- Earnings call transcript Q3 2022

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Operator

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

Danilo Juvane

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

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

Alan Armstrong

strong reported the Great. the will our that compared exceptional and Thanks, last operations. year, Danilo, results in up thank details JV our EBITDA in Williams by XX% all across adjusted upstream and the Williams great the walk delivered another quarter John period you punchline same businesses through for with moment, and today. performance a all but quarter, to is us third joining driven core of

environment, long signals to deliver natural from gas-centric Our strategy natural we Not well. capture strategy price margins serve approaches Williams that growth the to can assets as have. midstream continue today, our that gas show the delivering our proven this and as large-scale and reason commodity natural as going affordable to but company for long clean, substantial is is weather long-term coming around growing business. results for has we only as work for secure really speak it cycles with demand the the and a and the upside to market These strategy stuck current energy. gas-focused strength term most there's of the it we've is our in

a demand the continues residing We exports for the growth here of share gas expect prices. across that projects coal Natural to natural gas to higher conversion corridor. including and with versus for opportunities and both U.S. the along faster This for attractive gas, and sectors bargain strong various gas Transco pace drive LNG in natural lion's Williams, remains these the fact demand continued abroad fundamentals fuels. of of higher inelastic speaks natural domestic alternative the a gas increase demand to face to

gathering in our of project, recently We other see continue growth seeing beginning volumes high-return our here in in to the just speaking recently. our Access in execution, And that transmission our And million quarter progress Mexico are contracted the Regional Energy EBITDA gas the Energy remains quarterly previously by announced on Louisiana increase Gateway the execution. well like began currently projects Gulf over strong important as intact, backlog capacity. projects $XXX deepwater we're growth and natural operations pipelay projects And with and on to set attractive of we the six 'XX. projects Transco

inflationary environment, many expenses. Our impact margins driving all see contracts will despite the and in current allow that we adjustments strength And cylinders, continues of financial business as stability. on the actually our fire for lift a exceed our to of

noting, current fact, extends debt commodity of XXXX, to follow is on major Williams and recently extremely track including rate head. case, COVID and challenges, a the rate on set to our to hurricanes bolster recover inflation of in transmission current in is environment. Recall well faced the business, our are its cost impactful company our are declining with Also bankruptcies we John producer within interest 'XX. our a minimizes before current some all settlement guidance In of the in benefits positioned customer impacts its environment long-term remain to a Northwest Pipeline on in the challenges, rapidly business. built over face his inflation our in to we note I'll approach time. which that The in in worth that Mexico recessionary case positioned but also fixed business, still business these this of detail are instance, and Transco environment. is mid provide cases, For a prices, via host G&P in section. the And well rate. rate rate contracts of our going raised exceeded our the the Gulf escalators ugly margins reached -- environment. this we well that of we our able more business for

face Our to of the recession. thrive potential positioned remains business in even today

In we XX% expect previously be to the per of underscores into while should And X%. our not fact, providing solid we high achieve call, for that 'XX results quarterly end translating some just you This, are until we is an next strategy CAGR that CAGR our gas of and drivers track near putting about us guidance four-year raised on for again, natural announced 'XX. share our our of EBITDA to financial well will the guidance there think be how shareholders. earnings

go here. let through So me those

that we higher And projects and nearing from of segment, many First flows volume currently all, contributions should that some in Northeast upstream G&P expansion those working. completion. grew the the our growth that Wamsutter to from strategy in details from projects and expect the business, of proving area, provide higher the the weight Trace continued JVs, and the expected growth number do midstream G&P the are expansion West Haynesville and appendix. underway, well up which of In of are in Midstream fill expect as important both we Haynesville equally large and is those we volume in nearing completion incremental But contributions acquisition. the provide capacity are cash our are

under the which radar basins been well, We recently. growth has the expect modest as in in Eagle instance, other for Ford,

term deepwater business, to the be in part been extend of Mexico the further next will develop as that gas likely already In a will upside we represent Eagle well increased of level. We drivers as the of that deployed the bright work also include incremental spot that growth the and well activity our are both drive new be earnings Gulf acreage to that recent MVC above we is assets. acreage rich to our existing The connected business, minimum production capital the volume undedicated which serve. basin from along dedicated the Transmission has here should for this see & some well rebound positioned above our welcome and the here very expect earnings volumes the level longer segment year commitment as

a interstate the an this. where first does our in systems grow. the this include remain Williams interest of is the and upstream fee-based Within that coming will So the in XX% to expect of continue PUDs, those start we've in to show half NorTex to volume the reversion be services towards that that pipeline clear will continued will on it'll gas our business, that's end up projects we retain about and been new the want production of XX% story acquisition stated PDPs. also Haynesville, is included in ownership Gulf quarter, the of The Mexico recently 'XX, our of we it here JVs, Transmission fourth on in our connected will own I XXXX. but expansion growth & not start will the be

