WMB - Earnings call transcript Q2 2024 | The Williams Companies, Inc.

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Operator

Good day, and thank you for standing by. Welcome to The Williams Second Quarter Earnings 2024 Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Danilo Juvane, Vice President of Investor Relations, ESG and Investment Analysis. Please go ahead.

Danilo Juvane

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

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

Alan Armstrong

John morning growth and you regardless on get out macro thanks, for one to Williams of lay is per I Well, share and and joining Danilo, us that Great. to this consecutive for long-term trend deliver continues environment. resilience thanks growth of a as the today. story of The

In and fact, Gathering performance gas business our quarter even challenging by we well up this quarter, despite and driven second our very Transmission of natural delivered business Storage held record Processing prices. the strong results,

from to namely crisp operations. from increase projects positioning of growth take our driving The sustainable to financial ongoing day to continued key with a into news us and hit and that supply is key a portfolio that expectations ensuring the the metrics, quarter, that we years a gathering I on get our side themes to natural for to TILs to for over and Bcf volumes advantage poised growth respond systems. And have on our optimizing deeper of meaningful focus temporary are earnings is return demand our gas want continues few the execution we of good before the these supplies X exceed will in delayed abundant shut-ins come, and

Slide on X. here starting So

Mexico. of amount projects on the an and service have in West teams strategic extraordinary Northeast, into of placing priorities, Our executed Gulf including Deepwater, the

list placed serve region ahead Just Last schedule the to once energy ensuring is down gas we available Northeast here. full upcoming natural service winter budget and access again, under reliable to the the clean week, of heating season. run and regional for quickly Transco into

merits our there in gathering the Uinta that fully we expansion of MoutainWest's And expansion. are quarter as REA And while project. Other issue the both FERC steps about see a in recently last much-needed help believe industry to completed and such now the for address Basin projects the capacity reaffirming did concerns court's to Marcellus Discovery to prepared transmission we the we've include the this that DC to needs to Sabal own. gas taking zone Southwestern we FERC will you meantime, decision Circuit has are Marcellus as court for fields the once vacate which is expansions, Court FERC's be the remind necessary we and REA, today, to the fully with regulatory week important in resolve. In our seen the easy that the these to in increase the EBITDA flawed available our the fairly in ensure will process operating the I'll and court's projects as again system, that interruptions major well serves certificate the Trail risk past operations rich legal Deepwater, expansion. rulings X contracted without of this third fires serve continues concerns, limited FERC and customers are and be of notable the With interruptions. on new firm to the transportation

about excited the additional of we're the both really So growth we're here term. acquisition in that excited about and near of we're long the in and term the the kind interest seeing Discovery,

Winterfell anchor XXXX increase of as this for and the first large well large as development are for drive connected Chevron's all, balance Beacon's program X-well both fully of EBITDA will in year. So and a

project brought TLEP shipper their Pickerel on the on treating will advancing project LNG Gateway EBITDA Transco's on resources also anchor the that way key as were assets. Louisiana Eastern XX with grow Gulf the well EOG access Transco Pathway Louisiana in our we project, Hess gathering, Pipeline initiated call active to construction and Additionally, corridor prospect higher-priced capture Texas Louisiana activities carbon and which June the on for as several provides all on specifically Energy into market. the construction We Energy TLEP. We to our on projects. markets

so we're on Transco, new, reduce reliable and a excited low-cost on agreement effectively Texas that a Transco's us. And helping this we on significant then signed for Houston Energy's from getting bring backhaul expansion. fairly pipeline markets project also on is the West So started dependence recently, about to CenterPoint This Louisiana, gas intrastate their Gillis systems. precedent will to area CenterPoint supplies

project part system-wide to rates. and into can of emission XX with want meet transmission also XXX we to service. I as goal this Thus place required in very call out are to savings track accomplished on this investments compressor monetization will quarter add part reductions of that capital by latest meaningful cost significant set our our year, replaced units begin this quick EBITDA turn and to the far, recovering on we replaced program. so little Importantly, these our on the emissions reduction be units of have our and end

will we new note, in the go will that March of 'XX. the and on rates month at this into file end Transco of effect on rates our new And

execution on going as great going kind and on teams very kind lot modern front by of system. but these times, the amount And the a by replace well. get units of on overlooked, projects on teams of those incredible work of equipment low-emission So lot to amount of with of old tremendous effort a that

given we attractive of our Mexico and consolidate top financial portfolio. steps our EBITDA growth the Aux both take the EBITDA the ownership optimize track which a asset X-year guidance value Discovery the and interest for to on 'XX translates to system at in sold and half second on this to Venture also continue We asset. From X%. our an achieve Gulf we and perspective, long-term XXXX, into stake the of gain very near our Looking and attractive in a expectations remain CAGR joint Sable column, of we an reaffirm

CAGR over this the X-year earnings 'XX our More per on improve. period continue industry-leading sustain this fundamentals CAGR our and XX% period. Of with importantly, in X-year even share, beyond actually AFFO X% and of per to over share cash note, flow the growth will growth strong as to EPS be this just and metrics improve of

and -- demand project trend [indiscernible] generation, for secular Transco Southeast in power the the to of around the remain Our solutions best just first is and of our from infrastructure footprint. position secure pipeline increased expect in few a we we our projects additional

one on we week. decarbonization continue that call And in out is doing I'll this last deep that operator and goals. dive we on right focus to finally, report in our responsible how published outlined on we being a prioritize our is efforts This area business the is in report way, And sustainability really all a clearly our XXXX we do. progressing

industry affordable more role that are up on to at the can providing gas continuing in focused home also energy gas reliable play an even important reduce world. emissions natural We and around and greenhouse the here proving while

walk John? the And John so second quarter to with financials. to that, I'll through turn it over

