WMB - Earnings call transcript Q1 2022 | The Williams Companies, Inc.

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Operator

Good day, everyone. And welcome to the Williams First Quarter 2022 Earnings Conference Call. Today's conference is being recorded. At this time, for opening remarks and introductions, I'd like to turn the call over to Mr. Danilo Juvane, Vice President of Investor Relations and ESG. ahead. go Please

Danilo Juvane

we presentation Chief good and and and Chad Yesterday Thank Development. and Zamarin, forward-looking Counsel, you'll disclaimer for scheduled generally Corporate and us speak Officer, these joining Officer, you reconciled John principles we the remark and and Thanks our your Senior morning, important Lane Vice Chief interest review and Operating should at call presentation to today, to Wilson, integral CEO, to President our us the appeared accounting release, Porter, find morning. to press General In this of materials for Strategic you our it. Company. Also statements. our included related that Alan the in joining Financial is accepted reconciliation in and President back presentation Armstrong released Sara, our materials. the our earnings materials, our Also everyone. that on the disclaimer the base afternoon, measures our are This presentation a will Micheal Williams non-GAAP Dunn,

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

Alan Armstrong

Thank you, Danilo.

no gas past deliver in to Our quarter strategy steady, growth was predictable focus natural continued certainly exception. this

of fact, business four by of Upstream In segments our record our as another posted we growth yet operations. quarter JV core driven EBITDA across all well as

quarter business continue ramp with years for totaling and new growth many six records up of remain GMP record capacity, to the projects transmission the and performance to transmission the year. execute modest balance expansion per set X.X the contracted over to continue We strong day during come for unique as on our expected this breaking Bcf to we expect

just when expect execution investor of detail market that partnership focus areas. advance and result, And our our we we which of Trace more tightly steadfast another energy key project growing drive the a this including Context We midstream get expectations to acquisition our aligned growth Labs, ‘XX. Overall, past I'll raising deals with gas with continue Haynesville through through for natural in region, as assets year in our announced closed growth. fast remarkable Friday, this quarter, the to strategy are in further we strong additional to financial guidance our of fundamentals clean business

of previous Importantly, range. our guidance the the of midpoint this beyond top new is

So start clear for the and through go number the an turn of the to our quarter catalysts year John with guidance. for ‘XX. now to it into the for results the and impressive raised a to of And I'll balance growth year over John?

John Porter

Alan. Thanks

Uri. So of winter EBITDA core on here last to focus year in effects EBITDA our favorable gathering slide financial to of storm starting the this We've off winter weather, fueled a or you summary transmission a as start. is adjust performance. year’s seen natural gas we'll including year-over-year X% the And and strong X remove Overall, if see on ‘XX businesses last growth severe have our XX% slide, processing growth. with and next

strength in marketing businesses. continued our enjoyed also Upstream have we Although, and

Our bit a adjusted measure, AFFO digit the more strong trend now trend than the continuing years. this XX% growth in of many strong year-over-year. XX% double seen Operations, up Funds EPS for continuing from grew Available of EBITDA increased growth we've

but cash is AFFO excluding capital reminder, a including flows, from operations As fluctuations. JV working cash

to quarter. cash for X.Xx. and our be AFFO see at $XXX our the based investments capital dividends compare you million, over see on $XXX $XXX strong million you our in of you dividend AFFO on page million, excess we to Also, coverage generated If that of continues very this

EBITDA based EBITDA our and investment and cash generation discipline. our metric adjusted to on capital Our and growth improve debt to continues strong

only a in four nearly tenths a You see year. X% this measure or in improvement

growth and upside SG&A So this to in upstream the quarter. the That and of $XX face $X.XXX should project, this that But statement. expenses and reserved this operation, are combined billion. dig a to our statement, core now of our the noticed Again, know the with next fee you upstream credit operating with part South the strong other pretty performance operating year's another billion in and business, increase see X% new cost We walking year's from of accrual on includes million of now new in finally those on little star the the move of into comment quick Transco’s since associated $X.XXX last the small start And winter business. to income Leidy the year our related driven is EBITDA deeper that severe bonus combination let's face for their just results reflecting a really by reimbursable offset higher Maybe this slide Sequent also related effect effects isolating is our you much $XX revenue, the to expansion and we've million in maintenance expense the topic a were entirely continued from last our payments $X inflation by also were lately, lease business, expense operations. income year’s plan of big gray. may million shown customer control such increase have just million, the here in $XX trends of been that bankruptcy. very a weather and solid are actually our has to related favorable to opening which addition expenses a an in regarding

the included operations at $XX million excluding $XX from the million, on upstream our here were benefits of to winter last year. weather segment, chart waterfall next in other Moving operations our upstream

began $XX Importantly, our from in production April in Haynesville only really Haynesville. no new first this yet so contribution million

is an it's So And comparison of to the full bit of attributable to oranges [Indiscernible] at growth our the a amount apples properties. that.

owned for now of to business February from ones the plan March. and in acreage. this quarter upstream are combined now only Shifting that we last the includes the reminder, BP JV year, our the year, we of a core BP soft acreage first As and owned XXX% But which XX% performance. we [Indiscernible] acquired of

