WMB - Earnings call transcript Q3 2021 | The Williams Companies, Inc.

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Operator

Good day, everyone and welcome to the Williams Third Quarter 2021 Earnings Conference Call. Today's conference is being recorded. At this time, for opening remarks and introduction, I would like to turn the call over to Mr. Danilo Juvane, Vice President of Investor Relations. Please go ahead.

Danilo Juvane

everyone. morning, Good [Indiscernible] Thanks Thank you the your in and joining Companies. us Williams for interest for Yesterday our Armstrong we to our Financial afternoon, released John this president presentation and Officer, and that morning. the CEO, will Allan Chandler and Chief earnings our speak press release Officer, Zamarin, Development. Also us our President Corporate Strategic Operating Senior call our General Dunn, our are Vice joining Wilson, Micheal Counsel, the Chief on Lane and Chad of to In our find you'll statements. presentation a disclaimer forward-looking related materials, integral to and remarks and This it. important disclaimer our should review is in the to the included schedules and presentation Also materials. measures materials at that generally these are reconcile back appear principles, presentation non-GAAP of today's accepted accounting reconciliation

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

Alan Armstrong

have Danilo all connecting by news long-term joining with as Great. good deliver that demonstrated you our the today, by And third to share supply to thanks strategy exceptional with areas best and markets let saying thanks, fastest-growing lot to these start a financials. quarter me continues you of natural gas just results higher-than-expected financial the of We of do but for us today.

As quarter John EBITDA major our a walk driven year XX% all-time we across period segments. X by business of same to last with compared the adjusted the in growth through record results our achieved all just third moment, of

key the insight that than bit financial you, growth in many did give quarter midpoint performance years we X% We'll provide Given deliver come. we now but executing guidance time a challenging transactions only right very result sustain over this today, raising the came for drivers we about but above now in -- are to line year little some a our turn on clear backdrop. to John? John me which, for projects is in to EBITDA our record realized expected, that continue all-time XXXX I'll that talk for today you expectations remind of XXXX last more Not quarter sight of performance second to to level into Williams. robust year and strides and make continued a a us we it for this so strong above our let fundamentals, this on our to

John Chandler

Thanks, Alan.

in an of and we all, the from contributions put from The new our First upstream from been over in just performances profitability strong summary. expenses, our performance of nice strong Wamsutter into in the quarter benefit Northeast incentive statistics service very positives higher operating Transco benefited our year. unfolding our high-level EPF page. revenues slightly Gathering that you the the for operations increases commodity Significant can and had, increased what have The expenses from systems see incredible from higher a year. And were quarter on in reflective our of on and compensation resulting somewhat prices lift this projects West in offset last segment. by the pipeline

key fact, improvements of In again, financial our metrics. all we once in saw

we've fluctuations. or or variances was flows or the discuss AFFO seen the from significantly capital and in $XXX remind also $X.XX depth up First, setting for our We'll operations, is quarter, up in AFFO, XX%. cash Adjusted new share increased quarter including moment. XX% adjusted And grew record. increase excluding essentially million $XXX EBITDA I'll cash a working for a the million a more quarter a year-to-date. for And you, XX%. EBITDA JV EPS EBITDA XX%, in

cash AFFO we in capital. mentioned I million of million against billion, $X billion year-to-date. AFFO year-to-date $XXX just of investments $XXX generated discipline, on EBITDA can by led those $X.X continued and debt maintenance based Included you quarter. capital our up healthy divided our set capital put the at with to billion excess goal, of and This for generation is see investments strong you of along for dividend $X.X EBITDA. a dividends that with year-to-date net has leverage to X.XXx strong year-to-date quarter, dividends we If currently of Also, coverage see capital you over the our cash X.XXx can our where metric exceeding

in in X.Xx Xx You'll year our for were see to around later year moved the where guidance less for at we've deck that guidance the than we from now the update our year-end. at

set year, and good So very strong for and quarter the fourth for really are up good a the performance the a XXXX. and fundamentals quarter

EBITDA Again, in our -- now So XX% a performed dig million results quarter. let's XXX well, slide and deeper the very or a next higher little Williams go into for EBITDA. the to realizing

only this added from the has those existing quarter Again, amount we Our EBITDA, it net adjusted take EBITDA upstream entirely CFEs EBITDA totaled of the upstream little operations little combined is therefore mostly million the but quarter. from therefore very assets. for acreage And a reserves. $XX new million our production Wamsutter a the a time Haynesville before acreage, from PDP almost to coming see assets, given This will and day XXX small from it ownership. Wamsutter upstream production to is

last Our transmission of same assets were Mexico year. that million X more results than Gulf produced period the

due year. into in Southeastern of shut-ins quarter during Ida in of revenue can And Offsetting this from of revenues project the impacts see the in the Quarter that went XXXX, went into was Mexico third Hurricane were the the reserve hurricane quarter the Third pipeline in also to quarter impacts a trails of project of of from capacity, added to of our last quarter service New year. service transmission the projects in hurricane last growth including firmed Gulf the up you versus aligning fourth that down incremental in year. from And this somewhat Quarter year. comparison evidenced from is which last X% Third South last fourth portion XX the million that

number year on have last of the incremental impacts. was million a hurricane you so year versus there, negative this QX impact X the Just a

the segment part be related to large at incentive XXX of base $XX at in XXXX. revenue gathering a grew of gathering And our in million benefited million system volume in a late due Northeast predominantly supply growth on offset just because quarter. to we The supply just addition, to And can productive on Blue expansion volumes clear, not higher were continues our total Racer transportation In this somewhat to the operate A Marcellus mostly included quarter quarter day XX%. from those to increase where compensation G&P this be come EBITDA benefited The Northeast the while expenses. which processing a the X% expenses, slight increases more hub by ventures for operating volumes accruals. not of larger volume at that employee we wells additional Collectively, Bradford grew XXXX, I from we attributing strong versus quoted. third joint are volumes was pads. statistics in system do where and South Midstream, attributed

incentive higher higher revenues offset in significant of last a mid-November these -- ownership, accruals. expenses by due As volumes, million, which expenses. portion investments JV equity a blue being the from of of midstream, higher Again, our compensation in of to acquired volumes the those profits ratio method processing from EBITDA also from our again, improved to with additional Otherwise, benefit blue we additional increased result Northeast, included by year. higher were $XX related

prices. maintenance lower go $XX gas West is and the XX were that to for the You to million higher same absence in the compared higher year. margins last West in to only and million prior remainder of Otherwise, small write-offs due legal of fees And segment cost and increase third to the higher to to the the up natural that lift improved slightly the operating year. period commodity by NGL lower this last due of [Indiscernible] asset from occurred revenues of quarter year. comes compared to related EBITDA costs due

a number I'd out. big they're that directions to point like revenues Now items in that go opposite of

