The Williams Companies, Inc. (WMB) 7 May 242024 Q1 Earnings call transcript

Good day, and thank you for standing by. Welcome to The Williams First Quarter 2024 Earnings Conference 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.

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

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

today. quarter Williams. Well, Danilo, joining and thank you start for for all strong first Well, us another Okay. another thanks, and

gas on Hartree and natural owner of January, closed underground largest approximately of of Coast. on Transco, in here So the Starting few set Mississippi, partners The for assets fastest-growing we capacity quarter. affiliate let included first again, me begin making slide, on Gulf of saw gas this Yet and a acquisition by X for strategic portfolio our contracted Slide X financial And this located record Storage the $X.X and we facilities an operational of Natural led storage we've calling the achievements the left a in us on largest a out from by Gas natural transaction storage billion. Louisiana transmission here pipeline.

outpaced natural above as newly our acquired is capacity gas re-contracted natural expectations. this underinvestment XXXX. being storage gas our And storage realized is this for being acquisition at now Demand rates has thesis of since greatly

first we customers the X.X interest we with willing the prefiled Supply expansion of expansions, of we X. announced Enhancement reached capacity, form February fact, these of point In and to roughly to expansion Brownfield the gauging quarter, Also facilities on Southeast storage of the in potential this project the are contracts. supporting Bcf in FERC from and the a rates day have long-term underwrite of project

We demand both remind reshoring filing official the to that expect make FERC of are this Southeast later markets from And the and the generation markets. and will power project the increasing year. industrial These gas serve Mid-Atlantic experiencing I'll this you loads.

open and reshoring serve season, utilities have centers in increases come built on we data of as region, be generation markets. to industrial well area as needs Since the large the of based that to our the this back time provided in dramatic their

these for in Mid-Atlantic we early are Southeast believe the in we innings expansions So and markets. that

delivered execution teams list impressive accomplishments Our also this project of quarter. an

years. total, to In including be our fully the expansion increase next across online that execution we will equates XX% on long-term in capacity few a contracted which coming business, of in have per Bcf approximately Transco, projects day XX over high-return X.X

few a noteworthy opportunities, accomplishments Transco hit. these Within to

First, we revenues receiving and in Market this placed in began service the Link now Carolina the quarter. full

amount project, our to large a the there towards execution quite original Next, projects. coming And the our easy happy projects, that up bit expansion and pretty but where Pathway the that deepwater we're high-return Energy for number MountainWest and we and tremendous to the projects Connector by and commenced Louisiana modest end do Enhancement is a project of Alabama-Georgia sometimes the start period to of and you great as a we expect in overlook to but order this it's teams Energy well Reliability our on year. now of has projects on Texas we this difficult have Southeast report we System. This project large as FERC project construction some below received the things even Transmission in the for environments finally, a Southside advancing capital to estimate that Connector

on deepwater our to team congratulations that that accomplishments have budget remarkable and years So been now, X for below to budget. project that working get in on project pretty actually about and

Pipe. way are well state-of-the-art electric finally, turbines then And Transco and low-emission compressor and replacing XXX units our units teams to Northwest on with on their drive mainline

As case an a a realized regulated return incremental reminder, XXXX. will traction or through a that begin in generate these rate mechanism projects will

go the and team is compression huge useful there doing is past a of work in So that a its replace well this body great to but again, life, job.

scale You that on. of that much easy But go operations. to going efforts the so have can kind replacing It's miss. into of we imagine

to earnings and So the we're in excited that show up 'XX. see from

quarter So first performance. our now turning to of the financial highlights

record the execution confidence to commodity earlier steady guidance. And business, given raised outperformance end, An We can matter deliver most earnings and environment. our in in the think lower gas we of delivered business, and soft clear, right the Due the up the recently be underlying the share against quarter low our growth year, dividend our of any year-over-year continued and decline per To accomplish in X% even we XXXX to commodity through Marketing with the development. projects winter and despite high-return to important and and in natural from our without extreme this takeaway further we markets. our our ongoing marketing ability our the growth prices upstream quarterly continue we EBITDA the gas underscoring of resilience comp our impressive segments, which to an under now feat the last and expect reaffirms no environments earnings growth strength tough of is X.X% of contributions occurred that of from we prices this of severe our in $X.XXX weather resilience price EBITDA in and by which the half of billion, higher with segment. this year-over-year strong was were lack slate XX% than top price

this well remains grow through come. many that, over I'll walk quarter John? to positioned with at turn rate years it and Williams And to the year-to-date to to John for financials.

