The Williams Companies, Inc. (WMB) 4 May 232023 Q1 Earnings call transcript

Good day, everyone and welcome to the Williams First Quarter 2023 Earnings Conference Call. Today’s conference is being recorded. At this time, for opening remarks and introductions, I would like to turn the call over to Mr. Danilo Juvane, Vice President of Investor Relations and ESG. Please go ahead.

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

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

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

Thanks, today. joining Danilo all thank and for us you

deliver for so strategy EBITDA, last a the past year of – no gas-focused And for exception XX% was remind continues natural basis, first exception me Our an our predictable you year let no on to us up past comp. this compared growth to was nearly XX% was with this and sorry, quarter steady as tough quarter that were up annual well a growth record quarter when ‘XX. big a we on year really adjusted

and growth accomplishments in will quarter don’t performance the please the metrics the operational this beyond. serve through first quarter the resiliency in miss importance records that key key and in our financial beyond of past our well, obvious stats as We financial ‘XX saw once in all price performance But to produce strong swings. new in again commodity this across headlines, businesses’ set demonstrating

of out that continue years So here few been year-over-year these by drive of Slide EBITDA accomplishments a over to what will XX now consistent growth. on let X has highlighting start me

services of ahead Transmission U.S. Natural closed the well Storage enhances our position to acquisition Rockies First, in and the business, our markets. of the expands expectations. MountainWest key acquisition Western our Gas This we and

with and expansion are this in in closed MountainWest of that to happy are seeing forma, our be Williams several in were within positioned Williams The really been We since pro how not asset is has integration we February. already And opportunities fact, platform. progressing the we The best optimized proving

Energy on Our includes key Connector This are project, Energy other timing deliverables fee-based several Gateway Regional Southeast Energy team our fixed accelerated also project. projects supported for the Transco’s by Access long-term Louisiana all that Transco’s and contracts.

is Access to expect construction service this FERC into on in execution fact, the the schedule Gateway. year. the Regional bring of quick in of capacity by regional fourth half quarter and approximately swing energy project full both Energy access action this Energy teams, of and we And our now a In actually and ahead as Louisiana result now of

be that time growing in winter So, heating the the just Northeast demand region will of in ahead season. to meet

on a producers will gathering returns market of course project course, to incremental like Pennsylvania Of is that. on which systems, for our provide this also new the Northeast

also We the production facilitate Chevron agreements and executed Haynesville gas to deepwater of key with natural several Mexico. Gulf growth the in

of to This a working a dedication Williams connect Louisiana to resources long-term recently of Trace together gained domestic large agreements, system a gathering commitment export prolific LNG is As great project. Gateway our those to Energy Chevron expanding acquired part we and our and markets. on capacity example

system in area made supplies our new of in South was contracted placed gathering significant gathering this quarter. large-scale increased fully the from build-out expansion The and by on gathering cubic on million into progress per Northeast Marcellus in We also expansion capacity day XXX also our PA. gas Appalachia and Southwest capacity service feet this Susquehanna several our County rich

we also Gulf XXX Haynesville the Tower Spring cubic flow the second the expansion. day across our this as phase And of of of capacity first Mexico added Devils Ridge platform. in of expansion part our deepwater project feet We saw million per quarter for Taggart

significant the Importantly, over X come Gulf projects that ultimately will is and online first expansion this of are to double contributions. five earnings years next expected our Mexico of that the

business we Finally, of of to it. visibility transmission have I our the strength a financial we quarter exclude volumes one base produced a perspective, is From good fact, in moving will the number from the business of and forward and in our the moment. record add more but results this is that first capacity in about on side across in in areas on record NGL our underperforming transmission acquisitions. was processing we are contributions area growth our contracted projects as backlog our and gathering margins, as reflected assets all solid after seen a even The

base this we balance business, underscoring benefit acquisition the optimized the assets delivered our strategy. was that in competencies commercial and our Importantly, has for fully the quarter a improved of in Sequent gas saw which natural Sequent

from trends business takeaway in volumes sales for our big uniquely markets more outperformed Sequent we the and customers of to to and producing as well helped higher significantly as record the example, that Ohio. our and broader provided processing benefited Gulf for Northeast, commercialize the So margins. transmission as we pipes our on in the segment, firm in gathering In Mexico Marcellus in realized back area variance now short-term production Sequent

of quarter. this negative significant issue a margins on high for actually gas Opal. really abnormally the legacy West, and the NGL were our have the In prices Normally, as everything negative Williams would up Opal at business natural due shown to processing throughout west

to a offset able in more spreads the this West large capitalize NGL these volatility gas basis the was and on turning than net Sequent Williams. natural for However, margins negative positive into

and resilience capital predictable reliable to earnings we stand continues business, continued cash note continue to excess these I’d as ready undervalue strength the and flows our utilize our did during to we quarter. as growth. the program to as us up also acquisitions and that market repurchase of first strategy and Sequent proving deliver with this our underappreciate expected Our setting transactions fund that allocation for E&P is

So in has that and us for set overall, a growth ‘XX up quarter beyond. great

And with the through walk that, for the financial metrics John? quarter. us John will

