WMB - Earnings call transcript Q1 2019 | 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 The Williams Companies First Quarter 2019 Earnings 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 Porter

David. Thanks thank interest and Williams the for Companies. you morning in your The Good released release speak earnings that afternoon our Yesterday we press and Alan our CEO, and Armstrong momentarily. will to President presentation, the

John earnings Chad format is quarterly today clear earnings refined adopted release President Officer, our Senior Chief Joining for also and We've we've Chandler; Strategic mentioned a us release our Development, our and Corporate our our documents. this I've format Micheal call. materials Operating the package press Dunn; and CFO, Zamarin. stand-alone previous of into we've Vice that earnings the integrated analyst

So we disclaimer and of integral will two. Also you find reconciliations than remarks now an measures our to non-GAAP important accounting we've all materials is you review rather important and appear should of schedules in to at basically presentation This one principles. there disclaimer our presentation our generally are statements. included materials back document reconciled In today's expected presentation related These materials. have to that it. forward-looking the

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

Alan Armstrong

our Thanks the quarter Great. good thank discuss and for financial us and this areas we as performance morning joining and today. focus key morning, investor you John, first

to As remarks, to allow took format time stay John the Q&A. in a going prepared said for we and pretty focused we're fresh at look our brief and

and strong presentation from On you look steady only financial team. and first transactions, not year-over-year or very fee-based execution in flow cash exposure, clear So let's predictability reflect Slide And the of a are X% durability revenues contracted for a move provided streams. XXXX XX% performance little predictable quarter direct the and dependent versus operational fee-based direct results right we E&C allowing our view take differentials commodity into performance the our to and and on continued commodity the X, gross buy-sell project margins. in commodity these margin our results first -- at And our reflects XXXX continued prep fact quarter see in reflect basis results. our

improvement cash the So it increased in quarter with EBITDA reduction the bottom significant flow expenditures the from taking the adjusted and year. about prior the free top A sales. increased introduced see year-over-year say times for of which adjusting where EPS summary, slides, nice when XX% increased can capital also dividend for the adjusted that you strong and flow the X% cash then demonstrating versus we up this our the on we've XX% lastly the compared last in of really were see more year, much at X% from XX% without and here, here performance our on per asset share very on coverage see next of couple versus about X% slide. DCF X.X DCF to you also And operations you grew also about

X really since unpacking, impact end coming quarter's sale And various and let's turn we post have on our quarter review end. requires flow The significant leverage of nice on story earning cash significant Slide improvement we asset of the and quarter sales. the the to proceeds metrics So asset some the now where leverage finished our metrics. despite in

debt-to-adjusted times. the statement, X.XX of the get to XXXX March side of the starting you on table, EBITDA XX, you the directly left-hand financial from if So start with value

of at OVM, done CPPIB, we in with $XXX proceeds UEOM with where the which the However latter's with we we'll purchase there. funded remaining right JV that end UEOM, the the refunded QX. the metric closing XX% the includes But about at our interest while revolver reserved million partially of of that be

from of we CPPIB leverage of the transaction, to cash from in times. million for million $XXX leverage metric of along $XXX to that And Jackalope will approximately closing then the where falls out account $XXX just if we closing Gas adjust proceeds at JV, the the furthermore, to the you at Crestwood, additional falls the you If plan X.XX the million receive the over metric have we Gathering JV with X.X. now received the receive

year-over-year So our discuss discuss XX%, on if drivers but just detail leverage you EBITDA EBITDA over year-over-year the I'll X let's sales. X% basis for business adjusted transactions and to more strategic goals increased On for main move Slide growth. now the later, in a adjust asset or adjusted to

comparability driven JV you accounting see Four the Gulf $XX including can assets, and changes. adjusted sales asset Corners the And a EBITDA pipeline Brazos from of the adjustment, Coast so slide by the this purity million on sale

primarily financial growth Now the continuing of moving expansion by have led to the at adjusted Connector, projects look that business, the new line on the basis revenue from by increase over driven Transco. an including over continued service with very regular EBITDA, going into Sunrise Atlantic projects increase XX% performance and top from Atlantic-Gulf on impressive been in driven a Atlantic-Gulf really growth Gulf

high-single-digit projects. Northeast area XX% by adjusted was driven start OVM gathering increases This year-over-year see gathering Next we Marcellus Supply and EBITDA. fees nice and and also Northeast growth in year rates by higher the were saw volumes very which Susquehanna GMP. the so XX% in South at about led to areas, the also the but in up the grew we a increase associated Bradford for the with GMP overall Hub area looking growth a Utica Volume higher a just expansion XX%, over double-digit and

a temporary Wyoming which a in West the production asset after sales winter Finally, surge for decline the EBITDA year-over-year in our and by the of of to key about share described that showing prices in And gas primarily of is due one earlier. Wamsutter, driven we the bit adjusting margins NGL Opal, affecting weather have lower at natural field. severe X% effects customers adjusted is decrease

off in the was to area available upstream able the keep was our in production culprit and ready team operations our the facilities area. Importantly freezing but

of EBITDA look fourth let's the the for adjusted X. where last X% quarter Slide we sequential increase you of A saw EBITDA first a on growth about as can XXXX, versus at the XXXX in here modest see increase quarter since quarter. Next,

Illinois. Sable One course quarter were were it's Atlantic-Gulf to and lower maintenance. interest an Sable in is EBITDA revenue cost and to about lower up lower -- pretty by note gathering more Utica O&M million And fourth outlook is as which covering that and weighted in recall by by Transco days XXXX, discussed were to of the complex from in over lower offset the and wet revenues Connector, moment. we midstream for Sable where the or driven in processing was expenses Gulf well detail The related XXXX by a the past, Aux second O&M in a Gulfstar interest Northeast that there in Aux caused increased to important we'll G&P Aux $XX more JV due Racer flat and on-off for Northeast half is the Northeast Blue two our was quarter, EBITDA of itself but fourth toward volumes higher fewer the impact. growth the million about Of be in X% an $XX quarter,

were were quite XXXX. XQ stable compared NGL sequentially is bit to O&M the West a weaker. pretty in Revenues margins of flat relatively and Finally unit per

in by favorable losses line per unfavorable lower we our in evaluation recall, NGL by sequential unit the were marketing the margins our than a as on impacted more basis, change However same margins. marketing had you fill fourth were quarter those And XXXX may offset NGL margins inventory.

up and as So move fill up prices something that down. down, the line and evaluation swings is

in first again also Lastly we which the mentioned quarter did due of XXXX, weather the flat from down XQ in Wamsutter double-digit were Overall volumes the see some growth Haynesville. nice earlier. volumes severe were in in the from the to weathers, West sequential

Haynesville, growth but be of due overall. set we the the there. So offset of in pretty the In primarily X% XXXX adjusted volume before, had more our growth. said EBITDA within of XQ it's by toward to as nice EBITDA of generally long was the the shape some we off well we've business overall see Haynesville, increase half And the year, the plan second decline summary, growth Northeast weighted in

