Williams Partners, L.P.
Quarterly Data Book
First Quarter 2014
April 30, 2014
© 2014 Williams Partners L.P. All rights res...
© 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/141
Forw...
Williams Partners L.P.
© 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 E...
© 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/145
Stro...
© 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/147
Capi...
© 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/149
Cons...
© 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1411
Cap...
© 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1413
Pri...
© 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1415
Nor...
© 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1417
In-...
© 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1419
Sus...
© 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1421
Oak...
© 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1423
Cai...
© 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1425
Atl...
© 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1427
Atl...
© 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1429
Con...
© 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1431
~$3...
© 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1433
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© 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1435
Con...
© 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1437
Cen...
© 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1439
> L...
© 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1441
Atl...
© 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1443
NGL...
© 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1445
Gei...
© 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1447
Gei...
© 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1449
OTH...
© 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1451
Can...
© 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1453
Wes...
© 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1455
Lar...
© 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1457
Con...
© 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1459
WPZ...
© 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1461
WPZ...
© 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1463
Adj...
© 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1465
Seg...
© 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1467
Net...
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Williams Partners Quarterly Data Book - 1Q14

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The quarterly investor PowerPoint presentation repackaged as a "data book" with slides about Williams' operations and finances for the first quarter of 2014. Of particular interest to MDN are slides covering the northeast, including those on pages 13-19.

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Williams Partners Quarterly Data Book - 1Q14

  1. 1. Williams Partners, L.P. Quarterly Data Book First Quarter 2014 April 30, 2014 © 2014 Williams Partners L.P. All rights reserved.
  2. 2. © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/141 Forward-Looking Statements The reports, filings, and other public announcements of Williams Partners L.P. 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, and Section 21E of the Securities Exchange Act of 1934, as amended. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995. You typically can identify forward-looking statements 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: > Amounts and nature of future capital expenditures; > Expansion and growth of our business and operations; > Financial condition and liquidity; > Business strategy; > Cash flow from operations or results of operations; > The levels of cash distributions to unitholders; > Natural gas, natural gas liquids, and olefins prices, supply and demand; > Demand for our services. 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 presentation. 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: > Whether we have sufficient cash from operations to enable us to pay current and expected levels of cash distributions, if any, following establishment of cash reserves and payment of fees and expenses, including payments to our general partner; > Availability of supplies, market demand, and volatility of prices; > Inflation, interest rates, fluctuation in foreign exchange rates and general economic conditions (including future disruptions and volatility in the global credit markets and the impact of these events on our customers and suppliers); > The strength and financial resources of our competitors and the effects of competition; > Whether we are able to successfully identify, evaluate and execute investment opportunities; > Ability to acquire new businesses and assets and successfully integrate those operations and assets into our existing businesses, as well as successfully expand our facilities; © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/142 Forward-Looking Statements continued > Development of alternative energy sources; > The impact of operational and development hazards and unforeseen interruptions; > Costs of, changes in, or the results of laws, government regulations (including safety and environmental regulations), environmental liabilities, litigation, and rate proceedings; > Our allocated costs for defined benefit pension plans and other postretirement benefit plans sponsored by our affiliates; > Changes in maintenance and construction costs; > Changes in the current geopolitical situation; > Our exposure to the credit risks of our customers and counterparties; > Risks related to financing, including restrictions stemming from our debt agreements, future changes in our credit ratings and the availability and cost of capital; > The amount of cash distributions from and capital requirements of our investments and joint ventures which we participate. > Risks associated with weather conditions and natural phenomena, including climate conditions; > Acts of terrorism, including cybersecurity threats and related disruptions; > 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 to 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 may cause our intentions to change from those statements of intention set forth in this announcement. 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. Limited partner interests are inherently different from the capital stock of a corporation, although many of the business risks to which we are subject are similar to those that would be faced by a corporation engaged in a similar business. Investors are urged to closely consider the disclosures and risk factors in our annual report on Form 10-K filed with the SEC on Feb. 26, 2014, and each of our quarterly reports on Form 10-Q available from our offices or from our website at www.williamslp.com.
  3. 3. Williams Partners L.P. © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/144 37% 38% 8% 17% 43% 32% 14% 11% Fee-based Revenues Are Expected to Be 75% of Business in 2015 Williams Partners L.P. (WPZ) Note: 2013 has been recast to reflect the Canadian asset drop-down completed in 1Q 2014. 2013 includes estimated preliminary proceeds from business interruption insurance claim for the Geismar incident of $123 million. 1Gross margin is gross revenues less related product costs and certain regulated revenues, which are related to tracked operating costs. WPZ unregulated fee revenue includes certain variable fee based revenues (margin-sharing fees) that are immaterial to the total. WPZ – Regulated Revenues WPZ – Unregulated Fee Revenue Non-ethane Margin Olefins Margin WPZ TOTAL GROSS MARGIN1WPZ TOTAL GROSS MARGIN1 2013 Actual $3.8 Billion 2015 Forecast $5.1 Billion