on gas for X we All Starting summary our Beginning X% with right. a quarter averaged year-over-year EBITDA, that Alan. year-over-year the an Slide of here adjusted natural saw of Thanks, than financial less increase performance. despite with first XXXX. $X prices

growth XX% overall X% that marketing primarily infrastructure in our the included businesses, and almost growth from fee-based is upstream JV. excluding Now

to year recent Transmission, included had and the Storage bit despite strong large-scale performance slide, a was expected acquisitions. from the Sequent falling effects the growth And of short our of As businesses, and it EBITDA extraordinary we'll our our by from which Natural they strong Gathering strong favorable next Processing including also start Gas had start on driven XXXX. growth another adjusted see our the business, core to Marketing

for in leverage XXXX Our for our with grew over our debt the very adjusted line expectations the in XXXX. see we've strong X.Xx. XXXX the guidance higher of XX% year. on XXXX And before grow our was to over CAGR for AFFO X%. to of EBITDA EPS increased dividend based for that dividend growth available X% EPS through a X.X% And to Also, funds a slightly ,X-year back was in quarter, down prior had X.Xx was just continuing X.XXx on you coverage operations off from adjusted dropping

financial half little So Overall, updates provide to next based few our and this range before $X.X original our positioned growth a end a upper to guiding slide we for XXXX guidance. $X.XX of guidance. we EBITDA the we of quarter. We'll towards upside the adjusted drive now our also to move well to of to dig the our deeper EBITDA billion start on billion and adjusted to high strong are into are the XXXX, for

XXXX adjusted remain billion. well to We $X.X range EBITDA billion on positioned $X.X deliver of to also our

based to for ratio adjusted adjusted key high ranges income in their per now per at well. metrics, of our EBITDA Additionally, case which dividend outlook coverage shifts, lead a in higher share expense coming AFFO we of per see assumption end other would as share and including EPS overall and XXXX, our changes, AFFO and the on interest share the improved

Mexico quarter storage Gulf Now plan many of is specifically high-returning organic key with transmission projects, expectations first results in as strong on going acquisition for ahead tracking and of a performance bit well good Gulf as business a of Coast immediate XXXX, continued our our expected our forward. best-in-class execution from with

with right plan offsetting on Processing Northeast quarter gas first wet in in for inflation areas. Gathering adjusters areas Our the gas drilling some dry and lower higher-margin was volumes business basically and

our work following performance The West a off bit teams quarter, transactions assets. of for to execution, along our preparing conservatism embedding with strong the first in DJ excellent across especially got plan, the the ahead for start also bit tracking all hard Rocky's West in allowed our recent see did winter a assumptions. also although a volume we're We where Haynesville around more

provides range assets, the Northeast higher volume reductions toward occur. update for guidance today For upside room both the the for West and movement of additional G&P don't and our if end those

to midpoint For again, help the beating from any doesn't rely point. of strong had overall start Marketing But Sequent XXXX full XXXX. on the at guidance a we've this our business, additional year

for supported a strong preparation weather. winter by upstream off plan, And see made to finally, to our nice our then joint team ventures again, versus the our start

expect our joint against upstream their as this plan we well. So well perform to ventures year

expected, flawless including which the at next billion, little effort MountainWest Higher XXXX. from Gulf billion million now So of far. closed the year's quarter contribution $X.XXX in which Mexico is Coast from a take year's service business, a start a acquisition, from and $XXX to mid-February year was Access slide results. the due also contribution it and which our growth Energy thus prior look from record nearly improved to quarter combined Storage the the start the delivering year. Walking to full partial in the let's Pipeline over closer Transco Gulf revenues, Again, effects with following or Hartree X% Regional full turn quarter and to a this Transmission with project, the of as a acquisition, strong first we XX% last integration $X.XXX

