WMB - Earnings call transcript Q3 2024 | The Williams Companies, Inc.

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Operator

Good day, and welcome to Williams Third Quarter 2024 Earnings Call. [Operator Instructions] As a reminder, this call may be recorded. I would now like to turn the call over to Danilo Juvane. Please go ahead.

Danilo Juvane

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

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

Alan Armstrong

record Well, lot of primarily driven you our of thank all adjusted with Gulf natural Danilo, to by A gas updates acquisition. another today. through walk storage us as quarter Great. positive morning thanks, you Coast EBITDA, for expansions and and transportation this joining delivered we

confidence have with our John acquisitions to acquisitions our portfolio and in fairly our strength natural gives fact, responded performance higher-than-expected remarks. The hurricane will In on overcome the once execution and better-than-planned core of this XXXX, returns which business and projects enough very his price midpoint strong a way for growth very to again projects our challenging what has gas so season environment. impactful see environment to the along pleased detail on been us been guidance raise in entire

return that through XX.X% double recent supports a in In has period, view the sector, capital note returns one midstream of sector for median XXXX our best the fact, a return cash of invested XX.X%. the nearly on Wells on Fargo delivered Williams 'XX the generating

of period. the without while that projects, X% by at during CAGR midpoint all this I'll credit X, X-year improving our expected cash Slide to of equity the recently completed will at here issuance our of guidance, our returns start EBITDA the metrics visible XXXX noting over suite strong lead looking Now within and

XXXX fields quarter. help as completing growth Winterfell new Regional well ensuring construction for in our been Transco's and Southside will begin two project, this are headwinds and large include the of is also ramp fact, winter and our deepwater, of in in connected fully And were growth heating ramping our gas production and as as and gas ahead production And as in large is our reliable Access service has on pace upcoming to We for increase prices we year project of to started where X-well following placing anchor the and right Northeast the of last placed call, service fully expansion. schedule CapEx into system Basin very the of These Discovery the see we've successful the [ under next clear we region full low Additionally, [ that in the well ] are also in the enhancement MountainWest these on us. and this behind of And a portion clean Energy available curtailments up August, construction a risk we and are to and drivers Beacon's projects completed Chevron's all into year. The in December. serve programs the begin drive excited all budget, for now mentioned Shell program large EBITDA up. season. reliability contracted. natural development up ] third in are onto there

X.X to a will of they future. growth starting itself, capacity Bcf the for Northwest entire from project at than on good Mountain FERC in [ [ EBITDA generation, coming Project, singular a years. Station will We X.X a have existing to its total be the already following: by day ]. the or SESE XXX These saying day Enhancement Utilities expected the X well the rate Southeast we contracted the First, growth pipeline 'XX, this of for Transco markets a our largest Bcf drivers have before, that well gas opportunities expansion include SESE filed of of high a drive growth projects greater out SESE we pipeline power that positioned provide ] contracted that some of wave SESE these Beyond will targets how contributions application in serve growth with of drive of see Supply and [ be in on its missed these come for next Southeast in record now ] long-haul [ for in of the a is to going from representation fact, across customers contribution we Carolina, supplies system. Valley we demand take Pipeline. amazing EBITDA delivering the benefits next projects into fully of. This project they and capacity will our ], starting And equivalent advantage is the the to mentioned contracted is North generate the pipeline tenth would demonstrates nation EBITDA and Virginia, to south project are are to alone. a valuable new that their Carolina, continue like Georgia as a as and Alabama. South just volumes Williams And extremely Mid-Atlantic and transmission growth continue

new began fourth list, by we MountainWest is dekatherms pleased expansion, projects, of Moving is in confirm system were a the receive from of late the down September MountainWest firm that Energy will FERC transportation quarter FERC's we Overthrust from are so on contracted XXX,XXX approximately this add to fully where on Louisiana jurisdiction certificate and System, FERC 'XX Gateway we the order that our Gathering service order including exempt our we several Westbound key and that system project construction the received pleased project we've entered well this is are Commonwealth in individually, on pipeline, to small date These recently totaling Construction of Connector expected of full the terms generate. agreements very steam ahead Transco's but I'm returns with also that of binding firm strong in-service underway an expansion projects Energy on three half capacity. collective the that the cubic XXX announce million and projects, feet will Virginia day into Northwest second year. roughly projects in these with next a but in

So acquisition. really growth MountainWest to strong showing very signs region now Intermountain the the on of nice and see on Northwest in our both up

LNG the For current just switching, supporting precedent environment businesses clearer. the the existing some growth this. is time of the to how coal Georgia data lateral an signed great The reshoring we've to as expansion of example center in that industrial talked attractive agreements now, gas sight and long-term for macro clearer demand line becomes exports, of serve Dalton in our Northern will and a recently is about

transmission And designed will signed projects are agreements of Electric SESE we demonstrates a amount XX-megawatt and will Just high Williams that's this we this Lakeland the commercial with decades provide growth recently path another many returns by contracted solar that end farm. decade. partner to which to utility & and that for [ like more project with of is The will that provide been ], system fully land the in be on is built is beyond owned and cited attractive off ideal development area deliver by existing tremendous an leverages Williams ], and project, demand energy was an [ finally, our earnings production we that on site for unsuited in who of solar for Florida-based growth. the a but traditional got development, it real a of has estate

for Our X% and list these contracted CAGR beyond to better of over across projects, that the business. the cash much has invested capital of on growth environment driven return our continues deals fast prospects than demand-driven and newly the environment the XX.X% it's grow

right is in opportunities. and stress So environment we've than seen in run we've we last had here us the generated years growth, seeing the a to of the that of period great is that's X front these much of we're the of really in kind kind stronger what want while opportunities now that

that So quarter in it growing able really that, walk now. And through the we the excited John? be right to we're rapidly to very space third demand is turn with to going I'm up John to in deliver financials. over to the are against

