Exhibit 99.1

Date:		Oct. 29, 2009

Williams Reports Third-Quarter 2009 Financial Results

	•		Net Income is $143 Million, $0.24 Per Share for 3Q
	•		Recurring Adjusted Income is $147 Million, $0.25 Per Share for 3Q: Up 27% Versus 2Q
	•		Recurring Adjusted EPS Guidance Increased 18% for ’09
	•		Higher Expected NGL Margins, Gas Prices, Lower Costs Drive Guidance Increase

Quarterly Summary Financial Information		3Q 2009									3Q 2008
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		$	141			$	0.24				$	360			$	0.61
Income from discontinued operations			2				—					6				0.01
Net income		$	143			$	0.24				$	366			$	0.62
Recurring income from continuing operations*		$	140			$	0.24				$	361			$	0.61
After-tax mark-to-market adjustments			7				0.01					(38	)			($0.06	)
Recurring income from continuing operations — after mark-to-market adjustments*		$	147			$	0.25				$	323			$	0.55
Year-to-Date Summary Financial Information		YTD 2009									YTD 2008
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		$	266			$	0.45				$	1,183			$	1.99
Income (loss) from discontinued operations			(153	)			(0.26	)				120				0.20
Net income		$	113			$	0.19				$	1,303			$	2.19
Recurring income from continuing operations*		$	366			$	0.62				$	1,089			$	1.83
After-tax mark-to-market adjustments			26				0.05					(30	)			($0.05	)
Recurring income from continuing operations — after mark-to-market adjustments*		$	392			$	0.67				$	1,059			$	1.78

     TULSA, Okla. — Williams (NYSE:WMB) announced unaudited net income attributable to Williams, for third-quarter 2009 of $143 million, or $0.24 per share on a diluted basis, compared with net income of $366 million, or $0.62 per share on a diluted basis for third-quarter 2008.

     Lower energy commodity prices in third-quarter 2009, compared to the relatively high prices in third-quarter 2008, impacted results in Exploration & Production and Midstream, as both businesses’ results were lower than third-quarter 2008. However, the company’s overall results are improved compared with second-quarter 2009.

     Gas Pipeline’s results, as expected, were relatively steady despite the much lower commodity prices. Other factors that served to mitigate the effect of lower commodity prices include higher natural gas production; Exploration & Production’s hedge positions, which cover a significant portion of its production; and fee-based revenues from certain of Midstream’s gathering and processing services.

     Year-to-date through Sept. 30, Williams reported net income attributable to Williams of $113 million, or $0.19 per share on a diluted basis, compared with net income of $1,303 million, or $2.19 per share, for the first three quarters of 2008.

     The year-to-date loss from discontinued operations is primarily due to the charges associated with the company’s operations in Venezuela that were recorded in first-quarter 2009. As a result of the Venezuelan government’s expropriation of the El Furrial and PIGAP II compression facilities in May, Williams is now reporting the results of those operations in discontinued operations.

     In addition to the losses associated with the Venezuelan operations, the previously noted lower energy commodity prices compared with the relatively high prices in 2008 also negatively affected the year-to-date 2009 results. The 2008 results through three quarters also benefited from $148 million in pre-tax gains on the sale of certain international interests.

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 Gas Marketing Services, was $147 million, or $0.25 per share for third-quarter 2009. On the same adjusted basis, recurring income from continuing operations was $323 million, or $0.55 per share, for third-quarter 2008.

Williams (NYSE: WMB) Third-Quarter 2009 Financial Results — Oct. 29, 2009		Page 1 of 6

     For the first three quarters of 2009, recurring income from continuing operations after mark-to-market adjustments was $392 million, or $0.67 per share; compared with $1,059 million, or $1.78 per share, for the same period in 2008.

     The lower recurring adjusted results for both the third-quarter and year-to-date periods were also due to the large disparity between the relatively low 2009 commodity prices compared with the 2008 prices, particularly in the first half of the year.