X, we remainder remarks some views the So around the of focused our prepared Slide most where the frequently topics discussed let's we'll spend to with of on move investors. our

status seen and back on The sale Northeast financial five first in our the downward since be has sale Four JV margins. which issued our update. discussing customers Coast Basin a significant purity We've most portfolio recently lot and to of we've of macro the year A originally business, perspective our our pressure Gulf item about guidance of transactions important ago. business. From investment a is pull NGL our producer capital we mentioned changed we'll also our transaction, DJ the XXXX seen Niobrara shift had Corners a that including optimization we've

had moving EBITDA of guidance year. this DCF parts dividend out maintaining time last for these guidance lots we our But adjusted pleased and ratio. ranges unforecasted despite confirm to So changes, that I'm coverage we since our are laid

lower our We efforts. year's adjusted impairment EPS to to by lower expense, expected guidance at due midpoint are last the caused and primarily some for actually raising Bernard expenses deleveraging depreciation $X.XX to interest thanks

investors We've between about look Appendix and in share the DCF per in had you can so development. that DCF visibility bridge the metric you impact that and a XX, the very a of share If significant discussions charges added more our see lots given also we've Slide EPS. EPS, with we've at provided non-cash per

like front, Pipeline. Northeast discuss of last targeting business, region. with On And to the seen moment, bit lowering are the we projects in of a changes respond growth CapEx as producer new in associated to the the the year Bluestem in our capital expenditures quite the a we'll since activity deleveraging G&P further and efforts we've

in drilling don't So anything front sure in doing job a of and are nice out bring our making on operation. just of the that time that really teams capital we get

operating really here, a in nice work agile our by teams there. that motive very constantly are So

growth lower the Niobrara expect dividends, we consider need expenditure from $X.X you The when favorable times. X.X to Northeast reduction our release. we effect new to XXXX effects this with million expenditure excess midpoint has revising transactions. in on capital in with now cash the EBITDA, cash our our that in operating our transactions capital new contributions XXXX be billion, received debt-to-adjusted proceeds you proceeds to forecast when year-end Northeast factor from with our provided portfolio under $XXX the transactions of the which JV fund up and growth our along book partners along had and JV to total our net with And CapEx optimization a after flows all we expect And addition these capital. a billion take that midpoint the stated $XXX consolidated you down of another JV, quarter when million year changes $X.X So was these guidance we're earnings fourth of our from from

still Looking adjusted beyond to over XXXX, growth annual long-term. X% EBITDA the are expecting we X%

move let's the topic on is to on So growth. an which Northeast next the update

XX% recall volumes gathering probably East continue forecasted area for more Northeast Mariner delays MVP with basis. we producers dampened area on the at two call, growth cycles. you'll work realized then, last price since XXXX. for pipeline As forecasting have third on introduce like takeaway customers major And CAGR to a Since for we expectations the on the fall gas quarter in outages delays during and in our through our earnings producer forecasted XXXX

in growth expecting EBITDA decline, to for pleased that are on additional increasingly Cabin gathered growth But still of Southwestern. again So this investments will a rate great is like rate despite price see we impacts this year Encino slightly and this XX% on their higher backs performers to of I'm XXXX. see on of new Most acreage. Utic and the a say volumes Northeast by the we the

that customers weakening see applause Right producers XXXX forecasted and are planning point with of say at obviously. of pricing. the directly area their XXXX the wet capital in that pulled out forecast. and it the think there, local around have Marcellus of recent prices very prices this is sensitive of as our and the tuning the long-term very a forecasted has on the to to therefore take is now, forecasted that and we shifting the note done change drilling that lot agile think cash of their to commodity producer some approach, for of would for sustainability important and And to the in discipline. we've forecast measured pressure some where free pricing. seen NGL embedded customers CapEx, producer I areas, in this And producer flows fewer good and wise is prices With capital We we I focused

is now converted and of that producer volumes. grow power new from Over generation, the exports after long-term we to drive industrial will heavy several loads Demand LNG years ultimately believe growth capital second demand continuing to And a the come. that have are supplies for decades Permian seeing the investment the world sustainable and convinced has further U.S. supplies construction. we wave as low gas gas

don't demand, we keep fast have the from we continuous result evident here enough discipline And with coupled supplies by to two-thirds downturn grow. generated the continues gas that sustainable have in needed the have pricing drilling a the are up it to and simply of Permian gas get will giving a believe being supplies out As community. to is price seen has gas, we help can't current the Permian natural have our demand directed while growth build that still the the in the become to U.S. in producer with build only of infrastructure that demand, the we a resources signal

the gathering fundamentals our and volumes our the XX% the above with capital those still would detailed are G&P our efficiently our as to our our business, and through relate Though capital gathering closely reserves. expected producers front, efficiently against while is sustainable amount long-term forecast to CAGR reduce more that we transparent to from CAGR allowing out of near-term continue producers, to growth or to the volume even they important our more support EBITDA see with basin. us us to our XX% a through allow aligned JV this same programs While be using applied we I'm rate this at capital And to CapEx very new XXXX. say of from and in this want to to with forecast can XX% be growth encouraged about same our to are producible steady placed reduced generate pleased capital current period. growth producers, continue than Northeast impressive do synergies to the place on of ever Also will EBITDA combined being come growth growth level

be beneficial experiencing portfolio are strong capable priced wasn't area much we've to of same an rest network, the our very and key with have let's the portfolio in get business today. transaction benefits who another in cash some in excellent an UEOM personnel with update at the we Consolidating our allowed efforts. execution Southwestern year on exiting JV we that With the the to deleveraging Cabot accomplished efforts, up, for by Niobrara multiple transaction CPPIB our this and this that Company. deleveraging mutually optimization partner connected The OVM and relationship Next strategically systems transaction Northeast excited customers on was aligning the and transactions. bringing has Encino. mid-teens for controls most while us accelerate with to and multiples, region, immediate other of one the realized optimization and the area, important deleveraging strategic up Encino us forming long-term also owns like attracted the

changes to the we of target no X.X, while of So which leverage growth by X% end target the targets over period. maintaining annual XXXX, long-term to this to X% our hit

So the let's Transco update to X rate move on start case. on with and Slide an

higher an August rates effect previously our annual new As filing. those XXXX discussed, on And filed we rate X. March increase for in we into went

settlement payments subject pending higher but negotiations. to the we're increase as in won't see So reserving that customers the you currently refund, we're results cash our receiving from reflected our ongoing