John Porter

here Alan. impact low financial Slide for of on once prices, adjusted our for And the gas our the to hurricane customers again, quarter even reduction saw Thanks, quarter, we saw of production performance, about producer EBITDA, X as with Starting natural resilient year-over-year grow beginning a third a temporary third increase continued spite XXXX. where business greater a summary of in also with versus XXXX we continue measures. right. All year-over-year X% significant

in about adjusted expense out. from to performance including businesses, growth acquisitions, unfavorably strong about sale is As on of up the $XXX was large-scale our the asset But a and natural of and of gas slide, would XXXX, growth effects X%. last by growth by noncash and see and EBITDA back flattens but acquisitions. our due million adjusted that million in our don't the course, And sales. you interest depreciation is transmission the storage we [indiscernible] include adjusted delta from our back our adjusted charge a to And our favorable also impacted we recent EPS looking the sale we growth the adjusted system. Year-to-date, we funds next now as growth rates up driven the available close metrics, $XXX noncash lagging the is year-over-year, and EBITDA that gains of adjusted Sable Aux asset from quarter delta EBITDA have see EBITDA primarily third see EPS, operations, XXXX gain from step-up did from in and AFFO of our of adjusted or sales our gains again, on year recent depreciation

see year AFFO For dividend we third X.X% was X.XXx year-to-date. for better. guidance X.Xx that XXXX, a line looking X% AFFO just quarter, XXXX XXXX, before CAGR over a based see grew or from X.XXx very X% of available prior dividend X%. in with in coverage XQ funds expectations dropping X.XXx, Also, our was debt was on our year-to-date. to and through back you on strong operations a our But and EBITDA coverage about And X-year growth adjusted over the of down

guidance. move into growth the for provide quarter, before to EBITDA financial next our to our deeper slide little dig we'll adjusted update an So a we the and

million, to $XXX billion billion of $X.XX $X.XX We EBITDA, reflecting from of ]. $X midpoint now adjusted the are our pleased increase to of guidance range a original new $X.XXX to [ billion, the billion

per end based the in of EBITDA coming metrics, mentioned their year, at Additionally, in key as AFFO on changes, other calls our XXXX adjusted see our we adjusted share share XXXX. our high per for improved we this and prior and before ranges EPS outlook

from guidance guidance X.XXx to the $X.XX, to we of those for shifted improvement XXXX the now and metrics midpoint and respectively we've leverage see X.Xx. So in $X.XX

our Finally, reaffirming we update issued, are guidance February. plan our we but XXXX year to XXXX provide an results full we when originally as financial release in

with the the January Hub plan strip So raise again, like though will to of on around and that pleased lower XXXX set XXXX year. prices gas ability the than for company our it performance our very business XX% be Henry guidance we likely looks financial even X prices this natural

those as Mexico So integration and over combined next Walking slide including delivering businesses, flawless little to in take the $XX to last expected, improved transmission results. Hartree third Coast storage the quarter from turn Energy of our start a just now XX% Gulf the let's or million with contribution from $X.X which full project. Transco the of following billion, at revenues, $X.XXX billion from this year's Regional a we Access a higher acquisition, which quarter effort, closer year's Gulf look effects to is due

favorable area. total million also impacts flat Now last in flat year divestiture. The Northeast the gas in and of offset. million seen growth interest services and We've DJ basically ] X, from The fourth Pass by the August growth about of unfavorable the segment by million, our reductions Aux was business reflected the were quarter which result $XX higher our the completed temporary plan. saw last have [ lower then line primarily And $XX and also on impacted NGL Bayou [ third pipeline was the also with there, quarter. against of prices the in results, about producer gas we G&P increased volumetric XQ gas now escalations a on performance provided was $XX favorably supported we lower that business Overall, million we've marketing Segment also our Northeast systems, $X volumes in underperformance hurricane-related in West has volumes sale in results total Sable rich benefiting XXXX. year's those XXXX. Shifting West, the greater low same dry plan which also those of and ethane for with results, some in original Gulf rate gathering Haynesville including impacted were Mexico, higher gas our ] natural dry systems XXXX as the you strong systems, recoveries. versus in a seen transactions unfavorably were to Overland those offset of from see

joint $XX Other million were venture in primarily realized our about operations included upstream year to Our from segment last lower down due prices.

to with plan, was third Mexico turn again, of to proving of pricing asset I'll in gas So line business Alan. a grow impact it once tough Gulf storms back was business natural of ability our portfolio and sales again it in ]. And environment a that our [ that, with quarter our spite the

Alan Armstrong

John. thanks, Well, Okay.