  4. 4. © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/145 Strong Fundamentals and Competitive Advantages Drive Robust, Visible Growth Williams Partners L.P. (WPZ) Growth Investment Spending by Operating Area Note: Guidance presented here is at the midpoint of ranges. NGL & Petchem Atlantic-Gulf West Northeast G&P In guidance In guidance Under negotiation In guidance Under negotiation Potential ~$5 BILLION~$5 BILLION ~$10 BILLION~$10 BILLION $25 BILLION+$25 BILLION+ 2014–2015 2014–2019 © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/146 Adjusted segment profit + DD&A1 guidance Williams Partners L.P. (WPZ) Notes: If guidance has changed, previous guidance is shown in italics directly below. 1A reconciliation of this non–GAAP measure is included in this presentation Adjusted Segment Profit: 900 $2,165 - 2,525 $2,610 - 3,050 DD&A: $895 - 945 $1,010 - 1,060 Adjusted Segment Profit + DD&A: 985 $3,060 - 3,470 $3,620 - 4,110 1,010 - - - - - - 855 830 1,060 1,460 - - - - $365 $565 - - 85 95 - - 235 235 - - 430 495 $355 630 965 620 595 $170 $210 - - - - 915 - - - - $195 Dollars in millions 2014 2015 Guidance Guidance Northeast G&P Total Adjusted Segment Profit Northeast G&P NGL & Petchem Services Total DD&A Northeast G&P Total Adjusted Segment Profit + DD&A Atlantic - Gulf West NGL & Petchem Services Atlantic - Gulf West Atlantic - Gulf West NGL & Petchem Services Midpoints of Guidance Midpoints of Guidance Midpoints of Guidance
  5. 5. © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/147 Capital expenditures1 guidance Williams Partners L.P. (WPZ) Notes: If guidance has changed, previous guidance is shown in italics directly below. 1Includes purchases of property, plant & equipment; investments; and businesses Midpoints of Guidance Midpoints of Guidance Midpoints of Guidance Maintenance Capex: $305 - 375 $295 - 355 Growth Capex: $3,000 - 3,500 $1,900 - 2,350 3,025 - 3,525 1,675 - 2,025 Total Capex: $3,305 - 3,875 $2,195 - 2,705 3,330 - 3,900 1,970 - 2,380 470 115 520 90 200 320 - - 1,500 1,575 1,475 1,425 $1,420 $440 - 340 450 100 500 75 75 200 - - 1,325 1,400 1,300 1,250 $1,400 $425 - 325 20 15 - - 125 120 - - 175 175 - - $20 $15 - - Dollars in millions 2014 2015 Guidance Guidance Northeast G&P NGL & Petchem Services Total Maintenance Capex Total Growth Capex Total Capex Atlantic - Gulf West Northeast G&P NGL & Petchem Services Atlantic - Gulf West Northeast G&P NGL & Petchem Services Atlantic - Gulf West © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/148 Consolidated Statement of Income Williams Partners L.P. (WPZ) 2013 * 2014 (Dollars in millions, except per-unit amounts) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr Revenues: Service revenues $ 702 $ 717 $ 731 $ 764 $ 2,914 $ 763 Product sales 1,104 1,046 887 884 3,921 930 Total revenues 1,806 1,763 1,618 1,648 6,835 1,693 Costs and expenses: Product costs 790 801 710 726 3,027 769 Operating and maintenance expenses 257 289 265 269 1,080 248 Depreciation and amortization expenses 196 191 201 203 791 208 Selling, general, and administrative expenses 130 131 130 128 519 130 Net insurance recoveries - Geismar Incident — 6 (45 ) 13 (26 ) (119 ) Other (income) expense - net 1 (2 ) 16 22 37 17 Total costs and expenses 1,374 1,416 1,277 1,361 5,428 1,253 Equity earnings (losses) 18 35 31 20 104 23 Income (loss) from investments (1 ) (1 ) (1 ) — (3 ) — General corporate expenses 45 46 40 38 169 40 Total segment profit 494 427 411 345 1,677 503 Reclass equity earnings (losses) (18 ) (35 ) (31 ) (20 ) (104 ) (23 ) Income (loss) from investments 1 1 1 — 3 — Reclass general corporate expenses (45 ) (46 ) (40 ) (38 ) (169 ) (40 ) Operating income 432 347 341 287 1,407 440 Equity earnings (losses) 18 35 31 20 104 23 Interest incurred (118 ) (118 ) (119 ) (122 ) (477 ) (131 ) Interest capitalized 22 22 24 22 90 25 Other investing income (loss) - net (1 ) — — — (1 ) — Other income (expense) - net 6 7 7 6 26 3 Income before income taxes 359 293 284 213 1,149 360 Provision (benefit) for income taxes 15 21 (5 ) (5 ) 26 8 Net income 344 272 289 218 1,123 352 Less: Net income attributable to noncontrolling interests — 1 1 1 3 — Net income attributable to controlling interests 344 271 288 217 1,120 352
  6. 6. © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/149 Consolidated Statement of Income cont’d Williams Partners L.P. (WPZ) 2013 * 2014 (Dollars in millions, except per-unit amounts) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr Allocation of net income for calculation of earnings per common unit: Net income attributable to controlling interests 344 271 288 217 1,120 352 Allocation of net income to general partner 142 141 64 162 509 180 Allocation of net income to Class D units — — — — — 14 Allocation of net income to common units 202 130 224 55 611 158 Net income per common unit $ 0.50 $ 0.31 $ 0.52 $ 0.12 $ 1.45 $ 0.36 Weighted-average number of common units outstanding (thousands) 401,969 413,901 428,682 438,626 420,916 438,626 Cash distributions per common unit $ 0.8475 $ 0.8625 $ 0.8775 $ 0.8925 $ 3.480 $ 0.9045 * Recast due to the dropdown of the Canadian operations to Williams Partners in the first quarter of 2014. Note: The sum of net income per common unit for the quarters may not equal the total income per common unit for the year due to changes in the weighted-average number of common units outstanding. © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1410 Operating statistics – Williams Partners Williams Partners L.P. (WPZ) 2013* 2014 (Dollars in millions) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr Operating statistics Interstate Transmission Throughput (Tbtu) 1,046.6 850.0 925.4 1,047.9 3,869.9 1,141.6 Avg. daily transportation volumes (Tbtu) 11.6 9.3 10.0 11.4 10.6 12.6 Avg. daily firm reserved capacity (Tbtu) 12.3 11.9 11.8 12.3 12.1 12.6 Gathering and Processing** Gathering volumes (Tbtu) 405 429 442 455 1,731 436 Plant inlet natural gas volumes (Tbtu) 389 408 393 359 1,549 339 Ethane equity sales (million gallons) 23 43 57 24 147 33 Non-ethane equity sales (million gallons) 163 157 153 134 607 113 NGL equity sales (million gallons) 186 200 210 158 754 146 Ethane margin ($/gallon) $ 0.03 $ 0.02 $ (0.01 )$ 0.02 $ 0.01 $ 0.20 Non-ethane margin ($/gallon) $ 0.87 $ 0.75 $ 0.85 $ 0.94 $ 0.85 $ 0.88 NGL margin ($/gallon) $ 0.77 $ 0.59 $ 0.62 $ 0.80 $ 0.69 $ 0.73 Ethane production (million gallons) 160 186 181 143 670 135 Non-ethane production (million gallons) 404 439 425 381 1,649 372 NGL production (million gallons) 564 625 606 524 2,319 507 Petrochemical Services Geismar ethylene sales volumes (million lbs) 246 211 10 — 467 — Geismar ethylene margin ($/lb) $ 0.37 $ 0.33 $ 0.05 $ — $ 0.34 $ — Equity investments - 100% Discovery NGL equity sales (million gallons) 19 18 6 6 49 10 Discovery NGL production (million gallons) 63 64 45 46 218 47 Laurel Mountain gathering volumes (Tbtu) 27 29 32 36 124 34 Overland Pass NGL transportation volumes (Mbbls) 7,402 11,151 13,174 11,463 43,190 8,612 * Recast due to the dropdown of the Canadian operations to Williams Partners in the first quarter of 2014 ** Excludes volumes associated with partially owned assets that are not consolidated for financial reporting purposes.
