WMB - Earnings call 3 2023 | The Williams Companies, Inc.

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Operator

Good morning, ladies and gentlemen, and welcome to the Williams Third Quarter Earnings 2023 Conference Call. [Operator Instructions].

Now at this time, I'll turn things over to Mr. Danilo Juvane, Vice President, Investor Relations. Please go ahead, sir.

Danilo Juvane

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

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

Alan Armstrong

us All and thanks, right. Well, Danilo, joining today. thank for all you

shows another accomplishments delivered first As quarter our execution. here our starting and slide impressive operational with out of Williams

execution teams our and ahead project, the So needed affairs government beginning and project capacity half of this revenues the schedule, here contracting the full to Access initial of team First Energy late place in Transco's for service well FERC in and of followed October. with completed authorization up and Regional commercial rate all, first our

very and our area. by great in So efforts great results a teams there difficult

of the Marcellus We markets. gas the capacity the next day Jersey year cubic from be to million of expect with the New part into move online total natural to fourth and the a feet the project northeast in quarter of Pennsylvania, approximately Maryland XXX

the Manfield our to new nation's to gas completed for gathering in the of generation expansion the area. our gathering completed fully our expansion segment, last proud acquired I'm Southern, line GEO West system of enables to a Cardinal that our several completed Northeast, come producer newly serve And year. we contracted fastest-growing including other gas-fired on system say, first in gas storage Gathering also expansion transmission in many in we was a We Haynesville projects, And which the South system large markets NorTex station we that rich We Southeast project, in capacity And to follow-on quarter would agreements fast-growing result Encino's provides the have a recently be the Transco from new day Station drilling season a operations for Enhancement really from project's project. takeaway markets. open Bcf Utica -- future call. news this the Mid-Atlantic the gas X.X window. But Supply condensate results, for met demand signed the precedent more XX on comes in our XXX even Southeast the over of which based in and in the big to likely that directly

urgent process for we customers. project proceeding to So this due initial met permitting to are into first group the demands this the of for be

agreements for MountainWest terms from for yes, Williams than EBITDA the would precedent of Basin I'll more Sunrise Pipeline And our impact, on extension, our of project and, XXXX. recently Atlantic project Northwest remind a largest in XX-year are than this Pipeline which the these be Uinta least starts entire up, And you So generated a signed anchor EBITDA our we through the ever contracts be system. system. the time at fact, will that addition shipper expansion in even significantly more from

growth the see planned had to We the we Mountain pleased we on than originally this continue integration our opportunities execute the with successful with operations to be of on. profitable assets very and asset West into more

this of Pipelines. acquisition. And of this on neither the business is the forma which we this In signed expansions, that fact, second our neither just of pro these were MountainWest of substantial these up have in year piece for

we from with MountainWest very grow that acquisition date. the pleasantly and pleased have Pipeline to leadership to really surprised but So working that team the with business,

our high-grade on acting are will further of portfolio Moving across we slide, the that assets. opportunities believe we

XXx of expected our important Williams along judgment XX-month recently EBITDA. proceeds this its of in a recent DJ following represented a all, over million for proceeds of last adjusted transactions. from an help cash, legal in the multiple will sell and this fund strengthening our Ethane First with Basin asset system pipeline hand with our Bayou $XXX sold The from the

the that. acquisition KKR's Range, of Rocky acres of Mountain processing ownership First, that producers Midstream the the interest XX% north just gas and us in LLC, results Cureton owning to whose XXX,XXX our and XXX% include of KKR assets system; pipelines dedicated now are serve plants to X purchase Front second, of gathering which in the existing across

a Rocky in partner our times coming to been agreements those there, was but Mountain They've partner exercise Midstream. KKR great So via it was that.

have pleased Mountain Midstream. feeding So volumes into this our into with we there. them there our allow and exciting and gas had KKR expansion But will our have business deliver really partner us great to assets really out relationship existing is of Rocky the including to that taking supplies an and a we're downstream

excited have adjusted the really X value $X.XX acquisitions So combined 'XX of about a billion, represents a this approximately multiple and that. These of EBITDA. times blended

the here largest transactions end and progressing tangible the us and just NGL downstream third feeding gas Basin -- are transportation, existing the gather enjoy serve. top of the the again, to So -- then volumes downstream strategy close the storage. very expected the us, in these are DJ to them 'XX, we NGL to the positions processing by the our maintaining take synergies can of fractionation coupon basins clipping making because in towards and we Williams are These company's on

Department finally of ability gathering advance are processing region. hydrogen Appalachian the and capture forward and Ohio operatorship West space. this of Virginia more We're operations the in Energy the in to commercialize by important and due So hydrogen area. And over to X Blue our system last and just clean This in operating the later and right a synergies to is a Northwest this in our continuing year. few quarter. our one to cost this clean our of to way lower month. were Racer we're to on other looking that and One of the emerging lastly, between hubs other the taking items significantly our We announced easily leveraging through into expertise hydrogen efforts Pacific support hit

from will Looking delivered up financial of quarter of at lower in into details highlights minute, obviously get another we've quarter. the quarter gas some third financial here Year-to-date, even of John of performance dramatically EBITDA our compared more prices overall, X%. the adjusted our to the 'XX. face in is a but as strong