across quarter turn just truly we've Despite execution, our that up So face look both we compelling our sight start share Not forget, to but exceeded projects emphasizing very serve forecast earnings to what And demand questions. people in environment roster your issue to teams prices of do gas this over that probably vital, footprint. to I'll are is this as year future, each projects this price to for remarks we it right production we been few a And large-scale gas that think bit that rebound. gas are the year. natural natural quite story full the on really a expansion they certainly. growth with an the these morning. commercialize don't catalyst systems our business expectations does in growing we're spring line high-return of own clear financial is to I the excel and executing before missing in only think a now low loaded continue a as our really ramping have natural of this we a we've a able as in our a projects of by we've provide deliver been to in, you which able to strong of the closing as curtailment continue about

a pile really capital are So systems pull-through when on. gathering environment is of bullish very really, into because the it we're But to drilling all we're And turning for our importantly, our on a transmission get demand demand just will required it long-term a little strong the our existing begin lot on seeing is gas without today part big line that to the up. natural comes or pads. position systems connecting very is that of producers on production going curtailment

demand on out call powerful we a when all sits there pretty seeing. we're this catalyst see to gas So that the the growing do support

growing in activity does for regions the States, demand of the transmission the gas this where all operate. particularly in So underscore accelerating capacity natural we United

both reshoring well as today's and manufacturing projected play power from gas meeting generation in growth We of our natural demand exports. LNG will energy-intensive energy the are valuable role the confident in infrastructure as

growth faster global natural to for but profitability returns steadily we've affordable most gas-centric domestic is with business the questions. energy energy unlock up financial present, built prolific it the And U.S. with is to Williams positioned the is provider and best open also basins, U.S. future. your the for access in for needs even that the As vast reserve helping strong we'll a in most serve that, record increasing market. In and clean delivering for closing, positioned while infrastructure the

Operator

comes question first Jeremy Securities. JPMorgan Our with Tonet Instructions] from [Operator

Jeremy Tonet

wanted could, situation. as little just to you bit, expectations possibly to put the how Could an conversations I call pipes. supportive? And of to point, much XXXX. all -- it's guess. producer into fine uptick if on you then open There's far the point, that back at this come I on gas for Thanks if macro price of I as could space your see wanted here some I a on the a just commentary

of wouldn't of you could spend maybe and the or see you call have the in type do to higher third them have an fill a leverage what money environment but tier up? Just much where some pipes on operating basins second

Alan Armstrong

to Yes. I'll could last what our gathering of I question of the that, Michael kind see on and hit part the we of hit will response ask systems.

a are would some the our pipes, which the just loaded obviously, Northwest take to the systems are in projects systems of got pretty part, up, ability additional ability through of of On a of MountainWest ] combination expanded low the that those advantage And these like a I most say, eking we're completely and at some out for pipes general, have addition interconnects Pipeline, but systems of the lot that systems. the be assets way our capacity existing cost. expand out between we've to [

this project markets, get we Pipeline area the very recent is in Opal these Basin a and which capacity adds and obviously the so and just And the between Kern compression quarter that did critical some [ demand in Clay River [indiscernible] in ] on more days. Northwest

And pretty about you to operating West in relative leverage value the have kind it occurring talk now. And of that capital are to example, over Michael, to those ]. and gathering so an are you [ right things project, I'll of small turn that's of the that amount just the the

Micheal Dunn

increase it price will Jeremy, production there's XXXX, on certainly definitely a into of lot end somewhat the be coming responsive. to opportunity producer and

that drilled and Bcf shut but in to or connected about right what our We flowing now, or completed, have either flowing [indiscernible] systems. aren't per originally is been have complete wells and have day from X was it been

so [ between the the that's Haynesville. and And ] Marcellus

rebound. gathering this earlier has gas come as been off producers seen some through we've increase to the actually prices some now curtailed once our and of summer. there's curtailments that So are flowing an volumes definitely And the opportunity systems

So to In to about, bring the very we our able through to are on increase by the quickly. pretty of just operation the some these encouraged of be volumes turning opportunity is volumes of systems. these rapidly some

in So demand We've them several our generation that growth next going markets growth it at power coal all rebound, expect virtually by that even can respond still There's am last see the with encouraged all from year the deciding power don't we're of plants when to and very offline, that growing do. demand all this the year-over-year I years, power have the prices we taken some seeing which do seen been with over to be that. I side. on quickly markets. And generation that

Jeremy Tonet

Maybe pivoting has to some recent in years, to the the industry done Williams large, at portfolio. nicely bolt-ons adding

seen broadly in industry have steadily continue. the entity consolidation We

Williams see wondering there? Just Or the attractive more you not about consolidation how there's consolidation future? entity sense? opportunity makes level thinks really Or in industry never Would bolt-ons?