significant to Haynesville just JV to of seeing the from to Our get recent begin XXXX We acreage minimize be a will a this the contiguous prove designed year. flowing Crowheart our there we source this what these And and believe, and not this wells is operations the we're those the interest in this, structure excited volume have operations. where reduced. complete is beginning growth from our up remain existing now benefits acreage the does and to the this we're drilling in interest the production of to about program, end, earnings. volatility And In Wamsutter out expect in larger only growth. reduced, undeveloped drilling completion the we much contribute basin, next we footprint, acreage to in and will going

these cash assets been than the icing be on higher-than-expected the will more has cake producing and for pricing goal the and Our the on up volumes of midstream primary getting But reserves. met. flows late these

-- for Williams. expect production, we long-term will find that cash steady the see longer in benefits our volumes cash midstream we growing to Ultimately, the as drilling translate higher a flows the owner further term, rely build free capital into operator JV obligations increase grow midstream on to upstream these cash we to can the net the more Over flows more and a even of flows. which for cash and revert properties

deepwater that X% continued set to based annual XXXX, new fluctuate our X% Energy EBITDA like The beyond rate the large big 'XX growth earnings on the supportive Access at of to Regional growth that Looking long-term clear 'XX, trajectory timing line the of are we coming today. of our but and bottom projects of bit and into see a end we believe projects a a on opportunity projects may is footprint CAGR. given the our

about energy clean think chain advancing value value chain are we as we integrated our integration, Finally, strategy. further

rates enables customers the the to Coast competitive of our expansive gas area. storage low NorTex us power This Haynesville in combined will element our the working fortified are Gulf Our LEG Transco's of from and Louisiana be the for from storage Bcf other week's approval in facility with of strategy offer wellhead-to-water FERC last this critical and Washington acquisition network market-based production a project. generation and storage XXX LNG, facility as Transco emissions to

and to support low exciting includes our in refer delivery certified an also are independent that Resources natural advancing strides the This marketing agreement with we third-party making being gas to minimize wellhead gas. agreement as well verifies are natural that strategy with next-gen PennEnergy end-user followed best most responsible of step emissions, our to We process of the next-gen environmentally emissions as to across manner. This delivery gas another produce overseas. as grow the practices and gas U.S. in certification the is markets to to

to I'll and it year-to-date pause we'll questions. over to then up John that, your for John? and through walk the with open results, our and So quarter turn it

John Porter

saw strong. X performance. 'XX of the performance a increase the we financial Starting of XXXX 'XX. here continues with first third summary Alan. for our XX% adjusted a for year-over-year a increase Slide with quarter Overall, year-over-year versus nine quite XX% on Thanks, EBITDA, to be Beginning and months financial

our on the slides, see businesses, growth adjusted next large-scale Processing core and our upstream Transmission, Natural complemented we'll led by Gathering EBITDA and of As nicely has ventures. been in growth couple joint our Gas by

cash or interest better for our AFFO, year-to-date. line which less over AFFO for from the operations, than from Available XX% flows for capital period. third adjusted quarter adjusted in fluctuation, EBITDA basically increased Our year-over-year based grew quarter and X.Xx operations XX% EPS is XX% flow X.XXx funds non-controlling the our year-to-date. just and you cash quarter for coverage on or nine-month this dividend the Also, the on at XX% see page was working

in to growth adjusted investment our to last improve debt on X.XXx adjusted EBITDA X.XXx. Our now strong EBITDA our reaching versus and based year's metric continues discipline, capital

So with this the combined now to operations for reflecting first rapid in business upstream were results billion a move effect the year our start million. dig the from in joint of let's seen upside segment, and into our which the built the Haynesville next of from year. the of in our Other EBITDA core quarter a and ventures. through we've year's our year, year's ramp April new slide the growth continue little up joint are Walking performance $X.XXX in last that this Since the upstream on came XX% volumes billion, start we we've now third online will to our quarter. this the included remainder deeper that seen $XX strong Again, nicely of $X.XXX our with venture production adjusted

our assets, As ventures our see strategic Alan and of that's core core fuel gathering to we joint certainly performance. Shifting in the what our to XXXX. is purpose related mentioned, upstream now happening in business growth

which or Mexico Gulf Mexico our in of was Transco we maintenance lack impacts maintenance part improved came X% driven 'XX, are revenues, both in last from online to Gulf Operating in $XX of that but part & business of the South Leidy and contributions from the largely improved higher phases Transmission nine Transco saw Our due year. to significantly project, and through occurred million to year. Mexico higher, by very hurricane-related expansion close first XXXX. higher businesses. Gulf in the of plan in costs were higher months the of tracking activities due

or increases Bradford and escalations and cost million of rates, supported $XX current increased including factors, rate per XX.X business forecast growth growth fee were X%, of G&P than driven expansion-related annual franchise. a day by higher on Northeast by total lower our rates lower Processing and Gathering Bcf Our Gathering combination more was revenue Processing for in Northeast other slightly roughly top Overall, offset and service volumes. the that fee line volumes line at our XQ volumes. with commodity-based

