionsin aid of $ 14 $ 5 $ 8 $ 10 $ 37 $ 19 $ 17 $ 36 construction

Proceeds fromdisposition of $ - $ - $ - $ - $ - $ - $ 1 $ 1 equity-method investments



Non-GAAP Measures

This news release and accompanying materials may include certain financial measures - adjusted EBITDA, adjusted income ("earnings"), adjusted earnings per share, available funds from operations and dividend coverage ratio - that are non-GAAP financial measures as defined under the rules of the SEC.

Our segment performance measure, modified EBITDA, is defined as net income (loss) before income (loss) from discontinued operations, income tax expense, net interest expense, equity earnings from equity-method investments, other net investing income, impairments of equity investments and goodwill, depreciation and amortization expense, and accretion expense associated with asset retirement obligations for nonregulated operations. We also add our proportional ownership share (based on ownership interest) of modified EBITDA of equity-method investments.

Adjusted EBITDA further excludes items of income or loss that we characterize as unrepresentative of our ongoing operations. Such items are excluded from net income to determine adjusted income. Management believes this measure provides investors meaningful insight into results from ongoing operations.

Available funds from operations is defined as cash flow from operations excluding the effect of changes in working capital and certain other changes in noncurrent assets and liabilities, reduced by preferred dividends and net distributions to noncontrolling interests.

This news release 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 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 assets and the cash that the business is generating.

Neither adjusted EBITDA, adjusted income, nor available funds from operations 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.

Reconciliation of Income (Loss) Attributable to The Williams Companies, Inc. to Non-GAAP Adjusted Income

(UNAUDITED)

2020 2021

(Dollars inmillions, except 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr Year per-share amounts)



Income (loss)attributable to TheWilliams Companies, $ (518 ) $ 303 $ 308 $ 115 $ 208 $ 425 $ 304 $ 729 Inc. available tocommon stockholders



Income (loss) -diluted earnings $ (.43 ) $ .25 $ .25 $ .09 $ .17 $ .35 $ .25 $ .60 (loss) per common share ^(1)

Adjustments:

Transmission & Gulf of Mexico

Northeast SupplyEnhancement project $ - $ 3 $ 3 $ - $ 6 $ - $ - $ - development costs

Impairment of - - - 170 170 - 2 2 certain assets

Pension plan 4 1 - - 5 - - - settlement charge

Adjustment ofTransco's regulatoryasset for post-WPZMerger state 2 - - - 2 - - - deferred income taxchange consistentwith filed rate case

Benefit of change inemployee benefit - (3 ) (6 ) (13 ) (22 ) - - - policy

Reversal of costscapitalized in prior - - 10 1 11 - - - periods

Severance and 1 1 (1 ) - 1 - - - related costs

Total Transmission &Gulf of Mexico 7 2 6 158 173 - 2 2 adjustments

Northeast G&P

Share of early debtretirement gain at - (5 ) - - (5 ) - - - equity-method investment

Share of impairmentof certain assets at - - 11 36 47 - - - equity-method investments

Pension plan 1 - - - 1 - - - settlement charge

Impairment of - - - 12 12 - - - certain assets

Benefit of change inemployee benefit - (2 ) (2 ) (5 ) (9 ) - - - policy

Total Northeast G&P 1 (7 ) 9 43 46 - - - adjustments

West

Pension plan 1 - - - 1 - - - settlement charge

Benefit of change inemployee benefit - (1 ) (2 ) (6 ) (9 ) - - - policy

Total West 1 (1 ) (2 ) (6 ) (8 ) - - - adjustments

Other

Regulatory assetreversals from - - 8 7 15 - - - impaired projects

Commodity derivativenon-cash - - - - - - 4 4 mark-to-market

Reversal of costscapitalized in prior - - 3 - 3 - - - periods

Pension plan - - - 1 1 - - - settlement charge

Accrual for loss - - - 24 24 5 5 10 contingencies

Total Other - - 11 32 43 5 9 14 adjustments

Adjustments included 9 (6 ) 24 227 254 5 11 16 in Modified EBITDA

Adjustments below Modified EBITDA

Accelerateddepreciation for - - - - - - 20 20 decommissioning assets

Impairment ofequity-method 938 - - 108 1,046 - - - investments

Impairment of 187 - - - 187 - - - goodwill ^(2)