     As previously noted, the relatively steady results in Gas Pipeline, as well as higher natural gas production, Exploration & Production’s hedge positions and fee-based revenues in Midstream, partially offset some of the negative effect of lower commodity prices.

     While the 2009 recurring adjusted results are lower compared with 2008, the third-quarter 2009 results are up 27 percent compared with second-quarter 2009 results, which represent a more comparable commodity price environment.

     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.

2009 Guidance Increased, 2010-11 Guidance Unchanged

     Williams is updating its outlook for full-year 2009 commodity price assumptions and its earnings and capital expenditures, which it previously provided on Sept. 10. The following chart shows the updated guidance for 2009, as well as guidance for 2010 and 2011, which are both unchanged from the Sept. 10 guidance.

Williams’ 2009-2011 Outlook		2009		2010		2011
As of Oct. 29, 2009
Natural Gas ($/MMBtu)
NYMEX		$3.95 - $4.35		$4.50 - $7.00		$5.00 - $8.00
Rockies		$3.00 - $3.40		$3.90 - $6.10		$4.35 - $6.95
San Juan/Mid-Continent Avg.		$3.15 - $3.55		$4.05 - $6.35		$4.55 - $7.30
Crude Oil — WTI ($/barrel)		$55 - $60		$60 - $90		$65 - $95
Crude-to-Natural Gas Ratio		13.8x - 13.9x		12.9x - 13.3x		11.9x - 13.0x
Average NGL Margins ($/gallon)		$0.35 - $0.37		$0.35 - $0.67		$0.38 - $0.64
Capital Expenditures Incurred*		$2,450 - $2,675		$1,900 - $2,675		$2,300 - $3,800
Recurring Adj. Segment Profit*		$1,750 - $1,900		$1,575 - $2,775		$1,850 - $3,450
Recurring Adj. Earnings Per Share*		$0.95 - $1.00		$0.80 - $1.90		$1.10 - $2.65

     The company is increasing 2009 recurring adjusted segment profit guidance from a range of $1,525 million to $1,800 to a range of $1,750 million to $1,900 million. Guidance for recurring adjusted earnings per share is also increasing from a range of $0.75 to $0.90 to a range of $0.95 to $1.00.

     The updated guidance for 2009 reflects higher expected NGL margins in Midstream as well as higher expected average net realized prices for natural gas and lower costs in Exploration & Production.

     The company has slightly reduced its expected capital expenditures for 2009, reflecting the company’s continuing efforts to reduce operating and capital project costs.

CEO Perspective

     “Williams has delivered steadily improving results throughout a difficult 2009 and we are now poised to deliver significant earnings growth and value creation,” said Steve Malcolm, chairman, president and chief executive officer.

     “Forward market commodity prices are now above the midpoints of our 2010-11 assumptions, which have us approaching our record-level of earnings from 2008 over the next two years. And this is in a much more sustainable and lower commodity price environment,” Malcolm said.

     “We’re planning on investing in significant growth opportunities over the next two years. The Piceance Basin, where we have continued to build scale, holds a vast inventory of low risk, high return projects across all of our businesses.

Williams (NYSE: WMB) Third-Quarter 2009 Financial Results — Oct. 29, 2009		Page 2 of 6

     “As expected, Rockies gas prices are increasing and the basis differential is improving, which only enhances the strong returns on our projects,” Malcolm said.

Business Segment Performance

Consolidated Segment Profit		3Q									YTD
Amounts in millions		2009				2008					2009				2008
Exploration & Production		$	106			$	361				$	303			$	1,287
Midstream Gas & Liquids			222				229					371				737
Gas Pipeline			157				173					498				532
		$	485			$	763				$	1,172			$	2,556
Gas Marketing Services		$	(6	)		$	16				$	(14	)		$	(9	)
Other			(1	)			(2	)				3				(2	)
Consolidated Segment Profit		$	478			$	777				$	1,161			$	2,545