Our actual not primarily year X% the saw business Expansion our phases Mexico versus South from which growth Overall, daily we Leidy Transco record volumes improved does online once the Transco’s And natural for or throughput, $XX continued last again demand. prior the Transmission by as revenues Project, year. criticality and transmission Transco but reserve X%, actual driven of at increased in gas highlight average in million, of came and are Gulf over Transco service. throughput winter capacity, largely

higher Mexico of business. saw margins We Gulf our also in

million, factors lower lower line increase top at a The processing we lower of first year franchise. slightly fee by volumes. our anticipated and annual the for initial the Northeast increased higher were growth base first G&P rate, to guidance, quarter cost offset $XX the or other growth compared increases rate related combination continued X%, of and that in Bradford volumes levels. ‘XX more service of Northeast year-over-year G&P the rate quarterly remainder revenue Our escalation by expect and than a in our commodity quarter including supported to driven business fee was gathering slightly on expansion

in of ‘XX on our EBITDA But increase gradual in the a continues flat the Northeast Northeast to see for ultimately, pretty volumes. the plan versus overall year. expect ‘XX to continue volumes We throughout remainder higher

in over from in volumes driven improvement the In underway stronger impressive in driven resume Haynesville several especially year, a primarily optimization West, continue and Barnett, activity trajectory Alan the for Shifting as and million rest well the West. and the volume or overall second Haynesville. growth half ‘XX. Haynesville ’XX EBITDA out drilling the by rates of West, expose the are the the we higher in we our $XX that see in positioned substantially by in However, upside in and the of XX% will an which expansion quarter-over-quarter more that strong the as to an see drove XX% price the to increase the strong Flint in growth year, discuss well throughout we volumes West, detail. Northeast projects saw commodity to In

in Sequent. $XX of improvement services primarily year. last million produced which Overall, marketing of caused and segment see in this NGL Sequent million addition NGL the Gas by you a both includes our $XX This gas Next, and July was business as increase well our legacy of business, marketing as EBITDA.

As a creates Sequent year when its is quarter this was each typically reminder, the majority And the performance strong team. the for of EBITDA. first of a

of Sequent plus While we commodity $XX stronger expectation adjusted with expected. to marketing to start to expect contribution for business, we've this gotten we million our to this to expect range. $XX segment, off EBITDA combined $XX price legacy strong the ‘XX, this $XX million for year, million a And see exceed million than annual

performance the and $X.X X% to driven above start our upside and billion, year upstream in core strong by again, So in operations. EBITDA another business growth to with marketing

X our at Let's latest to for guidance move look slide financial year full ‘XX. to thoughts

We of each pivotal on share commentary provided financial these but substantial are the what numbers. this ‘XX through February our pleased we metrics, improvement offer guidance go in to versus I we'll in year. some won't a of most

before title million or versus growth start our guidance to from grounded with million. Let's continued and in minus considering Trace $X.X raise plus EBITDA billion plus moving EBITDA the $XXX the $X.XX with substantial adjusted our in billion the the increasing range business $XXX core is where midpoint $XXX our This of minus in million, or is original acquisition. confidence

steady acceleration we the Specifically, the segments, business of from the the continued our Transmission of Gulf and volume remainder through our EBITDA through second in growth West year. of EBITDA some half level Northeast The of quarterly expect with year. and and Mexico quarterly

the note billion our closed $XXX confident results Additionally, quoted and our towards multiple related expect commercial seen now you'll CapEx. we finally, and sources and at including from combination cash the Trace increase for moves a EBITDA. our fourth approximately acquisition liquidity And $X closed on combination the a we the from as upstream on growth a we've exit ‘XX in its thus of rates operations, acquisition Day. far respect targeted paper. which of of remainder quarter in ‘XX page Xx contribution a that last revolver acquisition, to we've of the it the we encouraged Trace guidance with value the other and other by Trace acquisition the remain in CapEx based hand to are week Shifting Note Analyst using growing ‘XX, million Trace down

the You with of case the remain in to either just as X.Xx increased unchanged of our EBITDA changed EBITDA change of our EBITDA CapEx. the our adjusted guidance The remainders portray. capex in steady relation or see debt growth discussed remained the balancing that at in increase to reflecting that I items maintenance

and acquisition at Upstream sustained expectations in dollars our as continued a substantial the as increase from driven EBITDA business again, in by core midpoint Trace our well operations. for So JV contributions growth

So focus I'll it Alan with review to pass key our to back that, Alan? investor areas.

Alan Armstrong

Okay. X. to here John. key focus slide I on going am move Well, thanks to investor on

Our we’ve volume gas this well continue strong this markets. and XX.XX continues LNG play challenge ahead higher footprint. growing opportunities growth the connect to out record that continue was some that in with of surprising seen and somewhat on is Xrd exports higher domestic within cost fundamentals to lowest demand. our natural for record. strategy breaking existing as Transco admittedly, are we natural continue demand loads corridor, And while been much see how out focused for the deliveries we gas driving continue demand the to supplies of day due I'll demand see meet along sectors increasing has as winter to this expect Transco to this million despite January as in to we grow a the to point to incremental dekatherms power to particularly It us infrastructure US delivered supply natural demand cost it industrial extreme to growth prices, world's Transco the inelastic burgeoning

our on upstream rate upside continues commodity years capture Our for term continue And price earlier as stage exposure guidance grow. continued near have its allowing G&P their John of to and strategy driven the we use sitting benefit volumes following. many adjusters thrive the by in stability. the move pricing to I'm latent detailed longer the our realizing benefits to JV business now been us midpoint while to that inflation to our floor and as going of current environment, in capacity billion execute the midstream in on of setting financial by for the by we $X.XX strength our our And increased to term and these

we've Gas along of consolidated to the strong volume Trace and the mentioned marketing balance set with year. planned balance the G&P seeing business strong course and EPS enjoying XX% JV, in at pricing for in first for the another First with base the driver. four volumes growing which of impressive our of X% business is all And some the finally, of as quarter, our recent incremental with performance to is very Strong NGL performance higher and are to higher Upstream earnings in a acquisition volumes we're And guidance, updated from this the CAGR business assets expect performance midpoint. a of now year Northeast of year. of rebound EBITDA earlier, CAGR for expected the that our at got up we and our and an our achieve than rates

