Williams Reaffirms Strong Dividend Growth in 2012-2014 as Previously Announced Despite New, Lower Earnings Expectations for 2Q Through 2013; Raising Earnings Guidance in 2014

Maintaining Outlook for 55% Higher Dividend in 2012 and 20% Growth in Each 2013 and 2014; Supported by Growing Fee-Based Business and Benefit of Projects Coming Into Service Increasing 2014 Adjusted EPS Guidance Midpoint to $1.95 on Ethylene Crack Spread Recovering to First-Half 2012 Level, Strength of Fundamental Business, Growth and Some Improvement in NGL Prices Lowering 2012 and 2013 Adjusted EPS Guidance Midpoint to $1.15 and $1.38, Respectively Estimating 2Q 2012 Adjusted EPS of Approximately $0.21, Down From $0.39 in 1Q 2012 Key Driver for 2012-2013 Earnings Change Is Near-Term NGL Prices – Sharply Lower as Result of Record-Warm Winter, Slowing Economy, Growing Supplies and Other Factors Company Intends to Pursue Drop-Down of Geismar Olefins-Production Facility Interest to Majority-Owned Williams Partners L.P. Developing Many Attractive Projects to Meet Growing Infrastructure Demand Williams

today reaffirmed its previously published outlook for robust dividend growth through 2014, despite lowering its earnings outlook for 2012 and 2013 primarily because of less-favorable commodity prices. At the same time, the company increased its 2014 outlook for adjusted earnings per share at a level 59 percent higher than in 2011, based on the strength of its fundamental business, growth and improvement in certain commodity prices driven by continued high crude oil-to-gas ratios. Williams continues to expect to pay a full-year 2012 shareholder dividend of $1.20 per share, a 55 percent increase over 2011. As well, the company confirmed it expects the full-year dividend it pays shareholders in each 2013 and 2014 to increase by 20 percent – to $1.44 and $1.75 per share, respectively. The dividend increases are supported by growing fee-based business and the benefit of new projects coming into service, as well as by strong cash coverage. The strength in cash coverage is designed to provide a significant buffer to periodic commodity-price volatility and other potential adverse factors. For the second quarter this year, Williams expects its adjusted earnings per share will be significantly lower than the first-quarter's results, primarily because of an unexpectedly sharp decline in natural-gas-liquids margins in May and June at Williams Partners L.P.

. Additional factors in the change include higher expenses at Williams Partners because of maintenance accelerated during a third-party fractionator outage; costs associated with recent acquisitions; normal seasonal demand changes and maintenance at Williams Partners' gas pipeline business; somewhat lower-than-expected volumes because of construction timing; lower Canadian sales volumes as a result of third-party outages and the effect of filling our new Boreal Pipeline, which went into service in late June. The company estimates its second-quarter adjusted earnings per share will be approximately $0.21, down from $0.39 in the first quarter this year and $0.29 in the second quarter last year. The company's estimates of its second-quarter results are preliminary and subject to change based on completion of its normal quarter-end review process. As previously announced, the company plans to report its finalized second-quarter financial results on Aug. 1.