performance EBITDA. us with to expect versus EBITDA X% or line are quarter up billion X% Our $XXX adjusted 'XX by beating raise adjusted tracking that first also the EPS there guidance same EBITDA fifth the of continue, have And XXth gotten And volumes gathering the we our this are with guidance. the time, annual X 'XX. adjusted million the growth months to our haven't by period. to and the our we providing during confidence out strong of we up X% raised And meeting point and the marks is rate, quarter of consensus. in I'll up this guidance first $X.X adjusted And lowering XX% quarter, to we

pandemic. guidance our during the have this through entire that In fact, not we period, includes and lowered

deliver execution cycles. to to a our have on commodity strict by continued So team, to growth return in variety improving predictable all commitment strategy, and our our capital of our summary, through adherence extraordinary an employed,

financial Importantly, significant walk that, value this and of Williams to John growth through things discipline future return the our metrics position us with has to going also to to turn capture the shareholders. And quarter. this to I'm over

John Porter

financial All It increase Alan. joint marketing base X X% performance performance. here year-over-year year with business by was Slide our quarter. define a the strong right. was prior our over business, Thanks, we base as summary excluding ventures. third Starting of which our upstream That on in a

XX% upstream prices as base As we'll saw comparison marketing a EBITDA we adjusted for in our did infrastructure of grow perform growth well, and resiliency strategy, joint again natural strength well once X% did very total the our it our of driven our year-over-year 'XX commodity businesses of the total continue by decreased months months versus X%, which makes as as XXXX, EBITDA favorable first third the X is gas-focused now even that of a prices increase demonstrating capabilities. for the our up year's ventures, very natural adjusted X still tougher moment, gas which business. Year-to-date, for quarter assets in but total for core discuss operational and to last first and

number, So very our flow. slipped had quarter, third but strong third you was grew Available flat generally years. from X.X%. very strong little you EPS AFFO the over year-to-date, was up on on it's from growth we've XXXX a coverage with continuing dividend strong see XX% many can operations last the in still And bit for a dividend based quarter see EPS strong that cash last X.XXx that funds year's a adjusted

balance sheet Access Gateway. see adjusted Our some Louisiana CapEx, progress X.XXx. our of key with last an On reflecting strengthen you increase making projects, and debt year's growth EBITDA Regional now primarily we're reaching to on X.XXx continues to the including Energy versus Energy

$X.X consolidated the regarding the $X.X from few color I'll year expectations So the EBITDA for $X.X continued little to a billion. business, now million on up our midpoint billion the guidance we to to beyond billion, now provide a based of confident XXXX. a remainder raising feel outlook $XXX $X.X In on the financial shifting adjusted thoughts our strong moment, performance billion the of and

the slide turn closer a little and at the results. third let's So look to take next quarter

business natural You the gas see increase decreased XX%. as X% X% even quarter strong the prices in over a but a year, our prior base for average increase third overall EBITDA

joint on Now gas the prices revenues. and natural even a upstream decrease business, had marketing significant excluding that ventures, impact in base dramatic for our our

saw back them from for their of and certain lower gathering natural our segments. XXXX, Northeast gathering we they've at significantly at of Last in to fact, we've the gas those rates West the values. many price seen values In based years. floor rate floor year $XX in processing saw been return lift and about And franchises million

improved contribution including as of our businesses and or our and our from at business acquisitions Mountain we Nortex $XX XX%, deepwater now our $XX core well. Looking West but increases a transmission performance, Mexico million about see in and million Pipeline other transmission Gulf did business

versus much growth including shoulder and we a increase last And volumes gathering overall gas volumes dry in a in impacted pricing versus performed gas we some well million shut-in increase $XX significant though particularly year. including business X% Northeast or in expected, our happened This systems, Our volume season that X% with lower XXXX XXXX. even as Pennsylvania. X% saw a natural processing Northeast

prices our compensate increase XX% increases led to a liquids-rich see shift before, processing gas about systems with year systems liquids-rich production, we plant well. lower low those transportation talked and higher volumes. this And quarter a for with However, weigh that's volumes production and in related tend to fractionation third on volumes dry gas as in where we've to about see NGL natural when margins revenues we what by associated and as tend

shifting last rates fueled impact see based in West, $XX then lower And business. third natural particular. or marketing NGL business with you So million X%, prices the in volume gas the much Haynesville. saw now decreased the which and Last $XX decrease much million favorable what gas natural natural of quarter was where those volatility gas stronger overcame the price growth conditions year's for the more in price marketing unfavorable gas the gas to by year's higher strong

down new last were upstream realized net upstream $XX offset on percentage EBITDA net realized which down to venture segment joint down lower lower higher last interest beginning increases and versus about due a that and Haynesville Wamsutter about That wells January included prices million prices the The million in $XX production year. upstream significantly in operations Our in gas but production EBITDA, $XX about versus XXXX. Other million, year. was was lower despite are oil includes much where much working our

strong of core So performance lower of quarter again, infrastructure our business EBITDA than with by XXXX spite business performance quarter that gas XXXX. third in and XX% prices in continued driven the base were natural growth third X%

touch X% at the West Gulf of performance improved similar and the million third NorTex our Transmission acquisition namely XX% Year-to-date, other last year's as increase average XX% XXXX over on versus Let's to even of in deepwater looking down Pipeline prices billion year. really gas on seeing from page still business business turn year-to-date impact as $X.X last billion fell year's the and this and a And increases natural $X.X our year-to-date quarter, Mountain themes we've the and Mexico as seen and walking well. core comparison. our and transmission or $XXX revenues and