The also at maintenance was Ethane last divestiture by Segment some planned Bayou impacted and growth Discovery. year's unfavorably

increase from with in completed Shifting the our to decreases gas transactions year, dry fourth million we increased plan, now prior areas. about the line great or was in versus year. well start G&P revenue first Northeast Northeast revenues. roughly increase Our in or business quarter by volumes service the This $XX X% occurred Overall that increase performed after a million XX%, the rate for benefiting down the focused of fueled XXXX. the quarter driven $XX in with X% Gathering a with which DJ escalations $XX West, by performed last the million those of

Basin the Now the DJ unfavorable same of the in the hedge loss quarter XXXX. gains increase in magnitude the had as was results of first we about that

the year, by economics unfavorably plant. Opal, processing last weather West Wyoming January impacted severe the and Wyoming Additionally, was at processing significantly our

roughly moment up our year, in XX% Wyoming. and As then the primarily prepare our to a in by start more West Overall, I our better NGL gathering see also decrease volumes teams area. declines those million $XX ago, great X% us in Haynesville of preparations performed line our work for this business. West and mentioned in transaction which for a Gas marketing with And getting DJ our plan, was and in or off to weather and for effective than much operations the Wyoming winter the you offset the benefits volumes, done on proved upstream

XXXX I a it up come short a moment start. but ago, of bit was it another the As to year, start extraordinary did mentioned the strong

included our $X joint operations upstream Other last year. about XX% or in were Our million venture down from segment

EBITDA Our net actually was volume lower was substantially that $X about with prices. offset million Wamsutter upstream growth by strong up realized

more was realized from lower lower than production results volumes Haynesville increase by net Wamsutter prices. net and offset the However, both

our business to I'll with XXXX back with a So marketing it driven growth continued that, strength X% again, with from to by strong performance infrastructure turn business. And start in Alan. core EBITDA,

John. Thanks, Okay.

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

a now, continued hard rapid natural the This gas in This as this the infrastructure electrify accelerating. of exports to as is the is everything power reaffirming generate live accelerating centers to First the with in not clean placed LNG data will demand expansions as growth miss to great we and of solution resort of natural low it practical hungry demand the all, is just natural a and offers compounded it our energy is of growing low-cost, that demand power. uniquely gas premium. well drumbeat bargain turning world is natural and gas and period prices gas

betting gas of strategy our focused We our many benefits setting in natural investments and around space. have have for this years the been on and

more if So to you gas concentrated no natural than Williams. in infrastructure, is invest one want

most the gas company strategy today. demand decades our are around accelerating natural come, We to midstream will natural be gas-focused natural relevant and we the gas-centric thanks seeing are today, for large-scale to

strong conviction points Storage the assets and Our couple acquisitions bolt-on on led to these Pipeline, us strategic acquisitions. A like Hartree MountainWest of of strategy the NorTex Storage. of

investment I'll quickly First, the these thanks to opportunities -- puck and and finally, directly strategy our reiterate clear synergies line commercial compelling belief on opportunity. where Williams we deals being The we were these remains plans already are that with were expected sorry, decisive deals realized, our was a And thought in going. actions. based

seen an drive EBITDA and our now EBITDA you checks in I'll a investor adjusted portfolio. growth continues growth. CAGR years that, distinct this but winning durable growth issuing that of value and the consecutive conservative for Our X% all to a boxes predictable remind XXXX without long-term since deliver We've and steady, of and XX shareholders equity that looks to to and is strategy adjusted

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

And or over year the quarters paid for and Williams a period. beat estimate On the year dividend. beat in row that in has X/X the marks of analyst we predictability time a a The this have X-year XXth the front, row estimates now this Companies met XX

