WMB - Earnings call transcript Q4 2024 | The Williams Companies, Inc.

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Operator

Good day, and thank you for standing by. Welcome to the Williams Fourth Quarter 2024 Earnings Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I'd 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

Marvin. Thanks, everyone. morning, Good joining for for the interest Williams Companies. us you your and in Thank released press and our presentation we speak afternoon, Yesterday earnings morning. this President Officer, Porter, CEO, to Financial you that release and Alan Chief Armstrong; our John will our the and joining the Strategic Executive our are Vice of Corporate call Also Michael Operating Chief Zamarin, our us and Wilson, Lane Chad on Development. Officer; our today Dunn, General Counsel; President

This disclaimer our review important these disclaimer to of presentation And the reconciliation principles. statements. presentation materials, non-GAAP to In reconcile remarks it. should that accepted are measures back in is today's materials. a integral you related schedules our find included to presentation appear and materials accounting the generally we forward-looking you'll and Also at

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

Alan Armstrong

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

story momentum very quarter how with We positive driven performance, positive in even today fourth 'XX more but have to so on 'XX and for on really our beyond. share a growth has you

X importantly, capacity on [indiscernible] by some start at from beginning winter, highlights feed here [ gas back look system. I'll with that natural and has both a experienced XXXX. for this Transco on unprecedented our for ] noting So Slide

of with a we XXth recorded winter. time due all-time of LNG all-time it due Transco back heating, each the generation in that And month, exports and Southeast. ever happened just last fact, this along from than January to weather. Northeast, just power corridor. we that combination the across highest Carolinas on widespread consistent Transco despite the and days moving wasn't fact, for more In decatherms cold was back we've And the XX the base the weather loads around, It set volume record XXXX. to this And one about record of demand previous back million during peak occurred XX% an milder to or XXX the had monthly surpassing to previous

we very the So on also ] paying early that [ we up rewriting the are But ] strategy our really a natural shareholders. and staying focused be customers. is married big reliable strategy execution history to on of our gas in good infrastructure on innings of expansion a has peak remain and deliver crisp continue for off manner convinced days, our projects our [ book very with a way for team intensely executing large-scale in to in

The both These full areas, in consumers even to switching has avoiding been in for of open irony the the on despite And project running X,XXX some these the the necessary. they opposition foot emission the claiming contracted under a like of as gas then aren't hospital Enhancement these of that opposition in coal. and New project like is Reliability Reliability the areas capacity are in the more [ thing key project that in motivated projects. for water toughest though December, Virginia run that and ] Access did budget. expanding of emissions by include REA depth we fuel Energy original They mill our customers the on concerns. our sake expansions in even and the Greenhouse the places areas Whale by project, in we well Enhancement been Regional Or came Jersey Southside and our brought at weren't good reducing Southside have it's the

projects that steady projects. these X a projects of sight line and projects clear new new actualizing announced point, our beat and across continuous we we high-return execution from do transmission only full commercialize to but To continue Not roster vital, footprint. of we

[indiscernible] joint we in interest We in by and also the our portfolio Aux Sable asset divested the year. discovery our venture. last also our And consolidating optimize system further interest deepwater

out natural slide, out long to call emission Moving across our sustainability drive stated compressor older that strategy project. which of We've XX continued year, designed our units, our most ] or reduction gas and old. And methane want certainly XX over remains years [ were efforts system by last units from emissions I'll NOX to we the replacing these not emissions. were synonymous with

crisp by the done work So this be latest our and in Transco again, a important some tremendous getting complex rate system. very projects included time across to very job team execution in on case the of

nearly we've note XXth growth. Looking [indiscernible] the our of natural earnings gas price XXXX's was as prices another EBITDA, average the to in saw year low $X during in that pandemic about earnings. record just that this reported that in of and per grown as Important to XXXX, context. the $X.XX nearly the We a MMBtu backdrop earnings put that of consecutive that year we which marks at averaged record adjusted was

cycles. resiliency price of of through business the underscore to a continue does really our this So number

So performance fundamentals I'm with pleased which the an the per more dive into next I'll environment 'XX of present of fruitful in but a on growth record beyond, and very the share growth here XXXX long in even and slide. track us our ahead basis

remains a a here Slide of And beyond. here. growth few and driver focus highlight notable in I'll focus key drivers industry-leading X, Our key our on 'XX on key earnings returns

day into service Bcf X.XX the placing over interstate the transmission First, per projects of totaling course are year. we

especially of will recently conservative invested case, Energy and Market in emission project system. benefit have Link such last contribution on Access, system. we from the includes things like Reliability from full the our the the Carolina maintenance completed we and large Enhancement, Transco on earnings earnings as MountainWest Uinta reduction expansion addition, over capital Transco projects a year's of few Transmission rate large Regional projects, the Also also amount note, Southside Basin the the years guidance In other the considering expectations our from

lead expansion a which including earnings significant began Shell into these January, our from 'XX America Whale increase we In in assets here the the Gulf additions commence X during to have and 'XX. service in will deepwater, projects producing of to will XXXX, and

operations price-related year. earlier, mentioned interest last to we're our these through In And as JV environment total shut our curtailment projects strategic by and place stronger the volumes doing the big the and development. Gathering 'XX. and business service in for our current and asset year. activity drive be setter, molecule guidance midstream and averaging in business, we And a second a will year XX% year, also with in acquisitions. invest existing and capture Louisiana lower and value XXX gathering, transportation lump It on so, processing, should we the earnings In anticipate will our MMBtu see we saw drilling in not in level this remaining the each of better Williams Haynesville gathering fractionation. the NGL, clear, leveraging per that through [ that a XX-month ramp-up I Energy purchased ensure Processing downstream with does significant we controlling the our 'XX upstream just price-related strip including To continuing that last maximize of the the in in project versus drove $X by upstream large of that can bolt-on come the half Gateway around long-term two assets ] in will margin

our So we driving really as large systems. to this of focus play the on off and cash developing value lots incremental asset flow for free coming midstream this us

