8-KRegulation FDExhibits & Filings

WILLIAMS COMPANIES, INC. 8-K Report, Regulation FD Disclosure (Jul 18, 2008)

Filed July 18, 2008For Securities:WMB

Summary

This Form 8-K filing from Williams Companies, Inc. (WMB) on July 18, 2008, primarily serves as a Regulation FD disclosure, announcing that ExxonMobil has exercised its contractual option to purchase an interest in a portion of the Piceance Basin reserves. This transaction is expected to result in Williams receiving approximately $71 million. The Piceance Basin reserves were acquired by Williams in May 2008. A significant portion (approximately two-thirds) of these acquired acreage is located within an area of mutual interest where Williams operates in partnership with ExxonMobil. The agreement granted ExxonMobil the right to acquire up to a 49% interest in the assets situated within this area. This disclosure provides investors with immediate information on a material transaction impacting the company's financial position.

Key Highlights

  • 1Williams Companies, Inc. will receive approximately $71 million from ExxonMobil.
  • 2ExxonMobil exercised its contractual option to purchase an interest in Piceance Basin reserves.
  • 3The transaction relates to reserves acquired by Williams in May 2008.
  • 4The acquired acreage is partly within an 'area of mutual interest' with ExxonMobil.
  • 5ExxonMobil has the option to purchase up to a 49% interest in specific assets within the area of mutual interest.
  • 6This filing is a Regulation FD disclosure, ensuring timely and broad public dissemination of the information.

Frequently Asked Questions

The primary purpose of this 8-K filing is to disclose, under Regulation FD, that ExxonMobil has exercised its contractual option to purchase an interest in a portion of the Piceance Basin reserves recently acquired by Williams Companies, Inc. This ensures that the information is made available to the public in a timely manner.

Williams Companies, Inc. is expected to receive approximately $71 million as a result of ExxonMobil's exercise of its option.

The Piceance Basin reserves refer to oil and natural gas assets located in the Piceance Basin region that Williams Companies, Inc. acquired in May 2008. This specific transaction involves a portion of those acquired reserves that are part of an area of mutual interest with ExxonMobil.

In this context, an 'area of mutual interest' is a geographical area where Williams and ExxonMobil have a pre-existing agreement to jointly participate in or have options regarding the acquisition or development of oil and gas reserves. Williams is the operator within this specific area, and ExxonMobil had the option to acquire a stake in the assets located there.