Exhibit 99.1

		Williams (NYSE: WMB) One Williams Center Tulsa, OK 74172 800-Williams www.williams.com

DATE: Aug. 3, 2011

MEDIA CONTACT:		INVESTOR CONTACTS:
Jeff Pounds		Travis Campbell		Sharna Reingold		David Sullivan
(918) 573-3332		(918) 573-2944		(918) 573-2078		(918) 573-9360

Williams Reports Second-Quarter 2011 Financial Results

	•		Net Income is $227 Million, $0.38 per Share for Second Quarter 2011
	•		Adjusted Income from Continuing Operations is $0.39 per Share, Up 39% in 2Q
	•		Strong Performances Across All Businesses Drive Improved 2Q Adjusted Results
	•		2011 Adjusted EPS Guidance Midpoint Increased $0.05 to $1.60
	•		IPO, Spinoff of Exploration & Production Business on Schedule

Quarterly Summary Financial Information		2Q 2011								2Q 2010
Per share amounts are reported on a diluted basis. All amounts are attributable to The Williams Companies, Inc.		millions				per share				millions				per share
Income from continuing operations		$	230			$	0.38			$	188			$	0.31
Loss from discontinued operations			(3	)			—				(3	)			—
Net income		$	227			$	0.38			$	185			$	0.31
Adjusted income from continuing operations*		$	231			$	0.39			$	163			$	0.28

Year-to-Date Summary Financial Information		YTD 2011								YTD 2010
Per share amounts are reported on a diluted basis. All amounts are attributable to The Williams Companies, Inc.		millions				per share				millions				per share
Income (loss) from continuing operations		$	559			$	0.94				($7	)			($0.01	)
Loss from discontinued operations			(11	)			(0.02	)			(1	)			—
Net income (loss)		$	548			$	0.92				($8	)			($0.01	)
Adjusted income from continuing operations*		$	443			$	0.74			$	371			$	0.64

TULSA, Okla. — Williams (NYSE: WMB) announced unaudited net income attributable to Williams, for second-quarter 2011 of $227 million, or $0.38 per share on a diluted basis, compared with net income of $185 million, or $0.31 per share on a diluted basis for second-quarter 2010.

Williams (NYSE: WMB)		Second-Quarter 2011 Financial Results — Aug. 3, 2011		Page 1 of 10

Improvements in the company’s businesses, described more fully below, drove the increase in net income for second-quarter 2011.

Year-to-date through June 30, Williams reported net income of $548 million, or $0.92 per share, compared with a net loss of $8 million, or a net loss of $0.01 per share for the same period in 2010.

In addition to the strong business performance, the significant improvement in results for year-to-date 2011 is primarily due to the absence of $645 million of pre-tax charges incurred during first-quarter 2010. The charges were in conjunction with the strategic restructuring that transformed Williams Partners L.P. (NYSE: WPZ) into a leading diversified master limited partnership. The year-to-date 2011 period also benefited from a first-quarter $124 million income tax benefit associated with federal settlements and an international revised assessment, both pertaining to prior periods.

Adjusted Income from Continuing Operations

Adjusted income from continuing operations was $231 million, or $0.39 per share, for second-quarter 2011, compared with $163 million, or $0.28 per share for second-quarter 2010.

For the first six months of 2011, Williams’ adjusted income from continuing operations was $443 million, or $0.74 per share, compared with $371 million, or $0.64 per share for the same period in 2010.

The 42-percent increase in the adjusted results for the second quarter was due to improved results in all of the company’s businesses. The 19-percent increase in the year-to-date adjusted results was due to improvements in the Williams Partners and Midstream Canada & Olefins segments, partially offset by lower results from Exploration & Production. There is a more detailed description of the business results later in this press release.

Adjusted income from continuing operations reflects the removal of items considered unrepresentative of ongoing operations and the effect of mark-to-market accounting and is a non-GAAP measure. Reconciliations to the most relevant GAAP measure are attached to this news release.

CEO Comment

Alan Armstrong, Williams’ president and chief executive officer, made the following comments:

“On the heels of an outstanding second quarter — with adjusted EPS up 39 percent — we are increasing our full-year earnings outlook based on continued strong performance across all of our businesses.

