TULSA, Okla. — Williams (NYSE:WMB) was named Hydrocarbon Producer of the Year last night at the Global Energy Awards in New York.
Williams was recognized for its success in making reserves additions, demonstrating industry leadership, achieving an attractive return on investment, applying new drilling technology, ensuring environmental stewardship and operational safety, and executing a strategic vision to dramatically increase production.
In less than a decade, Williams has built its Exploration & Production unit from less than 100 million cubic feet of gas equivalent per day in production to an average of more than 830 MMcfe/day at the end of third-quarter 2006.
The company has increased its prominence by specializing in the development of unconventional reserves, including tight-sands gas, coal-bed methane and shale. Williams primarily develops these natural gas reserves in the Piceance, Powder River, San Juan, Arkoma and Fort Worth basins in the United States.
“Williams believes in responsible development,” said Steve Malcolm, chairman, president and chief executive officer. “We work closely with contractors, communities and regulators to help produce the energy that our nation needs. Our challenge and our opportunity is to continue to earn the respect of stakeholders in every basin where we’re developing our large inventory of low-risk reserves.”
In 2005, Williams partnered with a contractor to develop and engineer a new generation of rig. Through applying offshore drilling technology to land, the new rig can simultaneously drill, complete and produce.
These rigs, which are custom-built for conditions in the Piceance Basin, are designed to drill up to 22 wells from a single location utilizing a skid system that allows it to move side-to-side, forward and backward without being disassembled.
“Ultimately, our next-generation rigs should allow Williams to produce more gas using less land – with a target of up to 75 percent fewer well pads where they are deployed in Colorado,” Malcolm said.
Williams’ goal is to increase its natural gas production to more than 1 billion cubic feet per day. The company has previously announced its plan to invest more than $3 billion in this business during 2006-2008.
At Dec. 31, 2005, Williams had total domestic and international proved natural gas and oil reserves of 3.6 trillion cubic feet equivalent. Also in 2005, the company drilled 1,629 gross wells, achieving a 99 percent success rate with development costs that are among the lowest in the industry.
Williams’ drilling activity last year resulted in the addition of 603 billion cubic feet equivalent in net reserves – a replacement rate for its U.S. production of 277 percent in 2005.
The Exploration & Production unit is led by Ralph A. Hill, who has been with the company for 25 years. Williams has 550 employees in this business.
“This is truly an exceptional recognition of the hard work and dedication that our employees show every day,” Hill said. “I thank them deeply for their efforts to make Williams the best in the industry. Our commitment to new technology, respecting the environment and building community relationships is a major part of our core values.”
The Global Energy Awards have been held every year since 1999. The competition is sponsored by Platts – a division of The McGraw-Hill Companies that publishes information about worldwide energy markets and news.
The judging panel consists of international energy experts, energy ministers, regulators, past and present heads of major energy companies, academics and legislators.
Williams’ Steve Malcolm was a finalist for CEO of the Year. The category featured a total of 23 nominees and 11 finalists from four countries. Finalists were selected for demonstrating integrity, courage, vision, decisiveness and leadership.
Williams’ 14,000-mile natural gas pipeline business also was a finalist for Energy Transporter of the Year.
About Williams (NYSE:WMB)
Williams, through its subsidiaries, primarily finds, produces, gathers, processes and transports natural gas. The company also manages a wholesale power business. Williams’ operations are concentrated in the Pacific Northwest, Rocky Mountains, Gulf Coast, Southern California and Eastern Seaboard. More information is available at www.williams.com.
Contact Information:
| Kelly Swan | Williams Media Relations | 918-573-6932 | |
| Richard George | Williams Investor Relations | 918-573-3679 |