In future. your better And built financial even open for record present, strong is that, that the it is for questions. closing, with delivering business we've a in profitability up and positioned I'll returns the but

Citi. Instructions] question comes Dounis Our Spiro with first [Operator from

guidance, question maybe one, there. First the start with two-part to

think some So cadence volume here. 'XX left the go how John, throughout from there we as just for you if reductions about could unchanged. detail you'd given and mentioned you've a to EBITDA more leaving provide room Curious little And 'XX? maybe that

like Sounds slower contemplates levels. maybe activity 'XX also some

So around kind confirmation of to that? just some curious get

are natural then Yes, we as are I think, I'll But overall, start can being in yes, during where shoulder obviously, prices months. well. Micheal and and gas cautious, the chime especially with

caution, finished finished more fair taken a I from that amount really off started of think mid-winter embedded a think then, things plan where we to year. cautious, So I with think, the given since that just I we've at we a time bit where Analyst caution and the was we little were Day, which

we experience So especially a going of the around gas of are into rest upside relative to we areas. with hopefully, actually caution, the bit dry quite but will some these year assumptions, the

the that where guidance obviously, to -- year is often plans from on coming prices Based are. second This volume the really our of Micheal. quite add depending expectations Yes. feel half on comfortable they're we occur we that. where customers can talk with customers. producer the predicted to We about have here I Obviously, confident. their shifting, and and forth, results to had the our in we've our back

and in not but we as benefiting as say processing having And and just reminder, here volumes we confident rich activity in a within geography, going-forward as gas still our feel benefits rich this, And that the that so Northeast. business embedded the our so well have diversity it's always only said, have as and XXXX. And the side, some on lot our diversity and we about gathering plans I dry seeing us of across obviously, we're gas. a that gas customers I

the there. Appreciate Great. color

center say bit about It be quarters talking least maybe going to credit, now. point. this demand your to to Second seems Alan, mainstream data centers. data a few more for a you've question, been at the

you start to discussions thinking place to of center updated curious take how that forward? when demand really start more maybe I'd is get you're sort think tangible filter So know and love do what commercial And your we thoughts on see data about through? about to going to

individual over these Spiro. big time. size will to given the center is Yes. and as demand I that show up that isn't pool most one big systems. transmission Each this And Great grow of and of data question, a think do scale going

and collective certainly in are So utility data going broader the of be you there the as make terms cost it occurring them sure markets needs. up. that is now, centers and going gas certainly that the natural is And all a actually a to in so working of it's with to reshoring that centers with gets than broader is even their going I of of that's closely we needs that because that hype, of both is amount data AI would industrial serve part tell in can would say, of to we But growth fury these lot customers. show though low I is well. than And loads lot it's our their on right here.

of in If sitting about the the low-cost loads as such you and and rest industrial great world on of rest the the well. here world a cost resource U.S. energy, the is reshoring it the think of energy expanding

that a I to low-cost tends power. center say those combination so And of it's around would things

a areas, lot say, isn't we lot to is will, very our of happen able it's a a of and because think this quick to take on it serve of constrained just quite kind expecting, to these infrastructure. I kind it as are think one-and-done people don't talking we're ultimate going think people sizable going issue, but just maybe that a loads very I going be as of impactful. be So some all, do customers to first about. it to planning as But does be happen because it's to of would as I not long-term -- just are quick the to going

we And our looking all the gas, where both in take of and so planning it's land with communication to together. to address direct terms able at be low-cost going serve to also well, But customers, of are come as and that. it looking capacity time combinations some of are both we and all

working would of as us slip make It's you, and I Williams, are got that let a high very tell on don't sure priority by us, great working any So we've team assembled opportunities for very that's we, that. these hard. we a to

from Jeremy comes question next Our with Tonet JPMorgan.