Obviously settlement confidential $X.X continue so extend not have opportunities. have any we of federal financial permitting can't in on we've environmental case into I Order let's for the negotiations of in infrastructure continued that On the consistent negotiations in and supports reflected any status parties -- of that of case May. the EPA's you we'll had to projects. stand Presidential in months administration's to share at for ensuring that might present from major with settlement energy we EPA's appeared hopeful to those time. growth our sustainable year. guidance. are complex issues are the regarding certification we settlement the billion include emissions quality coordination, projects. this reviews remain strong investment Lots in the reached counter and conferences foster litigation our on next can And appreciative lines, another as And of be the and application for Along at process, in the these We're recently the Transco's to and long recent sorry need regulation. the touch I without actually impressed that and as the the effects the from days the projects efforts the the front efforts were support also settlement of Executive here. could executive rate the we approach continue and reduction detail rate have we where build order The requirements transparency are ultimately of upside the out the two process settlement progress level for there upside questions water and can Williams predictability would many very that and of tell like news likely a to the

We job shifts development on major fuels we fossil However, those. and out, and deal a matter be these basis policy challenges daily with challenged by executive the infrastructure do great of know clean. likely project navigating order is teams consistently in of any that permitting no coming oneness will how our

continue Rivervale was the like demonstrating Northeast their record, teams Transco's Gateway to large so clean, affordable and Sunrise. serve recently that in the press and continue track network projects And currently greenhouse Energy allow way Regional announced safe the including existing and to on we to really recently expansion right the these Jersey season XX-plus for Supply key best that open quality of emissions. that lower vast importance our to continue X regions Enhancement advance have to most the from we presidential to way development, they scale Transco binding indication needed the May by demonstrated the we with gas execution gas extended these markets end, have orders, project, Access critical our as was impressed our and of York to to And the for garnered. population by project on just the our the not approvals we shippers time the bring X our been projects and but to project, centers, Access Energy get interconnection beyond binding Regional interest, South of April additional New Northeast natural And interests most Atlantic expansion has New they give are with for the commitments. reliable to

this are took to And with decision new welcome to development sale and year seems area. February the investment authority the more targeting be next gas of in local counties occurring final developments the approach ongoing the well, with the third county to and We to a industry and area. saw the touch continue oil to been fall and as monitor regulations Colorado executive up, with the leadership Ultimately the of what legislation we balanced on oil proposition in our developed. municipalities will are new than and action as last of gas growth we Since laws. has wealth We pre-filing shift state quarter friendly majority vast I'll activity legislative a and went in in Basin the follow. there DJ address much

working the of now teams up backlog a with currently wells. our by hard keep growth, supported fact permitted right In are to long

Fort to nicely started February, $XXX of with III NGL started new our safely. area is very a great should this we're infrastructure. develop I signed million third along very we right day in April, And continuing cubic running cryo progressing up early in Keenesburg year. up online of up getting gas And cryo our where teams that construction train and the reliably marketing we and by in jobs During that the Lupton another pact quarter feet team is new rights, be on same

but very look So to including services demand and and strong the continued now we NGL marketing in really for pleased area, reliable right with support forward businesses the gathering for our increase pipeline processing and next and Bluestem And growth the Mexico. Gulf that, projects of a we Convoy. at on pivoting steady least, have not the upgrades deep associated the seen in Last deepwater water.

last utilizing close that a additions to once and going sight likely This would proximity assets is for, thrilled large tremendous and projects discoveries and us purchase we that assets. base for. we For are Pipeline is on and to existing processing see this give that and free existing major year area on of activity and with assets purchase by Pipeline competitive contributions an including complex, several new Bay new ours. to of cycle Actually Mobile substantial FIDs of advantages like are incremental in XXXX, potential and see gets did we'll existing acreage made in our our EBITDA beyond. dedications that our paid rebound XXXX flows those infrastructure first our to to in cash oil where line our we that the is being focused business from keeping lead dramatic Northwest existing low year Northwest later on Northwest our This begins get year paid to costs the the have times from projects

our session. things the are side, as Q&A brief keep be update we'll So that our able But the today. great first promised natural let's is on performance and transactional I on accelerating quarter to try you progress rate to continue deleveraging. the discussion to pleased solid that, With of in introductory we

Operator

you. of We Morgan. Jeremy ahead. Tonet J.P. from question our take Please go now will first Thank Instructions] [Operator

Jeremy Tonet

on that if that detail I maybe on Wanted area? next to and to the little up and start-off CapEx bit also specific at you was a kind how several producer more cadence that years, volume conversations based some lightened kind growth there Has progressing with thoughts provide this of you the Maybe the can Northeast G&P over talking with all? of you're the wondering about. see

Alan Armstrong

terms of just would speak we Yes, and here I a of actually line turned being cadence right month. last activity, in being as now the of got a pad we've in in the lot say wells now lot right

So the both a the over place Northeast Southwest. in the all it's lot and happening now, right there out

kind And so team Chesapeake have say that, I the from what's of over and we so and are and Encino the of going closely taking at has that on same development the in together about them. integrated would they've Utica of with that really have the just to working and now kind growth there ability excited area and area, work transition Cabot operations our to we to with with that them approach development both really there Encino Southwestern, team pulled

Cabot kind kind the say there, I way would development of the of intending to with terms certainly, of In cadence lead just with XX% growth.

of big low we're our I the hasn't so of further or like in of reserves just been in the Cabot, by anything starting continued performance Northeast with areas spread support I gathering to to there some steady interested expansions they to of would have there. in the in takeaway kind Northeast out area, other continued that well course we're our on would see the as and other systems and than really continues, area. say Bradford But capacity the PA of given the the expansion very reserves And invest have additional they And cost the out in area.

that, lot The predictable were areas tell and areas in steady. the price would more that now down, in have both own realized the west out the is NGLs the and East East Mariner sharp -- hoping I wet more X. gas of their on expanded driven you for say I the up Utica a capacity pretty I So course of volatility are I And prices mentioned wet. -- and associated with by ups very Marcellus is Northeast, Mariner in of think of decline reactive price that is the earlier, downs and little like and perhaps things would terms so

pushed of well. to So I that as has with would pricing has predict. takeaway bit difficult forecast course on gas been say the And NGL MVP particularly situation little a the the been back

things living I I those into we themselves. their within and get as about those So producers those their think things cash cash think would very responsive we I will forecasted themselves resolve in. be flows say XXXX, get will flows. we very and But are resolve seeing Obviously strict as

Of prices. course But I to of forecast what can to them that's that signals there. think in we requires look terms

trim back, drilled pretty Our be ways to a Southwest have Utica and to we're the But PA continues outflow capital. finding capital new lot the for both area, of robust really that in and come on our some just redemption that pullback comes what you production capital in here capital, time, in our we on see and that's and so you as the see requested of in guidance. a

Jeremy Tonet

you as a far And might more combination just far there, to provide little as be detail efficiency those two that. some the as of the synergies turning helpful. capital as bringing able for UEO-OMV see, Thanks wondering together if assets That's to you bit improvements.