We on for the from pretty growth. volume mentioned this level higher fourth the past has plan for continue But to expect EBITDA calls, increase our we've an always as 'XX versus volume flat XXXX quarter. in Northeast been

saw of over EBITDA which expansion the impressive in as to Trace XXXX. volume Alan $XX should and Midstream stronger However, remain April XX mention driven to West, projects. on million closed well now year-over-year which quarter we $XX XX% growth in and I $XX optimization was million Shifting positioned mentioned, growth, or to attributed that several by acquisition, resume another Northeast XXXX, this year. of the million up our the

Haynesville and So Barnett Trace, West volumes commodity even rates, a or volumes that's the well in as price substantially in West Haynesville still continue the without in drove and from overall Trace In the the acquisition. excluding the we increased West, as exposed XX%. to $XX XX% our upside for higher see the increase especially million that

of our million for Next, XX% and or market saw a business. NGL or a Gas Services million lower higher this early This year. we was adjustment of year. inventories late of result to Marketing NGL our next gas in despite & this gas associated taking cost in $X $XX speaking, and products was with storage increase year those September increase our Generally most which sold are when this will or of adjustment, margins inventory out

in growth XX% upstream business upside another So driven with venture by operations. strong quarter EBITDA, joint performance core our again, in and

'XX, Let's XX% move first year. the nine to Slide this generated of for and comparison. over Through at EBITDA consecutive strong adjusted months in three growth look X the XXXX, year-to-date now we've quarters

significant gray, stepping $X.XXX second quarter here of year's $XX our million from first now related component Haynesville then starting contribution that a XXXX third $X.XXX showing winter which in storm in operations quarters. the million So and last we're to from were $XXX the Midstream begin and of quarter the year's first with then Wamsutter benefits to this the billion, 'XX, in and to have more billion moving

acquisition. the and & driven Northeast growth, Gulf has Mexico seen Transmission has year-to-date, and of driven but year-to-date, The previously has higher strong 'XX, West of Transco's rates, overall seasonal growth commodity Leidy G&P versus business 'XX volume partially by XX% strong Mexico as growth impacts by costs. and Trace X% to rates base The also growth higher impressive higher overall year-to-date, first seen Our seen discussed. now X% by flat quarter excluding a maintenance XX% an business volumes, on results Gulf hurricane-related by higher driven revenues South offset expansion operating in due less project also 'XX

future. we & in comparison contributions favorable Services as as X, commodity was in impacted as Gas up our the also on NGL closed lower the the that or Sequent third well year-to-date margins by from $XX margins which by in comparison, the XXXX, market Finally, the result quarter July acquisition million, on is segment higher new and inventories should discussed Marketing as discussed, cost unfavorably adjustments driven

year. months with of or $X.X nine impressive EBITDA of an the adjusted million increase billion So land to $XXX XX% through us the first over

for Before Alan, guidance. a I financial I'll full it XXXX over to year thoughts offer turn back few

segments quarter year previously this in of September. regarding anticipate based third expected share other our the for performance billion noticed did the quarter. including fourth fourth we announced, third near be $X.X you As growth expectations probably we range growth and a year, repurchases to contributors of EBITDA strong third will but which guidance results. our One note full joint multiple on across finish end We the upstream the billion, implies quarter, initiate also high ventures, XX-Q our announced business quarter see we our adjusted previously to strong strong that quarter, other our to in continued in versus $X.X

quarter discussed share did we and we in see we repurchases, on what call, action ready that's in pullback second to on we our stand and As our take September. a valuation,

Our a growth equity share buyback principles level around center considering current returns-based plus business. our a approach expected yield the in of

we borrowing capital in ever have business, We element of Debt strategy. ready our sharp a of rise portfolio more financing costs. information with remain and long-term to helpful additional the debt purchase confident our few are the briefly costs We've I'll so seen shares an than well-positioned also allocation we've in as the our growth some appendix, important touch lately key facts. in but been on topical included on

have First rate weighted average XX.X a portfolio entirely average debt fixed an rate and off, maturity we years. with an of of X.XX%,

well-timed and have we recently continue excellent with $X.XX financial following in debt And Second, of our $XXX notes in subsequent XXXX million XXXX. our of only August we enjoy million call of now October, credit $XXX flexibility billion to issuance will maturities facility. finally,

again, JV this over adjusted as high finish a XXXX So by our near X%, acquisition amount and in and contributions our driven end expectations upstream well as our four-year our about CAGR with XX.X% the growth EBITDA core from XXXX business of operations. continued to guidance, Trace versus growth would to of