Just further appears if oversupplied It just a bit at point? I natural I trajectory impact the guess dive you could. that into bit this thoughts at over Williams want gas guess, any and the And in how into XXXX and could year course of in supply-demand balancing market, wondering how I to share, a point time. this you might see that

the Yes. Great market notion in right would firmly Putting bought bought contracts a period. the some on to time storage feel is time value you market pick that lot unique now. Jeremy. with the to quite strong tell Sequent of here we for our a very that contango I and on in bought agree that we've question, kind that up have such the Storage. I had it's well. we because the of as storage we frame the oversupplied fortunate had And

business otherwise certainly we around now. be that's strong might oversupply not this with we'll finds of see business a to the respond contango. situation. of So lot I in to And to think adding also itself money And enough that starting to running demand that And also side to to keeping are the the I contango think prices. respond right the producers running But low well. always we're is because that summer, see a market rigs the as strong But of storage more and balance that. see way that starting the

I in right gas expect to call definitely now. the going big that in I for will think demand -- we materializes we're starting to years that start it's oversupplied on mid-'XX, do think come. that last see that But once And a to would do

power in some having of period people So waiting think direct about people future. going and looking think future is the the generation I And power you demand, transparent be it it and if pretty on about our -- turn maybe as when back, here pretty we will, is take market. going to is is well short and as both customers term, incremental though generation -- appropriately the to traditional from be are we And on a well. demand LNG power to but to it's think the patient as clear

lot So the market. for of future. that there's short term, is of the because clear such But transparent I contango we're oversupplied. a picture That's contango think and demand well-founded a in causing

point could thoughts, just out it. could And a coming was pivot to I play? I Got on at this seems provide other wondering items concern there want service? Basins updates in over in you to and widen progress into to project Southern then on that, just And if LEG without Louisiana given any litigation infrastructure guess, be that I any given the

And take we I'll Jeremy, the start this last those decades, crossings pipeline bit generally, regard and X,XXX I'll the U.S. in transfer. several of built crossings to energy a pipeline with been that XX,XXX just with in over have higher of are almost is your under that. have Micheal. companies level until issues each a that in for unless work for field have to get operators design in some recently. most most that the by got all our done most the are you engineers the you've those out being of with. But field the part, our part, involved

in DTM other So challenged cross ruling the Energy by seeing states ability And the Transfer the from Louisiana our say appellate in case. tide on been pipeline. turning the some court now issues. would and the is that and We're I lower court to Louisiana legal the overturned, ruling we've their

to in the that industry ultimately, there's these we're we'll going need troubling the that certainly an cases, outcome the a ultimately, been Haynesville, same certainly process. and pipeline with our Gulf to get have that difficulties But the move now legal to FERC to going through our of get on process, peer. it get centers Energy has demand that's through we're Transfer, out to having volumes definitely a built we'll ultimately, Coast initiated systems. think We our Transfer do. be Energy is move this We'll project expected the certainly, by gathering the was area To we

was Day. was at the established about it Analyst so project that And that within schedule talked anticipated, our and I

still service So in half filed expect closing, second regulated just XXXX last in And permitted date. more over the we U.S. operator, the in we than pipelines installed FERC the decade. and any

expectations when we're know And confident it our fully is this certainly design we've to it to into formulation unfortunate some late built. when coming either to being the be be comes of LEG this is project the certainly that year the schedule. we'll I'm LNG consideration needed. should most in in when designated And it are demand as XXXX in of ability It's outlined of We a well The that seeing and FERC going delays, a that but ultimately, project new very gathering we've We're our online. line taken get when or occurring to it's And the the having growth the in finish in happen. Gulf these recent regulated. early going in project. Coast the facilities

very with getting to I behind and And the said, on and confident so construction. getting about looking we're legal project the as issues forward us

from comes with Manav question Our next UBS. Gupta

will grow us EBITDA XXXX that help be strong I from some you us CapEx, elaborate question. of your the When spend 'XX like one ahead? Congratulations identify looking to can on a we spending you XXXX projects key only your in look projects here, money But you'll very growth have key quarter. be good help done guidance those that the the at on? to can