John Porter

of about with a X despite Slide with X.X% on growth is here last X% our adjusted prices averaging year financial over fell a Starting natural year-over-year Alan. X.X% about versus to about had year-over-year increase, beginning around XXXX. performance, that Thanks, And a we summary EBITDA, low close second saw EBITDA 'XX, gas for that of second that adjusted grown XQ X%. $X quarter quarter

prices, low like as again, now not pretty of in wells resilient completing reduction wells grow even drilled stand not measures in-line continued improve. our ready prices So business spite to customers employed that as once flow turning to temporary production gas producer and/or significant natural

As the middle our adjusted effects our growth so to X%, right growth up recent our the driven strong is large-scale EBITDA our of transmission Year-to-date, growth long-term natural X%. acquisitions. next was gas of adjusted slide, favorable in the we'll from our now of and including businesses, X% see on EBITDA by storage target

was EPS adjusted our EPS is X%. X% QX, and about up up For year-to-date

a through So bit we've in the as compared to slower 'XX EPS that XX% growth XXXX. CAGR X-year seen

X-year we But mentioned, CAGR that excess through looking as in a be will of see do XX%. Alan 'XX,

of on better. X%. Also, And our look X.XX dividend and coverage we XQ, an AFFO a guidance with this year-to-date. down X% see strong to over in operations, is XXXX. based the XQ available And see our growth you debt X% X.Xx EBITDA 'XX which slightly adjusted AFFO X-year that when through CAGR X.X% before was year-to-date. was X.XXx, higher story XXXX or funds For XXXX, coverage our to prior leverage very line was is CAGR following and in growth expectations XXXX on in dropping with grew back X-year from X.XXx a year of or a through here slower X% dividend you Similar

on high first from before second update we upside billion general, our is move range start earnings quarter guidance. $X.XX for positioned to of into we provided strong growth deeper the next our toward to half for little of end upper $X.X an quarter, in financial Based we this adjusted XXXX billion, presentation. to dig indicated we'll we the our that our what guided original we a update adjusted So 'XX, our our guidance. well the provide were to drive to EBITDA to EBITDA unchanged and of and the slide In quarter

to that and coming that 'XX other ranges key shared our XXXX. metrics, billion their in changes, of adjusted AFFO and share we EBITDA for per at end share on deliver EPS remain some billion. to adjusted positioned based XXXX outlook our range also $X.X $X.X saw And high we We per EBITDA on our the of well adjusted improved

our that to first to include as the from gain sale adjusted adjusted major we level help from any for in increasingly $X Sequent. And again, update, additional quarter asset XXXX have to on of around that billion sales course, losses shift can Sable EBITDA except perhaps and counting while Aux clear as we So $XXX on also say on are still EBITDA we measure. gains wouldn't the no that not comfortable expect we exclude there million well we

effort. slide quarter last and the $X.XXX We with first to to next the Hartree start from delivering which and contribution turn storage to full billion Gulf closer integration as our over or transmission take $XX which at following look Mexico little quarter from just the business, of Golf X.X% improved combined is year's let's a due results. this million a of Coast billion. a expected, now $X.XXX effects Walking our flawless acquisition, So year's

We Regional was Transco also Gulf also segment and had higher the unfavorably revenues, of ethane the Bayou by Energy Access year's partial impacted growth from divestiture in-service Eastern planned last in downtime Mexico. some and including project,

strong variance a G&P the that Now million the business is onetime the quarter gathering unfavorable of against $XX adjustment. last really a $XX year million favorable revenue Northeast for catch-up effect included

gas DJ service was also was XXXX. see volumes However, we that roughly reductions low franchises NGL where reductions performance producer loss rate results -- lower ethane those transactions of results, gathering volumes West, West the year. the same volumes natural And million, with dry Northeast recoveries. of the also that about line increased in partially from had gains as lower temporary the were The were benefiting that in have the DJ a plan of as were in by area. to greater we which reductions several pipeline in magnitude across those now completed $X primarily XXXX. volume Overland temporary did unfavorable Pass for in basically supported the our Basin offset were the Overall, in higher result prices favorably driven gas we partially gathering by increase producer fourth by about escalations quarter impacted Haynesville including Segment the Northeast. Shifting the hedge

quarter. marketing you expectation our the on our then will with loss have based million was loss in that plan $X the a typically see gas marketing in And second lower line the business natural that

joint upstream included operations were up our about in from million year. Our segments other last venture $XX

Alan. also our to proving pricing business of second giving a quarter to continued once and challenging again, XXXX. And to our $X EBITDA in a grow it ability again spite natural further beat to confidence beat ability So plan, our our business with back in gas billion adjusted that, of turn us I'll environment in that

Alan Armstrong

Okay. John. Well, thanks,

to natural able over current remarks, my for Just the grow. I positioned closing we turn that a is been it emphasize as with how future continues before Williams well questions. demand environment to has gas to deliver your remarks and started what I'll few are in end where the to we and

As natural we the the both role today's energy we gas projected long-term our play as will about are from infrastructure exports. confident our demand and growth think in power strategy, generation as well meeting in LNG valuable