Thanks, of performance, a our X year-over-year Alan. with EBITDA, Starting here with summary increase. saw financial on year-over-year adjusted beginning Slide XX% we a

processing a included weather businesses. Wyoming processing performance winter As impacts Those large-scale from which next on a upstream processing impacts contracted on price. growth gathering much million to perfect including and lower slide, Southwest included both well business, gas margins from transmission the and our included over and we natural also which as But of and as records Sequent gas severe dramatically Wyoming our adjusted our transmission will see January for $XXX our gas strong from EBITDA growth both and our gathering new it core of volumes surge businesses, Wyoming gas marketing shrink in overcame hits were storm replacement gathering capacity.

that XX% very year-over-year. than continuing over Our at adjusted had many quarter, X.X% have adjusted the for was on the see increased a we strong in even last growth from prior coverage over strong XX% based growth EBITDA EPS dividend our Also, grew dividend years. was you better EPS the on year. operations, funds a the X.XXx AFFO AFFO Available

and and even now continues X.XXx repurchasing reaching Our acquisitions after X.XXx. And balance trade, that’s $XX NorTex the sheet adjusted versus strengthen shares last to of MountainWest million closing projects, quarter to EBITDA last with Regional our on Gateway. see Energy of increase since year’s year. primarily progress also first some an we including you On making reflecting growth key growth CapEx, over and last the Energy Access Louisiana year are debt

before our to guidance. to So the consolidated change to our next quarter, XXXX financial a we the No EBITDA of into consolidated other to little for performance EBITDA our any updates slide and deeper adjusted dig financial $X.X results provide billion adjusted guidance few our or $X.X will we billion metrics. of move a

the our into see transmission core level. and year, gathering businesses some further from first should and growth processing quarter the additional Looking

of a the quarter from the finish transmission the the margin sequential we should we rest from our full which though, of see Pipeline the Mexico, from some a higher will for of that year level, first and million of challenges of the the from some year in further from some not some modest we In in a which a from level, additional the on Northeast ramp was towards up smaller through Gulf in Northeast, end through expecting to prior on improvements $XXX first strong primarily increases we remainder Overall year. are year For are expecting counting level, of other systems. of increase year. saw the the first modest quarter EBITDA especially will first discuss allow lot quarter million the slide. liquids-rich the MountainWest West, growth are this the we improvement quarter we reflecting quarter, over next the In the XX% the $XXX

business, drilling For guidance, Wyoming guidance winter upstream overall plans. impacted we With extremely operation our tough our EBITDA of the rely difficult the had midpoint doesn’t producing importantly, with additional venture our strong hitting the marketing to and this EBITDA to point. to respect any joint a been it’s start volume the weather Sequent start XXXX. significantly on that a have at from And

at we clear, least we of adjusted towards million lower for are $XXX So range to be guidance see at half range. to likely the midpoint focused million consolidated of trending on guidance $X.X $XXX still the business EBITDA, hitting billion. this the But our our

into early $XXX our increasing access reflect XXXX to which really acceleration our bring in-service Regional year, largest hitting is on the to Energy impact of partial partial a the and we are for upside million huge our CapEx We midpoint just growth later regional have for service this Access, guidance energy our of project, won’t to EBITDA. by hope Transco

billion our our a XX% over at year. strong that the $X slide to to Walking to little other the segment, first quarter start year. prior $X.XXX with year’s billion, the for are operations only over in So, which this turn closer venture included start look joint and the results. quarter from we growth upstream were year first now with year’s next expectations record our last the $X.XXX million a matched take Again, last let’s very up

Our production quarter of Haynesville upstream last first $XX little in really EBITDA there about million the up very was as year. was

saw in by increase However, this the the primarily Haynesville Wyoming year. weather lower to winter we Wamsutter historically was difficult results offset due

volumes impact Wamsutter we assets processing estimate what we our during flowed about And gathering normally well. first of course X.Xx through were quarter expect. the as weather-impacted fact, overall probably In to and that

million our a business partial quarter due on now $XX from Shifting Gulf of Mexico full core February business which improved X% acquisition, the or primarily from transmission NorTex to in the and acquisition. closed MountainWest Pipeline from contribution performance, the our XX

our million $XX increase revenue Our Northeast service Gathering in in $XX a increase per X%. areas, well liquids-rich and where volume growth than And total X% to revenue. you under our Processing business appendix, or tend a This of in by slide overall very higher the by unit we fueled in with X% focused that areas. the in increase our performed was just dry gas will compares to XX% Northeast million increase have basin find growth volumes margins the driven

results increased economics was the our the January gas planned. million million weather the West of at was now severe Shifting West, or about Opal unfavorably largely processing of January phenomenon. was impacted worse West Trace this year $XX quarter Overall, processing plants. and Wyoming a processing and and that in, but than we the weather $XX X% winter impact was much benefiting by short had than to significantly although XX%, hedge All which the acquisition, from last our full Wyoming plan, a lower were the positive margins

and driven or benefited Sequent write-down cost the transportation million market fourth $XXX storage marketing across and economics transportation saw a we regions this Day, the that increase lower gas see to our review. our in around year Ultimately, margins point the from end by million due strong discussed quarter we at for storage strong Analyst the $XXX start the you did all margins was business positive year positions. business. the our then gas to NGL to in And And marketing we for that and

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

back I will it with Alan. that, to And turn

John. thanks, Well, Great.