Basin, and another integrate and acquired In gathering footprint downstream gas the DJ to we processing value to into Rimrock the adding system our assets. add NGL

the indication growing Pipeline the natural our Northwest to in for incremental continue strong quarter. are clear strategic addition needs footprint, These we asset that that fundamentals momentum. the business announced two around our I'm be positioned 'XX. remain the to gaining seems consumption Given projects a to announce three pleased we gas on the to of Northwest in additional beyond last system

that pleased we sectors that Coast capacity up LNG storage clean XX power advancing demand these the gas support our as natural are and Bcf gas I'm in will and Within usage natural expansion supply. these facility, and ramp a of Gulf generation announce total industrial, for to

there expanding out storage excited So the last facilities our really that for year. acquired we see to just support

Important have into execution refill note, direct continue Dalton our include such and attractive transmission continued this 'XX. X and not We Northwest transmission moving close we Transco in the on does And binding similar to we to and the the be are customer. lead projects fast in agreements to interstate These on interstate support future high-value at us major successfully backlog terms equipment these a moving data beyond projects, [ that XX the on are development. backlog fully supporting fully enough projects gone mature project center projects to fund, support projects near long are Pipeline the has of the our very from to expansion the executing This system. all for more currently creditworthy our announced this agreement of items large backlog with once Lateral announcing of recently as on ] along a we contain that ordering in deal growth we sales this search that will far have have project. and pace projects and details been transmission most the will investment

about on of you an relations in So that way the get handle we're very I to about project that, lot going side the government really that we really that excited for PR front would us. a tell quickly excited and project. things but with And on of is announcement out for ourselves

our our without differentiated with but So done and strategy share has the we only profitable natural continues drive sheet. delivered in from count Slide it Not EBITDA after peers, 'XX, year. here record us to balance we on gas-focused the growth same have X, year and stretching have so

over project As stands have growing projects compound we of has our is past XX out distinct growth where service footprint, been stretching in What least our or attractive seeing past projects an long-term evidenced issuing the annual us balance an the behind from continues in X these additional sheet. our quality years. at to that confidence equity on to in delivering execution, are rate here, our which projects. impressive with give driven XX% execution objective the years, peers growth by without from our asset returns Equally commercial sharp This is at X activity XX placed earnings again, most we today. by in EPS many the of the growth our the X% impressive X% large-scale

our the coal natural long-term further, to segment customer new exceed X generation. market line help reliable, that next seeing of particularly go is over gas positioned out using to west skill switching, impacts that for to as LNG industrial gas a we fast solve in of rapidly whole fast [indiscernible] looking clear gain objectives for as earnings change highly we're sets exports, following and the years and the strong demand power growth us fundamentals particularly our to have To sight

really are we current long-term attractive So supporting environment of excited macro is at our in how business. growth the

I'll it financial that, our with to John? walk through over to John And turn metrics.

John Porter

All on Thank Alan. right. you, Slide X. here Starting

at in the guidance about adjusted Let's company. assumptions in $X.XX results looking gas financial business $X.XX, about where million begin performance in $X.XX for upper our plan Henry the averaged natural or which EBITDA prices $XXX for original grew by left trend than of almost exceeded Starting EBITDA was [ XXXX. by billion, $XXX XXXX about our year XX% of million the adjusted a At lower Hub our X% ] billion XXXX. original which longer with over our corner, XXXX

guidance we'll slides, increase $X.XX the CAGR, can talk exceed midpoint. XXXX delivering of end a to as that you an to X%. growth would which And rate continues following that the high a billion drive growth see our about EBITDA in on features X% of our revised X-year long-term rate adjusted X% our here, On X% midpoint

EPS adjusted the adjusted finished of XXXX, CAGR. at XX% EPS see end range Our X-year original for an high guidance will impressive midpoint and XXXX for above our our

CAGR, funds at CAGR. available from our for for operations will X-year our X-year dividend at maintaining original dividend also grow a And X% XXXX, Our about high will of XXXX a the guidance. coverage. strong per exceeded while share X% midpoint it end grow At

close you based Some coverage XX% improvement I'll the key improvement on that our see guidance our sheet our that's leverage with what increasingly low and are over the further strength discuss has to finishing conservative of end the been tax balance leverage to target last to of to finally, assumptions, next made XXXX original leverage our on years with forecasted like cash then leverage an range XXXX we've slide. us for move the dividend favorably which looking metric, X.X Xx. to And X in of

more information lot a about XXXX We've performance got appendix. in the

cycles where As throughout we natural gas environment The outperformance tough the curtailments we substantial slide a levered that natural this Alan growth consistently volumes demonstrates pipeline were our with the through business on with to mentioned, price against year. of trends a volume business the impressed performance saw business of of the and commodity strong up capacity. various the gas reserved primarily is

has for immediately acquisitions portfolio balance gas-focused through of additional growth strong projects, time high-returning this during allowed and natural consistently issuance Our use capital bolt-on earnings our equity has accretive any sheet without strength contributions through the growth driven frame.

