The Williams Companies, Inc. (WMB) 8-K Williams Reports Third-Quarter 2004 Results

Exhibit 99.3

Reconciliation of Income (Loss) from Continuing Operations to Recurring Earnings after MTM Adjustments

$ millions & $ per share	2004									2003
	1Q			2Q			3Q			1Q			2Q			3Q
Income (loss) from continuing operations available to common stockholders	$	(1	)	$	(18	)	$	16		$	(50	)	$	91		$	20
Total nonrecurring items (net of tax effect)	$	4		$	72		$	120		$	6		$	(103	)	$	(20	)
Recurring income from continuing operations available to common shareholders	$	3		$	54		$	136		$	(44	)	$	(12	)	$	(0	)
Recurring diluted earnings per common share	$	—		$	0.10		$	0.26		$	(0.08	)	$	(0.02	)	$	(0.00	)
*Mark-to-Market (MTM) adjustments for Power:
Reverse forward unrealized MTM gains/losses		(23	)		(69	)		(187	)		40			(232	)		54
Add realized gains/losses from MTM previously recognized		137			10			45			(55	)		45			(45	)
Total MTM adjustments		114			(59	)		(142	)		(15	)		(187	)		9
Tax effect of total MTM adjustments		44			(23	)		(55	)		(6	)		(73	)		4
After tax MTM adjustments		70			(36	)		(87	)		(9	)		(114	)		5
Recurring income from continuing operations available to common shareholders after MTM adjustments	$	73		$	18		$	49		$	(53	)	$	(126	)	$	5
Recurring diluted earnings per share after MTM adjustments	$	0.14		$	0.03		$	0.09		$	(0.10	)	$	(0.24	)	$	0.01
Weighted average shares — diluted (thousands)		525,752			521,698			529,525			517,652			534,839			524,711

* 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.