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

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 February 21, 2008, The Williams Companies, Inc. (“Williams” or the “Company”) issued a press release announcing its financial results for the quarter and year ended December 31, 2007. A copy of the press release and its accompanying financial highlights and reconciliation schedules are furnished as a part of this current report on Form 8-K as Exhibit 99.1 and is incorporated herein in its entirety by reference.

     The press release and accompanying financial highlights 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 7.01. Regulation FD Disclosure.

     On February 21, 2008, Williams also announced that its domestic and international proved natural gas reserves as of December 31, 2007, increased to 4.3 trillion cubic feet equivalent. Williams replaced its 2007 U.S. wellhead production of 334 billion cubic feet equivalent (Bcfe) at a rate of 232 percent. A copy of the press release announcing the same is furnished as Exhibit 99.2 to this Current Report on Form 8-K and is incorporated herein.

     The press release is being furnished pursuant to Item 7.01, Regulation FD Disclosure. 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		Copy of Williams’ press release dated February 21, 2008, publicly announcing its fourth quarter and year-end 2007 financial results.
	Exhibit 99.2		Copy of Williams’ press release dated February 21, 2008, publicly announcing its replacement of 2007 U.S. natural gas production.

     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.

INDEX TO EXHIBITS

EXHIBIT
NUMBER		DESCRIPTION
Exhibit 99.1		Copy of Williams’ press release dated February 21, 2008, publicly announcing its fourth quarter and year-end 2007 financial results.
Exhibit 99.2		Copy of Williams’ press release dated February 21, 2008, publicly announcing its replacement of 2007 U.S. natural gas production.

NYSE: WMB

Date:           Feb. 21, 2008

          Williams Reports Fourth-Quarter and Full-Year 2007 Financial Results

	•		Natural Gas Business Performance Drives Exceptional 2007 Results
	•		Key Measure — Recurring Adjusted EPS — Up 62% for the Year, 111% for 4Q
	•		Net Income is $990 Million for 2007, $225 Million for 4Q
	•		Domestic Production Up 21% in 2007, Proved Reserves Up 12% over 2006
	•		Midstream Sets Record Segment Profit
	•		Solid Gas Pipeline Growth on New Rates
	•		Guidance Increased for 2008, Steady Growth Forecast for 2009

Year-End Summary Financial Information		2007									2006
Per share amounts are reported on a fully diluted basis		millions				per share					millions				per share
Income from continuing operations		$	847			$	1.40				$	347			$	0.57
Income (loss) from discontinued operations			143				0.23					(38	)			(0.06	)
Net income		$	990			$	1.63				$	309			$	0.51
Recurring income from continuing operations*		$	873			$	1.44				$	539			$	0.89
After-tax mark-to-market adjustments			178				0.29					109				0.18
Recurring income from continuing operations — after mark-to-market adjustments*		$	1,051			$	1.73				$	648			$	1.07

Quarterly Summary Financial Information		4Q 2007									4Q 2006
Per share amounts are reported on a fully diluted basis		millions				per share					millions				per share
Income from continuing operations		$	206			$	0.34				$	161			$	0.26
Income (loss) from discontinued operations			19				0.03					(14	)			(0.02	)
Net income		$	225			$	0.37				$	147			$	0.24
Recurring income from continuing operations*		$	267			$	0.44				$	163			$	0.27
After-tax mark-to-market adjustments			91				0.15					10				0.01
Recurring income from continuing operations — after mark-to-market adjustments*		$	358			$	0.59				$	173			$	0.28

          TULSA, Okla. — Williams (NYSE:WMB) announced 2007 unaudited net income of $990 million, or $1.63 per share on a diluted basis, compared with net income of $309 million, or 51 cents per share on a diluted basis, for 2006.

Williams (NYSE: WMB) Year-end 2007 Financial Results — Feb. 21, 2008		Page 1 of 11

          For fourth-quarter 2007, the company reported net income of $225 million, or 37 cents per share on a diluted basis, compared with net income of $147 million, or 24 cents per share on a diluted basis, for fourth-quarter 2006.

          Strong performances in the company’s midstream, exploration & production and gas pipeline businesses were the key drivers of the increase in net income for both periods. Key factors were natural gas liquid (NGL) margins remaining at historically high levels, continued strong natural gas production growth, and the positive effect of new rates on two pipeline systems. The full-year period also benefited from the absence of $249 million of litigation related pre-tax charges recorded in second-quarter 2006.

          These benefits were partially offset in the fourth quarter by a loss, primarily mark-to-market, of approximately $166 million related to the sale of certain legacy natural gas contracts associated with the former power business.

          All prior-period amounts presented throughout this report have been recast to reflect certain components of the former Power segment as discontinued operations. Williams closed the sale of substantially all of its power assets to Bear Energy LP, a unit of The Bear Stearns Companies Inc. (NYSE: BSC), in the fourth quarter.

          Income or loss from discontinued operations includes the results of the company’s portfolio of power-related contracts, including its portfolio of tolling, full-requirements and tolling-resale contracts, as well as related hedges, and the Hazleton power generation plant.