let's the trend XXXX. having refresh to turn of that financial guidance So performance company, of the issued covered our the February strong ahead XXXX in again year attention with we longer our once for of the a originally

have our CAGR that of can $X.X you between X%. we're incremental see increase this increase with an guidance XXXX we business and you original a guidance $XXX So a well metric you growth billion, $X.XX the over on today. from million. reductions lower split growth some year In see last more X-year JV EBITDA, see areas, of key right, have delays That seen the as the our of midpoint generally you XXXX as we the a and the In Rimrock $X.XX than X% those improvements effects elements of side, would million was dry that shifted here, in been now deepwater, we've expectations have the an areas. customer certain and offset on can $XXX moving gas the the for the original midpoint to since in guidance liquids-rich is impressive Starting consolidation updates and adjusted And to with the of in and so we left but is billion, start few drive the in seen the by that West, Crowheart unfavorably bit acquisition. saw Northeast that weather in Wale. of overall the Northeast, XXXX. Shenandoah good net January modest expected and business have marketing off impacted expectations we've our our ramp additionally, projects, in growth improved in a finally, cold some producer billion

in this X% over EBITDA drive that X-year So 'XX we guidance as X% and by encouraged are growth that our would adjusted CAGR increase well.

discussed depreciation will to AFFO corporate from per tax as alternative benefit any we $X.XX, we're assume adjusted in not the to out bonus we EBITDA. legislation for both where moving that of other tax to now year's any Shifting share, favorable expected with just restoration which the last I basically tracking $X.XX increases point changes of that being continue in minimum XXX% or are discussed possible elements XXXX. of just

Our of against tax, cash would bonus around taxes the $XXX the for would remain be of can most in cash And share. of course, to tax per owed. applied alternative be corporate XXXX kept minimum that related another amounts million and in roughly approximately half, could future of which, tax that adding cash guidance AFFO XXX% of assumes $X.XX depreciation restoration AFFO current amount regular

in we've our per discussed. would as cash acquisitions after growth further without Favorable you'll revised for our And benefits, of expected dividend this growth dividend about you'll rate of change guidance XXXX X.XXx $X.X X.XXx with that and serve the excluding slide a see our see improved further AFFO share that for covers front growth acquisitions. XXXX dividend catalyst Finishing after no tax leverage per fueling share additional guidance even the However, tax potentially AFFO share guidance up, X.X%. also, billion, at to growth. $X.XX per CapEx $X our increase on developments even the any our growing

guidance of the update. our So that covers pieces XXXX major

the the our Entry contributions ERP acquisitions. XXXX and coming an versus we'll X the strategic years. expansion our As XXXX XXXX. year's for then rate processing from Alan finally, got few major is Transco the investments as project. gathering a West, as and got including Louisiana improved projects environment transmission over Gateway returns an last projects completed bolt-on and G&P growth with additional well deepwater continued for on cash with from full last And our projects year our X for for company of initiation see We've year exciting highlighted, We've case online expectations Northeast

I one turn Slide cover like I'd it to X. topic before more Finally, Alan, here financial to on back performance over

we time years, returns about of additionally, we've investments. equity talked returns many this adjusted growth issuing axis. on in on Williams of were reduction we've see for in out And on to which CAGR and this On our growth. strong mapped we've generated placed also nearly the the The the fuel peers those of a we've and we've X our lack the from values capital the Last improvement time along the time strength over return frame. fall, highlighted balance highlighted saw returns since XX% invested of result during For on a And capital cash driven drove cash XXXX us strength the EPS which cash period no cash to XX% achieved XXXX. sell-side same we've our frame those on capital, buy-in with leverage cash in closest XX% frame, of up return the the by any share our first our research shows slide, really leverage during proof Partners then equity horizontal reduction shown charted the of issuances pleased invested to a investment vertical axis. sheet XXXX this we among per that

performance certainly XXXX. we of pleased period through saw with XXXX financial are the We this during

the even pipeline are based growth about volumes natural for accelerating the next excited drivers X we years on more capacity. However, and gas

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

Alan Armstrong

John. Okay. Well, thanks,

implementing healthy where with your are bring strategy remarks Just it projects. today a turn before clear to Williams sight full of sheet and balance to the over we a our high-return questions. long-term closing been portfolio a to we line We've few of to

the of no gas-focused years gas, demand one natural a growth from powerful shareholders. our is strategy is natural positioned benefit gas for put, early the our returns compounding these what is age fundamentals. During up way to be robust to Simply is of hold natural delivering than and in that shaping golden taking better Williams

the the strategic that seeing our and energy importance This advantage country's Trump at landscape. changes the and to aimed evolving the full bolstering independence U.S. positions energy underscores are and U.S. economic take growth. the shift Congress, under of energy Republican policy in policy initiatives administration Now of is the

realize position fully and country, be to of maintain natural nation's Marcellus However, able potential in like have our the the to a our gas some places leadership as and to Utica. we largest unlock the resources

of the reform, help stands this support administration and of potential the be Williams With a beneficiary and both it. permitting problem to to ready solve major

moment ] historical have country reaped and Pipeline's granted large-scale We its not of Power the the and see on own this and benefit ahead. to [ strategy, benefits experience is years. country for we their to team rapidly tomorrow's opportunities right This the and our out capture opportunities. citizens Williams let infrastructure countries deliver competing that America and this infrastructure build for should take an has for our important

And your questions. for up open with I'll it that,

Operator

Theresa Thank you. conduct from question first we [Operator question-and-answer Our comes line At session. of will the Instructions] this time, of Barclays. Chen the

Theresa Chen

to value out commercial capture things, us ahead to what you is help can gas-to-power finish And market side Alan, like something you can the earlier, going And this other the specifically and this participate How centers get of Williams to of have beyond across in relation to progressed? how economic take related alluded the theme? opportunity addressable it here? to data that within line? On the this discussions you lay opportunity,