Barnett our fees and all, undeveloped in to the Haynesville more year are a Overland rates participate us offset for fee to area from deficiency increases South higher. contracts Chesapeake allow on we've year, The off that our pull exist paying in do where in when acreage return this from in in partner quarter prices example, Also the this upside by to gathering rate our last revenue remember Haynesville. decreased First this gathering was Those them for Banfield allow the upstream gathering during lowered the deficiency volume the resulting Pass this OPPL. in than us year. of [Indiscernible] Pipeline was of not

the increased portion of profit quarter. hedges and Sequent of differentials Haynesville Wamsutter fees in have unrealized the inventory $XXX markets. with by Piceance were some produced as well And a of hedged loss assets And not to the volumes in couple means those in million as by see lower does season. gone intrinsic the the course our did However, Sequent Sequent positions And swaps, nymex higher significantly otherwise. gathering to the from of first on you being again, near volumes traditionally capacity the up basis widen adjusted profit first will positions, then of West for their our significant of therefore, significant quarter, year in fees that offset led half the of portion have makes storage quarter. This, with as the realized gathering of as point, as which X% of value And transportation offset Barnett. in the significant basis for and its in with up being finally and transportation overall storage in in course, quarters prices this volumes XXXX. that of volumes heart a the prior the value that large hedged the the well. of mark-to-market those the portion winter segment EBITDA somewhat are flat the realize

profitable strong go results. XX% Again, Many showed to segments. $XXX are across happening and our all or that of our to the year-to-date results adjusted EBITDA. growth year-to-date Now of things million

First, income it profits Winter -- profit $XX West. store I'd million which million point the And $XX added to of contributed upstream in Storm Uri, results. to

In upstream additional have the an properties. $XX operations from almost otherwise added year-to-date, our Wamsutter addition, million entirely

to Transco of last were rates And decline mid-XXXX that additional downtime and have of projects better, is of a Mexico X% actually to following due place million this just lower final the case as or year. Mexico few markets. offset Transco due Gulf rate being revenues assets, by assets transmission a majority lower a from from rate in XX XXXX. positives our partially in settlement Gulf into up Our reminder, related versus is largely year by revenues These incremental with been increased in service driven put a revenues to new largely the transmission increase

are higher year, by to our expenses is resulting, our from again, performance. entirely million strong from the JV this addition, year-to-date Northeast higher compensation In our year, from supply $XXX for gathering again, gathering investments, systems Bradford hub due the and The driven expenses [indiscernible] South systems. mainly incentive Marcellus up profits almost

In who, actual benefited the Midstream. upside, our driven in gathering volume are West, $XX were the increase profits offs Lower of margins, volume minimum Northeast we the from that our by volumes the a were one in for up top $XX in where for the stacking Pipeline by by on year-to-date payments. by and us. to bit ourselves narratives of [indiscernible] the the of view of million deficiency Winter up lower higher the Storm by information is In million. is earned XX%. on that And Racer and last which we ownership the positives million, was from $XX if out up deferred look operating of [indiscernible] to from West upstream increased this be so million lower profits. while reside. we revenue more Pass Haynesville of see upstream expenses. P in did XXXX. but pickup quarter we of payments again, In acreage year, Barnett, total, that financial our lower did is And providing operating they're E&P covering operations Blue from mostly Overland gathering and revenues. rates, $XX up statements, most set commodity the their $XX while receiving our significant West, analysts we point the year of an X% do Uri. I related volumes increased the then segment third with addition, where incredible with Again, then our commodity Actually, were costs you went expenses processing of was making E gathering for went $XX the volumes face their gathering operating came we some this up to costs, the on exchanged The the commitment way somewhat did offset over from higher the in million that that shipped rates Sequent in that is costs. rest million our want bonus elimination that night, thing of and lower participate disservice we've and a X% other offset they're the in last are EBITDA, course, a decline some up not and operating covered of These and And on

significant and we E&P pack with expense a So costs the you so or other actually are actually in than doing down Sequent are the through are bonus bonus-related and when actually the expenses. seeing otherwise, our -- seeing contracts not increases expenses -- extract

I'd that Alan. over Alan turn So call to up. focus to will investor I I of the thought now areas. key a clear number back cover

Alan Armstrong

Well, we'll focus areas. investor here move X John. covering key And Great. to thanks slide on

durable renewable the the down gas our focused gas would against natural recent energy of through high of but reduction benefits we've emission cycles, commodity have to even demand our in thoughtfully business contracts natural general. to more better higher-than-expected haul, that past in exposed this while that we portfolio results the strategy we third than it is prefer environment. Our highlights over price The natural pricing and complement XX when role growing gas is for months resilience inelastic environment. natural play available. And in long long-term for for in surprisingly a expected a as and built prices this Demand quarter the delivering upside moderate the demonstrated near high-quality demand was is the will potential which gas business

our the upside that This are environment, additional G&P short, are businesses after we show our contracted results that cycles. with for through inflation. to our In over excluding also how our we to protected quarter's be business terms rate portfolios these investor years upstream have these its mind, up inflationary and and even positioned potential adjust due in the set results. Along meaningful upside can from business and thrive in contract be long-term see contractual lines, to our

