8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 29, 2010

The Williams Companies, Inc.

(Exact name of registrant as specified in its charter)

Delaware	1-4174	73-0569878
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

One Williams Center, Tulsa, Oklahoma	74172
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: 918-573-2000

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240-14a-12)

o    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

     On July 29, 2010, The Williams Companies, Inc. (“Williams” or the “Company”) issued a press release announcing its financial results for the quarter ended June 30, 2010. A copy of the press release and accompanying financial highlights and operating statistics and reconciliation schedules are furnished herewith as Exhibit 99.1 and are incorporated herein in their entirety by reference.

     The press release and accompanying financial highlights and operating statistics and reconciliation schedules are being furnished pursuant to Item 2.02, Results of Operations and Financial Condition. The information furnished is not deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, is not subject to the liabilities of that section and is not deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.

Item 9.01. Financial Statements and Exhibits.

     (a) None

     (b) None

     (c) None

     (d) Exhibits

Exhibit 99.1 Press release of the Company dated July 29, 2010, and accompanying schedules, publicly announcing the Company’s second quarter 2010 financial results.

2

     Pursuant to the requirements of the Securities Exchange Act of 1934, Williams has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	THE WILLIAMS COMPANIES, INC.
Date: July 29, 2010	/s/ Donald R. Chappel
	Name:	Donald R. Chappel
	Title:	Senior Vice President and Chief Financial Officer

3

INDEX TO EXHIBITS

EXHIBIT
NUMBER	DESCRIPTION
Exhibit 99.1	Press release of the Company dated July 29, 2010 and accompanying schedules, publicly announcing the Company’s second quarter 2010 financial results.

4

EX-99.1

Exhibit 99.1

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

Date: July 29, 2010

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 2010 Financial Results

• 2Q Net Income is $185 Million, $0.31 Per Share

• Recurring Adjusted EPS is $0.27; Up 35% in 2Q

• Higher NGL, Olefins Margins Drives 2Q Improvement

• Major Marcellus Shale Acreage Acquisition Completed

• Williams Partners Growth: Overland Pass, Parachute Plant Expansion

• Guidance Updated

Quarterly Summary Financial Information	2Q 2010						2Q 2009
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	$	187		$	0.31		$	123		$	0.21
Income (loss) from discontinued operations		(2	)		—			19			0.03
Net income	$	185		$	0.31		$	142		$	0.24
Recurring income from continuing operations*	$	164		$	0.28		$	120		$	0.20
After-tax mark-to-market adjustments		(2	)		(0.01	)		(4	)		—
Recurring income from continuing operations — after mark-to-market adjustments*	$	162		$	0.27		$	116		$	0.20

Year-to-date Summary Financial Information	YTD 2010						YTD 2009
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		($8	)		($0.01	)	$	125		$	0.21
Loss from discontinued operations		—			—			(155	)		(0.26	)
Net loss		($8	)		($0.01	)		($30	)		($0.05	)
Recurring income from continuing operations*	$	378		$	0.65		$	226		$	0.39
After-tax mark-to-market adjustments		(8	)		(0.02	)		18			0.03
Recurring income from continuing operations — after mark-to-market adjustments*	$	370		$	0.63		$	244		$	0.42

* A schedule reconciling income (loss) from continuing operations to recurring income from continuing operations and mark-to-market adjustments (non-GAAP measures) is available at www.williams.com and as an attachment to this press release.

          TULSA, Okla. — Williams (NYSE: WMB) announced unaudited net income attributable to Williams, for second-quarter 2010 of $185 million, or $0.31 per share on a diluted basis, compared with net income of $142 million, or $0.24 per share on a diluted basis for second-quarter 2009.

          Higher natural gas liquid (NGL) and olefin margins, as well as higher realized average domestic natural gas prices, partially offset by lower natural gas production, led to the improvement in net income for the quarter. The quarter also benefited from a $13 million pretax gain on the company’s sale of its 50-percent interest in the Accroven assets in Venezuela. See below for more information on the sale.

          Year-to-date through June 30, Williams reported a net loss of $8 million, or $0.01 per share, compared with a net loss of $30 million, or $0.05 per share for the same period in 2009. The net losses in both the 2010 and 2009 year-to-date periods were due to significant non-recurring items.

          The year-to-date 2010 net loss was primarily due to after-tax charges of approximately $402 million in conjunction with the strategic restructuring that transformed Williams Partners L.P. (NYSE: WPZ) into a leading diversified master limited partnership.

          An improved commodity price environment in 2010, compared with the recession-driven lower prices in 2009, partially offset the negative effect of the restructuring charges in the first half of 2010.

          The 2009 period includes a significant loss from discontinued operations, primarily related to losses associated with the company’s operations in Venezuela.

          All prior-period comparisons in this news release are based on recast 2009 results. The recast results reflect the company’s structure following the strategic restructuring with Williams Partners L.P.

Completion of Major Acquisition in Marcellus Shale

          Earlier this month, Williams completed the major acreage acquisition in the Marcellus Shale that was announced on May 25.

Williams (NYSE: WMB) 2Q 2010 Financial Results — July 29, 2010 Page 1 of 7

          The acquisition included approximately 42,000 net acres, primarily located in Susquehanna County in northeastern Pennsylvania. Williams acquired the acreage from Alta Resources LLC and its partners for $513 million, including closing adjustments. The company also purchased a 5-percent overriding royalty interest on the approximately 48,500 gross acres associated with the acquisition for $84 million, which reduces the royalty burden.