  7. 7. © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1411 Capital expenditures and investments Williams Partners L.P. (WPZ) 2013 2014 (Dollars in millions) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr Capital expenditures: Northeast G&P $ 307 $ 298 $ 338 $ 407 $ 1,350 $ 359 Atlantic-Gulf 174 276 290 247 987 180 West 63 58 55 35 211 22 NGL & Petchem Services** 158 148 249 200 755 161 Other 2 1 1 4 8 2 Total* $ 704 $ 781 $ 933 $ 893 $ 3,311 $ 724 Purchase of businesses: NGL & Petchem Services*** $ (25 )$ — $ — $ — $ (25 ) $ 25 Purchase of investments: Northeast G&P $ 72 $ 37 $ 123 $ 1 $ 233 $ 163 Atlantic-Gulf 15 50 35 93 193 51 NGL & Petchem Services 6 2 4 1 13 1 Total $ 93 $ 89 $ 162 $ 95 $ 439 $ 215 Summary: Northeast G&P $ 379 $ 335 $ 461 $ 408 $ 1,583 522 Atlantic-Gulf 189 326 325 340 1,180 231 West 63 58 55 35 211 22 NGL & Petchem Services 139 150 253 201 743 187 Other 2 1 1 4 8 2 Total $ 772 $ 870 $ 1,095 $ 988 $ 3,725 $ 964 *Increases to property, plant, and equipment** Changes in related accounts payable and accrued liabilities** Capital expenditures** ** Recast due to the dropdown of the Canadian operations to Williams Partners in the first quarter of 2014. *** The first quarter of 2013 relates to a working capital adjustment associated with the acquisition of the olefins business from a subsidiary of Williams and the first quarter of 2014 relates to the acquisition of certain Canadian operations from a subsidiary of Williams. © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1412 Capital expenditures and investments cont’d Williams Partners L.P. (WPZ) 2013 2014 (Dollars in millions) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr Capital expenditures incurred and purchase of investments: Increases to property, plant, and equipment $ 716 $ 822 $ 970 $ 825 $ 3,333 769 Purchase of businesses (25 ) — — — (25 ) 25 Purchase of investments 93 89 162 95 439 215 Total $ 784 $ 911 $ 1,132 $ 920 $ 3,747 $ 1,009 $ 716 $ 822 $ 970 $ 825 $ 3,333 769 (12 ) (41 ) (37 ) 68 (22 ) (45) $ 704 $ 781 $ 933 $ 893 $ 3,311 $ 724 *Increases to property, plant, and equipment** Changes in related accounts payable and accrued liabilities** Capital expenditures**
  8. 8. © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1413 Price assumptions and financial impacts Williams Partners L.P. (WPZ) Notes: 2013 has been recast to reflect the Canadian asset drop-down that was completed in 1Q 2014. 1 Dollars per gallon. 2 Dollars per pound. 3 Calculated as the price of natural gas liquids as a percentage of the price of crude oil on an equal volume basis. 4Natural Gas = Henry Hub; NGL = Mont Belvieu; Dollars per gallon. 5 Ethane = Mont Belvieu; Ethylene = Delivered U.S. Gulf Coast; Dollars per pound. 6 Dollars in millions. Includes purchases of property, plant & equipment; investments; and businesses. 7 Adjusted Segment Profit, Adjusted Segment Profit + DD&A, Distributable Cash Flow Attributable to Partnership Operations and Distribution Coverage Ratio are non-GAAP measures. A reconciliation to the most relevant GAAP measure is included in this presentation. 2 0 1 3 2 0 1 4 G u i d a n c e 2 0 1 5 G u i d a n c e Actual Low Midpoint High Low Midpoint High Crude Oil - WTI $97.97 $82.75 $94.00 $105.25 $77.00 $92.00 $107.00 Natural Gas - Henry Hub $3.72 $4.12 $4.50 $4.87 $3.75 $4.25 $4.75 Ethane 1 $0.26 $0.26 $0.30 $0.34 $0.20 $0.30 $0.40 Propane 1 $1.00 $1.18 $1.25 $1.33 $1.10 $1.25 $1.40 Ethylene 2 $0.58 $0.49 $0.56 $0.64 $0.48 $0.58 $0.68 Propylene 2 $0.69 $0.61 $0.68 $0.76 $0.57 $0.67 $0.77 NGL to Crude Oil Relationship 3 32% 39% 37% 36% 38% 38% 38% Composite Frac Spread 4 $0.46 $0.43 $0.47 $0.50 $0.39 $0.48 $0.58 Crack Spread 5 $0.47 $0.38 $0.44 $0.50 $0.40 $0.45 $0.51 Capex & Investments 6 $3,725 $3,305 $3,590 $3,875 $2,195 $2,450 $2,705 Adjusted Segment Profit 7 $1,798 $2,165 $2,345 $2,525 $2,610 $2,830 $3,050 Depreciation, Depletion and Amortiz. (DD&A) $791 $895 $920 $945 $1,010 $1,035 $1,060 Adjusted Segment Profit + DD&A 7 $2,589 $3,060 $3,265 $3,470 $3,620 $3,865 $4,110 Distributable Cash Flow Attributable to Partnership Operations 7 $1,771 $2,220 $2,350 $2,480 $2,605 $2,785 $2,965 Distribution Coverage Ratio 7 0.90x 0.94x 0.97x 1.00x 0.99x 1.03x 1.06x WPZ – Northeast G&P 1
  9. 9. © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1415 Northeast G&P WPZ – Northeast G&P 2013 2014 (Dollars in millions) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr Revenues: Fee revenues: Gathering & processing $ 59 $ 69 $ 84 $ 90 $ 302 $ 90 Production handling and transportation 1 3 2 4 10 3 Other fee revenues 3 6 8 6 23 6 Commodity-based revenues: NGL sales from gas processing 1 — 3 2 6 2 Marketing sales 19 34 45 62 160 58 Other sales — 1 (1 ) — — — 83 113 141 164 501 159 Intrasegment eliminations — — (1 ) 1 — — Total revenues 83 113 140 165 501 159 Segment costs and expenses: NGL cost of goods sold — — (1 ) — (1 ) 1 Marketing cost of goods sold 20 33 46 62 161 57 Depreciation and amortization 29 32 33 38 132 39 Other segment costs and expenses 40 43 66 77 226 57 Intrasegment eliminations — — (1 ) 1 — — Total segment costs and expenses 89 108 143 178 518 154 Equity earnings (losses) (3 ) 7 2 (13 ) (7 ) 1 Reported segment profit (loss) (9 ) 12 (1 ) (26 ) (24 ) 6 Adjustments — — 9 23 32 6 Adjusted segment profit (loss) $ (9 )$ 12 $ 8 $ (3) $ 8 $ 12 © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1416 Northeast G&P operating statistics WPZ – Northeast G&P 2013 2014 (Dollars in millions) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr Operating statistics Gathering and Processing* Gathering volumes (Tbtu) 127 142 157 180 606 179 Plant inlet natural gas volumes (Tbtu) 18 25 28 34 105 29 Non-ethane equity sales (million gallons) 1 1 3 2 7 2 NGL equity sales (million gallons) 1 1 3 2 7 2 Ethane production (million gallons) — 1 1 1 3 1 Non-ethane production (million gallons) 21 32 39 44 136 38 NGL production (million gallons) 21 33 40 45 139 39 Laurel Mountain Midstream LLC (equity investment) - 100% Gathering volumes (Tbtu) 27 29 32 36 124 34 * Excludes volumes associated with partially owned assets that are not consolidated for financial reporting purposes.
  10. 10. © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1417 In-guidance Projects Bring Large-scale Infrastructure to the Marcellus & Utica WPZ – Northeast G&P Note: Map does not reflect WMB’s investment in ACMP with assets in the Utica and Marcellus shales. LMM capacity is stated at 100%. WPZ owns 51% of LMM. *Represents estimated in-service dates and estimated capacity at respective year end. Ohio Valley Midstream – 2015* 0.9 Bcf/d processing capacity ~80 MBPD fractionation/deethanization Laurel Mountain Midstream (LMM) – 2015* ~700 MMcf/d takeaway capacity Three Rivers Midstream 275,000 dedicated acres Susquehanna Supply Hub – 2015* 3 Bcf/d takeaway capacity Blue Racer Midstream G&P/Fractionation/NGL services for Utica shale MARCELLUS & UTICA SHALE OVERVIEW © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1418 Laurel Mountain Midstream Covers Broad Footprint in Western PA and Eastern Ohio WPZ – Northeast G&P LMM Area of Interest CONTINUED SYSTEM EXPANSION THROUGH JV WITH CHEVRON CONTINUED SYSTEM EXPANSION THROUGH JV WITH CHEVRON > JV with Chevron – 51% WPZ owned – WPZ operated > Optimization of capital plan for dry gas area – Planned system capacity of ~700 MMcf/d by 2015 EXTENSIVE DEDICATIONS PROVIDE EXPOSURE TO RICH AND DRY GAS AREAS EXTENSIVE DEDICATIONS PROVIDE EXPOSURE TO RICH AND DRY GAS AREAS > Approximately 500,000 acres dedicated across 47 counties > Developing infrastructure solutions for dedicated rich-gas acreage in NW PA and Eastern Ohio
