Good day, everyone, and welcome to The Williams/Williams Partners First Quarter 2016 Earnings Conference Call. Today's conference is being recorded. At this time, for opening remarks and introductions, I would like to turn the call over to Mr. John Porter, Head of Investor Relations. Please go ahead.

Thanks, Doug. Good morning and thank you for your interest in Williams and Williams Partners. Yesterday afternoon, we released our financial results and posted several important items on our website. These items include yesterday's press releases and related investor materials, including the slide deck that our President and CEO, Alan Armstrong, will speak to momentarily. Our CFO, Don Chappel, is available to respond to questions. And also, we have the five leaders of Williams' operating areas with us: Walter Bennett leads the West; John Dearborn leads NGL & Petchem Services; Rory Miller leads Atlantic-Gulf; Bob Purgason leads Central; and Jim Scheel leads Northeast G&P. In our presentation materials, you will find an important disclaimer related to forward-looking statements. This disclaimer is important and integral to all of our remarks and you should review it. Also included in our presentation materials are various non-GAAP measures that we reconcile to generally accepted accounting principles. These reconciliation schedules appear at the back of the presentation materials. Over the past many months, we've taken many questions related to the merger between Williams and Energy Transfer. The focus of our call today is our first quarter results and business outlook, so we're not going to take questions on the pending merger or other related matters. With respect to the pending merger, I will mention that the Williams' board is unanimously committed to enforcing its rights under the merger agreement entered into with ETE on September 28, 2015, and to delivering the benefits of the merger agreement to Williams' stockholders. Williams is committed to mailing the proxy statement, holding the stockholder vote and closing the transaction as soon as possible. As always, please feel free to contact our Investor Relations team for questions you may have, and thank you in advance for your cooperation on that.…

Thank you. And we'll go first to Shneur Gershuni with UBS. Please go ahead.

Hi. Good morning, guys. Just keeping my questions focused on Williams as it stands, your leverage reduction plans you've talked about in the past, asset sales was something that's mentioned. I was wondering if you can talk about what other options are on the table. Some of your peers executed a dividend cut. Has the board considered a temporary cut in WMB's dividend policy to accelerate deleveraging? I was just sort of wondering what paths you're considering in terms of moving forward with that. Donald R. Chappel - Chief Financial Officer & Director: Shneur, this is Don Chappel. Good morning. Great question. I think our comments are consistent with our comments from last quarter. Again, we're very much focused on asset monetizations to fill the gap. The boards will continue to look at dividend policy. We certainly understand all the levers. But at this point in terms of the financing needs, it's really primarily related to asset monetizations. And as well, I'll just comment that we remain committed to seek to maintain our investment grade ratings.

And does the recent improvement in Chesapeake's credit outlook, or I guess the way the bonds have traded, does that ease some of the pressure on the leverage reduction? Donald R. Chappel - Chief Financial Officer & Director: We don't see it that way. Again, I think we're focused on getting our leverage metrics or keeping our leverage metrics at investment grade levels.

Okay. And then a follow-up, ethane has been a big question as of late. I was wondering if you can comment on how your Northeastern assets will benefit from, I guess, what's been emerging but nascent recovery in ethane? And I guess if you can also comment on the other side of your business about Geismar margins, could that potentially be a drag if it recovers, or would you expect ethylene to go up faster as well too? Alan S. Armstrong - Chairman & Chief Executive Officer: Great questions, Shneur. Let me hit the Northeast part of that question first. Our exposure in the Northeast is really as a service provider there for the most part and we are recovering ethane in there as a service to our customers there. So we enjoy throughput through both our processing and our ethane transportation systems up there and those came online I think in the end of the second quarter last year. So we continue to see improvement from that, but we really don't see too much in the way of margin exposure there, if you will. So most of our revenues there come from just the transport. The area that we're obviously more exposed to is in the Rockies and where we do have rights to the ethane there. And I'll couple that now with the question on Geismar, which is, what if ethane goes up? That's the really nice thing about our portfolio is that we're rarely exposed from natural gas through to ethylene because we're actually long ethane in our portfolio. So if ethane prices go up, we're actually going to see more margin because our length in ethane is bigger if we're in full production and, of course, we would be if ethane prices went up. Our length in ethane is bigger than our short on the Geismar side, so it'd actually be a net positive to us if we were to see that occur.

Is it fair to conclude that if ethylene went up faster, then it would be a double benefit? Alan S. Armstrong - Chairman & Chief Executive Officer: That's right. So really, the spread that you should think about us really is natural gas to ethylene when you think about our full exposure.