Williams (NYSE: WMB)		Second-Quarter 2011 Financial Results — Aug. 3, 2011		Page 2 of 10

“We are executing our strategy to unlock shareholder value on a number of fronts. We are on track for a third-quarter IPO of WPX Energy, our exploration and production business, followed by a tax-free spinoff of our remaining interest to Williams shareholders no later than first-quarter 2012.

“We also are taking steps that clearly define Williams as a high-growth, high-dividend energy-infrastructure company. In June, our shareholders enjoyed the first payout of a quarterly dividend at a new, 60 percent higher rate. And we certainly expect to deliver more strong increases in our dividend.

“Our asset portfolio provides a clear line of sight to delivering significant shareholder value. We are extremely fortunate to have assets and market positions that continue to generate compelling, large-scale growth projects with attractive returns.

“Williams has the ability, the financial capacity and the track record to develop these projects and deliver value for investors and customers. Importantly, Williams also has an MLP structure that fuels our ability to pay high dividends while we are funding significant growth with cost- advantaged capital and maintaining the investment-grade credit that is a key tenet of our financial strategy.

“We also will continue to pursue disciplined acquisition and investment opportunities that are consistent with our business and financial strategies.”

Earnings Guidance Increased for 2011, Unchanged for 2012

Williams is increasing its 2011 guidance for adjusted earnings per share at the midpoint by $0.05, up to $1.60 per share. Higher expected olefin and NGL margins are driving the increase in earnings guidance.

Capital expenditure guidance in 2011 for Williams Partners is being reduced $150 million at the midpoint to reflect somewhat slower spending.

Please note that 2011-12 earnings and capital expenditure guidance does not reflect the company’s previously announced plans to separate into two stand-alone, publicly traded companies.

Williams’ assumptions for certain energy commodity prices for 2011-12 and the corresponding guidance for the company’s earnings and capital expenditures are displayed in the following table.

Williams (NYSE: WMB)		Second-Quarter 2011 Financial Results — Aug. 3, 2011		Page 3 of 10

Commodity Price Assumptions and Financial Outlook		2011												2012
As of Aug. 3, 2011
		Low				Mid				High				Low				Mid				High
Natural Gas ($/MMBtu):
NYMEX		$	3.40			$	4.25			$	5.10			$	4.00			$	5.00			$	6.00
Rockies		$	3.10			$	3.85			$	4.60			$	3.65			$	4.55			$	5.45
Avg. San Juan/Mid-Continent		$	3.20			$	4.00			$	4.80			$	3.70			$	4.65			$	5.60
Oil / NGL:
Crude Oil - WTI ($  per barrel)		$	80			$	95			$	110			$	80			$	95			$	110
Crude to Gas Ratio			21.6x				22.5x				23.5x				18.3x				19.2x				20.0x
NGL to Crude Oil Relationship			57	%			53	%			50	%			53	%			54	%			54	%
Average NGL Margins ($  per gallon) (1)		$	0.72			$	0.78			$	0.84			$	0.60			$	0.75			$	0.90
Capital & Investment Expenditures (millions)
Williams Partners (2)		$	1,410			$	1,573			$	1,735			$	1,480			$	1,630			$	1,780
Exploration & Production			1,300				1,450				1,600				1,300				1,700				2,100
Midstream Canada & Olefins			350				400				450				400				450				500
Total Capital & Investment Expenditures (3)		$	3,125			$	3,475			$	3,825			$	3,200			$	3,800			$	4,400
Cash Flow from Continuing Operations (millions)		$	2,825			$	3,125			$	3,425			$	3,150			$	3,688			$	4,225
Adjusted Segment Profit (millions) (4)
Williams Partners		$	1,745			$	1,890			$	2,035			$	1,780			$	2,050			$	2,320
Exploration & Production			270				395				520				325				600				875
Midstream Canada & Olefins			250				300				350				275				325				375
Total Adjusted Segment Profit (3)		$	2,275			$	2,588			$	2,900			$	2,375			$	2,975			$	3,575
Adjusted Diluted Earnings Per Share (4)		$	1.35			$	1.60			$	1.85			$	1.45			$	1.95			$	2.45

Business Segment Results

Williams’ business segments for financial reporting are Williams Partners, Exploration & Production, Midstream Canada & Olefins, and Other. The Williams Partners segment includes the consolidated results of Williams Partners L.P.; Exploration & Production includes the domestic exploration and production business, gas marketing, and the company’s controlling interest in Apco Oil & Gas International Inc.; Midstream Canada & Olefins includes the results of Williams’ Canadian midstream and domestic olefins business.