Our have growth our Northeast million to revenues G&P which total based growth West, Haynesville really was X% strong as margins very you'll the of we gas X%, in the business. appendix, $XXX you And to dry areas. their liquids-rich first positive you'll with by see increase or the and and in start this in $XXX by X%. focused rate compares but that fueled impacted than business really million margins. areas the our slide where was a to X% $XX significantly driven strong XX% gas tend volume a the and has higher price now increase performed increase by find results unit year the the $XXX increased business the NGL volume revenue growth, quarter West service caused lower natural our gas over Trace benefiting in hedge million the well in a Shifting the very lower volumes the by per marketing million just overall increase Haynesville for or unfavorably basin from our to gas recall, and those marketing also acquisition including gathering in then NGL increase And

The in our about offset joint of this in our versus down realized year net where realized down were as volumes prices. historically weather due million increase segment venture year. down was $XX winter than $XX production upstream XXX% Wyoming upstream included of production more prices. net lower Other million, to combined the upstream benefits the were operations EBITDA EBITDA last net in $XX Our we by difficult saw gas well volumes effect dramatically on as was million Wamsutter The lower natural Haynesville the

ventures. dramatically to with start in business the continuation by with that from the results from X% a upstream overcame marketing performance XXXX business our strength weaker-than-expected growth strong driven joint core again, to So EBITDA, infrastructure

shifts of generally exact the from And in earlier, finished in after a EBITDA increase aligned comes in you'll XXXX $XXX million natural EBITDA decline unfavorable to growth This appendix, with of the this when also continue In year recent financial of EBITDA Supreme the As raising guidance. comes of our receive the close and guidance thanks and the Delaware to exact recent million $XXX XXXX. higher the with knowing years winter well are timing historically transaction gas shift through base X our record-breaking decision us metrics as the we'll positive judgment are some DJ as we of a that see even yesterday. I the $X.X that we our billion awarded to adjusted upward that of Transfer adjusted difficult other payment Court the consecutive mentioned in timing we And billion leverage $X.X announced not perspective, date prices the business Energy the year. from that this April impacts to and of guidance that to did XXXX to performance steady historic raise midpoint. shut-ins after lead have after guidance

done transfer payment matter, and for about of expected parts, will of we'll well. and of be $XXX charges to DJ West guidance well. issued excess $XXX fees, of consideration of we X.XXx as leverage end close believe Pipeline every Energy Our of that year the legal we've still these was before transactions still all net is guidance Mountain this our interest Considering that up in share day million even original and moving growing in buybacks as XXXX the though million

before setting it raise another and multiyear finishing growth that, with XXXX strong big are on XXXX. And guidance with we're growth builds So Alan. on in in up our to sights summary, of trend and continued I'll in back step that turn we XXXX outperformance the a

Alan Armstrong

John. thanks, Well, Okay.

just remarks over So your a to few turn questions. closing before it we

remains First, by that I'll start investment Williams reiterating opportunity. compelling our belief a

the and are natural tightly company today around is our midstream We of most unique. large-scale business nature gas-centric the integrated

CAGR S&P of high sheet resilience X-year a sector. the is proven covered our and within unique of steadily XXX growth combination Xx and unique visibility balance to growing of strong our EPS Second, dividend, XX%, amongst

record deliver to And produce and -- it has large strategy significant XX-year to EBITDA the a coming a market to allowed substantial Our us of growing show number natural adjusted record from a environment. gas-focused growth commodity through through cycles. track of well is that going the growth the to signals deliver it is continuing in current future. the And continue economic into

production and backing of sources natural energy renewable up scaling power the At keeping scale by of protecting emissions down electrical up number with data flexibility, gas. to capable going effective while for to energy like dispatchable and sources tool reducing reliability to to the date way reducing gas production largely as is nations U.S. and going to It the capture, focuses or has wants as loads the growing electrification Shoring effective is allowed support and become those and large up reliability. we reliable the Natural provide our practical of reduce of has gas it the gas. emissions. up and whether and are as incented of emissions. security Because of includes needs at to energy options on natural are with well meet while affordability most the for natural the committed to government The our This has driving our not. centers the foundation of we been is drive and meet nonsubsidized carbon Williams, up running domestic a emissions to opposition while future energy time real-world world's alternative. most on allies. hydrogen energy out need be that clean served carbon unmatched natural reducing affordable is with and to most source Ramping happen, the evolving gas and global stands the

long So to natural to with and for are here committed we come. And the that, generations leveraging our your for for and shareholders our network it infrastructure benefit large-scale for generations the are up open gas haul questions. of I'll

Operator

[Operator Instructions]. this at We'll Dounis Spiro to go Citi. morning first

Spiro Dounis

contribution, largest with for didn't appreciate. was we Enhancement, you something to least Supply that the said ever Alan, EBITDA I Southeast us we've being maybe Maybe at which start you mentioned seen, think

you maybe the of the about curious handle some of about around addressed returns that you cost some of talk sense of capital something the the a could And also, how project. online? you the just maybe seems even if think today can if that maybe phases just capacity So comes like X know but level it you've I in when to MVP XXX volume physical at confusion past, there. still provide