have actually the continues well business in this we keeps to on On our all to environment. upside as positioned fire the capture picture whole, And strength the cylinders, been improving, driving financial stability. and just our

at strength fundamentals growth Williams. of significant the a abroad, opportunities Looking in the gas for given natural now US growth, we current runway to and our see exposure of

and First have customer of now our due Louisiana. day all, secured Pathway to South markets Analyst recently X.X high which bucket cost gas execution. raised development we have return now commitments in out into LNG accusation been projects moved the with low Day moved supplies of Project, Transco has since Louisiana of This Texas project the that Energy Texas per to connects index advance this Bcf

continued And Northeast, prices. a and agreements the capacity to and showing Utica growth expansion later momentum to building in Williams year Midstream seek gas our is Trace in close With our And This continue Bcf we number four positions the producing week, consistent Haynesville. and in customers assets of gas customer now rich the or Mexico, more one significant wellhead key our day, from we our bolt-on for aboutX execution to largest significant fast oil drive Gulf in another higher the to which response second Gulf we've last our the these reached expansions will Marcellus. have both held in as we on up under strategic strategy which projects the of in more with secured the this Mexico, In Second, growth gathering rich and in at deliver agreement Salamanca Deepwater the opportunities execute Haynesville with XXXX. acquisition crisply further in gather to position now operate. number gathering basins per long water of two strategy. on now this growing we that

Gateway interest In the are we Energy we given to various its decision project And fact, close expect soon. investment commercializing a that final significant on by Louisiana announce to shippers, project. do

environment. horizon however, the Our growth projects with in these see don't even stop we we as prospects opportunities on evolving regulatory more navigate

gas support concerns that infrastructure. we are process this reliable from Importantly, optimistic that manner respond we a saw to legislators both natural permitting the and FERC to for industry need quarter, regulators in and constructive recognize past

leaders streamlining midstream to in and our got goals. in let's LNG as invest on country infrastructure out de-carbonization, legislative our there a we've have to our developments Obviously, about to finally, technologies. the we key Importantly, the related at necessary opportunities are think build energy of permitting new country's new lot renewed innovation to energy ensure support look focus ventures. And their

energy a support Williams gathering, technologies. A Corporate to fund technology how As with Venture that way VC announced our is startups next of investments energy in by the we enhance responsibly to country. to supply as its solution real solutions, delivery to implement technologies up to leveraging the Cheniere part QMRV transportation and supporting direct the the of a needs utilizing Williams Labs time that gas from And further we're that enable in Context announced work partnership energy development wellhead pilot a monitoring energy clean technology, meet space set generation customers. natural de-carbonization to specifically the collaboration Labs partnership leverage as in for delivery accelerate supply Fund the with established limited invest strategy for of and sources that and Williams’ marketplace, across we sourced of in has our just Energy that recently assets end will the connect and to great marketing decisions on advanced user. Capital is low Also a Context our will well funds carbon a example support cleanest this

positioned exciting strategy. around natural supporting enhancing our of lots So focus and gas all this happening in space things and

So that strategy cash in business returns reiterate steady free improving growth, flow. is a focus and natural gas I'll with has our and on predictable that intense closing, continued built our focus

assets in Our in formidable the grow. meet very are value best-in-class best and and infrastructure gathering the basins irreplaceable gathering that cost our continues serving gas downside Williams assets are and services long extends markets the natural is gas the create storage providing that the it by our platform natural optimization pipes value within mitigating our critical be on industry pipeline to chain. design infrastructure called and as that right And demand while gas across to Sequent place low risk. haul will customers are These for

displace clean the gas should and one of today's as future. it we You've our bullish world. say more heard countries tools but to intensive will both important gas the continue because around carbon recognize remain and the energy important priorities role it play me a natural the in most an aggressively of Natural component be we fuels and plays on critical world's is mix, before, pursuit of fuel to

a facilities. the center finally, And global importance as energy challenge the US open networks and serving for and demand demand play of our Europe, about best natural delivering also ripple we continuing and Utilizing now is infrastructure to with energy, viable domestic on to to emissions to for great a global up the increasingly reliable gas look serve the while in critical connected crisis dual place energy in to that both questions. the Williams is increasing energy important energy and growing And manner. to overseas a critical stage. And has Our will meeting the that, amounts energy our affordable security, scale I'll affordable taken decrease your role LNG its we organization economically it greenhouse of on around carbon basins for reliable clean excited world. gas start affordable US supplies are lower in the in of effects is export

Danilo Juvane

Operator, please open the line. Q&A

Operator

first comes from of [Operator Reynolds Instructions] Your line Brian UBS. question the of

Brian Reynolds

Hi, good of morning, Maybe if bit downside curious was more a range. I a on the bit, guidance you provide the the everyone. EBITA upside could EBITDA to talk and little little colors,

apples-to-apples you assumption look exposure get that, to of the I to main guidance acquisition. seems at Thanks. is Trace like if First have just comparison commodity any addition to there update. changes addition guidance to in the that, add to am really wondering anything the driver in volumetric

Alan Armstrong

of the the drivers you business. absolutely kind as primarily that are based actually, driver are Yes, stated

quarter, on Northeast, say didn't and look is in fourth the first And it's lot being you that even if look volumes to seeing in consider Haynesville our we're produce quarter drilling just level at the at infrastructure just If quarter, at didn't producing really primary but and and a of you EBITDA. from of would nice that Northeast. than expectation in I very third this we're, in is been operations, other certainly the to modest base that contribute fact, the due but a the driver pretty pricing. Actually, this rebound you part, rebound quarter the issues, seeing in our we're active