Williams (NYSE: WMB)		Second-Quarter 2011 Financial Results — Aug. 3, 2011		Page 4 of 10

Consolidated Segment Profit		2Q								YTD
Amounts in millions		2011				2010				2011				2010
Williams Partners		$	471			$	361			$	908			$	785
Exploration & Production			94				73				145				226
Midstream Canada & Olefins			72				61				146				81
Other			2				18				22				25
Consolidated Segment Profit		$	639			$	513			$	1,221			$	1,117

Adjusted Consolidated Segment Profit*		2Q								YTD
Amounts in millions		2011				2010				2011				2010
Williams Partners		$	474			$	345			$	911			$	764
Exploration & Production			92				71				161				215
Midstream Canada & Olefins			72				55				146				75
Other			2				5				11				12
Adjusted Consolidated Segment Profit		$	640			$	476			$	1,229			$	1,066

Williams Partners

Williams Partners is focused on natural gas transportation, gathering, treating, processing and storage; natural gas liquid (NGL) fractionation; and oil transportation.

For second-quarter 2011, Williams Partners reported segment profit of $471 million, compared with $361 million for second-quarter 2010. Year-to-date through June 30, Williams Partners reported segment profit of $908 million, compared with $785 million for the same period in 2010.

Higher NGL margins and higher fee-based revenues in the midstream business, as well as improved results in the gas pipeline business, drove the significant improvement in both the second-quarter and year-to-date periods.

There is a more detailed description of Williams Partners’ interstate gas pipeline and midstream business results in the partnership’s second-quarter 2011 financial results news release, which is also being issued today.

Exploration & Production

Exploration & Production is focused on developing its significant natural gas reserves and related NGLs in the Piceance Basin of western Colorado, as well as its growing positions in the Bakken Shale oil play in North Dakota

Williams (NYSE: WMB)		Second-Quarter 2011 Financial Results — Aug. 3, 2011		Page 5 of 10

and the Marcellus Shale in Pennsylvania. The business also has domestic operations in the Powder River Basin in Wyoming and the San Juan Basin in the southwestern United States and international investments in Argentina and Colombia.

Exploration & Production reported segment profit of $94 million for second-quarter 2011, compared with $73 million for second-quarter 2010. This 29-percent increase in second-quarter segment profit is due to higher production volumes and revenue from oil production in the Bakken Shale and higher realized average prices, partially offset by increased costs and expenses associated with Bakken crude oil production and higher gathering fees. Higher production volumes and new agreements associated with the transfer of the Piceance gathering assets to Williams Partners in late 2010 drove the higher gathering fees in the quarter.

Average daily domestic production in second-quarter 2011 was up 9 percent over second-quarter 2010. It was also up 4 percent over first-quarter 2011. During second-quarter 2011, the realized average price for domestic production was $5.58 per thousand cubic feet of natural gas equivalent (Mcfe), compared with $5.06 in second-quarter 2010 — an increase of 10 percent. Most of this is due to improved oil and NGL prices in second-quarter 2011, while natural gas prices were also slightly higher.

Average Daily Production		2Q												1Q				Sequential
Natural gas & NGL basins (MMcfe/d)		2011				2010				Change				2011				Change
Piceance Basin			725				651				11	%			706				3	%
Powder River Basin			220				228				-4	%			225				-2	%
Marcellus Shale			9				4				125	%			9				0	%
San Juan Basin			138				145				-5	%			130				6	%
Barnett Shale			69				57				21	%			64				8	%
Other			9				14				-36	%			10				-10	%
Subtotal (MMcfe/d)			1,170				1,099				6	%			1,144				2	%
Oil basins
Amounts in thousand of barrels oil equivalent per day (Mboe/d)
Bakken Shale			5.5				—				na				1.8				206	%
International			9.7				9.7				0	%			9.2				5	%
Subtotal (Mboe/d)			15.2				9.7				57	%			11.0				38	%
Total Production (MMcfe/d)			1,261				1,157				9	%			1,210				4	%

Williams expects average annual daily production to increase by 9 percent and 11 percent at guidance midpoints in 2011 and 2012, respectively.