Share of impairmentof goodwill at 78 - - - 78 - - - equity-method investment

Allocation ofadjustments to (65 ) - - - (65 ) - - - noncontrolling interests

1,138 - - 108 1,246 - 20 20

Total adjustments 1,147 (6 ) 24 335 1,500 5 31 36

Less tax effect for (316 ) 8 1 (68 ) (375 ) (1 ) (8 ) (9 ) above items

Adjusted incomeavailable to common $ 313 $ 305 $ 333 $ 382 $ 1,333 $ 429 $ 327 $ 756 stockholders

Adjusted income -diluted earnings per $ .26 $ .25 $ .27 $ .31 $ 1.10 $ .35 $ .27 $ .62 common share ^(1)

Weighted-averageshares - diluted 1,214,348 1,214,581 1,215,335 1,216,381 1,215,165 1,217,211 1,217,476 1,217,344 (thousands)

(1) The sum of earnings per share for the quarters may not equal the totalearnings per share for the year due to changes in the weighted-average number of common shares outstanding.

(2) Our partner's $65 million share of the first-quarter 2020 impairment ofgoodwill is reflected below in Allocation of adjustments to noncontrolling interests.

Reconciliation of Cash Flow from Operating Activities to Available Funds from Operations (AFFO)

(UNAUDITED)

2020

2021

(Dollars in millions, except coverage ratios)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

1st Qtr

2nd Qtr

Year

The Williams Companies, Inc.

Reconciliation of GAAP "Net cash provided (used) by operating activities" to Non-GAAP "Available funds from operations"

Net cash provided (used) by operating activities

$

787

$

1,143

$

452

$

1,114

$

3,496

$

915

$

1,057

$

1,972

Exclude: Cash (provided) used by changes in:

Accounts receivable

(67

)

(18

)

103

(16

)

2

59

(9

)

50

Inventories

(19

)

28

24

(22

)

11

8

50

58

Other current assets and deferred charges

(20

)

33

2

(26

)

(11

)

6

50

56

Accounts payable

155

(391

)

313

(70

)

7

(38

)

(56

)

(94

)

Accrued liabilities

150

86

50

23

309

116

(130

)

(14

)

Other, including changes in noncurrent assets and liabilities

(23

)

43

(32

)

17

5

16

(6

)

10

Preferred dividends paid

(1

)

-

(1

)

(1

)

(3

)

(1

)

-

(1

)

Dividends and distributions paid to noncontrolling interests

(44

)

(54

)

(49

)

(38

)

(185

)

(54

)

(41

)

(95

)

Contributions from noncontrolling interests

2

2

1

2

7

2

4

6

Available funds from operations

$

920

$

872

$

863

$

983

$

3,638

$

1,029

$

919

$

1,948

Common dividends paid

$

485

$

486

$

485

$

485

$

1,941

$

498

$

498

$

996

Coverage ratio:

Available funds from operations divided by Common dividends paid

1.90

1.79

1.78

2.03

1.87

2.07

1.85

1.96

Reconciliation of Cash Flow from Operating Activities to Available Funds from Operations (AFFO)

(UNAUDITED)

2020 2021

(Dollars inmillions,except 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr Year coverageratios)



The Williams Companies, Inc.

Reconciliation of GAAP "Net cash provided (used) by operating activities" to Non-GAAP "Available funds from operations"



Net cashprovided(used) by $ 787 $ 1,143 $ 452 $ 1,114 $ 3,496 $ 915 $ 1,057 $ 1,972 operatingactivities

Exclude: Cash(provided) used by changes in:

Accounts (67 ) (18 ) 103 (16 ) 2 59 (9 ) 50 receivable

Inventories (19 ) 28 24 (22 ) 11 8 50 58

Other currentassets and (20 ) 33 2 (26 ) (11 ) 6 50 56 deferred charges

Accounts 155 (391 ) 313 (70 ) 7 (38 ) (56 ) (94 ) payable

Accrued 150 86 50 23 309 116 (130 ) (14 ) liabilities

Other,includingchanges in (23 ) 43 (32 ) 17 5 16 (6 ) 10 noncurrent assets andliabilities

Preferred (1 ) - (1 ) (1 ) (3 ) (1 ) - (1 ) dividends paid

Dividends anddistributionspaid to (44 ) (54 ) (49 ) (38 ) (185 ) (54 ) (41 ) (95 ) noncontrollinginterests

Contributionsfrom 2 2 1 2 7 2 4 6 noncontrolling interests

Availablefunds from $ 920 $ 872 $ 863 $ 983 $ 3,638 $ 1,029 $ 919 $ 1,948 operations