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

          Williams is continuing its practice of providing an analysis of recurring earnings adjusted to remove the effect on its results of mark-to-market accounting for certain hedges and other derivatives.

          The company expects to have mark-to-market volatility in Gas Marketing Services because that segment has retained certain natural gas legacy contracts and positions from the former Power segment. The company also expects to have some mark-to-market volatility from natural gas storage and transportation hedging. Going forward, however, mark-to-market volatility is expected to be significantly reduced compared with previous levels.

          Recurring income from continuing operations after mark-to-market adjustments was $1.05 billion, or $1.73 per share, for 2007, compared with $648 million, or $1.07 per share, for 2006.

          For fourth-quarter 2007, recurring income from continuing operations after mark-to-market adjustments was $358 million, or 59 cents per share, compared with $173 million, or 28 cents per share, for the same period in 2006.

          A reconciliation of the company’s income from continuing operations to recurring income from continuing operations and mark-to-market adjustments accompanies this news release.

Stock Repurchase Update

          In July 2007, Williams announced that its board of directors authorized the repurchase of up to $1 billion of the company’s common stock. The stock-repurchase program has no expiration date.

Williams (NYSE: WMB) Year-end 2007 Financial Results — Feb. 21, 2008		Page 2 of 11

          During 2007, the company purchased approximately 16 million shares for $526 million under the program at an average cost of $33.08 per share.

CEO Perspective

          “Our businesses performed at exceptional levels during 2007, delivering more than 60 percent growth in our recurring adjusted earnings per share,” said Steve Malcolm, chairman, president and chief executive officer. “We built on our strong track record of creating value for Williams’ shareholders.

          “We also achieved several important milestones during the year,” Malcolm said. “We divested our power business, began a stock repurchase program and returned to investment grade. We also made two additional drop-downs to our midstream master limited partnership and established a new MLP to own pipeline assets.

          “Our future is bright — Williams is well positioned to help meet the country’s growing demand for cleaner burning and domestically produced energy.

          “From our large-scale E&P and midstream operations in key natural gas growth basins to our premier natural gas pipeline systems, we have the assets and capabilities to continue delivering value growth for our shareholders,” Malcolm said.

Business Segment Performance

          Consolidated results include segment profit for Williams’ businesses — Exploration & Production, Midstream Gas & Liquids, Gas Pipeline and Gas Marketing Services as well as results reported in the Other segment.

Consolidated Segment Profit (Loss)		Full Year									4Q
Amounts in millions		2007				2006					2007				2006
Exploration & Production		$	756			$	552				$	190			$	140
Midstream Gas & Liquids			1,072				675					367				167
Gas Pipeline			673				467					160				101
			2,501				1,694					717				408
Gas Marketing Services			(337	)			(195	)				(177	)			(30	)
Other			(1	)			(13	)				(1	)			(3	)
Consolidated Segment Profit		$	2,163			$	1,486				$	539			$	375

Williams (NYSE: WMB) Year-end 2007 Financial Results — Feb. 21, 2008		Page 3 of 11

Recurring Consolidated Segment Profit (Loss)
After Mark-to-Market Adjustments*		Full Year									4Q
Amounts in millions		2007				2006					2007				2006
Exploration & Production		$	760			$	552				$	194			$	140
Midstream Gas & Liquids			1,071				749					374				169
Gas Pipeline			638				465					160				101
			2,469				1,766					728				410
Gas Marketing Services			(317	)			(195	)				(157	)			(30	)
MTM Adjustments for Gas Marketing Services			288				177					148				16
Other			(1	)			(13	)				(1	)			(3	)
Recurring Consolidated Segment Profit After Mark-to-Market Adjustments		$	2,439			$	1,735				$	718			$	393

          For 2007, Williams’ businesses reported consolidated segment profit of $2.16 billion, compared with $1.49 billion for 2006. In fourth-quarter 2007, the company reported consolidated segment profit of $539 million, compared with $375 million in the fourth quarter of 2006.

          The significant improvements in consolidated segment profit during 2007 were primarily because strong operational results in Midstream, Exploration & Production and Gas Pipeline drove higher segment profit in each respective business unit. Lower results in Gas Marketing, primarily due to a fourth-quarter loss related to the sale of certain legacy natural gas contracts, partially offset the higher segment profits in the company’s other businesses.

          On a basis adjusted to remove the effect of nonrecurring items and mark-to-market accounting, Williams’ recurring consolidated segment profit was approximately $2.44 billion in 2007, compared with $1.74 billion for 2006. On the same adjusted basis, recurring consolidated segment profit was $718 million in fourth-quarter 2007, compared with $393 million in fourth-quarter 2006.

Exploration & Production: Continued Strong Production Growth Drives 2007 Results

	•		37% Increase in Segment Profit
	•		Domestic Proved Reserves Up 442 Bcfe in 2007 — 12% Growth Over ‘06
	•		Reserve Replacement Rate is 232%

          Exploration & Production includes natural gas production and development in the U.S. Rocky Mountains, San Juan Basin and Mid-Continent, and oil and gas development in South America.