Alan Armstrong

Spiro thanks for the Yes, great question.

the want when clarify have because about of and the we there, -- potentially I might I'm phase one EBITDA is this of another bit got expansion a to commentary. on scale the little delivering First of The phase. initial all, it talking EBITDA thing in this confused the about that talk

of So to we're to a EBITDA phase grow be just counting to second clear. on not that scale, that kind

EBITDA being initial the system So Northwest than that -- mentioned is larger largest I Bcf on being that pipeline that X.X the being clarity topic. on and that larger entire our day is for a

attractive seen capacity is one you million on really there precious out returns, to the the Virginia a put that XXX we that the to going we're and ever is north, X.X In I not pipeline total for you a tell lateral. on just most have the out X.X there. And and we've remind there, returns it's capacities excited day Bcf coming capacity south day, there to physical but out right scale, X.X terms a of of to the physical of out now, that can of any of expansion the we're number of

have So demand capacity. XXX capacity Obviously, have that's their that from there's of of lot that a physical out and for that existing the today. we capacity we

for why here so for attractive of be put south expansion And to will from way permitting our utilizing not available right on somebody like that by it's obviously of there an come utilizing standpoint and together provide in and that ways it's existing project a least -- to the just in and such sitting able that's obviously, way, the that. buy, point -- structuring a we're resistance

a -- avoid not terribly it the for get say directly, process. to tend easy is but actually and to the right getting project, and So done that for snag typical into complicated a lot me but of that ways the permitting we existing wetland I responsibility of on that our problems have

great and with big by working attractive our meeting very urgent the So providing job there on of customers a very project. their this team out on needs

be they So the team this. prouder way the I work couldn't of in through

Spiro Dounis

contribution Helpful that the the first phase. color. clarification I appreciate Got on And for EBIT it.

to of Second part question, DJ acquisitions. like expand the Basin maybe to benefits the just as there. downstream turning Probably decision also

does And Is about So sort downsell to for questions benefits? of front. on that that we on into coming [ stand-alone is to need how volumes blended curious a One, few then happens something immediately? that that that multiple the ] the for roll two, to Xx off? the on think wait NGL we Or any should assets? position? do downstream contracts Or

Alan Armstrong

going that. I'm take -- Chad I'm have going to Zamarin to Spiro,

Chad Zamarin

Yes. Thanks, Spiro.

multiple that But see we current Midstream gathering bit of infrastructure volume and take stand-alone can the downstream integrate acquisition do opportunities as And they Xx excess deliver capacity. really has they're assets. process It that and some to Keratin significant some time Mountain little there has Rocky value. more commitments. the a than are in those So will reflects

there we're to that dedications off are a volumes So those XX will move fully us move and able consolidate NGLs be months of over those some and will and but our going volumes to system. beyond allow next over down that to significant our infrastructure, incremental to the amount roll

So over that you'll increase see time. value

Operator

America. now Mitra Bank We'll go next at Neel to of

Indraneel Mitra

to like of with seems gas Are seeing it LEG supply, Southeast that Transco are from the lot level, the southern on Southern worried pipeline. macro or you towards like north having Haynesville projects to of interest a move your some area. customers with utilities especially south gas utilities moving about a on rather First, Haynesville

Alan Armstrong

think I actually. market figure And out. question, that great the a it's Yes, will

they is in either the our way, project get or options XX% give the LNG, producers their opportunity path into and will come Haynesville will Transco those preference [ is. the Gilles for whichever markets into ], instance, that as down the traditional selling structured towards at LEG on moving people that there think I of

people that's options of network so market entire the of people system the And and Transco those effect it our options gives beauty appreciate. it system, the they'll as gives great that

so will and certainly for way the volumes But those of will that that not really the in and sure people I either are to out or that that all sneak will and traditionally declare a they're XXX growth while, there. see, long one for capacity certainly of XX, are so the in as one and on competition dictate on have anybody a supplies of as and because as big LNG flow benefits -- the think, projects they'll I'm markets. to the to So for producer hard that those with Station in be But be much other they're competition that not have -- way will on going up to instance, LNG to permitting. which to be for Haynesville so big that's positioned there enjoy takes this predict, come lot just have hard we is -- much a come to

seeing at XX. the why Station what's think, mountain evident, in start very to markets your that's picking out becoming the also meeting I it market do depended lot And for generation I the as coming up So just in we're do that think areas. are largely takeaway out such have you they areas LNG an run loads is tell will But of driving Transco point, that supplies options really a supplies certainly on that pipeline. those interest power I of those in to the growing customers because is of in really and it's

Chad Zamarin

that it's setup gas are exporters eastern note, than change. a There's decade And LNG continue the on that utilities set going States be side power is this benefit for no not of needed to supplies LNG a and the competition and as is is This from demand increases to and demand to near-term to United going Alan, the to natural worth Transco next between to macro asset continues better probably the be in beyond provide the over there system. up footprint our and and macro.