Alan Armstrong

ask on take to thank to and Theresa, that, then going of I'll fill part Chad in Yes, that. the first you. I'm

that about terms lot as things of out the key land regulatory are dealt think items and very of be and just support completed, checked ahead along say, those air issues the long equipment needs what in of First, takes there. to cleared full it you permits, I counterparty and to the the announcements complexity lead major before with, the getting the gone to acquiring I and if has would However, lot as and a make all for put of you've have in we a with from going far mentioned, need sure you bases that that, siding, the and that stakeholders process

I laid an you, see. And the to of for so, a that are adequately So to I at kind we're to can need announcements. focused we projects would faster than affairs think those government making side are beating doing the the make relations its lot about the we tell to things faster normally successful fast. we've moving sure very able public making on scale talking be than we're make in we on that more of somebody punch and project the than groundwork announcement. But

that's think driving I so us today. And what's

that but terms other pipeline goes most, of speed an or is the on that impressed to thing desire they're lot of lot we the not happening on and is tell these alternatives out going the gas I projects, get and a the fastest. again, a those really front, the In of one customer, a big has work the lot though, into projects, that infrastructure is that. other you a would projects. and they're as and us we're announcement think there, expansions that's I that race areas probably move that to in particularly moving [indiscernible], But our the thing counterparts, these through honor require for

[indiscernible]. it you to turn So I'll Chad,

Chad Zamarin

that value the would intentional are very capabilities within I We've natural a Yes. in I think just well don't gas creating think chain. suite positioned. full -- really add I we been of

but projects expansion same Transco opportunities, that I Alan And a not way we just development. developing the so develop project. we as focused on are project And said, think, announcing

customers, expect those announcement I to would you developing from it -- projects. high-quality where shovel we And announcements are And what are us full we chain. the have say to to project. provide laterals is data center services take for And mentioned, be capabilities that the see and fully effectively also to generation to we when the is foot the way to go across as start pursuing so will the are what we interconnects of projects delivering that contracted we're that have but pipeline Alan on have apply us -- gas we'll to developed see point to There would power capability customers. all get be ready projects commitments value to set the and you'll

so a And that's on. contracted we've we're working been once project. And what fully for

it see would like You'll announcement, other will a pursue. any look lot an large-scale transmission we project that

Theresa Chen

gas And related seen remaining investment. the to need of your And this us you economics is something expansion footprint? has your have overall storage part chain this? do projects, value for Can a like the look capability that how like for remind across what significant clearly, do you much

Micheal Dunn

is the the some in Basin place. as expansion part. ] at done on something point we on think expansion, increase that in facility Gulf is those, XX already Yes, interruptible expansions hopefully, one that of the Coast with got storage the of is firm future this first location. investment and can out getting just to is Michael. we've earlier is within lot -- XX% where this got our the year, I we a we've at Bcf opportunity Clay that a pretty which Theresa, keen that well. those nominal in And our opportunities that done [ there. opportunities acquired West we've we're convert storage about some storage this But The

the negotiated Coast prices come on us it that what get opportunities, across these our footprint. up have certainly in on we're ] comparable expansions and the we're projects those returns where looks transmission we those seeing to certainly area now nice and exploring [indiscernible] and to especially can accomplish storage Gulf brownfield [ So

Operator

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

Praneeth Satish

staying just on opportunity. maybe meter So this the behind

can in how close Just The of project line first you on. to secondly, it I and Is Can this is? And one constraints market a finish frame scalable help I understand the the $X get help is? how up the trying us future Given large range? solution and it know out then of here. that figure can supply point turbines. billion solutions scale. to you you're running? main guess, fast up speed chain opportunity and is around this you how But selling both the to kind running

Alan Armstrong

would our a that in I meaningful this -- will [indiscernible] plan. capital say current project in not of is capital on budget our is terms and just Yes. this be impact this

terms very of the meaningful just lot project, capital, typical faster a and the would this size it fast, pretty be than of project So in come. the will capital come a will transmission

terms generation hit power to be In point been with we you're like these that able think there likely power opportunities is But pull in a there's that, equipment. I that the of spot regard. equipment. to is on what -- think we've constrained do on scalability, been that's generation We've very pleased together a likely of constraint

such buyer hit equipment. key it relationships [ in that, a is that I of and already capacity transaction. limitation got will this we've helps this market, and power is certainly helped have us we're a equipment that But that large that the ] far, regard generation have do think So on that

Chad Zamarin

to us there line is to ahead supply us. see of layer to in to But a out. of time, that I add, maybe to sight. we line chain want though, think might projects in opportunity first -- think do I don't be of market too I see I ahead will And over just first we do the lead able speed get announce. this of would we Yes. layering project But that far further do sight projects

a end of need of the I center combination think the grid also expansion support and a there's decade. data development, for ongoing meter at need of to least the likely behind solutions the through

strategy layer ongoing our projects so basis at predictable the the nearest And being would more service. to be with on projects, to be obviously continue to earliest even

Praneeth Satish

XXXX. maintained XXXX $XXX guidance, million is a was I flow $XXX free think, more that then that looks white it the despite million to you've in investments, of of $X.X And like opportunity space the excess one for set. And us surprised around CapEx thing billion, got good amount cash

what's could goes behind So XX free first. closer XXXX projects? or in approach willingness right got some it two cash maybe those think pushing potential CapEx the projects? What just the of you And your this you've front-of-meter philosophical is to then or to meter if if even in higher project 'XX through secondly, flex things your XXXX to breakeven are exceeding help flow BTM, us levels through