Common $ 485 $ 486 $ 485 $ 485 $ 1,941 $ 498 $ 498 $ 996 dividends paid



Coverage ratio:

Availablefunds fromoperations 1.90 1.79 1.78 2.03 1.87 2.07 1.85 1.96 divided by Commondividends paid



Reconciliation of "Net Income (Loss)" to "Modified EBITDA" and Non-GAAP "Adjusted EBITDA"

(UNAUDITED)

2020

2021

(Dollars in millions)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

1st Qtr

2nd Qtr

Year

Net income (loss)

$

(570

)

$

315

$

323

$

130

$

198

$

435

$

322

$

757

Provision (benefit) for income taxes

(204

)

117

111

55

79

141

119

260

Interest expense

296

294

292

290

1,172

294

298

592

Equity (earnings) losses

(22

)

(108

)

(106

)

(92

)

(328

)

(131

)

(135

)

(266

)

Impairment of goodwill

187

-

-

-

187

-

-

-

Impairment of equity-method investments

938

-

-

108

1,046

-

-

-

Other investing (income) loss - net

(3

)

(1

)

(2

)

(2

)

(8

)

(2

)

(2

)

(4

)

Proportional Modified EBITDA of equity-method investments

192

192

189

176

749

225

230

455

Depreciation and amortization expenses

429

430

426

436

1,721

438

463

901

Accretion expense associated with asset retirement obligations for nonregulated operations

10

7

10

8

35

10

11

21

Modified EBITDA

$

1,253

$

1,246

$

1,243

$

1,109

$

4,851

$

1,410

$

1,306

$

2,716

Transmission & Gulf of Mexico

$

662

$

615

$

616

$

486

$

2,379

$

660

$

646

$

1,306

Northeast G&P

369

370

387

363

1,489

402

409

811

West

215

253

247

283

998

315

231

546

Other

7

8

(7

)

(23

)

(15

)

33

20

53

Total Modified EBITDA

$

1,253

$

1,246

$

1,243

$

1,109

$

4,851

$

1,410

$

1,306

$

2,716

Adjustments (1):

Transmission & Gulf of Mexico

$

7

$

2

$

6

$

158

$

173

$

-

$

2

$

2

Northeast G&P

1

(7

)

9

43

46

-

-

-

West

1

(1

)

(2

)

(6

)

(8

)

-

-

-

Other

-

-

11

32

43

5

9

14

Total Adjustments

$

9

$

(6

)

$

24

$

227

$

254

$

5

$

11

$

16

Adjusted EBITDA:

Transmission & Gulf of Mexico

$

669

$

617

$

622

$

644

$

2,552

$

660

$

648

$

1,308

Northeast G&P

370

363

396

406

1,535

402

409

811

West

216

252

245

277

990

315

231

546

Other

7

8

4

9

28

38

29

67

Total Adjusted EBITDA

$

1,262

$

1,240

$

1,267

$

1,336

$

5,105

$

1,415

$

1,317

$

2,732

(1) Adjustments by segment are detailed in the "Reconciliation of Income (Loss) Attributable to The Williams Companies, Inc. to Non-GAAP Adjusted Income," which is also included in these materials.

Reconciliation of "Net Income (Loss)" to "Modified EBITDA" and Non-GAAP "Adjusted EBITDA"

(UNAUDITED)

2020 2021

(Dollars in 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr Year millions)



Net income $ (570 ) $ 315 $ 323 $ 130 $ 198 $ 435 $ 322 $ 757 (loss)

Provision(benefit) for (204 ) 117 111 55 79 141 119 260 income taxes

Interest 296 294 292 290 1,172 294 298 592 expense

Equity(earnings) (22 ) (108 ) (106 ) (92 ) (328 ) (131 ) (135 ) (266 ) losses

Impairment of 187 - - - 187 - - - goodwill

Impairment ofequity-method 938 - - 108 1,046 - - - investments

Otherinvesting (3 ) (1 ) (2 ) (2 ) (8 ) (2 ) (2 ) (4 ) (income) loss - net

ProportionalModifiedEBITDA of 192 192 189 176 749 225 230 455 equity-methodinvestments

Depreciationand 429 430 426 436 1,721 438 463 901 amortization expenses

Accretionexpenseassociatedwith assetretirement 10 7 10 8 35 10 11 21 obligationsfornonregulatedoperations