Year-to-date through June 30, Exploration & Production reported segment profit of $145 million, compared with $226 million for the same period in 2010. Certain higher segment costs and expenses, partially offset by higher

Williams (NYSE: WMB)		Second-Quarter 2011 Financial Results — Aug. 3, 2011		Page 6 of 10

production revenue, drove the lower year-to-date segment profit. These expenses included higher gathering and processing charges and higher depreciation, depletion and amortization.

Williams is currently operating three rigs in the Bakken shale and expects to double its level of drilling activity to six rigs by early 2012. Second-quarter 2011 production in the Bakken more than tripled over the first-quarter 2011, from approximately 1,800 to 5,500 barrels of oil equivalent per day.

In the Marcellus shale, the company is currently operating four rigs and expects to increase its level of drilling activity to eight or nine rigs by the end of 2012. In Susquehanna County, the company has approximately 70 MMcf/d of production waiting on the expected September 2011 completion of the Laser pipeline.

In the Piceance basin, which is Williams’ largest area of concentrated development, wellhead production includes approximately 25 million gallons of NGLs recovered each month..

Midstream Canada & Olefins

Midstream Canada & Olefins reported second-quarter 2011 segment profit of $72 million, compared with $61 million for second-quarter 2010. For the first six months of 2011, Midstream Canada & Olefins reported segment profit of $146 million, compared with $81 million for the same period in 2010.

Higher Canadian NGL margins from butylene/butane mix products helped drive the improvement in the second-quarter and year-to-date results. The separate products produced by the company’s Canadian butylene/butane splitter placed in service in August 2010 provide a higher combined per-unit margin than the butylene/butane mix product sold previously.

Higher per-unit margins on Geismar ethylene also contributed to the improved results in the year-to-date period.

Quarterly Materials to be Posted Shortly; Presentation, Q&A Webcast Scheduled for Next Week

Williams’ second-quarter 2011 analyst package and data book should be available shortly at www.williams.com.

The investor presentation on the quarterly results and outlook, including a recorded commentary with CEO Alan Armstrong, will be available at www.williams.com after the close of market on Monday, Aug. 8. The company will host its second-quarter 2011 Q&A live webcast on Tuesday, Aug. 9 at 9:30 a.m. EDT. Participants are encouraged to access the webcast at www.williams.com.

Williams (NYSE: WMB)		Second-Quarter 2011 Financial Results — Aug. 3, 2011		Page 7 of 10

A limited number of phone lines also will be available at (888) 208-1812. International callers should dial (719) 325-2138. Replays of the second-quarter webcast in both streaming and downloadable podcast formats will be available for two weeks following the event at www.williams.com.

Management set the dates for release of Williams’ second-quarter earnings package and investor presentation in coordination with other scheduling commitments. The result is slightly different from the company’s traditional timeline.

Form 10-Q

The company plans to file its second-quarter 2011 Form 10-Q with the Securities and Exchange Commission this week. Once filed, the document will be available on both the SEC and Williams websites.

Non-GAAP Measures

This press release includes certain financial measures, adjusted segment profit, adjusted earnings and adjusted per share measures that are non-GAAP financial measures as defined under the rules of the Securities and Exchange Commission. Adjusted segment profit, adjusted earnings and adjusted per share measures exclude items of income or loss that the company characterizes as unrepresentative of its ongoing operations and reflects mark-to-market adjustments for certain hedges and other derivatives in Exploration & Production. These measures provide investors meaningful insight into the company’s results from ongoing operations and better reflect results on a basis that is more consistent with derivative portfolio cash flows. The mark-to-market adjustments reverse forward unrealized mark-to-market gains or losses from derivatives and add realized gains or losses from derivatives for which mark-to-market income has been previously recognized, with the effect that the resulting adjusted segment profit is presented as if mark-to-market accounting had never been applied to these derivatives. The measure is limited by the fact that it does not reflect potential unrealized future losses or gains on derivative contracts. However, management compensates for this limitation since derivative assets and liabilities do reflect unrealized gains and losses of derivative contracts. Overall, management believes the mark-to-market adjustments provide an alternative measure that more closely matches realized cash flows for these derivatives but does not substitute for actual cash flows.