Alan Armstrong

of I until in is that as by all, of fully consummate yet counterparty made equipment terms capacity, on yes, that and first think returns the multiples well that. we not plenty our our be our that Well, very that project, attractive above because in are we kind that fact of very the capacity, final and of capital of are included cost agreements the I supported capital. think on seeing despite Yes. the disciplined we've But remain orders won't we'll mentioned, we're and returns the I have

to have from after against will capacity and we risk-adjusted at really return look So a certainly the opportunities. continue that, things to go we set up of our

certainly, sheet. going stretch actually So balance -- see the I we're not the to

and the are distinguishes We're of not there. a go where that the fact we going we've proud to certainly to without And us issuing in that's we today space. that equity, so And think we limitation. are gotten

out our allocation that's of limitations on survival at this. therefore, basis, there return it those end kind really the capital how a of and to So I upper and the the a of have on we front look continue fittest plan against just projects that are in we'll risk-adjusted think becomes within us,

Operator

line of of from Bank question of next Neel Our comes Mitra America. the

Indraneel Mitra

you uptick to didn't you the your and if were could wells for shut-ins and of ] but activity, I the turned [ some was I Northeast the delayed gathering line think come you in expect volumes mentioned big on. Haynesville? in give outlook that in a that wondering

are your in we're producers environment what wondering that a higher Just much indicating gas now 'XX? than in price in 'XX

Micheal Dunn

a producers are it the got Neel, Yes, we'll DUCs point the producer we that's to on firm deferred even on. Michael. discipline day IP and [ it's there come about bring of pricing today, think of that as higher customers and ] that they're a continue activity to But [ we prices those to throughout Bcf see out rig and volumes the needed where holding the at TILs, decrease those think is up still come I to between talking the -- close possibly the still they got lot I TILs. on, well, and be and we've back sustained year could still much and as are X talking some capital for deferred DUCs on about than ]. are TILs The

it. taking regard guidance we're to optimistic a emitted pragmatic so in as but well what in And pretty our is approach,

pricing than on that think quickly a start ultimately producers producers bring higher I to paid. pretty they right gas DUCs already for about the got so the activity those But help make at justify rate drilling a we're And very prices to the connections you've optimistic were ability will decision year. the And where virtually now, should last are.

So they quickly market to if do can they're to pretty get ready so.

Indraneel Mitra

power in constraint? what because ask understand of but so generation the versus competitors. case opportunities, can you chain dead not gives system ordered you're to high Is Transco as advantage some your the on have beat scale for the be how many supply used rate given kind that essentially chain those just horse horsepower trying I'm in to to kind that's wanted upgraded to and the being it of generation compressors And of to turbines. ahead supply turbines, able power a main that you and competitive a

Alan Armstrong

Yes.

large the for systems our same power used same there. that right cycle You it turbines. got simple are used are on The that for are generation compressor drivers drivers

so to are getting the utilized and turbines on side on same it equipment side project. the cycle you're talking be are market, that to be or driver the going the the And power when is going ones to simple speed

So yes, have a that in is we -- that [indiscernible]. purchasing of amount puts position us given advantaged that very power on the

Operator

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

Jeremy Tonet

the state? really with supply, to recent opportunities you land that Just come in footprint, your It Wyoming compelling could or in those GMP, I guess, now seems do there. be and the these be offering have pipes, Texas different data look a solutions across curious, or possible opportunity center any wanted it acquisitions, how Pennsylvania think set like about marketing, to gas was just back in servicing you Wyoming, I

the to about opportunities location what So just you look think from how wondering like location.

Alan Armstrong

and we Yes, some set for the are particularly Jeremy, that attractive to areas to hyperscalers right. very of looking in do attributes that have bring you features those table We some opportunities. are new for up

so time. do we'll over kind as continue opportunities out think, of I those build And see of a Chad do mentioned, we that to think series

you right. so are And

lot it time does seeing but bring areas, you a to of up a lot we're it campus lot whole fruition well area, of those we positioned activity, in and a takes are to I new a extremely setting will. -- think of if

there. So as provide friendly as been great and really -- development of development the well places for that Lake about positioned but a the working a has area seeing state we're is well hard us, we're like environment out We're there some for excited there well. out extremely to market out a as Salt

seeing and people the gas to the where are in you certainly be projects, the energy the politics trying at and out both losers are with pretty you're particularly areas start hyperscale that the going and and the you that's back resources this. up tell some there, is Wyoming, on to constrained. the seeing base to keep that not going for be are to you are I'd to the big like winners the So look area critical And have where resources grids state the of well certainly able wind as drive as to

but kind projects big because and long-term So I process in -- least, develop. to are of think those at chapter that's X a, this

areas, on of that So chapter I be spread. X those some will kind in this think of

Jeremy Tonet

Pennsylvania into to want bit if little more we just dive could. a And

relative see built. new just hard side, as see get state, at gas we electric the transmission constraints transmission, not on that like electric we as far As pipes interstate to transmission there's constraints the the on we it's same to given can look side, if in natural it seems gas the

ample there so seems the supply and it rent there. of Williams gas is wider electricity gas lower spark could like take And your prices state if potentially the economic could possibly a out spread and the it's position there, prices higher given tough at advantage of get be wider to

Just wondering share? could any if there's thoughts you

Alan Armstrong

take want do to Chad, you that?