          Williams is also in the process of completing the acquisition of 8,000 additional net acres in another attractive area in northeastern Pennsylvania. The two transactions are expected to add approximately 1.3 trillion cubic feet equivalent (Tcfe) of total net reserves potential.

          The completion of these deals more than doubles Williams’ acreage in the Marcellus Shale to approximately 97,000 net acres at an average cost of less than $7,000 per acre.

Sale of Accroven Investment

          In June 2010, Williams sold its 50-percent interest in Accroven to PDVSA Gas (PDVSA) for $107 million, including $13 million in cash received at closing. The remaining amount is due to the company in periodic payments through 2012.

          Williams is recognizing the resulting gain as cash is received; hence the company recognized a gain of $13 million in June 2010. Williams expects to recognize any further gain on the sale as it receives cash payments from PDVSA.

Recurring Results Adjusted for Effect of Mark-to-Market Accounting

          Recurring income from continuing operations, after adjustments to remove the effect of mark-to-market accounting for certain hedges and other derivatives in Exploration & Production, is $162 million, or $0.27 per share for second-quarter 2010. On the same adjusted basis, recurring income from continuing operations was $116 million, or $0.20 per share, for second-quarter 2009.

          For the first half of 2010, recurring income from continuing operations after mark-to-market adjustments was $370 million, or $0.63 per share; compared with $244 million, or $0.42 per share, for the first half of 2009.

          The improvement in the recurring adjusted results for the second quarter is due to improvements in the Williams Partners and Other segment results; the improvement in the year-to-date results was driven by increases in all three reporting segments. These results are detailed later in this press release.

          A reconciliation of the company’s income from continuing operations to recurring income from continuing operations and mark-to-market adjustments is available at www.williams.com and as an attachment to this news release.

Williams Partners Growth: Increased Stake in Overland Pass, Parachute Plant Expansion

          Last week Williams Partners announced that it had notified ONEOK Partners, L.P. (NYSE: OKS) that it is exercising its option to increase its ownership of Overland Pass Pipeline Company, LLC to 50 percent. Williams Partners currently owns 1 percent of the joint venture, while ONEOK Partners owns the remaining 99 percent.

          The Overland Pass Pipeline includes a 760-mile NGL pipeline from Opal, Wyo., to the Mid-Continent NGL market center in Conway, Kan., along with 150- and 125-mile extensions into the Piceance and Denver-Joules Basins in Colorado, respectively. Williams Partners’ equity NGL volumes from its two Wyoming plants and its Willow Creek facility in Colorado are dedicated for transport on Overland Pass Pipeline under a long-term shipping agreement.

Williams (NYSE: WMB) 2Q 2010 Financial Results — July 29, 2010 Page 2 of 7

          Williams Partners is also planning a significant expansion of its cryogenic processing capacity in the Piceance Basin.

          The partnership intends to pursue construction of a 450 MMcf/d cryogenic gas processing facility to be located at the Williams Parachute, Colo., complex. The new facility will be capable of recovering up to 25,000 barrels per day of NGLs.

          The new Parachute facility is expected to be in service in 2013 and will process Williams’ natural gas production in the Piceance Basin, which currently exceeds the processing capacity at Williams Partners’ Willow Creek facility. The proposed expansion of the Parachute plant is subject to certain final approvals.

CEO Comment

          “In the past few months, we have demonstrated our ability to grow our businesses in its post-restructuring form,” said Steve Malcolm, chairman, president and chief executive officer.

          “We completed a major E&P acquisition at the Williams level that establishes a significant and growing position in the Marcellus Shale; and Williams Partners just recently announced two major midstream business expansions — the increased stake in Overland Pass and the new cryogenic facility at the Parachute Plant.

          “These are all strategic expansions that increase the breadth and diversity of our businesses in key areas. In addition to these opportunities, we continue to be engaged in many high-level business development opportunities for both Williams and Williams Partners,” Malcolm said.

Guidance Update

          Williams is updating its 2010 earnings guidance to reflect slightly lower expected NGL margins and the delay in the startup of Perdido Norte. Earnings guidance for 2011-12 is unchanged from previous guidance issued on May 5. The increase in Williams’ capital expenditure guidance primarily reflects the previously announced acreage acquisition in the Marcellus Shale and Williams Partners’ acquisition of the Overland Pass interest and its expansion project at the Parachute gas processing facility.

          While these new investments will be contributing profitability during the 2010-12 guidance period, the positive earnings effect will be most significant after 2012. During the guidance period, the company expects that profitably from the new investments will be largely offset by other factors, including the projected negative effect of a six-month moratorium on deepwater drilling and delays in the startup of Perdido Norte.