  11. 11. © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1419 Susquehanna Supply Hub: Building Large-scale Gas Gathering System in Northeast PA WPZ – Northeast G&P SIGNIFICANT SUPPLY HUB WITH ACCESS TO EAST COAST MARKETS SIGNIFICANT SUPPLY HUB WITH ACCESS TO EAST COAST MARKETS > Planning access to 3 Bcf/d of takeaway capacity by 2015 > Delivery into 4 major interstate pipelines – Transco, TGP, Millennium and Constitution EXPANDING GAS GATHERING SYSTEM TO MEET PRODUCERS’ DRILLING PLANS EXPANDING GAS GATHERING SYSTEM TO MEET PRODUCERS’ DRILLING PLANS > Key customers – Cabot – WPX Energy – Carrizo-Reliance > Large-scale build out – Building operational flexibility to allow increased system reliability © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1420 Ohio Valley Midstream Provides Large-scale Presence in Liquids-rich Area WPZ – Northeast G&P EXTENSIVE ACREAGE, GATHERING AND PROCESSING UNDER CONTRACT EXTENSIVE ACREAGE, GATHERING AND PROCESSING UNDER CONTRACT > Long-term contracts: – 236M acres dedicated – 7 producers – Processing of gathered gas Ethane Line Moundsville Fractionation Plant Oak Grove Cryogenic Plant Ft. Beeler Cryogenic Plant Oak Grove Deethanizer Ft. Beeler to Moundsville NGL Line WELL-POSITIONED ASSETS WITH SIGNIFICANT EXPANSIONS PLANNED WELL-POSITIONED ASSETS WITH SIGNIFICANT EXPANSIONS PLANNED > Gathering system > 2 processing facilities – 0.9 Bcf/d capacity expected by 2015 year-end – Fort Beeler Cryogenic Plant currently 520 MMcf/d – Oak Grove Cryogenic Plant 400 MMcf/d expected by 2015 year-end > Fractionation/Deethanization – Moundsville fractionation currently 42.5 MBPD; 30 MBPD added in 1Q2014 – 40 MBPD Deethanizer at Oak Grove expected by 2Q2014 > 50-mile ethane line – Expected by 2Q2014
  12. 12. © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1421 Oak Grove TXP I 200 MMcfd* 24” Pipeline on West Side of System to Oak Grove Executing Key Ohio Valley Projects to Drive System Capacity Growth WPZ – Northeast G&P Purple box indicate completed project Target in-service dates indicated for projects in green boxes. Several Central Receipt Points (CRPs) expected to come online during 2014. * Volumes listed for certain projects represent additional installed capacity as opposed to immediate incremental volume impact. 1Q14 2Q14 3Q14 4Q14 Moundsville Frac II 30,000 BPD* Oak Grove Deethanizer 40,000 BPD* 50 Mile Ethane Line Avg 335 MMcfd320 MMcfd 400 MMcfd KEY PROJECTS (2014)KEY PROJECTS (2014) Stabilization Facilities 14,500 BPD © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1422 Infrastructure Constraints Challenging Marcellus Growth Rates, But Still the Growth Area in the U.S. WPZ – Northeast G&P 1Laurel Mountain Midstream average annual gathered volumes are 100% amounts. WPZ owns 51% of Laurel Mountain Midstream. Note: Excludes Marcellus/Utica investments in Blue Racer and Three Rivers. STEADY AND SIGNIFICANT HISTORICAL FEE-BASED VOLUME GROWTH (MMCF/D) STEADY AND SIGNIFICANT HISTORICAL FEE-BASED VOLUME GROWTH (MMCF/D) EXPECTED GATHERING VOLUME GROWTH THROUGH 2016 (BCF/D) EXPECTED GATHERING VOLUME GROWTH THROUGH 2016 (BCF/D) Laurel Mountain Midstream1 Susquehanna Supply Hub Ohio Valley Midstream 0 250 500 750 1,000 1,250 1,500 1,750 2,000 2,250 2,500 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 AverageGatheredVolumes(MMcf/d) 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 2012 2013 2014 2015 AverageGatheredVolumes(Bcf/d) 0.6 Bcf/d or 38% Growth 1Q YTD Y-o-Y 2.1 Bcf/d or 183% Growth ’12-’15
  13. 13. © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1423 Caiman Energy II/Blue Racer Midstream JV Interest Enhances Presence in Utica Shale WPZ – Northeast G&P Three Rivers Midstream FOCUSES ON COUNTIES IN EAST OH AND NORTHWEST PA COVERING THE UTICA SHALE FOCUSES ON COUNTIES IN EAST OH AND NORTHWEST PA COVERING THE UTICA SHALE > Blue Racer Midstream is developing a substantial gathering and processing system – Nearly 600 miles of large diameter gathering pipelines – Natrium complex in Marshall County, West Virginia: processing and fractionation assets – Berne processing complex in Monroe County, Ohio: processing assets > Williams Partners owns a 58.4% equity investment in Caiman Energy II. Caiman Energy II owns 50 % of Blue Racer Midstream > Williams Partners anticipates investing approximately $435 million through 2014 for its proportional interest in Blue Racer Midstream WPZ – Atlantic-Gulf
  14. 14. © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1425 Atlantic – Gulf WPZ – Atlantic-Gulf 2013 2014 (Dollars in millions) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr Revenues: Fee-based revenues: Gathering & processing $ 19 $ 19 $ 15 $ 17 $ 70 $ 16 Production handling and transportation 283 282 282 302 1,149 307 Other fee revenues 29 29 30 30 118 30 Commodity-based revenues: NGL sales from gas processing 28 26 22 27 103 20 Marketing sales 176 186 167 175 704 171 Other sales 1 — — 2 3 1 Tracked revenues: 52 59 46 43 200 53 588 601 562 596 2,347 598 Intrasegment eliminations 1 1 1 (1 ) 2 2 Total revenues 589 602 563 595 2,349 600 Segment costs and expenses: NGL cost of goods sold 6 7 5 6 24 6 Marketing cost of goods sold 176 186 167 175 704 171 Depreciation and amortization expenses 93 87 92 91 363 94 Other segment costs and expenses 118 130 132 134 514 124 Tracked costs 52 59 46 43 200 53 Intrasegment eliminations 1 1 1 (1 ) 2 2 Total segment costs and expenses 446 470 443 448 1,807 450 Equity earnings (losses) 16 20 17 19 72 15 Reported segment profit 159 152 137 166 614 165 Adjustments (6 ) (5 ) 5 (2 ) (8 ) — Adjusted segment profit $ 153 $ 147 $ 142 $ 164 $ 606 $ 165 © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1426 Atlantic – Gulf operating statistics WPZ – Atlantic-Gulf 2013 2014 (Dollars in millions) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr Operating statistics Gathering and Processing* Gathering volumes (Tbtu) 39 36 31 31 137 28 Plant inlet natural gas volumes (Tbtu) 76 78 55 61 270 60 Ethane equity sales (million gallons) 8 6 7 7 28 2 Non-ethane equity sales (million gallons) 20 20 16 18 74 12 NGL equity sales (million gallons) 28 26 23 25 102 14 Ethane margin ($/gallon) $ .16 $ .21 $ .11 $ .08 $ .14 $ .46 Non-ethane margin ($/gallon) $ 1.03 $ .89 $ 1.03 $ 1.09 $ 1.01 $ 1.10 NGL margin ($/gallon) $ .79 $ .73 $ .75 $ .81 $ .77 $ 1.02 Ethane production (million gallons) 61 61 42 47 211 45 Non-ethane production (million gallons) 85 91 68 73 317 71 NGL production (million gallons) 146 152 110 120 528 116 Discovery Producer Services LLC (equity investment) - 100% NGL equity sales (million gallons) 19 18 6 6 49 10 NGL production (million gallons) 63 64 45 46 218 47 Transcontinental Gas Pipe Line Throughput (Tbtu) 845.6 713.1 756.8 837.5 3,153.0 949.2 Avg. daily transportation volumes (Tbtu) 9.4 7.8 8.2 9.1 8.6 10.5 Avg. daily firm reserved capacity (Tbtu) 9.3 8.9 8.8 9.3 9.1 9.6 * Excludes volumes associated with partially owned assets that are not consolidated for financial reporting purposes.