Alan Armstrong

growth amount to in that's what has with have these of have a space. Yes, updating it's been growth in certainly, it's days we mix. that up We've growth growth overcome business. lot for to that's pretty look that that base And a in obviously, we acquisitions a seems always of And of comparing of level other always very of been we process is that at growth we of kind frankly, any the a is But constantly when there as we're steady of hard on the kind of have do lot the outdated driver our hurdle as the acquisition, fortunate it the one accelerating, really frankly, within our we organic a plan we're seeing to look done, get players pretty areas. and like basis. with, at keep obviously, with soon

and -- our to our is fully we do. really in acquisitions degree issue Williams that business that tough makes strong perspective have of not valued the the very I a just to the that's that's stock own off So the think and from growth things

the assets is that is to kind And that So fact, we the turned of able is where the solid we that, on of one we've the market kind a going. for lot and bit us. providing of grows of pub our into our little a And ahead the performance ] where and of in us to have it's helped on storage, things is so that that environment example got good going, be [ great news as acquisitions gas low that had for us that has overcome a are capacity a growing this price of that bolt-on we capacity on very EBITDA rapidly year. do transactions think we're where

continue for be just about the will would for us that say, we'll the down is acquisitions going continuing us, to be I will road. strategic So where I think puck think and and bolt-ons

I that's So of in our right things see kind the now. way space

Operator

Our Wells question with Fargo. Praneeth next Satish comes from

Praneeth Satish

with are you opportunities demand of rates an shift to negotiated seeing space come increased pressure as there's capacity, recourse your seeing from contracts there renewals? power the this I for there? And intensifies? Obviously, all you upward or guess rates lot kind cost of opportunity rates secondly, pipeline competition data to up at generation. to increase existing higher a centers, then the competition as Is service of on are rates rates for capacity from more and

Alan Armstrong

great to system front challenge that on that us it's new for know is of on Yes, question. cost that and any the capacity. a The people precious is relative our capacity super exists that

had that time tell only only is in like term can the anybody of available way to themselves always And way capacity bid the existing for so on the cost was XX for The we capacity. already distinguish story that built the the anybody distinguish last themselves the term, service any and we for years. come can

base capacity what offered our we're utilities. become already don't of is it seeing a lengthening ability We the they original that available. have really that in to to price was was term up So that when if that's would

gets back, old out ready really [indiscernible] anything does very -- story. that a so when if turned get is offered And which

was like ago now. X years think that I

back that very because not it's we appreciate capacity do the capacity money is. So turn valuable how see and often, people incredibly

think is is to I built our expansion we knew have could do when So, ] the probably along lot system combine us lateral adult a great unfortunately, of that. for road the whole we great to opportunity I example [ of the it -- opportunity that. leverage expansion where that down build that, existing see that expansions opportunity a up. We we price have some don't

in And that so we a built way that expansion. that,

And relatively of so to see return because low And build to that the opportunity high to value very is are when of cost returns. that that high we're cost relative expansions along, driving comes things capacity. system, opportunity relatively to the expansion which the the new that's low kind going continue expansion of along our existing very

Praneeth Satish

large, dollars guess And set looking I opportunity billions it gas of on how the it's at seems next of like in larger gets expansions front spending years. quarter. just the And good over returns here you, there's thinking few neutral more of it a potentially at you it cash like kind each of closer the next are And of few to opportunities? would dividends over moving of potential consider spending to you capture the you free kind about years to of flow these CapEx after if increase sanction these some seems stands projects?

Alan Armstrong

[ No. Yes. when mean sub-X you doing capacity. keep ] your just is projects, the expanding out I multiple you're challenge

a if load were things but These not for doing projects you're coming for chewing in now. up things regional problem. that that's those energy you up kind are coming are we're very you're having expansion, high-return to on of having these X especially really access high-class projects, on So have capacity to thing, like through, Deepwater when to and the are fact, ship one the But that very years like high-return be that now, projects. wait come would as

hard returns capacity you're And there, kind so rolling of and we've those pretty up kind projects. generating of chew the already when it's got to on train

the that's us is much that have for so a picture really is continuing incremental capacity to projects. to these problem with high-return generate high-class that very And so we're

Operator

comes question Indraneel with next America. Bank of Mitra from Our

Indraneel Mitra

wanted put and the you're delay finer in I point shut-ins turn a to seeing. maybe lines that on

combined. last to day trending second X quarter, two quarter are where gas third you the Bcf a and think have the the about now Haynesville, Northeast the the said we that's there's quarter? Wondering similar how we prices in that between I in between

Alan Armstrong

the is X of X/X in ] about the the of sorry, the in Haynesville in today [ about is Marcellus Haynesville, between we're and about Haynesville in It's that Bcf at shut-ins -- and a the in that mix the Haynesville. We're DUCs three about Yes. it Marcellus Northeast and ] primarily gas that's the ] -- the delayed been XX-XX [ [ as it's the shut in. was TILs Haynesville or BCF now

the instead come of Northeast, most So the about there online. of in [indiscernible] But the the in gas still X/X XX% it's Haynesville up gas shut has today. back in Northeast of is in

So online. of that seeing come some back

saw all announced has that think you gas I online. EQT back had brought they their

as respond have So some producers we there are a seeing rebounded prices bit in Northeast. the

Indraneel Mitra

and delivering the southeast question, utilities. second My to market first [ SESE ] market to obviously went

with proposing in of peers you essentially demand endpoint or that over additional longer Now know competing Transco load? projects disadvantage have you ], some Southeast lot go SESE where term, Louisiana Georgia. see peers competing how your process the versus going of with for you do early an but from I to forward? to for an a it's And and the have advantage [