Commodity Price Assumptions and Financial Outlook	2010									2011									2012
As of July 29, 2010
	Low			Mid			High			Low			Mid			High			Low			Mid			High
Natural Gas ($/MMBtu):
NYMEX	$	4.00		$	4.50		$	5.00		$	4.50		$	5.50		$	6.50		$	4.80		$	5.95		$	7.10
Rockies	$	3.75		$	4.20		$	4.65		$	4.25		$	5.20		$	6.15		$	4.50		$	5.60		$	6.70
Avg. San Juan/Mid-Continent	$	3.85		$	4.35		$	4.85		$	4.35		$	5.30		$	6.25		$	4.65		$	5.75		$	6.85
Oil / NGL:
Crude Oil — WTI ($  per barrel)	$	70		$	77.50		$	85		$	71		$	86		$	101		$	72		$	87		$	102
Crude to Gas Ratio		17.0x			17.3x			17.5x			15.5x			15.7x			15.8x			14.4x			14.7x			15.0x
NGL to Crude Oil Relationship		54	%		54	%		54	%		53	%		54	%		55	%		52	%		54	%		55	%
Average NGL Margins ($  per gallon)	$	0.50		$	0.58		$	0.65		$	0.51		$	0.65		$	0.78		$	0.47		$	0.60		$	0.72
Capital Expenditures (millions)
Williams Partners	$	1,410		$	1,545		$	1,680		$	830		$	1,005		$	1,180		$	805		$	980		$	1,155
Exploration & Production		1,900			2,000			2,100			1,200			1,600			2,000			1,500			2,000			2,500
Other		150			175			200			370			420			470			500			550			600
Total Capital Expenditures (1)	$	3,475		$	3,725		$	3,975		$	2,400		$	3,025		$	3,650		$	2,800		$	3,525		$	4,250
Cash Flow from Continuing Operations	$	2,275		$	2,538		$	2,800		$	2,400		$	3,050		$	3,700		$	2,600		$	3,575		$	4,550
Recurring Adj. Segment Profit (millions) (2)
Williams Partners	$	1,385		$	1,523		$	1,660		$	1,450		$	1,695		$	1,940		$	1,525		$	1,770		$	2,015
Exploration & Production after MTM adj.		325			400			475			350			788			1,225			500			1,250			2,000
Other		160			185			210			160			190			220			185			223			260
Total Recurring Adj. Segment Profit (3)	$	1,875		$	2,113		$	2,350		$	2,000		$	2,700		$	3,400		$	2,225		$	3,250		$	4,275
Recurring Adj. Earnings Per Share (4)	$	1.00		$	1.23		$	1.45		$	1.15		$	1.83		$	2.50		$	1.40		$	2.38		$	3.35

(1)	Sum of the ranges for each business line may not match total range.
(2)	Recurring Adj. Segment Profit is adjusted to remove the effect of mark-to-market accounting. The Recurring Adjusted earnings amounts are non-GAAP measures. Reconciliations to the most relevant GAAP measures for 2Q 2010 are attached to this news release. There are no nonrecurring items reflected in the future periods.
(3)	Sum of the ranges for the business units does not match the consolidated total due to rounding and other adjustments.
(4)	Recurring Earnings Per Share is adjusted to remove the effect of mark-to-market accounting and is diluted. The Recurring Adjusted EPS is a non-GAAP measure. Reconciliations to the most relevant GAAP measures are attached to this news release.

Business Segment Results

          Williams’ business segments for financial reporting are Williams Partners, Exploration & Production, and Other.

          The Williams Partners segment includes the consolidated results of Williams Partners L.P.; Exploration & Production includes the results of the former Gas Marketing segment; and the Other segment includes the company’s Canadian midstream and domestic olefins businesses and a 25.5-percent interest in the Gulfstream interstate natural gas pipeline system. The 2009 results have been recast to reflect the new reporting structure.

Consolidated Segment Profit (Loss)	2Q				YTD
Amounts in millions	2010		2009		2010		2009
Williams Partners	$	346	$	285	$	760	$	537
Exploration & Production		87		114		249		190
Other		79		16		106		(44	)
Consolidated Segment Profit	$	512	$	415	$	1,115	$	683

Recurring Consolidated Segment Profit After
Mark-to-Market Adjustments*	2Q						YTD
Amounts in millions	2010			2009			2010			2009
Williams Partners	$	330		$	285		$	739		$	538
Exploration & Production		89			115			251			230
Other		60			16			87			24
Recurring MTM Adjustments (pretax)		(4	)		(7	)		(13	)		29
Recurring Consolidated Segment Profit After Mark-to-Market Adjustments
	$	475		$	409		$	1,064		$	821

* A schedule reconciling income from continuing operations to recurring income from continuing operations and mark-to-market adjustments (non-GAAP measures) is available at www.williams.com and as an attachment to this press release.

Williams (NYSE: WMB) 2Q 2010 Financial Results — July 29, 2010 Page 3 of 7

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 2010, Williams Partners reported segment profit of $346 million, compared with $285 million for second-quarter 2009. Year-to-date through June 30, Williams Partners reported segment profit of $760 million, compared with $537 million for the same period in 2009.

          The 21- and 42-percent increases in the second-quarter and year-to-date periods, respectively, reflects higher NGL margins from Williams Partners’ midstream business in both periods. Higher NGL prices during 2010, compared with the relatively low recession-driven prices in 2009 drove the improvement for the year. This benefit was partially offset by an increase in costs due to higher average natural gas prices during both periods.

          There is a more detailed description of Williams Partners’ interstate gas pipeline and midstream business results in the partnership’s second-quarter 2010 financial results news release, which is also being issued today.

Exploration & Production

          Exploration & Production includes natural gas production and development in the U.S. Rocky Mountains, San Juan Basin, Barnett Shale, Marcellus Shale, and oil and gas development in South America.

          The business reported segment profit of $87 million for second-quarter 2010, compared with segment profit of $114 million in second-quarter 2009.

