WILLIAMS COMPANIES, INC. Quarterly Report for Q1 Ended Mar 31, 2010

Summary

Williams Companies, Inc. (WMB) reported a net loss of $193 million, or $0.33 per diluted share, for the first quarter of 2010. This compares unfavorably to a net loss of $172 million, or $0.29 per diluted share, in the same period of the prior year. The increased loss was significantly impacted by $606 million in early debt retirement costs, primarily premiums paid, related to a strategic restructuring completed in February 2010. This restructuring involved contributing substantial midstream and gas pipeline assets to Williams Partners L.P. (WPZ). Despite the net loss, the company's financial condition shows some positive signs. Revenues increased to $2.596 billion from $1.922 billion in the prior year, driven by higher natural gas liquids (NGL) and crude oil marketing revenues, as well as improved natural gas prices. The company also highlighted a focus on growth strategies and cost management. Liquidity remains a key focus, with approximately $4.7 billion in consolidated liquidity available as of March 31, 2010, comprising cash and cash equivalents and unused credit facilities.

Key Highlights

• 1Reported a net loss of $193 million for Q1 2010, an increase from the $172 million net loss in Q1 2009.
• 2Earnings per diluted share were ($0.33) for Q1 2010, compared to ($0.29) in Q1 2009.
• 3Total revenues increased to $2.596 billion in Q1 2010 from $1.922 billion in Q1 2009, driven by higher NGL and crude oil marketing revenues and improved commodity prices.
• 4Incurred $606 million in early debt retirement costs as part of a significant strategic restructuring completed in February 2010.
• 5The strategic restructuring involved contributing midstream and gas pipeline assets to Williams Partners L.P. (WPZ).
• 6Maintained substantial consolidated liquidity of approximately $4.7 billion as of March 31, 2010.
• 7Capital expenditures for Q1 2010 were $428 million, down from $612 million in Q1 2009.

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