          The business reported segment profit of $756 million for 2007, an increase of 37 percent over its 2006 segment profit of $552 million. Fourth-quarter 2007 segment profit was $190 million, compared with $140 million for the same period last year.

          Strong growth in domestic natural gas production volumes and increased net realized average prices were the primary drivers of the increased segment profit in 2007. For the year, Williams’ average daily domestic production increased 21 percent over 2006. For fourth-quarter 2007, the company increased its average daily domestic production 18 percent over fourth-quarter 2006.

Williams (NYSE: WMB) Year-end 2007 Financial Results — Feb. 21, 2008		Page 4 of 11

          Increased development within the Piceance, Powder River, and Fort Worth basins drove the strong growth in domestic production volumes. In the Piceance Basin of western Colorado — the company’s cornerstone for production and reserves growth — average daily production increased 30 percent for the year and 25 percent for the fourth quarter.

Yearly Average Daily Production Amounts in million cubic feet equivalent of natural gas (MMcfe)		Full Year
		2007				2006					Growth rate
Piceance Basin			540				416					30	%
Powder River Basin			170				142					20	%
Other Basins			203				194					5	%
U.S. interests only			913				752					21	%
U.S. and international interests			960				803					20	%

          During 2007, Williams’ net realized average price for U.S. production was $5.08 per thousand cubic feet of natural gas equivalent (Mcfe), which was 15 percent higher than the $4.40 per Mcfe realized in 2006.

          While Rockies market prices were 30 percent lower in 2007 compared with 2006, the company’s firm transportation contracts, which allow a significant portion of its Rockies production to be sold at more advantageous market points, as well as fixed priced hedges and collars, contributed to the increase in net realized average prices. Net realized average prices include market prices, net of fuel and shrink and hedge positions, less gathering and transportation expenses.

          The benefits of higher production volumes and higher net realized average prices in 2007 were partially offset by increased depreciation, depletion and amortization, higher operating costs due to increased production volumes and higher well service and industry costs.

          In a separate announcement today, Williams reported year-end 2007 domestic proved U.S. natural gas reserves of 4.14 trillion cubic feet equivalent (Tcfe), up 12 percent from year-end 2006 reserves of 3.7 Tcfe. Including its international interests, Williams had total proved natural gas and oil reserves of 4.3 Tcfe at year-end 2007 as compared to 3.9 Tcfe at year-end 2006.

          Williams’ domestic activities in 2007 resulted in a total addition of 776 billion cubic feet equivalent (Bcfe) in net reserves. Over the past three years, Williams has added more than 1.9 Tcfe in domestic net reserves from drilling activity. For the fifth consecutive year, Williams has replaced more than 200 percent of its production, with a 232 percent reserve replacement rate in 2007.

U.S. Proved Reserves Reconciliation
Amounts in billion cubic feet equivalent of natural gas

Proved reserves Dec. 31, 2006			3,701
Acquisitions			19
Additions and revisions			757
Production			(334	)
Proved reserves Dec. 31, 2007			4,143

Williams (NYSE: WMB) Year-end 2007 Financial Results — Feb. 21, 2008		Page 5 of 11

          In 2007, Williams drilled 1,590 gross wells, achieving a success rate greater than 99 percent. During the year, the company continued to be an industry leader in cost performance, as its three-year domestic average finding and developing cost was $1.77 per thousand cubic feet equivalent (Mcfe) of natural gas.

          Williams’ previous 2008 recurring segment profit for Exploration & Production is unchanged at $1 billion to $1.3 billion. The company is updating its capital expenditure guidance for Exploration & Production to a new range of $1.45 billion to $1.65 billion from the previous range of $1.4 billion to $1.6 billion.

          For 2009, Williams expects $1.025 billion to $1.325 billion in recurring segment profit from Exploration & Production. Williams plans to invest $1.45 billion to $1.65 billion of capital in Exploration & Production in 2009.

Midstream Gas & Liquids: Record-setting Year Drives Segment Profit Up 59%, Topping $1 Billion

          Midstream, which provides natural gas gathering and processing, and NGL fractionation and storage services and olefins production, reported 2007 segment profit of $1.07 billion, compared with $675 million in 2006, an increase of 59 percent. This marks the first time Midstream has surpassed $1 billion in segment profit.

          For fourth-quarter 2007, Midstream reported segment profit of $367 million, compared with $167 million for the same period in 2006, an increase of 120 percent.

          Midstream’s extraordinary growth in segment profit during 2007 is primarily due to record-level NGL margins driven by favorable market commodity pricing on NGLs and lower Rockies market natural gas prices. Higher volumes related to the February 2007 start-up of the fifth cryogenic gas processing train at the Opal, Wyo., complex also helped drive the increased segment profit.

          Higher margins in Midstream’s olefins business unit driven by favorable market commodity pricing and higher volumes resulting from the acquisition of an additional interest in the Geismar plant also contributed to the growth.