EBITDA environment now residing long-term billion. course that EBITDA, at we're of So year of increasing shareholder the in our and financial with as we've X% our is feat we strength focus the guidance value here, was 'XX year's by And higher a than are on looking last and for our billion at financial that this that in. itself $X.XXX $X.XXX second midpoint time mentioned strong

well So among exposure a EBITDA by we're the lower really through. activity, customer excited X% challenges, side characterized few of EPS our positive EBITDA durability years coming our have producer the and translate midpoint reduced to while three-year the other the 'XX is down-cycle show in on [indiscernible] on guidance, And the the past into and on been and and XX% prices commodity our EPS. updated here

a three-year under of our XX% midpoint. course, and this So produce ability it's market up growing proving now reliable on And variety earnings our at EPS [indiscernible] conditions. that is a to of

to of to here note, has of will transmission which we Sheet, to regulated recently our shareholder. to because -risk the priorities, the our and about billion end, about through Williams in beyond recently, that emissions issued compounding remain capital the allocate XX-year is steadfast to at billion the Balance rates And our long-term our will most attractive we results our $X.XX program returns at leverage. options to financial is 'XX XX-year earnings interest de Our allocation quarterly potential To to earnings also dividend. our and to value investing X.X that bonds most shareholder capital option continue reduced investors this at grow of Williams. And as now allocation, enhance we This of of ever which stable dividend we we've significant as unveiled provide now perhaps well are variety footprint. continued positioned systems, in maintaining across the And is a our the a think security opportunistic grow and long-term in repurchase long-term we most share the including modernization unique dividend. as by grow capital both dependable $X.X have issued

projected continue the lighting project point, we Next are projects such deliver here, before a looking we on fronts, from full-service into to multiple execution season. as heating which than at earlier including growth, online bring and South, targeting bringing to winter key importantly,

as continued While in the remain demand to receive on such system. we've REA, full phase, the in projects projects, execution Transco first

XXX the for Our incremental system. X a just add X expect expansions capacity the announced day of expansion, coming during a on total system agreements projects will to of we Transco the of another more than expansion recently a little on Mid-Atlantic in precedent bringing half secure million last And weeks, 'XX.

REA natural G&P to our the by basin, are rate supportive the growth slides times some can nearly gathering competitors, of and where the but we the providing Leidy also assets, production only led we Lower out our takeaway business our and expect the layout that also were at like volumes. XX that is Northeast, With sorry, projects almost and in resilient. of in double Northwest -- put remain that index. of you of in see South This continue volumes growing fundamentals Marcellus not Our of supports we the gas transmission U.S. our rate gas gathering to a XX grow our a volumes are

growth in gathering announce systems soon, near-term of that in expansion volume fact, there our takeaway underscoring the our Northeast deterrent the don't area. we see we constraints basin In finally system sustainability. on expect And in to a to

As replacing while well-positioned think carbon into the LNG highly energy continue sustainability fuels our natural of and extremely reliable about renewable higher gas and both supporting natural for we is future, gas export. today responsibly-sourced the to infrastructure growth

key networks future. are hydrogen anticipating we like forward and to country's future use we announced a Orsted. our technologies energy hub innovations electrolysis, part to and emerging pursuing wind co-development opportunities evaluating in on end, in Looking on energy Wyoming [Indiscernible] are of that MOU and this the, Wyoming near And can our Southwestern with deliver our energy, via assets of as state a and gas recently synthetic large-scale in clean of

move continues on and the initiative our now processing. systems, projects to before, as now forward arrays solar advance Our we've of are for loads solar our compressing and XX we our mentioned large fairly large execution on provide as power will that those

close in bringing A looking we're gas that time-frame. job in million source makes energy ESG that energy. in impact responsibly And investments gas renewable in sustainable supply, now, exceed opportunities advance will reduce adding our of X now per partners that on emissions. world's view in feet signed up on feet day growth investment of that through So the cubic at play a and that pursuing and a and natural a of of role sustainability the per optimizing goal. chain to assets great the an cubic also we we're to making our is and expecting sustainable investment energy to gas diverse natural and improving recently sure goals. million We [indiscernible] will XX future. the of around emissions solidify are [indiscernible] goal set [Indiscernible], and We're to partnering on doing natural value should there. firm energy already investment and renewable with among and that consumption operations steadfast 'XX through Williams help lot on Midstream [indiscernible] do the be our the We latest are advance our first facilitate remain the opportunities in-service our X platform, provide going we reducing in day XX 'XX of portfolio entire natural and transparency efforts incremental pleased to clean role seems strategies interconnect front, that capturing venture the day the to our XXXX a opportunities gas. of expect companies investors enable million efforts, that an to new And with

on in doing are that rating in thing focus to rankings sustainable industry top our with Williams right results the towards agencies that strong the operations quartile sits key by this reflect for dedication Finally, perspective. our ongoing an being continue deliver recognized of from the our ESG state. our team

a grow. So focus predictable place basins to are Gulfstream, closing, on design, our by on be low-cost a intense as has to be really demand natural in are the gas the The and our our gas not significant assets and sheet future pipes, and continues our and free Pipeline, by provided world. dividend. must meet of triple-punch American on accelerate best-in-class continued source report in improving has lot that to translated here natural of strong long-haul into gathering flows. the the in and formidable to demonstrating around And called cash energy is and work that well-covered quarter, and things clean it right right with understated a This benefits we markets. as will this Northwest growth, gas-based returns, built balance strategy like, And Transco positive that business steady a in growing

sustainability energy to well-positioned viable and renewables the supporting while and As opportunities, capture. we reduction like gas remain a work right complement gas and scale key is renewable more fuel and keep does and with prioritized growing opportunities aggressively carbon mission that hydrogen of carbon-intensive natural solution transmission the carbon emissions to as world. fuels provide demand, should component now, networks goals industry William’s reduction and energy home. multiple around are be taking and out can storage emerging manufacturing to to aggregate higher climate bring here and economically here, mix displaced more will balance extremely right at the Natural fuels

have financially XQ to tremendous an more we And time. deliver and goals unmatched at lower for their meet open and it the sustainable and forward stakeholders manner. customers platform closing same We results. to environmentally in growth we continue But helping emissions that, produced questions. with I'll to your look an up our importantly, So in

Operator

you. Thank

now [Operator Instructions] while question-and-answer Q&A begin will stand-by the session. We compile we Please the roster.

the J.P. Your of Jeremy Morgan. line with Tonet first from comes question

open. is line Your

Jeremy Tonet

Hi, good morning.