Alan Armstrong

recently, [ ] markets question. in and Sonat distribution The and a positioned ] project of Central not lot South is bigger system Yes, markets Transco [ that good a effectively in. southern is Kendra the of Georgia announced that hits a lot that

of So part and Georgia. through the cap through Transco and runs northeast ] up [ Atlanta the court

positioned as capturing projects the more parts the expansion that And I power south a a to distributed we're be [indiscernible] are that deliver configured. central going to and gas it's And the think [ projects. generation large-scale of lot system, so the into is Sonat of ] Georgia

super our a that's I like that availability. bit going that gas where that, And we station and is the critical. coming I big of high-pressure but out the perspective, from from occur of think Appalachia transmission that's can So is positioned, our access where the we're system think do what supply is to here

markets, Southeast [ be supplies that more serving about So then based that supplies. Marcellus from and project Kendra to Crossing and system, has if Utica to proposed the you supply [ going you both Haynesville the capable ] about think ] that's and of Mid-Atlantic think the Mississippi area, Sonat

And difference the between projects. so that's really those two

I two Transco of major there was supply is well. as the the terms sourced distribute distinction on. was But that Haynesville kind of production the where think projects, certainly, to in those has ability

Unknown Executive

Alan, be [indiscernible], a North up proposed going add, the to for gas, pile area coming lot I [indiscernible] the well. beneficial lot to which Haynesville being Yes. would A over of projects to is of expand us is transfer that these that. that from going as are actually to

So us ] to paint projects a those be will given ]. [ FID to that [ benefit

Operator

comes Our UBS. question with Manav next Gupta from

Manav Gupta

My additions Slide but deck? new more these the expansion. two help slide get XX. natural Can to some two about question relates bottom the and details Dalton more Wild could we at Trail not Project additions notice I on

Micheal Dunn

on Wild Hub, River [indiscernible] [ Corners grow Northwest project Southwest move The hub White us an but been interconnect It's MountainWest which Four a up area a of can is it's which that the in in ] the the Northwest Trail the our ] from basically market White is station as increase to to is the Basin capacity Pipeline to opportunity is River has the also gas, from well area on Clay takeaway system, Pipeline proposed. one deliverability move mentioned It Yes. Alan it capacity [ project compressor Northeast the has greenfield Basin. ones down give area as the to This Opal of system. a Clay and Pipeline will Northwest Utah, facility in which the storage and lot way to Wyoming.

markets move greenfield opportunity also capital fourth as very as gas well to to and to facility. Southwest project. the It's Wyoming storage Xc We'll be a to a in quarter efficient and here a So FERC. there the connectivity great have compressor a application

for that So between get a like years to or and year and process a ultimately something take X.X year construction permits we filed. [indiscernible] about that

the gas over that we is projects to units the plant have years. that the several other from is Wyoming two coal converted coal our gas as next That to for is expand far to that As Southwest conversion. the are project a there that for partially in usage coal and further other from moving noting

basically metering at capital-efficient which we taken has So [indiscernible] the two capacity those prior a with on. FERC. like same something that very project, And have modifications last shipper project modifications metering and notice then projects there, the and

So quicker much those are process. typically, a

Alan Armstrong

then he Lateral. the Dalton about asked And

Micheal Dunn

Yes.

is So near the Dalton Lateral Atlanta.

So it's built over XX,XXX and be miles It's a partnership It then just we're would greenfield, a with lateral. on a that XX% west XX,XXX of a long It's lateral. was project of X Atlanta. ], years that so XXX-mile compression, AGL scope. them. this [ XX It's about with simple partners about [indiscernible]. on horsepower just And really horsepower about It's brownfield fairly ago.

contemplating XXXX standpoint, is in-service simple. customers the desired So the talking from date And a from date in-service the we're that what we're on that's scope fairly now, based to.

that expand out feet said, We could open a we have have will season or per for the we already shipper cubic million reasonably on depending but we in day. that for believe of turns little today like season open that capacity, XXX close an anchor an a higher, how closes I to today. the XXX place remainder day million that

Manav Gupta

structures, A balance in quick Blue is your strategic on here JV anything simplify Racer Brazos, [ it's front? follow-up the Any further good that sheet ], priority to position. is whether a

Alan Armstrong

to Chad, do You want that? take

Chad Zamarin

is Chad. This Yes.

it makes tuck capabilities. interest. of Alan like integration because with mentioned those a of or tuck-ins We continue also, kind that sense to perspective. in work kinds they just know making as of that come those from those is, sure low allocation, We matter assets, returns the a high mentioned, to not and really JV capital Alan capacity risk But bolt-ons. transactions we have, look it we at whether

continue how the we optimize can of we yes, kind to look at portfolio. So

earlier that while at did You Aux sold year saw our small with the the the PXX in time, same when we Sable. and interest we in interest, that bought in acquisition Discovery

seeing. look So continue of organic compete at but kind have they'll we growth that to we're will the attractive to those, projects with

Operator

comes Chen with Barclays. from question Theresa next Our

Theresa Chen

to macro. victory the views what you the you, Maybe it your turning and the election back means environment what and following industry in infrastructure tailwinds with how energy in of the are on front the your the business impacts general? for Alan, results, behind Trump

Alan Armstrong

bonus outcome, have right with most first even we we would favorable probably and say house the goes plan if huge a guidance expect, and positive to tangible very will that Republican what Republican appreciation a would particularly particularly is tax I in Yes. and be the Senate a very in now.