Trace that those well a Haynesville the the the pricing first not terms up of quarter. this that So is the order the just metrics, contribute and ramp the is with the in really that acquisition that in assumption of first, drivers, going is business growth balance E&P in the did finally, point segment for the and we from value. pretty that for our at really year, And so driver volume is in then modest very the upside on have primary base

Brian Reynolds

then approval the curious on and natural color. a been tailwinds evolving this some environment growth and it gas near-term LNG if of and environment, permitting. comment the in adding that appreciate beginning infrastructure regulatory not I docket Great, Thanks. And for this new on up the if follow was that maybe support you have the as that for year? last is considering curious Williams just may evolving could appears projects pursued there's year, FERC Transco

Alan Armstrong

I in Well, good desire And that we first all, our under are we say, execution. emissions within projects to are list of projects markets clear that And just with reduce they long encouraged six discussion in see that have FERC. their the would serve. the

number have projects I emissions very markets would serve. in so they actually And to say a we're reduce fortunate the of that

so projects certainly out quickly. seeing of support FERC are And obviously, pretty through moving they've the and we been

we're increment, beat, the kind RFPs On and of steady really I from and working a changed that much would of on. demand that say customers just it's to us, continued right with for customers responding nothing now

So I certainly kind reality popular coming increasing. on that on And the various And one you is gas on I that our we're the hand, RFPs is increasing. customers seeing through the think say not it have demand other the hand, side. is from of demand that, notion this will

up pretty the constructive have that the front. And about in is track FERC first the serve. that manner. markets working of And we we with particularly projects we're expect on shaping particularly we level, can are way future And we that they excited that continue. emissions reduce record do think at great So the demonstrate a a supportive, of to we in being

Operator

Mulvehill from Chase Your line next BofA. from comes the question of

Chase Mulvehill

to the FID as to to talk follow morning. that. that. that need you still cost like you you are the I going that expect there left much and like LEG. guess I'm have guys that on up It be you how contracting just sounds in And Could total question accomplish you getting well. to is much after I capacity maybe that good really how Hey, first guess about close

Chad Zamarin

Chad. is this hey, Sure,

over So project, full expect to project, of growing LEG that today, to Coast pretty X.X Bcf couple in over to get Haynesville FID level Gulf have to is for the sufficient that a see we to the need at contracted markets. a next of achieve significant capacity contracts of we half are day commercial volumes would months we

And so I getting about feel is about would pretty good on talk capital to the that going done. project. Mike

Micheal Dunn

cost also Yes, the tells I to And in think executing the on been were surplus in some actual type nice. really can capital that would And be, now. the right that capital line going other now on now quite the that say time investment that that we are on much because we the projects we But LEG disclose so are suffice We're you been the with on pipe activities. project. what are able volatility the will estimates not we've pretty locking of right for we on cancelled really steel to apply the to uncertain. opportunity the I are there. prices large from some the pipe acquire towards fact have diameter very cost some And mean options just us that's options ready returns say pretty projects,

know today. certainly material the the take So we'll feel good now what we we feel we budget have that And capital pretty costs costs. about and about a good constructive, based the right on

Chad Zamarin

did, will partner just the on equity Quantum acquisition announced when we to that an be and the remember we in executed the Trace important and project. Yes, Quantum

partner load bring we a So bit. that'll And the reduce project. equity could our be it in additional in an capital that

of across we'll value work to from So capital and I we the think budget will wellhead benefit full to value infrastructure truly water chain. our project the with that entire on portion de-risk chain the and a creating partners our of optimize

Chase Mulvehill

out that your perfect. all of would to up that midstream one and got we've about The consider water. quick do get if this. obviously, they questions directly wellhead Okay, there on just ever considering follow We export investors from facilities, peers LNG strategy of obviously is right,

export So is, you an to question consider facility? ever my I guess LNG you building would

Chad Zamarin

then follow Yes, the I'd export Alan there's connecting footprint to. water, I'll say pretty a that of and to the on facilities LNG strategy, wellhead existing for focused Haynesville we're start good up.

We footprint. the infrastructure are the LNG to across provider terminals the largest entire

near term, customers is the our are And So our can whether also for those LNG best the focus to customers domestic access markets, can or making very we connect that on those international. terminals. sure our

I that strategy full value building LNG building not upon of So is think terminals. chain and dependent our us operating

don’t Alan, And to serve export our strategy to LNG -- those as increasingly provide today and so supplier our to to customers markets. terminal reliable LNG is access then a I know, if

Alan Armstrong

fairly this down Yes, there's no, I of going project that plenty to I to capacity those capacity to that be today, built some project there's returns to out if financing a of the that very way low pretty like debt get think plenty given lot today make obviously, cash And out. that and to think capacity consider sure in is cash at you space said a think, there's And we is gets that well, trying utilized low Chad, that's great of there that on project. like things returns to but get determined of looks we low as it get costs. might sits plenty we wasn't new that

So capital to that places we they are. better use today can we put than see better our

the areas strong on have focused pointed competitive us out. as keeps we Chad that very So advantages,

Operator

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

Praneeth Satish

deal. you a But of takeaway return get of know LEG of Just contracts Trace just mean are because on morning, to I Transco Good a for on you including trying sense I new you the I how can would evaluating that have guys. question lot on on midstream pipeline? companies staying now you same my a as competitiveness. guess to generate a head LEG start projects, projects? There's you Haynesville. competitive the think the secure is, Thanks. is do it