  15. 15. © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1427 Atlantic-Gulf Gas Pipeline Assets Expected to Provide Predictable Growth with Fully Contracted Projects WPZ – Atlantic-Gulf * Represents Williams ownership percentage. 7.7 8.1 8.6 8.6 8.8 9.1 9.2 9.5 10.1 10.2 10.8 10.9 12.1 12.3 16.5 6 8 10 12 14 16 18 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Transco Gulfstream* Constitution* Capacity* CAPITAL INVESTMENT PLACED INTO SERVICECAPITAL INVESTMENT PLACED INTO SERVICE ($MM) MMdt/Day © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1428 Transco: Nation’s Largest Gas Pipeline System and Platform for Growth WPZ – Atlantic-Gulf > Large and diverse supply sources – New pipeline and storage interconnects totaling 33.0 MMdt/d (2006–14) • Includes Barnett, Haynesville, Eagle Ford and Marcellus Shales – Onshore and offshore Gulf of Mexico > Connections to LNG import/export terminals > Premium high-growth markets – Southeast – Northeast > System offers high level of service flexibility > Mainline – fully contracted/subscribed > Average contract life – 6.5 years > Assets – 10.2 MMdt/d of peak-design capacity – Major supplier of natural gas in the New York metropolitan area and the entire eastern seaboard
  16. 16. © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1429 Continued Robust Growth Outlook Across All Markets WPZ – Atlantic-Gulf 85Barnett Haynesville Fayetteville Woodford Marcellus 65 Eagle Ford New York City Mid-Atlantic Markets Southeast Markets Northeast Markets Florida Markets > Strategic location to both diverse supply & premium markets > Low rates & increased demand for new capacity > Increasing bi-directional capability Midcontinent supply Marcellus supply LNG/GTL opportunities © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1430 Significant, Growing Opportunity for Supplying Gas-Fueled Power Generation WPZ – Atlantic-Gulf Source: U.S. Environmental Protection Agency. Zone 6 Zone 5 Zone 4 Zone 3 Zone 2 Zone 1 GG G G Power Plants Opportunities Currently ServeG G G Up to 8 Bcf/d ~50 GW of potential incremental natural gas power generation within 50 miles of Transco
  17. 17. © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1431 ~$3.1 Billion Growth Capex Through 2017 Planned in Transco’s Northern Market WPZ – Atlantic-Gulf * Represents WPZ’s expected net investment. The estimated project in-service dates assume timely receipt of all regulatory approvals. 195 210 New York City Philadelphia PAOH WV VA MD DE NJ NY Leidy Hub Zone 6 Baltimore Zone 5 Project Name ISD MDth/d Est. Cap. Northeast Connector 2014 100 $50 MM Rockaway Delivery Lateral 2014 647 $230 MM Leidy Southeast 2015 525 $600 MM CPV Woodbridge 2015 264 $32 MM Rock Springs 2016 192 $80 MM Atlantic Sunrise 2017 1,700 *$2,100 MM Atlantic Sunrise > Pipeline & loop > Compression Leidy Southeast > 25 mi. of 42-inch loop > Compression Rockaway Lateral > 3.3 mi. of 26-inch lateral Rock Springs > 10.7 mi. of 20-inch > Compression NE Connector > Compression CPV Woodbridge > 2.3 mi. of 20-inch lateral © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1432 ~$0.9 Billion Growth Capex Through 2017 Planned in Transco’s Southern Market WPZ – Atlantic-Gulf * Represents phase 1. The estimated project in-service dates assume timely receipt of all regulatory approvals. 210Zone 6 Zone 5 Zone 4 85 160 Charlotte Richmond Project Name ISD MDth/d Est. Cap. Mobile Bay South III 2015 225 $50 MM Virginia Southside 2015 270 $300 MM Hillabee Expansion 2017 *818 *$280 MM Dalton Expansion 2017 448 $275 MM Atlanta Virginia Southside > 99 mi. of 24-inch pipe (including lateral) > Compression Mobile Bay South III > Compression Hillabee Expansion > Loop & Compression Dalton Expansion > 106 mi. greenfield pipeline & Compression
  18. 18. © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1433 85 65 45 30 Zone 2 Zone 3 Zone 4 ~$0.3 Billion Growth Capex Through 2017 Planned in Transco’s Production Area WPZ – Atlantic-Gulf Project Name ISD MDth/d Est. Cap. Gulf Trace 2017 1,200 $300 MM Gulf Trace > 8 mi. of 30-inch lateral > Compression Sabine Pass LNG The estimated project in-service dates assume timely receipt of all regulatory approvals. © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1434 Atlantic Sunrise Provides Firm-Transportation to Move Marcellus Gas South to Growing Markets WPZ – Atlantic-Gulf Alabama Georgia South Carolina North Carolina Virginia Maryland Pennsylvania Zone 4 Zone 5 Zone 6 165 85 > Significant expansion of Transco system > Expecting WPZ net investment of $2.1 billion > 15-year binding firm-transportation agreements > Commitments for full 1.7 million dekatherms of daily capacity > Target in-service date is second half of 2017 The estimated project in-service dates assume timely receipt of all regulatory approvals.
  19. 19. © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1435 Constitution Pipeline Creates New Market Access for Marcellus Production WPZ – Atlantic-Gulf > A 124-mile, 30-inch pipeline connecting Williams Partners’ Gathering System in Susquehanna County, PA to Iroquois Gas Transmission and Tennessee Gas Pipeline in Schoharie County, NY > Capacity: 650 MDth/d > Project capex: $300 million (41%) > New FERC-regulated interstate pipeline > Owned (41%) and operated by WPZ; Cabot Oil and Gas owns 25%, Piedmont Constitution Pipeline Company owns 24%, and Capital Energy Ventures owns 10% > Target in-service date: Late 2015 to 2016 The estimated project in-service dates assume timely receipt of all regulatory approvals. © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1436 Gulfstream: Connecting Shales to Growing Florida Markets WPZ – Atlantic-Gulf > 50% WPZ ownership interest > Flexible supply – Gulf of Mexico – Midcontinent Shales > Fully subscribed with long- term contracts > Average contract life ~ 16 years > Serves growing Florida market – Growth driven by increased power generation needs > No rate case requirement Receipt Points – 8 Delivery Points – 1 Capacity – 4.6 MMDt/d Receipt/Delivery Header – 15 miles Compression – 4 units; 128,700 HP Delivery Points – 23 Onshore – 277 miles Offshore – 18 miles Compression – 4 units; 58,300 HP FGT (Osceola) 0.2 MMDt/d Offshore – 435 miles of 36” Capacity – 1.298 MMDt/d MAOP – 2180 psig
  20. 20. © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1437 Central Gulf of Mexico Corridor Growth Projects and Opportunities WPZ – Atlantic-Gulf > 400 MMcf/d capacity > Expected to be in-service by 4Q 2014 > High deliverability reserves from Hadrian South yield front-end financial loading > High potential neighborhoods and additional opportunities with associated gas > In process of signing additional reserves along its path KEATHLEY CANYON CONNECTOR KEATHLEY CANYON CONNECTOR © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1438 Eastern Gulf of Mexico Corridor Growth Projects and Opportunities WPZ – Atlantic-Gulf > Gulfstar 1 – Tubular Bells (GS1) – expected online 3Q 2014 > Kodiak – tieback to Devils Tower – expected online 3Q 2015 > Gunflint – tieback to GS1 expected online 1Q 2016 CONTRACTED:CONTRACTED: > Appomattox Development (Norphlet Play) – gas gathering, transportation, & processing online early 2019 > Big Bend – tieback to Blind Faith - online mid-2016 > Taggart – tieback to Devils Tower – online mid-2018 POTENTIAL:POTENTIAL:
  21. 21. © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1439 > Low cost 100 MMCFD gas processing capacity expansion opportunity at Markham > Term deals are being pursued on South Texas fee based processing > Deep Nansen currently drilling with estimated first production in 2017 > Pemex discoveries in development 2017+ POTENTIAL:POTENTIAL: Western Gulf of Mexico Corridor Growth Projects and Opportunities WPZ – Atlantic-Gulf > Short-term South Texas gas supplies for fee based processing in 2014 > New retrograde and condensate stabilization and handling facilities at Markham placed in-service 2013 > 2 new Great White wells at Perdido expected online in 2Q14 > Nansen gas production from Mawson expected to begin in 2Q15 CONTRACTED:CONTRACTED: © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1440 Gulfstar FPS – Speed-to-Market Solution for Majors WPZ – Atlantic-Gulf > Spar-based floating production system > Daily capacity: 60,000 Bbls of oil and up to 200 MMcf of natural gas > USA construction > 3,000’ to 8,500’ water depth range GULFSTAR FLOATING PRODUCTION SYSTEM GULFSTAR FLOATING PRODUCTION SYSTEM > Joint venture executed with Marubeni; 51% WPZ ownership interest – Agreements in place with Hess and Chevron to provide production handling, export pipeline, oil & gas gathering, and gas processing services > Risk reduced through demand payments – Recovery of base capital investment through fixed monthly fee over 5 years – Return generated by variable fee assessed on production volumes > Wet tree spar serves as a development hub for the Miss Canyon area > Expected online 3Q 2014 GULFSTAR I – TUBULAR BELLSGULFSTAR I – TUBULAR BELLS