We and is premium. demand placed no better a expansions unprecedented company to are pace put, seeing infrastructure than grow demand an our will growth. there Williams demand at set other today that is up uniquely Simply capture this midstream of

are deliver most continues growth growth quarter. top natural on our gas-centric around natural midstream large-scale strategy to and company after We today, the of quarter gas-focused

since compound EBITDA seen annual XXXX. consecutive point, rate we've adjusted now an our that XX of growth years of adjusted And growth X% EBITDA to and

have on and our share execution years, record contracted beyond. during project has XXXX to growth invested In led in realized return per continue our to the last transmission capacity XX.X% steadfast X and capital we addition, drive a and will

In fact, our have current projects years. X returns higher this than in prior execution

we've an even returns the in closing, present, that but business future. faster a strong for profitability record in for positioned faster-growing and is even So -- financial delivering is built

your that, questions. open so And to with we'll you. up it Thank

Operator

[Operator Wells of the Instructions] comes Satish Fargo. of question line Our first Praneeth from

Praneeth Satish

centers I'll start data with here. Maybe

scope that of of the us is mentioned guess of could how you projects EBITA projects. data in think on future you ], ] Xx looking the center you're a of other And SES the you So size questions that are you're returns? X you some some maybe in first [ that give and center at for and projects looking do future projects multiple. that just of types we're sense that mean, -- the backlog the think Can SASSY similar I here. then around backlog? about returns data a the other [ of the I a Do earn estimating handful

Alan Armstrong

Yes. you Well, issue. thank question the Praneeth, and important first for of all,

First over actually, we've probably, Williams. actually a any that, the seen return of transmission better ever large-scale of Transco our project mentioned, all, on we've our than ] for long on return SES [ expansions even is the best on and as history

So pretty return there. opportunity extraordinary

In that. terms center of the of are we right in the data load, throes

project tell number with going are of Southeast we have, of those We dealing projects. sense Mid-Atlantic, you of have very a that are particularly a in trying I and the we're force opportunities or the with combination long we make obviously, to another those that [indiscernible] And start to of backlog requests overwhelmed expansion projects. projects. will of that the and top Obviously, expansion that not because announce on frankly would we're kind of we

can our any And we've so we to get a us making and that it push everything make permitted when got that any for doesn't large to sense that be project committed we've ahead. to to announcements cleanly do customers

the there strong that we're customers Southeast, deliver attention we there's Quince fact to And we're and Rocky response to region. there out customers. But in we Eastern we the going lot the particularly sure with understand Mid-Atlantic, to that. Southeast in Lake actually and that projects our to Mountain area, the expansion Mid-Atlantic critical our can Washington and that for the and how first we're that lot of the Idaho, despite utility a respond make and City seeing of So demand in in the states, trying on in a in Salt dealing figure extremely and

essence, they the probably find with going than our in of working more demand that imagine frankly, everywhere. where time developers So because a is can can -- lot looking are the the business. even we big of on to And we're

our looking the And to so permitting where gas and on frankly, right, systems where they access are regime are supplies where abundant natural available. is there's to expansions

on focused or of gas the broadband been the other -- very connection local the people and along very an are to but into center, -- so has They've that been one they where not networks I of the fast data on in to focused in permitting being less being an the And now issue issue words, previously and this where market are centers. from it's power cloud-based into issue, focused latency generation latency coming being available resources moved front associated speed have wouldn't air not issue, of and issues power with to less say an for -- that. and with the very

very exciting our a is of curve So on be in for I of it would an us even dearth you, not to going we opportunity and regard. kind there certainly is us such but learning the of just make for tell personally are that best steep how me for in a time assets, to use

as bit fact, to because we're use we the going is precious, In so overwhelming, just we're And make expand expansions, very associated have around there the obviously that the making to and but return make sure assets lower-cost highest expansion high make and we we drive little a only various said, I we the so high many of we it's as those. our those very that have with assets. know our are and returns, of sure

I time to I'm you're put it. on on we're very a do, keeping we're anybody I people opportunity up can project, more about has that when And to quoting a So that out have really frankly, the -- than with wish financial making business, tell luck of right them talking a kind to not And the there because and so to going going hard the if not time hear putting we speaking not we're front that that's on because in your frame guess. large a you to opportunity purpose number far frankly, I the us in But numbers really and economic else not if number or a that you're impact you're those that's the it out. of lay not of now. returns ready

it's those quote some tell that think you're returns time and you're frame not hopefully, for the that talking volumes I about about talking would all meaningful you, to but expansions gives I So you color, not if on opportunities. not

Praneeth Satish

petition I you to No, Just And DC you emergency this just next what guess, gears, it. understand That's REA the can us the following for in Court's at for steps understand have an helpful. flowing switching all? the maybe great. that's there Got to decision? in And whether help trying are the impacts filed gas today? keep is service? pipeline early service Circuit

Alan Armstrong

Yes. able Well, being kudos and first to our of and all, yes, to is quickly to gas up respond so for team flowing, that.

project area. to incredible that to legal General a Wilson, difficult execution going proceeding. on the I'm to And Counsel, to Just our it project speak Lane in turn

Terence Wilson

Yes.

point, any have what about has FERC. a So we basis, I ultimately and on certificate. out before. concerns This this will think dealt at done They've certificate. concerns to that's and the be temporary next don't seeking on getting timely about rehearing speaking temporary don't project. this about is able any that to with we're anticipate have not going have probably to at maybe XX they'll operate. Don't this be defending concerns XX. step But XX, be continue defending new issue any We fully the days to certificate a FERC be We'll