Modified $ 1,253 $ 1,246 $ 1,243 $ 1,109 $ 4,851 $ 1,410 $ 1,306 $ 2,716 EBITDA



Transmission& Gulf of $ 662 $ 615 $ 616 $ 486 $ 2,379 $ 660 $ 646 $ 1,306 Mexico

Northeast G&P 369 370 387 363 1,489 402 409 811

West 215 253 247 283 998 315 231 546

Other 7 8 (7 ) (23 ) (15 ) 33 20 53

TotalModified $ 1,253 $ 1,246 $ 1,243 $ 1,109 $ 4,851 $ 1,410 $ 1,306 $ 2,716 EBITDA



Adjustments ^ (1):



Transmission& Gulf of $ 7 $ 2 $ 6 $ 158 $ 173 $ - $ 2 $ 2 Mexico

Northeast G&P 1 (7 ) 9 43 46 - - -

West 1 (1 ) (2 ) (6 ) (8 ) - - -

Other - - 11 32 43 5 9 14

Total $ 9 $ (6 ) $ 24 $ 227 $ 254 $ 5 $ 11 $ 16 Adjustments



Adjusted EBITDA:



Transmission& Gulf of $ 669 $ 617 $ 622 $ 644 $ 2,552 $ 660 $ 648 $ 1,308 Mexico

Northeast G&P 370 363 396 406 1,535 402 409 811

West 216 252 245 277 990 315 231 546

Other 7 8 4 9 28 38 29 67

TotalAdjusted $ 1,262 $ 1,240 $ 1,267 $ 1,336 $ 5,105 $ 1,415 $ 1,317 $ 2,732 EBITDA



(1) Adjustments by segment are detailed in the "Reconciliation of Income (Loss)Attributable to The Williams Companies, Inc. to Non-GAAP Adjusted Income," which is also included in these materials.

Reconciliation of Net Income (Loss) to Modified EBITDA, Non-GAAP Adjusted EBITDA and Cash Flow from Operating Activities to Non-GAAP Available Funds from Operations (AFFO)

2021 Guidance

(Dollars in millions, except per share amounts and coverage ratio)

Low

Mid

High

Net income (loss)

$

1,385

$

1,485

$

1,585

Provision (benefit) for income taxes

490

Interest expense

1,175

Equity (earnings) losses

(475

)

Proportional Modified EBITDA of equity-method investments

835

Depreciation and amortization expenses and accretion for asset retirement obligations associated with nonregulated operations

1,795

Other

(10

)

Modified EBITDA

$

5,195

$

5,295

$

5,395

EBITDA Adjustments

5

Adjusted EBITDA

$

5,200

$

5,300

$

5,400

Net income (loss)

$

1,385

$

1,485

$

1,585

Less: Net income (loss) attributable to noncontrolling interests & preferred dividends

64

Net income (loss) attributable to The Williams Companies, Inc. available to common stockholders

$

1,321

$

1,421

$

1,521

Adjustments:

Adjustments included in Modified EBITDA (1)

5

Adjustments below Modified EBITDA (1)

-

Allocation of adjustments to noncontrolling interests (1)

-

Total adjustments

5

Less tax effect for above items (1)

(1

)

Adjusted income available to common stockholders

$

1,325

$

1,425

$

1,525

Adjusted diluted earnings per common share

$

1.09

$

1.17

$

1.25

Weighted-average shares - diluted (millions)

1,217

Available Funds from Operations (AFFO):

Net cash provided by operating activities (net of changes in working capital and changes in other, including changes in noncurrent assets and liabilities)

$

3,890

$

3,990

$

4,090

Preferred dividends paid

(3

)

Dividends and distributions paid to noncontrolling interests

(200

)

Contributions from noncontrolling interests

13

Available funds from operations (AFFO)

$

3,700

$

3,800

$

3,900

AFFO per common share

$

3.04

$

3.12

$

3.20

Common dividends paid

$

2,000

Coverage Ratio (AFFO/Common dividends paid)

1.85

x

1.90

x

1.95

x

(1) See "Reconciliation of Income (Loss) Attributable to The Williams Companies, Inc. to Non-GAAP Adjusted Income" for additional details.

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 coronavirus (COVID-19) pandemic.

Forward-looking statements 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 matters, 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; * 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; * Changes in U.S. governmental administration and policies; * 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, 2020, as filed with the SEC on February 24, 2021.

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CONTACT: MEDIA CONTACT: media@williams.com (800) 945-8723

CONTACT: INVESTOR CONTACT: Danilo Juvane (918) 573-5075

CONTACT: Grace Scott (918) 573-1092