  22. 22. © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1441 Atlantic-Gulf Region Has Abundant Growth in Key Markets ~$5.8 B in Guidance WPZ – Atlantic-Gulf Dates shown are expected in-service dates for the respective projects and assume timely receipt of all regulatory approvals. CPV Woodbridge > 2Q ’15 Atlantic Sunrise > 2nd half of 2017 Gunflint > 1Q ’16 Virginia Southside > 3Q ‘15 Leidy Southeast > 4Q ’15 Rock Springs Expansion > 3Q ’16 Constitution > Late 2015 to 2016 NE Connector/ Rockaway Lateral > 4Q’14 Gulf Trace > 1st half of 2017 Dalton Lateral > 2017 Hillabee Expansion (Ph. I) > 2Q ’17 Mobile Bay South III > 2Q ’15 Gulfstar I > 3Q ’14 Keathley Canyon > 4Q ’14 WPZ – NGL & Petchem Services 4
  23. 23. © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1443 NGL & Petchem Services WPZ – NGL & Petchem Services 2013* 2014 (Dollars in millions) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr Revenues: Fee-based revenues: Production handling and transportation $ 6 $ 6 $ 6 $ 5 $ 23 $ 7 Other fee-based revenues 26 31 29 31 117 33 Commodity-based revenues: NGL sales from gas processing 37 24 22 28 111 54 Olefin sales 269 228 67 29 593 79 Marketing sales 684 673 645 644 2,646 698 Other sales 15 11 11 9 46 11 1,037 973 780 746 3,536 882 Intrasegment eliminations (79 ) (80 ) (56 ) (54 ) (269 ) (77 ) Total revenues 958 893 724 692 3,267 805 Segment costs and expenses: NGL cost of goods sold 14 12 9 12 47 28 Olefins cost of goods sold 119 111 44 17 291 51 Marketing cost of goods sold 679 678 630 638 2,625 684 Other cost of goods sold 13 10 10 7 40 12 Depreciation and amortization expenses 13 14 18 15 60 17 Other segment costs and expenses 46 55 13 52 166 (70 ) Intrasegment eliminations (79 ) (80 ) (56 ) (54 ) (269 ) (77 ) Total segment costs and expenses 805 800 668 687 2,960 645 Equity earnings (losses) 5 8 12 14 39 7 Reported segment profit 158 101 68 19 346 167 Adjustments — 6 (31 ) 122 97 54 Adjusted segment profit $ 158 $ 107 $ 37 $ 141 $ 443 $ 221 © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1444 NGL & Petchem Services operating statistics WPZ – NGL & Petchem Services 2013* 2014 (Dollars in millions) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr Operating statistics Ethane equity sales (million gallons) - - - 3 3 27 Non-ethane equity sales (million gallons) 40 29 25 26 120 30 NGL equity sales (million gallons) 40 29 25 29 123 57 Ethane production (million gallons) - - - 7 7 29 Non-ethane production (million gallons) 36 35 24 18 113 30 NGL production (million gallons) 36 35 24 25 120 59 Petrochemical Services Geismar ethylene sales volumes (million lbs) 246 211 10 - 467 - Geismar ethylene margin ($/lb) $ 0.37 $ 0.33 $ 0.05 $ - $ 0.34 $ - Canadian propylene sales volumes (millions lbs) 35 36 27 20 118 32 Canadian alky feedstock sales volumes (million gallons) 9 10 7 5 31 7 Overland Pass Pipeline Company LLC (equity investment) - 100% NGL Transportation volumes (Mbbls) 7,402 11,151 13,174 11,463 43,190 8,612 *Recast due to the dropdown of the Canadian operations to Williams Partners in the first quarter of 2014.
  24. 24. © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1445 Geismar – Bringing Expanded Plant Into Sustainably Safe Operations WPZ – NGL & Petchem Services > Second installment of $125 million from insurers’ paid in 1Q 2014, total received $175 million > Expansion increases annual ethylene production capacity to 1.95 billion lbs. © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1446 Expect Williams Partners’ Financial Impact from Geismar Incident to Be Significantly Mitigated by Business Interruption Insurance* WPZ – NGL & Petchem Services *Includes an estimate of property damage of $70 million and BI insurance proceeds of $430 million and assumes WPZ completes the plant repairs, turnaround and expansion and begins startup in the latter half of June 2014. The assumed plant restart date and repair cost estimate are subject to various uncertainties and risks that could cause the actual results to be materially different from these assumptions. The assumed property damage and BI insurance proceeds are also subject to various uncertainties and risks that could cause the actual results to be materially different from these assumptions. **Distributable Cash Flow (DCF) is a non-GAAP measure. Reconciliations to the most relevant measures included in GAAP are provided in this presentation. (Millions) 2013 (6/13–12/31) 2014 (Full Year) Total Estimated Business Interruption (BI) Insurance Proceeds (Amts. Included in Adjusted Earnings and DCF**) $123 $307 $430 Adj. for Expected Timing Lag in BI GAAP Net Income Recognition for Guidance (73) 73 - Recognition in GAAP Earnings for Guidance $50 $380 $430
  25. 25. © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1447 Geismar to Benefit from the Current Commodity Environment WPZ – NGL & Petchem Services Note: Historical CMAI spot prices for ethylene and ethane. Crack spread and ethane price stated before any co-product credits. $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 $0.90 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Ethane Cost Ethylene Spot Price ETHYLENE CRACK SPREADETHYLENE CRACK SPREAD $US/lb 20142009 2010 2011 2012 2013 Industry Crack Spread © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1448 Geismar Mitigates Declining Ethane to Crude Ratio WPZ – NGL & Petchem Services Note: Historical CMAI spot prices for ethylene and ethane converted to a $/barrel basis. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Ethane as % of WTI Ethylene as % of WTI ETHANE AND ETHYLENE RELATIONSHIP TO CRUDEETHANE AND ETHYLENE RELATIONSHIP TO CRUDE 20142009 2010 2011 2012 2013 % of Crude
  26. 26. © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1449 OTHER INFOOTHER INFO Dropdown of In-service Canadian Assets from WMB to WPZ Completed in February 2014 WPZ – NGL & Petchem Services Area shown DROPDOWN ASSETSDROPDOWN ASSETS > Fort McMurray offgas cryo plant > Boreal offgas liquids pipeline > Redwater fractionator, storage and loading > Suncor offgas processing agreement > NOVA ethane sales agreement > Consideration to WMB 100% PIK units – PIK through ’15; cash distributions may begin ’16* > Canadian projects in development are held at WMB and available for future dropdowns – CNRL processing – PDH – Syncrude processing * WMB or WPZ can convert the PIKs to common units beginning in 2016 at their option. © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1450 Propylene is Consistently the Top of the Value Chain WPZ – NGL & Petchem Services Note: Historical CMAI Gulf Coast spot prices converted to a $/MMBtu basis. $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Gas Ethane Propane Crude Ethylene Propylene Propylene Ethylene OLEFINS PRODUCTION FROM NGLs AND OFFGAS RECOVERY ADDS SIGNIFICANT ADDITIONAL MARGIN POTENTIAL TO THE NATURAL GAS VALUE CHAIN OLEFINS PRODUCTION FROM NGLs AND OFFGAS RECOVERY ADDS SIGNIFICANT ADDITIONAL MARGIN POTENTIAL TO THE NATURAL GAS VALUE CHAIN $/MMBtu 20142009 2010 2011 2012 2013
  27. 27. © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1451 Canadian Operations Hold Distinct Feedstock Cost Advantage WPZ – NGL & Petchem Services Note: Historical CMAI spot pricing for propylene and propane and AECO pricing for natural gas. Assume 1.05 lbs of propane for each 1 lb of propylene cracked. $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 $0.90 $1.00 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Natural Gas Propane Cracking Propylene OFFGAS PROPYLENE MARGINOFFGAS PROPYLENE MARGIN $US/lb 20142009 2010 2011 2012 2013 Industry Margin Offgas Margin WPZ – West
