WMB The Williams Cos., Inc.

Management Discussion

• Net income (loss) attributable to The Williams Companies, Inc., for the six months ended June 30, 2019, increased $218 million compared to the six months ended June 30, 2018, reflecting $238 million of increased service revenues primarily associated with expansion projects, a $219 million decrease to Net income (loss) attributable to noncontrolling interests primarily due to the WPZ Merger, and a $122 million gain on the second-quarter 2019 sale of our 50 percent interest in Jackalope. These increases are partially offset by a $74 million first-quarter 2019 impairment of an equity-method investment, the absence of a prior year $62 million gain on deconsolidation of Jackalope, lower commodity margins, current year severance charges, higher interest expense, the absence of the Four Corners area business which was sold in October 2018, and an increased provision for income taxes. Asset impairments in the current year were substantially offset by similar levels of impairments in the prior year.