Recurring Consolidated Segment Profit (Loss)
After Mark-to-Market Adjustments*		3Q									YTD
Amounts in millions		2009				2008					2009				2008
Exploration & Production		$	102			$	379				$	339			$	1,162
Midstream Gas & Liquids			217				223					435				729
Gas Pipeline			157				163					498				513
		$	476			$	765				$	1,272			$	2,404
Gas Marketing after MTM Adjustments		$	6			$	(45	)			$	27			$	(58	)
Other			(1	)			(2	)				3				(2	)
Recurring Consolidated Segment Profit After Mark-to-Market Adjustments		$	481			$	718				$	1,302			$	2,344

Exploration & Production

     Exploration & Production includes natural gas production and development in the U.S. Rocky Mountains, San Juan Basin, Barnett Shale, and oil and gas development in South America. The company also made its initial investment in the Marcellus Shale earlier in 2009.

     The business reported segment profit of $106 million for third-quarter 2009, compared with segment profit of $361 million in third-quarter 2008.

     The significant decline in segment profit during the third quarter was due to much lower net realized average prices for natural gas, partially offset by higher production volumes and lower costs and expenses, including operating taxes.

     These higher production volumes, coupled with higher capital costs in prior years, resulted in higher depletion, depreciation and amortization expense during the third quarter.

     Although natural gas production grew from third-quarter 2008 to third-quarter 2009, production is expected to decline somewhat throughout the remainder of 2009 because of the company’s reduced drilling activity. Average daily natural gas production on U.S. interests has fallen 6 percent from first-quarter to third-quarter 2009.

Average Daily Production		3Q
Amounts in million cubic feet equivalent of natural
gas (MMcfe)		2009				2008					Growth rate
Piceance Basin			697				657					6	%
Powder River Basin			224				225					0	%
Other Basins			227				214					6	%
U.S. Interests only			1,148				1,096					5	%
U.S. & International Interests			1,202				1,146					5	%

     During third-quarter 2009, Williams’ net realized average price for U.S. production was $4.18 per thousand cubic feet of natural gas equivalent (Mcfe), which was 40 percent lower than the $6.97 per Mcfe realized in third-quarter 2008.

     For the nine months of 2009, the exploration and production business reported a segment profit of $303 million, compared with $1,287 million for the first nine months of 2008.

     The primary driver of the lower segment profit in the first nine months of 2009 was a 43 percent decline in the net realized average price for natural gas. Also, the 2008 period benefited from $148 million in pre-tax gains on the sale of certain international interests. Lower operational costs and expenses partially offset these negative impacts in the year-to-date period.

Midstream Gas & Liquids

     Midstream provides natural gas gathering and processing, deepwater production handling and oil transportation, natural gas liquids (NGL) fractionation and storage services and olefins production.

     The business reported a segment profit of $222 million for third-quarter 2009, compared with segment profit of $229 million for third-quarter 2008.

     The slight decline in segment profit for the quarter is primarily because of lower NGL and olefin prices, partially offset by decreased production costs reflecting lower natural gas prices. Higher NGL equity volumes and higher fee-based revenues also helped mitigate the lower NGL prices.

Williams (NYSE: WMB) Third-Quarter 2009 Financial Results — Oct. 29, 2009		Page 3 of 6

     The increase in fee-based revenue for the quarter was attributable to connecting new supplies in the deepwater Gulf of Mexico through the Blind Faith extension in late 2008, as well as the first partial quarter of processing natural gas production at Willow Creek. The higher NGL equity volumes in the quarter were primarily due to the absence of a number of unfavorable factors in third-quarter 2008, including impacts from hurricanes in the Gulf of Mexico.

     Year-to-date through Sept. 30, Midstream’s segment profit was $371 million, compared with $737 million for the same period in 2008.

     The significant decline, compared with the same period in 2008, is due primarily to lower NGL and olefin prices, especially in the first half of the year. These lower prices were partially offset by decreased production costs reflecting lower natural gas prices. In addition, the year-to-date results were unfavorably impacted by a $75 million loss related to the impairment of Midstream’s investment in the Accroven assets in Venezuela.