And few so, your it closing before turn to over now questions. remarks we a just

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

gas-centric large-scale natural value-driving our our assets the are the and most nature to We our today platform long-haul company of best-in-class from around Sequent business formidable unique. midstream pipes and integrated is gathering our

our even to current going as substantial record long-term in to amongst gas cycles now natural growth a a growing growth is the to strategy low drive to recent and a strong show more there unique over environment, well. number demand growth visibility of. build, is gas will from key for growth both large Xx economic reason sector. have. and market to a in future. and today’s renewables us continuing signals that growth stuck well what within as U.S. approaching more through out we the and coming EPS security allowed we S&P build our for growth gas-focused energy resilience, and energy coverage world dividend, XXX is emissions need strategy the with XX%, balance of but demand the unique have continue of and as of low deliver projected prices deliver price, of the X-year long XX-year combination demand is low proven CAGR the electrification Our I on of that This sheet adjusted the to as of produce will that will our a Natural is exactly is it actually to high long-term natural the as meeting add infrastructure track in continues is combination and as the EBITDA significant the commodity high

and bearing bills, of and abundant most on low seeing access these solution is and positioned dependent consumers we other Natural form utility when appropriate meeting it and are the gas cost is United our infrastructure blackouts and in is the where of needed But complex the unnecessary having today to actions gas the the inflation. move than producing the States energy impacts of to natural our climate of feeling our and reserves for high better time, infrastructure front. reliable is while country energy any on this challenge affordable the energy-driven and brunt with inadequate goals

And continue have available, Enabling that leadership is solutions keep security. this emission days competitiveness. we that and to the in delivery ensure reductions, is our a and of greenhouse months energy unobstructed reduction gas we natural solution global readily will news that grow and is foundational for the proudly energy Williams efforts policy and energy gas to to emission strongly ahead. on affordable our nation’s at cost reform good The support a actionable efficient, nation’s U.S.’ solution advocate will permitting energy of build-out infrastructure our

I that, your it with for will So questions. open up

the [Operator first Instructions] Your of question comes from line Brian Reynolds from UBS.

open. is Your line

and given EBITDA on if I the NorTex Hi, on curious an know the segment of annualized And provide hit good the segment, base remarks appreciate the with marketing. everyone. showcased guidance MountainWest? strong John, in Thanks. without morning results clearly the to is really you while guys was view marketing said able a updated your prepared volatile. could for perhaps quarter. That maybe being an the run-rate I for color recent just acquisitions business marketing the

in doing on model. point. that talked are that million take long-term up a great though We XX or Brian. on capitalize volatility, $XX that say gas about certainly Sequent this using run coming since would ago, X also not ability million ago ready have but seen back I have rate at the really months low-risk we we before $XX bought Sequent has that up to business about price we to to a Thanks, years Yes. natural

they especially been a gas as what nature, positions. last able to we in the they have the has that Some high do historically natural again, summer months big these fourth would and year as And been that saw through well are storage of price they just the short-term also quarter. more positions utilize we the in volatility, have reason emphasize especially

million that So like those run-rate. to $XX are to reasons a stick we long-term $XX would couple of with million the

Sequent unfavorable additional as guidance. really processing this I EBITDA the saw our to However, also in our any gathering Upstream mentioned, we margins quarter forecast – first we my of Sequent and in as and from Wamsutter that the not make we midpoint our did some other I that how EBITDA. the saw forecast And need gas the commentary, the do results to of show in in counter I mentioned things year results favorable able show was the processing and current does

all nat Maybe gas Great. nat Thanks. highlighted a in follow-up Appreciate that. just low on a the base that continue gas has I growth Williams can macro, show environment. business to

impact perhaps supporting was low XX headwinds sides for coin. to timeframe? G&P transmission could of side you And XXXX of plus prices I if next, the over near-term, of how Thanks. gas projects X then gas the discuss wondering could nat One, two next demand are low the in kind the of volumetric it, how on increased kind nat business second, that prices So some months? call

Yes. Thanks, Brian. Alan. This is

all, I of on of generation X previous April was and generation First day Bcf already are day about for a XX already, power a Bcf came on April seeing think what power a we up out ‘XX. load numbers

So pretty the on the like stay price full gas summer think will prices through are, in the on if that some continue I to space. generation on we seeing And see side. they will power think we good we are based low continue pool already natural I

be important thing good because a for obviously, the demand for that’s So just us. us capacity will

we’re the are and produce attention I big well, think close on out of to terms people to that paying G&P pretty that. through our the business, that. in – producers impact seeing think of we’re I certainly on Many hedged continuing

of well. producers the been expecting have – be expect this across be lower-cost not fortunate we’re pretty but to basins space, managing growth some certainly clear, on that don’t with average and the we’re in So to pretty

rich condensate gas we’re exposed areas continued we’re and of the that growth to pretty is the area in well the as Utica areas some so to the and seeing the areas, and of Marcellus in fortunate be really One well. that

market say, have different that our team, a we the other the wide our so value and top basins it’s our and such demand over pool this out always, across would of will team volumes to variety to ours I just is is moving gas, Sequent So in there really places as reflect on natural and go the our a gas many quarter for that see in to will obviously, of exposure of whatever like our excited provide preferentially gathering strategy Marcellus for gas because customers been the Sequent basin.