Indraneel Mitra

able Great. it Texas it's $XXX million to And expected. then opportunities be And Pathway seems Energy I are roughly Louisiana the your to in and a like between XXXX. the you than actually crossing What is Texas project, Louisiana we my day border follow-up, initially for think harder to Transco the from to up Energy or be of able volumes Ford or Transco the they're with impediments kind Permian Texas, Eagle South looping towards the whether Louisiana are Corridor sourced move of what from compression up to do the even to in that? size scaling

Micheal Dunn

is just Seven Sea Micheal. permit. it's Neel, the awaiting project Thanks for the Talen at question. Yes,

imminent. be So we that to expect would

we're on on great a expand that Houston. South really opportunities of the first just tell off we've the to continue one And had to you, our order increase area capacity we've opportunity corridor ground. to Transco. pathway that's LNG lot Texas other into the of the the that excited get to So got really side I would from

area, line a contemplated coast area really capabilities compression Texas, have that We through can additional lot the over Louisiana for gas or to of looping either move the Texas where add of are being expansion. LNG that we South and to a facilities amount that significant Katy

really those So about opportunities. excited

that just gas we of of sides to the well we Houston is both that have producer be and LNG opportunity. both of there a to on system that you biggest consumer are over reverse know We area one of a there side to corridor, think, the Eastern of talking the the Transco the And it probably that, whether west sides is or on impediment parties of best Houston, as from to north Houston pipeline expand corridor. in quarters, the the

Indraneel Mitra

it. to follow is I And just easier. approving that answer, Got up compression terms FERC know much in a on lag of what's loop. the

be it to get But you I filing make did to with you compression once regulatory that think Texas front? on that's that for how Louisiana loop a on would pathway. harder what much Transco the

Micheal Dunn

Yes.

right [indiscernible]. has I projects smaller their now, for hurdle, like So FERC lowered would say,

and So we said, "No, is originally they came assessment, an and process. need and it which impartment an FERC under quicker was basically environmental this a back go pivoted said, can assessment "No, EIS back an and

You EA. of going X I review magnitude looping an statement. any environmental the EIS X an any typically on most probably between save project an environmental is say take to and likely impact to would months And

going -- and greenfield, typically that's Seven whether to that Sea X to to X.X approval. a EIS, so be an And from it process be it's or looping is years a filing

kind would the are of controversial long I for talking you because the say obviously when to So just time. just environmental line about I time the the less say and a project. the projects type looping organizations looping thinking you in of landowners start would been be area should we've that's in

have less to built the than those pipeline. as impact a receptive a and environmental We certainly, they looping well. in is And relationships more are landowners greenfield certainly much areas project are.

in the FERC us project we a interested and going to it's great expansion great you brownfield projects better built these looping with it project, to less authority one loop hundred think when company. several testament of not so looking REA our because just what just pipeline for they're condemnation of a days do And and get looping that is do use miles landowners is our and at like very opportunity benefit XX the have a to along did have we're I approvals in that controversial condemnation and gives

Operator

We'll go to and next Barclays. Theresa Chen now

Theresa Chen

additional are low can the DJ synergies? and downstream if portfolio opportunity do how on in for there that with acquisitions, And forward. going the you is bring optimization think multiple Xx First, stand-alone, you

Chad Zamarin

where gathering, and have also, interest the allows move down partnership all typically This integration synergies is speak an is Thanks, processing, both X NGLs Pass our Yes. We've we Overland barrels Theresa. I with and where way us won't X looking we the Chad. are but we can optimization. we leveraging we specifically, typically turns to Targa, our that to Mont strategic provide the bolt-on fractionation. our increase with on Belvieu, This moved been of footprint positioning focused than that transactions better for or operate.

chain. to And that capture a opportunity of so synergies along there's lot value

those So provide and of clear very look really for the opportunities are synergies. we that commercial kind operational that

a really So that's focus.

additional inefficiencies I our commercial teams that's business. on The been of been in We've As our Racer joint opportunities in. has cleaning successful, And we the very participate another ventures both is the the efficiency within last of great the one. example operating take up business. far and core nonoperated to as think team focused dev finding opportunities, out Blue further that actually within

and again, of low-risk, structure of progress ease kind continue for the So we've that look bolt-ons, these and And I inhibition business. ours, And scale opportunities. be like out opportunities to taking great do geographic we'll high-value think, footprint continue the to with made that. will to

Theresa Chen

you just thus And far marketing to into Got seasonal tailwinds efforts, the the winter? quarter, it. provide on fourth can some made progress given date the color this on

Chad Zamarin

and about -- got just is set Yes. really I'd started. thing I We've this the to at to be very weather of opportunistic platform, the weather. events it's it's But getting we're as the materialize. too to platform speculate or can point, Sequent kind low is cautious say and up a to early continue risk the over-interpreting mean, we be great trying overpredict winner going remain sit to on

winter But feel right so see out. structured footprint that as set in well positioned dislocations. that pretty continue basis the we we'll time weather for well to But we're set differentials watch how we're so play if now, And and we is remember up differentials for good primarily the up. and

Operator

Ann Salisbury next Jean Bernstein. We'll now at go to

Jean Ann Salisbury

Congrats clock. therefore, of MVP when in service, Enhancement agreements. that. kind a couple goes just start questions I and the Supply precedent on spin Southeast Does had the of the on

XX, basically later also push the XQ MVP expected, lot starts So a than if that would back.