Operator

JPMorgan. line of comes question Tonet Our of the from next Jeremy

Jeremy Tonet

lows points? just the of current are of trending production Just production to I assets? is regards across see thoughts at from kind growth the into year XX the gathering and what with balance want these to expectations there's the your kind and that the look producer the see you -- years hit the a and over Or guess, expectation how here we've of guidance

Micheal Dunn

Micheal. we good forecast for right at about production in it's profiles Yes, now, Jeremy, I to feel coming where our we're regard customers. think current the our from

dry pricing look is obviously, and to now. at You've challenged by gas the dry And gas. rich got basins the the it between

shut a in. making are volumes producers gas they So decision might month-by-month on that

of producers it's between and the delayed probably the and team got the to you tills in of month signals we've anticipated a year. ducts. price the Cutera's occur meaning of $XXX you've right month-by-month were that did there. good announcement But right the shutting think The connected in I drilled them, half August. where now, decision a really out producers now, we've they would our now TILs And the for as delayed the really production have shut-ins customer the would are are right and the where say this, for all when of and probably and a go anticipating I the to saw job ready there. queue over wells through seen million them, all base, they Bcf we've completed first

And completed they've as our so on there's of over X not systems. drilled well Bcf us, been but

there's to So a as see a a on signal. definitely opportunity producer, price bring we gas lot of

end-of-year is be our LNG of XXXX Golden And sensitive The you say saw going And that price gas facility, about seeing and the as our so risk are pricing that certainly probably buffers be have we it right the going We're there, certainly, situation good now. they're in all, feel all for that appears. to yesterday netbacks good announcement forecast. basins in we But to I'd outperforming. end service, an Pass dry still the XXXX producers well.

flowing anticipated will what making anticipate. And like decisions on the elevate, with should been is these And by producers that hedge we already have and And keep It when so that forward their the looks they'll volumes obviously, curves. market. prices into be curve.

So our are. we're current where comfortable really with forecasts

Jeremy Tonet

wondering thoughts pivot I if helpful. to you latest more it. wanted us That's your think update there. see if LEG, to forward moving I Got how you there on that? With to about information, I And just And FERC just could regards could. towards on very requesting just wanted

Chad Zamarin

really anticipate going concerns FERC as to we find this LEG a and to either responded matter that is don't or have request, -- We've don't We dismiss Yes. data a there. gathering the fully any FERC system.

to continue which down road, for nothing except in now And construction. to is the do right so really current there's us

confident So we are about this where again, project. feel in pretty we

Operator

of Dounis line question the next comes Our from of Citibank. Spiro

Spiro Dounis

there if we Alan, tie I go term. demand thinking your comments maybe the could longer you're wanted EBITDA about with on how closing to generation back and outlook power

one your versus XX XXx the XX XX Slide amount of the last slides, grow demand of next years. the So over electricity to years points

you at to I X% have able about CAGR grow been there, think you an historically. mentioned guys in your comments

So as you potentially contemplated think you target about out maybe X% forward think in that this moving the go I that growth there. X% out laid it of here, higher environment, there. to that which guys about Is when sort as you of have you don't think sort

Alan Armstrong

Yes. that, opportunities us over that as an X that do And do that coming that's expected kinds is X of big last Spiro, and are a could great in you know, of it's of continuing face do now, think that. the bigger against our level is numbers we've the I plenty put at a the on number, law But grown the I just question the than return growth and projects a and fairly we beyond actually. years. right think think or even strength expand has that there of of absolute profitability that given of high faster I bigger the to potential,

completely on to center for we that thinking systems. for And capacity. time frame, as think 'XX to because our 'XX and people power that, -- load going particularly, gen we're so and load to take contracted capacity result that's out us, and transmission get going existing And sales on our I the is data in instance, into do time that

think we're from going And kind that of time now. get build a that strong as we 'XX is do very when impact to right so see to we I the 'XX, out. into that we're demand But seeing take and

runway for 'XX, is X when us into looked have or the news of and I growth. 'XX think a of X I us, accelerating good coming next on the we kind we've this out don't 'XX, I and that great is remember thought a got we've years. think, give And past bit uniquely, in little of time and growth The projects a number already

long-range got the So a done plan for I what that at just was demand like business future have think the our very in. planning. do with strategic It our look we that coming encouraging we with looks kind of and

into And pretty marking would we've conservative I been that plan our this frankly, in say point. at

over I think we that -- be that next do X that to there's profitability years. the certainly yes, we'll able exceed high So very

Spiro Dounis

Great. color. That's helpful

to And just these question, if going the seeing an or last JV now landscape. look the a for we update expect to Was consolidate of same saw you and bit the X little hoping if M&A. Second could some years on inward more you're you proposition over value positions? other maybe

Alan Armstrong

looking wise those free cash that Yes. I mean and bought business And we particularly where make of was to we're investments there's is generates, capital. the in important flow that the obviously, that Discovery us that are joint -- places at we Obviously, this recently, for venture seeing certainly an the growth. certainly, one inventory as of in for look opportunity. here we with just

ventures Fund OVM [ for partners dramatically. And helped like that us ] have target the us terms would Canadian Canadian that a joint -- -- so were fortunate great I investment that Investment in Public say, we in represents opportunity certainly area that area of pretty to the the and very helped us really we expand

want And will be them we're have they would monetize time to a perhaps partners, that. as but where excited to there

patient say going well go want that, it good So and be would I future. to side we're example going execute a to other us about perfectly and for a opportunity and of have those. inventory worked out an But willing provides the to to one have investment to in we're now where on seller