And team and we’re that ability so certainly, to our Sequent their area that. shown has see in excited

just Bcf I So say say the we’re situation. see almost certainly I’d XX%. on X quarter in of oversupply XX% Supply side, would an first quarter – of first macro versus it grew

supply summer grow I prices. response a power do saw already we already obviously lower is than that and will generation in as means here – continuing think demand as So we to April. a certainly side this pretty seeing But see we’re faster big lot from

Great. it Appreciate all the Thanks. color. I there. will leave

Your question JP Tonet line Morgan. from comes next Jeremy from of the

is open. line Your

morning. good Hi,

morning, Good Jeremy.

to gas if wanted could. I to and switch Just of LNG, exports, kind natural

strategy wondering this point. wellhead to at your Just export

So could there. be HOA for over is you the expand guess, how your time? Sempra that big bit and And just dynamic? vision a wondering what if could I that

is This Chad Jeremy. Thanks, Yes. Zamarin.

strategy HOA we highly water team of to I’ll But evaluating think following of very update. advance We start number the we’ve year. competing our wellhead also continue engage Analyst saying announced and to last Day the with the have continued Sempra And mean Sempra a customers LNG access prices you really we I referenced HOA. as so non-binding strong been time by our a since and our in we’re to opportunities We’ve producers at access U.S. spending international buyers international and lot seeing both they buyers, well with to buy LNG wanting prices. been LNG producers can supplies as producer from international domestic of wanting international positive interest well. as with Sempra

And think solution. so we we a provide unique

price add it will of that natural the as exposure ability margins gas to and finalize our for producers definitive international in to We buyers. LNG an extension Williams LNG but while confidence our around way we fixed value haven’t a continue shifting provide build chain to agreement for yet,

here we a alternative arrangement that strides. continue like say we’d just up Sempra the strategy. We we’re to really finalize or And feel making prove with expect and would definitive with LNG an feel XXXX. I to so the in partner positive sometime I And near-term great good think

That’s and shift this kind Thanks. of helpful the to it. just REA partial Got to there. I winter. in And service wanted

Just I growth wondering not kind Maybe timing see it’s EBITDA to any you unlock that there? G&P, does that of there? also Northeast how a think how you XX% there? timing with much want but on the might online contribution, really, about of and the associated you unlocking producers Northeast capacity and in just GMP EBITDA when wondering do comes incremental much REA with be think uplift production could Or see thoughts

that fully Michael. I is could tremendous the quickly tree-clearing Yes, issuance through just, we the Ultimately, start actually doing this FERC process to team on I pipeline we’ve mobilized prepared Jeremy, the the Northeast that very we be and construction team challenging all, certainly that really post job permitted early, for especially team got thank the rapidly it morning, to good in that done a fairly to project that so want for being window contractors designed would project really closing and first and certificate tree-clearing right Hey, loop a and environment, execution was pleased It’s that our of this permitting now, prepared and was there. got installations. project.

of partial service we XXXX. quarter by do in a So the fourth expect

will a So XXXX be to EBITDA. there contribution

be capacity opportunities certainly be We’re with uplift progress we Really producers where certainly Northeast. as in to see are project And producer do far, And will we been customers how it on in not pocketing ‘XX that’s this to to the that the some come the only the it’s will gone think not I yet, business as there side. business, unlocked really upstream. additional will The updated be in-service provide anticipating those gathering date think think year-end. will construction and do gathering so going awaiting when I value we this will But the with summer. in keep we’re that actual predicting of up you pleased it additional have well, as additional but Transco well before the on the I the online. to and through translate

Got That’s Thanks. will I there. it. helpful. leave it

from Marc line Barclays. of the Solecitto comes question from next Your

line open. is Your

Could Hi, particularly and course you the of us of affected good the and side maybe help through trajectory volume morning. impacts business segment unpack weather that West the the quarter, on maybe underlying that the during the cost the year?

Yes, Marc, I’ll add color. take can that on. Michael any

it I of which different One, margins, think break pretty a down quite couple the into about NGL talked areas. we’ve of a bit the impact is clear.

release, look you to lower the million appendix margins $XX analyst were If package on at year-over-year. NGL the the press

So come that’s decrease were that margins range. happened in was processing shrink down high plant dekatherm then, back since gas and by of into prices in there. go $X.XX. much that normal natural the year Almost the seen in a of that more impact the of at that almost NGL terms a $XX like had the all in of this pretty we good where And to all Opal January related way we’ve cost historically something

and as part plus processing Wamsutter gathering business you sum of of look JV of Wamsutter in what kind far of impact, the the impact. if the rest the the happened As upstream at the at

about million planned our expectations Some of two quarter. for those lower the were than first $XX

we saw the than in Bcf X impact, Bcf. that yes, might XX at whereas quarter, million said think looked we – between a little first things whole probably about I a impacted one again, $XX year, be of So the volumes of we saw for that two, normal about more a bit those

to ongoing. recovery – to conditions It’s a roads being and the volumes normalized recovery more and margins returning level. historic and rivers the there and we’ve are but very transitioned just happening So muddy out is now are is restored high

we a of quite quarter the what second in there first quarter. expect to the get when saw we improvement So versus bit

a take there was of That domestic focus to outlook helpful. online on it. over the of to years. obviously capacity incremental potential going expected medium come the is onshore But the terms export demand in curious everything just lot longer-term, geopolitically? on And on and to in demand your industrial also next LNG few in outlook domestic with the Got the very U.S. given get

good Yes. Thanks that question. for

natural that gas I down, going areas the be you driven. anything Obviously, the growing think we up exporter. use pretty price are really, likely, be to break will bring here, picking that, we’re here if major If – got be is U.S. we’ve the exporter users to obviously, the world fertilizer in will will that gas but of around the continue big piece be that coming is like been from industry and gas heavy lot business, are heavy the a other are that that It the lowest natural significantly to that and a domiciled industries going larger is home. means