absolutely. Yes,

quite spend So to. look on the at Energy when that Gateway we've really expected just referred we Micheal of project Louisiana bit got XXXX, a

pipeline project, So gathering that Gateway of would would category biggest be processing the And Capture gathering Ventures is expansions. processing Energy far, spend and project. at first money the We that project. the be in have new in terminus begin Sequestration Energy of Louisiana area do by the Gateway our and and to Louisiana Energy on, which Carbon we're the expecting some the including some to investments

project. projects So that some LEG have be we also in. it's investing related solar to we'll But that

to some can in But year, of but list access amounts capital. our to going We still will into in on you see contributions finally, the execution. those typically wrapping those long then regional we MountainWest are are have this you'll have have projects will of that many, of upstream that our Transco smaller up XXXX JVs, many dates transmission XXXX. continue a their Obviously, we're see that energy spend reach in-service as and

that main XXXX. capital for would the growth pieces of the So be

terms I would 'XX. Gupta, And for drivers in just in add of growth

year We have we've those a this into spent end deepwater next number of large on and the capital, a of already the majority of coming towards projects year. that be will

going continued to positioned step-up what we for is that lot of we're growth be So really we're out excited a well how about the big think in deepwater growth area. there in and

in but rate additionally, growth, for drivers that's terms would drivers -- be So case on the one of Transco. growth for

reduction money start right charging up. when benefit we're spending now March new the all in emission so that show we of rates 'XX. of benefits of The projects the And will the up show our will on

the of for some are other those drivers So growth.

that Yes, I connecting a great of to growth. do didn't job

So thanks, Alan.

specifically, we rate that as Just service major X service projects of well and half Transco that Mexico and are have in the X Transco growth of are 'XX well as that projects, in of of mentioned. the in between deepwater Alan as Gulf XXXX, no where we've cases already the Or capital. cases, at capital projects projects, some the that but requirements are of And in spent some second were case those there many -- all.

with Wells Satish Praneeth from Fargo. comes question next Our

a start here. center with me let Maybe data question

taking other in like have bottleneck over some the last the large path years few of So most on if data the you start But the and even along to regions Northeast. more reshoring Southeast south see Transco's on that Transco. of the or build-out about expansions center Transco talked in place that the AI shifts we for capacity

or how higher the uniform for Or more just of opportunity expansions trying compression think there? on are think there in terms to return? Transco return kind impacts that things. of Transco along expansions anywhere southeastern more Just you maybe of do capacity Is about available part

time, Yes. even first that, We've so before a the first X.X Good missing it enhancement really Mid-Atlantic and Southeast out targets question. multiples. the evidence that load mentioned, quarter data now the Bcf and quite center filed became both announced Yes, it markets. utilities and have the the was project. that and though they said of our I does for is day, by that that growth serve were Southeast come many their those Since in as supply evident,

think I companies came growth power missed Southern fact, said XX original their out and times. In by generation for they

lots going on in those So markets.

terms In serve we're extremely abilities to positioned to serve our of well those, that.

project and that advantage to from Again, starting and Transco projects the example Southeast Pipeline Station-XXX, Mid-Atlantic at Southeast, we'll is of initial Mountain take of Supply will the Valley serve at along first in and XXX. Enhancement the supplies that, coming

the In time expand restore encroachment terms that on the and population of been pipeline along to derated have in continued system areas. over ability systems to future, ability due to pressures

needs our corridor. that a in well those the position our expansion And out lot going a of capacity. very So in a there right again, for expand with lots lot solutions area. me, that existing extremely there's teams to serve believe -- front us on in in ways expansions of of customers to And now our lot the positioned serve yet. in But to that growth work their not And we're areas, talk a that to of Transco with figuring about best lot on with that existing is and along systems. is of going that a