Operator

UBS. line Manav of Gupta Our of next from question comes the

Manav Gupta

bit a you little It a PSX. follow-up stuff $XXX Quick bought Spero. some for looks of it. from I about lines partnership, know part a like as on the of you paid million

understand and think interested in thought other from buying point in also? assets buying And us PSX those PSX? some rationally the you this obviously, I strategic be at help So would if is market with

Chad Zamarin

and you've XX, Discovery again, Zamarin. is our partner Chad for This But been of Phillips us. the say, growth. about XX% with they've we lot a Yes. owned offshore joint heard I'd a great venture

a And so business part a of and certainly profile growth core it's ahead. our attractive very

we I core probably think PSX. not And you'd core so very hear for -- for us,

So as those venture Alan growth us. a the see mentioned, coming. where facilities. have investment It's we of understand We interests, joint operations for low-risk we

Aux is quarter, that of about Discovery to acquire impressively at as on an the not Alliance up remainder you core been system. think multiple if we And this what asset has there, beyond. a great that year go-forward consolidating Aux you'll Sable growth long business, see but and into we've low In owned able ownership pipeline were a more for Sable time, the the our Discovery, ramp to think and even a in basis, other XXXX the really Pembina relationship on their had and we and for again, a hand, this in

so And pretty we're flows, of saw a that's and you Aux think about cash flows, asset if set sell those Discovery high the to volatile contracted grow. cash highly we that going commodity-exposed able a multiple is in difference is to Sable more

be I don't assets to that So should own. translated that other think that, PSX may

a we into that's way incremental rotating and really do or going that's us, is owning consolidating opportunity by where optimizing at the create to interest. when I look have value. any our something to a in that strategy transaction, we really think, And value portfolio It turn more unique

Manav Gupta

on is, of obviously, lot My storage. a follow-up quick get we Perfect. questions

current to on your opportunities opportunities of relates specific storage? rates you about is expansion could the thought set storage process and it as if what talk So

Chad Zamarin

only really Sure. storage Hartree for expectation. our owned have Yes, at of months, just that this is attractive exceeded already X We've and seen the we've X, storage recontracting rates Chad again. assets

test whether or terms the market expansion the those not economics. been we're rates and We in to tenor approach seeing of have

curve value an growing we seen perspective. we what Gulf storage the acquired value. in certainly I'd cases, acquisition. We've We makes And we've MountainWest part market sense NorTex, we're asset the in Rockies in Coast Basin, as of towards that say still last from all years. storage storage the the few over expansion the an increase think seen in the largest in why climbing That's storage. acquired the Clay

contracts depth rates work the needing both see expanding approaching are think, large a to more put potentially in in to we're greenfield bit and that We term facilities. for to us expansion, required but still those brownfield are, for I capital of

signs we've all -- shown But fundamentals. the are

last We been to gas over haven't in has will significantly we'll at grow grown and years, a volatile and XX markets. stores while continue importantly, demand all grow as the country more

And it in of value so increase and the lot we have is which will expansion point storage to a at confidence we point, lot sense. reach of some makes -- will, continue at a that

Operator

comes Neal of line question Truist Securities. next Our from of the Dingmann

Neal Dingmann

especially gum, the the on upside just is you talk question first continued could my about there. And

] of tiebacks dedication. Specifically, mean, It have acreage X announced opportunities like seems it's you think that CapEx additional you for lot X mentioned to all interesting. a I that you [ after the projects. I in

not potential just for sort at you even this I'm upside 'XX, of of wondering in the So remainder year, are how there? sort looking but of

Alan Armstrong

so activity great much exciting A again, on going we've things on. Deepwater. got of lot Yes, question. going And the in

of retired amount like at point. has on that the overlook most on this work to Whale, is easy our of the way it's -- projects execution were think that's gone I working at which Shell on,

retired. a so part, our And been and has our the of risk of little for remaining there's but bit work the commissioning work there most

So we're is largest. come seeing that project excited And by about far on. the that

very and our Faith well. And the one lot of Chevron's Those terms that the of this there's to shutdown back large been are that. incremental second bit, business. of terms original The year. projects assets adding accelerated that that's a on platform little a half of feeds the in there and plans very on coming largest project great is favorite drive capital into from and part. on exciting project timing And will take like is our us in actually think no -- of as value required going anchor, our in Ballymore It value. on continue to a their project, Blind here of going we But in but kind around activity on a example where drilling on

clock a uncertainty the a were ago, took incredible roll platforms in engineering and that long years is, these risk. But lot lot really back of things XX, it floating changed of feeds. -- people XX platforms, were time, the One you if the a building mammoth that's of Deepwater deepwater platforms

working develop and out that And because is us hard their and asset seeing their comes having producers build what that incremental extremely we're infrastructure. to existing to to with today, reserves infrastructure. And we're base find reserves returns high around for not new

so it lay much this would really latent costs of of add the with it infrastructure the line capacity we that depth -- lot in just us say water And is a because in I things fact so powerful and a Deepwater, that in that one that way. is built the to of for

that up, of incremental flows And we're fills high cash capacity very getting latent as off that.