Alan Armstrong

morning, Good Jeremy.

Jeremy Tonet

wanted to these just materialized touch If in I all about we on and raise, this it benefits that necessarily the results the strong forward. how look doesn't into I that going XQ. that at seem -- guidance think quarter should XQ fully translate

how so could of -- just built growth And is sustainable, that wondering is much much a of this into how level off EBITDA. be this XXXX

trying to strength sense here Just a get this the what's recurring quarter. for in

John Chandler

year, did for take the don't that I of their out We of of our adjusting see lot an both Yes. long-term incentive our We bonuses as well. for EBITDA. [Indiscernible] adjust accrual comp that and out a on EBITDA.

pricing side that quarter. the that we positive with about offset So And the I that this annual million, that did increase shows the would doesn't -- up our and on those that which hit so obviously quarter long-term for so inventory, incentive take would to of well that be as [indiscernible] -- NGLs $XX bonus, degree was our to on of other increase comp again, that that, our as believe, accruals some a had against the that in negative and

to degree NGL don't show the up. and wouldn't non-operational a up, move that's that if you inventory to prices issue, price will, So that but again have we that

guidance, and expectations negative. it the a here, the our I will our I strip say attention business when would X just of say so a forward forward X are just business. driver our to [Indiscernible]. as relates about that's that's the positive, as moving E pretty of we think same will and we be and it’s to obviously, not we our huge forecast couple sit and those So P obviously backward dated, pay

build to that will As in net going developed. a sensitivity be larger we winnings we're way 'XX starts and sustained build was we quarter in to business terms become hopefully evident be high 'XX as Nice the well. as just and when prices starts just as off prices, a we business you our to where in pricing Haynesville we they of to, commodity that's the how the positive forecast to that's can larger good would our take build That around we'll start gas but we're see, forecast stay business -- Obviously then developed. in our it prices this -- that. not come not to of certainly Haynesville going I to know to the a to us, will high, see rewards. going will get we're do in say not

Alan Armstrong

things to to be to to guidance, we And expenses our think But now do some would Jeremy, that and gifts this ourselves how there. accelerate, do we're of capacity some on somewhat have do just that foundation, as like probably it bit that, to quarter like we [Indiscernible] from that. for also dealt year's relates we I our obviously, by we've and embedded wanted after we if the otherwise example, flexibility so mainstream That's conservative probably fourth things. things left a some that relates flexibility

Jeremy Tonet

question guess next the is I I back Moving build better build here, here. in along have

like for [Indiscernible] implications tax. do the XX% could bill a here Just you wondering things it what see some it that time, at your transition be different minimum same business XX initiatives other seems and energy in

of minuses passed would the if through see. you if it some walk [indiscernible] bill, how written, that and impact could us pluses as wondering the The you Just

Alan Armstrong

speak let that. a in alternative on minimum we and to eyes the would certainly minute John I'll keep tax, Well, here our

I sequestration. Coast a and the targets capture key to like those pretty we in some sizable as about for like carbon footprint us, drive that think as things to to have positive we places think utilizing relates particularly where be out extends XXQ our increasing the infrastructure it amount, carbon reservoirs would obviously, that of that the water for for Gulf

I think positives of methane the on emissions in lots issue. that So area

lowest, extremely an We when you're and well-positioned emissions emissions. emissions on that just are be the think those put think odd have out put us and But seemed done to a that. net the that be does that really think to those one around their pure we such on good here And that smart sense carbon but We methane makes we reduce it rewards ability way [Indiscernible], the would [Indiscernible] just bit continue it's prefer It we encouraging world. reduce that who for that that a methane that positioned we that you regard that we're reductions, if one pure to and in a emissions. actors, content stand think to focus rewards for that has and when about in way. it's positive would reduce working hydrocarbon. not a Obviously, we that, much a to little would tax help talking been

So positioned we're on be a actually somewhat but we'll think could that, place wide be get could that in positive way force. of we that a to hopeful the that

we So that. look will forward to

Chad So I don't think know, that's, or... I

Chad Zamarin

complement This is current just The strategy. hydrogen as good Chad, Jerry. a currently last our would hydrogen I note be think Yeah, to on incentives drafted front. the on the

that that And so supportive as our -- goals would because closely our on we've on well front be that been front. working supportive of as

Alan Armstrong

a a is alternative Just there. prefer the tax. higher as forever had minimum going tax while an to under tax the we and on A&P we tell I payments, alternative tax is land, before. really that to still that's be discovered than balance, to it scheme corporate tax against If question inverse. tax NOL minimum old the relates obviously, be an There's where would you tax lot we pipe minimum the rates left of usage lower permanent. rate and around alternative timing just

alternative take for up minimum your of not You NOL's income, your calculation. clear the in an current tax legislation. XX% against That's could the

take excess seen income As usage us. not NOL's. probably could we we've flow. of let's our XX% be be to before alternative cover -- we've able it, cash about thought We'd say with That it size tax our of out, would that minimum

to $X you that's lot just questions And additional And We're now. of be [indiscernible] there's So be XX%, we [indiscernible] that's understood. forward. of use clear, around Can yet all? so look its to how a you it forward them carrying at billion at an just But going usage factor. XX% or is use still the know still

Jeremy Tonet

you. Understood. Thank

Operator

question next from with Cho Barclays. Your line the Christine of comes

Your line is open.