  28. 28. © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1453 West WPZ – West 2013 2014 (Dollars in millions) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr Revenues: Fee-based revenues: Gathering & processing $ 134 $ 141 $ 143 $ 144 $ 562 $ 132 Production handling and transportation 116 110 114 118 458 116 Other fee revenues 9 9 8 7 33 8 Commodity-based revenues: NGL sales from gas processing 142 137 151 128 558 103 Marketing sales 46 46 55 34 181 30 Other sales 10 7 8 8 33 12 Tracked revenues — 1 — 1 2 — 457 451 479 440 1,827 401 Intrasegment eliminations — — (1 ) — (1 ) — Total revenues 457 451 478 440 1,826 401 Segment costs and expenses: NGL cost of goods sold 44 51 54 40 189 38 Marketing cost of goods sold 46 46 55 33 180 30 Other cost of goods sold 4 2 2 3 11 4 Depreciation and amortization expenses 61 58 58 59 236 58 Other segment costs and expenses 116 131 103 118 468 106 Tracked costs — 1 — 1 2 — Intrasegment eliminations — — (1 ) — (1 ) — Total segment costs and expenses 271 289 271 254 1,085 236 Reported segment profit 186 162 207 186 741 165 Adjustments — — — — — — Adjusted segment profit $ 186 $ 162 $ 207 $ 186 $ 741 $ 165 © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1454 West operating statistics WPZ – West 2013 2014 (Dollars in millions) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr Operating statistics Gathering and Processing Gathering volumes (Tbtu) 240 250 254 244 988 229 Plant inlet natural gas volumes (Tbtu) 295 305 310 264 1,174 249 Ethane equity sales (million gallons) 15 37 51 12 115 4 Non-ethane equity sales (million gallons) 102 106 110 89 407 69 NGL equity sales (million gallons) 117 143 161 101 522 73 Ethane margin ($/gallon) $ (0.03 )$ (0.01 )$ (0.02 )$ (0.001 )$ (0.02 ) $ 0.12 Non-ethane margin ($/gallon) $ 0.96 $ 0.81 $ 0.89 $ 0.99 $ 0.91 $ 0.94 NGL margin ($/gallon) $ 0.83 $ 0.60 $ 0.61 $ 0.86 $ 0.71 $ 0.89 Ethane production (million gallons) 98 124 139 89 450 60 Non-ethane production (million gallons) 262 281 294 246 1,083 233 NGL production (million gallons) 360 405 433 335 1,533 293 Northwest Pipeline LLC Throughput (Tbtu) 201.0 136.9 168.6 210.4 716.9 192.4 Avg. daily transportation volumes (Tbtu) 2.2 1.5 1.8 2.3 2.0 2.1 Avg. daily firm reserved capacity (Tbtu) 3.0 3.0 3.0 3.0 3.0 3.0
  29. 29. © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1455 Large-scale Infrastructure, Positioned to Capture Future Supply and Market Growth WPZ – West Piceance Basin > 328 miles of pipeline > 1.4Bcf/d of gathering capacity > 1.8Bcf/d of processing capacity Wyoming > 3,587 miles of pipeline > 1.1 Bcf/d of gathering capacity > 2.2Bcf/d of processing capacity Northwest Pipeline > 3,900 miles of pipeline > 3.9 MMdt of peak-day delivery capacity Four Corners > 3,841 miles of pipeline > 1.8 Bcf/d of gathering capacity > 1.5Bcf/d of processing/ treating capacity © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1456 0 1 2 3 4 5 2013 2014 2015 Non-Ethane 3rd Party Ethane Equity Ethane Expect to Continue Delivering Significant Volumes; Ethane Rejection Persists WPZ – West GATHERING AND PLANT INLET VOLUMESGATHERING AND PLANT INLET VOLUMES NGL PRODUCTIONNGL PRODUCTION 0 500 1,000 1,500 2,000 2,500 3,000 3,500 2013 2014 2015 Gathering Plant Inlet MMBtu/day Gallons (Millions)/Day
  30. 30. © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1457 Continued Strong Fee-based Revenue WPZ – West 0 200 400 600 800 1,000 1,200 1,400 1,600 2013 2014 2015 NWP Fee G&P Fee Commodity-based Fee Equity Non-Ethane Equity Ethane Other GROSS MARGIN BY TYPEGROSS MARGIN BY TYPE ($MM) © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1458 Potential Pipeline Expansions to Capture Future Markets WPZ – West Note: Projects not in current guidance. Portland Boise Spokane Seattle Jordan Cove Oregon LNG TransAlta Centralia Coal Plant > Washington Expansion – Mainline expansion – Serve Oregon LNG export terminal and PNW markets > Pacific Connector Gas Pipeline – Partnership to serve Jordan Cove LNG export terminal and PNW markets Washington Expansion > Up to 750 MDth/d > ISD: 2018 Pacific Connector > 232 mi. 36-inch > ISD: 2018
  31. 31. © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1459 WPZ – West > Plentiful, diverse supply sources – British Columbia, Alberta, Rockies, San Juan > Sole provider in most major markets – Low-cost provider in competitive markets – Strong credit quality of customers > Long-term firm transportation capacity of 3.9 MMdt/d > Storage capacity – 14 MMdt of capacity – 731 Mdt/d of withdrawal capability > Assets – 3,900 miles of pipeline and 41 compressor stations – 2 storage facilities Northwest Pipeline: Backbone of the Pacific Northwest Gas Delivery System Seattle Spokane Portland Boise Northwest Pipeline WPZ Non-GAAP Reconciliations
  32. 32. © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1461 WPZ Non-GAAP Reconciliations > This presentation includes certain financial measures, adjusted segment profit, adjusted segment profit + DD&A, distributable cash flow, and cash distribution coverage ratio that are non-GAAP financial measures as defined under the rules of the Securities and Exchange Commission. > For Williams Partners L.P., adjusted segment profit excludes items of income or loss that we characterize as unrepresentative of our ongoing operations. Adjusted segment profit + DD&A is further adjusted to add back depreciation and amortization expense. Management believes these measures provide investors meaningful insight into Williams Partners L.P.'s results from ongoing operations. > For Williams Partners L.P. we define distributable cash flow as net income plus depreciation and amortization and cash distributions from our equity investments less our earnings from equity investments, income attributable to noncontrolling interests and maintenance capital expenditures. We also adjust for payments and/or reimbursements under omnibus agreements with Williams and certain other adjustments. Total distributable cash flow is reduced by any amounts associated with operations which occurred prior to our ownership of the underlying assets to arrive at distributable cash flow attributable to partnership operations. > For Williams Partners L.P. we also calculate the ratio of distributable cash flow attributable to partnership operations to the total cash distributed (cash distribution coverage ratio). This measure reflects the amount of distributable cash flow relative to our cash distribution. We have also provided this ratio calculated using the most directly comparable GAAP measure, net income. > This presentation is accompanied by a reconciliation of these non-GAAP financial measures to their nearest GAAP financial measures. Management uses these financial measures because they are accepted financial indicators used by investors to compare company performance. In addition, management believes that these measures provide investors an enhanced perspective of the operating performance of the Partnership’s assets and the cash that the business is generating. Neither adjusted segment profit, adjusted segment profit + DD&A, nor distributable cash flow 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. WPZ Non-GAAP Disclaimer © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1462 Reconciliation of non-GAAP distributable cash flow to GAAP net income WPZ Non-GAAP Reconciliations 2013* 2014 (Dollars in millions, except coverage ratios) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr Williams Partners L.P. Reconciliation of Non-GAAP “Distributable cash flow” to GAAP “Net income” Net income $ 344 $ 272 $ 289 $ 218 $ 1,123 $ 352 Income attributable to noncontrolling interests — — — (3 ) (3 ) — Depreciation and amortization 196 191 201 203 791 208 Non-cash amortization of debt issuance costs included in interest expense 3 4 4 3 14 4 Equity earnings from investments (18 ) (35 ) (31 ) (20 ) (104 ) (23) Allocated reorganization-related costs 2 — — — 2 — Loss related to Geismar Incident — 6 4 4 14 — Geismar Incident adjustment for insurance and timing — — (35 ) 118 83 54 Contingency (gain) loss — — 9 16 25 — Net reimbursements from Williams under omnibus agreements 4 4 2 3 13 3 Maintenance capital expenditures (44 ) (76 ) (79 ) (59 ) (258 ) (36 ) Distributable cash flow excluding equity investments 487 366 364 483 1,700 562 Plus: Equity investments cash distributions to Williams Partners L.P. 38 41 34 41 154 43 Distributable cash flow 525 407 398 524 1,854 605 Less: Pre-partnership Distributable cash flow 28 20 20 15 83 23 Distributable cash flow attributable to partnership operations $ 497 $ 387 $ 378 $ 509 $ 1,771 $ 582 Total cash distributed $ 473 $ 489 $ 442 $ 556 $ 1,960 $ 566 Coverage ratios: Distributable cash flow attributable to partnership operations divided by Total cash distributed 1.05 0.79 0.86 0.92 0.90 1.03 Net income divided by Total cash distributed 0.73 0.56 0.65 0.39 0.57 0.62 *Recast due to the dropdown of the Canadian operations to Williams Partners in first quarter 2014.