I'll it remarks. to that, back Alan Alan? with pass So for closing

Alan Armstrong

in Thanks, we quarter, at call core to multiple face the a John. my the growth business has top that close continue after And macroeconomic that resilient great. that demonstrate steady remarks of built I'll Well, and the have we conditions. reiterating Okay. by is quarter of predictable

in in has met of careful delivered And exceeded Street capital on or either makes employed. XXth we've on very quarter improving as with coverage. XX.X% fact, allocation delivered capital We this best-in-class this we've that is a have capital fact, returns recent the growing we the consensus. In a showed strong a A balance invested in dividend return and a row sheet presentations.

for providing are our create these our Williams right low-cost in the places, fast-growing as gas demand mitigating services it value called while platform customers risk formidable markets, basins meet long-haul to in are in the downside infrastructure Our serving the will Sequent to and volatile optimization our markets. right assets gathering decades, pipes is be and for continues grow that and on that

You've and positioned stand readily to affordable that solve that policy country facing competitiveness, other months better clean years crisis any your heard it that reductions a to But prices in infrastructure future. efficient efforts on world's ensure have gas around and of the so, the energy are will inadequate also my greenhouse up energy the solution bills I'll United plays our our we these it infrastructure to than and access to to is bullish solution energy nation's all and the energy. role fronts the clean, security. move on the our natural abundant of costs soapbox natural on impact available, days, world. keep advocate bullish is high critical unobstructive countries even a at U.S.' news brunt And And me the reform the will today energy grow gas strongly more say foundational to reserves continue at are a of I'll in infrastructure the U.S. and America's and energy inflation. the where We're reductions we gas that solutions proudly our global States comes energy continue low-cost enabling is energy nation's before especially of when appropriate our on and with emissions and it natural The because energy actionable we to and to open permitting the gas feeling we're delivery dependent But both seeing we emissions build-out and ability leadership high here remind affordable play good utility pursuit you it reliable again support actions and both crisis on here climate will Europe, questions. is of that lead and with is The the Williams energy-driven on of of needed. consumers in to ahead. in the for is in home and that, for form bearing having

Operator

from with Jeremy Our Tonet line Instructions] will come the JPMorgan. question [Operator first of

Jeremy Tonet

that slides wondering off Just just with this this the I could talked want from guess, the Haynesville new you regarding here capture. finish that to the kind could start coming over point was IRA here this higher that get over forward project the of And touch you of the be that time? moved big line? and about what base if at also, project scope XXQs I how carbon in was

Chad Zamarin

forward. we're Haynesville. time transport Chad. Thanks, that can see think COX that the will and to of that a site Yes. XXQ gathering we increase to the today that over at basin we're our COX of to gathering COX be Jeremy. from and the Gateway around stored facilities is is moving somewhere scope million the alongside that that large And could project and third credit that permanently the the annual continue install underground. going potential be Energy so in as Louisiana Southern it that of parties gathering helps treating that and in Gateway This remove certainly end be benefit further And a We'll in tons that volumes increase captured The sequestration the into develop for move We project. we to Energy project. X location, the it Yes, to be COX is we'll also the IRA is Louisiana and as project invented project the pipeline, taking COX sequestered.

alongside bringing our 'XX. service and as as of on QX So good really about Lake could that feel it, be which project, we early we're in focused online

Jeremy Tonet

that hoping seems kind and it to there could, Got of in the like it. guys reach trajectory looking And strong, delivering if think assets, does for? were those is they Very time line serve you that getting kind to think the pipes assets if quite there. you're it's if make to I that assets a your divest volume fill production about helpful utilization guys what trajectory, to might And the on you into growth in of I the you the It purpose ramp that producing there? attain for Haynesville. are potential just when pivot, wanted that

Alan Armstrong

I just be on let Jeremy, Yes, -- me clear that.

there's on in First of out I the of market contracts. all, think lot a the of been those forms confusion there

We expect production net -- our net interest production to continue to grow in 'XX.

