Williams in the Northeast Canton The Utica Capital Seminar Kristopher Evanto, Manager - Development, Utica June 10, 2015
Call Before You Dig Know what s below Call at least 48 hours before you dig 811 Routes you to your local One Call Center Free service Companies with underground utilities mark lines Respect the markers 2 Canton The Utica Capital Seminar 6/10/15
2015 Time Inc. Used under license. FORTUNE and Time Inc. are not affiliated with, and do not endorse products or services of, Williams. 3 Canton The Utica Capital Seminar 6/10/15
Diverse, Large-Scale Strategic Positions Delivering Value Today, Ongoing Growth Marcellus-Utica Zoom-in View 4 Canton The Utica Capital Seminar 6/10/15
Legacy Williams Footprint: Large-scale Infrastructure Established in Marcellus, Utica NW PA and NE Ohio/TRM > 530,000 dedicated acres Susquehanna Supply Hub > ~3 Bcf/d takeaway capacity Blue Racer Midstream 1, 2 > 1.5 Bcf/d gathering capacity > 1.0 Bcf/d processing capacity > ~125 Mbpd fractionation capacity Laurel Mountain Midstream 1, 2 > ~700 MMcf/d gathering Ohio Valley Midstream > 0.7 Bcf/d processing capacity > ~80 Mbpd fractionation/ de-ethanization 1 Represents 2015 estimated capacity at year end 2 LMM, Blue Racer Midstream are partially owned systems; amount shown reflect 100% 5 Canton The Utica Capital Seminar 6/10/15
Access Integration Enhances Large-Scale Position Bradford MN 1 > 3.0 Bcf/d gathering exit capacity Utica Midstream 1, 2 > 1.0 Bcf/d gathering exit capacity > 0.8 Bcf/d processing capacity > ~135 Mbpd fractionation capacity Marcellus South 1 > 0.7 Bcf/d gathering capacity 1 Represents 2015 estimated capacity at year end 2 Utica Midstream is partially owned; amount shown reflects 100% 6 Canton The Utica Capital Seminar 6/10/15
Combined Position to Serve Marcellus, Utica Wet/Dry Gas NW PA and NE Ohio/TRM Susquehanna Supply Hub Blue Racer Midstream 1 Bradford Supply Hub Utica Supply Hub 1 Ohio River Supply Hub > Ohio Valley Midstream > Laurel Mountain Midstream 1 > Marcellus South 1 LMM, Blue Racer and Utica Supply Hub are partially owned systems. Blue Racer and a portion of Utica Supply Hub is not operated by Williams. 7 Canton The Utica Capital Seminar 6/10/15
Utica Supply Hub Vertically Integrated in Rapidly Expanding Basin LEADING ASSETS POSITIONED TO SERVE PRODUCERS IN THE WET & DRY UTICA > Integrated from wellhead to fractionation > 1,650,000 acres dedicated Cardinal Gathering System: > Gathering and Compression 0.9 Bcf/d > 66% WPZ owned > WPZ operated Utica Dry Gathering System: Utica Dry Existing Development Area > Dry System > Ownership: 100% WPZ > Development Underway 8 Canton The Utica Capital Seminar 6/10/15
Utica Supply Hub Vertically Integrated in Rapidly Expanding Basin LEADING ASSETS POSITIONED TO SERVE PRODUCERS IN THE WET & DRY UTICA > Integrated from wellhead to fractionation Kensington Plant Utica East Ohio System: > Processing Capacity: Kensington Cryogenic Plant: 600 MMcf/d Leesville Cryogenic Plant: 200 MMcf/d > Fractionation Capacity: Harrison Fractionator: 135 MBpd > Ownership: 49% WPZ owned 13% 21% Acquisition Pending Leesville Plant Harrison Hub 9 Canton The Utica Capital Seminar 6/10/15
Caiman Energy II/Blue Racer Midstream JV Interest Enhances Presence in 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 Nearly 130 miles of NGL and condensate transportation pipelines Natrium complex in Marshall County, WV, processing and fractionation assets Berne processing complex in Monroe County, OH > Williams Partners owns a 58% equity investment in Caiman Energy II. Caiman Energy II owns 50% of Blue Racer Midstream > Williams Partners invested approximately $420 million through 2014 for its proportional interest in Blue Racer Midstream Berne Natrium 10 Canton The Utica Capital Seminar 6/10/15
Leading Gathering Position in Preeminent Gas Basin in North America TOTAL MARCELLUS/UTICA AVERAGE GATHERED VOLUMES (Bcf/d) - 1Q 2015 1 Non WPZ Marcellus 38% Marcellus & Utica Gathered Volumes 2 Utica Northeast Gathering Systems and WPZ Ownership 1 Source for total Utica and Marcellus volume: Energy Information Administration, average daily production for 1Q 2015. 2 Partially owned gathering system volumes are shown at 100%. Susquehanna Supply Hub (100%) Bradford Supply Hub (39%) Ohio River Supply Hub Ohio Valley Midstream (100%) Laurel Mountain Midstream (69%) Marcellus South (65%) Utica Supply Hub Utica Dry Gas (100%) Cardinal (66%) Blue Racer Midstream (29%) 11 Canton The Utica Capital Seminar 6/10/15
Vast Natural Gas Transportation System > 300,000 miles of natural gas transmission pipeline in U.S. 12 Canton The Utica Capital Seminar 6/10/15
Gaps Between Production & Infrastructure Create Price Volatility SPOT NATURAL GAS PRICES: JAN FEB 2014 SPOT NATURAL GAS PRICE: JAN 22, 2014 $120.70 $93.56 $4 $72.62 $31.12 $21.87 $120 1/1/2014 1/8/2014 1/15/2014 1/22/2014 1/29/2014 2/5/2014 Leidy Transco (Western Pa.) NYC Mid Atlantic > Source: ICE Gas Spot Price (Energy Velocity) 13 Canton The Utica Capital Seminar 6/10/15
Local Service Providers > Primary construction contractors draw from local resources and service providers, union & nonunion, for specific needs > Based on our experience, about 50% of the construction workforce comes from in-state labor, while about 25% is drawn specifically from the project area. > Specific service providers utilized during construction may include: Tree clearing Equipment rental Material providers (hay, rock/gravel) Road repair Housing Fuel providers Hardware
Committed to the Canton Region 15 Canton The Utica Capital Seminar 6/10/15
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