I think, fairly that, certain. is So

that XX.X small expected about seeing. And Bcf the much there the right pretty think a look will that’s on growth probably in about is now how new amount I a number comparison right of against is, of up XX now, it’s And to pretty we’re terms growth to NGL Bcf in LNG day. of be think it by of ‘XX that at I impressive XXXX.

of lot coming a growth in space. that So,

misunderstands The obviously, other two area, us. I of for as to the for market facets it kind that the sometimes got earlier, I generation think mentioned us, power and that’s sector

First low certainly, coal today. there that’s there, that baseload gas take of business of are see when will all, out the out lot a we prices

see will shoulder, it summer. in in perspective, here But certainly addition that from this a seeing but already we We’re Williams we to that, the sell capacity. the

generation markets. can into other are with clear occurring, that, incremental that no capacity more be the provide so utilities demand it’s uniquely and for alternative in very with our and some left seeing for more really going And are backup we certainly electrification that those a you as as see in to our customers available we that’s of and that a that discussions gas-fired

our fall to benefit support average storage And natural that expansions not for demand of And electrification, storage for on much to thing generation and of and with has purchase MountainWest you our the can a renewables. Williams that last the as volume note capacity Transco the because as to gas-fired back acquisition is a is opposed be with annual and the perspective really key particularly to on capacity side continue of storage obviously, and that. that going Washington we the NorTex from our all concerned so to we that to the gas our really provided system, infrastructure, as transmission that we’re the to as natural up both study are demand about conversion year. And

We are it a position and well. all about being business that serve to in serve

Appreciate Got the it. helpful. That’s time. very

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

Your line open. is

Good Thanks. morning.

follow-up basically maybe a therefore, kind gas is results a have words, if on at and of think to on other you do this Sequent Sequent gas higher Just think hedge G&P lower prices? generate and In could offset against point, you some like worsening you the of side? exposure gas price prices Sequent, E&P the do go

to with volatility, perform where Sequent that’s because are say and perform Well, what they where there monetizing where is effectively, would going Yes. we’re Sequent is really just is well monetizing I dislocation that’s storage. there we’re basis to where going

from period we value locations. as and That’s one drives from as transportation Sequent. the movement for what basis us. well when for value period differentials drives those obviously dislocation a price really So time-based own between

swing bit going to storage not on available. to it’s to of people exactly certain quick to serve on renewables being growing for quite the that is And And see in and we’ve and volatility be where looming value the LNG big when period horizon. certainly, a the horizon hard got those for demand price we loads of loads don’t that’s so I definitely serve pretty a would forecast as a say

we will And from to perspective. a cause and spread both volatility a I both continue basis from think time spread

Sequent pretty that’s out sitting way perform prices we’re from at completely team curve provide is Sequent value it so in protect in And excited we’ve flat we’ve about be the where the long far to wouldn’t that’s we basis if what is But as future, environment clear. here a it time that with spread and and that. as both will were that the to wouldn’t going the well. and any perform there, got protection got But spread us

with just And the GeoSouthern for your I at curve good. prices JV the pretty these and is it. wondering futures on still Got if could you guess there comment was outlook I production gas levels. with

is of intent it there an a feet cubic of recover? or increase the a think by moderate day pace production kind So to goal was XXXX I to, still until could prices bit million XXX per

Thanks. Chad. This is

production continuing demand the on constructive, performed great As the GeoSouthern. of and partnership kind now, forward seeing as well. and got are now, noted, holding team development with kind at available capacity. they to as that And midstream that mentioned, right is the right curve intend Alan you And coming based of We’ve is gas and ‘XX exceptionally early we’re looking so keep ‘XX, macro they pick pace going up. into to of late perform

balance to as the So there desire is the to market continues are make ready sure I want a be demand. think there towards more volumes to to

are that continue Sequent They they’ll we And hard markets. expectation is very story, mean sure good really the to capacity. with midstream Again, working to pace the make so work they keep I find closely. our

the laid volumes think we to ability also our that Louisiana so and project Energy they’ll GeoSouthern Gateway good markets really that growth continue that And connected out. get to with the we’ve

it. Thank Got you.

of from Mizuho. Gabe Moreen Your next the question line from comes

is Your open. line

about your think the handle you about billion quarter still you this we what Should is quite looks the think and quarter out $XX I point? nicely morning, the bogey the in quarter Can in, Hi, average question a pretty quick on everyone. can beat for at the buybacks. that this good you repurchases then on opportunistic like figure the price quarter? John, for share ask it for is

be for performance Gabe. question, really for and the continues Obviously, the strong is to sheet Thanks financial company, in shape. great balance the

principally dropped. valuation this we’ve about Regarding the to that returns returns-based our the of beginning to XX%, that to repurchases, lowest we our investment discussed looking continue confidence are our in prices rate. base we’re lot associated capital very and expand we no Analyst really expected business that gas opportunities And to our with program, on as seen since dividend share on return long-term investment company reduction through of change natural our XX% what the we the in in seeing rate a regulated sharp even our the at buybacks, all Obviously, have we’re similar which the range. our Day, of really at have year, decline in X% taking talked while X% yield saw to we pretty we’ve being investments, that really X%, approach year, at the a growth emissions

investment a options. So all that attractive relative looked opportunity like of pretty to our

utilize it going I took financial action similar some share think to approach. that repurchase. forward, a we flexibility of be for will So And

monitor investment weigh will have. We investment against other that conditions up opportunities just that the we and opportunity

only The at would are add there. in capped we million of $XX that to not Alan. that is thing number this Gabe, kind Yes, is I

just and returns, buy on based that our our had be against dividend growth how happened as up we we to at that we mentioned. much expected rate could price So base targets our yield the set