          Production declines in deepwater Gulf of Mexico, which contributed to lower gathering and production fee revenues, and higher operating expenses partially offset these benefits. The 2007 results benefited from the absence of a non-recurring charge in 2006 of $73 million related to Gulf Liquids litigation.

          Williams markets NGLs via equity volumes the company retains as payment-in-kind under certain processing contracts.

          For 2007, Midstream sold 1.42 billion gallons of NGL equity volumes, compared to 1.36 billion gallons sold during 2006.

          Higher NGL sales volumes in the West, due to the new processing train at the Opal plant, drove the increase in equity sales volumes for the year. Declining producers’ volumes in the Gulf Coast region partially offset the higher volumes in the West.

          For 2008, Williams is increasing Midstream’s recurring segment profit guidance to a range of $700 million to $950 million, up from previous guidance of $575 million to $850 million. The increase reflects higher expected NGL margins.

Williams (NYSE: WMB) Year-end 2007 Financial Results — Feb. 21, 2008		Page 6 of 11

          Williams is also increasing Midstream’s capital expenditure guidance for 2008. The company now expects $700 million to $750 million in capital expenditures as certain previously projected expenditures in 2007 are now expected in 2008.

          For 2009, Williams’ recurring segment profit guidance for Midstream is $850 million to $1.15 billion. The capital expenditure guidance for Midstream in 2009 is $450 million to $500 million.

Gas Pipeline: New Rates Drive 44 Percent Increase in Segment Profit for 2007

          Gas Pipeline, which primarily delivers natural gas to markets along the Eastern Seaboard, in Florida and in the Northwest, reported 2007 segment profit of $673 million, compared with $467 million for 2006, an increase of 44 percent.

          For fourth-quarter 2007, Gas Pipeline’s segment profit increased 58 percent to $160 million, compared with $101 million for the same period in 2006.

          Increased revenues from new rates on both the Northwest Pipeline and Transco systems and increased earnings from the company’s 50 percent interest in Gulfstream Natural Gas System were the primary drivers of the segment profit increases during 2007. Higher depreciation expenses and operating costs partially offset these benefits.

          The full-year 2007 results include the benefit of a non-recurring $17 million reduction to a regulatory liability and non-recurring income of $18 million associated with payments received for a terminated firm transportation agreement on the Grays Harbor lateral.

          Northwest Pipeline’s new, higher rates went into effect, subject to refund, on Jan. 1, 2007. On March 30, 2007, the Federal Energy Regulatory Commission approved the stipulation and settlement agreement on its rate case.

          Transco’s new, higher rates went into effect, subject to refund, on March 1, 2007. On Nov. 28, 2007, Transco filed a formal stipulation and agreement with the FERC resolving all substantive issues in its rate case. The company is awaiting final FERC approval.

          The company is increasing its 2008 recurring segment profit guidance for Gas Pipeline to a range of $640 million to $690 million. The previous range was $625 million to $675 million. Capital expenditure guidance for 2008 is unchanged at $360 million to $495 million.

          For 2009, the company’s guidance for recurring segment profit is $640 million to $690 million and its guidance for capital spending is $340 million to $490 million.

Gas Marketing Services: Supporting Natural Gas Businesses with Marketing, Risk Management

          Gas Marketing Services is responsible for supporting Williams’ natural gas businesses by providing marketing and risk management services. These services primarily include marketing and hedging the gas produced by Exploration & Production, and procuring fuel and shrink gas and hedging natural gas liquids for Midstream.

Williams (NYSE: WMB) Year-end 2007 Financial Results — Feb. 21, 2008		Page 7 of 11

          In addition, Gas Marketing manages various natural-gas related contracts, such as transportation, storage, and related hedges, and provides marketing services to third-parties, such as producers. The segment also manages certain legacy natural gas contracts and positions that previously were reported in the former power business.

          Gas Marketing reported a 2007 segment loss of $337 million, compared with a loss of $195 million in 2006. For fourth-quarter 2007, Gas Marketing reported a segment loss of $177 million, compared with a loss of $30 million in the 2006 period.

          The lower results in 2007 were primarily due to a fourth-quarter loss, primarily mark-to-market, of approximately $166 million related to the sale of certain legacy natural gas contracts.

          The company intends to liquidate a substantial portion of the remaining legacy contracts. Until they are liquidated, Gas Marketing’s earnings may continue to reflect mark-to-market volatility. The company also expects to have some mark-to-market volatility from natural gas storage and transportation hedging. Going forward, however, mark-to-market volatility is expected to be significantly reduced compared with previous levels.

