WMB - Earnings call transcript Q3 2017 | The Williams Companies, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, everyone, and welcome to The Williams and Williams Partners Third Quarter 2017 Conference Call. Today's conference is being recorded. At this time, for opening remarks and introductions, I would like to turn the call over to Mr. John Porter, Head of Investor Relations. Please go ahead.

John D. Porter

Chris. Thanks, thank interest and Williams Williams for Partners. you morning in your and Good released and financial items afternoon, our Yesterday we results website. on posted our important several These Armstrong, will materials, to momentarily. related that releases President speak items slide our Alan the deck investor CEO, and include press including and

our to Joining is forward-looking important an find important Operating related to our various of Officer, our we've is Dunn; Also Principles, and all will materials us Generally remarks, John materials, Chandler. materials. appear integral you review This today statements. and disclaimer CFO, In in included Chief presentation Michael it. Accounting today's schedules and you non-GAAP should our presentation at our disclaimer presentation of the and Accepted reconciled are these reconciliation that back measures to

with it Alan over And I'll turn to so Armstrong. that,

Alan S. Armstrong

Thank welcome you, hear you new September this long CFO John introducing we many stranger to John as We're from and begin He whom went to to want and joined by I Magellan from our to out and a this it Williams John later in spun enjoyed call pleased as at no Williams CFO. you'll to John, to Chandler everyone. he's obviously. and John be very Magellan back morning. he welcoming actually tenure more of Williams.

certainly to we I Of and all course, contributions John is him Williams, the who's thank his Don retirement. company want for retired replacing and Don Chappel well his to from in of wish

the front we projects on-time, thanking of our revenue another and quarter bring the quarter, fee-based execution into the start I'd as by team driven within for like for to service, budgets. by As to continue growth strong project

despite large up continue by business the teams growth advantage year-to-date the EBITDA impact that keep months contracts. evidenced substantially win versus generate as September fee-based adjusted $X XXXX scale growth both to offshore project The positions And sale as our that years many it which billion of in of also with the strong consistent million over exposure the producers. nine predictable execution ended will to established we've to our year-to-date two new assets business' XXXX, hurricanes come. we EBITDA result, direct our continue Importantly, steady busy for a current and being generated our commodities. meaningful XX, is $XXX to reduced is of as driven long-term shut-in revenue and volumes We growth under transparent from of by results,

natural focus strategic deliver Our on gas continues volumes results. to

most X XXXX, in this of with Virginia the of Expansion; expansion of X, in projects Big we New the including service the Big of from Transco's going this last so $XX is Transco's have even placed our projects and of those increase fully contracted over year-to-date, revenues design year. last in a in X% though transportation capacity Trace, year. placed expected fifth Gulf million, this And year, quarter the during far in service the increased service into XX% four Expansion, fourth half a year capacity. to placed the Transco Transco being our Southside increase be incremental the Bay expansion service, The So York this Phase far projects into are Dalton and project, XX X, II Hillabee reflects

lowering profile, we've debt execution, our and strengthened our So how expenses. overhead significantly along also with our project sheet with our reducing successful pleased credit balance I'm and

cash three public and metrics and reduced the grade Williams flow while debt XXXX self-fund $X long-term need credit level hand, our attractive period corporate the and cash using by issue without slate WMB compared billion. total $X Partners in increased about down the At $XX million adjusted to by This year-to-date, has been same were million office debt investment and have when maintaining five projects fact, June In overhead the XXXX on positioned paid growth all we level, to from able Oklahoma closing operating as equity to of to reduced solid debt, realize year. debt and in retained us in reduction overhead $XXX in by balance cash cash has including of ways, this increased several City to reduced expenses billion areas over has operating in and moving coverage.

WPZ let's delivered the income billion. the of and third and XXXX, in quarter XXXX, net results GAAP at the results of the at in third $XXX was adjusted So for quarter look looking $X.X million WPZ's EBITDA first.

assets and about Northeast $XX segments, the business those current retained, increase the to million. the our the adjusted the retained – for by so G&P we've combined – Our that quarter West, Atlantic-Gulf, EBITDA we've businesses

decrease However, versus quarter our the results WPZ third shows comparison adjusted a $XX full of XXXX quarter third of in EBITDA million.

Canadian these this Harvey businesses contract associated $XXX primarily we course, this July was XXXX. results. EBITDA in Of impact West and sold that of sold course absence would the and adjusted this in million which June our from Splitter sold and driven third year, the September were our from we the and an the of by earlier, Geismar that that included in Olefins sold of restructures in Irma the increase $X area by I this XXXX year, and plant includes RGP NGL partnership EBITDA businesses of and over Petchem our Hurricanes add approximately lowered current segments million here from adjusted quarter of former were that the unfavorable contributed

those contract So restructures Niobrara the we did both Barnett as well that are as area. the in in

comparison had or on the West. out roll to the impacts but of those, about certainly those we're those of periods So of

in of the third with for Partners DCF quarter compared in million XXXX, DCF DCF for generated $XXX the quarter XXXX. to $XXX Williams of Looking third million

for quarter million been the contract the removal of to asset $XX XXXX third fourth the the by addition restructuring Mid-Continent In non-cash DCF amortizations in to Shale region. the quarter unfavorable revenue Barnett change were of that associated XXXX in big with has deferred sales, reduced for the of related the

reduction well, this changes quarter's in a call as the unfavorable mentioned with we interest in $XX offsetting last decrease million partially So expense.