Alan Armstrong

Well, starts on those be just in the we service. place XX No. the clock agreements to go agreements for expansion years -- when clear, the

we've certainly a to so would be that so was the up probably standpoint. have to obviously, that do latter but optimistic set XXXX. -- would timing would be was that's success, just it's for permitting the say that. reference And part in that in able to that. XXXX, pretty think that we of reference I service But we it to may

They not many service. -- pipeline any are, But don't have it agreements Pipeline. the to those into have terms are of of doesn't doesn't Mountain timing do under So Valley that with Mountain coming anything Valley on timeline. those dependent

Jean Ann Salisbury

have Mountain would on Yes, working gets I to I If wait would of kind for online. Got it. you pushed, it. to Valley think date also more meant the project your because start get start pushed you

Alan Armstrong

done, -- Yes. have what low service, it's I and somewhere. from probably we to then supplies have I'm that 'XX it didn't over I Jean. going wouldn't that's probability just that to in that I suggesting, are if have your now between would placed sorry, Sorry, markets but think very be you're would get question. say those understand didn't

way come And another project. of so them, to bigger those up with which be supplies a getting would we would to have

Jean Ann Salisbury

day up time? Got shows be at it not kind and X.X in be sort Or it. all That the sense. all day, of kind is the makes but of kind -- leading gradually And going to of of up to one it one final. Bcfd, one phased could

Alan Armstrong

Right now, come for once. be at on it to our plans would all

Jean Ann Salisbury

it. Got follow-up. then And another

us storage, people this that think gathering and spreads. through there's particularly of market wasn't cetera? referred et from that in you kind spreads contracts we're of just would most regional more walk a that this also time portfolio gas-linked the that versus benefit know believe in of to, part which entering obviously, I but Can year, gas in of volatility sort rate the you volatile? time period price I specific over Williams in significantly sequence,

Alan Armstrong

Yes. Sure. take want that? Chad, you to do

Chad Zamarin

Yes.

several mentioned I them. of think you

that's well like to business But kind from we and volatility. and day, at layer cherry end the continue setup to up marketing, other term near our need the our the But markets. end of that infrastructure. think volatility And for perspective. top, connected set on in drive ultimately, basis base what business the we drives we're assets the to It's grow different obviously in why and are differentials volatility better from differentials capture that optimization our the capabilities long infrastructure be I base our mitigate core is supply storage set well later a producers is mean, these and the to converting value we're think what pipeline of and And at solutions on. so our day, mitigate mean, and benefits, and to volatility infrastructure, fundamental we're infrastructure I basis bring to focused really the that's we really a so built certainly that in across basis. follow is think term. I areas up and of help business to

Operator

at go We'll next Brian now to Reynolds UBS.

Brian Reynolds

Maybe XXXX, to to excluding peak ahead today's acquisitions.

but relates what tailwinds or to business Ann the We it and hedging base or by headwinds, could maybe full just some just 'XX. ties as year nat stores 'XX about curious gas around move one way that some margin you we it Jean needle think can the just if also next other versus whether to the or alluded volumes opportunities of any kind West uplift year seems have rising there the are about some kind some existing Mountain of like, small expansions and talk as

Alan Armstrong

a high-level provide more cut detailed Yes. at then Well, can first, take John that, remarks and on some it. I'll

is continuing base grow nicely. the of business to First all,

in see curve. on next the on how much obviously, be their response as think well of dependent prompt shape will year will And dependent growth I response. somewhat the gathering as price both producers' be business somewhat we forward the

growth and in of I that affect the would terms on would And TBD, so bit volume as gathering say, little our gathering a systems revenues. of

REA the are phase transmission have great early. out business, they there. The that of that we in there on existing team on has opportunities like bringing projects job did think been doing first acceleration of our I a

in, projects, So end on our the most -- the opportunities comes I end including at the deepwater towards very you you think big of there look 'XX. as -- business come if of those

of So those the and in tangible acceleration exist on increase some projects opportunities a projects identifiable 'XX. that be growth very where drive would those large would very

I calling take the in So early more the we'll I'll that. it's think see on right what a 'XX, frankly, drive to community specifics the let that margin. and that But be will from now, probably John little bit producer on

John Porter

our reference growth Not lot good I spot about appendix XXXX add. will a a in is in several of mentioned, and and the for information going to XX as think you're really of what projects, several know Deepwater processing business today, in really that including as contribute a gathering to XXXX as number transmission the and in beyond do really on Mexico Gulf projects expansions. based to we Alan well Slide

be XX early. if significant and to think, kind shows clearly in that potentially it different you And in increases, the And obviously, working Slide that now beyond. transactions appendix, will shows gathering more I of and hedges year able the see absence we're full projects you DJ these the upside the and in as to bring acquisition of mentioned and really will the the West mentioned XXXX. But related 'XX we XXXX layer growth today, we 'XX. we're Mountain projects into that mentioned, discussing also Alan too, place add the could much had some them will in again, You of that that of leading the the growth against in of that's to processing Pipeline

Brian Reynolds

it, sets call Great. opportunity the talk next, NGL LNG a and Makes X sense. lot opportunities. downstream years some seen Maybe as with over X market expansion my about the follow-up, we've to

attractive we natural over that decade. backlog the next was transmission coming kind I could just run gas $X just just or into to the grow ultimately $X CapEx you of So just if demand business, projects some see of given strategic kind thought XX the could move process and on given see curious, we of Williams us lumpy position refresh on rate returns the your Bcf billion billion