Great. And then finally on Constitution, start date's been pushed out. It certainly sounds pretty political and so forth. What's your confidence in the new start date that was put forward? Do you really think that there's some options on the table that you can reroute or do something to address some of the concerns and get this project back on track? Alan S. Armstrong - Chairman & Chief Executive Officer: Yeah, I'm very proud of our team. I think we did everything right there. I think we took great measures to address all the issues that were raised with us and I think we have extremely strong evidence in that regard. And so I am hopeful that science and the facts will win out in that process. And that's certainly what we're counting on. And so I think this is a little bit unprecedented from our perspective where we felt like we've dealt with all of the issues in a very meaningful manner and took very extreme measures to meet all the conditions that were requested of us. There are times when you get things requested of you and you just can't live with them because they might be too expensive or something, but that isn't the case here and we felt like we met all the conditions that were raised to us. So I think as the facts unfold on this, I think they're going to weigh in our favor. And so I think that's how we feel about it. Now, it's early in the process and we're still weighing those odds certainly. But I would just tell you as a partnership and as the operator, I've really been very closely involved in watching what we've done and our team has worked extremely hard to do the right thing. We've re-routed and re-routed and we've made changes after changes after changes to meet the conditions. And as far as we were concerned, we had asked and asked and asked and been told over and over that we had met all the things that had been requested of us. So that sat with the Governor for right at a year after we had been told that we had met the conditions. And so, we'll see. I certainly wouldn't tell you that we know for certain what that looks like, but we do think the facts are very much in our camp on this.

So there's a way to formally appeal and it not get so political? Or does it involve you having to make another change and then go through the same process again? Alan S. Armstrong - Chairman & Chief Executive Officer: I think the facts as we've laid them out, certainly if whatever the issues were raised to us such that we could address it, we'd be happy to. But I think at this point, it's really a matter of dealing with the facts that are in the permit application and taking that forward through the legal process. So that's the way we see it as we sit here today.

Great. Thank you very much, guys. Alan S. Armstrong - Chairman & Chief Executive Officer: Thanks, Shneur.

And we'll go next to Brandon Blossman with Tudor, Pickering, Holt & Company. Please go ahead. Brandon Blossman - Tudor, Pickering, Holt & Co. Securities, Inc.: Good morning, gentlemen. Alan S. Armstrong - Chairman & Chief Executive Officer: Good morning. Brandon Blossman - Tudor, Pickering, Holt & Co. Securities, Inc.: Don, realizing that there's still a lot of moving pieces here, but with Constitution pushed out, presumably you have a decent line of sight on what 2016 growth capital looks like. Is the financing of 2016 and maybe even 2017 fully contingent on the outcome of the asset sales? And so is that a sequencing event, or is there any incremental color you can provide on debt versus equity needs incremental to those asset sales? Donald R. Chappel - Chief Financial Officer & Director: Right now, again, we're focused on asset monetization as the financing source above cash flows. And really, no plan at this time to issue equity in light of the still relatively weak equity prices and no plan to really issue debt other than revolver borrowings. Brandon Blossman - Tudor, Pickering, Holt & Co. Securities, Inc.: And any color on timing around those monetizations? Donald R. Chappel - Chief Financial Officer & Director: We're proceeding to explore the opportunities and I would expect we'd have something to talk about this summer. Brandon Blossman - Tudor, Pickering, Holt & Co. Securities, Inc.: Okay, fair enough. Thank you. And then, Alan, on the head count trim, the 10% reduction, is there color available on the strategic impetus there? Clearly commodity prices are bad. But on the other side of the equation, demand actually is quite good. Your growth projects are still out there and arguably to be added to over the midterm. How does that workforce reduction play into…

And we'll go next to Christine Cho with Barclays. Please go ahead.

Hi. I just wanted to touch upon the asset sales again. Can you guys – have you guys determined if Gulfstream would have to be sold if the deal were to close due to FTC issues? Donald R. Chappel - Chief Financial Officer & Director: Christine, there's no settlement at this time with the FTC, so I really can't comment on that. So – but we are exploring multiple asset sales to determine the path forward. So we have a couple of options or a few options.

Okay. And then just – you guys touched upon this, but it's been a while since I've focused on the West operations. So can you remind me how the G&P contracts are structured there? Is it essentially all POP or is there some keep-whole still there? Alan S. Armstrong - Chairman & Chief Executive Officer: Yeah. Let me have Walt Bennett answer that for you. Walt? Walter J. Bennett - SVP-West & Management Committee, Northwest Pipeline LLC: Sure. There's a combination of contracts and the majority are definitely fee-based, but there are some keep-whole contracts and percent-of-liquids as well. And so I think the way to think about it would be about – there is some commodity exposure at about 30% of the contracts.