Alan Armstrong

making space that's normal then on Yes, thanks Transco would higher a and opposition probably be the it's have because would be areas not that allowed. permitting say to very returns pipeline great to much our is generally, projects. environmental the of the difficult we much allowed gotten higher than that in question, I normally returns us efforts than operate, the in so And

definitely it's yes, Transco. on more and like We it. So got competitive. with business Because upstream downstream we've follow

total on projects expansions as kind it areas. today it in position return competitive So makes of our because is high but Transco those bolt-on those not we see of as that kind just the of attractive, strong on incremental

Praneeth Satish

in activity us do given you're Got see you've where could give gathering maybe for producer the increase in you more maybe expansions volumes that coming you need do frac announced, years? the then point volume the it. Northeast, stand of frac like then just an capacity? you positive at versus NGL the update Do any on And tied Thanks. if terms meaningful in capacity potential expand to you And the a to sounds over XXXX? but see

Micheal Dunn

quarter our this across where And Good their of quarter hit in this take increases that exit fourth the rates I’ll well systems. to a Northeast, hurt the new from accelerated lot question. in convergence in execution that of reduction systems ‘XX end path lot of really basin. Michael, the morning, volume driven But ‘XX, those saw all connections of performance XXXX. the our first We year, and great of peaks entire really producers the with that the impacted XXXX, of in occurs by for for Northeast that early in we first occurred wells. then decline is the great quarter the which several saw lot a things a was obviously of was really in that on And of order that a

production freeze the winter lot our only gathered the Northeast brought processing the our and seen production that years from And saw weather this this significant saw producer So magnitude to not would off. others producers the and did just our systems, really impact the but on we in that of be year, and was we that on that that haven't in facilities. systems something by several we of a

We also there. impacts saw some

came their plant online is that volume that from And and of well standpoint, because the a had see finally, So condensate, overwhelms which a levels for that producer significant them inlet did of we declined had then it had facilities. good path production we that.

weren't so rectify they until bring that to to situation. those volumes And they able us

that did quarter. so And producer been the fixed. from some significant volumes But impact in that's that

across items that we several volume the in an end this flat and coming year. between the being volumes now on And big that and all So talking Northeast year, of XXXX the impacted being mode, and basin four and see talked we in from we about have about up rich dry producers pretty we of developed the the have acceleration some maintenance somewhat Northeast. we had expect of the with of but well that expansions in underway shaping the do

Alan Armstrong

flat that to just we're saying about we're to be flat say And talking we volumes when ‘XX. clear,

first it'd So here where are from in be we growth the quarter a for point sure.

Operator

from comes the question next Our Moreen line from Gabriel Mizuho. of

Gabriel Moreen

possibility wondering everyone, for Hey, good forecasts sounds it morning, price rules being now using sensitivity some commodity I are overall. prices also minimums standpoint, getting And gas I if to a with I'm like the off gas just of there's contracts for guidance what in some was net rise now? your price curious, enterprise from guess gathering the

Alan Armstrong

your Yes, sensitivity thanks think released price. on I don't that for question. we've

significance, bigger are But any there Shale, those that of our of are said the of are the with not have midstream ones, but Marcellus two contracts in primary total around kind the as well so a gathering in areas have, EQT ones. There's Barnett contracts to areas provided has of business exposure we total Laurel the we and in with in of lot that that. feature We as those have Mountain the smaller those. terms Barnett

tell the the of In terms obviously just we're kind we that counting year. current that's not it's, I have, on pricing you, in pricing for balance would the of there, the of

very kind one And well and up the so balance remain that kind levels. to the on think hand, of see we're being conservative given the Haynesville these that gearing the I a both and at would in workflows we about it's can't Utica we're bit we expect the prices of for in do, do year, growth the Marcellus what of because we say the seeing

so that be And considered things have two those I to say jointly. would

Gabriel Moreen

about there's be, the you not market. current out like the FIDs clear After, maybe to footprint feeling your too ask And relative on of want Haynesville. where there to I other one you're just in if I are it. some follow hopefully, how future think Got there up just on a assets, distant that kind can

you of So could kind kind offense. here, some room sheets as just maybe I to play your more balance speak you to that of giving think more

Alan Armstrong

we've usual, going to timing standpoint. served of of and at the Trace, In done that as a and picky we that that, from and us case kind Yes, I be just would we're well. patient caught we're say,

opportunities think can I at great going and terms as unique us which we LEG well so picky and them we'll of we're think LEG fairly in got how growth. was between kind Quantum and pop of a caught of those to add our for and LNG as I about significant timing, not at interest Quantum and to an systems because look where that will we've via wouldn't considerations to as to access we we I continue both we remain to everything up unique Rockcliff they had in value we Transco say so markets but our points patient probably look they're we valuable choose that had with will, offer that environs,

Operator

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

Jeremy Tonet

morning. good Hi,

you impacts any cracker online, and pivot shell see to production, Just you producers do is it's going this dry do or could Or areas? do really prices? still more that -- rich liquids you materialize are with your higher to East and higher it constraints demand for through now NGLs? the next starting bit wanted coming how have guess Just I think, how year production With Mariner you touch think wondering here. egress Are year Appalachia up given there have on how gas or wondering you they -- guess more on egress focused like more seems now given a the shape just conversations when towards the growth think outlook I