          The decline in segment profit is due to a 6-percent decline in domestic natural gas production volumes and higher operating taxes, partially offset by higher realized average domestic natural gas prices.

          During second-quarter 2010, Williams’ net realized average price for U.S. production was $4.36 per thousand cubic feet of natural gas equivalent (Mcfe), which was 10 percent higher than the $3.95 per Mcfe realized in second-quarter 2009.

          The chart below details Williams’ average daily natural gas production for second-quarter 2010.

Average Daily Production
Amounts in million cubic feet equivalent of natural	2Q				Annual			1Q		Sequential
gas (MMcfe)	2010		2009		Change			2010		Change
Piceance Basin		651		703		-7	%		632		3	%
Powder River Basin		228		242		-6	%		238		-4	%
Other Basins		232		235		-2	%		232		0	%
U.S. Interests only		1,110		1,180		-6	%		1,102		1	%
U.S. & International Interests		1,168		1,233		-5	%		1,156		1	%

          While Williams chose to reduce its drilling activity during the recent recessionary period of low prices, the company plans to increase average daily domestic production for the remainder of the year, with fourth-quarter 2010 volumes expected to be higher than the prior year comparable period. Overall average annual daily production for 2010 is expected to be consistent with 2009 volumes. Additionally, Williams expects average annual daily production to increase by 12 and 16 percent at guidance midpoint in 2011 and 2012, respectively.

          For the first half of 2010, Exploration & Production reported segment profit of $249 million, compared with $190 million for the first half of 2009.

          The improvement in the year-to-date results is due to higher net realized average prices on natural gas production, partially offset by lower production volumes. Additionally, the first six months of 2009 included expense of $32 million associated with contractual penalties from the early termination of drilling rig contracts during the first quarter.

Other

          The Other segment reported second-quarter 2010 segment profit of $79 million, compared with a segment profit of $16 million for second-quarter 2009.

Williams (NYSE: WMB) 2Q 2010 Financial Results — July 29, 2010 Page 4 of 7

          The improvement in the second-quarter results is primarily due to higher NGL and olefins production margins resulting from sharply higher per-unit margins. The previously noted $13 million gain on the sale of Accroven, as well as a $6 million customer settlement received in 2010 also contributed to the improved results. These items were partially offset by lower olefin production volumes.

          For the first half of the year, Other’s segment profit was $106 million, compared with a segment loss of $44 million for the first half of 2009.

          The significant improvement in the Other results for the first half of the year is due primarily to the absence of a $75 million impairment of the Accroven investment from the first quarter of 2009, combined with the favorable impact of higher NGL and olefin production margins from sharply higher average per-unit margins. Second-quarter 2010 results also benefited from the previously noted sale of the Accroven investment.

Today’s Analyst Call

          Management will discuss the second-quarter 2010 results and outlook during a live webcast beginning at 9:30 a.m. EDT today. Participants are encouraged to access the webcast and slides for viewing, downloading and printing at www.williams.com.

Williams (NYSE: WMB) 2Q 2010 Financial Results — July 29, 2010 Page 5 of 7

          A limited number of phone lines also will be available at (888) 515-2235. International callers should dial (719) 325-2313. 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.

Form 10-Q

     The company plans to file its second-quarter 2010 Form 10-Q with the SEC today. The document will be available on both the SEC and Williams websites.

Non-GAAP Measures

          This press release includes certain financial measures, recurring earnings and recurring segment profit that are non-GAAP financial measures as defined under the rules of the Securities and Exchange Commission. Recurring earnings and recurring segment profit exclude items of income or loss that the company characterizes as unrepresentative of its ongoing operations. Both measures provide investors meaningful insight into the company’s results from ongoing operations. 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. Neither recurring earnings nor recurring segment profit are intended to represent an alternative to net income or segment profit. 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.

          Certain financial information in this press release is also shown including mark-to-market adjustments for certain hedges and other derivatives in Exploration & Production, such as recurring income from continuing operations after mark-to-market adjustments and the related per share measures. This press release is accompanied by a reconciliation of these non-GAAP financial measures to their nearest GAAP financial measures. Management uses the mark-to-market adjustments to better reflect results on a basis that is more consistent with derivative portfolio cash flows and to aid investor understanding. The 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. We also apply the mark-to-market adjustment and the recurring adjustments to present measures referred to as recurring segment profit or income from continuing operations after mark-to-market adjustments.

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 84-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 gas and oil reserves;

• Reserve potential;

• Development drilling potential;

• Cash flow from operations or results of operations;

Williams (NYSE: WMB) 2Q 2010 Financial Results — July 29, 2010 Page 6 of 7

• Seasonality of certain business segments; and

• Natural gas and natural gas liquids 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 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 proposed climate change legislation 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;

• 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 report. 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. 26, 2010, and our quarterly reports on Form 10-Q available from our offices or from our website at www.williams.com.