Christine Cho

of tracking that morning. the a this with [indiscernible] announced target, how below of ago? year Good execution the you. months think your the about you should out-performance and couple Maybe we buyback Thank

Alan Armstrong

Christine, pretty expected spread costs per actually cost thank and clear And our I your debt debt and that. question. say a we're it for wide kind costs, you get so kind widen. about of been Yeah, we've the that we did I -- would see about that of would that, price thinking is just of that you or multiple the can XX-year -- with of XX-year of market how

way then which down place, [Indiscernible] earned earnings, of there continue yields those on the to XX-year down which debt, will so more yield, as metrics say buyback. positive either from multiples if make drive invest we and we that will was lower credit that would I in. in the But period announced we continued one to drive don't to And in the price that or go will would would a since invest improve we which investment continue our to

to a that would in and I which flowing is will back, money continue natural we to we to be zone, than our yields it's occur that fact accelerate. if moves how nothing's changed think occurs. point on improve, that this hit eventually, would be would that continues price really other continue that, way expand certainly the but rate changed lower that the and quarter credit we since our that anxious perspective metrics, our a be But you buying from to than of to expect XX-year flow at which if you pretty is really that, in amount here our to that if stand of announced other improving free And cash terms will advantage of nothing's we ready. that. taking

Christine Cho

in okay Xx And having if with presents your you back to itself. factored the would be buy trend just leverage opportunity below

Alan Armstrong

I is say the option That's modernize base right. though, in continued will before, unique just the we right a our we've And and reduces emissions mentioned one this in have way system. kind on as investment of that obviously

that a something process that and And have that because but costs. our to will through fingers takes money so capital for that plan to flow that's so we speak, at. snap place allocation that's That's hair-trigger, that permitting another the don't we not time, obviously

Christine Cho

regulatory just works? at? spend spend looking follow-up much as That the and you actually program. how guess this how I my around was Can you How you question quickly we're then the return modernization earn process the remind mentioned, us per year, on what you can

Micheal Dunn

get of we a we're both we're Hi And we them. as Transco to working case on go tracker. with enact Pipeline it's and Christine Northwest with If got recovery can't, customers over rate six that fronts well our $X a can And seek Transco. so. of we or long-term we normal that Micheal, we've to through [Indiscernible] position if those a reduction worth On as so customers, would working process projects. invest could between about both to or projects emissions years could those Northwest we a and program, billion very maybe be believe

to you on deploy start how a projects time. that, would the and million at Depending on could year $XXX the potentially math we $X on So profile take a that's we want that to there. spend many doing

Christine Cho

through don't you to have If to with something you your recover there rate or agreement an a is it customers, case would quicker? come

Micheal Dunn

in rate to not have recovery the similar customer and doing a would do Very certainly the tracker there. we're but and process need the through to have have with and it and would a their No, through the many go to, occurs like accelerate that of But of mechanism. we through to case to that like we thrush do one we if jurisdictions. go obviously why our to base the customers would rate case that's disruption prepared that tracker to are what we to the reasons

Christine Cho

And the returns?

Micheal Dunn

would Returns either once Northwest similar case known. to Transco those returns are what be would and very rate on be Pipeline outcomes regulated our

Christine Cho

you. Thank Great.

Alan Armstrong

there do the still we for we And wait those case those -- file add rate to in case, have when settlement We just our folks rates. -- Christine, do remind we we on I'll don't rates. once just file go rate ahead to raise and

reserve call sometimes So in pending that hold we that. is that your that --

but higher do charge and rates. the -- ahead have authorities we So go

Christine Cho

you. Thank Right.

Operator

comes of line the Gershuni Shneur question from with next Your UBS.

open. Your line is

Shneur Gershuni

bit here. wanted good I morning, guys. Hi, start to a off little

The a had year, had a or growth in this heading end Mid strong you the year? guidance, the announced performance takeaway same range. of projects. of time, X% year, should year, year, the performance have this does is, question to next be You've in strong several But into last the X% the based from Atlantic at your you've you've target any performance on I

You drive some overtime? are the can intimated we share that in there's prepared announced and these projects, was coming return another enough projects I remarks. one forward. about these a help expectations of backlog they that Is there new detail of your high if potentially to wondering see just growth can more more you of

Alan Armstrong

Yes, Shneur, thank you.

First the say just returns to improve. our projects, to generally continue I would

return to regard. industry place the One of But you we've could country It and the double-edged has effectively incumbent as said projects. in off building to a and been, in brownfield. about the it's certainly -- expands pipe the that It overall. in the that detrimental it's those many difficulty expand opportunity your times, you're sword with degree been

not or are always but general, So that that good in least the better. saying mid-Atlantic I these say that we're as projects would as these Atlantic be that returns way, at they general, for Sunrise in returns that just will mentioning

And way well. we about REA the attractive keep to have full. return like but 's we that flowing it's how have, in pipeline updated And projects old there that in reality, in And from projects keeping and many the there question very into always looks appendix. so we of that's same number development we as moving projects slide our new kind in the slide, think the in that of it development of projects that are the are execution. about And

I the off gas see of of you, as areas. systems. from in we're the expansions So that side tell to And will on we obviously way costs, gathering will opportunity with don't well-positioned And reducing low transmission capture just our the much that backing flow well. for

continue long see. our that's to the is it showing takes that rhetoric, up it build renewables might think, it you what these takes projects understand know a to for not people's built. Whether you and to that's they're commitments long-term transmission certainly reluctance systems it's certainly despite or that people, need. to backup our be commitments time to we'll the supplies to load customers base term in listen So make whether that and they going the when and media to what

Shneur Gershuni

to you Maybe priority think of to opportunities same question your priorities. execute, I Really growth, how looking in last to you your appreciate we the Christine's were return we response obviously can doing of sheet discussed than color but clear return question, there. is for capital In fairly There's if at terms the the in time, the here. balance expected. a better over were the

or your is be shall of arrows Are say, of or there would any about capital step-up, return dividend there of specials, around a strategies? thinking the be around the should Just that as in the a one curious we we part payout other thoughts dividend. quiver ratio if different

John Chandler

never, to that's commensurate say I business never steady say now, that we continue growth to maintain our growth and the of maintain growth level but coverage and right to Yes, would there. the I our continue that maintain flow in cash of say continue with would to dividend obviously high just

don't way, by expect did if because So and, special anything some off no asset don't -- we expect one, there's we sale run with that don't the

Alan Armstrong

down compete that. yield for growth the the we'll and our peer that pretty a proven dividend think rewarded security think it well it's And should And and and I expect think we we dividend our was plus trade group. in in structure think the now, audit very durable. frankly, be that. on intent built, eventually to consider bunch think special but durability within think we've And behind continued the to And long-term covered given we this Dividend I growth right utility hard. our that as we've But of and the cash I -- there's delivered its would you durable growth something out. that we sector business in that's our by both or is steady our business some dividend. a then

Shneur Gershuni

preferred the section? at equal you So this all hit investor else buybacks probably returns point, [Indiscernible] if are

Alan Armstrong

we to back We'll Well it's or all And And itself. the presenting it need market The again, if options. shares continue opportunity buy presents laid tell if value generate whether it notes. us does, other through these out I be mean the it. we've to over because will an not. will

Shneur Gershuni

color Perfect. Thank today. much, you the really appreciate very

Operator

comes line from question Fargo. next Praneeth Your Wells Satish of the with

Your line is open.