not a we and Winterfell but to of activity. to where in Gulf, of in Anchor very about a around come The and -- our both are activity Gulf fortunate a activity And the the it the of goes the talked continuing happen Central on. we next to be. lot just Western there's today happens and which lot producers the that asset to Deepwater. centered really We're lot is base with be Shenandoah So see

will Next year, prepared prospects discovery Shenandoah time and large it system heard in mention next be of coming coming Pickerel lot that as to Star prospect. on a Ballymore of we And me you project, well the year. will the on the tieback Eastern a Chevron's our that for a then getting fairly Hess it's Gulf spend because is Gulf, course, be as effort

happier advantages So going of we competitive that on. the Couldn't be strong activity have a to [indiscernible]. have lot really

Neal Dingmann

Fantastic details. one West. quick on And then one just

around on see DJ in around upside a I'm the you been just potential quite Specifically, can about with acquisitions going been near-term there's -- you there. acquisitions? those what post the you've bit talk wondering --

Alan Armstrong

on our me and excuse Sorry, Rockies? Curtin

Neal Dingmann

Yes.

Alan Armstrong

to Chad, take you do that? want

Chad Zamarin

being continues because to We've perform to in lot not transport from optimize I of the market we we growth would integration downstream. further But got are margin more gathering area basin. We and that say Yes. have. and only seeing we positioning a and, able outperform. the value like really frankly, processing in that that NGLs, we see

grow you're to already time And I contributions, so for the yes, a continue do expect some to long seeing important come. of to that we and -- think

a that. So in of performance we lot expect out

Operator

comes Company. TPH line the of Zack & from question Van of next Our Everen

Zackery Van Everen

the to shifting Just Northeast [ ].

you least like and revenue Susquehanna And of forward? kind I the dynamic? is else? cost Or a know run have You of on Or was is a Bradford kind this mentioned of something makeup Bradford last rates year? the service contracts, at up part this rate ticked that good we onetime this of this saw on going quarter. side. Was

Micheal Dunn

Well, this is Micheal.

With a service cost of the the fixed for fee has in we had Bradford agreement to reverted terms. contract

customers negotiated So and completed Bradford. on all with been that the and has finished the

that to [ And a would other this say, have affected year as did year. see But ] rate. you comparable the just so than I drop onetime run a we for this should that, obviously last expect

escalation variable be Fee with there any going that capital expansion the in forward. negotiated expansions do obviously And would well as we opportunities those that in being there then the be through Bradford. would invested

Alan Armstrong

in and are see dry fact almost looking numbers gas we've see the gas you the that see the margins and in the gas in our when at Probably rich that. like in the more you more that you're what than rich double seeing, is we been are in they thing more main the activity sometimes

Southwestern West rate Virginia, into into rich see gas brought the you average will in these so of like moves gas. developments the Utica more increase of moves and more and And drilling the as they rich some the as PA and in mix our

addition that every as have well. adjuster the that, we to hits spring In inflation though,

And picks those well. so that up as rates

we've a somewhat respond, gas declines on services on in of to margin gas. gas dry past, it of the on we lot we And rich that the area said the and the make because challenged, momentum the in dry rich provide tends higher gas is positive the importantly, all So as typically, see when rates. offset we

Zackery Van Everen

Got maybe to you. That And shifting sense. makes then the Rockies.

they'd peers approach little there your on that a were you be announced into bit interested to the take converting flows volumes Overland? in that? pipe on And able you Wyoming would Probably service. their into to of be space of Bakken they One guys but NGL far if out, is those crude a out

Alan Armstrong

want you do to Chad, take that?

Chad Zamarin

and the option some on a sure. Basin. This opportunity. on making good think Bakken we're an from River we do producers Chad. that there receive takeaway for focused NGLs that Powder I Yes, There certainly good, frankly, and sure to is the we'd see from Bakken as Overland diversity, is space Pass And the is and be

capacity barrels yes, far going too think that Pass would do heading get got we to We're And not hopeful opportunity yes, to that, in those ahead an see we're of south. but available. Overland So there's we've be there.

Operator

Robert Capital comes markers. of Catellier line question from next Our the CIBC of

Robert Catellier

into of of also on you intensity that progress you're there flow the in interpretation making of your end give targets? by light investments Understanding the new any Transco. likelihood rates your support methane appetite Could month modernization And us to in insight you shipper a the settlement? the of

Micheal Dunn

rate case settlement. to we if the quite can for filed Thanks to there. work then a seeing a on and to they the time filing customers would obviously should for we Yes. efforts there that there. get we Yes, get made love We've And of our be no month see our when obviously We'll them investment and at some settlement that question. the the modernization underway. been about talking the have of make amount the surprise see to we've we end

type we Rates help so like going And Transco so there. think the smooth we've our we some could on that with last Northwest forward them tracker the assets, on case some settled the modernization skids grease of will done out just pipeline. that with that do rate we these possibly for of increases

needed the can of growing intent as going for our reduction the but a there. that get is some our not that replacements program, just So for are pipe centers modernization some tracker, hopefully, we in population of emissions

through we last that pipe derated and will we upgrade of we do modernization that, several be better amount well. as tracker but significant the and could to years a have a over that doing would it be We that decades

But it get So we settlement subject the to is case. we'll the rate the this as But the good settlement X filed, start either we've know, outcome a in you get year, will into to go opportunities. customers refund well as and to mitigate once of we on once case. a And on the opportunity had rate fully probably pretty effect -- what rates alert expect to that or March intent. next the discuss

Robert Catellier

impact just question How next does going here you're approaching then decision permitting? the in is And case the what's legal in how and Chevron realm. on DC reversal circuit on also the REA deference Okay. -- the