Gas Pipeline

     Gas Pipeline, which primarily delivers natural gas to markets along the Eastern Seaboard, in Florida and in the Pacific Northwest, reported third-quarter 2009 segment profit of $157 million, compared with $173 million for third-quarter 2008.

     Higher operating and maintenance, depreciation and pension expenses and the absence of a $10 million gain in 2008 were the drivers of the decrease in third-quarter segment profit. These were partially offset by lower project development costs.

     Year-to-date through Sept. 30, Gas Pipeline reported segment profit of $498 million, compared with $532 million for the same period in 2008.

     The lower segment profit was due primarily to higher operating costs, partially offset by higher other service revenues and by lower project development costs.

     The 2008 results also included the benefit of a $9 million gain on sale of excess natural gas inventory in the second quarter and the $10 million gain in the third quarter noted above.

Gas Marketing Services

     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 NGLs for Midstream.

     In addition, Gas Marketing manages various natural gas related contracts, such as transportation, storage, and related hedges. It also provides marketing services to third-parties, such as producers and processing companies. The segment also manages certain legacy natural gas contracts and positions that previously were reported in the former power business, which have been reduced to a minimal level and will conclude by the end of 2010.

Gas Marketing Recurring Segment Profit (Loss)
Adjusted for Mark-to-Market Effect*		3Q									YTD
Amounts in millions		2009				2008					2009				2008
Segment profit (loss)		$	(6	)		$	16				$	(14	)		$	(9	)
Nonrecurring adjustments			—				—					—				—
Recurring segment profit (loss)		$	(6	)		$	16				$	(14	)		$	(9	)
Mark-to-market adjustments			12				(61	)				41				(49	)
Recurring segment profit (loss) after MTM adjustments		$	6			$	(45	)			$	27			$	(58	)

     The improvement in Gas Marketing’s third-quarter recurring segment loss after mark-to-market adjustments primarily resulted from a $31 million increase in realized gains associated with storage contracts executed to hedge natural gas storage activity and by the absence of a $24 million unfavorable adjustment to the carrying value of our natural gas storage inventory in 2008.

Williams (NYSE: WMB) Third-Quarter 2009 Financial Results — Oct. 29, 2009		Page 4 of 6

     The improvement in Gas Marketing’s year-to-date recurring adjusted results was primarily the result of a $33 million increase in realized revenues associated with storage contracts, a $25 million decrease in inventory valuation adjustments related to natural gas owned in storage and a $19 million decrease in realized losses associated with certain legacy and proprietary trading positions.

     Although not significant for the third-quarter 2009 results, the company expects in the future to have some level of mark-to-market volatility in Gas Marketing Services, primarily from natural gas storage hedging.

Williams’ Liquidity, Financial Strength Remain Strong

     As of Oct. 23, 2009, Williams had approximately $1.7 billion of cash and cash equivalents, which included approximately $635 million held by certain domestic and international subsidiaries or margin deposits held on behalf of counterparties. The company also had approximately $1.9 billion of available credit capacity under the company’s credit facilities. Williams’ total liquidity as of Oct. 23 was approximately $3.6 billion.

     Williams has no significant debt maturities until 2011 and the company’s $1.43 billion primary credit facility does not expire until May 2012. Williams is rated investment grade by three of the major rating agencies.

Today’s Analyst Call

     Management will discuss the third-quarter 2009 results and outlook for 2009 during a live webcast beginning at 9:30 a.m. EDT today. Participants are encouraged to access the webcast and corresponding slides for viewing, downloading and printing at www.williams.com.

     A limited number of phone lines will be available at (877) 719-9791. International callers should dial (719) 325-4800. Replays of the third-quarter webcast, in both streaming and downloadable podcast formats, will be available for two weeks at www.williams.com following the event.