Micheal Dunn

Michael. Jeremy, Hey, it’s

growth close seeing we spoke additional in the comes working unlocking expansion volumes the rich got sides increasing in underway system We've our gathering with acreage that so can both benefit line systems expansion both that Chesapeake an we and years rich we're there. [Indiscernible] ’XX have the of are is through rich dry rich Cardinal and those the that expectations the to Northeast that access are [Ancino] of and in from both they being areas XXXX, We found on the the they dry who -- between producer and in have really ago. of so PA They and of done Flint proximity in for and dry. gathering have the

we it And systems execution will capacity come when online year Grover have digital be put that honest, capability been of in those just we're so from and available. so well, becomes locked system taking taking latent volumes just And capacity to interconnect next of our they're so increasing of to then to advantage those at some and and the move gas capacity but fact they'll out the side tied and hit ’XX definitely being those WTI. rich OEM impact we with growth said coming in condensate weather [Indiscernible] I processing of pipeline say to into production from the we now winter the I are we so would And some that into complex from are where as seeing excited the pretty support NGL with [Indiscernible] prices are as earlier right had seeing systems. our advantage

the our working link full interconnect capacity so utilize some opportunities it’s vice will that we ultimately, unlock available that and versa, there rich there grow OEM our to we're on Racer to back certainly continue are and Blue volume. additional system between so now when can We and and systems

Jeremy Tonet

at in just impacts gas strong on this differentials. you the near gas assets on higher monetizing given see thoughts here. wider volatility Thanks basis through Center, higher of more a could. given ENP William the operations whether that touch and prices, more this bit wanted Sequent And prices same maybe term if I the leading it. you the net kind Got Do driving price for prices And to time, little in Haynesville, more, to these backdrop? upside in higher

Alan Armstrong

in going you you, while for our really allows supplies on Sequent, to really, an that teams how opportunities to been with into impressed on then aggregate commercial Sequent exactly solution the and I've optimization, transport so I've the start certainly what Yes, way us I'm if time basin end be to crowded have is been being Jeremy. tool from to a great quickly a impressed of working get some an that's run together for. to I've I question, have probably will that have tell the your to teams infrastructure back volatility way Sequent bought business over go capture And together powerful pretty the is us and for and of in that think starting turning standpoint turning in expected the to into into we very And the the -- about come question the been there, get for to and they that materialize bases front.

not to the need optimization quarter, a as of in of up export. think about of relates gives volatility get capacity then would the basin, that, well, and seat you really then it's near that according dealing front excited in to And but of those nice us of as that us seeing that. first what and out I to and basins, allows plan to just as supplies strategically infrastructure say. Again, aggregate And optimization, for just for course, here that solutions then has some it limits the in Sequent so gone I grow. intelligence us critical really terms markets basin, becomes So the the as we performance that doing capacity got with in that

so monetization them those we to to, powerful volumes getting of incense today the depending our on the solution regardless which of the what that very primary much a On than incentive on to structure goal Crowheart and for the is dramatically that that then obviously environment more us remember midstream to long prices the in that build the kind starter, first in with pricing real which of question asset through looking up cash environment. high EMP grow and of durable flows And business, there built have value current margin the that back cash volumes. us is margin we're here for, is there exactly that of

volumes intact. welcome remain that monetization, we up that we which focused getting So in the before may built about the on step very there. basin think And next of strategy remains very would

term. out not operator incredible the On going been is development we're very except in the lot and they downstream they've the here doing well in terms similar, excited that's are really angel the undeveloped on side, cash but what of have volumes the gas that the an the us this of on we transfer an to drilling existing that mean structure, managing credit operations. for on done by want assets margin both job, as as the in near we'll the GeoSouthern here does longer pricing to see over the that way reserves, undeveloped -- them as I give the term, And as but acreage to there strong get and a responding just somewhat from that producing in to and environment

not going near very catalyst be is term much transfer over more acreage attack just ability in quickly given but Chad? that undeveloped the but the the value extremely Isn't are So over undeveloped a will there acreage producing the in in But both will acreage, Haynesville, Haynesville going and to to acreage the drill to the in GeoSouthern some those that growth of out time. well. the for of obviously be transferred

Chad Zamarin

pace Currently, there the undeveloped on we -- the at Haynesville see interest is at that early the our position pace, reversion that and in XXXX. Just running of on three there. in occur sometime would are that is GeoSouthern

the kind self-fulfilling a it's Haynesville. of So in

happen that'll naturally. So

Operator

Michael next from Lapides of Goldman the comes line question from Sachs. Your

Michael Lapides

can of question. remind this sure want for quarter? on you us you what Sequent One do to I expect contribution taking one, my Hey, permitting you one full term year? make one, citing the for modeling first what I and and the kind one guys, was thank the correctly, just And modeling the caught longer in

John Porter

said means Gas million Sequent for segment marketing speaking are strong given the $XX though, combined is first business overall start that on NGL -- and and million a the that We we of the run in in at What legacy quarter, produced million run a marketing our rate normal $XX $XX rate we've to that range our business. our that business, that But rate. ‘XX $XX to the what a of outlook $XX marketing to is for seen, combined the gas likely exceed NGL for is legacy is and and Sequent normal targeting we'll overall run rest the our price million we're for ‘XX. of and million sort which now

Michael Lapides

groups a you LNG just Louisiana a project do messages of others of terms just the environmental but importantly, desire are policymakers, revised in board there's make in what already the to over some onerous the of in process. terms saw it and of process And that in the citing longer more a we the related strikes citing your it. the the saw a term, development amendment has DC or curious EIS. couple actually yesterday, asset the an either for or think little asset the I license I'm permitting infrastructure easier permitting And but front, time, discussion would things of weeks, from out kind infrastructure? more the of know Got NEPA that gas just the in about me lots then for that from requirements coming which that across of for challenge infrastructure, doing gas on thinking and can administration we permitting make