Okay. And then the ethane rejection that's going on in that region, is it about 25,000 barrels per day? Am I in the ball park? Walter J. Bennett - SVP-West & Management Committee, Northwest Pipeline LLC: Well, we are now actually – we are recovering small amounts of ethane, just doing a partial recovery. And the way to think about the – if we were in full recovery would be to essentially just double the non-ethane production.

Okay. Alan S. Armstrong - Chairman & Chief Executive Officer: So if you look at the operating data for the quarter, I mean we had somewhere around 245 million gallons of non-ethane production. And that's effectively about the same amount of ethane if we were in full ethane recovery, that's about the amount. So that can give you a pretty good picture on what our ethane rejection is.

Okay, and then just another question on kind of Geismar. When I kind of think about the Petchem backdrop with the new crackers coming on and the feedstock cost of ethane rising, isn't it possible that ethylene prices won't rise and maybe not keep its historical correlation to crude? I mean have you guys thought about whether or not maybe this asset belongs better inside a more integrated Petchem with downstream capabilities? Alan S. Armstrong - Chairman & Chief Executive Officer: Certainly, we think that the offsetting exposure we have on the ethane is valuable to the assets, but we have made some progress back in this quarter. We made some progress on going into some fee-based business, so some ethane plus agreements for that and we continue to work on that. So I was excited to see our team pull out across the line strategically. That's where we've been trying to get that asset to and the team made some good progress on that in this quarter.

Okay. But nothing else to kind of give us? It's still early stages. Alan S. Armstrong - Chairman & Chief Executive Officer: Yes. Yeah. I think – again, I think we're working hard to that. It seems reasonable from our perspective that if somebody's willing to go build one, a cracker, that we can sell them the capacity at a much lower cost. And so that's the basis of that marketing effort and we are having some success on that front.

Okay, great. Thank you. Alan S. Armstrong - Chairman & Chief Executive Officer: Thanks.

And we'll go next to Craig Shere with Tuohy Brothers. Please go ahead.

Good morning. Alan S. Armstrong - Chairman & Chief Executive Officer: Morning, Craig.

Can you elaborate on the size or relative size thus far of the ethane plus contracting for Geismar 1 and maybe the timeframe you envision for this becoming more material to derisk that asset? Alan S. Armstrong - Chairman & Chief Executive Officer: John Dearborn, you want to take that question, please? John R. Dearborn - Senior VP-Natural Gas Liquids & Petchem Services, Williams Partners GP LLC: Sure. Thanks, Craig. At this point, we have a part of one of our contracts with a – one of our larger contracts with a customer that is now fee-based. And I would expect that you should see us moving in the market further toward the third quarter of this year. We might have some more to be able to tell you about perhaps some further progress on our initiative to sell more fee-based ethylene at Geismar.

Great. That'd be wonderful to hear progress on. John R. Dearborn - Senior VP-Natural Gas Liquids & Petchem Services, Williams Partners GP LLC: Yes.

And some updates on the latest in Northeast shut-ins and curtailed gas and expectations that maybe the FERC may finally step up and exercise some authority to get Constitution over the finish line? Alan S. Armstrong - Chairman & Chief Executive Officer: Yeah. Craig, I would just say that I suspect there will be a lot of people involved in trying to help resolve that. I think certainly, the Federal Government understands how critical that is. And I would even tell you the State of New York, the New York ISO and the power generators in New York and the businesses there understand how incredibly important that project is. So I think we'll have a lot of people weighing in on our side of that argument for obvious reasons. And so I think that'll happen. But I would say despite that, there's a number of projects that are continuing to expand and bring incremental volumes out of the area. And as you heard us mention, our New York loop on the old Laser Pipeline, which is now complete, as well as some compressor addition that we're doing to increase the capacity on that, that'll add about 140 MMcf a day. And there's a couple of power plants in the region that will also work to add incremental load in the area. And so we think that kind of debottlenecking will continue to go on. And meanwhile, we're ready to really express strongly the facts on the Constitution piece, and hopefully, that'll win the day.

Great. And last question, I understood that WPZ's a bit depressed and you've got asset sales that will fill any needs in 2016. Heading into 2017, do you see a longer line of potential monetizations? And any thoughts on the opening up of the capital markets recently for some of your stronger Midstream MLP peers, albeit at somewhat hefty issuance costs? Donald R. Chappel - Chief Financial Officer & Director: Craig, it's Don. Thanks for the question. I think it's a bit early to comment on 2017. Again, we have a lot of options and we'll continue to evaluate what the market offers us as the best possible option and act accordingly. So, again, we'll continue to focus on growing the business and keeping our credit metrics in line and, again, look for the best opportunities as we go through this 2016 period.