X.XX at due supports in to CapEx investment the and growth year-to-date. portfolio. for coverage further coverage at retained high-return us X.XX puts came in healthy this our cash WPZ quarter The Importantly,

we we'll as last top with starting for a the adjusted third and for pointed by required decrease in plant, million take the and more Transco's invoices, impacted and the offsetting quarter increased maintenance expenses were associated something And for. pipeline are the line Atlantic-Gulf. the had Hurricanes at and a growth now The third impact here Atlantic-Gulf from integrity in of O&M so we usual. big all Irma. in the addition a both Transco's segments, expenses we've contributed short-term work out. where quarter XXXX. So $X planning remember we timing revenues say, million, our a quarter expecting These slightly as for lift $XX increased projects very expenses where had here with the concentrated incremental, in The of $XXX Harvey we third But look comparisons of here we the EBITDA competitor's year year-over-year and revenues to quarter been the each programs. of that, were due Transco, came that at would fee-based from in QX benefit good and processing to million Pascagoula quarter a had fee-based in third in were year increased gathering partially gas with I so you last of

is got have pretty for this guidance overall, certainly of because the just a go that plan it the of there, can and tied within we that A but for here So that get a that in on done, we of part during and got as up get lumpy we the service, the a year, did right we've before the third we're quarter. done quarter. we've in got in provided work year, and and third we have our ability lines of lot certainly period we expectations lot here winter lot

the turning West. to now So

third adjusted adjusted due joint down restructures. basis million $XXX of from came to EBITDA at also, the due the contract XXXX. primarily lower the by first venture Fee-based Delaware sale to million, in JV's EBITDA $X down were was For an on from quarter. quarter, revenues versus And quarter Basin

direct of the recall, a sold Basin this a O&M Gas. impacts year structural O&M JV The were and first the in quarter proud and and lot SG&A overhead we expenses, Delaware our our to partially on really in so to tight pressure continued costs interest put in of Western own continuing the West. our So costs by offset team of

Some I would good increased see West, volume sequentially. we did for you tell the news

So of XXXX. when at up XQ the volumes X% we gathered West, look versus

to we seeing like due this as way are to to the You'll back basins saw seeing things on we're starting recall mostly and we come we the Haynesville continue we strong that fourth provide in moment. the expected big see in in quarter. I'll a and see that in coming system, XQ more a we were out volume little just growth volumes there Haynesville volumes said turning the on the

the year Now Northeast same EBITDA third County million increased Northeast. higher our The the benefited year. period from quarter, proportional looking our from to Overall, $XX EBITDA compared current for JV. the adjusted last to Bradford

on up were systems. of at growth all XXXX to X.X looking a X% day, Bcf volumes XQ of Northeast operated over XXXX Our of over in a rate XQ these

of the was offset the Susquehanna both a And actually that I just partially the volumes begin the Hub we've Utica growth serves XQ note West, pleased So this driven about in the talked our dry lower system and Supply Flint bit on gathering turnaround, Most like growth. growth This volumes. overall to were Utica in that. the by year. we was with is would Hub this Utica. turnaround which Bradford Utica Supply from sequential But again, see growth just to of on by little

our from of hurricanes we in and net our So due the period the our a $X.XX up in an commodity and Northeast the the year-to-date at $XXX GAAP an EBITDA XXXX, In $XXX Adjusted million was of months so proportional still G&P. revenues, businesses from let's of $X.XX look ventures and of versus Partners EBITDA businesses, corresponding removal Williams and fee-based happened improvement from billion what at to is million results. overhead adjusted retained primarily and delivered retained spite delivered the take the year-to-date Atlantic-Gulf, from nine and $X NGL-Petchem now, West from lower increase EBITDA, income EBITDA year-to-date for increased XXXX that billion, in million same and increased look in year-to-date expenses. margins, joint

asset noisy that coverage EBITDA WPZ is of $X.X So coming our X.XX, got here solid amortization overall some the year-to-date restructuring. the very retained the of really performing. see numbers, now pleased out back we Mid-Continent Year-to-date billion but way coverage on associated sales to this the these are with as excludes on revenue And and of is DCF. $XXX the Barnett of in million businesses

the include So just to of in the on included we remind earnings but we calculation, that you out we in EBITDA that – obviously, it pull that, in DCF. earnings

facilities, on south a And early serve long-term So Transco day build in achievements on Several the dekatherms Transco's year, Dalton. now directly of let's this as we achievements our be sustainable on more and as service Atlantic our of service far portion quarter; as Alabama. of mainline started during our our placed firm to transportation some quarter, growth XXXX of continue recent two already those contributed in construction at have XXX,XXX County, would including planned points into Hillabee service X Sunrise to delivery performance the expansions existing a recent of we placed course about that Atlantic Choctaw look providing this of September of five and business. Sunrise, and

very excited to I starting we're turn you, So be Transco we're of really tell deliver to southeast much growth demand volumes as the the our occur a and can south. lot seeing in the that's see needed able on system to system. to be around And

this MMcf XXX a OVM third for XXX capacity, volumes XXX the a quarter, end here our rate And and into additional customer an day gas seeing result Bcf our are a from day exciting Haynesville. system and as service COX it also And processing know, of approximately expect MMcf with prolific to of making acreage. great from wet already addition of rapidly in relationship treating XQ new we we're the Virginia, won the the growth to In basin Southwestern is volume maximize August, now late and day Haynesville, year their working this on placed and we this teams the as opportunity growing XXX and by we in capacity. maximize the day, Southwestern day, to X.XX to dedications assets. have MMcf thrilled them fastest Also, Marcellus to provide across increased MMcf the we of the and XX% of this the many And the help really that were growth to dedicated grew growing volumes we to acreage. over of this well of Haynesville capacity. see incremental this in We've new spurt Southwestern recently of processing on agreed with We of got activity you was a a exit year acreage of West Williams very a in the value wet a processing Marcellus value acreage, dedication. October, treating XXXX the up our are