This press release is accompanied by a reconciliation of these non-GAAP financial measures to their nearest GAAP financial measures. Management uses these financial measures because they are widely accepted financial indicators used by investors to compare a company’s performance. In addition, management believes that these measures provide investors an enhanced perspective of the operating performance of the company

Williams (NYSE: WMB)		Second-Quarter 2011 Financial Results — Aug. 3, 2011		Page 8 of 10

and aid investor understanding. Neither adjusted segment profit, adjusted earnings nor adjusted per share measures are intended to represent an alternative to segment profit, net income or earnings per share. They should not be considered in isolation or as substitutes for a measure of performance prepared in accordance with United States generally accepted accounting principles.

About Williams (NYSE: WMB)

Williams is an integrated natural gas company focused on exploration and production, midstream gathering and processing, and interstate natural gas transportation primarily in the Rocky Mountains, Gulf Coast, Pacific Northwest, Eastern Seaboard and the Marcellus Shale in Pennsylvania. Most of the company’s interstate gas pipeline and midstream assets are held through its 75-percent ownership interest (including the general-partner interest) in Williams Partners L.P. (NYSE: WPZ), a leading diversified master limited partnership. More information is available at www.williams.com. Go to http://www.b2i.us/irpass.asp?BzID=630&to=ea&s=0 to join our e-mail list.

# # #

Our reports, filings, and other public announcements may contain or incorporate by reference statements that do not directly or exclusively relate to historical facts. Such statements are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We make these forward looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995. You typically can identify forward-looking statements by various forms of words such as “anticipates,” “believes,” “seeks,” “could,” “may,” “should,” “continues,” “estimates,” “expects,” “forecasts,” “intends,” “might,” “goals,” “objectives,” “targets,” “planned,” “potential,” “projects,” “scheduled,” “will” or other similar expressions. These forward-looking statements are based on management’s beliefs and assumptions and on information currently available to management and include, among others, statements regarding:

	•		Amounts and nature of future capital expenditures;
	•		Expansion and growth of our business and operations;
	•		Financial condition and liquidity;
	•		Business strategy;
	•		Estimates of proved, probable, and possible gas and oil reserves;
	•		Reserve potential;
	•		Development drilling potential;
	•		Cash flow from operations or results of operations;
	•		Seasonality of certain business segments; and
	•		Natural gas, natural gas liquids, and crude oil prices and demand.

Forward-looking statements are based on numerous assumptions, uncertainties and risks that could cause future events or results to be materially different from those stated or implied in this announcement. Many of the factors that will determine these results are beyond our ability to control or predict. Specific factors that could cause actual results to differ from results contemplated by the forward-looking statements include, among others, the following:

	•		Availability of supplies (including the uncertainties inherent in assessing, estimating, acquiring and developing future natural gas and oil reserves), market demand, volatility of prices, and the availability and cost of capital;
	•		Inflation, interest rates, fluctuation in foreign exchange, and general economic conditions (including future disruptions and volatility in the global credit markets and the impact of these events on our customers and suppliers);
	•		The strength and financial resources of our competitors;
	•		Development of alternative energy sources;
	•		The impact of operational and development hazards;
	•		Costs of, changes in, or the results of laws, government regulations (including climate change regulation and/or potential additional regulation of drilling and completion of wells), environmental liabilities, litigation, and rate proceedings;
	•		Our costs and funding obligations for defined benefit pension plans and other postretirement benefit plans;

Williams (NYSE: WMB)		Second-Quarter 2011 Financial Results — Aug. 3, 2011		Page 9 of 10

	•		Changes in maintenance and construction costs;
	•		Changes in the current geopolitical situation;
	•		Our exposure to the credit risk of our customers;
	•		Risks related to strategy and financing, including restrictions stemming from our debt agreements, future changes in our credit ratings and the availability and cost of credit;
	•		Risks associated with future weather conditions;
	•		Acts of terrorism; and
	•		Additional risks described in our filings with the Securities and Exchange Commission (“SEC”).