Chad Zamarin

date. just maybe most more is the Yes, projects gas I activity competitive think that way to of demand Alan's been what comments power for also share than is offer related for data around think prior we're power even I'd footprint. to centers. mature markets we seeing the increased and Virginia, Pennsylvania, Ohio, our natural along the I will think a can we potentially grid solution about do it kind

for of a we are think, cost cost seeing that public, so I the and also challenges social the reliability the of grid, just There's opportunity even think obviously yes, desire And and -- some of expansion not and [ its market. speed ] the but concerns to consumer. with there's around

better emissions it in I those Pennsylvania, presents so both core footprint many not our is solution cases, loads a but cost-effective, that in certainly just a And great low think opportunity great provide new to in directly of and, these areas capacity. a to solution than very

just part the certainly centers, of for that's not but across we're that the So footprint. whole data theme pursuing

Operator

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

Manav Gupta

could top Help the guidance the by towards end very You was of X%, guidance XXXX? us understand what which raised you for push positive. that

John Porter

of we've do for what of range pretty And that to the see have Yes, question. processing think would exactly a a thanks do Manav, gathering and we with Yes, wide the of there. areas, I this fairly some in got versus morning some pulled original for lot of that significantly our gathering gas about levels in our remaining some overall and example. processing are pretty dry guidance. growth back in discussed areas. We areas conservative the we We've actually

producer we processing these room of always there's and definitely some customers could in gathering that the so areas. And see outperformance around

all to predict. we little know, Sequent, but potential get for we a on to Maybe outcome hard a range here one is of start with year a pretty wide still have January. touch the bit as did to just strong we a of Sequent, that,

like million confident was pretty we're million. we So so but would get we in unclear to $XXX level really saw this or a we'll $XXX 'XX, whether for which still year, beat back Sequent

Sequent. some around So see potential that you could range of outcomes

Early talked number projects we mean of potential of that a do as have this service in And the number mentioned represents a in upside I dates have project our we Continuing projects case. to coming our on, been I we earlier, base service about for year. always online.

of I that fairly which say, We not change put too. can. if did Transco we February guidance. a our the to to rate would assumption this out embedded have guidance relative last assumption case, settle hope also year conservative got, We we've original the year, that we we in And in

guidance. of number together, come really, could combination a them a more So of that one could each of factors end different us those drive towards things that the or high of

Manav Gupta

more gas just there? opportunities XX, up the are [ bit they knock switching Slide to I'll can quickly ] coal out progressing see follow as a you little about and how

John Porter

that was XX, Slide Manav?

Manav Gupta

opportunities, potentially Bcf X.X for coal-to-gas ample growth. gas Yes, switching

Alan Armstrong

conversions plant we've -- there. like the very I'd our in just regard the is tell This area plant, some from has in of MountainWest off out the a the taken we're lot where seen which footprint, that region in Sure. and gas within has what from plants that large really seeing big switch out are to coal kind you, Bridger there showing Naughton the we've been coal Wyoming of Jim area

a and the So for seeing time. lot out make been we Obviously, those big are that some really the of of operators there in Mid-Atlantic commitments. plant starting see to kind we've the Southeast

we a on plant to -- Our in a that project Alabama is repowering Alabama have specifically Power coal. focused

there out lot really our of can interest from not these projects, on So those in the big of capture right converting as plants. see, out some a strong lot those as West, for proximity a those big it's particularly stretch we systems and out we are player you speak. seeing And projects a are us to to we're capturing power there,

in continues well. Lateral in a opportunity this that markets, last of Georgia we as the well to power drumbeat of a coal an is partially these as area in us generation that lot Dalton conversion So expansion quarter expansion as of be Northern a kind announced project there for of

opportunity. on drumbeat are seeing steady this pretty we a So

Operator

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

Jack Wilson

on Wilson see beyond headroom like XXXX. capacity Jack XXX for Do the ] Can double-click in reaching the on got you of Looks you've by about maybe market? you're [ additional that that in you Or on that? additional is Neal. momentum This is seeing saturation coming Northwest. just kind

Alan Armstrong

for we've for the I where would I months, say been faster But really we've No, been surprised our has there in than Yes. demand out request review and faster of expect been seen with capacity based X than you this that this the tell kind recently, would has the to -- just continued amount seen surprised we've monthly area I to. last we've meetings, all expansions is here this would in X going of grow that commercial what Jack, some absolutely I to to even it service gone on think expected we've recently.

going lots pretty So out here exciting. and on

Jack Wilson

that is the Good. nonfactor? opportunity connector It there. to continued Huntington like a sounds cross-border sort be then any there up of up going in of And there? impact is Or kind

Micheal Dunn

that's a Yes, nonfactor. Jack,

Operator

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

John Mackay

center kind guys talking conversation growth to potential walk projects? X% that. you were to just now? frame or stands that through about us upside these target maybe you FID Can of at revising data potentially X% up Is where some dependent that. of that up long-term year, on least Maybe the of pointing just Last formal to of

Alan Armstrong

And lot I say in Northwest. just of as I the Yes, that. would growth a mentioned,

of this the seeing gas I turn the side One the either growth the these things many the finalizing. consummate to in or while power the if project of utilities beyond certainly, that it opportunity that we're feel growth the direct data serve isolate we're to market X%, expansions. And think lot of on And a we wants those misses of actual this pretty because big projects the just drive X% that confident I lot is. so on that serve we're everybody able at on what to a to will point side centers is these

by that's we're answer tell center to but a the generation a Northwest, the which just ultimately, power the you growth, yes, serve of go the driven lot the is of would to being part demand, like indirectly question that lot of going data seeing will that loads. I So in is to

of So seeing gas way turn, individual hyper while utilities, show -- the in announcements, everybody on from kind driving transformation focused our that in is our impact up of in IRPs, our project the growth we're which the on is, demand of that system.