Gas Marketing Recurring Segment Loss Adjusted for Mark-to-Market Effect*		Full Year									4Q
Amounts in millions		2007				2006					2007				2006
Segment loss			($337	)			($195	)				($177	)			($30	)
Nonrecurring adjustments			20				—					20				—
Recurring segment loss			(317	)			(195	)				(157	)			(30	)
Mark-to-market adjustments			288				177					148				16
Recurring segment loss after MTM adjustments			($29	)			($18	)				($9	)			($14	)

          On a recurring basis adjusted to remove the effect of mark-to-market accounting, Gas Marketing had a segment loss of $29 million in 2007, compared with a loss of $18 million in 2006. On the same adjusted basis, recurring segment loss was $9 million in fourth-quarter 2007, compared with $14 million in fourth-quarter 2006.

          Williams is adjusting its guidance for Gas Marketing in 2008. The company now expects Gas Marketing’s recurring segment results, adjusted for the effect of mark-to-market accounting and exclusive of the effect of any gain or loss on the liquidation of legacy positions, to range from a loss of $20 million to breakeven. Previous guidance was a loss of $30 million to breakeven.

          For 2009, Williams’ guidance for recurring segment results, adjusted for the effect of mark-to-market accounting and exclusive of the effect of any gain or loss on the liquidation of legacy positions, is a range from a loss of $25 million to breakeven.

Guidance Increased for 2008, Steady Growth Forecast for 2009

          Guidance for consolidated segment profit includes results for Exploration & Production, Midstream and Gas Pipeline, as well as Gas Marketing and the Other segment. All consolidated segment profit and earnings per share ranges are presented on a recurring basis adjusted for the effect of mark-to-market accounting.

Williams (NYSE: WMB) Year-end 2007 Financial Results — Feb. 21, 2008		Page 8 of 11

          For 2008, Williams has increased its consolidated segment profit guidance to a range of $2.4 billion to $2.9 billion and earnings per share of $1.60 to $2.00. The previous ranges were $2.25 billion to $2.755 billion in consolidated segment profit and earnings per share of $1.50 to $1.90.

          The new ranges for 2008 reflect the previously referenced increases in Midstream and Gas Pipeline.

          The 2008 ranges assume unhedged natural gas prices ranging from $7.05 to $8.35 per Mcfe (Henry Hub), adjusted for basis differentials, NGL margins consistent with an oil-to-gas price ratio of 8.5 to 9.6 (West Texas Intermediate crude to Henry Hub gas), and an assumption for crude oil pricing in the range of $60 to $80 per barrel.

          For 2008, Williams has also increased its capital expenditure guidance to a range of $2.575 billion to $2.925 billion from the previous range of $2.475 billion to $2.825 billion. The updated range reflects the previously referenced increases in Midstream and Exploration & Production.

          For its 2009 guidance, Williams expects consolidated segment profit of $2.5 billion to $3.1 billion and earnings per share of $1.70 to $2.20. The company expects total capital expenditures in 2009 of $2.25 billion to $2.650 billion.

          The primary factors in the steady growth forecast for 2009 are increased natural gas production in the exploration & production business, as well as the benefit of new projects in the midstream business and gas pipeline expansion projects. Lower net realized average natural gas prices, due primarily to legacy hedges, are expected to partially offset these benefits.

          The 2009 ranges assume unhedged natural gas prices ranging from $7.05 to $8.35 per Mcfe (Henry Hub), adjusted for basis differentials, NGL margins consistent with an oil-to-gas price ratio of 9.2 to 10.2 (West Texas Intermediate crude to Henry Hub gas), and an assumption for crude oil pricing in the range of $65 to $85 per barrel.

Today’s Analyst Call

          Williams’ management will discuss the company’s 2007 financial results and outlook through 2009 during an analyst presentation to be webcast live beginning at 10 a.m. Eastern today.

          Participants are encouraged to access the presentation and corresponding slides via www.williams.com.

          A limited number of phone lines also will be available at (877) 741-4244. International callers should dial (719) 325-4820. Callers should dial in at least 10 minutes prior to the start of the discussion.

          Replays of the webcast, in both streaming and podcast forms, will be available for two weeks at www.williams.com following the event.

Form 10-K

          The company expects to file its Form 10-K with the Securities and Exchange Commission during the week of Feb. 25. The document will be available on both the SEC and Williams websites.

Williams (NYSE: WMB) Year-end 2007 Financial Results — Feb. 21, 2008		Page 9 of 11

About Williams (NYSE: WMB)

Williams, through its subsidiaries, finds, produces, gathers, processes and transports natural gas. Williams’ operations are concentrated in the Pacific Northwest, Rocky Mountains, Gulf Coast, and Eastern Seaboard. More information is available at http://www.williams.com. Go to http://www.b2i.us/irpass.asp?BzID=630&to=ea&s=0 to join our e-mail list.