Fair enough. Thank you.

And we'll go next to Sharon Lui with Wells Fargo. Please go ahead.

Hi. Good morning. You talked about the 10% head count reduction. Just wondering if you can maybe quantify the potential savings from your cost reduction efforts and when you expect to realize the full benefit? Alan S. Armstrong - Chairman & Chief Executive Officer: Yeah, Sharon. First of all, as we mentioned, we made that cut right at the very end of the first quarter. And that's about – our head count prior to that was around 6,900 in terms of our head count, so that's about 690 in terms of reduction. And that was heavily weighted towards some of our E&C space as well as in our areas of overhead with a lighter reduction in our field operating force. And so that is – you can think about that as – if you do the math on that, you can think about that as a little under $100 million of reduction, but we still are working to take that down further through some other activities and particularly on our supply chain side. And our team there's doing a fantastic job of continuing to bring in lower cost as we take advantage of a reduction in that space. So, overall, we're excited about the ability to reduce, particularly in that supply chain area. And we certainly never like to go through any kind of work force reduction around here, but I would tell you that the team did a very nice job administering that and proud of the way the organization held its head high through a difficult time there.

That's helpful. I guess looking at the gathering volumes in the Central segment, it looks like the volumes were relatively level sequentially after declining for most of 2015. Can you maybe provide some color on the relative performance of some of the regions in the segment? Alan S. Armstrong - Chairman & Chief Executive Officer: I'm sorry, is your question specifically on the Central? Donald R. Chappel - Chief Financial Officer & Director: Yes.

Yeah, on Central volumes. Alan S. Armstrong - Chairman & Chief Executive Officer: Okay. Sure. Bob, you want to take that question?

Yeah, Sharon. As you pointed out, we've had a good, stable first quarter. And we're still seeing some declines in the Barnett and the Mid-Continent, as you would expect and consistent with other activities. It's offset by Haynesville predominantly, but Eagle Ford's kind of holding in there strong, too.

Okay, great. And any update in terms of negotiations with Chesapeake on the rates? Alan S. Armstrong - Chairman & Chief Executive Officer: Sharon, I'll take that. I would just tell you that we continue to work hard with them to look for win-win opportunities. And, again, we're pleased to get to do that with Chesapeake and consider them a very big and important customer. So we're always looking to find win-wins. We don't have anything specific to report on this quarter however.

And just a last question on the 2016 CapEx guidance. Any change I guess in that level, given the progress of some of your key projects and maybe the delay in Constitution? Donald R. Chappel - Chief Financial Officer & Director: Sharon, really no change in our overall capital plan for 2016.

Okay, great. Thank you. Alan S. Armstrong - Chairman & Chief Executive Officer: Thank you.

And we'll go next to Ted Durbin with Goldman Sachs. Please go ahead. Theodore Durbin - Goldman Sachs & Co.: Thanks. This is more of just a modeling question. But in the NGL segment, looks like your operating costs jumped up a bit this quarter relative to the last two quarters, $94 million versus running around $71 million. I'm just wondering if that's the new run rate or were there anything sort of one-off items this quarter? Alan S. Armstrong - Chairman & Chief Executive Officer: John, can you take that, please? John R. Dearborn - Senior VP-Natural Gas Liquids & Petchem Services, Williams Partners GP LLC: There should not be any very unusual ongoing matters here in the first quarter. I guess the only thing I think of and I'm not sure the numbers you're referring to, I haven't looked back at the charts here, is whether this FX impact is in those numbers. That would be non-recurring into future periods. Theodore Durbin - Goldman Sachs & Co.: Okay. Alan S. Armstrong - Chairman & Chief Executive Officer: I would just add to that that we did have quite a bit of cost in our startup of our Horizon facility and the new Redwater facility that goes with that in the quarter. So, some of that step-up is from the startup of that new facility in Canada, the CNRL Horizon facility. Theodore Durbin - Goldman Sachs & Co.: Got it. That's helpful. Thanks. And then I guess for Don, can you just give us a number around the leverage metric you're really looking at post the asset sale? Is 4.5 times the bogey, or 5 times or 4 times, just where you're trying to get to? And then are the agencies going to give you any forward credit for some of maybe the bigger projects that you're working towards? Donald R. Chappel - Chief Financial Officer & Director: I would say that we're working on ensuring that our leverage metrics, rating agency adjusted metrics are below 5 times and trending lower. And we do point out the sizeable investments we're making in projects will go into service in the future. And I think that's more a qualitative point with the agencies versus the primary metric that they look at. Theodore Durbin - Goldman Sachs & Co.: Got it. And then it was somewhat answered already, but any thought from the WMB side of things of providing support, whether it's IDR waivers or other things as you're in the higher capital spending portion here? Donald R. Chappel - Chief Financial Officer & Director: Yeah, I'll just comment that we're in the middle of a planned merger. And in light of that, we're not going to comment on those kinds of issues. Theodore Durbin - Goldman Sachs & Co.: Understood. I'll leave it at that. Thank you. Alan S. Armstrong - Chairman & Chief Executive Officer: Thank you.