Given the uncertainties and risk factors that could cause our actual results to differ materially from those contained in any forward-looking statement, we caution investors not to unduly rely on our forward-looking statements. We disclaim any obligations to and do not intend to update the above list or to announce publicly the result of any revisions to any of the forward-looking statements to reflect future events or developments.

In addition to causing our actual results to differ, the factors listed above may cause our intentions to change from those statements of intention set forth in this announcement. Such changes in our intentions may also cause our results to differ. We may change our intentions, at any time and without notice, based upon changes in such factors, our assumptions, or otherwise.

Investors are urged to closely consider the disclosures and risk factors in our annual report on Form 10-K filed with the SEC on Feb. 24, 2011, and our quarterly reports on Form 10-Q available from our offices or from our website at www.williams.com.

Williams (NYSE: WMB)		Second-Quarter 2011 Financial Results — Aug. 3, 2011		Page 10 of 10

Financial Highlights and Operating Statistics
(UNAUDITED)

Final

June 30, 2011

Reconciliation of Income (Loss) from Continuing Operations Attributable to The Williams Companies, Inc. to Adjusted Income
(UNAUDITED)

		2010																				2011
(Dollars in millions, except per-share amounts)		1st Qtr				2nd Qtr				3rd Qtr				4th Qtr				Year				1st Qtr				2nd Qtr				Year
Income (loss) from continuing operations attributable to The Williams Companies, Inc. available to common stockholders		$	(195	)		$	188			$	(1,258	)		$	178			$	(1,087	)		$	329			$	230			$	559
Income (loss) from continuing operations — diluted earnings per common share		$	(0.33	)		$	0.31			$	(2.15	)		$	0.30			$	(1.86	)		$	0.55			$	0.38			$	0.94
Adjustments:
Williams Partners (WP)
Gain on sale of base gas from Hester storage field		$	(5	)		$	(3	)		$	—			$	—			$	(8	)		$	(4	)		$	—			$	(4	)
Involuntary conversion gain related to Ignacio			—				(4	)			—				—				(4	)			—				—				—
Involuntary conversion gain related to Hurricane Ike			—				(7	)			(7	)			—				(14	)			—				—				—
Gain on sale of certain assets			—				—				(12	)			—				(12	)			—				—				—
Settlement gain related to Green Canyon development			—				—				—				(6	)			(6	)			—				—				—
Loss related to Eminence storage facility leak			—				—				—				5				5				4				3				7
Impairment of certain gathering assets			—				—				—				9				9				—				—				—
Unclaimed property assessment accrual adjustment- TGPL			—				(1	)			—				—				(1	)			—				—				—
Unclaimed property assessment accrual adjustment — NWP			—				(1	)			—				—				(1	)			—				—				—
Total Williams Partners adjustments			(5	)			(16	)			(19	)			8				(32	)			—				3				3
Exploration & Production (E&P)
Gain on acreage swap			—				—				—				(7	)			(7	)			—				—				—
Gain on sale of certain assets			—				—				(1	)			—				(1	)			—				—				—
Impairment of goodwill			—				—				1,003				—				1,003				—				—				—
Impairments of certain natural gas properties and reserves			—				—				678				—				678				—				—				—
Prior years’ DD&A related to Piceance measurement issue			—				—				—				19				19				—				—				—
Unclaimed property assessment accrual			—				2				—				—				2				—				—				—
Mark-to-market adjustments			(9	)			(4	)			(17	)			—				(30	)			18				(2	)			16
Total Exploration & Production adjustments			(9	)			(2	)			1,663				12				1,664				18				(2	)			16
Midstream Canada & Olefins
Customer settlement gain			—				(6	)			—				—				(6	)			—				—				—
Total Midstream Canada & Olefins adjustments			—				(6	)			—				—				(6	)			—				—				—
Other
(Gain)/loss from Venezuela investment			—				(13	)			(30	)			—				(43	)			(11	)			—				(11	)
Total Other adjustments			—				(13	)			(30	)			—				(43	)			(11	)			—				(11	)
Adjustments included in segment profit (loss)			(14	)			(37	)			1,614				20				1,583				7				1				8
Adjustments below segment profit (loss)
Exploration & Production reorganization expenses — Corporate			—				—				—				—				—				4				2				6
Augusta refinery environmental accrual — Corporate			—				—				8				—				8				—				—				—
Early debt retirement costs — Corporate			606				—				—				—				606				—				—				—
Acceleration of unamortized debt costs related to credit facility amendment - Corporate			3				—				—				—				3				—				—				—
Williams Partners			1				—				—				—				1				—				—				—
Restructuring transaction costs — Corporate			33				—				—				—				33				—				—				—
Restructuring transaction costs — Williams Partners			6				2				4				—				12				—				—				—
Allocation of Williams Partners’ adjustments to noncontrolling interests			(4	)			1				1				(2	)			(4	)			—				(1	)			(1	)
			645				3				13				(2	)			659				4				1				5
Total adjustments			631				(34	)			1,627				18				2,242				11				2				13
Less tax effect for above items			(239	)			9				(238	)			—				(468	)			(4	)			(1	)			(5	)
Adjustments for tax-related items [1]			11				—				—				66				77				(124	)			—				(124	)
Adjusted income from continuing operations available to common stockholders		$	208			$	163			$	131			$	262			$	764			$	212			$	231			$	443
Adjusted diluted earnings per common share, including mark-to-market adjustments [2]		$	0.36			$	0.28			$	0.22			$	0.44			$	1.29			$	0.36			$	0.39			$	0.74
Weighted-average shares — diluted (thousands)			583,929				592,498				584,744				594,157				592,887				596,567				597,633				597,097