Alan Armstrong

do Lane, that? take you to want

Terence Wilson

first Congress that's Chevron administration don't going definitely. more closely knows I well, out, I and set what Wilson. for force to stick that swings. in deference. subsequent means Yes, likely to has will laws fewer except play to out and the On it how I'm administrations really mean, REA, certain think anybody probably pendulum

And I terms specific think industry that's probably in was of whole. good the for question? REA, what your on the

Robert Catellier

decision wondering I'm Yes. that activities? permitting future how changes if approach just you

Terence Wilson

DC don't the -- Yes, lay of we it I Chevron decision I [ I active real we'll any think so. down the the impact certificate, think what to don't very that certificate this generally we does order the like mean, did in in is FERC case, what It's future. ] has and to way was FERC think situation unfortunate defensible. feel that that approach expect the lower that's for kind to happen. on Circuit a the certificates the fix I path

Operator

of next line Scotiabank. Richardson comes of Tristan the from Our question

Tristan Richardson

a permitting key say, efficiencies West a standpoint? perspective. can a It expansion seems is and but is permitting right-of-way project, a between quite project, give LEG versus, capital some the smaller maybe few differences project, offers of on a out a question you project Just a a this certainly from the from like standpoint, small Gillis but this Transco

Alan Armstrong

residential number them allows that And that Tristan, pipes gas various a question. reliable is with the with the high important plagued CenterPoint has Texas are Texas them, that on spikes point supplies thanks in some market them the for normal supplies to imposed is of for the access Louisiana Henry because to reason been power very and the gives this Hub markets associated from reasons. price dependent And intrastate more pricing of and this intrastate volatility for without have both loads. generation being a and access for on from the

points CenterPoint for into for provide to So an supplies just like Gillis, all to coming and like primarily great interconnect for moves us need for point and places volatility. to a is away we is really, those the Haynesville of this will allow pooling supply the gas kind it's through places important an them obviously there again, becoming supplies. access from their we And will which and them allow do diversifies and think supply market, that Louisiana project us, important

a because it's requires there. for capacity effectively. great mostly flowing our So us, Texas just it's transportation back to We're interconnect and project the getting capital part, paid variable for on

just that exciting from improvement I supply So this in into -- some -- their transmission to directly And down suppliers markets of will out the help Gillis of market. basically corridor. of and to and is there the gas there terms but with think quality a deal meaningful that they've coming for Transco had Texas volatility the

pretty So pretty on but hand, one important simple other. the on

Tristan Richardson

since anything to to would seeing X on just a full accommodate and from you like years last streamlining been just then you're about where question talk of on you're better demand we've a demand see Mid-Atlantic. Southeast at about meaningful Can seeing? regulatory what appreciate the to a had able in we're you broader permitting I commissioners maybe the side Alan. or the And time the questioning board the environment. of be It's it, here line a

Alan Armstrong

great a It's question. Yes.

not power permitting, grid have leadership. if think, supplies other. incremental to hand to gas very particularly think has trying the I on they they're see challenges we're to really have realize, backing supplies to the natural it's I I we and up responsible primary them the the available going Philips Chairman infrastructure been one very on renewables very best that and with of agency, the kind clear the FERC, FERC. on And don't to get provide responsible think the under it's do developed, the issue

seriously. all. agency, face not is think them on they it commission They and a an at I lost That very and that take responsibility as

review the opposition up not problem been deference, you the reform fossil process them very fight handles Chevron also fuels. the to have their really agreed kind to NEPA of So that's Court gives to and that take grab NEPA is to to really has the take and process NEPA environmental have appropriately everybody because thing excited process saw do pipeline with allows probably hold talking well. and which issues the as important to problem. that we around little up of revolves of against projects the The the is but really Supreme important, the And the construction, own but do a think about NEPA with the where most it

reform I'm projects a the permitting in people being process, And and that's arbitrarily really today. stop to way to lawsuits able could we excited really that. which and really from in actually stop process they're know tracking is just meaningful see that That NEPA cause the

the And for turned that's stop XXX that certificate as around so just permit. that a the right as against that are complaint anyway, that and judicial them see gives court way a the standard well quality the to the to states projects review allowed to important a would water important is

the but see not Supreme anything Court the seeing So reform, very pretty review. are primary on excited the to NEPA happening the we're those things really that were looking And on normally optimistic for. X I actually about permitting taking really

some be could down the not there road. see going we but So see some. relief quick, we It's to could

Operator

Our next Barclays. of line from Chen question Theresa comes the of

Theresa Chen

center-driven with be the we've And process to of on as the addition seem rates to market? and a expansion done several existing related addressing economics. that have? is Is projects tariffs through that requests as market your center or what natural hurdle in transmission. far gas multiples data as of on sheer to above very brownfield of the consistent the in number you these key seen move Based speed recently expectations implied in data you far The getting

Micheal Dunn

to that contracts excess your our of Micheal. are that has doing our there's businesses considering Overthrust we're be said, to was. as at question as still pipeline Theresa, this lot and allocating what a Northwest just in Alan MountainWest seeing I of going exploring, to base a is challenge. bit on not of projects transmission on that believe been all Pipeline we've And rates these tariff resources and a would been negotiated opportunities analyze Transco Yes, on or that's rate we're we're say of Pipeline

some critical of and to development over has the our a really this on been project And activity so engineers last redeploying teams months. focus several

see But I would say good our we're going on to really multiples projects.

fact, aren't none of We X of handle And projects multiple a any our anymore. businesses. doing them Xx in have transmission on