So I the our would point, us say probably vantage immediate term, impact to financially. from that's as look we in most at

so boy, macro In to much now. we're of -- we trying growth the address have environment, terms just it's that will right some how drive

and the to not finally that would hopeful some be probably piling Certainly that to issue both to all occurring and to that it's going of Republican challenge executive control branch want the branch. about I dealt a removing of the in the -- think going way. energy It's business industry the think at economy beneficial I beneficial power going task, to meaningful as a very But Republican perhaps be get industries, certainly simple to well permitting hopefully, and with positive the just done. for be certainly with really legislative restraints more I expand. underestimate a present and in And for infrastructure control durable that that. if as lot a with that's continues gets on more don't that,

curtailment that, our associated of at investor very of Because bit a of So and impact us. of dividend. I looking our I we've that back it would But a coverage for an could infrastructure think point taxes, with of of up optimistic held meaningful had to freeing terms relates change which outlook say, reserve pretty as about be that of view right the a as that on thinking in now, certainly, quite us and a bit build. quite

our So most keeping that's the point. eyes thing probably we're on this at

Theresa Chen

how And are turning and guest from At to be to color provide expectations point your fourth quarter, what would this you trending on marketing some able that's here? fundamentals. the activities, your the in

Alan Armstrong

that? want to take you do Chad,

Chad Zamarin

marketing quarter A of our is lot of year. Chad. the Yes, sure. This activity first takes place in the

in to if years. see of And or volatility winter well the we dislocations prior we're up of certainly seen set than couple have take is year volatility we so but this less something advantage

And sitting up for we also but for are positive the results and event say, the but if or the we so here the winter up a expect quarter we I year. year, primarily, of business the set remainder marketing in following -- would see show are the see volatility first of well results of

Operator

next Sachs. John Mackay Our with comes question Goldman from

John Mackay

growth just you've your X% to of of You Alan, also with in kind tracking going been about X% opportunities forward. longer-term kind you're two talking beat here? guys mentioned target? about have rate. maybe line to that you come you could revisit from be for or talking What Can spend a looking that we should looking you're that what -- minute for specifically

Alan Armstrong

stuff got right John. are that's on certainly large that. that just in We're longer question, say the Yes, obviously call projects growth. that now these of we would new amount not already to that us going amount that term, great Well, and would for of have drive But opportunities that look the higher drive contracted until we've contracted. as will we business up projects as I the showing returns large

already growth Now a that the unusual bit would this of growth contracted to benefit is on. come much other without have

and to if growth, do have the think not have you clock though generate you like kind built And the that of plenty or any we'll roll of we've acquisitions we about even anything that back on capacity bolt-on done, so that. acquisitions on our into

one contracted Said business way, help would another drive that that's got thing we've already. that of growth already kind I will highlight. the So

capacity the drive are have of so growth. kind that identified new themselves and horizon not the opportunities over will that things that And a

lot back built Additionally, a in very That's catalyst of spring us. large loaded the heard terms about really a springing of talk have on. you we in that don't for Michael this production

are pretty those is of a lot a include the start evident the are right we would so in looking in growth. us as our now things team a our at to and business probably we're opportunity contracted right that now it to that And way converting to that guidance

John Mackay

data over follow-up, you've some And of these center the the of the before? guys willingness they for are benefit part just Could you past conversation? a few of -- What's that give those the ] of Maybe of of to [ have conversations conversations that than the of how look we're as meter what what these beginning better what anything had returns just looking couple of maybe actually a behind wondering kind the quick Is more you maybe like? opportunities up now we've frame versus months. year? at kind on look them could just what like seen progressed

Alan Armstrong

of in large when serve that. center is a they're the we that conversion of it not both those of we're sure up -- not are look that key and conversion the make that with to some mean them we're you the with both you these behind I latest they're lot commissions and [indiscernible] in if of because making The they're for right opportunities. getting Duke's on about in the you numbers are [ that approved mix very ], to seeing would the -- demand. terms very power Well, in generation conversion. right lot Jim behind IRPs working like talking a that's and are big you region power sure very say coal for concerned that, gets Bridger I and built saw and that you left the of meter the These starting a ] market. with with growth now at X some generators governors and the of work very IRP the Yes. with a on there lot to a regions of their pound are power of to numbers stack number Both stack gas-fired gigawatts so MountainWest states generation being planning the to issue, large table becoming behind certainly left [ that on stack in their be of large if and load that the and really enough having now, being on a states you is top out data of trying areas. lot that's with look dealing at We're got in

by really So growth. expansion energy that and kind [ And the the another grid like projects Dalton places Europe of industrial are is be done opportunity, the bottling just those of driven have driven that's say lateral I and ] would stuff the being just -- on used those one businesses to of that costs frankly, reshoring ultimately back manufacturing in they because to U.S.

finally, the on detailed though, we home. And would going low-cost a think lot on behind expect you I discussions the here on So players a a that of very is front. have lot then lot that with energy of that driving meter, of the

that the that. we is And some provide in to of just is help gas, generation and us would joint some whole in on that the just for provide of where ventures power

infrastructure we in Our there's where number the have and is particularly support set out the detailed transportation But can a that. obviously, land gas centers. up discussions going that. and of on of provide focus, where the than getting in business areas help we that very data more would already

how it's of us the it's for for So predict, opportunity. in board new frankly, much actually a those because will is kind hit much terms us. of that to -- area And exactly hard this of across pretty

it we sure. has started we So the in gotten to at first year and are for of now, the of the say concrete terms positive much where than first we at the would of where started more year more I where

Operator

Wolfe next comes Stanley from with question Our Keith Research.