Form 10-Q

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

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

Williams (NYSE: WMB) Third-Quarter 2009 Financial Results — Oct. 29, 2009		Page 5 of 6

		Travis Campbell
		Williams (investor relations)
		(918) 573-2944
		Richard George
		Williams (investor relations)
		(918) 573-3679
		Sharna Reingold
		Williams (investor relations)
		(918) 573-2078

# # #

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 the Private Securities Litigation Reform Act of 1995. You typically can identify forward-looking statements by the use of forward-looking words, such as “anticipates,” believes,” “could,” “may,” “should,” “continues,” “estimates,” “expects,” “forecasts,” “intends,” “might,” “objectives,” “planned,” “potential,” “projects,” “scheduled,” “will,” or other similar expressions. These statements are based on our present intentions and our assumptions about future events and are subject to risks, uncertainties, and other factors. In addition to any assumptions, risks, uncertainties or other factors referred to specifically in connection with such statements, other factors not specifically referenced could cause our actual results to differ materially from the results expressed or implied in any forward-looking statements. Those factors include, among others:

	•		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 the current economic slowdown and the disruption of 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), 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.

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. In addition to causing our actual results to differ, the factors listed above may cause our intentions to change. Such changes in our intentions may also cause our results to differ. We disclaim any obligation to and do not intend to publicly update or revise any forward-looking statements or changes to our intentions, whether as a result of new information, future events or otherwise.

# # #

Williams (NYSE: WMB) Third-Quarter 2009 Financial Results — Oct. 29, 2009		Page 6 of 6

Financial Highlights and Operating Statistics

(UNAUDITED)

Final

September 30, 2009

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

		2008																				2009
(Dollars in millions, except per-share amounts)		1st Qtr				2nd Qtr				3rd Qtr				4th Qtr				Year				1st Qtr				2nd Qtr				3rd Qtr				Year
Income from continuing operations attributable to The Williams Companies, Inc. available to common stockholders		$	411			$	412			$	360			$	123			$	1,306			$	2			$	123			$	141			$	266
Income from continuing operations — diluted earnings per common share		$	0.69			$	0.69			$	0.61			$	0.21			$	2.21			$	—			$	0.21			$	0.24			$	0.45
Nonrecurring items:
Exploration & Production (E&P)
Gain on sale of Peru interests		$	(118	)		$	(30	)		$	—			$	—			$	(148	)		$	—			$	—			$	—			$	—
Reserve for receivables from bankrupt counterparty			—				5				4				—				9				—				—				—				—
Impairments of property in the Arkoma basin			—				—				14				129				143				5				—				—				5
Accrual for Wyoming severance taxes			—				—				—				34				34				—				3				(4	)			(1	)
Penalties from early release of drilling rigs			—				—				—				—				—				34				(2	)			—				32
Total Exploration & Production nonrecurring items			(118	)			(25	)			18				163				38				39				1				(4	)			36
Gas Pipeline
Gain on sale of excess inventory gas — TGPL			—				(9	)			—				—				(9	)			—				—				—				—
Gain on sale of certain south Texas assets — TGPL			—				—				(10	)			—				(10	)			—				—				—				—
Total Gas Pipeline nonrecurring items			—				(9	)			(10	)			—				(19	)			—				—				—				—
Midstream Gas & Liquids (MGL)
Impairment of Carbonate Trend pipeline			—				—				—				6				6				—				—				—				—
Involuntary conversion gain related to Ignacio gas processing plant			—				(3	)			(6	)			(3	)			(12	)			1				—				(5	)			(4	)
Reserve for receivables from bankrupt counterparty			—				1				—				—				1				—				—				—				—
Final earnout payment from 2005 Gulf Liquids asset sale			—				—				(8	)			—				(8	)			—				—				—				—
Charges from Hurricanes Gustav & Ike			—				—				8				5				13				—				—				—				—
Involuntary conversion gain from hurricane damage at Cameron			—				—				—				(5	)			(5	)			—				—				—				—
Gulf Liquids litigation partial settlement			—				—				—				(32	)			(32	)			—				—				—				—
Loss from Venezuela investment			—				—				—				—				—				68				—				—				68
Total Midstream Gas & Liquids nonrecurring items			—				(2	)			(6	)			(29	)			(37	)			69				—				(5	)			64
Nonrecurring items included in segment profit (loss)			(118	)			(36	)			2				134				(18	)			108				1				(9	)			100
Nonrecurring items below segment profit (loss)
Interest related to Gulf Liquids litigation partial settlement — MGL			—				—				—				(11	)			(11	)			—				—				—				—
Interest related to Wyoming severance taxes — E&P			—				—				—				4				4				—				—				—				—
Loss associated with Venezuela investment — E&P			—				—				—				—				—				11				—				—				11
Reversal of litigation contingency — Corporate			—				—				—				—				—				—				(5	)			—				(5	)
Impairment of cost-based investment — Corporate			—				—				—				—				—				—				—				7				7
			—				—				—				(7	)			(7	)			11				(5	)			7				13
Total nonrecurring items			(118	)			(36	)			2				127				(25	)			119				(4	)			(2	)			113
Tax effect for above items			(45	)			(14	)			1				49				(9	)			15				(1	)			(1	)			13
Recurring income from continuing operations available to common stockholders		$	338			$	390			$	361			$	201			$	1,290			$	106			$	120			$	140			$	366
Recurring diluted earnings per common share		$	0.57			$	0.66			$	0.61			$	0.34			$	2.18			$	0.18			$	0.20			$	0.24			$	0.62
Weighted-average shares — diluted (thousands)			598,627				596,187				589,138				587,057				592,719				582,361				588,780				590,059				588,693