Alan Armstrong

surprised see would I things of you, the would pretty to positioned We're that high lot didn't level the coming optimism amount you. those there very And forward, in thank going in got our given and on pipeline Brian, demand backlog. about pretty that. those Yes, projects we're are -- some projects I that move and we frankly until way projects tell we've not a if that our put careful of serve with infrastructure be to are forward of in

I look for that answer from now, unlikely facility, to to is be generation wouldn't be that people alternatives you pressure what projects was serve some fronts. are a power wind, power here would up help generation, very your are -- I and say, to looking get Point what down that say the we've answer looking there have other down in of to at for come take to pretty these One, demand very if the increases. just on think nuclear up that's see to we're the we I now, gas there's the the unlikely going facilities alternatives lot so few additional some decade the in Northeast are right offshore that going a there. it is And have question, now quickly happen. there. and going at to to Unfortunately, And answer Indian sober other up So within shut think

in be because think for are think customers REA taking I up really, really on took smart I going capacity demand. our that's to wind that they going looking that to precious

that I reality demand set the initial this Northeast, what in beyond going to of before evidence So is harsh In great long. saw the well think Mid-Atlantic, we here in project states the infrastructure we're the in Southeast. then into to demand more the well Mid-Atlantic And in obviously, that and continues positioned more that building market area and serve. LNG to we're

that material see would there. didn't -- that lot into into So projects really we be pretty turned up it backlog and 'XX some shocking 'XX me if to of a pretty

Operator

open, now time. at Richardson at a you no Tristan on We [indiscernible]. is Hearing go your to Tonet response, question Scotiabank. next this line Jeremy, we'll have Jeremy move next to if do at

Tristan Richardson

time? scope the of over I of supply. road? you're thinking other addressing a way where healthy with Alan, could you be seek change that you commercialize are seeing you could suggesting thinking and supply to opportunities. this the separate level noted down demand projects surprised dynamic Southeast in your demand Is there at Or the you're comments, mean, really this as

Alan Armstrong

a up question, point Yes. you an and great there. It's important picked Tristan, on

that our demand really, their demands biggest around which of more serve finalize the -- Transco very doesn't us to and are was Our for are well. customers very customers for and wait that urgent. best on there, are it our to is issue And customers, those some sit of out any pending

ready that that place. and put we of customers that in on time that few those would the move And line we're to of project. first say that. -- our and just and I with ahead that moving to protect kind we're going -- we're we're ahead so And will in -- as to try foremost be not contracts thinking

we're where move could it in our our we expand out a made ahead prefiling. little not bit a have customers say way So going with that initial this there before that we because it somebody Yes, coming do else in clear can't we ourselves wire important but the that how I'd get to under it. very is strong on get project with

But what requirements from the of with are season So additional I the that be you kind are we've bit service. would didn't project of another get to demands obvious a just it's because the we're would from and dealing be say little I to that said this. like of earlier, got It's if see I'd out on open it -- sour. just come surprised very idea of there. hopefully continuing we I gives with

Tristan Richardson

of the dividend growth accelerated over then pace as dividend your of look growth acceleration and years. return we there And of a is have context. the growth, space out of great to about X% the 'XX guys That's as relative visibility broadly growth? with particularly to long-term period EBITDA to you EBITDA a midstream next And the to thought the into appropriate seeing we're XXXX, X% couple

Alan Armstrong

a of how intend to all decision dividend. along, in any our earlier to line that start we said as sure we do with because in just that's AFFO it terms that that. to with continue would ignore I we've make I and affect have think, do Yes. say, to Board-level grow that tax grow now obviously, we we just EBITDA our do don't liability would

years, all some AFFO I it growth But our like that. growth think at gets so as big and growth the very for next even bigger, achievable of the is EBITDA that now, that, overcome X% And well to EBITDA from to several to within right law said rate the numbers having is within our But rate. X% for think X% starts I the the to wheelhouse for dividend X% that's switch the here point, our reason growth. looks certainly

Operator

We'll go JPMorgan. at Jeremy back next to Tonet

Jeremy Tonet

hurdles call, relates as just Just it yield return start there, about increased deployment, you've could, off, in appreciation dividend thinking higher impacts, rates if rate that for allocation. the wanted price of it capital specifically points on as a to but I I to of the capital with about capital to wondering, guess, regards bit. now, has out different how specifically thoughts And talked the

mixed all rates with this how wondering higher today. Just together

John Porter

to the Jeremy. I mean capital couple now approach really been question. years. Thanks, any Thanks change Yes. think the that of I significant allocation last discussing for returns-based for we've we don't for the have

we're We but through have seen in managing a slight uptick borrowing our that. costs,

well. very think stronger as And the returns of that I projects many being enhancement we've ever. been of supply Southeast course, with we're seeing on discussing than our

capital in the between returns cost up think continues not I very over our holding our improving if business the invested of on well, spread and our to time. So be capital

coming of next make I investments and rates that large as into you're ability of but regulated and base. ROE past, to be ability or know And We familiar base year case our somewhat so, achieve somewhat Transco capital that into rate discussed up return. have achieve I to regulated as are and the discretionary regulated somewhat the that allocation our invest rate decision our terms again, in a we have with, rate in unlimited rate a starting do far think regulated do on unique discretionary as -- fairly our we'll rate we've matrix we base of revisiting return.