now achievements environmental the placed assessment for significant here enjoyed region. that fuel Market, to York for Connector planned another Expansion the natural coming New what's Project is oil projects. and Transco receiving Transco of new project Transco power as on in more markets. fully a The also project just South both X, affordable quarter. FERC fourth that day expansion forward New new to soon. expect our with opportunities Rivervale and EBITDA a we supplying a in contracted on at continue contribute Jersey service XXX five and look to this and replacing well, It's applying favorable demand York certificate fourth expansion was cleaner adjusted a and gas expansion Gulf And the was in New push that Bay let's MMcf October to We Transco

looking Phase Southside Again, our in be kind placing in expansion to next fifth of Our as full is bit September on here commitment time the and to service this of will quarter the of year. placed We the year, Project into That's second on excited and and slide. quarter. Virginia this X conclude coming that in project bonus we're Transco highlighted the continued service five, to growth a that see little Garden really a is well. on so of State fourth II forward some top we that in project of project

a pleased binding project Southeastern too. that We We briefly results the So Project touched season. going our open quarter. with is on were Trail of well last successful

open that strategic connection these that will However, we opportunity are pursuing growing an demand and industry with customers even provide more broader serve expansion a those of will the strategic serve season to direct low-cost centers. reserves

the additional to market strategic So make to more even from certainly and trying the we that they we're demand supplies, expansions. that heard needed utilize

bring were project. our on growth, step next higher make our have top great time sure we to this our but certainly this to keeps in system originally emerging play customers the Lake for we additional an So in the here we was With opportunity to into already most that regard Susquehanna, dividend to taking very there, this up to for of another a already and we and with previous on not even our one Washakie that in opportunity are firm, under going that the of seeing we the Wyoming, are really make opportunities to October. with course new and our expansion volumes to Wamsutter expansion very guidance first there over that old And budget XXXX. big the be with of XXXX. station does announce just demand Chain guidance horizontal expansion application an exploring This for an customer XXXX drive EBITDA key In In developed after done Lake Supply distribution part of in Sunrise our of capacity late on-time, our that area this done interesting expected where expansion in-service placing Chain growing Transco. should the as Hub this XXXX in area a out date project was is Atlantic valuable able Susquehanna service results, two big region, rate. compressor on there we're more planning area And remains financial Basin. southbound meet our actually and ahead schedule, delivering area. the We of and be growth for DCF expansion plan an the with and quarter guidance, will on other we're and real in fourth And the in volumes Northeast, vertical XXXX financial in we completed is field now that that remains for Cabot area. can completions the to

up, wrap growth and of fee-based via long-term execution be Northeast substantially our contracts, the be our long-term growth as on to systems. the steady and clear strategy I the by as in the current value commodities, direct we're realized our driven our reducing let of exposure business' So consistent After see and with being pleased and sight finally is growth. XXXX long-term emphasize to I'd both XXXX line Atlantic-Gulf steady we the clear exciting expect to years our Northeast bottlenecks we on revenue in

over finally and call that as I pleased that, And way with Chappel him you really And and and it I at want I I thank right our Williams then for turn much are work his welcome looking now for with again, to, thank well questions. Chandler Don great in we'll the John CFO. in So retirement, to very things wish area. this

Operator

comes Please question ahead. our Bernstein. And from first with go Jean Salisbury

Jean Ann Salisbury

can generally to existing details, in take reduction contract you incremental expect get with in to there that or to a on much area had much of range into deal tariffs be material your tariffs you had what Without done? you modeled. if the I was more whether speak Southwestern deal the originally The that customer morning. than Good too volume getting to

Alan S. Armstrong

similar Good question, the pricing. I on tell to that our would pricing was pretty earlier Jean. you that

area provide service we we Utica volumes. some But OVM. have we up existing did we have do that on certainly there and the think that there because incentive offer great I a for the was with offered capacity

you expect So of invested high a area. on said with in I money of place we've that higher incremental us lot would so in returns. you return there pricing and very would very just that, a Having we're course that up pleased those the provides first the tell

got So much overall, that just there, I that to we've flows think business area. we incremental result in have we that of we've initial It's capacity a use cash latent that a priced like so expected. about we it got come big the as of available the capacity off

Jean Ann Salisbury

sense. makes That

terms per it's what sort had in the at range, of Analyst So Day? Mcf similar EBITDA said the to of you

Alan S. Armstrong

Yes. No positive there what change. showed we Analyst at That impact of is Day. a

Jean Ann Salisbury

that on Trail. to you have then comment Great, sense. know probably makes the too is as your for a as about end of Southeastern volumes much well? project you're system the incremental commitments working and that go enough is maybe low But on, that on more the and in it, And I follow-up. further on can't you volume what would way the think options

Alan S. Armstrong

Yeah. that the more any we Maybe think capacity. really a do that very the more project of as precious expensive limited and return that of that say reverse to and expand rivals from just on make there's and capacity one the utilizes so we south, very economies because more capital other we just the we very gets, system attractive coming standpoint. would scale want that more it it's But on investment I it, because another kind capacity about capacity requires sure, a it way of the amount certainly have project a on that to have just we system, and

out that we getting that benefits can investment, include to so of And low-cost sure make everything we're including strategic reserves. to that would want we connections

timely pretty a but And with tell that. get great players is go number Trail that done by forward hand That in news optimistic, on we basis. if choose with work We're deals we good prepared can't so the do team. the to enough project Southeastern other working the I we're we a you and really have the to well would I'm if that. of a on is

Jean Ann Salisbury

Okay. That makes sense.

have So if that larger the balance you're need costs, to is volume you that that tariff the project you do choose working same everyone, on? would to to that higher a charge

Alan S. Armstrong

a with far about No. as complex to as It's but I go more probably little that, want than it. that's

Jean Ann Salisbury

a fair. That's me. it's No, Okay. Thanks for lot. all

Operator

next question from JPMorgan. Tonet our comes And go ahead. Please Jeremy with

Jeremy Bryan Tonet

Good morning.