Alan Armstrong

reeling on It's two Great Yes. fronts. question.

continue operate fractionator. we're that being Moundsville First pipeline running simple to enjoy now is investments, some the its been fractionator be front has right maximum we're we there, facility, required that the Harrison capacity expand liquids we those of there to so sitting have to the was new put on against to it. front, able and our going all, there, that over building liquids had through to to up to that going and And the very

the over fractionator. liquids taking be exists And Kensington at excess the that capacity excess so, those big capacity, we'll to

better fractionation there capacity And so side, they of and were Kensington latent sitting markets at on there a area. the lot the the

growth looking at to take for shift be side, enjoys. to take to the investment required with and there us complex as UEO capacity processing quickly of capital And we there focus at side of capacity the continues our at if simple over the looking more we'll move plan, our UEOM So are for advantage any to to the growth And capital effectively Moundsville, that allows ways ways starting excess so volumes that's OVM. and fractionation out we're up also that on constraints well. on run reduce

kind us. of a out obviously consolidation there. beneficial that those able are take of have plan relates being would issues, to that's But and So overhead is to consolidation, lot some the to there obvious it of been capital our really in management otherwise just has of

Jeremy Tonet

helpful. seems And if last by one could really it NESE lower COX displacing Thanks. could, That's really dirtier emissions I fuels. like

path point you're been at this When in that how wondering to as permits in resonating there? do far that as there? looking messaging Just construction -- operate is start you forward of communities the kind when the could see

Micheal Dunn

think up the a of think here. part stages absolutely currently emissions New we of of converted in gas gets late emissions, puzzle there. we're metropolitan the opportunity It's to COX oil. is the currently to We the and in And The is city the dramatic that, to and regard key Jersey to and natural a used it profile reduce to being key fuel York New gets approved convert. continuing and process permitting If going NESE be in built. will very it's NESE piece emissions that especially

the York now. deadline day a Jersey was the We FERC project New Certification XXX mid-May. Certification And then certificate mid-June. XXX in deadline any for And in is expect receive New to that

those rapid of in several come expect here the would we to to So permits forefront fashion.

Operator

ahead. question will take We UBS. from Shneur our next Please of Gershuni now go

Shneur Gershuni

on bit. the little to a follow up Northeast questions sort Just

when into change into take roll or your Williams and transaction you just benefit this XXXX year, Your Is for the beyond UEO kind done of beyond? does able to that rate this the you've growth average efficiency talked being about first weighted CapEx consolidation XXXX? And down of of rather. sort CapEx and UEO materially what foremost

Alan Armstrong

And change systems gathering because the volumes would first of that on gathering been on facilities not we're so that, feed already remember fees it just in UEOs, to drilling any operating the already really fractionation volume change UEO, that. their processing all downstream doesn't the of those that so primarily is into have there, gathering

So that's really no change from that.

change no from that's So really that.

to balance about between liquid. take savings actually savings a would being the two of the capital question big forward-looking and the as are we of the say capital the able complexes forward, I processing advantage and On now chunk synergies going

the is of So more of capital lot that really change won't actually even capital -- a much. lot gathering the

really If would expansions into, to that volumes into it's have think would fractionation areas --. able be and processing about, that I you not think the capital, it shift on put will that

Shneur Gershuni

Great color.

follow-up bigger a question. another kind picture Just of

about needed You XX% assume talked be in what prepared remarks talk of flows? long-term about about that generated EBITDA. would we from sort be at growth would you least X% to internally your And type of to capital program support cash rate? rate of could funded kind for growth a of Can longer-term it X%

Alan Armstrong

terms And with maybe take of John have I'll we Chandler where in Yes. that that. would go

we As X% we've returns billion, moderated to enjoying, said that rate. $X.X been than X% generates more $X assuming the little a billion to growth

let I'll synergies that X%. and our $X and on billion we the grow obviously funding. as to improves, And takes JVs. these that high-grade can billion But so what like investments we that bring talk And doing X% think is in John we're to about $X.X generally it

John Chandler

I think that's fair.

in tight we And look new And excess to going that today, of the cash look capital. fund able as a and forward. expansion use our entirely $X.X leverage kind maintain lower exports, completely of to that using flow. but this growth we through -- growth. and in as our obviously forecast, EBITDA continue that billion, As capital our with the able we're forward you our number, projections fund the some leverage we're EBITDA to to that future And ratio

Shneur Gershuni

there you target, your once business hit effectively consider -- will then your also? repurchase share to with leverage room while So be

John Chandler

that talk to is of still quite is work us there. a for we had once there X.X still under obviously work between to We to X do. There do bit about X.X, -- to get

but So to talk excess got we've significant be will certainly be, we cash the amount point about time I when leverage that, our think to a they need to generating targets where flow. or of where get we

Alan Armstrong

investment I capital the tell we're a industry lot investment. speculating But versus on our But so just return -- constantly like we'll Yes, and is would would be kind so when of allocating can't because I to of that would answer that accept. project, what the on we say front, what point. that see on that, get markets returns you we're the look to other that out hard

And investment on is allocating And we're so increased will we business. I balance press I to away the think, that capital. said, projects as opportunity, can another constantly capital be there like between we there a thing today with continue do deleveraging

Shneur Gershuni

may. Okay. question I if And last one

Your excitement level about the Gulf of Mexico seems to be increasing.

sort about we touched you should how on the -- can prepared be you that go-forward and your basis? expand on You on there of sort opportunities can it remarks, thinking a was but I see if wondering of

Alan Armstrong

a are much to Perdido in honestly keep is the be Yes. -- very Shell belt for opportunities little West, large out mover the that kind clinical also discovery of to in opportunity, prospect is extremely us. get of to that Perdido a be magnitude for. track April around is the bit that around well some And south exist of just there going which the certain month Obviously, area. kind hard announced discovery would Mexico say, the big earlier our a even we're just a that but larger to the another course, or getting And then opportunities Blacktip sorry -- I well-positioned the this of where of very Perdido Gulf, operations area. so

our going on the So There existing fill to on then matter Gulf return maximizing is our capacity Western to the production be of and it's investments. plenty to a of more. up

have we're well-positioned just important and really today. extremely contractually that in and out there, out with opportunities infrastructure place the us here And we for so both

we're just -- a that then out not was singular over capital of Faith produced little Faith development coming that Blind the big Chevron also about across free also on of by of very lot field. seen like there. now just investment. move -- to And thought that likely And there as platform. East Chevron, cash flows We've by course, new find And prospect will Ballymore about no Blind very we again excited part, while area. large Shell the we that. Gulf but that an a singularly our to way that's across kind one excited get you so returns almost incremental really North just with If in the Originally, prospect Northwest the around our the

and what's LLOG-Repsol promise area, is The new to in so, us central development the opportunities. on some Gulf, going a going of in bring well. new the And of on lot JV lots will there as

reserves, prices bunch a in means of now to infrastructure a and the of lower I it's around into looking multitude we that to when keep is what to so we're existing having prior projects utilizing focus to we're big good we're so $XX with for I'm was really much So existing wasn't that past, development industry use producers our was they in to our that capital, reason good existing is getting not the really been on of new infrastructure. really in therefore and just there have saw even focus add build the huge whole. the a the But But seeing and not and down. a us fortunate cost as the way. oil think lot of assets smaller the were And for that enjoying as $XX, that 'XX, on

going in the focus if big we of when very to gaps this already there lot And the a would take the off, existing was that time utilization deepwater is have that, intense well. say, big deepwater from on But I -- one of the the that the And last bodes infrastructure. change describe course infrastructure is saw really of so you it. I are