[1]		The first quarter of 2010 includes an adjustment for the reduction of tax benefits on the Medicare Part D federal subsidy due to enacted healthcare legislation. The fourth quarter of 2010 includes an adjustment to reflect taxes on undistributed earnings of certain foreign operations that are no longer considered permanently reinvested. The first quarter of 2011 includes federal settlements and an international revised assessment.
[2]		Interest expense, net of tax, associated with our convertible debentures has been added back to adjusted income from continuing operations available to common stockholders to calculate adjusted diluted earnings per common share.

Note: The sum of earnings per share for the quarters may not equal the total earnings per share for the year due to changes in the weighted-average number of common shares outstanding.

Consolidated Statement of Operations
(UNAUDITED)

		2010																				2011
(Dollars in millions, except per-share amounts)		1st Qtr				2nd Qtr				3rd Qtr				4th Qtr				Year				1st Qtr				2nd Qtr				Year
Revenues		$	2,591			$	2,289			$	2,300			$	2,420			$	9,600			$	2,575			$	2,669			$	5,244
Segment costs and expenses:
Costs and operating expenses			1,917				1,717				1,748				1,782				7,164				1,908				1,938				3,846
Selling, general and administrative expenses			111				123				122				142				498				137				134				271
Impairments of goodwill and long-lived assets			—				—				1,681				10				1,691				—				—				—
Other (income) expense — net			(1	)			(12	)			(3	)			(10	)			(26	)			(1	)			3				2
Total segment costs and expenses			2,027				1,828				3,548				1,924				9,327				2,044				2,075				4,119
Equity earnings (losses)			40				39				38				46				163				40				45				85
Income (loss) from investments			—				13				30				—				43				11				—				11
Total segment profit (loss)			604				513				(1,180	)			542				479				582				639				1,221
Reclass equity earnings (losses)			(40	)			(39	)			(38	)			(46	)			(163	)			(40	)			(45	)			(85	)
Reclass (income) loss from investments			—				(13	)			(30	)			—				(43	)			(11	)			—				(11	)
General corporate expenses			(85	)			(45	)			(42	)			(49	)			(221	)			(51	)			(47	)			(98	)
Operating income (loss)			479				416				(1,290	)			447				52				480				547				1,027
Interest accrued			(164	)			(154	)			(158	)			(156	)			(632	)			(158	)			(156	)			(314	)
Interest capitalized			17				13				13				8				51				9				9				18
Investing income — net			39				55				68				47				209				51				45				96
Early debt retirement costs			(606	)			—				—				—				(606	)			—				—				—
Other income (expense) — net			(7	)			(1	)			(4	)			—				(12	)			4				—				4
Income (loss) from continuing operations before income taxes			(242	)			329				(1,371	)			346				(938	)			386				445				831
Provision (benefit) for income taxes			(94	)			104				(150	)			114				(26	)			(6	)			145				139
Income (loss) from continuing operations			(148	)			225				(1,221	)			232				(912	)			392				300				692
Income (loss) from discontinued operations			2				(3	)			(5	)			(4	)			(10	)			(8	)			(3	)			(11	)
Net income (loss)			(146	)			222				(1,226	)			228				(922	)			384				297				681