Alan S. Armstrong

morning. Good

Jeremy Bryan Tonet

Don, retirement. John, good luck in welcome aboard.

John D. Chandler

Thank you.

Jeremy Bryan Tonet

with wanted color one-time a or off was just to there like in I It if And or is see an quarter anything in the the this of and wanted there you bit run start this Northeast Atlantic. if a the uptick seasonal in of is I can nature seems to O&M. to rate. this, there? this new share Any was kind

Alan S. Armstrong

me that Dunn. COO, to Michael Let turn our

Michael G. Dunn

Yeah.

landslide I of First majority a work as in run we of the doing were Northeast, for that's on need portion typical, issue, true-up out was a go that a that's tax was that something when fix. that of and But that the mitigation that some of lumpy we pretty say wouldn't so Northeast and we rate there additional as well part issue. depending work and was the to not see that obviously a

Northeast. what in the the that's drove So issues really

the earlier and underway lot and on integrity the you of our a that we peers year within these find reviews certain as Atlantic-Gulf, out specifically there, where in are once our his those that's either touched the the you get companies, as tests on to doing. research the some in entire originally a and see third of the or infrastructure, industry records covering hydro where of Alan those Transco, area in records lot records, the was to and the when some at in typically and not tested. integrity do rise that old, by And you natural work of need of quite costs your On because lot records and a customer underway like U.S. across go lot a are gas find you work work driven it the there's on every opportunity well pipes issues you're companies areas lot regulations the done. of that regard our hydro that's a that's comment to our quarter And maybe

year we're seeing so we you more on the to records to And quarter Transco It's continue well difficult system. if that extrapolate this annualized I lot as is expect our integrity on would assets. say quarter. work as and look our of certainly And would than taken see an of history, a can't next undertaking typically to you and we've really at we're that a programs just across across spend, those work of third that's as through our with that year quarters come quarter that ongoing higher the four number. we management three pretty that year go what higher for up

Jeremy Bryan Tonet

just other any as if thoughts That's Central and online more. bit base the can helpful. be mid-XXXX Penn Thanks for could you think later timing And details a provide that. And as more any you've talked Line something or in service or sooner I far wanted that kind details or on I just that comes about. little to of around that touch

Michael G. Dunn

factor and our that we Atlantic pleased concerned, will but activities infrastructure And Central for the targeting, off I pipeline construction weather completion of a now the as then on And be in Line, is compressor mechanical for and really stations. well occur targeting as compressor greenfield for far at of completion started the on start are mid-XXXX a big construction service project Penn for well completion commissioning of good compressor obviously there a mid-XXXX pipeline that work. date work we're the with the that the we'll stations. that to right you the our still which as winter far after the we've we're as tell Sunrise, and as teams We're Yeah. station, as are is so the key pipelines

would revenues see the aware, right in But underway through probably that the forecast. typically that risk-adjust coming we a you facilities date service we're now, as mid-XXXX for our So now. have for you marching are we forward right in well

Jeremy Bryan Tonet

one. hearing differentials. then there? in some commentary And potential volume we've these with of and specifically curtailment differentials one producers share Any your you're I last from on what just Thanks. the some thoughts seeing the curious given helpful. you thoughts That's Northeast been was regarding tough of could a basis

Alan S. Armstrong

Yeah. did like certainly and see often during very We degree shoulder we load. there do were some little prices depressed the curtailment of certainly local very because months, was

little load if drives the will, was think pattern and this there, volumes obviously region, the about within you circle, So mild if quarter a of will very so lot or the pressure you what basis. weather that inside put very local there third on which

back plan up I we and as people had dramatically building it think did. in to it as for hard of a to schedule, moved expecting addition to that, lot reserve when Rover be on on-time, that's and

lot of it that was turn late had you to probably capital back. a ahead too of that So investment

the production, So gas-on-gas area, circle we from the real little little bit probably had just not a in a exit market. competition, kind each moved little more without but more any a really out of

to Colombia going has gets and and projects really that to out Rover ease. gets course it's that Atlantic Sunrise, the new that ultimately finally of then the think in take into when I so And some first some see quarter, of markets,

year. And I get if here because plant we addition see local we to load next and normalized that, However, be in coming the in we always load coming are say on basis on. we just some out quarter, differential weather, the fourth would the new flatten first power will seeing the some quarter be will see that'll

painful third positive are some but certainly differential, the that things systems. those us are shut-ins forward better so volume moving all on see basis we And and is did our towards quarter pretty

Jeremy Bryan Tonet

That's all helpful. Thank very you.

Operator

next Please Goldman Durbin with question go from And comes our ahead. Ted Sachs.

Theodore Durbin

Thanks.

a Line the gross Sunrise that billion back this number good around now you Penn on you've $X.X I We've a that thought bit. gotten Central coming I First and your of question to CapEx is Atlantic think basis. as just if construction into the project? a fine-tune the Is for assumptions. wonder can

Michael G. Dunn

Yeah. any within a believe to number. our that We at pretty number. situations project construction. forecast arise still some holding keep that good that's still contingency obviously or But we remedy issues We are during

Theodore Durbin

I there of demand capacity on to starting believe, there, just the that I day then to XX-inch a in know in as your what you've And put Great. see basin? think you increase beyond the as the X.X out an to are you get you're Bcf the about service. get thoughts is this that doing and line ability But the

Michael G. Dunn

for if have You know, see a the as to at out some projects well, bit and we're demand and enough determined. other are projects. wait looking is so be think I there We of expanding little usual, it we'll basin, as do

So be other like that'll about probably if think probably be you the determined, expansion. Constitution, next projects

And kind on think would people that. wait of and see so I

also haven't another we're couple on, working we serve projects well. to any as the on of basin of get We have provided that that other volumes could announcement out that

is on we So and, and we But on expandability, the so know, first of expansions stand talk we're there I'd existing on one, working before say those about probably its get today. project that's another terms opportunity go certainly expansion as physically where the we system. built you in