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

Consolidated Statement of Operations
(UNAUDITED)

		2008																				2009
(Dollars in millions, except per-share amounts)		1st Qtr				2nd Qtr				3rd Qtr				4th Qtr				Year				1st Qtr				2nd Qtr				3rd Qtr				Year
Revenues		$	3,164			$	3,657			$	3,201			$	2,163			$	12,185			$	1,922			$	1,909			$	2,098			$	5,929
Segment costs and expenses:
Costs and operating expenses			2,333				2,697				2,344				1,697				9,071				1,444				1,392				1,537				4,373
Selling, general and administrative expenses			111				131				133				129				504				125				129				126				380
Other (income) expense — net			(114	)			(32	)			1				73				(72	)			33				(1	)			1				33
Total segment costs and expenses			2,330				2,796				2,478				1,899				9,503				1,602				1,520				1,664				4,786
Equity earnings			36				37				54				10				137				23				26				44				93
Income (loss) from investments			—				—				—				1				1				(75	)			—				—				(75	)
Total segment profit			870				898				777				275				2,820				268				415				478				1,161
Reclass equity earnings			(36	)			(37	)			(54	)			(10	)			(137	)			(23	)			(26	)			(44	)			(93	)
Reclass (income) loss from investments			—				—				—				(1	)			(1	)			75				—				—				75
General corporate expenses			(42	)			(42	)			(34	)			(31	)			(149	)			(40	)			(38	)			(40	)			(118	)
Operating income			792				819				689				233				2,533				280				351				394				1,025
Interest accrued			(160	)			(161	)			(162	)			(153	)			(636	)			(162	)			(167	)			(168	)			(497	)
Interest capitalized			8				16				16				19				59				20				22				15				57
Investing income (loss)			55				54				65				15				189				(61	)			24				39				2
Other income (expense) — net			4				—				2				(7	)			(1	)			(2	)			1				(1	)			(2	)
Income from continuing operations before income taxes			699				728				610				107				2,144				75				231				279				585
Provision (benefit) for income taxes			251				257				199				(30	)			677				56				80				87				223
Income from continuing operations			448				471				411				137				1,467				19				151				192				362
Income (loss) from discontinued operations			91				29				10				(5	)			125				(243	)			18				2				(223	)
Net income (loss)		$	539			$	500			$	421			$	132			$	1,592			$	(224	)		$	169			$	194			$	139
Less: Net income (loss) attributable to noncontrolling interests			39				63				55				17				174				(52	)			27				51				26
Net income (loss) attributable to The Williams Companies, Inc.		$	500			$	437			$	366			$	115			$	1,418			$	(172	)		$	142			$	143			$	113
Amounts attributable to The Williams Companies, Inc.:
Income from continuing operations		$	411			$	412			$	360			$	123			$	1,306			$	2			$	123			$	141			$	266
Income (loss) from discontinued operations			89				25				6				(8	)			112				(174	)			19				2				(153	)
Net income (loss)		$	500			$	437			$	366			$	115			$	1,418			$	(172	)		$	142			$	143			$	113
Diluted earnings (loss) per common share:
Income from continuing operations		$	0.69			$	0.69			$	0.61			$	0.21			$	2.21			$	—			$	0.21			$	0.24			$	0.45
Income (loss) from discontinued operations			0.15				0.04				0.01				(0.01	)			0.19				(0.29	)			0.03				—				(0.26	)
Net income (loss)		$	0.84			$	0.73			$	0.62			$	0.20			$	2.40			$	(0.29	)		$	0.24			$	0.24			$	0.19
Weighted-average number of shares used in computation (thousands)			598,627				596,187				589,138				587,057				592,719				582,361				588,780				590,059				588,693
Common shares outstanding at end of period (thousands)			584,025				579,117				578,641				579,052				579,052				580,072				582,933				583,101				583,101
Market price per common share (end of period)		$	32.98			$	40.31			$	23.65			$	14.48			$	14.48			$	11.38			$	15.61			$	17.87			$	17.87
Common dividends per share		$	0.10			$	0.11			$	0.11			$	0.11			$	0.43			$	0.11			$	0.11			$	0.11			$	0.33