Micheal Dunn

where liquids value that of move we're with other negotiated that And the where through I'd will so to with there day for out there. return. obligated acquired the gas. first to through gas But that we they to process like us Bay the to was opportunity, from purchase pipeline that Northwest bring to to additionally acquire we we into contract be subsea there strategic Shell one gas won't pipeline and to that go shore build, us facilities, have upon Mobile their movement on tie-backs percent them pipeline, have fact was it a add is to that that the great And -- Yes, the our negotiation with with pretty business that full. can obviously

to advantage the risk take that So the well flows. of great taken risk as because as has been opportunity we it's already gas so don't until been a away, build, that away, timing taken is pay the for for construction us facility, it

Operator

We Christine take will our Barclays. next of from now question Cho ahead. go Please

Christine Cho

everyone. morning, Good

potential wanting some under consolidate you included in tend And to direction. actually Blue about for umbrella? Racer test Northeast that we for the think to the talked be have to time. about should obviously How UEOM guys that You

Alan Armstrong

certainly of say we of to we other Christine we would able been to to make get get -- able a the Great that combination, price value of And as always. question, to transactions through we're us lot asset. try just But working control to from through But extract say thought sense that. just some it on there. haven't a standpoint, I a for I lot would direct opportunity that what of haven't there been than in various the some

patient combinations. but those I opportunity, will we making of and lots with so And remain remain would patient say

to some So, to I continue on opportunity step and but facilities utilize see in out -- middle agreement can't we a common that's a just if ways I there reach do find the transaction. contractually think broader to

Christine Cho

to selling? you're Okay. this non-core of get than Should other it? And are we targeted then aspects sort you your to that faster planned. that is there leverage guys tracking are think any Or contemplating

Alan Armstrong

selling Well, I is trading for, -- spread what just we look to this stock between are assets versus what say for. would we're always these see continue big our

in our as on our I said downstream it asset. new and that then and because rules, we to stand capital continue competing capital constantly written it business and forth, strategy says some to we're our it do those. both dilute base, in running. be that and not things have don't our can don't drawing But to returns way stand link doesn't the way that future strategies and how we the to we we when don't coupon downstream our to we if If that But is have out. for those it's a to kind process, have comes enjoy And placing look think benefit, downstream core the allocation of looking capital anything the a So boards. accomplishing asset this incremental a in from we'll of transactions benefits have think the looking I specific in -- a through just

And so, allocation capital that. of perfect stand didn't the actually just just within program. there, our example stand-alone is basis a well on Niobrara G&P up The returns

investing at than had and interest distant within frustrated with levels. stack we a return lack those of allocation our customers capital other partners our in any So both up for process. -- wasn't reason And

why that and capital areas are fixated because are so to returns, drive just our make on tend that therefore in those growth higher process. through and those we that's allocation And it

time, So I you. much this answer we think have where that's no. I tell Do about check and the at can as is site then as

Micheal Dunn

market the asset. Corners would possibly marketplace We is on say the and also for out though in the Four I asset. similar cheap there get money looking time to our approached opportunity very by all

to So point, approached. well targeted and being anything again Alan's have we constantly we're specific don't thing

Operator

Moreen take Mizuho. Gabriel We question of will next our from now

Gabriel Moreen

is is so a the bit earlier that rate be end of maybe the the case and kind little It some some there, having case been Is of details litigate would Transco you keep there you're XXXX? and like in discussions settlement terms discussions. concluded? why separated confident the rate rate before going around that. or expanded emissions your has timeline and here to the cast to had you assume extended, that position to to Transco. of spend reductions of pretty of seems talk was Can related timeline associated extended not I just fairly the move at considerably, than there, part just -- a out something I a And you -- little going around on quick with decisions that, question a

Micheal Dunn

just through extended it's to have say and reach to judge front regards necessarily wouldn't administrative per se, to go I process trying out a it's law there in we resettlement. a of

to it's we reach yet. until impasse think customers, there So we with continue our prudent certainly but process, we not that

afraid try be would with and to working that them in come mean we to litigation that, way rapidly achieve appreciate is we're of sides. getting don't both to can a like. think hopefully love to there, to on settlement but path, that where move it's litigation administrative impasse ultimately we both we won't would for sides litigate But, we willing so will the not outcome us up, settlement law to certainly -- have and that settlement certainly we're assist So proper a quickly, Hopefully, with not, judge we we But path it end customers good our a doesn't to as to there. a well.

emissions rate a system. going as replaced that's to be increase rate the it's we the to Without allows be really so so to if way that through deploy we've accommodate Specifically rate, were reduction, that, emissions there. along compression on reduce upwards able we rate those would us just do capital, separate spend to it that case, those to as capital we to case Transco a we'd And pipeline having for go as the speak. the tracker the contemplated would been a change the we basically

emissions we to those within the it to likely would rate more we make accommodate emissions And so get tracker, don't it's ultimately reductions coming, projects rates. be cases that more able that have would our

Gabriel Moreen

motivating and sort partners stack there, the may your oil or update what has just I if looking sort of it of prices of extent bit get going that? are maybe been returns an discussions more. within It Where a then And how on profile up customers looks at capital little Bluestem there? can more on And recent backlog? you're to on

Chad Zamarin

coast. sustainable. I obviously Permian little recent the we dislocation recognize, But forward a the projects basis would you long-term at But continued has the Transco in think work might basin market to from markets. on been to slow to say, the we've be in look the that curves, just I seen to if

and cautious one economics. ensuring this think solid that fundamentals any So we proceed is we're in would and be -- that really, with going project to I really that has

partners. with were I move it we be if think to would forward

of important is not of build own. to on that think, We are I And us the market looking on basin what's to demand the both to the an continue out Transco's scale, make investment on and our supply connectivity side. to ultimately

ultimately to we so to believe best we so very those wants and Transco the volumes market best And offers those think get market.

to So a again, the we from Permian in coast. the explore project Gulf continue participating to

we've alongside have purpose our We for the the we that that we gone have of I project inventory of forward contemplated that looked opportunities Brazos on think with have yet volumes, and date at, leverage haven't Midstream a benefiting improving and least the with again at partnership project. been economics that the expectations, our the that But can have. met

the think home thing market. And Transco make that so be us a work good most for gas our Permian important And continue to to -- sure we'll again, we come to has to it. I along

Operator

Please now will We & from question next ahead. our take Colton of go Tudor Holt Bean Pickering Company.