Contact:		Jeff Pounds
		Williams (media relations)
		(918) 573-3332
		Travis Campbell
		Williams (investor relations)
		(918) 573-2944
		Richard George
		Williams (investor relations)
		(918) 573-3679
		Sharna Reingold
		Williams (investor relations)
		(918) 573-2078

# # #

Williams’ reports, filings, and other public announcements might 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 Private Securities Litigation Reform Act of 1995. You typically can identify forward-looking statements by the use of forward-looking words, such as “anticipate,” believe,” “could,” “continue,” “estimate,” “expect,” “forecast,” “may,” “plan,” “potential,” “project,” “schedule,” “will,” and other similar words. These statements are based on our intentions, beliefs, and assumptions about future events and are subject to risks, uncertainties, and other factors. Actual results could differ materially from those contemplated by the forward-looking statements. In addition to any assumptions and other factors referred to specifically in connection with such statements, other factors could cause our actual results to differ materially from the results expressed or implied in any forward-looking statements. Those factors include, among others: changes in general economic conditions and changes in the industries in which Williams conducts business; changes in federal or state laws and regulations to which Williams is subject, including tax, environmental and employment laws and regulations; the cost and outcomes of legal and administrative claims proceedings, investigations, or inquiries; the results of financing efforts, including our ability to obtain financing on favorable terms, which can be affected by various factors, including our credit ratings and general economic conditions; the level of creditworthiness of counterparties to our transactions; the amount of collateral required to be posted from time to time in our transactions; the effect of changes in accounting policies; the ability to control costs; the ability of each business unit to successfully implement key systems, such as order entry systems and service delivery systems; the impact of future federal and state regulations of business activities, including allowed rates of return, the pace of deregulation in retail natural gas market, and the resolution of other regulatory matters; changes in environmental and other laws and regulations to which Williams and its subsidiaries are subject or other external factors over which we have no control; changes in foreign economies, currencies, laws and regulations, and political climates, especially in Canada, Argentina, Brazil, and Venezuela, where Williams has direct investments; the timing and extent of changes in commodity prices, interest rates, and foreign currency exchange rates; the weather and other natural phenomena; the ability of Williams to develop or access expanded markets and product offerings as well as their ability to maintain existing markets; the ability of Williams and its subsidiaries to obtain governmental and regulatory approval of various expansion projects; future utilization of pipeline capacity, which can depend on energy prices, competition from other pipelines and alternative fuels, the general level of natural gas and petroleum product demand, decisions by customers not to renew expiring natural gas transportation contracts; the accuracy of estimated hydrocarbon reserves and seismic data; and global and domestic economic repercussions from terrorist activities and the government’s response to such terrorist activities. In light of these risks, uncertainties, and assumptions, the events described in the forward-looking statements might not occur or might occur to a different extent or at a different time that we have described. We undertake no

Williams (NYSE: WMB) Year-end 2007 Financial Results — Feb. 21, 2008		Page 10 of 11

obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

In regard to the company’s reserves in Exploration & Production, the SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves. We have used certain terms in this news release, such as “probable” reserves and “possible” reserves and “new opportunities potential” reserves that the SEC’s guidelines strictly prohibit us from including in filings with the SEC. The SEC defines proved reserves as estimated quantities that geological and engineering data demonstrate with reasonable certainty to be recoverable in the future from known reservoirs under the assumed economic conditions. Probable and possible reserves are estimates of potential reserves that are made using accepted geological and engineering analytical techniques, but which are estimated with reduced levels of certainty than for proved reserves. Possible reserve estimates are less certain than those for probable reserves. New opportunities potential is an estimate of reserves for new areas for which we do not have sufficient information to date to raise the reserves to either the probable category or the possible category. New opportunities potential estimates are even less certain that those for possible reserves.

Reference to “total resource portfolio” include proved, probable and possible reserves as well as new opportunities potential.

Investors are urged to closely consider the disclosures and risk factors in our annual report on Form 10-K filed with the Securities and Exchange Commission on Feb. 28, 2007, and our quarterly reports on Form 10-Q available from our offices or from our website at www.williams.com.

Williams (NYSE: WMB) Year-end 2007 Financial Results — Feb. 21, 2008		Page 11 of 11

Financial Highlights and Operating Statistics
(UNAUDITED)

Final

December 31, 2007

Reconciliation of Income (Loss) from Continuing Operations to Recurring Earnings
(UNAUDITED)