Theodore Durbin

Great.

a love on I'd then And the helpful. color please more little West. that's So bit

the fourth volumes? see the where into negative margins You picking it, think overall or into call up an uptick of about, And as there? Haynesville momentum that how in unit like if do that we unit I be you're sounds we Is that positive to mentioned driver is then the going increase the and really to X% your XXXX. guess economics move main quarter. Would Haynesville

Alan S. Armstrong

unit the Great all on the West question. our business. in margins West say just against slightly probably our above Yeah. other of that average gathering is I Haynesville would

And level the to at very for attractive us growth, been so basin so positive. especially it's that's see very a it's growing,

The other your was question part of areas. other

activity Wamsutter think turnaround going to western probably that I of and that so would on a we there's areas. those the most I areas Ford, seeing Haynesville, and in expect Eagle the five sequential into Wamsutter we will turn had as of as in, growth that are we basin the that well. we in area, have probably be say that XXXX of would we see growth some impact areas on our the get lot saw around – because some particularly would the

explanation So but you give on the probably I that's think can best I about that.

quarter, what areas some start though, mentioned overall out turn and of we bottom were as around, we those that's and exactly think seeing So to last I happened.

Theodore Durbin

Great. Very at that. you. it leave helpful. I'll Thank

Alan S. Armstrong

Thank you.

Operator

Pickering, the & And Tudor, Company. go comes ahead. Colton with Holt next Bean from question Please

Colton Bean

up there? kind I the through on was morning. on X the to the of we little commencement It's guys the just check sale? Geismar with July quantify closing tough that wanted Should what contracts. to parse impact or the Good you financials. of a if the for so, look supply start bit to out can And

Alan S. Armstrong

for have do you. I that not number

I that. correct, detail think Brett little a you sale of more that on But can that call actual get started John you upon to contract would've are or asset. that there the

hurricane, choppy and NOVA because So, quarter stations is is to but volumes. providing couple overall, with ethane. on system the and of Obviously running relationship have very the of impact with But some a hurricane. a of line, and the well that on we lot going due a we're that pump did them plant bottom well our ethane serving we're

Colton Bean

it. Got

to you the Okay. resulted of side quarter-over-quarter alluded But kind really or a just outlook. step of of it's things, Piceance there up And in was just systems? a think that the uplift terms particular whether that that, more general across basin in the Niobrara, was processing XXXX-plus on I the of

Alan S. Armstrong

yeah. Well,

And saw that uplift. as Southwestern areas OVM up the volumes some mentioned, the a that good of step as pretty as during quarter. of saw added got broader, looking I well the two third named as obviously You well

Colton Bean

Okay.

of processing terms Western in those mostly the for Piceance...? two segment volumes, So

Alan S. Armstrong

Piceance. Yeah,

bit saw San We Juan in WPX a Basin up little lift well. the also as volumes

Southwest So we so pretty from increase Wyoming also We business the saw well, good which is some much saw well across Juan San facility. we the area area, positive the volumes processing was board. raising as as movement. WPX see Basin at in the Opal that one didn't Probably our a pretty in

Colton Bean

Great. All for Thanks that. right.

I think it I'll leave there.

Alan S. Armstrong

you. Thank Okay.

Operator

Gershuni go Shneur ahead. question with And comes our UBS. next from Please

Shneur Z. Gershuni

guys. morning, Good Hi.

Alan S. Armstrong

Good morning.

Shneur Z. Gershuni

wondering the realize to I increases can do of if to or a sort you about board if was returning of to haven't you with talk buybacks sort capital so – forth. But wondering are get put or and was in point just of You WMB XXXX I guidance if a can potentially so. looking was discussions leverage at shareholders? talk you out I be your respect wondering And we you're dividend considering able at gets where line to to WMB WPZ? also I even

Alan S. Armstrong

Let have Shneur. me Chandler take John that,

John D. Chandler

in quarters. given million to yes. and increase. above in that, all dividend as today towards is I or level, $XXX mean, we we'll have towards dividend. the we'll the million, look if And even generating we look in several that on those $XXX think, dividend units, around excess things, million of we'll cash forward, a we is, think the answer the a opportunities look With in revolver, our growth I past I continue or then $XXX our next as the we over that obviously yeah, in the buying I cash the table. WMB WMB projects we've down have or at future And think of WPZ are excess think guidance so the those on our buying about perhaps at co-investing WMB are existed pay I same

increases. course, we to too, and We watching haven't any changes tax dividend distance out. that carved future those We, quite expect in as about think the of until don't a of we are code happen

but of, those what kind any that I that the of don't on you control did out ruled would front, think So dividend I mentioned. we think, we've options

Shneur Z. Gershuni

small an opportunity scale? much expand on Do a Okay. to Cool. see you with quick something Pass as Overland pumps or larger guys follow-up either And in then scale question. a just

Michael G. Dunn

in production new as Wamsutter Niobrara, of both in the lot coming DJ Niobrara, area, a Wyoming that of There's volumes gathers well. on ONEOK portion course the and Yeah. both Bakken the our and the of

ethane to a them expecting area. on from have have the because an market and takeaway add that ethane market are demand NGL out pull the growing, there's to not they the ethane you full. these ethane capability, capacity of regions capacity to area that out lot NGL recovery while demand for of lines today, And expectation and of the of incremental So if

area, I Overland that of think Pass in all some capture expansion. and certainly to expansion is very to the leads well-positioned that

on on of of So yes, people activity and coming the areas. I showing a a that lot front, bit amount lot think are by of of these a out surprised going volumes that are up

Shneur Z. Gershuni

Great. appreciate Thank much. the Really you color, guys. very

Alan S. Armstrong

Thank you.