the To the not cold super -- and excited people more this business, not I XX% I projects. projects. I'd to by If the on that more the analyst year of driven about previous data are heating individual weather be that be driver kind over I actually for know we days, so Transco me, the being an center is this, the paying was than peak continuing our seeing degree I'd So snap. hit to paying days attention driven about excited and peak day these were growth that in by saw to of fundamental that demand more growth be are attention seeing January

John Mackay

Can following side Just second remind the me. you the on of general buy-in, plan long-term JV there? just is the kind what's us for E&P a one what just the strategy

Alan Armstrong

fractionate we we Alan said we through think move powerful I that the Look, on is about Chad. Wamsutter through [ that our our driving value the NGL infrastructure, from and we've gather, how to is we basin. process, NGLs infrastructure, This we NGLs gas, NGLs, John. market ] Thanks, talked basin Yes. respect midstream with the the

production if our from upstream our when of business. did help And it the great And maximizing driving optimization. core a way about as infrastructure. that from basin from position at basin only for perspective. thankful look all so that an develop perspective, it they us for think the same a what you would what And an to and Crowheart about you and you we with might is perspective. downstream the had It's you consolidate partner value But that's not really high to margin very value strategy upstream

can the value infrastructure. all was downstream that development of sure upstream consolidation from decisions making our an maximize the about very drive so best And the we perspective to

that with the we've sure program basin it so we'll chain. we've economics the now of making optimal And takes bit a on into that infrastructure. And time. full midstream now And take value account got work development of that consolidated our will

as leg Haynesville. great partnership by business. step our we And us we for kind And helped in the much downstream at That's for owner value expansions Clearly, was an a down achieved basin has we original is counterpart. of to that assets. not the will reposition sure dial expansion that then think there designed point, the and of ownership partner But optimal upstream GeoSouthern our gathering need been we're project said that, to additional We've that in that. on long-term support midstream focus our a add project. then core system one and more working expansion that have infrastructure that to in. be the before, the drive Haynesville, can determine whether we still we've the development And or gets or pretty on with we'll making our I value Haynesville for help our drive upstream asset

Haynesville expect And of to so that's And position something I to hopefully the that disposition we're And good towards asset. accomplish think point, a we this we're year. would actively move further at working in on now.

Operator

question next line from Stanley Our of comes Keith of Research. Wolfe the

Keith Stanley

because growth that M&A. there's not do have and asked new you projects pretty 'XX, expect balance major I of wanted X% up XXXX do you or time capacity lot wanted be more but to to if linear to target. And follow over I sheet Do EBITDA of to up on a long-term lumpy? the in X% lot you starting a

you're how just thinking So about that?

Chad Zamarin

growth demand. say all Obviously, powerful lot some [indiscernible] a up of driving a It in project, without certainly is Yes. other be is including we will think the drive seen we going to gas we ultimately capital. keep don't the of but which EBITDA driver, drivers our of within include with big what our pretty to can What a growth. 'XX would on have gathering on I increases be have would growth the system, projects on pull systems substantial that you've

is see a to the So balance assets. the pulling are and to side the positioned going of generate way well on free those really cash without demand to pretty not and these market powerful be there's extremely going gathering some flow big we're and the to systems, see growth off we

tell comes see that excited think lot always would I that. positioned without we're about you, a I we're capital, actually, growth and to most So of

Keith Stanley

follow-up other on cash taxes. just One the

year, $XXX ] be in you much bonus you're pretty for eliminated. depreciation with So million I think [ this extension, that would said baking

you give with being an on Just -- legislation? can taxpayer, a update path to without full cash and bonus both depreciation

John Porter

AFFO current clarify, cut it's depreciation bonus Yes. Actually, restoration in just would guidance half. million in for to $XXX of so that XXX% the XXXX.

that $X.XX about so be And of per AFFO would share.

especially pretty there's energy-related some What of would review minimum should under would look that whether for which we left that a be effect. So tax, alternative that. sort is corporate be take firms be another and maybe significant we been also proposals doing at

it it makes of things is definitely that would through, but right it to that speculative -- that of is that All any now. are discussed be assume being

So until payer. more we our of cash years this gradual long-range where a assumed lot tax year What just tax start is terms It's plan, future. rate toward pretty become in a conservative. the we've in in do cash we to believe ramp the kind of to the full of I our latter in get of a which decade take

I that would affecting things a trajectory. be of lot that, that think there's

of depreciation, If looking when we're you of nonregulated fall bus you the would under be that things get it like could capital solutions, investment that think bonus this XXX% impactful the cycle projects at behind-the-meter about in depreciation. some really CapEx

capital bonus get which taxes, be both maintaining of being and accelerated And seem of in assumptions. ability for changes, a could but I cycle change with a good So pretty the being the not depreciation our we're investments, to strong the But with bonus -- coverage see then accounting we plans we plan. also that We're again, conservative. defer dividend think, like really depreciation. assuming that conservative long-range strong

Operator

question comes of the Bingham next Scotiabank. Brandon line from Our of

Brandon Bingham

was the projects I in could some provide ones. backlog. the quick or of incremental wondering maybe XX couple so about detail you a if Just

XX then level? into Just could a outlook or have you thinking probability if -- at of like and speak on composition And that maybe sizes of things -- weighted thoughts those if in-service like risk a come fruition? and projects that project some high you likelihood any the Just of have you to? dates outlook

Alan Armstrong

to take John, do you that? want

John Porter

our this its think, many steady for our Yes. what been cover back over guidance. The XX frame, just progress in I now seen project, -- projects Transco we've that we've a time the moving and And look at through providing backlog kind of into years. backlog a