Colton Bean

morning. the Good of follow-up for discussions over upstream Bluebonnet kind the you flare last seen there. in community of willingness ESG producer to months? the a couple given Actually, on just the shift on focus Have any extreme

John Chandler

getting to interested to gas bit continue flare, a we of in think I see the I but do are producers Yes, think market. quite

area. comes volumes the I significant high We've think looking forward in shut-in, release year, long-haul they're online. later first in to the project the coming seen when alpine

prices gas Waha. think with And so in we have associated seen, restrictions I

stronger of toward additional questions basis I with project. So we move think large, get why haven't the seen this a lot around we the a is

that I his from it all lot think move to time and in Texas takes, effort create it the a seeing way Alan what market. takes as can to comments, of the we're is, mentioned infrastructure West

reduce some I a or so, and We the flare, but think don't to time. be options to for to built, a Henry the either basis continue are needs you from to pipeline. an Hub, infrastructure curves take And another prices waiting shutting it built Waha in right get those curve, the project to today desire see think but at long-haul support look from forward we'll investment if again now, in

for terms see economics. better basin. and step-up And see in challenges and a to to users longer I until So we'll market the think willing end continue producers we

Colton Bean

just circling And QX results here. to it. Got back the

on spend? is the in the So Atlantic-Gulf too? there or downtick maintenance the nature expense, function of is something operating on timing structural to point more Or that a

Micheal Dunn

It's some unregulated that had that XXXX. of that with nature, things contributed it's and in Michael. is overhauls in quarter of one-off specifically -- not expense the business year, really, that issues this we last higher our to more Yes, in turbine comparable

just a So structural really it's it's a issue, timing not activity. issue of

Colton Bean

Got it.

And so this XXXX a level was rate? the elevated go-forward probably and look an maybe at better

Micheal Dunn

rates go-forward specific I'm that, of predictor be and it Well, certain overhauls terminal of be expensive, million exception hours. it couple saying with going dollars time the to done and intervals They're overhauls. run lumpy, pretty timing of to is terminal at to a not of because of have

we so hours, accomplish equipment. time those And to we upon run and the dependent the had of time it's the run have and so highly

take we did to have go our problems, have well. work I on that For had And in of. of Transco on lot also example, care as emerging do when we have and accomplished system, be to XXXX we quarter would a compression also to say we reciprocating those, the

time. overhauls run aspect highly it's So dependent a upon just it's and timing of

Colton Bean

And just a quick clarification final here.

capital For reduction the program, $XX previously around with think $XXX you the Jackalope. that million was noted associated million of I all

the to you it think Or there that you we Does mentioned Alan So terms the in shifted reductions. think about a about attributable to element that as And some entirety the this imply is the any for more of Northeast, solely the discussion processing of Northeast? balance XXXX? I of think the of just-in-time has outlined? should we

Alan Armstrong

last to expand First stuff as not Moundsville. question. a part instance, of combination the continue is and all, for getting pushed have as it's out, well ability Oak of to to at combination It your on of Grove

synergy a So of Jackalope 'XX up had getting elsewhere. getting say is bit of fractionation little Bellevue, the your with yes of as million, offset of who benefit there. I at there finally would the course on as that. question show for then Well, into of but $XX million in well in in And 'XX some see we pushed cost Bluestem, of $XXX on it's moving going you'll the a just lot the parts,

those our projects, the get coming of these out advanced push some Northeast just and we year, we have Transco a out you the and of Some contingency saw always capital closer, lot for and lower built projects these of one capital in as projects, XXXX. the into

good But but front. we're most seeing on so of really not it And Northeast, actually performance out coming that the part, the is for all.

Operator

now Schultz of question We Capital Markets. Please RBC our go will take from T.J. next ahead.

T.J. Schultz

guys And any you highlighted it are worse timing what's from On is around on order, expectation DOE, your the that? on to more the you clarity just submit to that all executive report input process? having get

Alan Armstrong

on Well, staff impressed -- done the work Presidential Executive by really obviously the first EPA. the all attorneys was Order, we of were various attorneys with around that

interested the around guidelines treated that, like the that that. been everybody establish called administration term and a which -- appropriately administration, been the is the Obama almost think in. the process has some fact, in I of affiliation EPA in think you're by never that and use guidelines become there state put the rules so had regardless to recognize And really I'll regulatory place of part during the quotes I of

was regulations. the for, that's that thought, haven't regulations, we've been one asking And tried we've to asking toward administration not I been so particular what consistent any for clear trying they're thought exactly been project. we they what clarity asking to to that. bring And think exactly think and proper address and without and overreaching we easier order for I regulation

cleaned a be it's that applaud. actually really it, detailed astute So to it's that, you we to very up. need that into a and approach And something if dig really

great I experts involved us, there in right in think it's that. to exactly the it's direction and step and was big obvious

with as don't direction and we for well, Water within the anyone bringing in still I Fed states the there step for a that it Clean EPA. right the see see of consistency I miracle clarity now. big how particular have projects So out and a do right regs our the being tier between it Act

So of frankly impressed with pretty work. sophistication that

T.J. Schultz

sense. Okay. It makes

of end you more, times, ignoring a be mentioned they've project. built that may Bellevue timing service, one of on Just couple a lot on

this point, color there get moved if XXX, into you at Thanks. they talked anything the to just that have on wait all. to Assuming synergy, firmer benefits you in-service, has about they Station on commercializing any see

Micheal Dunn

talking clarify just about Sorry, to you pipeline that were Moundsville is correct?

T.J. Schultz

about Yes, pipeline. sorry that. Moundsville

Micheal Dunn

Okay. Yes, you. This Michael. thank is

get area to system, watching Transco that obviously they're And we're they feel gets from closely their the said project, what opportunities seeing we'll once closer certainty completing about ultimately certainty project in us, pipeline their with we way regard XXX Station on Moundsville obviously very point backers have very the project. that Just And for along and to likely should there. some take that them.

Station So XXX, to any take would on to projects, that like customer-related that we're to that we move looking certainly think willing from certainly gas at and do there away is the opportunity that.

Operator

go next now ahead. Please will question We Salisbury take our from Bernstein. Jean Ann from

Jean Ann Salisbury

effectively Is you for there gas X.X It that anything Marcellus, just take Atlantic like including could looks the morning. Sunrise. that? growth good capacity a from the Bcf/d -- Northeast there? you compression that for into max Transco Transco latest more paid around than Is Hey, anyway like

Micheal Dunn

there is to just out Obviously capacity consistently that. remind of sold, so fully on Transco's everybody [Technical it's -- sold say, the Difficulty]. is

so And be interrupt, delivered can about gas during much we flow the dependent where need the just and talking is period local on really loads physically what very to we're that's just lows to. the how and

who out move that the shippers, the is into the because is other one is the from. constantly variables that managed words capacity maximizing by generally, want right a margin of gas And would support are that But say to a lot and lot dictating play But so they're I there. basin of there of to now, they that. in we where go

has I a that's been much by where can say I calculated that So of area. that, think move every them. that as lot would as we day optimizing But we're

Jean Ann Salisbury

Okay. That's helpful.