		2006																				2007
(Dollars in millions, except per-share amounts)		1st Qtr				2nd Qtr				3rd Qtr				4th Qtr				Year				1st Qtr				2nd Qtr				3rd Qtr				4th Qtr				Year
Income (loss) from continuing operations available to common stockholders		$	132				($59	)		$	113			$	161			$	347			$	170			$	243			$	228			$	206			$	847
Income (loss) from continuing operations — diluted earnings (loss) per common share		$	0.22				($0.10	)		$	0.19			$	0.26			$	0.57			$	0.28			$	0.40			$	0.38			$	0.34			$	1.40
Nonrecurring items:
Exploration & Production
Accrual for royalty litigation contingency		$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	4			$	4
Total Exploration & Production nonrecurring items			—				—				—				—				—				—				—				—				4				4
Gas Pipeline
Reversal of litigation contigency due to favorable ruling — TGPL			(2	)			—				—				—				(2	)			—				—				—				—				—
Change in estimate related to a regulatory liability — NWP			—				—				—				—				—				—				(17	)			—				—				(17	)
Payments received for terminated firm transportation agreement — NWP			—				—				—				—				—				—				(6	)			(12	)			—				(18	)
Total Gas Pipeline nonrecurring items			(2	)			—				—				—				(2	)			—				(23	)			(12	)			—				(35	)
Midstream Gas & Liquids
Reversal of a maintenance accrual			—				—				—				—				—				(8	)			—				—				—				(8	)
Income from a favorable litigation outcome			—				—				—				—				—				—				—				—				(12	)			(12	)
Reserve for international receivables			—				—				—				—				—				—				—				—				9				9
Impairment of Carbonate Trend pipeline			—				—				—				—				—				—				—				—				10				10
Gains on sales of MGL properties			—				—				(8	)			—				(8	)			—				—				—				—				—
Adjustment of accounts payable accrual			—				—				11				—				11				—				—				—				—				—
Losses on asset retirements, abandonments and write-downs			—				—				5				—				5				—				—				—				—				—
Accrual for Gulf Liquids litigation contingency			—				68				2				2				73				—				—				—				—				—
Settlement of an international contract dispute (1)			(6	)			—				—				—				(6	)			—				—				—				—				—
Rounding			—				—				—				—				(1	)			—				—				—				—				—
Total Midstream Gas & Liquids nonrecurring items			(6	)			68				10				2				74				(8	)			—				—				7				(1	)
Gas Marketing Services
Accrual for litigation contingencies			—				—				—				—				—				—				—				—				20				20
Total Gas Marketing Services nonrecurring items			—				—				—				—				—				—				—				—				20				20
Nonrecurring items included in segment profit (loss)			(8	)			68				10				2				72				(8	)			(23	)			(12	)			31				(12	)
Nonrecurring items below segment profit (loss)
Impairment of cost-based investment — Petrowayu (Investing income / loss — Exploration & Production) (1)			—				—				—				16				16				—				—				—				—				—
Securities litigation settlement and related costs (2)			1				161				3				2				167				—				—				—				—				—
Reversal of interest accrual related to reversal of litigation contingency noted above (Interest accrued — Gas Pipeline — TGPL)			(5	)			—				—				—				(5	)			—				—				—				—				—
Early debt retirement costs (Corporate and Exploration & Production) (1)			27				4				—				—				31				—				—				—				19				19
Gain on sale of Algar/Triangulo shares (Investing income / loss — Other)			(7	)			—				—				—				(7	)			—				—				—				—				—
Interest related to Gulf Liquids litigation contingency ( Interest accrued — Midstream)			—				20				1				1				22				1				1				1				—				3
Interest income related to contract termination gain noted above (Investing income — Gas Pipeline — NWP)			—				—				—				—				—				—				—				(2	)			—				(2	)
Interest related to royalty litigation contingency ( Interest accrued — E&P)			—				—				—				—				—				—				—				—				1				1
Rounding			—				—				—				1				2				—				1				(1	)			—				—
			16				185				4				20				226				1				2				(2	)			20				21
Total nonrecurring items			8				253				14				22				298				(7	)			(21	)			(14	)			51				9
Tax effect for above items (1)(2)(3)			3				77				5				2				88				(3	)			1				(5	)			13				6
Adjustment for nonrecurring tax-related items(4)			—				—				—				(18	)			(18	)			—				—				—				23				23
Recurring income from continuing operations available to common stockholders		$	137			$	117			$	122			$	163			$	539			$	166			$	221			$	219			$	267			$	873
Recurring diluted earnings per common share		$	0.23			$	0.20			$	0.20			$	0.27			$	0.89			$	0.27			$	0.36			$	0.36			$	0.44			$	1.44
Weighted-average shares — diluted (thousands)			607,073				595,561				609,062				610,352				608,627				611,470				613,172				610,651				604,243				609,866

Consolidated Statement of Income
(UNAUDITED)