So pretty consistent of over with I the customer of We had you've what range cover facilities. in they that say we've here terms seen many think potential LNG a years. performance do bases, broad the industrial and it's that power last do

Michael, Importantly, seen going in consistent actual not our sales include meter to lose into funnel we're is know, the to behind solutions. But this progress I what some you've some to the number these, type record anything add? from guidance. XX of win then But a our track for does don't of these moving very we're a substantial going these. of direct the and

Micheal Dunn

these well. have it right. ] probability on of as No, think I one [ them Every waiting got you've

So with these probability waiting industry them. a are identified we've to we're them of every customers, for all and specific, separate and commercialize have discrete then projects working that one

Brandon Bingham

how more production through, was I compares slides the looking it XXXX? here you outlook And the XXXX. you're in seeing I maybe what to if -- And schedules could that that or to baked you then we just Haynesville, get to towards if around of wondering just it saw drivers some into go detail show you the and activity growth real whatever provide some broader think, expected could outlook quick, behind just exiting back kind growth

Chad Zamarin

all, growth, of think fundamentally, demand. got about supply I you when Yes, I'd first to say match long-term we've mean,

by ramp growth at amount even when end than the Bcf the XX-plus next gonna more seeing through mid-XXXXs, the and adding you so already end see, decade. the over through of from we're look And we're decade doubling the of LNG the the decade of

in got You've increase and the demand. load power

to I we've to growth we've for coming derived supply you to a run expectations And that term, think from, order industry, You've and X ongoing Bcf the of are growth out in going over need even got next signals Michael little bit a growth not the meet and forecast. supply the about, of demand, But But in growth. what on beat and the it, a Haynesville longer-term the years. these see might demand. generally, if the consistent to far a really pretty think it's that Haynesville. see day I have return the forecast to demand, spoken out is where balancing And across call the going significant XX going the talked seen you're the own then, increase bring I you're of the forecasts, of that's the ramp-up have we're call necessarily of as near significant curtailments Haynesville. in here to just need a in think a industrial And price around need Northeast the to to to our as forecasts growth showing solving just demand to certainly activity going we you're for Permian, generally out of

really And so come where that that's supply forecast from.

Operator

Our next of comes question from [indiscernible]. the line

Unknown Analyst

years is a I MOU couple Sempra? you with an LNG of opportunity back thoughts thoughts question, opportunities -- and offtake First mean, looking the but huge still about center partnership obviously, like had data about at with

Chad Zamarin

Yes. This is Chad.

at mentioned of those do, inventory Hopefully, look attractive seeing to Alan and here got continue you're opportunities. we a that returns. great investment what that We really is opportunities we've

seeing the opportunities. returns on in anything core LNG with attractive focused LNG sure making we've we're across on so supplying we're the been compete will our do Clearly, very And business. we space focused

Gilles deliver footprint. Our [ at additional it to existing gas will or that expand [ to whether late into makes ]. And also serve look that we not gathering system we at and but ones are look the seeing to sense continue online project within further a might do that with very remain opportunities we fit want the perspective, business position to offtake we LNG take profile terminals we coming ] the the projects both downstream in continue but to across from we're we ensuring of the to disciplined or the whatever on but compete would attractive us a for an grow how deliveries also

within has attractive strategy opportunities well our compete still the fairway but across the it's it of So with to seeing the we're footprint.

Unknown Analyst

I spare infrastructure about or that the your envision that EBITDA contracted directly that for investing kind the Am of the That I of attractive -- a second enterprise of opportunity and fuel avoiding you're I'm has long digits kind capacity entire area. that core of all-in X into be or behind-the-meter may constantly all or when EBITDA services challenges poll thinking investment center supply better, to returns deleveraging, gas excess all talked right? about But We've the the return point other long-term be may the question. related my kinda to half levered. time kind I for maybe of mid-single about opportunity, Xx the as across thinking about better. Xx think still data on in And segues at in

Alan Armstrong

of the that Yes, that's on center say, from a just very that's available facilities. typical is very we data degree to we be high on load the opportunity one going the facility utilize, if different the thing capacity about would expected Craig, reliability obviously, can I merchant have where that's dependent these power is

And meter. in so is going serving be the behind key to availability capacity the

your so cases, drive it's area other expansions, wouldn't in an those those where of lower constrained, point, we lower projects. areas we'll in And it opportunities. cost have would to we that's certainly low kind complementing see very where multiple projects those see And

location what to moving these going dependent there's kind and is less is projects, pipeline call see but probably where it's location So your on point to capacity the pace that exactly it be at the coordination. on, I would they to where of the existing spot of getting chapter these highly a on are one such near

of attention X, seeing resources. level ] Chapter think I we're another [ on where available

on dependent spot So is. anyway, but your be highly is it point going is the project where on, to

Operator

Armstrong concludes closing of remarks. over portion to now call. it turn the Thank back will Q&A for you. the Alan I This

Alan Armstrong

all cases, to in team that enjoying you lot a execution very very gas thank that been. even excited very low have our and see better the of about great than the we've the the and Well, given us driving prices Excited super improvements continuing that, are particularly performance that 'XX, high returns for continued we're on initial Okay. expectations much. backdrop delivered about of and been what in projects

the team deliver to and enviable execution we're very our benefits the great So by position that strategy excited to of a in shareholders. us our has that

for you joining us. So thank

Operator

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

may disconnect. now You

The Williams Companies, Inc. (WMB) 13 Feb 252024 Q4 Earnings call transcript