Williams (NYSE: WMB) 2Q 2010 Financial Results — July 29, 2010 Page 7 of 7

Financial Highlights and Operating Statistics
(UNAUDITED)

Final

June 30, 2010

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

	2009															2010
(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	$	2		$	123		$	141		$	172		$	438		$	(195	)	$	187		$	(8	)
Income (loss) from continuing operations — diluted earnings per common share	$	—		$	0.21		$	0.24		$	0.29		$	0.75		$	(0.33	)	$	0.31		$	(0.01	)
Nonrecurring items:
Williams Partners (WP)
Gain on sale of base gas from Hester storage field	$	—		$	—		$	—		$	—		$	—		$	(5	)	$	(3	)	$	(8	)
Involuntary conversion gain related to Ignacio		1			—			(5	)		—			(4	)		—			(4	)		(4	)
Involuntary conversion gain related Hurricane Ike		—			—			—			—			—			—			(7	)		(7	)
Gain on sale of Cameron Meadows		—			—			—			(40	)		(40	)		—			—			—
Restructuring transaction costs		—			—			—			1			1			—			—			—
Unclaimed property assessment accrual — TGPL		—			—			—			3			3			—			(1	)		(1	)
Unclaimed property assessment accrual — NWP		—			—			—			1			1			—			(1	)		(1	)
Total Williams Partners nonrecurring items		1			—			(5	)		(35	)		(39	)		(5	)		(16	)		(21	)
Exploration & Production (E&P)
Penalties from early release of drilling rigs		34			(2	)		—			—			32			—			—			—
Impairments of certain natural gas properties		5			—			—			15			20			—			—			—
Depletion expense adjustment related to new guidance		—			—			—			14			14			—			—			—
Unclaimed property assessment accrual		—			—			—			1			1			—			2			2
Reserve for/(recovery of) receivables from bankrupt counterparty		—			—			—			(4	)		(4	)		—			—			—
Accrual for Wyoming severance taxes		—			3			(4	)		(4	)		(5	)		—			—			—
Total Exploration & Production nonrecurring items		39			1			(4	)		22			58			—			2			2
Other
(Gain)/Loss from Venezuela investment		68			—			—			—			68			—			(13	)		(13	)
Customer settlement gain		—			—			—			—			—			—			(6	)		(6	)
Total Other nonrecurring items		68			—			—			—			68			—			(19	)		(19	)
Nonrecurring items included in segment profit (loss)		108			1			(9	)		(13	)		87			(5	)		(33	)		(38	)
Nonrecurring items below segment profit (loss)
Loss associated with Venezuela investment — E&P		11			—			—			—			11			—			—			—
Impairment of cost-based investment — Corporate		—			—			7			—			7			—			—			—
Reversal of litigation contingency — Corporate		—			(5	)		—			—			(5	)		—			—			—
Early debt retirement costs — Corporate		—			—			—			—			—			606			—			606
Acceleration of unamortized debt costs related to credit facility amendment — Corporate		—			—			—			—			—			3			—			3
Acceleration of unamortized debt costs related to credit facility amendment — Williams Partners		—			—			—			—			—			1			—			1
Restructuring transaction costs — Corporate		—			—			—			1			1			33			—			33
Restructuring transaction costs — Williams Partners		—			—			—			—			—			6			2			8
Allocation of Williams Partners’ nonrecurring items to noncontrolling interests		—			—			—			—			—			(4	)		1			(3	)
		11			(5	)		7			1			14			645			3			648
Total nonrecurring items		119			(4	)		(2	)		(12	)		101			640			(30	)		610
Less tax effect for above items		(15	)		1			1			5			(8	)		(242	)		7			(235	)
Nonrecurring reduction of tax benefits on the Medicare Part D federal subsidy due to enacted healthcare legislation		—			—			—			—			—			11			—			11
Recurring income from continuing operations available to common stockholders	$	106		$	120		$	140		$	165		$	531		$	214		$	164		$	378
Recurring diluted earnings per common share	$	0.18		$	0.20		$	0.24		$	0.28		$	0.90		$	0.37		$	0.28		$	0.65
Weighted-average shares — diluted (thousands)		582,361			588,780			590,059			591,439			589,385			583,929			592,498			584,173

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.

1

Consolidated Statement of Operations
(UNAUDITED)