we GeoSouthern's out have the pleased the a been there. cost so they've performance the and well side. as They've hitting delivery And very been operator with efforts side in great efforts park, speak, wells, been on out to both really on as of their it and so

really out we're excited about there. So their activities

clear, to do continue production to net to do -- we just into our we grow be expect 'XX. So interest

the so been reversion. talking people decline have And about relative a to the

capital flow have the of in be fall continuing fact, about really thing won't the back drilling existing acreage that hard we to 'XX in in our is in but undeveloped in our And operations there. after reversion occurred because interest production. not Our interest nice declines, invest obligations to that the really

terms in up itself though, it. from of in area. ways total a exceed you, certainly the proving looking tell we certainly asset, So in -- volume we is for think it's growth is acreage our sell where continues long objective long-term is and -- to would that that be. to terms got the And today to but -- of I to it go

that fact, just area. really inventory to surface In starting the in of the scratch

we volumes have So at getting all. we eyes are the our and yes, ears out there open, not of but near certainly the no, peak

we've we they big out be. pricing we And had are the its environment. really outperforming And intended like current in upside of so on we here nice, would the it's -- where have accept been exact year this this thought that playing volumes

really of So way lot drive flow upside, 'XX. news the it's of cash all in 'XX and into around and kind great a terms of going free to there

Jeremy Tonet

there on that. you just Is those for And would level production a follow-up Got looking a it. entertain assets? before quick divesting are you certain

Alan Armstrong

we've a than lot to say, just expecting, there are grow think. room I would I there's No. -- people got what out more

informing in other I think impressed by we to us on of is level. the reduction kind of well continue be current beyond terms

had the We So waiting, not that the pace will, continue just we're certainly, if of growth alignment production both with of GeoSouthern the evidence productive on has We there there think would pretty not we've think in But any will if volume the for at performance no, number. of not owner. necessarily. want been out we're out the And I just kind us. point. clear this particular the be terms I you say waiting assured to on we're is

channel we in of the GeoSouthern proven performance pretty of the has already. viability So well that been just of acreage think up already terms

Operator

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

Praneeth Satish

more now. has acquisitions space? envision you the out? widen could finally, you could or valuable? How this In gas in think organically light then fit gas spreads of you storage think become And elaborate Do this the if benefits do right you NorTex of acquisition, Sequent? Do doing with assets I wondering storage out storage was just does more on more building

Alan Armstrong

a for looking just of seeing were could LNG, what frankly, sizable be buyer generation We're Thanks continue today that they of that storage. -- of were market at that as lot the could we we thing. the could power load were believe storage storage, a generation, and was first probably Yes. charge gas-fired process continue and from natural well, of value to to understand charged Sequent were for all, realizing driven up very their as And markets. what through And for in going rates going there. We because storage. that storage perspective, of and we we value Sequent That's to there more customer volatile certainly question. the NorTex, there's And is power think was a that as drive think they and we large buyer that they used to the we and to value to there we thought gas that these and well variability a first recognize of for from as storage. of area that pretty be our have impressed in that

We on thing thing, opening be we an have commented that. week FERC of I get on to work one is Gas Washington to last did to the in comments our Second place do lot put able my from excited a about on order that that market-based storage. rates as in we're well still

get those to last of to rates able process filing to Washington did for a storage. we be to week go important out So of rates, market-based FERC but we have through our the very Gas order go

And deal XX for about very storage. a is gas a so day us. that That's Bcf of working large

And storage between -- NorTex in Bcf gives and Washington that a of area us storage. the so XXX Gulf Coast about that's Gas day

So is committed value of years think are ways out a pretty our lot real going assets there's looking a of for the forward. this and of certainly we value concept. there current We to finding to yes, in be us NorTex the out and extract mission to

Praneeth Satish

look the XX% modest. X%, is we gears. fairly this metrics the only it's and XX%. just there's But to EBITDA but year, and good return dividend is is or on And pace leverage capital -- some been been if switching at financial buybacks, the If grow I side, Great. the on up

year So at capital I this is look return guess XXXX? question is, my heading performance into strong you the how influence

Alan Armstrong

we how answer and outpacing does we been growth, look, both recognize certainly have certainly great and a we the that. It yes. is our we're And outpacing AFFO our dividend EBITDA our question. recognize and Well, that's influence

said also I going dividend so continue with we're say, that cash -- also to that make flow. sure would our along grow our just And our but going dividend to is durable, we to we're we've

it's later will decision year that coverage and So great in question. Board flow rate increase into certainly this made. cash and decision that this growth we to the year, The next we level growth our able a made point. have get be at dividend But the to the

Operator

Bank will with Chase Your of next line from America. question of come Mulvehill the

Chase Mulvehill

kind of to I guess just follow-up. a quick question want and

did. we look mean, at year some and I looking You mentioned of to of versus kind during M&A prepared the when this XXXX, full got a takes. just thinking little bit remarks, you the 'XX you've about of 'XX, of the but forward puts some of obviously,

You Northeast got some stuff expansion you and of E&P that up got gathering, starts you've some the probably Mexico some volumes. Springridge gathering, And have expansion. then Gulf and higher

about missing right, when am how about offsets dated, but And I kind how should for growth in kind then we not should is I always we think we think the guess backward of anything just curve but is of offsets just I offsets, think there 'XX? opportunities? So the -- about the curve the mean 'XX?