Praneeth Satish

Good Thanks. morning.

that exactly we further peers, if and could [Indiscernible] win business? are on think Biden helps for customers this guess, or new this ahead pull earlier, on but touched you that volumes your you than you from do mean how assume what the for You I admission, administration passes competitors?

John Chandler

lower don't know Yes. One we magnitude what's the against almost stand our elements orders where up where Future on exactly I of and for required the measures, than of we I stand peers. sector. know we're

we the we're delivery the So way through again, so burner the the of way business. certain way X% sectors the that, in all that's of percentage [indiscernible] those but be as back. all to said, excited and of E&P space, that magnitude I One are that to below below a Future And tips. our allocated or cases, a is of the to from orders X% part a to there's

where to in focused I industry So going other that reductions. reduction that, if he standpoint. you you stand have your of this. love gas get from it got That's guys well, on I might your might to Achilles' really to clear And heel an But but to the methane honest, a has industry, are Secretary I think operators do methane offer be of it Moniz, we competitors don't go was this emissions. advantage believe good, exactly be that. to when emissions we Energy, made what need therefore, hey, after reliable that don't lot [indiscernible] know this on back kind think emissions really we stand we But space going Ernest

we've been mission to a And so that. on reduce

from reducing I think it's think well-positioned tanks positive right. to flaring, And that if the emissions real are in sure reducing we're VOC frankly, s we're the I extremely positioned a emissions we're and make methane field.

I in a space. think and positive continue industry, very these to are be things leader we our intend for that to certainly all

Praneeth Satish

sense or if Got JV that you sense it. projects trying per working [Indiscernible] tied accelerate with on as that basis, or give the to of a that plans? large And just returns hydrogen just projects your Would that. are you're MOU just big how wondering of are development it's reconciliation subsidies part get absolute the a that to hydrogen cost of are. passed. how And the then us bill day the of dollar I'm part could basis Orsted

Micheal Dunn

Chad, And has to project help the front. structure would being potential early an days down, it's in hub get with for been Maybe in Yes, we've still to goes, as and an would Alan accelerating far jumpstarted. they the be would continue pilot thanks things which out, incentives partnership for incentives ambition really needs opportunities, will about supportive -- and watershed if develop opportunity. mean, with also the it incentive in we is project Yes, passed as and say as but Wyoming projects on hydrogen to prove talked question. starting that I question. come your expect support our characterize energy in at if example, We're Wyoming, costs in stage. the without incentive discussed, I hydrogen last the I an structure others.

large very a envision could You

Danilo Juvane

developed wind X fully resource markets wind power hasn't tremendous easy megawatts, if production build electric Wyoming not to to power to Wyoming. it's there's deliver been larger, because infrastructure not outside that to facility, that in XXX

infrastructure We infrastructure other through several Those production XXX to footprint. power build wind of our substantial parts we generation very that energy country. big our believe can megawatts that of can at deliver are We we could have across tied a that pipeline hydrogen move to can we through ambitions. move the existing platform customers

Micheal Dunn

put before think early and but are we scale. very its very but will across some we just one projects by and our they to online where think coming can together pieces and we're but gives are that of start example feasibility, again, the you footprint, one tell get demonstrate I you crawling that's others we're example hopeful, the walk will to I going that innings, we And looking at

Praneeth Satish

Great. Thank you.

Operator

question Your Dounis comes from with Suisse. the Credit Spiro line of next

Your line is open.

Spiro Dounis

Good morning [indiscernible] (ph).

just question, First inflation X different on angles. from

you to side? such sort or the CPI impact any there a sort just do expect are had PPI. or G&P escalators of the cost imagine of if seeing side, some lot on in alternatively, First, then of curious guys see And contracts, to you on your tied probably

how next think about in as pressure into So curious, we fees upward this year head any environment? on of we should sort

Micheal Dunn

morning. Good is This Micheal.

closely. and issues in with chain make got that that what issues concerns of supply and And with business. appropriately. to chain increases, I things we supply and gasoline, watching do sure on component front could nature inflation seeing had are expect, of what early price fuel, business. treating the are we We We we diesel, be of the very lube to in need up And small through are the prices would this we our are overall operate expenses likely to chemicals managed

there several to. But gathering we bulk costs As processing have processing take we've and on the are advantage a need you for side, if side job done them, obviously cases we in transmission really on could our agreements do of and escalators protected years mentioned, our of the good rate now. and we gathering the so managing

our I years a been we've will for job do shape of and a at that. suspect good great so in very to number that. teams And managing continue And

can to take forward we escalators the there's we use in escalators agreements. that believe costs, control that I where but increased various costs no our would that and increases Going definitely and to we'll doubt that cover see. we about opportunities processing of And some there's expense that. gathering see and advantage will year we the have, the And

Spiro Dounis

Got that Mike. color, for it. Thanks

as know gears considered talking And XXXX. focused a pipeline, potentially are some with as well. that the early a obviously, and faster I slightly Second we basin on had served of your of basins pipeline you are the all I at tighten think peers to you out one basin. expected we're certainly another seeing Blue than just about lot you all But know as I gas question Permian. switching that's Barnett

Permian interest Just in Barnett how levels general the curious any thinking on in you're about there? and your nature and Blue competitive