	2009															2010
(Dollars in millions, except per-share amounts)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year			1st Qtr			2nd Qtr			Year
Revenues	$	1,922		$	1,909		$	2,098		$	2,326		$	8,255		$	2,596		$	2,292		$	4,888
Segment costs and expenses:
Costs and operating expenses		1,444			1,392			1,537			1,708			6,081			1,922			1,723			3,645
Selling, general and administrative expenses		125			129			126			132			512			111			122			233
Other (income) expense — net		33			(1	)		1			(16	)		17			—			(13	)		(13	)
Total segment costs and expenses		1,602			1,520			1,664			1,824			6,610			2,033			1,832			3,865
Equity earnings		23			26			44			43			136			40			39			79
Income (loss) from investments		(75	)		—			—			—			(75	)		—			13			13
Total segment profit		268			415			478			545			1,706			603			512			1,115
Reclass equity earnings		(23	)		(26	)		(44	)		(43	)		(136	)		(40	)		(39	)		(79	)
Reclass (income) loss from investments		75			—			—			—			75			—			(13	)		(13	)
General corporate expenses		(40	)		(38	)		(40	)		(46	)		(164	)		(85	)		(45	)		(130	)
Operating income		280			351			394			456			1,481			478			415			893
Interest accrued		(162	)		(167	)		(168	)		(164	)		(661	)		(164	)		(154	)		(318	)
Interest capitalized		20			22			15			19			76			17			13			30
Investing income (loss)		(61	)		24			39			44			46			39			55			94
Early debt retirement costs		—			—			—			(1	)		(1	)		(606	)		—			(606	)
Other income (expense) — net		(2	)		1			(1	)		4			2			(7	)		(1	)		(8	)
Income (loss) from continuing operations before income taxes		75			231			279			358			943			(243	)		328			85
Provision (benefit) for income taxes		56			80			87			136			359			(95	)		104			9
Income (loss) from continuing operations		19			151			192			222			584			(148	)		224			76
Income (loss) from discontinued operations		(243	)		18			2			—			(223	)		2			(2	)		—
Net income (loss)	$	(224	)	$	169		$	194		$	222		$	361		$	(146	)	$	222		$	76
Less: Net income (loss) attributable to noncontrolling interests		(52	)		27			51			50			76			47			37			84
Net income (loss) attributable to The Williams Companies, Inc.	$	(172	)	$	142		$	143		$	172		$	285		$	(193	)	$	185		$	(8	)
Amounts attributable to The Williams Companies, Inc.:
Income (loss) from continuing operations	$	2		$	123		$	141		$	172			438		$	(195	)	$	187			(8	)
Income (loss) from discontinued operations		(174	)		19			2			—			(153	)		2			(2	)		—
Net income (loss)	$	(172	)	$	142		$	143		$	172		$	285		$	(193	)	$	185		$	(8	)
Diluted earnings (loss) per common share:
Income (loss) from continuing operations	$	—		$	0.21		$	0.24		$	0.29		$	0.75		$	(0.33	)	$	0.31		$	(0.01	)
Income (loss) from discontinued operations		(0.29	)		0.03			—			—			(0.26	)		—			—			—
Net income (loss)	$	(0.29	)	$	0.24		$	0.24		$	0.29		$	0.49		$	(0.33	)	$	0.31		$	(0.01	)
Weighted-average number of shares used in computation (thousands)		582,361			588,780			590,059			591,439			589,385			583,929			592,498			584,173
Common shares outstanding at end of period (thousands)		580,072			582,933			583,101			583,432			583,432			584,223			584,546			584,546
Market price per common share (end of period)	$	11.38		$	15.61		$	17.87		$	21.08		$	21.08		$	23.10		$	18.28		$	18.28
Common dividends per share	$	0.11		$	0.11		$	0.11		$	0.11		$	0.44		$	0.11		$	0.125		$	0.235

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.

2

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

	2009														2010
(Dollars in millions)	1st Qtr			2nd Qtr		3rd Qtr			4th Qtr			Year			1st Qtr			2nd Qtr			Year
Segment profit (loss):
Williams Partners	$	252		$	285	$	347		$	424		$	1,308		$	414		$	346		$	760
Exploration & Production		76			114		100			110			400			162			87			249
Other		(60	)		16		31			11			(2	)		27			79			106
Total segment profit	$	268		$	415	$	478		$	545		$	1,706		$	603		$	512		$	1,115
Nonrecurring adjustments:
Williams Partners	$	1		$	—	$	(5	)	$	(35	)	$	(39	)	$	(5	)	$	(16	)	$	(21	)
Exploration & Production		39			1		(4	)		22			58			—			2			2
Other		68			—		—			—			68			—			(19	)		(19	)
Total segment nonrecurring adjustments	$	108		$	1	$	(9	)	$	(13	)	$	87		$	(5	)	$	(33	)	$	(38	)
Recurring segment profit (loss):
Williams Partners	$	253		$	285	$	342		$	389		$	1,269		$	409		$	330		$	739
Exploration & Production		115			115		96			132			458			162			89			251
Other		8			16		31			11			66			27			60			87
Total recurring segment profit	$	376		$	416	$	469		$	532		$	1,793		$	598		$	479		$	1,077

Note: Segment profit (loss) includes equity earnings and income (loss) from investments reported in investing income (loss) in the Consolidated Statement of Operations. Equity earnings results from investments accounted for under the equity method. Income (loss) from investments results from the management of certain equity investments.

3

Williams Partners
(UNAUDITED)

	2009														2010
(Dollars in millions)	1st Qtr			2nd Qtr		3rd Qtr			4th Qtr			Year			1st Qtr			2nd Qtr			Year
Revenues	$	957		$	1,081	$	1,181		$	1,293		$	4,512		$	1,458		$	1,367		$	2,825
Segment costs and expenses:
Costs and operating expenses		643			738		793			857			3,031			1,014			987			2,001
Selling, general and administrative expenses		70			71		72			76			289			59			68			127
Other (income) expense — net		(3	)		3		(1	)		(34	)		(35	)		(3	)		(7	)		(10	)
Total segment costs and expenses		710			812		864			899			3,285			1,070			1,048			2,118
Equity earnings		5			16		30			30			81			26			27			53
Reported segment profit		252			285		347			424			1,308			414			346			760
Nonrecurring adjustments		1			—		(5	)		(35	)		(39	)		(5	)		(16	)		(21	)
Recurring segment profit	$	253		$	285	$	342		$	389		$	1,269		$	409		$	330		$	739

4

Exploration & Production
(UNAUDITED)