does up capital is think the you'll So forward, floor of based and the done then see And as in our the see buybacks trading yield view dislocations monitor past. what just decisions. we we've to quickly we'll potential allocation make -- what the what shares against future, really at going to the we buy the our additional see return continue set price if us, of as on share current investments And I the that into to in past, have done we in in growth act regulated the the rate the we base. stock on as

Alan Armstrong

just reasons. goes as actually One, structure strange there, contracts higher our the a think, in entire given good which add and adjustment inflation cost macro those, I that would level, rates of this pretty it Jeremy. for interest I business side and against couple a on the the at rate, may of rate. gathering And The just against seem, are level Yes. the operating of not macro the

a So generation demand. the net I that it's that, continuing And disadvantage meet in you I But come generation think but about across our cost. on we fuel a high think would the to has up. inflation we us. But we push costs and alternatives that power long-term to as seeing continues term, power positive of a rate the to look margin the generation impact the that interest rates it, our a don't infrastructure a operating really as plan tell degree associated to occurs, addition huge to simple on actually capital you're as facility advantage for with the on in model. gas-fired

And the but standpoint so are a because positive capital so element end front the lower, required just the from on capital is generation fixed in much fuel. natural is very power of of savings the the gas

right in very more in have up. rates the as people's serve. that in environment in to now more demand business on And very meet a alternative industry for It's we general seeing markets have attractive think interest to and moved generation our our gas real-world very natural so power pressure we're I we're put the growing rapidly as just a need

Operator

Praneeth go We'll Wells Satish now at to next Fargo.

Praneeth Satish

guess, on higher I guess maybe on mentioned, pressure question, which the I'll wind, start you But under solar with as there Alan. deployments rate is remarks. pressure environment. offshore touching a high-level your I is even prior under

perspectives in there has their you there So you any long-term shift to in terms of of been utility talk have adjustments their as time there I And any gas? terms natural lines? your decarbonization on customers, observed guess

Alan Armstrong

Yes.

think number for reasons. of I a

data we've have that here U.S. the fact load of we from demand. here driving are demand some seeing they're such the of gas the they're and states low all some I the incremental from priced shifts the seeing, even seen like centers is in think that that in loads even things rapidly mid-Atlantic that growing kinds industrial of

seeing and Southeast that in So yes, we're mostly the states. Mid-Atlantic

the think I to yet come. is Northeast

as out for think depend earlier, kind to of And I on that. think the holding reality I wind have people I hit think, that and been offshore been think to harsh there's mentioned plans is I us I going there.

we're complement or here a -- yet. markets, we to much we might demand it to seeing in their they're very sober seen capitulation to all -- growth and that seeing are develop. and see the the But that I ourselves we as renewables, the your against an describe and haven't as answer because seeing Southeast mid-Atlantic in Northeast sit would But So have certainly markets are as we got been they've a for up you the very say it. the answer market they've we in for shift perhaps question,

Chad Zamarin

it's than the the the And I and are remember of resources XX% United important intermittent of fundamentals less think States, to there eastern today. X/X

I getting from peak demand there wind. and like it's, think, XXXX look is for widely in And is and -- today. where understood is deploying double they're By solar it So going just alternatives this you gas at long by is XXXX, if forecast to that started term.

need more. the and to long here to achieve one, order goals need term decarbonization they so even now and in utilities going And that, gas have recognized are

Praneeth Satish

any then, will then see impact picked to divert Bakken so, the OPPL. volumes Could on flows any And volume NGLs if that And decide DJ Pass? switching ONEOK potentially expect I disruption on Pass. assets? of loss line Do the on expands up on you volumes, the if Got from Overland would that some it. Overland after guess, backfill Creek they to Elk you gears

Micheal Dunn

volumes. they've kind suspect expansion Yes, This if of when I BP question. El some asset. the see OPPL got Creek into DJ space flows Yes. take in I'll been bring less we'd and and diverting Micheal. just the of the We've a is today flows to the would that done, ONEOK gets Bakken

Manocha opening Packet need ultimately, to if So thing not space today. as really that's have it bad volume brought volume. on is deja we we from partnership. a -- a on to certainly But not But bring see our constraint we PPL up the in certainly, the more more the to

Operator

gentlemen, and time morning. Mr. ladies the that any like for all I'd closing things And for we you. to is to sir. Thank you Armstrong, comments, have back this questions turn

Alan Armstrong

a us kind you. I that of thank you all think, of to seeing emerge of growth to a joining in very announce quarter Thank the Well, Really we lot are ahead Okay. us. clear today. get for real, picture and accomplishments the exciting of

the for right that strategy the current the even And signs performance, so but excited now. very more our growth of more across excited about even growth in and we're seeing --

you joining time. speaking I forward and look next to for thanks with So us,

Operator

Conference so Third gentlemen, does a Quarter day. conclude you to wish us Mr. and Ladies Earnings you, Call. for thank that XXXX I'd the like Thank Goodbye. Williams and great Armstrong. you all much all joining Again,

The Williams Companies, Inc. (WMB) 2 Nov 232023 Q3 Earnings call transcript