Alan Armstrong

bill, do you, there ourselves out of far, projects mitigation to Yeah. we so certainly that that where of tell that Permian, projects like the long-term part in the or on basis. of positioned in And the We've I end. the but that risk to on big easy are just up. struggling take the today X are but come to yet pipelines get we come kind more always basis with not our risk-adjusted contracts getting risks would issue think market down well that slides, every market and back ignore end are use end, business return on with of we about that and pipeline that kind of a front that hard once back sustainable And on very yard more differential the say you re-subscription. X differential it's just in XX-year of or or for that those and an the mining. they the a we basis out written unit pipeline, Not number of And fit

know be that transportation have there tends will to we for would telling with us towards be the to we take other longer-term so our long I'm not to certainly the that contracts, that returns drive better be that stack. looking than in but see projects capital for the part, ones our value within the you and haul. we will And

John Chandler

been of we received have capabilities the the volumes jagging and And it's from Transco, Permian. expanding

strategy. our about You think project

on, we If we as the sustainable, fit typically to is probably projects long-term you mentioned, connect that focused unless projects are very we that we'll an Then, eye those And will or demand. think long strategy. [Indiscernible] Permian a be keep you at mentioned, strong, tie that to the can Alan know that projects directly tenured very we look on contracts demand bill. as and and I then demand contracts will approved to And we sustainable.

Spiro Dounis

and it. upcoming John, the guys, the color retirement. on congrats Got Appreciate

John Chandler

Thanks.

Operator

Colton Bean Pickering of the Your Holt. next from with Tudor question comes line

open. is line Your

Colton Bean

Morning.

the stake participate circling Would surface wind prefer is or on and transportation the facilities? just side? briefly lease an look to the further back a to electronic to hub, then downstream we're you own willing set and that area Wyoming So acreage energy in the on

Micheal Dunn

valuing of what capabilities. just to think XX clearly, strength be [Indiscernible] for, for a the there have to XXX is I going -- going the of at. And and to focus next -- possibilities. different to on we're We're lot but could strategy The years energy part the a we're next partner we're systems we whether XX -- good not years,

Colton Bean

really capable with Orsted strong, others. like partners and

think certainly make want possible. skills and will investments. our to We're of we're we sure but I early be sense, on it's it to bit And makes so to going these a participate little understand to going where set projects say where exactly infrastructure putting to that I'd make

or value announced a chain. not we're we us so, going power a of the whether providers work And after not not to clearly we're those the invest parts to technology Company. Orsted wind with not We're -- in

is constantly invest, pretty that, it's together. But, come still unprepared pieces I doing on to early doing smart a do certain it's we're out the it R how we're in on to place if G what think figure to we we're opportunities. solar will But, and and what those front, stay all

Micheal Dunn

that. evaluating

Colton Bean

And into there north, coming Pass a NGL then the production. to seeing the up else point it NGL you West, volumes you Are just in Overland bit volumes briefly than from anything transportation there? like more a is looks rebound in to stepped

Micheal Dunn

some production the in already we off systems has seeing is third-parties out. processing really from -- plants. as there assets uplift too here bring we're into coming I'm the there, going seeing but well. seeing our the summer to not recovery, talk that and fall good are think additional been an Well, some on into a much Yes. the ethane I in opportunity coming in increases to from we're throughout about And

John Chandler

should able showed production have the on though up in we volumes Wyoming even in CX. area, out And the were coming this

comes and say the of we the a Draw always CX+ which would came Echo in the I regular think out to up And was I directly well. the in earlier Facility pay Patrick kind up shows to ethane those is what's adjacent Wyoming thing good obviously basis. plant in year, in pricing. and attention of on a our as CX+ a volumes indicator But it's to on better available that volumes to system picked as an Springs, that based

the Glynn. also we there from South so competitor And off the process up pipeline bankruptcy volumes some picked during

as this those flowed well. into And volumes so

been the to coming [indiscernible] really springs at to Wamsutter that able there So equity pick facility up volumes are us. are

of some pipeline. competitor would've equity So a gotten on that some produced would've it of gotten

All not pipeline. our of that into coming is

so you that's that And pickup see. some of

Colton Bean

I Okay. appreciate that.

Operator

Chase from with line next B question Your comes Mulvehill of of the A.

Your line is open.

Chase Mulvehill

source operators this, the or from customers. to responsibly look I really just then if more interest guess really interest here. follow-up natural like responsibly a quick And from constraint but of LNG ask gas. I market everybody. about spoke if you more the during utility what's And morning, you seeing sourced Good at to I'd guess [Indiscernible] natural adoption liquefaction briefly gas natural you're responsibly quicker remarks, sourced gas, seeing

Micheal Dunn

the Hey, and for this utility question. off-takers seeing interest LNG are say Chad. we that would Thanks is customers. strong I from is What both

the customers track to our our work partners seeing the downstream emissions but with gap marketplace to the wellhead only and a mentioned, Allan I with clearly footprint to a flows life full through on [indiscernible] within need And footprint, our strategy extremely hard would water very working in have our tell systems. we're to we've very [Indiscernible] our than you respect and wellhead solution to cycle not within to have to and been and the of of place. work listed a upstream that We walk demonstrate plans [indiscernible]because as been with really a credible

that be And focused several for to we customers. are on delivering be solutions we announcing will our going so

We on understand potential very are We'll front footprints think the modern, manner. to make can truly do I real responsibly sure with efficient partners the shine we several how the we And discussions as LNG admissions drive to most producing able customers. again, we supply. that They looking to utility with time as our have the be efforts because on been source down our team into that over the I and United utility we the credible seeing as marry versus emissions with for working our our their Sequent market. that the developing gap back customers And up that sure want footprint, do of with We a to a think Also, move light customers well respect we the in factor customers where to comments. they're largest, their at the lower where We solutions that having their system right And very that decreasing sourced the we're can they our have we're States. and want in multiple to make very that and is decisions can States. that got system show midstream lines had footprint today. lot Alan's meetings totaled. of circling to products system and we here Transco a credible benefit emissions to focus most of us, pipeline to just gas. we've a way. to point And flexible in going continually over intense the of United even most gas sets the with to in a system we'd had with demonstrate believe providers do are we a emissions time, well We did we've think