	2009												2010
(Dollars in millions)	1st Qtr		2nd Qtr			3rd Qtr			4th Qtr		Year		1st Qtr		2nd Qtr		Year
Revenues:
Production	$	523	$	486		$	509		$	575	$	2,093	$	571	$	510	$	1,081
Gas management		411		276			344			425		1,456		556		366		922
Hedge ineffectiveness and forward mark-to-market gains (losses)		10		(1	)		—			9		18		9		—		9
International		17		17			20			21		75		20		22		42
Other		15		31			6			11		63		12		12		24
Total revenues		976		809			879			1,041		3,705		1,168		910		2,078
Segment costs and expenses:
Depreciation, depletion and amortization (including International)		219		217			217			237		890		217		220		437
Lease and other operating expenses		72		62			61			63		258		64		65		129
Operating taxes		28		3			19			26		76		38		29		67
Exploration expense		13		21			4			20		58		5		10		15
Third party & affiliate gathering, processing and transportation		60		63			67			82		272		74		72		146
Selling, general and administrative expenses (including International)		47		47			47			49		190		44		44		88
Gas management expenses		422		278			357			439		1,496		558		376		934
International (excluding DD&A and SG&A)		7		6			9			8		30		11		10		21
Other expense — net		36		2			2			13		53		—		2		2
Total segment costs and expenses		904		699			783			937		3,323		1,011		828		1,839
Equity earnings		4		4			4			6		18		5		5		10
Reported segment profit		76		114			100			110		400		162		87		249
Nonrecurring adjustments		39		1			(4	)		22		58		—		2		2
Recurring segment profit	$	115	$	115		$	96		$	132	$	458	$	162	$	89	$	251
Operating statistics
Domestic:
Total domestic net volumes (Bcfe)		110.3		107.3			105.6			108.3		431.5		99.2		101.0		200.2
Net domestic volumes per day (MMcfe/d)		1,225		1,180			1,148			1,177		1,182		1,102		1,110		1,106
Net domestic realized price ($/Mcfe) (1)	$	4.205	$	3.949		$	4.183		$	4.540	$	4.220	$	5.009	$	4.359	$	4.682
Production taxes per Mcfe	$	0.254	$	0.024		$	0.182		$	0.241	$	0.176	$	0.379	$	0.290	$	0.334
Lease and other operating expense per Mcfe	$	0.649	$	0.576		$	0.581		$	0.588	$	0.599	$	0.648	$	0.639	$	0.643
(1) Net realized price is calculated the following way: production revenues (including hedging activities) less gathering & processing expense divided by net volumes.
International:
Total volumes including Equity Investee (Bcfe)		6.1		6.1			6.4			6.5		25.1		6.2		6.7		12.9
Volumes per day (MMcfe/d)		67		68			69			71		69		69		74		71
Volumes net to Williams (after minority interest) (Bcfe)		4.7		4.9			5.0			5.1		19.7		4.8		5.3		10.1
Volumes net to Williams per day (MMcfe/d)		53		53			54			55		54		54		58		56
Total Domestic and International:
Volumes net to Williams (after minority interest) (Bcfe)		115.0		112.2			110.6			113.4		451.2		104.0		106.3		210.3
Volumes net to Williams per day (MMcfe/d)		1,278		1,233			1,202			1,232		1,236		1,156		1,168		1,162

5

Other
(UNAUDITED)

	2009												2010
(Dollars in millions)	1st Qtr			2nd Qtr		3rd Qtr		4th Qtr		Year			1st Qtr		2nd Qtr			Year
Revenues	$	158		$	170	$	222	$	230	$	780		$	278	$	262		$	540
Reported segment profit (loss)	$	(60	)	$	16	$	31	$	11	$	(2	)	$	27	$	79		$	106
Nonrecurring adjustments		68			—		—		—		68			—		(19	)		(19	)
Recurring segment profit	$	8		$	16	$	31	$	11	$	66		$	27	$	60		$	87
Operating statistics
Olefins
Olefins sales (Ethylene & Propylene) (million lbs)		462			445		437		384		1,728			396		391			787
Canadian NGL equity sales (million gallons)		36			30		37		23		126			23		31			54

6

Capital Expenditures and Investments
(UNAUDITED)

	2009												2010
(Dollars in millions)	1st Qtr		2nd Qtr		3rd Qtr			4th Qtr			Year		1st Qtr		2nd Qtr			Year
Capital expenditures:
Williams Partners	$	159	$	217	$	248		$	263		$	887	$	122	$	217		$	339
Exploration & Production		444		229		487			274			1,434		284		267			551
Other		9		19		17			21			66		22		28			50
Total*	$	612	$	465	$	752		$	558		$	2,387	$	428	$	512		$	940
Purchase of investments:
Williams Partners	$	8	$	115	$	—		$	8		$	131	$	9	$	6		$	15
Exploration & Production		—		—		1			—			1		2		2			4
Other		5		1		2			2			10		2		(1	)		1
Total	$	13	$	116	$	3		$	10		$	142	$	13	$	7		$	20
Summary:
Williams Partners	$	167	$	332	$	248		$	271		$	1,018	$	131	$	223		$	354
Exploration & Production		444		229		488			274			1,435		286		269			555
Other		14		20		19			23			76		24		27			51
Total	$	625	$	581	$	755		$	568		$	2,529	$	441	$	519		$	960
Cumulative summary:
Williams Partners	$	167	$	499	$	747		$	1,018		$	1,018	$	131	$	354		$	354
Exploration & Production		444		673		1,161			1,435			1,435		286		555			555
Other		14		34		53			76			76		24		51			51
Total	$	625	$	1,206	$	1,961		$	2,529		$	2,529	$	441	$	960		$	960
Capital expenditures incurred and purchase of investments
Increases to property, plant and equipment	$	484	$	420	$	809		$	601		$	2,314	$	410	$	488		$	898
Purchase of investments		13		116		3			10			142		13		7			20
Total	$	497	$	536	$	812		$	611		$	2,456	$	423	$	495		$	918
* Increases to property, plant and equipment	$	484	$	420	$	809		$	601		$	2,314	$	410	$	488		$	898
Changes in related accounts payable and accrued liabilities		128		45		(57	)		(43	)		73		18		24			42
Capital expenditures	$	612	$	465	$	752		$	558		$	2,387	$	428	$	512		$	940