And we'll go next to Danilo Juvane with BMO Capital Markets. Please go ahead.

Thanks. Good morning. Most of my questions have been hit, but I just wanted to expand on the Geismar question. So with the incremental cracking capacity coming online, don't you see pressure to ethylene margins going forward even though you have the gas to ethylene spread? Alan S. Armstrong - Chairman & Chief Executive Officer: Well, I would just say there is a number of derivative projects coming on as well and there's been some major outages recently from a couple of big international plants where there were some unfortunate events at some large plants overseas. And so we do think that there is a lot of ethylene capacity coming on. We also think there's a lot of derivative capacity coming on with that as well. And the U.S. really is positioned to continue to grow in its market share on a worldwide basis. And as well, something we're keeping our eyes on very closely is the ethylene export as the world continues to take advantage of the U.S.'s very low-cost natural gas-based olefins. And so we're keeping our eye on that and I think it's a reasonable question. John, I don't know if you would add any color to what I just stated there? John R. Dearborn - Senior VP-Natural Gas Liquids & Petchem Services, Williams Partners GP LLC: Yeah, the only thing I would add there is I think it's important to recognize that we're in a turnaround season now that's going to be prolonged through the remainder of this year, which certainly is going to I think keep supply constricted a bit. The U.S. ethylene industry continues to produce at record levels each quarter and so we see it growing, but it's growing at a relatively slow rate. And I guess I would also be expecting that, as we contemplate these plants coming on in the future, the world market for ethylene continues to grow at a reasonable pace. And so long as the U.S. remains able to export, which I think Alan just indicated it would be and we believe it would be, that these plants will likely feather-in more reasonably than you might expect. Big bumps of ethylene coming on, that could have deleterious effects on the market. It will have some impact, but I do believe the plants will come on in a more feathered fashion over this next couple of year period.

Thanks. Alan S. Armstrong - Chairman & Chief Executive Officer: I would just follow that just to say that remember as you run that math, remember to look at our length of ethane because if you're correct that we have that much new ethylene coming on in the U.S., the ethane margin and our assets that handle ethane are going to enjoy that as well. So, as you look in your model and try to look at that model, you need to make sure you appreciate the length that we would have if ethane were to get soaked up by all that ethylene cracking. John R. Dearborn - Senior VP-Natural Gas Liquids & Petchem Services, Williams Partners GP LLC: And then add to that, Alan, some incremental pipeline of revenues we'd enjoy as well.

Got you. Got you. Thank you. My second question, if I could. With the emerging NGL fundamentals, how do you think about getting to downstream business? Before a couple years back you had the Blue Grass initiatives. As you see these fundamentals strengthen, is that something that you're thinking about potentially getting to again, say, a year from now? Alan S. Armstrong - Chairman & Chief Executive Officer: Yeah. I would just say we have so much on our plate right now taking care of the natural gas demand side of the situation that when we think we have such huge competitive advantages on that front that that's really where our focus is going to be for the time being. Now having said that, we do continue to build out some of our purity systems in the Gulf Coast where the Gulf Coast continues to take advantage of very low cost NGLs and the Petchem expansion going on in the Gulf Coast. And of course, that's been a long-term strategy of ours to be taking advantage of the need for logistics movement around the Petchem industry, and so we will enjoy that. But I don't see us looking at any very large scale investment opportunities in the space that you reference.

Great. That's it for me. Thank you. Alan S. Armstrong - Chairman & Chief Executive Officer: Thank you.

Thank you. And we have ran out of time for today. I'd like to turn the conference back over to Mr. Alan Armstrong. Alan S. Armstrong - Chairman & Chief Executive Officer: Great. Well, thank you all very much. Appreciate all the great questions. As always, I know it's a busy day and so we're just very excited to be in the space we are on the natural gas front right now and are really seeing our strategy really starting to pay off for us. And appreciate your continued commitment to the company. Thank you.

Thank you. This does conclude today's conference. You may now disconnect, and have a wonderful day.