Chase Mulvehill

And guess, market? seeing the where in start natural sourced sourced a market gas follow-up out getting Sequent, on do responsibly what natural premium premium think you some quick the not, first than if get in responsibly actually Are out will view gas be today? natural on sourced got you I probably responsibly a better most gas, you will the a catalyst people. And

Micheal Dunn

terms of think in premium. it of wouldn't I

it of the I the be for premium think will you think, going to to I to that demand is a cost that whether sourced -- to in drive, consider terms at or, responsibly our space some whether play. point, become competitive continue gas,

of well hadn't it goal. be as is we water think in natural RSG it terms think way will in premium. would been earned there it attractive -- a anyone an as I our this our think of haven't one few in good well can products their think has RSG it I -- But don't think marketed. and going they credibly wellhead prices we premium. product tag marketed for terms us, to demand gas. yet have reflect support can for gas therefore, of at emission out maybe truly for to natural also differentiate We provide I in in what be no from a say There though don't small that they I and know a and that customers of goals

Alan Armstrong

that a think it Even in in supply. I think the context to somebody that the that's in the for the a that you current they negative sign going of competitive That's up indexed are know supply. it's going an not going environment, that price long-term supply have with to should is about it. is market. -- want to to They're connotation

it [Indiscernible] long-term to gap somebody fast pricing, when would comes people go the the to prove say would is responsively that can to tight demonstrate tide runner, to the say or that I to that you to at are they that going be are prove asking so to doing out. a available the And degree index right questions so that speak, contracts and those going up on the now

something it. the reliable, So even And I strong to at trade that's to got more that something, industry and it's it's behind gone I this as it perhaps about support we credible, as that's but, strong pretty making could good be determinant for got think of part want ultimately that. far that a in marketing and across the space. be think But of point, be it's think I it's certainly data a certainly

And what so focused on. we're that's

Chase Mulvehill

sense. it I'll back color. It the over. all turn makes Appreciate

Operator

final Global. line the with Seaport Sunil Sibal And our from of question comes

open. Your line is

Sunil Sibal

first My growth billion in. that your return allocation of me curious. squeezing in was for question to related projects high thanks And framework. capital folks. morning, you've X.X highlighted just I the good [indiscernible]

and Are of side, think I obviously, think about that gas other $X.X projects then, we be Atlantic any billion big we when in spend? Mexico about, thinking you talked of should projects annual about the on some the projects. Gulf big there

Alan Armstrong

it captured. think pretty I got that well

first I on normal Well projects support gathering to today, dollars to in think going system which deep-water limited. like the more Gulf is right excited though those big billion go $X.X Prospect. the capital Mexico the We're client to about our are Even continued investing we're expansions. spend big the of we've on of the really mentioned Transco, some now

we've execution stage mentioned, the Transco, deep-water a I into that to footprint. that, right development which with would rapidly are our through capital of has of our And Gulf up will whole are on going rate now of some to on and Those laid systems. allocation And come the than really hasn't Mexico years. beyond from about move we drivers primary look you many towards as But growth lot other development out the that in those our our investing starting times, projects. changed moving lot. moving so whole modernization are million list. the projects since base, then not a projects reduction the of say execution changed driver Solar be list really $XXX And that is along a real X of as out emissions we

Sunil Sibal

the X.X think to thing additional of related And right about it. the then could which capital leverage to Got one spend? Okay. to those with level that, come of debt, is Forex kind way kind so

John Chandler

another we on -- multiple stock of and mix modernization -- of will depending down buying If the cost down yield the about. talked the stock in of towards price money just of that yields of is stock would dictate see would that, the of a much how go back higher running on say and we the versus you'll price debt with debt, what our way. our depending I happens a would came doesn't the our up XX-year that allocate be at that the but end range. that came or that we towards drift projects occur, bit If our little there's way

projects. EBITDA that's here And immediate say grow, overperform move metrics, to continues in in the pretty -- metric. navigating on continuing not that not continue you effect so invest debt And as that to real-time we EBITDA. And just to EBITDA multiplying be between. earning pretty strong, our and we grow variables see continues you're starts to -- as just down fast. our forecast, this it's I'll debt seeing are the move our we'll our what as That to those on But if as it's in

Sunil Sibal

Okay, And then related that. to got it. again once

that So is yields bit. when were XX-year buyback And But bond year, XX-year I decisions. to a spread. normalized when think do Obviously, what dividend your versus it's of think kind metrics you look -- your bonds kind the? think about how does at metric [Indiscernible] fair come [Indiscernible] of in a use as you you you about Thanks. this stock

John Chandler

to standpoint, bit a feels on it a feels for a maybe from one like while debt [Indiscernible] going start like hand range yields X.X% treasury the move in this to rates X% little be now. we're hovering probably to

think see papers. just spreads spreads happens front. performing our for mid-part seen. think obviously recent is that So and bit. I though, for performing We the in that -- on what yields, we've well little we'll we're Credit well to a saw demand Credit sector as our bond very I have tightened fairly incredible

going but rates long-term to the with doesn't XX-year don't feel rates, X. like or it think range, probably be I So X.X we expect X.X%

So that's X%. question. probably the your of first do part we How see rates,

feel The that [Indiscernible] XX-year other multiple? part is. question the market smart that not on yields getting we're relative that's signal disclosing your of with the point your dividend what's that to really rate, that's if question be to to And might that

Sunil Sibal

I I anyways. would color. Got Thanks the it. for thought all try

John Chandler

Fair enough.

Operator

will over Alan turn call closing for Armstrong remarks. back I the now to

Alan Armstrong

operations transactions excited hard through present that lot as quarter, driving such joining the some Okay. this are Well, well for a employees for on great continued all of us. work great. occult these. produce as both our that much very a to Company the of executed the Thank that you Really of terrific the around of all year benefits we've

pleasure real great forward to talk to a joining future. doing times in all performance look you us. more organizations And the that for we Many it's to thank produced. so get about And that so very the much

Operator

Thank This participating. you call. concludes for today's conference

disconnect. now may You

The Williams Companies, Inc. (WMB) 2 Nov 212021 Q3 Earnings call transcript