		2006																				2007
(Dollars in millions, except per-share amounts)		1st Qtr				2nd Qtr				3rd Qtr				4th Qtr				Year				1st Qtr				2nd Qtr				3rd Qtr				4th Qtr				Year
Revenues		$	2,387			$	2,220			$	2,512			$	2,257			$	9,376			$	2,368			$	2,824			$	2,860			$	2,506			$	10,558
Segment costs and expenses:
Costs and operating expenses			1,962				1,777				2,040				1,787				7,566				1,843				2,180				2,222				1,834				8,079
Selling, general and administrative expenses			58				96				113				122				389				102				108				107				154				471
Other (income) expense — net			(22	)			66				(7	)			(3	)			34				(18	)			(18	)			(2	)			20				(18	)
Total segment costs and expenses			1,998				1,939				2,146				1,906				7,989				1,927				2,270				2,327				2,008				8,532
Equity earnings			22				23				30				24				99				21				23				52				41				137
Total segment profit			411				304				396				375				1,486				462				577				585				539				2,163
Reclass equity earnings			(22	)			(23	)			(30	)			(24	)			(99	)			(21	)			(23	)			(52	)			(41	)			(137	)
General corporate expenses			(31	)			(34	)			(35	)			(32	)			(132	)			(40	)			(36	)			(40	)			(45	)			(161	)
Securities litigation settlement and related fees			(1	)			(161	)			(3	)			(2	)			(167	)			—				—				—				—				—
Operating income			357				86				328				317				1,088				401				518				493				453				1,865
Interest accrued			(161	)			(180	)			(161	)			(168	)			(670	)			(172	)			(172	)			(171	)			(170	)			(685	)
Interest capitalized			3				4				5				5				17				5				7				9				11				32
Investing income			48				39				51				30				168				52				66				78				61				257
Early debt retirement costs			(27	)			(4	)			—				—				(31	)			—				—				—				(19	)			(19	)
Minority interest in income of consolidated subsidiaries			(7	)			(8	)			(12	)			(13	)			(40	)			(14	)			(25	)			(29	)			(22	)			(90	)
Other income (expense) — net			7				8				3				8				26				2				2				8				(1	)			11
Income (loss) from continuing operations before income taxes			220				(55	)			214				179				558				274				396				388				313				1,371
Provision for income taxes			88				4				101				18				211				104				153				160				107				524
Income (loss) from continuing operations			132				(59	)			113				161				347				170				243				228				206				847
Income (loss) from discontinued operations			—				(17	)			(7	)			(14	)			(38	)			(36	)			190				(30	)			19				143
Net income (loss)		$	132			$	(76	)		$	106			$	147			$	309			$	134			$	433			$	198			$	225			$	990
Diluted earnings per common share:
Income (loss) from continuing operations		$	0.22			$	(0.10	)		$	0.19			$	0.26			$	0.57			$	0.28			$	0.40			$	0.38			$	0.34			$	1.40
Income (loss) from discontinued operations			—				(0.03	)			(0.01	)			(0.02	)			(0.06	)			(0.06	)			0.31				(0.05	)			0.03				0.23
Net income (loss)		$	0.22			$	(0.13	)		$	0.18			$	0.24			$	0.51			$	0.22			$	0.71			$	0.33			$	0.37			$	1.63
Weighted-average number of shares used in computation (thousands)			607,073				595,561				609,062				610,352				608,627				611,470				613,172				610,651				604,243				609,866
Common shares outstanding at end of period (thousands)			595,007				595,562				596,130				597,147				597,147				598,492				599,781				593,016				586,148				586,148
Market price per common share (end of period)		$	21.39			$	23.36			$	23.87			$	26.12			$	26.12			$	28.46			$	31.62			$	34.06			$	35.78			$	35.78
Common dividends per share		$	0.075			$	0.09			$	0.09			$	0.09			$	0.345			$	0.09			$	0.10			$	0.10			$	0.10			$	0.39

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 to Recurring Segment Profit
(UNAUDITED)

		2006																				2007
(Dollars in millions)		1st Qtr				2nd Qtr				3rd Qtr				4th Qtr				Year				1st Qtr				2nd Qtr				3rd Qtr				4th Qtr				Year
Segment profit (loss):
Exploration & Production		$	148			$	119			$	145			$	140			$	552			$	188			$	209			$	169			$	190			$	756
Gas Pipeline			135				122				109				101				467				150				180				183				160				673
Midstream Gas & Liquids			154				132				222				167				675				154				251				300				367				1,072
Gas Marketing Services			(23	)			(66	)			(76	)			(30	)			(195	)			(30	)			(63	)			(67	)			(177	)			(337	)
Other			(3	)			(3	)			(4	)			(3	)			(13	)			—				—				—				(1	)			(1	)
Total segment profit		$	411			$	304			$	396			$	375			$	1,486			$	462			$	577			$	585			$	539			$	2,163
Nonrecurring adjustments:
Exploration & Production		$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	4			$	4
Gas Pipeline			(2	)			—				—				—				(2	)			—				(23	)			(12	)			—				(35	)
Midstream Gas & Liquids			(6	)			68				10				2				74				(8	)			—				—				7				(1	)
Gas Marketing Services			—				—				—				—				—				—				—				—				20				20
Other			—				—				—				—				—				—				—				—				—				—
Total segment nonrecurring adjustments		$	(8	)		$	68			$	10			$	2			$	72			$	(8	)		$	(23	)		$	(12	)		$	31			$	(12	)
Recurring segment profit (loss):
Exploration & Production		$	148			$	119			$	145			$	140			$	552			$	188			$	209			$	169			$	194			$	760
Gas Pipeline			133				122				109				101				465				150				157				171				160				638
Midstream Gas & Liquids			148				200				232				169				749				146				251				300				374				1,071
Gas Marketing Services			(23	)			(66	)			(76	)			(30	)			(195	)			(30	)			(63	)			(67	)			(157	)			(317	)
Other			(3	)			(3	)			(4	)			(3	)			(13	)			—				—				—				(1	)			(1	)
Total recurring segment profit		$	403			$	372			$	406			$	377			$	1,558			$	454			$	554			$	573			$	570			$	2,151