7

Depreciation, Depletion and Amortization and Other Selected Financial Data
(UNAUDITED)

	2009															2010
(Dollars in millions)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year			1st Qtr			2nd Qtr			Year
Depreciation, depletion and amortization:
Williams Partners	$	130		$	131		$	133		$	137		$	531		$	134		$	134		$	268
Exploration & Production		219			217			218			236			890			217			220			437
Other		10			11			10			9			40			10			12			22
Discontinued Operations		8			—			—			—			8			—			—			—
Total	$	367		$	359		$	361		$	382		$	1,469		$	361		$	366		$	727
Other selected financial data:
Cash and cash equivalents	$	1,785		$	1,853		$	1,640		$	1,867		$	1,867		$	1,644		$	1,601		$	1,601
Total assets	$	25,368		$	25,026		$	24,952		$	25,280		$	25,280		$	25,129		$	24,947		$	24,947
Capital structure:
Debt
Current	$	3		$	13		$	19		$	17		$	17		$	10		$	160		$	160
Noncurrent	$	8,278		$	8,265		$	8,258		$	8,259		$	8,259		$	8,615		$	8,358		$	8,358
Stockholders’ equity	$	8,326		$	8,324		$	8,307		$	8,447		$	8,447		$	7,573		$	7,633		$	7,633
Debt to debt-plus-stockholders’ equity ratio		49.9	%		49.9	%		49.9	%		49.5	%		49.5	%		53.2	%		52.7	%		52.7	%

8

Adjustment to Remove MTM Effect

Dollars in millions except for per share amounts

	2Q						YTD
	2010			2009			2010			2009
Recurring income from cont. ops available to common shareholders	$	164		$	120		$	378		$	226
Recurring diluted earnings per common share	$	0.28		$	0.20		$	0.65		$	0.39
Mark-to-Market (MTM) adjustments		(4	)		(7	)		(13	)		29
Tax effect of total MTM adjustments		2			3			5			(11	)
After tax MTM adjustments		(2	)		(4	)		(8	)		18
Recurring income from cont. ops available to common shareholders after MTM adjust.	$	162		$	116		$	370		$	244
Recurring diluted earnings per share after MTM adj.	$	0.27		$	0.20		$	0.63		$	0.42
Weighted average shares — diluted (thousands)		592,498			588,780			584,173			587,999

Note: all amounts attributable to Williams

Adjustments have been made to reverse estimated forward unrealized MTM gains/losses and add estimated realized gains/losses from MTM previously recognized, i.e. assumes MTM accounting had never been applied to designated hedges and other derivatives.

Segment Profit Guidance — Reported to Recurring

	2010 Guidance									2011 Guidance						2012 Guidance
Dollars in millions	Low			Midpoint			High			Low		Midpoint		High		Low		Midpoint		High
Reported Segment Profit:
Williams Partners (WPZ)		1,406			1,544			1,681			1,450		1,695		1,940		1,525		1,770		2,015
Exploration & Production (incl. Gas Mkt)		348			423			498			345		783		1,220		500		1,250		2,000
Other		179			204			229			160		190		220		185		223		260
Total Reported Segment Profit		1,938			2,176			2,413			1,995		2,695		3,395		2,225		3,250		4,275
Nonrecurring Items:
Gain on sale of base gas from Hester storage field		(8	)		(8	)		(8	)		—		—		—		—		—		—
Involuntary conversion gain related to Hurricane Ike		(7	)		(7	)		(7	)		—		—		—		—		—		—
Involuntary conversion gain related to Ignacio		(4	)		(4	)		(4	)		—		—		—		—		—		—
Unclaimed property assessment accrual — Gas Pipeline		(2	)		(2	)		(2	)		—		—		—		—		—		—
Total Nonrecurring Items Williams Partners (WPZ)		(21	)		(21	)		(21	)		—		—		—		—		—		—
Unclaimed property assessment accrual		2			2			2			—		—		—		—		—		—
Total Nonrecurring Items Exploration & Production		2			2			2			—		—		—		—		—		—
Gain from Venezuela investment		(13	)		(13	)		(13	)		—		—		—		—		—		—
Aux Sable breach of contract settlement gain		(6	)		(6	)		(6	)		—		—		—		—		—		—
Total Nonrecurring Items Other		(19	)		(19	)		(19	)		—		—		—		—		—		—
Total Nonrecurring Items		(38	)		(38	)		(38	)		—		—		—		—		—		—
Recurring Segment Profit:
Williams Partners (WPZ)		1,385			1,523			1,660			1,450		1,695		1,940		1,525		1,770		2,015
Exploration & Production (incl. Gas Mkt)		350			425			500			345		783		1,220		500		1,250		2,000
Other		160			185			210			160		190		220		185		223		260
Total Recurring Segment Profit		1,900			2,138			2,375			1,995		2,695		3,395		2,225		3,250		4,275