Alan Armstrong

question, say, about a sometimes that not regard and certainly and is and knows the Energy model we're well-oiled left machine what hand talking some first FERC right very if got Committee. Natural And study a that I instruction the hand I'm there we the not great Michael, sure of that would from that Yes, clear lot. doing in all, just Resource

administration, wonder don't would that was the gas hadn't had out, on on for really you much about you like the a a that and that very that desire a on familiar step of have yet a path I was step certainly a FERC of I permitted, backwards. communication it CEQ in to it set need with on issue definitely helpful, that that think given not little step but lined but I kind the EIS CEQ -- wrong re-licensing So enough direction. was am that but that out. was that. natural really that the impact within Trump the it was for the certainly have I comment yet The mentioned, I'd administration infrastructure better the frankly, backwards, was really if that wonder terms activity I and come spoke get previous but comment helpful getting in if

think the permitting. the administration, desire work. to amongst yet, just committees we responded have I'm to from But Senate sure there's of just from the that say, that hopeful, we a streamline and So yes, key certainly everybody's moving some direction given see hopeful FERC that I'm to. we'll agencies some in I'm lockstep very that various but very the that see -- with to not

Michael Lapides

policy the et making else following just and Here the cetera, a taking lines? statement, changes to comments, those or something along draft

Alan Armstrong

that would we the mean, of saw a But there Senate well, have there. pretty issued hearing I post pending couple Committee time well positive. the say been some that things held. Well, get of a yes, I quickly lot as certificates certainly, for as that's

done reduce serious indicate commissioners to that’s the to serious --. And are thought permit ability they about trying emissions responsibly, so about stakeholder being and thoughtful those with get very that intense discussion projects very getting permitted we that good various think And was have very constructive. engagement. that we really our within They're including are that frankly,

Operator

Salisbury Your Bernstein. Jean from of the question line is from next

Jean Salisbury

do turning you wave go out front next is [Indiscernible] with the Hi, the or good but think think run close, of out on? like come before it projects it's maybe morning. Haynesville And year? next not that actually how Do Beginning you of close today? capacity that will

Chad Zamarin

Chad, this Jean. Yes, is Good question.

today. I the relief need markets that though, through the it wasn't couple would Haynesville, note to have of we built just I does capacity next takeaway see angel probably think traditional providing that necessarily capacity that that years. the gas the the

markets, gas of Gateway project Gulf Louisiana targeting which is LNG that it's project, sense, markets we So from the industrial Coast. getting lot most why on we our for makes the growing moved efficient are in think directly south path Haynesville grow the a to the to not in

But continue we next of the projects So over to will come in see see to timeframe. capacity we for the do X.Xx online that the sorry a growth couple Haynesville need the allow XXXX-XXXX, years.

Jean Salisbury

of the all related so takeaway of the Great. We're like the starting strip? And the sort gas major activity basins from obviously or tier up. current That or the Are any called on tight to follow databases. Barnett of Flint set two lot sense. in tier of increase makes a kind a planned then interest from getting see you gas one

Micheal Dunn

this is a for got Rockies, Michael, at We've we are of the capacity. lot Jean at capacity Yes, example. available

move historically Rockies of some would say activity So gas. Rockies pipes to gas the move with I uptick see there were you'll out those of out in that built to that

a two. And we have tier you certainly opportunity there, called footprint continue large to definitely those there's increase from So basins in Rockies. to that the

mostly optimistic that's But that flat some more that. it’s in urban the with we're Barnett. well. very growing are seeing our the on that drilling been rate being we environment So out have there of But keeping as in us pretty that's drill about production to to systems in the of Barnett and slightly with seeing drilled activity there. most we a tough lot pleasing We're activity some structure is there, to

takeaway prices they to available, going some us, and with So producers happen. increased activity continue capability the as these think I see you're for if

Operator

Seaport Your Sibal next from Sunil question comes from the line of Global.

Sunil Sibal

the good clarity thanks And Hi, on the morning, folks. call. Yes. all for

fund, mentioned returns investment the gas wanted in So energy in to just curious, and about if back which terms on threshold capital could clean talk monitoring. to I you of was I on there was for that? and the size go opportunity venture greenhouse the

Alan Armstrong

is an a modest powerful tool do important the gas from that for being work been emissions, large going it a amounts considered ourselves in have gas tool natural we now those clear be I be that, absolutely because be the regard. of we're to would that overall the right term pretty our has emissions but and screening is in do we And methane it not with and long pretty about regard. think greenhouse is where essential think at differentiator, process impact capital, we've we're on very Sure, think chain gas yes, to positively a capital just buck want tight investments, in and putting that that we powerful value and reducing change. we And reducing most to natural climate say,

and our we long way in ability dead front, about that serious So making very to to responsibly think the an unassailable are important certify sure that's sourced in on gas, QMRV we run. be going