I priority because, said, as cost a need or loads. as appears to these continue important the for to is will be think is us. energy as online So they incredibly center the fact speed biggest trend to Alan market And data quickly their that their to opposed what that

incredible it gives us I an us new especially with some workplace does assets in where the to think that serve And our so certainly give are located, opportunity loads. leverage these

Theresa Chen

a on it. regulatory Got And follow-up the front.

mind season on months your we through As around within your business? it as your the the approach what on front? the fall, pertains next thoughts Any in as assets are latest election considerations that move few we this key to

Alan Armstrong

but topic, to a Yes, quickly. well that's big hairy it just I'll try address

terms front is important in our business of the probably are tax First in invest ability the and projects that opportunity of continue taxes have the flow. impact us cash and free the to an thing, to to us as of in these the high-return is on how very real of all, most it's we amount

a on. to pretty we're obvious us keeping it's and eye So close that something delta

even Beyond state Nesi and that that of the we XXX had administration, allowed to Constitution projects you government water a and Trump stopped really an project by tell have major get quality people the I solve to the to you would ability stop for remind prior that that because that. this during without certificate

legislative actually I think because bigger front And push. to is push law so a will great paying reform I the that a turns that the Congress it's build attention where see way actually there out infrastructure might be some to we in and allows more bigger us need. in that how we the think actually that's out pipeline a

what recently our the they've saw did for Barasso pipeline for industry industry. very are Senator and while the and thankful Brasco bill both we we so done And really nothing Mansion to Senator Manten and

the In to really do really this of case, and throw that the pipelines. transmission business didn't for a was side much

there's there the and -- today. current And the that. of the way be got state numbers we think up so to some in stack and did we Congress That's the

pipelines if that I they both would think more, like do for was possible. thought they to obviously,

we reform on could to do that serious so the out permitting to the think some see turns watching And how be opportunity see legislature an front.

say I to more So attention frankly. we're would little paying a that,

Operator

comes line question next from Goldman Our of the Sachs. Mackay John of

John Mackay

back go around to data conversation to quickly wanted centers. can if I the we

look that bring to you could something little market. Is can would Anything on was helpful. that up bit Transco? Is actually for but Just be would comments I you jurisdictional? just there the if location around that on us, more out speed flash that like? a non-FERC wondering the

Alan Armstrong

big the that is well thanks of kind shift pretty more John, I just question. that Yes. against grid. I for a terms off realize are realizing Well, now in a that's right they're extracting say of They up we're seeing because that that think developers would exhausted. wall generation the the what brick

cloud-based resource centers, allows to for significant electrification as just are on very as natural as And the so lot meter the one as generation load. some well capacity out go seeing is The a going both the and available. available areas is of to the of hand. permitting look as utilities a behind the general well it them growth for growth to data more data conventional build environment and gas on well, We where lot still power they're the continuing centers of

the all the Sorry, that speed big those approach as earlier and back way hyperscaler need in as for we developing that and with for allows is of hyperscaler to driving out seeing But are affordable comments, be infrastructure in said power on thing their the to my pointed Micheal gas But that areas abundant into resource -- the to have reliable and permitting and most the them developers. of mind the -- right market that is big is getting now, the terms into seems think I look where the well. top I they the markets.

lot as well. resource wind of and And so of a a available Wyoming we to resource available that's where where lot places in opportunity think we going like there's gas have be

we're think markets. I going areas a the as in so But we're load centers in lot to both those grow of data electrification that. And see going continues get other indirect conventional also our to from and to these utilities

John Mackay

up shifting? your that, gas one had a guess we're customer? just would Anything appreciate and but this hour. this I from I'll of of out of can I demand-ramp the of one-off lot around more perspective, squeeze LNG Louisiana to ramp. of interesting. guess Is we've kind kind of the kind macro with of be maybe a of I conversations I'd I acknowledge a be frame curious small, get kind is in. perspective pretty more Texas you top relatively this It's at a interesting. into trend trying Louisiana given

Alan Armstrong

diverse Yes. that all we that having coming We Louisiana to trend. from where diversity even if again, Texas the been that supply, Well, they us think that's mentioned has didn't a in of about to the utilities would And is and has think forward really that developed the and inflicted have the pricing market is think I've right Texas intrastate of just important. the you now. the of those I a more a my of will think say, supply pain of environment We if you resources about on some this Haynesville comments, think available some supplies access Haynesville the supply. south get as in

what's fluctuation them I mean, only to supplies is this look sense going from markets, makes and to the to really and Louisiana me, standpoint available. look and cost And a gives supply. it access places be recognizing in for been diverse them about to imposed that's low then see incurred not intrastate on more to a they're pricing thing only that did Texas that, like this important that the on occur more liable

away take is that the keynote that So from to project.

Operator

over This concludes the question-and-answer CEO, session. closing I to for and Alan remarks. would Armstrong, now like back turn to it President

Alan Armstrong

excited opportunity show how for you an excited as strong of help joining thank that we Williams in the for today. us mount the of demand and are organization we exciting deliver future front. very importantly, to on for growth we're at continues exciting for to of we're Well, all that Okay. in the much we time long us have that that list challenge what execution An us address, that an and made the but here we projects terms to that have is to continue

you thank much that, with joining for So today. us very

Operator

in your Thank This conference. program. for you participation concludes today's the

You may now disconnect.

The Williams Companies, Inc. (WMB) 6 Aug 242024 Q2 Earnings call transcript