Got projects. new it. just a some the on describe impacting, potential extent two-parter projects? alluded One that the you Thanks, those you prices MountainWest to think Alan. on on opportunities all that expansion maybe at Thanks, growth John. then or is coming And of ask to, maybe that fruition? could are I leg low is second customers with to gas can discussions And I

sure. Yes,

I’d is and the all, Obviously, of MountainWest basis. say end energy regional eastern of access. First Opal the there on spread big between a the

we’ve certainly as of any for built need And gone there. on to in kind support shown drives that can obviously, out has that that market. so the testing And that. up expansion be for –

come front. order that more in that about excited short on particular really to we’re pretty So and

over that, – the to area now getting there [indiscernible] the is is A there. like particularly In lack addition in on in of cap based Uinta, area kind things that though, takeaway of area. lot right of out the capacity gas

opportunities out some that the there. significant big And then coal front. plants coal to conversions western of And well so some on from gas pretty on as some

as – expansions And capture those we’re to well be positioned extremely will so we well.

to So in I team and would those around and work of the think maximize will Williams the really say that we were our of has pretty that value conservative in strategy in our those that, I opportunities been opportunities approach terms acquisition identifying bring efforts and assets we to doing there. with thrilled that

you I on what [indiscernible]? offer Gateway And why have don’t take the to that’s So question Louisiana that. Energy Mike,

LEG later I project The to we project think Yes. the in opportunity there, online to fall. still this have regard see that an opportunity

Right We we see in to type of have and in contracts. the come online expected there service are to lot and are away that acquisitions bring process well, XXXX are in occurring project we able our the online with for as the timeframe. seeing expectations there today. customers And being obstacles any as a to that producer achieve and I those take-or-pay permitting don’t

we And that today sitting so very on where with comfortable are project.

Thanks everyone.

you. Thank

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

Your line is open.

on This for the for Hi. question. Thanks is Jake Neal. Nivasch

commodity that? Just way sense a you. question to any quantify on G&P are of contracts at given Have and your a Thank get contracts, are wanted fee-based today, to floor, where a contracts like. the I are those fee just so, what prices looking if –

Yes.

our on gathering contracts? that was So,

correct. Yes. I am on Yes, the sorry, G&P.

Yes.

exposure a that So, gas we contracts have number pricing. to do natural have of

natural some those. underneath of then haven’t of those in We prices some wells have they as what increase where are. an gas at have on to have the But And gathering our floor that stated up, the fees more prices have talked rates. midstream where gas Barnett, about Haynesville we NYMEX like past, do have direct exposure those ratchet about the publicly the as we escalate, some opportunity like peers have we exposure that natural those we in

regard very also rates. for in just we regard those comfortable fee you inflation I on to a that will have in what the gathering triggers lot to guidance say, stand and So, those our And I remind expectation disease. we for do of our in part, this would based where we with most are year the are escalation in

in our those over job about we years team really last And And the our seeing we where those are as those several cover to for relation our are many cost cost good of feel pass-throughs example, that of are so able as well. to a those well. have in any controlling – has a being really that see. kicked generation, to increases lot done customers cost escalators and good increases our are and in And power escalation costs, those of a lot we

are But have we all-in-all, very So, are today rates to to low gas our G&P exposure the in comfortable we natural don’t that. regard with where prices.

the remarks. to that, for me prepared backed mention doing, expansions you be of structures the to heard we – to terms add tend pretty rate by obviously, and And in expansions those therefore, either base I much many are simple, which MDCs, volume exposed not we And these on my our expansions expansion. the that are in are several just are capital recovering by increases backed And all would increases or they the in for of volumes. that our as

set expansions way So, that of that are I up for those the the referenced. contracts majority

Perfect. you. Thank

line comes question next Scotiabank. Joe of Your the Brandon from from

Your line open. is

me hear Hey This Can Tristan with okay? Scotiabank. is you guys.

Yes. Thanks. Thanks Tristan.

Taggart five general it. the maybe general curious Gulf progress online and be and of in the great. of would on but sort Appreciate just update big Appreciate progress update bringing there online, a coming an Mexico your comments, just of Alan, kind on of ‘XX,

Mike, that? do to take want you

No seen that. take real from published in our will our have in what regarding I projects. sure, Yes, you materials change

have projects, We there, was good of pipeline made we the Western to shore last have that we the Mexico, the really done just platform installed and deck just was the and Whale week. fall, in the that Gulf last that oil recently progress on the modifications and installed brings on offshore gas

Markham good as an outage processing underway is that with there as work. we well. about feel are work plant The speak. And very that progressing modifications we all-in-all, So,

very we when A Discovery are front well. is are our system fully has under underway. of and in projects producers project producers that in going also. come the to permitted The project. XXXX And offshore work well Shenandoah So, that of onshore expected the also construction the we be for our lot working by will in the been is online work