Less: Net income (loss) attributable to noncontrolling interests			47				37				37				54				175				63				70				133
Net income (loss) attributable to The Williams Companies, Inc.		$	(193	)		$	185			$	(1,263	)		$	174			$	(1,097	)		$	321			$	227			$	548
Amounts attributable to The Williams Companies, Inc.:
Income (loss) from continuing operations		$	(195	)		$	188			$	(1,258	)		$	178			$	(1,087	)		$	329			$	230			$	559
Income (loss) from discontinued operations			2				(3	)			(5	)			(4	)			(10	)			(8	)			(3	)			(11	)
Net income (loss)		$	(193	)		$	185			$	(1,263	)		$	174			$	(1,097	)		$	321			$	227			$	548
Diluted earnings (loss) per common share:
Income (loss) from continuing operations		$	(0.33	)		$	0.31			$	(2.15	)		$	0.30			$	(1.86	)		$	0.55			$	0.38			$	0.94
Income (loss) from discontinued operations			—				—				(0.01	)			(0.01	)			(0.02	)			(0.01	)			—				(0.02	)
Net income (loss)		$	(0.33	)		$	0.31			$	(2.16	)		$	0.29			$	(1.88	)		$	0.54			$	0.38			$	0.92
Weighted-average number of shares used in computations (thousands)			583,929				592,498				584,744				594,157				584,552				596,567				597,633				597,097
Common shares outstanding at end of period (thousands)			584,223				584,546				584,724				585,891				585,891				587,990				588,637				588,637
Market price per common share (end of period)		$	23.10			$	18.28			$	19.11			$	24.72			$	24.72			$	31.18			$	30.25			$	30.25
Common dividends per share		$	0.11			$	0.125			$	0.125			$	0.125			$	0.485			$	0.125			$	0.200			$	0.325

Note: The sum of earnings (loss) per share for the quarters may not equal the total earnings (loss) per share for the year due to changes in the weighted-average number of common shares outstanding.

Reconciliation of Segment Profit (Loss) to Adjusted Segment Profit (Loss)
(UNAUDITED)

		2010																				2011
(Dollars in millions)		1st Qtr				2nd Qtr				3rd Qtr				4th Qtr				Year				1st Qtr				2nd Qtr				Year
Segment profit (loss):
Williams Partners		$	424			$	361			$	371			$	418			$	1,574			$	437			$	471			$	908
Exploration & Production			153				73				(1,631	)			70				(1,335	)			51				94				145
Midstream Canada & Olefins			20				61				42				49				172				74				72				146
Other			7				18				38				5				68				20				2				22
Total segment profit (loss)		$	604			$	513			$	(1,180	)		$	542			$	479			$	582			$	639			$	1,221
Adjustments:
Williams Partners		$	(5	)		$	(16	)		$	(19	)		$	8			$	(32	)		$	—			$	3			$	3
Exploration & Production			(9	)			(2	)			1,663				12				1,664				18				(2	)			16
Midstream Canada & Olefins			—				(6	)			—				—				(6	)			—				—				—
Other			—				(13	)			(30	)			—				(43	)			(11	)			—				(11	)
Total segment adjustments		$	(14	)		$	(37	)		$	1,614			$	20			$	1,583			$	7			$	1			$	8
Adjusted segment profit (loss):
Williams Partners		$	419			$	345			$	352			$	426			$	1,542			$	437			$	474			$	911
Exploration & Production			144				71				32				82				329				69				92				161
Midstream Canada & Olefins			20				55				42				49				166				74				72				146
Other			7				5				8				5				25				9				2				11
Total adjusted segment profit (loss)		$	590			$	476			$	434			$	562			$	2,062			$	589			$	640			$	1,229