Operator

And from go the Barclays. next comes ahead. Christine Cho Please with question

Christine Cho

wet the questions. West, the of to of to everyone. clarification with exception want with start in Opal, contributed Hi, all the In just increase actually volumes? I areas, some processing the

Alan S. Armstrong

we Christine, were I Well, we think were sequentially. – talking talking earlier

Christine Cho

sequentially. Right,

Alan S. Armstrong

Yeah.

Let us provide some detail for you on Christine. that,

realize I the West. really, the the in your is West moderate exception with mentioned. just and increases of area. see we line, the up, did in of Southwest that's the we And and have the But, of pretty of beginning the think question pick at we Niobrara Northeast I quarter think looking end the the processing I dramatic Wyoming the pretty of quarter, as majority the were kind picking up. Piceance to the seen terms volume, the bottom of increase to in

Christine Cho

continue remarks, And or think producers in stabilize during to maybe should think the volumes is the in flat? increase Okay. to area, opportunities going decline to that to other we here, the mentioned compressor should it work How like that? it's going Rockies Wyoming so two just is and you with as about G&P we prepared then the on coming that with station

Alan S. Armstrong

gather, overall of we Well importantly, side, just to of narrowing as volumes be the the and well so a side; the XXXX NGL lot there going growth on certainly volumes, bit a into it both gas and, some if area, liquids we West quite you're expect condensate maybe which talking as increase there'll Wamsutter about there.

quickly I of the though the overall see up that opportunities we'll looking Ford to grow, Niobrara. pretty Piceance there limitations that. We're question Eagle we're then Haynesville in that the be are get continue broaden If growth in for growth seeing of going capacity volume continue and the Haynesville. our even we see the to and well to to West, expansion think We'll as going do you on to on top in the

a lesser the Of course, by places to probably Barnett San continued the as well. offset and, Mid-Continent Basin that decline degree, and like in is the Juan

would think I tapped next just side, you be the that's to XX% Haynesville on the impressive. growth because we're expect so volume on we is But XXXX. from capacity going growth offer I there. wouldn't picture So out I another XXXX I see overall growth very year expect would to our to mean, but

Christine Cho

available? just know came then deal, provide. background give on that there's did Was Okay. you the the together? Great. of of one a on But much more you if of can you can other? little more bit that a or approach did don't I you some give And an are could Southwestern competitive how many us how opportunities process idea like And that still

Alan S. Armstrong

acreage it. former very weren't Yeah. so a was and Southwestern a already with extensive acreage Well but that we have we already were recall Chesapeake that lot of relationship that acreage, processing lot gathering we a there of was because –

because into systems. gathered so was that arm, competitors' And Access so recall didn't processing have a gas processing and

where the year, we them that been made arrangement had what attractive the they our earlier we've reform working and that on announced the in contracts that former we relationship so there under Southwestern more And right much contracts started Access-Chesapeake on, say with would out off foot. relationship I than

We Northeastern as also successful helping area provide in them we've services well. in and Pennsylvania, excess very there capacity been to Southwestern up find that

have is we well you, of gathering dependable relationship worked serve very So serve our tell expand. relationship They and with both reliable fact hard. But I are they aligned interest. would contracts Southwestern, really on that and what have really would to to the teams some that opportunity and side had them a form off already say the the to spurred really enabled it them very I that parties'

Christine Cho

remind Can you is that. for the based contract us And last question. Pass. a nomination what on just Thanks Okay. that Overland basis? structure then just Is there?

Alan S. Armstrong

gets You terms curtailed and who mean doesn't? of who in

Christine Cho

that Right. you couldn't it it...? guys when like, is MVCs like, underpinned of up I pipeline, just some, by remember, if or level started was

Alan S. Armstrong

and both on No. original Williams discounted has It's that a FERC it. And rates ONEOK enjoy. from tariff dedications the it tariffs contract, it and has so

In it to allocation. is prior terms way establish back the capacity looks to of allocated, the periods your

and so has So the with the longest it your the capacity with the whoever's longest basically and build been most allocation. rates, allocation capacity flow in volumes

Christine Cho

it. Got you. Thank

Alan S. Armstrong

Thanks.

Operator

Juvane Capital Danilo from with Markets. Please go comes question ahead. next the BMO And

Danilo Juvane

and Thanks good morning, everyone.

a Just to been questions asked. already follow-up few has what

that correct? that really my would the Overland geographically a loop to be Pass, pumps. that need recollection on First pipeline you is of expand located. because how system It the Is pipeline was wouldn't of

Alan S. Armstrong

already. pretty Danilo. There's there's full That's correct, is It's running available. bit that very little Generally, little a right. but

Danilo Juvane

an Do a investment sense, you the have Alan, expansion? for opportunities be for what could

Alan S. Armstrong

that number pursuing of our teams a it's there. And investment out would variety we that But now. but tell that. haven't We right put put sizable there are a options haven't a there's I you, out on

Danilo Juvane

extent And that fund go self forward able still to to your the that rata with that pro growth? be you would here, would share

Alan S. Armstrong

Yes.

Danilo Juvane

with follow-up, an seem here. I I of as to Financially, Shneur to asked have capital guess question a respect allocation. And optionality question. you of Okay. that a a extension think lot

or to increase thinking respect you dividend are buybacks, guys Beyond M&A? considering with a what

Alan S. Armstrong

got just would has we opportunities, right compete I portfolio anything do with investment now of such say got high-return that. that to a we've great

but I'd And to in various the say what be up of developing quite spread heads the to got there But do see in of that the between is our areas business focused I But that and some look would for very say. happening. we is investment that terms going right Northeast of CapEx something certainly we we in ventures on bid-ask I in that we've to continue we that we're would like think to would very there. have. disciplined say have that a I some Northeast, the continue we the think I have like in partners happen a the very down is. that of us ultimately, lot that and so as And time, joint at that's value consolidation

in terms certainly motivated growing side, and serve the in required the the You've sellers capital lot of particularly in got on volumes a of value investment to of our area. consolidation reduction

Danilo Juvane

are much. so Thank my Those you questions.