  33. 33. © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1463 Adjusted segment profit reconciliation and adjusted segment profit +DD&A WPZ Non-GAAP Reconciliations 2013* 2014 (Dollars in millions) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr Segment profit (loss): Northeast G&P $ (9) $ 12 $ (1) $ (26) $ (24) $ 6 Atlantic-Gulf 159 152 137 166 614 165 West 186 162 207 186 741 165 NGL & Petchem Services 158 101 68 19 346 167 Total segment profit $ 494 $ 427 $ 411 $ 345 $ 1,677 $ 503 Adjustments: Northeast G&P Share of impairments at equity method investee $ — $ — $ — $ 7 $ 7 $ — Contingency loss — — 9 16 25 — Loss related to compressor station fire — — — — — 6 Total Northeast G&P adjustments — — 9 23 32 6 Atlantic-Gulf Litigation settlement gain (6 ) — — — (6 ) — Net loss (recovery) related to Eminence storage facility leak — (5 ) 5 (2 ) (2 ) — Total Atlantic-Gulf adjustments (6 ) (5 ) 5 (2 ) (8 ) — NGL & Petchem Services Loss related to Geismar Incident — 6 4 4 14 — Geismar Incident adjustment for insurance and timing — — (35 ) 118 83 54 Total NGL & Petchem Services adjustments — 6 (31 ) 122 97 54 Total adjustments included in segment profit $ (6) $ 1 $ (17) $ 143 $ 121 $ 60 © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1464 Adjusted segment profit reconciliation and adjusted segment profit +DD&A cont’d WPZ Non-GAAP Reconciliations 2013* 2014 (Dollars in millions) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr Adjusted segment profit (loss): Northeast G&P $ (9) $ 12 $ 8 $ (3) $ 8 $ 12 Atlantic-Gulf 153 147 142 164 606 165 West 186 162 207 186 741 165 NGL & Petchem Services 158 107 37 141 443 221 Total adjusted segment profit $ 488 $ 428 $ 394 $ 488 $ 1,798 $ 563 Depreciation and amortization (DD&A): Northeast G&P $ 29 $ 32 $ 33 $ 38 $ 132 $ 39 Atlantic-Gulf 93 87 92 91 363 94 West 61 58 58 59 236 58 NGL & Petchem Services 13 14 18 15 60 17 Total depreciation and amortization $ 196 $ 191 $ 201 $ 203 $ 791 $ 208 Adjusted segment profit (loss) + DD&A: Northeast G&P $ 20 $ 44 $ 41 $ 35 $ 140 $ 51 Atlantic-Gulf 246 234 234 255 969 259 West 247 220 265 245 977 223 NGL & Petchem Services 171 121 55 156 503 238 Total adjusted segment profit + DD&A $ 684 $ 619 $ 595 $ 691 $ 2,589 $ 771 * Recast due to the dropdown of the Canadian operations to Williams Partners in the first quarter of 2014. Note: Segment profit (loss) includes equity earnings (losses) and income (loss) from investments reported in other investing income (loss) - net in the Consolidated Statement of Comprehensive Income. Equity earnings (losses) result from investments accounted for under the equity method. Income (loss) from investments results from the management of certain equity investments.
  34. 34. © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1465 Segment profit guidance – reported to adjusted WPZ Non-GAAP Reconciliations Dollars in millions 2014 Guidance 2015 Guidance Low Midpoint High Low Midpoint High Reported segment profit: Northeast G&P $189 $355 Atlantic - Gulf 630 965 West 620 595 NGL & Petchem Services 1,016 915 Total reported segment profit 2,275 2,455 2,635 2,610 2,830 3,050 Adjustments: Loss related to compressor station fire 6 6 6 Total adjustments - Northeast G&P 6 6 6 - - - Total adjustments - Atlantic - Gulf - - - - - - Total adjustments - West - - - - - - Geismar incident adjustment for insurance and timing (116) (116) (116) - - - Total adjustments - NGL & Petchem Services (116) (116) (116) - - - Total segment profit adjustments (110) (110) (110) - - - Adjusted segment profit: Northeast G&P 195 355 Atlantic - Gulf 630 965 West 620 595 NGL & Petchem Services 900 915 Total adjusted segment profit $2,165 $2,345 $2,525 $2,610 $2,830 $3,050 © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1466 WPZ adjusted segment profit + DD&A WPZ Non-GAAP Reconciliations Dollars in millions 2014 Guidance 2015 Guidance Low Midpoint High Low Midpoint High Adjusted segment profit: Northeast G&P $195 $355 Atlantic - Gulf 630 965 West 620 595 NGL & Petchem Services 900 915 Total adjusted segment profit 2,165 2,345 2,525 2,610 2,830 3,050 Depreciation, Depletion and Amortiz. (DD&A): Northeast G&P 170 210 Atlantic - Gulf 430 495 West 235 235 NGL & Petchem Services 85 95 Total DD&A 895 920 945 1,010 1,035 1,060 Adjusted segment profit + DD&A: Northeast G&P 365 565 Atlantic - Gulf 1,060 1,460 West 855 830 NGL & Petchem Services 985 1,010 Total adjusted segment profit + DD&A $3,060 $3,265 $3,470 $3,620 3,865 $4,110
  35. 35. © 2014 The Williams Companies, Inc. All rights reserved.Williams Partners L.P. First Quarter 2014 Earnings | 4/30/1467 Net income & distributable cash flow WPZ Non-GAAP Reconciliations Notes: 1 Distributions reflect per-unit increases of 5% - 7%. Distributions are paid in the quarter following the quarter to which they relate (as presented here) and thus do not match cash distributions paid on the cash flow schedules. Dollars in millions 2014 Guidance 2015 Guidance Low Midpoint High Low Midpoint High Net Income $1,778 1,918 $2,058 $1,900 $2,085 $2,270 D D & A 895 920 945 1,010 1,035 1,060 Maintenance Capex (305) (340) (375) (295) (325) (355) Attributable to Noncontrolling Interests (40) (45) (50) (100) (105) (110) Geismar incident adjustment for insurance and timing (116) (116) (116) - - - Other / Rounding 31 36 41 90 95 100 Distributable Cash Flow 2,243 2,373 2,503 2,605 2,785 2,965 Less: Pre-Partnership Distributable Cash Flow 23 23 23 - - - Distributable Cash Flow Attributable to Partnership Operations $2,220 $2,350 $2,480 $2,605 $2,785 $2,965 Cash Distributions 1 $2,351 $2,419 $2,487 $2,632 $2,714 $2,796 Cash Distribution Coverage Ratio 0.94x 0.97x 1.00x 0.99x 1.03x 1.06x Net Income / Cash Distributions 0.76x 0.79x 0.83x 0.72x 0.77x 0.81x

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