Alan Armstrong

question. Yes, great

but this actually. I think thing that program, drilling we year mentioned, JV the putting -- out the effort I continuing that enjoy say I the well will that now you've just that we this the enjoy would Wamsutter next been we've pretty are year. the other we year didn't we completions we're laid into investments out is starting there. have

in as those 'XX the up benefit to drilling well. spending really play that out year capital of we've been so And start will this there

issue. key a So that's

development rich Eagle the the mentioned, going out seeing rapid see some MVC I Ford, will As pretty there. the that gas on in we're

attractive. that's So

a but enjoying certainly that pricing on year terms that is important prices from this of gas of also year. headwinds, it's think us the I realize to amount kept consideration, this hedges extremely In had high think the we I

likely big we're think a probably strip. say look to I I would if so spread. year-to-year, you And be they're not going that

overcome what the going But probably primary So the that's space. we're headwind. in is seeing volumes E&P that right by to be now, from dramatically

think, volumes, but lower our people so price, next to And surprise yes, year. could upside we will the see I

Chase Mulvehill

That sense. makes

And kind guess, explain what's kind power that that, in show much on of happening too an there? kind think the power sustainable related you look do do demand you a growth obviously you how X% could As as -- of On somewhat I increase year-to-date. power of we side, in Slide XX, forward? a kind follow-up. but maybe of is don't demand I

Alan Armstrong

coal of of generators they right that the contracts, year, biggest say price. flip probably probably, of surprised. I lot our able what think a for obviously, and have surprise has price a expired. we Yes. of as long-term two, been the utilities One, don't demand just resilience those gas. in up are would coal back of to would I we not we reasons. was be to the I continue gas And mentioned has really higher the the face And number that the in learned say was earlier to come power the alongside

utilities. coal-fired And so continue think we don't would out anytime coal-fired we natural flip backup to -- you're and going space on, is that generation, a soon, be this this at see to just end to is and the back come kind going of did not think the result continue is to renewables as going I it's take the see where to have generation increases. for of we're seeing going And Obviously, it's gas, of to expected pricing environment. the I what to

So decline if coming saw new gas media, in RFPs the to door, our dramatically, rhetoric would the if in think for you you volumes going think the you're the otherwise. to market listening in that services you and would were

think the are I from the in gas-fired utilities, we Mid-Atlantic what generation and so from strong particularly And continued seeing the demand is Southeast.

we're because not rhetoric, of for seeing we what services for bullish door. remain coming request long-term So the because we're of but in --

Operator

next line Gabriel of the will Moreen come question Mizuho. from Your with

Gabriel Moreen

bigger over to could maybe question gets if about spend just talking Energy another some how CapEx. up legs Maybe there where 'XX Access are frame about that ask 'XX. some 'XX, like clearly and projects finishing ones spread and There's Regional the I out

about year projects? how it the to longer-term this think some what of growth wondering So just CapEx and context these within of was I'm

Micheal Dunn

I lumpiness CapEx. in Gabe, Yes. see calls, it's to as would growth Micheal. our we some in expect, about talked previous

access ongoing that indicated, although ramping construction got on construction whale in next be that be started XXXX. project, the will you up NG regional well as we've we'll we year, As

So -- as be ramping LEG up obviously, well. and will

in capital outlays the that with we're previous those indicated are our past, real keep large up pretty some So in working to hard as will line ramping But growth year. next be years. CapEx we've

$X.X we're to what projects level, billion will that's lumpiness where some you these $X.X to year you see start at but going we're forward, And think billion when so about this big construction. targeting on years typical

can about $X.X very that you on focused with managing billion level XXXX anticipate CapEx still coming per story these growth projects a year. that But that's average So a we're on being on. to big

Gabriel Moreen

NWP rate one case? case, this there's of in a about it that another sort might upcoming you or that going to a rider precedent whether for be And achieved Transco you the some you. modernization whether seems for be like language also in can talk and rate But and significant the be about Can that's that.