Alan S. Armstrong

Thank you, Danilo.

Operator

ahead. next question Genco Citi. Eric go Please with from the comes And

Eric C. Genco

Good Hey. morning.

as Just a clarification.

I you yourself now? and cash, you You buybacks right such, continuing your see enough know beyond comments or for foresee access stretch XXXX of case and that's is for during a the much Is the about the generating to into that XXXX. needing you mentioned talk and equity something that don't too been markets. that you're

Eric C. Genco

we that is a long and next I that. But No, need – don't our years. several see we've previously for you, range for the exactly planning, can tell and said looking at

capacity So while growth maintaining of with debt both retained sustainable we think mix. we've got a combination that's strong the rate capital very and some credit

the So have feeling front in continuing the very that capitalization about to of fund good and we growth now us. right

Eric C. Genco

Great. slides capital and I up – the the – Day may Analyst had project And in if Northeast remainder I want then year, of but think in about the not growth start enhancement a we've see guess annual spending I you potential detail, big recognize Northeast. of another give that's $XXX in got much a terms supply basically the you talked to of CapEx Atlantic of we too million next of Sunrise, some about and may would

XXXX? there that Is Southwestern the a million in maybe something how With looks far fall us think? year can And the does that that that out? into you as in agreement with how going $XXX sense or range do is Energy, dip CapEx you give next as a

Michael G. Dunn

of in we're steady big of to will position no both Day, We're those not opportunities as a as of that. maintaining tell so and capital opportunities, high be and very we're that you I future, as surprises there. best nice the very very returns a the to she result in goes kind for opportunities allocating Northeast, pretty guidance provided line I what on of with in be tell in the you well we're what terms to But providing growth Analyst that. the opportunities as continued continue seeing we in would at just terms

we're And so opportunities, but in. whole we're we disciplined do what being lot pretty about of have investing a

Eric C. Genco

point year impact how your but could do where is And the timeline point, theoretical tax reform we you can some you're tax maybe you to see for guess you might guess from about say and at there how to question, reform timeline, this thinking and a some point and At on they a of Washington necessarily of then tax reach clarification decisions. lastly, that wait mentioned next action where wait and out how come Washington are terms an sort okay, reform? just about in I I we want full in want and some on take of don't a with we options or say you

John D. Chandler

No.

don't long we've tax amount using cases, WMB. at cash all we've of we'll window view a fairly today a and that still, in taxes code capital that that we got, think I period have spend the got

a of long I this we So got that kind think can period see wait unfold. we've to

answers that not So motivated on hopefully that quickly front. do we're anything to –

Eric C. Genco

Okay. All right. Thank you.

Alan S. Armstrong

Thanks.

Operator

with the Please Tuohy And ahead. question from go [Craig comes Shere] Craig Brothers. next Shere (sic)

Alan S. Armstrong

Good morning, Craig.

Craig K. Shere

decade? disclosed horizon about you've is number through of a incremental projects Are out, still growth and talked say, times in saying opportunities all kind kind EBITDA already you on Analyst pending the Day. the total what's out Alan, and in the line of aggregates of X of with what multiple with the of there the end on

Alan S. Armstrong

strong to these we in can't very be we is that where that advantages. Yes. Northeast to because as regions we about would the I'm to range, I get Transco, to forget in those that capital the continuing the had high in invest talked very opportunities. the incremental point always return well say we've out But and the quick about on returns case have competitive

all I that don't changing So now. really right see at

Craig K. Shere

the of potential West and system Great. size Wamsutter you And timing expansion? additional segment on can comment

Alan S. Armstrong

million. think say I Yeah. right was we I was around did expansion it relatively that Chain small; Lake would the $XX

And of that big, are out and the beginning so so getting some to plan there tell we're you out appetites pretty watching with Their are bigger plans alternatives in and getting the area. the the players would for I out there there. closely very producers we're

Wamsutter large think I already But probably we there's continued of at expand can lot processing handling remember, larger very the but we So a also that size a latent that, capacity our we do lot facility. a going of that condensate plant. investments as and business be to have handle there have of

the in Northeast complex. where like in these processing the have kind latent we've enjoying Springs at returns, the higher same Northeast of incremental Echo thing capacity that just sitting because we're got So we there our

Craig K. Shere

to asked all know take updates of I you kind there? steps FERC on Any proactive some Constitution. the

Alan S. Armstrong

Chad our some up the by federal productive ball to on has continuing work Zamarin, and has push efforts agencies, been team. very the who forward there great heading with had that. our Continued meetings

would the put fight I to stay pure that It's by as fight we're to hard having encouraged some upside to a still that have commentary coming our But long to tuned. of just got when so you're we're but battle. say as plan, And going of win that a to state there. a relatively we've state out

fight of we've got. this and we're I left plenty think well-positioned So dog in for what

a will We fight have suspect. I

Craig K. Shere

some of to are timing have of steps terms substantive could by we unfold, kind In of thinking you how quarter see first these that more detail?

