107263--2/26/2010--WILLIAMS_COMPANIES

related topics

{gas, price, oil}

{operation, natural, condition}

{cost, contract, operation}

{regulation, change, law}

{capital, credit, financial}

{debt, indebtedness, cash}

{loss, insurance, financial}

{system, service, information}

{acquisition, growth, future}

{competitive, industry, competition}

{cost, operation, labor}

{cost, regulation, environmental}

{operation, international, foreign}

{financial, litigation, operation}

{customer, product, revenue}

{interest, director, officer}

{stock, price, operating}

{product, liability, claim}

{condition, economic, financial}

{product, market, service}

Risks Related to the Restructuring We did not seek a vote of our shareholders in connection with the restructuring. If there is a determination that such a vote was required, the resulting consequences could impact us. We may not realize the anticipated benefits from the restructuring. Risks Inherent to our Industry and Business The long-term financial condition of our Gas Pipeline and Midstream businesses is dependent on the continued availability of natural gas supplies in the supply basins that we access, demand for those supplies in our traditional markets, and the prices of and market demand for natural gas. Significant prolonged changes in natural gas prices could affect supply and demand and cause a termination of our transportation and storage contracts or a reduction in throughput on our system. Prices for NGLs, natural gas and other commodities are volatile and this volatility could adversely affect our financial results, cash flows, access to capital and ability to maintain existing businesses. We might not be able to successfully manage the risks associated with selling and marketing products in the wholesale energy markets. Significant capital expenditures are required to replace our reserves. Failure to replace reserves may negatively affect our business. Exploration and development drilling may not result in commercially productive reserves. Estimating reserves and future net revenues involves uncertainties. Negative revisions to reserve estimates, oil and gas prices or assumptions as to future natural gas prices may lead to decreased earnings, losses, or impairment of oil and gas assets, including related goodwill. Certain of our services are subject to long-term, fixed-price contracts that are not subject to adjustment, even if our cost to perform such services exceeds the revenues received from such contracts. We may not be able to maintain or replace expiring natural gas transportation and storage contracts at favorable rates or on a long-term basis. Our risk measurement and hedging activities might not be effective and could increase the volatility of our results. We depend on certain key customers for a significant portion of our revenues. The loss of any of these key customers or the loss of any contracted volumes could result in a decline in our business. We are exposed to the credit risk of our customers, and our credit risk management may not be adequate to protect against such risk. Competition in the markets in which we operate may adversely affect our results of operations. The failure of new sources of natural gas production or LNG import terminals to be successfully developed in North America could increase natural gas prices and reduce the demand for our services. Our drilling, production, gathering, processing, storage and transporting activities involve numerous risks that might result in accidents, and other operating risks and hazards. We do not insure against all potential losses and could be seriously harmed by unexpected liabilities or by the ability of the insurers we do use to satisfy our claims. Execution of our capital projects subjects us to construction risks, increases in labor and materials costs and other risks that may adversely affect financial results. Our costs and funding obligations for our defined benefit pension plans and costs for our other post-retirement benefit plans are affected by factors beyond our control. Two of our subsidiaries act as the respective general partners of two different publicly-traded limited partnerships, Williams Partners L.P. and Williams Pipeline Partners L.P. As such, those subsidiaries operations may involve a greater risk of liability than ordinary business operations. Potential changes in accounting standards might cause us to revise our financial results and disclosures in the future, which might change the way analysts measure our business or financial performance. Our investments and projects located outside of the United States expose us to risks related to the laws of other countries, and the taxes, economic conditions, fluctuations in currency rates, political conditions and policies of foreign governments. These risks might delay or reduce our realization of value from our international projects. Our operating results for certain segments of our business might fluctuate on a seasonal and quarterly basis. Risks Related to Strategy and Financing Our debt agreements impose restrictions on us that may adversely affect our ability to operate our business. Future disruptions in the global credit markets may make equity and debt markets less accessible, create a shortage in the availability of credit and lead to credit market volatility. Adverse economic conditions could adversely affect our results of operations. A downgrade of our credit ratings could impact our liquidity, access to capital and our costs of doing business, and maintaining current credit ratings is under the control of independent third parties. Risks Related to Regulations that Affect our Industry Our natural gas sales, transmission, and storage operations are subject to government regulations and rate proceedings that could have an adverse impact on our results of operations. We are subject to risks associated with climate change. Costs of environmental liabilities and complying with existing and future environmental regulations, including those related to climate change and greenhouse gas emissions, could exceed our current expectations. If third-party pipelines and other facilities interconnected to our pipeline and facilities become unavailable to transport natural gas and NGLs or to treat natural gas, our revenues could be adversely affected. Our businesses are subject to complex government regulations. The operation of our businesses might be adversely affected by changes in these regulations or in their interpretation or implementation, or the introduction of new laws or regulations applicable to our businesses or our customers. Legal and regulatory proceedings and investigations relating to the energy industry and capital markets have adversely affected our business and may continue to do so. Risks Related to Employees, Outsourcing of Noncore Support Activities, and Technology Institutional knowledge residing with current employees nearing retirement eligibility might not be adequately preserved. Failure of or disruptions to our outsourcing relationships might negatively impact our ability to conduct our business. Risks Related to Weather, other Natural Phenomena and Business Disruption Our assets and operations can be adversely affected by weather and other natural phenomena.

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107263--2/26/2010--WILLIAMS_COMPANIES_INC