It’s so. activities. right to And do to have advance ready so they the schedules and choose will But up those Whale timing those. those, of will nothing be for that wanted now in for changed if really producers has they they the to on well as their us online. project, hope we their We when offshore accelerate bring done like of that

good are go to on that we early non-CapEx if those. they we prepared tie-backs to But choose there so stand today and opportunities really that’s on had out And the the also. And progress have so. where do we

contracts we finalized – know we And this the Ballymore as project, vale with Chevron on as Tristan, well. quarter the also more you producers on

need capital require on doesn’t that on Of platform. our the other interest particularly that with significant that producer course, a producer deal, accomplishment you finalize part, to working but

on to as us Michael been out So, put on very and really so was great risk doing team primary for that has things front. us, the gone said, of gone hear It’s well, – things well nice great have that have that risk have have the there installation things offshore and and majority the is smoothly the been by great job because don’t that going behind anything so such by work you it team. a mentioned

on that on to And in need Thanks update a world of be progressing Do things primacy on curious we Okay. carbon you Alan. maybe how on side X are then the or project. an are for seeing maybe Class what that? that I LEG of sort updates maybe component there. go But in to of the on just just appreciate LEG. forward,

things again. also the the what COX remove That’s along then primacy. progressing and in sure. COX see This and Chad the today project. And pipe is we not ability is an Yes, move is gathering prepared makes It to upon on are the it. alongside project, the kind think interest dependent Thanks. that the the permitting Louisiana. well with sequester to but I think much third-parties more timing of also sequestration, in process, existing full can based just primacy I efficient we but likely mean that we work of for work

that project some track near-term. recent positive. has is Louisiana and right been dependent project looks looking on primacy is that. the like progress there don’t the now, in I to likely achieving be think And is But we think upon

Chad. Thank Thanks you. guys. Great. Appreciate it

question of from the from comes Dounis next Citi. Spiro line Your

Your line is open.

Thanks team. morning Good operator.

actually, pretty in like last to upstream sounds to you question, asset going assets, not monetize course. the have been those an close First year. of to it I an sales But as recall, need urgent

come So, sit to attractive curious now? at And strong curve here in process enough levels is where some just maybe forward right buyers that for incent to that does you?

I dramatically secret kept its acreage that work has say, Haynesville Spiro, say, I so would fast. great order Yes. by Southern up as just that is obviously, out that short certainly it’s But here are we interested there in on the developing team proven the that fallen any because interests. haven’t we with those. would no, monetizing those has capabilities required on been that there that capital off of continues structured, really way deal our reversion in

with And table, interested discussions, that mode. on that. are passive so offer those in put if somebody on to we I not attractive would been just will wants and clear entertain very we say that in offers we a But are continue to an market the we pretty been sell we the and certainly have the have –

the bottom And so are we market. of at sell not the to going

think for really, Wamsutter I get piece, to need we be midstream to benefit On development we to the got volumes lot where a there out our obviously, that the prove up business. more the have of

benefit that now along that But right of So, the improving on better great. the would again, could say business. execution I opportunity and for volumes that to could the there and up is probably be of and us downstream right value up development our the done still the is Wamsutter and came all getting develop there out I some would think be still there out they aggressively that there party convince

condensate have If do you is off area make we realize, us Wamsutter if that unit highest margin margin only the have you because much the area but production, the think interest obviously our for how not also clearly we gathering. about in we

gas the have gathering. We

have gas processing. We the

the have NGL takeaway. We

MountainWest take soon the that gas are likely away We via have the acquisition.

that want valuable that we get there clip off occurs. of for a lot and that, us that a out to developed, coupons of area to the sure makes production So, very to make

that out are anyway, So I we the of way would the about the we signs are selling not but sale thinking for say, market. at bottom it that’s

for That’s that Alan. it. Thanks Got color. helpful

to quickly Second back guidance for second. one, just a come to wanted the

I you just slowdown think a like, been out. the looks back producer mentioned the some at saw and the time gas price where to guidance contemplated natural that’s you the that Investor it Day, given proving at have degree,

what that expectations? compared We thinking kind am handful of just slowing have February, to activity, you how track of were of in seen your guess on to does I a now some I curious, announcements

ran But take year and we into Yes. Analyst for pretty in establishing our can I that, sober went would another and embedded what and we pretty thought bottoms-up we others guidance. the happening a with can estimates Day, good as the with be Since I feel chime went about in. forecast think customers. outlook continue producer conservative some then, guidance, to for Spiro we have our

Thank Perfect. Helpful you. color guys.

comes Sunil question the next from of Sibal Your line from Seaport Global.

line open. Your is

Yes. Hi. Good morning everybody.

some is a your first regard also comments I question there the discussions you Williams So, administration, something for my then note? to And to on from with is to opportunity especially curious, specific that administration. on based recent was that picked related on with just gas capitalize that infrastructure. was the up

critical faster plays gas thrilled more on electrify want to role help the recognizing natural we the and that. and were Valley going be and No, letter Secretary go to gas Mountain support point, we dependent we particularly Granholm’s and electrification, we at great of the that in Yes. see to to more support Pipeline are natural

this the on electrification. And to due quarter will has to help think that we that become Granholm’s I gas to reduction that in try electrification the and backup to to have pretty been of a see at inflation close that, so there you, have are I goals is that. was One, tell help we natural more last have of to industry going I to credit, clear few pleased certainly capacity things. utility and Secretary support the acknowledgment deliver really but support to

vocal the prime natural well, the front. the pretty well. gas. So, I that, importance have And the about very But folks of as the well, the on mark administration as example a understands Lynn the hit getting been utility that like has very of Senator would need for as permitting Good leadership, I certainly from clear messages been Duke Manchin, with reform done and you their think think I tell who about industry have a lot energy utility