Keith Stanley

of getting to at how now built to moving ]. wanted Can capacity have you same point? surprised we're were your has much pipes I competitors Lake you the commitments going of just us time. Haynesville take-or-pay by greenfield large ask some on because forward [ at the And remind three this

Alan Armstrong

is that's Fact big. much from can terribly you the to going where and going of and I'm look too majority up the not it's of specs nitrogen have surprised it, of project, that. gas the required. to that vast meet I'm terribly that. And to specs capacity of because not the at just done we're surprised somewhere, are from to on seeing if how our and come is to balance First have that low on contracting particularly be contracted demand take-and-pay starting growth going pretty terms that in too gas mount we've all, is of other LNG to come

don't somewhere. by think is. other like know those I would I they're I'm contracted assume it's ours if But that, So terribly contracted, contracted have that well projects demand they're how well not too frankly. going surprised people not, just know are. they're a sign be I But to is assuming gas well that surprised. from incremental this there's come to for I

Chad Zamarin

historically that also East is this add I'd was plumbed Chad. and the gas Northeast. to Haynesville Yes, move to the

volumes over south to Bcf meet to of demand. growth even that ours, models will that out And even be point, want early going models, so will LNG XXXXs existing markets. want to the a the to third-party not showing there's day are to move move mean, of to by volumes but Haynesville the I first XX LNG But Alan's

And going that's to markets. to to its gas way so LNG of those lot find a that's need

Keith Stanley

FERC Energy any on any not you're in the time The for not, steps if from I'm Regional where on second line question, and I watching sure seeking this certificate or a temporary but or things are next circuit? Access, update missed from DC

Micheal Dunn

Yes.

DC we the certificate in all well. and think made made as I have application filings circuit the our regard actions, been to a temporary for

would we're But a to that. I complete with FERC FERC REA DC was by on work operational And so say just our from response And a take waiting it we're confident, ]. we're like and circuit. decision, operate legal now, is and that standpoint, that we're I gas. that action for all FERC The behind very place. provided firmly the have renewing is to their mechanical the pipeline flowing is regard looks ultimately, we'll standing encouraged awaiting And as of [ certificate to request in the pretty very action

Operator

Catellier comes next Robert question with CIBC. Our from

Robert Catellier

of dividend growth enough on of balance have in Where to capacity yourself here? you I'd to having you you ahead you sheet comment front the growth policy. how see influence the do like significant will what's you profile handle

Alan Armstrong

I been in investing really so the We capacity A has if transmission for previously these so of that big high-return Rob. return at kind as will, high that of a we really same mentioned energy projects. EBITDA again, growth that, certainly because are the much prime we've projects whole -- on, of lot -- come Once earlier, that we're you projects lot pump, chewing now the because, regional as are started access. up these will of generating train projects these now we've time. not on and not we're Yes, kind just got have these deepwater

the all. So needing to concern dividend about all at at back no pull

we we're it's we do around fact, capacity exactly I figure to will what say would that trying because available. the In have excess and the probably way out capital other just with

yes, So radar put our screen. come has not way. that it on I'll that

Robert Catellier

And question, we then presidential to growth on the of one what might to is administration I growth. might want change the here. could go but obviously, adding things back Speculative, speculate about we be

that tends arguably. to inflation So risk

you potential the how inflation protecting and project of from risk? your are So yourselves returns

Alan Armstrong

It's good question. Yes. a

we you these margin business, build if that the you think look it's gathering operating contracts. in we Our very a high that to at margin. automatically make on projects, the operating -- And if

is conservative inflationary know rate risk the like we're capital in going we either the to to it are real make initially is steel very we lock we we when the that impacts that build for inflation sure driver or of the so price that invest estimating that. we And absolutely and what and and be in,

So I would be is much so operating really not capital leverage. would our say where our the risk risk

is tell our our would I you every thing that other within X obviously, pipeline, rate those that cases The rates work the years. file way we

space inflation in in over a we're because just that and because a of our the adjustment haven't in to in up filed they're capture that set the position a that business. case unlike rates earning, the lot we're way long time a So competitors of rate

the set that to not really than big matter take estimates us that's a our of other we capital too so account. making And side when that and into a risk sure risk, of we

Robert Catellier

storage in of position, storage there with given medium view? to to to important your how be much area, years, should from be done large size in you've the point I'm would strategic that acquisition recent question. respect curious you just a a Last how

Alan Armstrong

[indiscernible]? somebody if acquired saying You're else

Robert Catellier

Yes, was while that pretty something had for some scale. there sale significant

Alan Armstrong

well price on it it obviously, fits depends strategy. I just think, I and Yes. mean, the into how our

bullish very realize right spot has are such the being from a we're but that now also right yet brownfield perspective, the kind very sweet we're expansions that only So of of our at. been storage higher what pricing now, supported in where been assets we've margins acquiring we but kind than much

spot a nice in there. So right kind of

So we've decrease cycles pricing either. the on way before. to in storage demand that overbuilt we we've time bullish I get think storage. are, it it want We as see don't the been And in as -- for would that over watched a

keeping we're thing the eye that's on So our that.