And think of so capital. solutions are an day, on we wait trusted. expensive trust. of end that's the that lot whether But we to gas unassailable that efforts because they're be really certainly can think to making around developed, at a that producer, they're But sure solutions that it's our front. or going NGO, for strong really the And to we it a those not be can big we be have going super engaging good organization sit and don't there's are not and people

very is And right space now. in the to And so of but we're that. want capital, not front focused big that on we it we're lines on that, investing be that there

amounts Obviously, targeting not more space facilities in business, of we in like given available drives load that's In we're we've capital, around load to here. return and of got merchant That essential well that higher on got and that returns lot areas serve reduced fact the a sizable place. we're the those we've component, what investing our the already renewables own in returns are mid-teens that's there, terms the the we our projects. that aware solar of that, the but today, are capital of the on

to So you if Chad, anything add? again,

Chad Zamarin

proven the look venture business, capital venture existing not you that of been and couple core we if have capital investors smart at investing fund, that's funds. is Yes, on alongside our

the to the Partners us over actually investment so will in and that minority we then money achieves finding think they investment all alongside are make markets On the who to again -- of allow have work we're sure investment having how like and highly to and are really know Labs small investor so to solution and get Context the bring which and Energy we're help that and market a investor to the so technology develop technology very to the approaching best investment that technologies we good strategy put that’s largest the RC I want deployment de-carbonization of significant we relatively table impact are at the understand platform partnering investing achieve that that really the in to can how does promising and strategy. direction credible it goal that influence platforms how trying these we so with

Sunil Sibal

one XXXX just player is for XXXX. hedged ex prices up of about Got I you and end think it. Thanks And to curious have the thought I follow for you that. or mentioned was how production gas that -- that

Micheal Dunn

question. Yes, Sunil the thank So, for

beyond have above Couple Also don't generally don't those we volumes for on to a that guidance. exposure original year. been of much we hedging upstream about really intend the production our program really do we guidance prices street businesses points, strong underlying that versus environment been in Barnett though, materialized, direct favorable as but do pretty those in for we're originally volumes. good expect will our those volumes floor, discussed exposure what especially original and have with pricing making of is well contracts more hedge at this Day focused investments really current more already the because significant As Analyst until our hedge gross see the the original discussed, seeing, XX% were, the production. push operators expected plans upstream margin, the dependent and we're we've in We those at supporting portion protect to capital we in we those the than Marcellus. our do prices expected volumes of plan, a as We future that we've on than upstream that and XX%

also with prices the Upstream us gas exposure contracts JVs. beyond to provide those So

Operator

from comes the Kania of from line question next Your Alex Wolfe.

Alex Kania

you being on sort from from of a sort but chance above do follow legislative you've think the thanks. talked just of kind able be a some got but you've this incentives for solar kind of commerce then kind on to of maybe impacting focus gas. policy, on Great, seeing with sort Maybe so up any agencies, And that or or kind it's discussions that your, of more there's a whether energy future work department also that of kind of a all question, related thoughts policy, million are earlier I about you of coupling placeholder kind may of of review year, the administration, on that is for solar an natural see on years? done of $XXX the the clean kind guess, kind impacting maybe this of of we strategy

Alan Armstrong

question that, take the Chad. to hand I'll and part of off the Yes, solar first I'll

and to and all, of get to But timing to would that, thankful issues, and my People thoughts very on I to be attention normally, a very, movement not. Manchin solutions, field well of an forth been that think some to void energy to up policy, very energy very get immediate crowded actually some positioned had actually policy and an drive think and seated be Senator with on question, the is come us right, Because response well the I the on to any of hard policy. or say I'm would just has I he would for to we've policy would First energy putting energy been question all policy. has that. would whether

year which, own well geopolitical or a our as that for of benefit wish getting some think resource way for us our really continue we that I hopefully, country we obviously. had aside country using is would on and And I tool, we're the both set powerful the as so economic a and puts clarification I to natural in going gas stand a timing And in legislation think think right driver that. place as that in the some ways powerful next our to as so,

think I the I right. for so that advocate think got really And we've And Senator is timing good a Manchin. in

just to hopeful on Chad. I'll I we're turn would say, the front. solar over question So that very

Chad Zamarin

solar watching Yes, And proposed I our and solar. solar focused for would more we're we that in program is discussions I remind expensive the standalone are utilize facilities that will incentive regarding than we install. solar that you can power cases structures watching on is where installing just many tariffs, we primarily that say

so without we're And compete primarily of almost the pressures are of seeing. frankly, of some by driven solar incentives, our ability to that, investments -- projects are our irrespective and even that we install the cost economics

higher are We make solar prices appropriately. subjected to we for date pay projects So about that on $XXX say supply we've kind eye than year, as the demand time it much we of keeping that constrained close to don't that so time But we no to we're I I'd materials say chain we policy our by not to because a issues. relates have, install issues. this so by and to issues, will talked sure affected are going facilities, certain those million get we caught need supply the under of

the at keeping of side And currently least keeping underway, eye that kind that a so the are for we're an things, chain much of impact, policy which bigger has we're supply a eye the then on. close projects think, we issues on

Operator

turn I Please the over would and ahead. President call like Mr. Armstrong. And to to your CEO, Alan go

Alan Armstrong

see to year. base as people business, the add the are And finally, think of this And side nice And tie out powerful. that Utica will we've we the the growth really volumes powerful the long I you tuning E&P of be to I or great the end will discussed, the drilling of up Haynesville in value of later the the are very as want there. the starting everybody year Haynesville, really year Thank or on we'll as year, there growth I and that towards one business, as the that operations towards for that. set reiterate in just got year across questions. even course, in of obviously, earlier, appreciate appreciate here really Deepwater our this this we and this base then Marcellus pick our and of for projects that power the yet a driving couple mentioned drivers backhand evidence side. very really is haven't the seen today business out the end strong on well balance much, and see to of

of year quarter out ‘XX. by And really because was coming well. and definitely into area driven a balance earnings first really that, So the of that not that's as attractive

And firepower to of drive year here a that, look to a to ‘XX. whole you balance lot the forward growth I but and of quarter, today for attention great you talking and of your with soon. for left lot into So thank

Operator

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

You may now disconnect.

The Williams Companies, Inc. (WMB) 3 May 222022 Q1 Earnings call transcript