the And shift through of versus on frame That's all? questions upside of then much And parties need helpful. you the help XXXX of And go just I take to difference Got could had service? much of from open of how third there? for from, couple Sequent? an you now? base market-based guess, capacity Storage think do market-based Transco. guidance that on you see expect finally, is is here Can maybe Washington much you capacity an to just uplift EBITDA you and much how do to then in to a moving Transition that I this How in reflected then could at it. how rates that cost rates that market And -- season

you take do to that? Mike, want

Yes, I'll that. take

guidance So our yes, XXXX. embedded to is answer question your that in first, last for

now. the so choice where with process the tranche the desired. a customers term a capacity on customers, stands FERC they approved settlement that have a it our has So take to of

making that and they're May. So of end between now the decision now

and they'll pre-determined was ultimately, within a long upon for that there's the term decide they already of So rate want how a embedded settlement.

that will decision, April XXXX. once they so as effective make be of And of that

So that's go when rates will effect. into those

our expectations choices where we are will with up So the what definitely regard selection. of in to their embedded we think customers end

subscribed that project we a The us. great at think expect any fully in them. a We existing for It's good by customers. storage It's turn back is capacity for that we time. demand. Ultimately, don't really project of anybody high this to

Our with next comes from Moreen Mizuho. question Gabriel

Gulf projects. your quick one A on

Shenandoah plus impact about or just would there economics or some that? project that would Can demand fees been regardless? about delayed, whether being Or potentially you're minus. you talk about maybe year half there's whether kick a seeing think in talk I

at to say I not We're project schedule. in just what that. project. Gabe, is on of Yes, we details the liberty remain for that of in that the details forecast in But have contracting would get really confident into our part

going not producer. we're for anyway, the speak So to

ready project. part on a Our to be when be and we work were job there executing that to we'll that is to doing that, ready on of project time and of on our great serve team's and serve supposed

Are Understood. at the hard I a know you've under There's little interested strategy that it pretty a may the time? be may stake facility LNG LNG of that time. construction may in And at potentially that looked export maybe course looking stake? bit. you And not over I broader facility LNG just just fit in over can then talk pursuing into a how or if you

Port Gabe, are you referring Arthur? to

am. I

you take want do Chad, to that?

Yes.

projects high-return -- on general, operate build and I focused we we operate. that think in we're

continue attractive gas. at an markets our for obviously the we markets. And important are how destination to most so can to we U.S. customers look LNG connect natural

But find that's but customers if come look to again, we international them, our strategy. so looking And the our got continue our that to our those markets, been invest look primary connect for projects. so to at But infrastructure to positions we've not our We've kind focus. we'll customers our for primary opportunities LNG of many typically with connect ways chain organic markets. value we're ability to not to going non-operated projects, certainly been in opportunities better to that's of focus our and in

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

with I had on there. your [indiscernible] in three expansion follow up wanted utility I -- the your big conversations customers to

the interesting your those not When having reflect made enough gas did they talked you that and team. AI about at Analyst an You Day those utilities quotes underestimating in conversations, kind quotes about the power. had of where slide natural recurring

So that's project general Or that being AI in demand? is so in you've that that it? it far just some do reflected has you the so electrification think far contracted components

that developing even answer To that we of announced in ahead that. Yes. question, your of on our further was work terms project, when obviously,

that big large [indiscernible]. are for is of kind of incremental, you simply, might incremental that. some that timing now are [indiscernible] -- wouldn't answer the you the talking very to certainly, perfectly of not to serving to in expectation impacts about of so And about but remember I to starting reflected the that we're integrated And somewhat, Those project. that a the incremental in demand chunk the the in But terms their There growth load that. have customers reflect we're that have resource as degree incremental plans. been of question on your say is kind think

your sales on you updates going base how follow 'XX of then are get on customers have don't into do I producer those prices I of have delaying Do then guidance factor some in know get lower that? you line? up if turned you just to activity. And And if more any that or 'XX a into gas til better. wanted Okay. one your

are a to I ready of ramp And respond that they their productive producers market. of in lot be Well, a these and to think up in capability to respond there's the all, business first way Yes. fields. managing will the that And the ability balance, in what supply what I it, to and we're demand comments willing to they need respond to to to that's their to respond on being certainly end my seeing is gas that. ready as around earlier commit be to to producers mentioned able

some the is our So very lag period a respond 'XX to very difficult and respond it market there to that. supply certainly to and I think able quickly. to business be But be upside long the typically market for as start in to will

the now, I see I suggesting do in think, And to different strong and this from and in we confidence there's that's that's again, seeing fundamentals are however, this response different the than this think there producers we guy time. because because to our positioning behave time, and a visibility be the such I situation. a contango should hate forward market they the right typically how But the calling it's different that's such in this at that market point. both is