Chad Zamarin

note Yes. not all And created it's that I important think to storage is equal.

for between bridge against area critical transaction, asset markets focused production, the Gulf Rockies on, integrate those Transco to both storage about with Nortex that deliverability. an Basin is in demand to think and If really you ability what we The and important assets power and storage the West Worth and injection Coast [indiscernible] Dallas-Fort complex. Clay our East

not storage look will created all we at but So storage, is equal.

constantly And so we're looking for.

be might the what earlier, is needed? that mentioned might fits kind Alan and something there of As And what next fundamental be setup.

Operator

Everen with comes TPH Company. from question Zack Van & next Our

Zackery Van Everen

additional expand back future? the and Haynesville want still question a potentially or being going leg in to announced, around a to projects need with pipelines there leg the is Just those

Micheal Dunn

an Yes, to that. I would definitely say do opportunity there's

the production talked or XX next that Chad grow Haynesville or expectation the Bcf As about earlier, appetite by there decade quicker upon depending an there. so is even over LNG would

so or entering a an looping definitely project [ there's of by either certainly think the that's anybody additional portion by to expand I by Lake ] market So opportunity projects today. the foreclosed economically that's compression not

Zackery Van Everen

project do ] are along [ those wait large appetite just you Or before right the maybe announce mainline? of with you one customers if us, to another there certain time able have that SESE you is a the with you And then to remind respect on is now. ongoing to amount there? Can Transco

Alan Armstrong

say Yes. is the I example. just that and path That a that. right capacity of comes lateral would within is great of off Dalton the

And something in capacity no that so example that there, along it's that's overlap the of same yet that with has great whatsoever a building we're still region.

something has is is been on and bit it the you think once overblown, I file, own project impact, So area that of an topic, doing get and on within say issue perhaps another road once a because drag might from it on environmental permitting, the this the other. a that to if that a down that issue about you're risky comments they would top same permitting an is proposition I'd work add combined you're standpoint when issue my have little talk you from and

about so And that [ we with gas on because that so and for us we on and very badly. need Duke because us do timing putting have we're any very time, particularly projects that these on to customers ] has delivering dependent are seriously been that sensitive not that take [indiscernible] very risk they

kind pipeline sensitive. means to going were work regard the drive another. than mean same look things while or area. just not larger in can't expanded our start to if while projects those the protect are like not could called But back project is So doing the going land, wet expansion and It impact, things try can't to another put the the project that are were we it a expand It doesn't certainly at we're those a and in of you within that or that in expand mean that originally risk. for that the lose to on expand pipeline that an you're not to into same pipeline And you you it interest does it a that have of make customers' just it of zone. things regions combine

Micheal Dunn

distinct site that, Connector same supply FERC really identified, evaluated simultaneously, to and of at Energy say a the would corridor key and and the where demand to separate they those if allowed them both we're separately customers were projects, though, and sell-side the analyzed is project actually installing you enhancement do projects example the projects, compression in sure same but those I got you Commonwealth are where great and for us distinct reliability making will. the And I've but have

Chad Zamarin

that be of projects. to don't Yes. able to commercial [indiscernible] opportunities any think commercialize we're going see concern I we because not of the stacking

on ] I [ phase think we to opportunities be commercial -- SESE filling kind of deferring the a and like first of permitting commercial kind will of looks needed opportunities next good that the to job don't through pace of expect we've line project. because of commercial believe the the of kind really process. well done activity the It fit within wave the we of the navigate of time

Operator

Dingmann Our with Truist. Neal question next from comes

Unknown Analyst

Wilson [ on Jack for ] is Neal. This

small where into? Just around medium-term require soon near pipes center-driven question And will change flexibility around a equipment? data could quick be other Are much Transco. there this scenarios relatively tapped compression to or

Alan Armstrong

the your to mean yes. is answer I question

those. Transco, a expansions small few at of we and that of make We areas relatively looking we have are could direct

do that one different very of if scale that really we so kind is of and size facilities, setup XXX-megawatt that's the at answer that's a facility. the talking completely of So than and somebody can the that's hyperscale for the yes, you're looking XXX- facility about on we're -- looking dependent or

certainly So those we [indiscernible]. kind of facilities,

Operator

That's time we Alan back questions. have the turn call I'd for over closing remarks. all the to you. Thank to Armstrong for like

Alan Armstrong

for you appreciate I plugging really all thank in. the Okay. Well, your interest.

here a expansion about with provide comprehensive would we'd permitting tax We and think to of for what reform a some we're that as really are happens here the pay lot as really going the be to it into perhaps of. the of infrastructure beneficiary that pretty benefit relates excited attention we U.S. environment well close as in house

today where excited holds really about these see for suit. forecast our what the we and excited as to of So future own roll changes some we are see

joining So today. us for you thank

Operator

Thank program, does Everyone, conclude you you for your have participation. may and great day. the now This disconnect. a

The Williams Companies, Inc. (WMB) 7 Nov 242024 Q3 Earnings call transcript