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

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

		2008																				2009
(Dollars in millions)		1st Qtr				2nd Qtr				3rd Qtr				4th Qtr				Year				1st Qtr				2nd Qtr				3rd Qtr				Year
Segment profit (loss):
Exploration & Production		$	430			$	496			$	361			$	(27	)		$	1,260			$	78			$	119			$	106			$	303
Gas Pipeline			180				179				173				157				689				179				162				157				498
Midstream Gas & Liquids			238				270				229				134				871				12				137				222				371
Gas Marketing Services			21				(46	)			16				12				3				(2	)			(6	)			(6	)			(14	)
Other			1				(1	)			(2	)			(1	)			(3	)			1				3				(1	)			3
Total segment profit		$	870			$	898			$	777			$	275			$	2,820			$	268			$	415			$	478			$	1,161
Nonrecurring adjustments:
Exploration & Production		$	(118	)		$	(25	)		$	18			$	163			$	38			$	39			$	1			$	(4	)		$	36
Gas Pipeline			—				(9	)			(10	)			—				(19	)			—				—				—				—
Midstream Gas & Liquids			—				(2	)			(6	)			(29	)			(37	)			69				—				(5	)			64
Gas Marketing Services			—				—				—				—				—				—				—				—				—
Other			—				—				—				—				—				—				—				—				—
Total segment nonrecurring adjustments		$	(118	)		$	(36	)		$	2			$	134			$	(18	)		$	108			$	1			$	(9	)		$	100
Recurring segment profit (loss):
Exploration & Production		$	312			$	471			$	379			$	136			$	1,298			$	117			$	120			$	102			$	339
Gas Pipeline			180				170				163				157				670				179				162				157				498
Midstream Gas & Liquids			238				268				223				105				834				81				137				217				435
Gas Marketing Services			21				(46	)			16				12				3				(2	)			(6	)			(6	)			(14	)
Other			1				(1	)			(2	)			(1	)			(3	)			1				3				(1	)			3
Total recurring segment profit		$	752			$	862			$	779			$	409			$	2,802			$	376			$	416			$	469			$	1,261