Micheal Dunn

in in do order say reduction replace good non-attainment rates make Yes. next uncontested case investment us opportunity the our is to And say have to Pacific us in on indicated. end units. rider, deployment business. opportunity settlement for before receive where higher system or we of those is not that achieving our there on emissions to our And process in sense would Northwest have magnitude horsepower certainly for the the team great number Pipeline or expect for the front certainly being to as you great certainly, that to an of we're We question. of Transco pipeline these I great very year, the reductions. We some that on just us Pipeline compression a emissions implement effect challenged same that And of can into than the front rate the a received the that great replace and approval. Northwest, of it's regulated for significant Northwest now by a but I but as for the right outcome us a by by framework both Transco Great a profile FERC Northwest in these opportunity to well and the there would many Northwest Transco pattern there year like where Transco and program have of areas go the into of a regulators The with would the system as we capital units just we versus with emissions and that go the customers in pipeline Transco. improve Northwest opportunity an thought lot of make was our on

Gabriel Moreen

could Great. out? a got And a if there one. far ruling to last timing that I as litigation, appeal play seems in squeeze transfer appealing. how take Is may as maybe like they're long you just energy any quick the It

Lane Wilson

quickly Yes, quarter, quarter, early work is Delaware’s moves. Lane This Wilson. maybe We the second probably late early third quarter, would Yes. anticipate how even sometime upon XXXX. fourth depending

Operator

UBS. Brian line with next of Your question from come the Reynolds will

Brian Reynolds

CapEx. Maybe about just bit on capital the and follow-up growth talk little allocation a a

going could about of what NorTex, maybe run kind acquisitions -- the talk business base With is CapEx and just forward the Trace growth rate you now? of

Micheal Dunn

is Micheal. this Sure, Yes.

then the this We'll construction also as significant well although Mexico, Whale year about to next we billion, As indicated, next started average going up But year access. activities energy we construction going projects have forward. be year, do to what it's next The start larger I about Lake up be has see very talked think in will project be ramp Gulf starting when construction, pretty anticipated similar and $X.X these year. some calls, we there retail as this to year. project ramping be of will in lumpiness construction on that on previous I've some the

it will in to growth always, efficient but focused very on as we're So being be our capital. lumpy, regard

billion billion So I would $X.X CapEx $X.X on foreseeable for you expect would average see growth to side our future. the a

Brian Reynolds

on maybe then business. upstream And a some Great. as the follow-up of

given nat you pricing expected of a You given the comfortable of can an where of guys constraints profile some Kind LNG update just just that nat gas some gas about just U.S. you're and outlaid as volumes overall some curious XXXX. some if the hedging percentage in the have you hedging production side? give weakness on record recent like into

Alan Armstrong

Yes. for Thank you. hedges right some we now 'XX. favorable Well, on do have

now. so seeing Sequent as they're market. XX% when on look to we'll or around really it's what at that got a the would tell real on we've opportunistically. And right having and that think well. you And that comes I the year those team continue decisions hip our having is the it for to making at nice vantage joined point that's I

a on we be of will to we But continue market, as we in hedges like we we hedge will things just the the up way about requirement a -- say this would that, year, continue any opportunistic fit. to or continue just see did and I we'll when in somewhat I So say see we that. flare we simply certainly take It's particular would we'll don't formula that. have into opportunities for market see but

for would minimum it's put on. of say a to fairly level I So but hedges with no requirement particular opportunistic, be

Brian Reynolds

kind of of Would half a I guess, we be remains be or parameter where seen. Right. 'XX good it second to going expect should forward,

Alan Armstrong

part. sorry, I'm follow quite that last I didn't

Brian Reynolds

outlaid you or of the hedging had Whether is estimate kind 'XX a fair to…? profile of of more 'XX, second kind for that the for that half XX%

Alan Armstrong

the it's Yes. I mean, is I good looking we're dependent would a both gather what's just XX we very good different such the say have going we what read on how on seeing on fundamentals basins. do The news forward. because in versus production markets in

obviously well those we read then fair to as hedge. will fundamentals, good as get use And markets about relative in inform what's fundamentals. well read our going to good if very see the from a see a we have the we that So on we we production that as pricing

forward again, much in market. fundamentals the don't particular on a wouldn't versus it percentage I at -- I as as put is pricing us it looking So the the

Chad Zamarin

volumes. did Alan, which we'll as that really the in expectations, less have outperformed to volumes. But have Haynesville 'XX, up may proven be was we've In in growth as mentioning prove worth the up that far 'XX, our we great. 'XX,

volume And we've of seen so 'XX. less got in 'XX as much result we've coming a into the risk success

Alan Armstrong

good really to some reluctance 'XX given at in we hedge of in saw to a get in based the us hedge want and to caught upswing market. beginning the markets flowing the that actually the of wanting certainly on short didn't that's reduction Yes, that not an volatility was until our point

have the less have we'll growth so Haynesville, the of that. we'll year, In much in that next volume So risk, Wamsutter. not of less

Operator

question next Seaport Sibal of Your Global. line the Sunil will come from with

Sunil Sibal

to opening EBITDA to back X% to growth. just X% comments go the wanted I regarding

next years? kind run rate your assume the we for can asset So on is now of base that few based the