Micheal Dunn

[Indiscernible] Sunrise full like virtually Atlantic has one. been since staying full day are almost

new out volumes So that additional opportunities to future with there the bode expansion projects. move well of does for

Ann, of project, South on for lot does we're Gas as working Energy there advantage National the existing Regional so Leidy takes is And Cabot. Regional that Access Access, a Energy So infrastructure for some Jean of though and in Fuel and capacity got area. little on to looping working to add out area, project do expansions the easy that the that of [Indiscernible] bit better -- pretty lot seems a can relatively we of do we of of out obviously compression, a

Jean Ann Salisbury

pretty Thank really any the perhaps you. your That's is maxed the have system in out or Ford capacity helpful. in I still Haynesville, spare I mean, in Eagle do mean you there? gathering much

Micheal Dunn

find the pads quite maximum say we would Haynesville new I'll there bumped and in as We there, on. volumes well to that last year top-end, max up capacity. to continue get the against in there coming come often capacity try

Eagle we there continue new connect and we wells. maxed expand equivalent from the as online looping. that from well new then it's highly we well some pretty compression the continue Haynesville on of Ford our upon, and systems capital of we're dependent that [Indiscernible] those possible the And when And for there there. have bring connect additional to Most to requires as opportunity needed time-to-time producer So and well. out out customers

that system highly and their So like component upon just it. pad. North, actually Yes, producers are it's the dependent has where South the system to -- Haynesville, drilling

really or And loaded see part, maybe southern the part what that dictates. the versa, sometimes might the up, system north get more you of vice so one than

to job operators be cross use nice a really the a processing the in system, capacity have goes not is very through capacity haul to they we But done it's gas up plans, midstream they systems there, So a amount capacity that. out do of where with like, to and fixed it's on the dependent continue plant, has team the area, our the between other just up. working able

that, Ford that Eagle of the cost a would remind we is service you On agreement.

rates there not, so the And that capital where in setup. gets that as covered we add it's our is that not Haynesville

Operator

ahead. our from take next Please Lapides go will Michael Sachs. now We question Goldman of

Michael Lapides

point court both let's Hypothetically be I'll lot a stuck system, been on could longer bunch a and the there the those has do realize or And of MVP North and that to you MVP I a timeline Williams through, and got didn't is even Carolina? maybe meaning about in quick. down know offer ACP solutions the it to inflated into if ACP. solutions? bogged go for in creep ability say How South the untenable. making cost Virginia some think the

Alan Armstrong

it's that's getting Michael, Yes, lot been obviously of topic a discussion.

terms to a ACP, product of system healthy, supplies what gas offer, to whether it's the distributing the be in them. to or We Eastern lot with have would market moving

to supplies. downstream -- because we trial with of MDP across the tremendous offer with obviously so issue existing do just getting is speak, amount have We weight. those have to a lighter they're kind a more our

to say, goals. we're struggled And ACP as of I distribution that. would And offer and so in there. distribution need a trial they them across terms some their that's going market But, need, as the the to we market really with well-positioned MDP, have they more meeting do to get lot they're help out

possible, all what think the cost describe we're for that's as to very So on important industry to in focused as those it's the utilize of that. I this that's keep cases. much how facilities I participant Obviously try down existing and environment as both in

Michael Lapides

much ACP timeline trying or if new and But especially just new get build the how you them. some get in to have another I'm new To much requirements it? think gas the ground, into how significant the to infrastructure, the pipe about steel North infrastructure would Carolina? didn't get to completed, reason for to or deliver

Alan Armstrong

required have of existing investment, I in significant those markets, some and lot dependent from. not, bit the it's supply would comes -- where facilities. significant cost quite investment using the a already very a would be it's obviously say [indiscernible] on it it's of terms by it we But lots into pretty of lower but the of is

comes where depending of supply that the we have market. that lot along on corridor, into variables supplies to lot XXX help So with distribute the here ability a gas the XXX of if you just a to up from. But showed

Operator

next Please question go Jenkins our from take ahead. Justin now Raymond We James. will of

Justin Jenkins

Great. Thanks.

for follow up one Just me.

rest take below of the the could? of you guide, driven? year here? per the so on if the to bit run Or cadence balanced is if hop the Just you CapEx year back for just end CapEx it is more XQ a Maybe full the throughout rate it

Micheal Dunn

the Michael. we're ramp-up say third Yes. quarter the our rate really can't working projects This projects million construction in year, growth our run $XX Say you on. is that is QX and because in second that of the

of with the out and we out put came we're summer within this it that the suggestion heats the as information So still week, our season up. ramp-up that guidance will ballpark construction there,

Operator

sir. go We take next will question Chris Jefferies. now Please of from our ahead Sighinolfi

Chris Sighinolfi

and stemming morning. been Hi of a have this guess, very everyone. sales, you deleverging. active asset clearly I day with the for Thanks all from JV focus on questions since year analyst call I rationalizations Alan have ago a two that. guys

The first about growth X% is your earlier to Shneur's question follow longer-term X% guidance. on EBITDA annual to up

place Just forecast WTZ think beyond curious interpret the last maybe to John for about how in outlook just your longer-term wondering XXXX, versus periods S-X will in summer? you contained the or the how

Alan Armstrong

the the do financial We meant information. I pay summer, Well fair had to of a much obviously attention last marketing wouldn't amount for wasn't talking that purposes. that, through to WTZ S-X for

time growth see on at this around we two look forecast of X% over our look level at see the and we we to deleveraging years our continue as of same our to point, and forecast to Again to expansion earlier next at range. we today, a three as billion spend we at X% look today, capital. So the back capital EBITDA our $X.X of again

much weight I on So put really document. WTZ put the much wouldn't too

John Chandler

deleveraging. just multiples that, both and we're constantly of on able Chris of X% balancing would very focused making I that we on -- Yes, the attractive assets there. as plenty to obviously on X% is are growth, we both reinvestment that, to growth we And are well X% on on have ends sure being say delivering to those But to get growth. at sell as drive well of way focused opportunity that pretty X% high to also

nicely. sudden. that's I the so a lot sizable to of that Regional with and And comfortable develop very Energy one continue is would say, would along capital. that project tell And Project period continue face we're moving that, all on our strong pretty support Access project that's nicely come a this developed far I ability very of you about within just to to

the good that timeframe as we're continue the the think really flows because the of to we projects there investment be going return business pretty ahead moving FIDs deepwater doing part, XXXX deepwater will a those our opportunity through isn't opportunity for I cash on about to big, be the So are coming -- come. -- speculative into and this pretty the high And get are lot this.