And emission so facts reduction is people carry and have beyond to and goals kind going of physics the gas of that grid. just getting realizing cold support be correct and science of is that and down there out a able politically what are and of are aggressive we hard what are popular to our to electrification say natural to starting our to move to around lot

really for that. I are glad I you picked bodes to well that abroad. domestically natural think the And gas see as that well. we So, and am on thrilled here very up industry

curious, just is strategy we that was international then or pull updates in coming tuned driven Got of currently, marketing that. the is a more it. marketing up And on by kind to more the demand on LNG supply of so strategy, stay I But will push markets? it

selling international sourcing indexed of into States, interested we and is I mean are if to portion in world. buy but LNG great wants that’s And the LNG Henry connected to the in offer of both. supplies is one of markets there the has And LNG a most unique international exposure at domestic an international and today, buyer we have if the Yes. prices, the international production Thanks. we gas gas low-cost, that interest buy it’s in to Chad. that and United in producer things natural prices. primarily Hub buyer reliable This to prices. producers gain think I are we would a you say that are their about U.S.

what U.S. to to but able international So, in are offering be access because is buyers gas, interested producers we buy the that buy are international at supplied prices. an price LNG for that international natural ability our to gaining

today that product has index. a to So, international U.S. broadly a bridge a really Hub isn’t buy domestic unique and gas available be at we buyer for international Henry the between because producers buyers can

And native that a international I to would that domestic strong do but so both think buyers supplies, also additional more again. to want do that’s could so interest U.S. seeing, are index we buy to price producers they why exposure source and opportunities, really like gain price but markets in additional that from

really it’s of a So, combination both.

be also add significant are could are looking fee-based at what to project. for this that, about the to we thinking opportunities with is opportunities The pretty Yes. well If the pipeline built regulated beyond infrastructure some I Michael. that involve we FERC LEG there

certainly opportunities regulated projects associated looking to are transmission FERC the we So, with strategy. at water this build wellhead

they And on you bit say, to a two the there a where just those are And kind contracts mismatch of based it. I for, domestic Got do was at clarification the parties is of were duration one in months on the of looking think past, were back? a the of there – that. discussions, duration for in closer – between that, the parties were what contracts think and recent international looking few

take commitment support to, do more if are going offer large the of and be for are the And mismatch lot of goal than we is our the those is would across that lesser we unique again that. we matching positions, make the part, of to take we be going to term coverage I open But portfolio. a the the market part, mismatch a targeting of most not a any goal modest most There open our Yes. significant terms commitments. the to speculative that across term have sure adequate for to that to capturing to transactions. may product portfolio LNG margin on But be say kind not the would and de-risk are some positions. of

all Got it. Thanks for color. the

Jean Salisbury of Ann from line the from comes question final Bernstein. Your

is open. line Your

Thanks Hi. for in. just have me one. squeezing I

opportunities Commonwealth the enhancement yet? MarketLink. capacity today connector, You pull or not XXX board return past, out high of Do up, in starts if like completely, that exists the CapEx, also create Carolina you more in like kind are those of on have demand several even sell-side projects, Transco reliability low are MVP these Energy Mid-Atlantic they referenced than have

with definitely NBP Michael. from takeaway the completion that would those But project that projects. really Yes. more Ann, substantial with latter capital-intensive the These some say NBP returns successful with opportunities lubing would associated at Anything more opportunities that low now. I certainly this be anything those announced CapEx are we Jean and are regard. in are would is are right be much will on fairly opportunity compression is that at a of customers. we time, small haven’t there ultimately looking Transco be this But with built. healthy

on Ann, just the make the this decisions mainline that searching that doesn’t on make for in that southbound have expanding decisions I Pennsylvania expansion I critical as the to and optimize got there southbound new market well. decision Jean along around we make around come it on hit got head. really to to nail be how would gas brownfield from But to would the do that add, have obviously, of that is Michael NBP and some terms mainline think capacity built, If is capacity get along Alan. we if gets area is Transco NBP NBP, because going then have in built. we to

but So, it’s that’s and we time dependent Certainly, those harder or think it’s on passed. and of that getting the big gets is somewhat those are see might NBP get – harder predict finished, given really we what it kind to should built. waiting to be how it whether projects just not

the with sensible there, nation, is we see and anyway, I standing think it we that ready NBP, right hopefully, our are So completed. solution for alternatives but

a lot. Thanks Great.

will I Chief at this Officer, President Armstrong, you. the questions to call further no Mr. are time. back and over Executive Alan There turn

team we excited really as to great we you, are about deliver delivered a you. within and accomplishments tell how well. set as Well, up that really for this quarter are in just that particularly Great. the excited we team, the of that Thank quarter really we and I are commodity delivered, are future the cycle some we

forward more well positioned very rewarding to for with our are So, future the we and that. look in growth shareholders

forward you and look in us talking to joining So, thank to future. today for you the

conference concludes call. today’s This

now You may disconnect.