Alan Armstrong

some growth out Yes. $X.X $X.X That capital billion for is bit. we've we've a program of X% level billion mentioned, established when to was had We've that rate. that first growth on been correct. to And overachieving say X% time, would a Obviously, and there we rate as assuming we I quite for that those coming a that just like cases, capital investments on got got big where amount that some on capital is gives very reimbursed some us we're into of very some the we've limited efficiencies providing upfront in 'XX, the return or some in deepwater, large because, growth some of being the deepwater high projects. the capital producer back

there to of this expecting obviously, X% rate. as and returns to will of will general, outsized said, growth kind provide propel better But to that we're X% $X.X are investment billion believe the we and those So kind in growth. Micheal billion continue $X.X capital,

Sunil Sibal

think uptick you the of NGL I curious regards out? do activity? go I or in support And prices this gas into And of Okay. of to pick what Ford, and there. XXXX you're kind Eagle seeing you further mentioned up was some then this to uptick kind kind activity activity anticipate

Chad Zamarin

we But about system. highly capital of on their Ford to Eagle their more side Yes. has now. their I of been Chesapeake the Eagle out they have rich Ford the on the is that talking would and economic market oil the and position. that potential settle gas both been the right say side just allocating to areas in gas-focused to see

two as system mentioned, activity I ramping think, as strong very systems already that asset exceeding gas really MVCs. rich now the the oil gathering behind is the in the well. different oil gathering And system side And and been has there economics Alan system. rich up driven gas and of in oil have we're seeing, We a

to continue as And see so side the we would expect that oil on well. you'll increased activity

has not producer really kind been So and that's highly current there. the priority a the for #X very economic of asset just

Operator

John Mackay come final Our will line the Sachs. of Goldman question with from

John Mackay

the up pick again. to I wanted Haynesville on

your adding guys a You are of lot volumes. own obviously

we're gathering until just over differential and about on. on next basin a of particularly lot get You're of your nine on Can takeaway we capacity months the business, you months. thinking impacts upstream until next on maybe maybe LEG the of -- some talking adding how out we share the while thoughts next XX your or about

Micheal Dunn

front been Sure. those out would outlet Sequent I has any front Thanks as there and evaluating that basin for takeaway anticipated say that Micheal upstream customers' we're not our believe sure connected with the capacity in the alongside flow This about there and they could basin market volumes systems again. our the of made of positioned well out and of our out very the volumes us different opportunities being helpful. I the having very to some only -- question. partnership well could but gathering were of out is nine really pipelines went acquired in blow, constraints well.

So in out as with our getting gas seeing our of customers the we were well position basin of had they feel sure that comfortable We we our gas make based a to our about gas very out as basin out of their customers' the on opportunities of there. helped Sequent. move lot what

get project constraints those So that. we possible make the good none our feel as arise to our partnership. up running of fast sure customers to as certainly We're working that and help or Lake for about really

John Mackay

things more maybe a kind steps a us again, I the there we're just Access? walk me. looking the Regional would for refresh Energy things few Maybe on one a just on you for helpful. last couple from one importantly, state be of but FERC, side, through, final know of

Micheal Dunn

question. once Yes, this Micheal answering again

have EIS the for We as EIS to would very FERC certificate. year. a a favorable was before expect the reminder, that The final the We just was end issued X(c) are awaiting the of July, in project. that

The through We Title us our in for once again public off great modification permits whole Went emissions the are a is better other New some program replace remaining take process, much emissions and and air V Section it deploy for compression outstanding here. a opportunity XXX with permit. is comment This existing to the Jersey. profile. this reduction a

in there overwhelming very the by comment support saw So we very And the for meetings, some comments received that. favorably public positive certainly, state.

well. finally, as it So that We of but then first water come expect engineers that this issue quarter in quarter probably in And 'XX, the end a permit. the as is could here we by year will in permit waiting the quality the This number as XXX the would expect of no a XXX air permit core already just of and State permit. technical for process issues early in months now, remaining 'XX. the fourth that's our had water certification out. for of been XXX We've hand the play on a Pennsylvania to

outstanding new we're be X received of reminder, just any New that positioned project position waiting this things well controversial deployment now. air take we avoid there Energy reciprocating permits compression. as right Jersey in And old So those Access very a for certainly off and to some are Regional the to to compression favorably with on vintage permit

Operator

the for closing At Armstrong this remarks. call time, to I'll Alan over turn

Alan Armstrong

in out positioned as look our appreciate in forward to laying continued interest your and you great we very We're Okay. way now, company. for like. in and right about the 'XX more detail what and looks running we're Well, questions very extremely all thank for well 'XX you the the business excited XQ the we at much talking and growth earnings call discussed, to is

thanks joining morning. this us for So again

Operator

Ladies Thank today's that call. all and joining. conclude gentlemen, for does you

disconnect. may You now

The Williams Companies, Inc. (WMB) 1 Nov 222022 Q3 Earnings call transcript