Alan S. Armstrong

realistic not of kind the a to step that's think if I know there Yes, timing anyway. before next

Craig K. Shere

of system from the to extremely your across of Can speak But to propane exposures? in in stronger pricing impact much to we're and you Can recognizing your here. those question. just of the word recovery kick Great. quarter fourth you impacts nominal And system? the commodity last there's the speak hearing ethane across direct been starting

Alan S. Armstrong

Sure.

little I first bit would the hedges our pretty quarter, do On into here heavies. and place the fourth the propane got of pricing, that in propanes some going some say we quarter, attractive a and we've for have

that. coming be piece that our small as you just all on of it's So I to pretty such not think But relatively big. know, gotten good we've that's through got margins a overall business,

I front, are think But constrained about be earlier, pipelines On not back I day behind XX,XXX a Overland we the like ethane Pass. barrels that we unrecovered. is is some of as that have recovering that could that mentioned

in through. Some of Gulf it see however, not, Coast, is could we some the pull and so

think margin a we see we build margin to like In be recovery as and ethane the some things ethane Pass it's on pull to to barrels. it think fact could to will we Overland in ethane as then capacity for high are really and get see, those pull drive in high the I going enough I have which seeing to needs get but until just short,

suspect to realize So I going ethane on. little market for up it a that's for pay going to bit to to comes really take before have that it's the

grab more to to it fro So as capacity. productive or some tries the we'd expect in and market more capacity ethane

in So got some propanes range would spike dollar of of exposure that will mid-XX we've but that quarter some it hedges the you've fourth on and that the on up there. dampen in say I kind here to propane seen here of

Craig K. Shere

subject of the wet a of the in final Marcellus Analyst course that. follow-on just a And customers to standpoint, discussed feed the interest Northeast, to More debottlenecking process in that could to from see opportunity are Utica Great. from at fundamentally producer and you that kind long-term volumetric gas Day? very starting areas increasing

Alan S. Armstrong

Yes.

wet resource we're of other a or one seen any seen pull continue that the in the the we've a order is most because on ago, kind back the Utica the right can the bit terrific little the is areas just on that say course, economics seeing And such would to into while Marcellus. is push area Utica, the Utica in mentioned Marcellus wet right the probably bit But you say that. just going I back it so because that one dry little opportunities. to now. see pull a focused the we're of Marcellus, think lot wet area just capacity Marcellus and that high whip the seeing of Northeast, of NGL we've we're is now a are a to the I rich right that I up the margins relative dry that's area of would grab dry the now

Craig K. Shere

color. Great. Appreciate the

Alan S. Armstrong

Thank you.

Operator

question from Please ahead. Lui next our Sharon And comes go Fargo. Wells with

Sharon Lui

Good Hi. morning.

using infrastructure frac capacity to volumes you're on do guess, ramp? sounds that there that Just to the a to a It contract. existing now. as I Southwestern think contract add, follow-up I is meet But processing meet additional like you or potential contract right guess

Alan S. Armstrong

that have Dunn take going Michael I'm Sharon. one,

Michael G. Dunn

to a first will handle unit our filled one Good will and a sometime there facility, morning. was that currently that while next capacity so one and a we latent of that we well TXP do capacity. year have Grove be the be have in back, built Oak under portion TXP-X one At construction as think second that we

for CapEx already built, portion portion some would so there but So is effort. think already certainly expenditures that on that that but spent incremental expect processing year. There's to Grove of been I the there, see with in contributed of a okay see was now in regard, there that so some some we're our certainly some would that's capacity capacity still expansion Oak frac to I next capital at

Sharon Lui

is TXP-X, another that And Okay. MMcf? XXX

Michael G. Dunn

Volume? Yes.

Sharon Lui

And just to a up Okay. for looks CapEx significantly like ramped sequentially. pretty the that tied specific there project it Great. spending? Northeast's quarter, Was

Michael G. Dunn

Yeah. the to That's had year. year. we the Northeast with Genesis next But expansion the majority primarily we're Pennsylvania for regard coming for the earlier Southwestern agreement this some support Cabot work to it up in of online doing of is in their production

as expect this that fourth would up we the well. quarter obviously in ramps year So that

as to construction of that there couple being pipeline compressor We've up as work. some that systems finishing well interconnects a and got under stations Just built support expansion. pipeline

Sharon Lui

you. Great. Thank Okay.

Alan S. Armstrong

Thanks, Sharon.

Operator

next Please go And comes Wolfe with Research. Alex question our from ahead. Kania

Alex S. Kania

morning. bit I question kind some more if a this guess Hi. little wondering West on impairment a you to that discussion was is for could to is on the give related regard that? the I in of assets XX-Q. asset potential guess just I Good sale the There of color some and in segment.

Alan S. Armstrong

take you would John, that one?

John D. Chandler

to billion I we'd on those and of a re-evaluate made contemplate materially course I was Mid-Con value comment that has changed the a were environment, curves but were fair assets. different anything actually back think value assets. the written very some those Those materially We and of don't to that's say the should were One quarter-to-quarter for changed in when in pricing I now. book assets. in today. our selling $X XXXX guess Access timeframe that we assets some at it of assets type the do not want write-down, written again the market us right up I up, those write-down that Sure. at approached acquired look make XXXX value estimate Got of assets

of the actually, and our the on the they view carried insignificantly. write value estimates undiscounted changed assets which What down assets quarter these have books, fair our during is cash So below overall flows, bit value our carrying us to for for has changed made that very little fell a them fair value.

So make they $X want of quarter clear. don't assets to by change the the view We changed a that relative to just for it I billion. have

Alex S. Kania

Okay.

John D. Chandler

end (XX:XX:XX) the to just flow. below fall during the At book that cash value happen quarter. It's

Alex S. Kania

Great. That makes sense. Thanks.

John D. Chandler

you. Thank

Operator

at to questions over turn back time. to more program no have we And like I this Alan. the would

Alan S. Armstrong

right now, for quarter Thanks saw Really front fourth great to in see growth growth as see projects a been that quarter are the everybody forward much. us strong that well we very as here the excited continue the Thank opportunities kind to businesses contribute. look very to continue and top retained we Okay. of we've excited online putting questions. you and the our this from line to about of

joining and a good day. So for have us thanks

Operator

you conclude your does participation. Thank program. for This today's

You at anytime. may disconnect

The Williams Companies, Inc. (WMB) 2 Nov 172017 Q3 Earnings call transcript