are And out the there our that of projects part that's so the coming and of size exactly [Indiscernible] lot and are much how on those exactly of way.

those both take long-term Northeast coming even of from doing to to volumes still Again that EBITDA think in mean we've kind of a transaction. there XX%. deck well. are a ramp continue we deleveraging, ability that -- as see growth in late DJ saw to adding growth in of we we you year assets we the And will though out a maybe course coming same coming in that index, -- growth this CAGR if rate growth the Transco the projects the our our as significant see somewhat view robust we on up of but projects, number we of as to that XX% XX% of is and acquired are of Northeast. in be good Basin I very next got continue obviously EBITDA. look the into year number those slide had We've managing the have last from So year, about last and about

Chris Sighinolfi

positive if it's in there case think purposes, that's the additive or higher my it related the get as puts over that you Okay, next in of assume you to guidance. years outcome couple that that to up own on the about is X% impact safe formal range range? of XXXX time, a maybe X% that very period you just one on clear But to Transco John, clarification and we any rate that omitted

John Chandler

in range. the It would higher us up put

Chris Sighinolfi

the of a something that that reading but Slide guess that always it's Okay. Just just we the got X% or wondering And you could items then we transactions think to, my what on I EPS. restructuring, or I'm just you benefit questions the assuming, trim guess for do curious, front? to items very maybe of impairments investors I question that the I'm and XX that's additional EPS? from appreciate very acknowledged significant drag those about clearly, could lot more EPS, more just some there helpful. for much non-cash are done the Thanks. I'm presentation materials it's be second of And And and illustrates I do

John Chandler

trade extent is which There type a a approach a is from lot not to extent it is CFO That's we and which is it we benefit today. assets to we revalue to the valuation we Access, cash assets on our back commentary but of Access it forced at obviously us maintenance that, can to the the to depreciation up could a consolidation That out to a merger, by but deal that was assets or Midstream marked Anything which weird gross well these that got level based consolidate the a for level. impairments, that the down. bring have that stock-for-stock and maybe something any non-consolidation really through extent of really flows, and we lot JVs. our that look capital. of do to cash -- of though, and lowering impairment on allow a That impair, for partnering us our the absent could short revalue to move partner depreciation very lot would depreciation is the in potentially a front, line assets with on high assets test of high-value, way not a to

those are those the gross at still book value. flow a While level, high exceeds cash

of bring that kind short thing anything depreciation So allows level really for that some down. force of actually partnership system only JV deconsolidation, that the of would to help some that's

Chris Sighinolfi

helpful. That's a seems [indiscernible] reason The it And Okay. changed. you. questions know, I the as line of in [indiscernible] our Northeast it's that well. maybe appreciate to I for seems like focus fully structure it.

was I So, it. --. where Appreciate just, was that

Operator

question will go Shere from now of ahead. next Tuohy We Brothers. our Craig take Please

Craig Shere

gas, Racer pretty NGL the impacting your years? I have in commented and questions trends, the at West a Blue Most the Alan over morning. processing pace answered. one. couple you like wet terms have in which fell panhandle see tough of Utica pricing of my Marcellus quarter. of might Good and all next a weak off been Virginia new on do you did those recent quick How looks had

Alan Armstrong

Yes.

are, online, filling that and have of pretty I being think starting lot pads off. see -- shifting it we It those good really had are patents up. way lot, contracts Craig, a that big it front. progress didn't on the make is I a some our investment to about got mentioned as come doesn't there so that coming we that to way. our we as turned And feel earlier volumes And

knowing feel capacity able synergy about good excess So and front not the pretty any out -- as we capacity the position have and puts don't we to the result a prebuild existing takes to any processing UEO, TXP-X this grow have plus base of in and TXP-X, further. us a that in were capacity,

it. we in but is where ship the increasing energy that of those I synergy this place we to in as the one about prevents cash do out earlier volumes having from it -- to or flows volumes, of things that So have that, because the mentioned preserve build from to, front us those nice alternatives capital can put

breathing And so lot say, and OVM I as allows relates room the more to capital for better would it capacity. us just gives processing that a efficiency

advantage intend we so And that. full to of take

Craig Shere

good. Sounds

slowdown you contracted need basins? derisk, not ability really fact because the that is don't basically is TXP-X up your going work to capital have you your -- the to but that new So between impacted

Alan Armstrong

Correct. Right.

Operator

will Schneider Citi. from take question We Tim now of our Please next go ahead.

Tim Schneider

my is for among space. -- I would points seat, the debate the companies Some in just investors capital real quick. say biggest midstream From allocation

with to kind kind the the wondering asset being delevering just growth, shareholders but the of of to is is said below together look go just strategically, you of Xs, are what get leverage over you that when that here. of thoughts should guys mix for Williams? cash kind something I kind and you bouncing right low I'm think happy in leverage a company target, returning of your the at the interested and in -- So you you how think Xx, longer-term the

Alan Armstrong

little our don't can that Yes. to the assets, I is per that our very remarkable not which cash would we not business based, just don't is with And of the that you streams, you mix, that it's predictability asset to say trading continues kind that's term a see -- have flow variability flow. optimization to the basis gets just around around differential lot I of marketing often the have cash flow. We assets. based, bet

they basis, get that there BBB confidently think be us the be told don't I say -- a be agencies mark to of ought we BBB to I at no, kind number and that, have all would X.Xx it's flat on level. So to want flat, the rating same, there, their but

that seeking flat is the a because what And basis are X.Xx steady so BBB be to that kind side from coincidental happens run-rate for on that agencies. rating of mark that we with

Tim Schneider

that are investment agencies do from Xx, the think, kind well you just that I mean, to really aim feedback would is something go you you something do of if in I let's guys you community, case? want are see that of rating saying? getting guess the more Or what for with

Alan Armstrong

perspective my from just say personal own would I on that.

I down vantage think we're we from to I think that's be our through when think flex for figure think and and costs volatility keeping to to investment in out, number, And market us. fads think who they're with targeting tend business the that to, need came driving the aspire because somebody magically doesn't, from ought the and who out, is I debt community. their and each the really trajectory. should capacity should a has cash has smart place company not I to move what flows be Xx point And the up figure just our to that number. And that it we

Operator

remarks. at to Mr. call are questions like any There would Armstrong Alan or I time. additional the now over this for closing further no hand to

Alan Armstrong

way on our everybody. and you opportunity the running, appreciate executing excited teams Great as to and our thanks visit business about continued are questions the very this. we Really always on with great, projects. Well, Okay. predictable the way is

speaking the forward with to So next and in at look Thanks. future call. you quarterly the

Operator

gentlemen, for call. and conference Ladies concludes Thank you this today's your participation.

may now You disconnect.

The Williams Companies, Inc. (WMB) 3 May 192019 Q1 Earnings call transcript