Barclays. Our next Theresa question with Chen comes from

storage contango? think And renewal? of Can largely contango, strong as touch seeing back economics on you a to the come contracts storage I'd of are give the this comments contango we rates up you're of Alan, you in go And due current as out for sense to what is come changes these us in and your like do the assets. benefiting durable?

detail have value ask that. you I'll I'm going Chad a we give Yes. seen think and and give Sequent We've to Good it the own markets quickly my to shifts seen with we've comments, markets in But I of to question, you Theresa. over little on to storage the seen volatile very respond in and value continuing. demand more time, storage, operations. these having that are our of certainly

be pretty in more and as that that market to on power factor to demand more the on not more the well that a think -- as load renewable meeting is with see to mature an when going run need LNG is to market. visible as LNG going It's both to little also I it's XXX% responsive. LNG closer more the more at increase is from comes

lot a capacity. the drivers storage think the increase for those I So of are in

and making business. response more And turns tighten Micheal we services and no their that think type certainly have of on previously customers they facility that and pretty hourly benefits they the Washington services storage the I service, As our from the the and pipelines flexible noted mentioned and don't sure strong seen flexibility the lose earlier, a up more to as market offered. of

and more more And for and becoming think put pretty to that's pressure business. gas storage continue I to the to more going that's the need business. evident marketing think I

the just that driving what's in In is let value, Chad of specifically rates. more little talk in I contango the certainly value the But of that. I'll driving And than a terms about one it's of driving pretty what seeing in increase we're terms elements rapid contango it's broader the a storage of think little rates.

Yes.

we're we're up a for it both and important seeing from supports But increased been I keep -- also a from double. -- than power often infrastructure more about by say really while, PJM that the volatility a the price to set -- what demand talk ability about That's on peak benefit value. our think significant numbers importantly, theme that's demand talking it's eye to extraction seeing an already power we XXXX, talked mean, in volatility I I infrastructure will to that of the Alan set mean full. that transition. We've markets, a themselves

perspective those time, And a but will an from we're going in recognition for driven so you're contango to assets reliability. value we like are seeing evolution in only storage assets be dislocations the seeing that and like need over not the current price a by market,

variable future. demand seeing LNG companies. Power will -- produced companies more We're much coming storage the power in need

and also And in of with the contango have market only storage seeing like the evolution in for an we're up we're seeing are so will not the apparent to near to be when but a set term recognize be reliability we there value price market, the dislocations both there not ability in occur. may conditions that there storage gas when to put storage price when value into be need in upset will the even will backup, for supply dislocation, increase

current the around see storage in from to set market the need the really benefit value long-term and for both So you for the we're dislocations reliability. up fundamentals well

the in there a where market storage dislocations important in for long-term need storage for all to value of plays the So driver are storage don't that value. also see the reliability said, is long-term long-term price think because the that that the from reliability. both markets in only We and role I necessary but be perspective contango providing

next comes from Tristan Our Scotiabank. with question Richardson

Day, a critical today or accelerating this amenable to about of Alan, critical the just of regulatory to we're and environment supply or this kind you you're supply your power seeing talked demand thematic back is lot least demand with seeing in general guys energy more Xx decade? electricity. of gas permitting form switching guest over of permitting that sort you Analyst of how a At about sort the sort increased and sort talked need have about a the the slide at growth meet for moment. to How speakers is reform maybe some demand and for the for talked of you next

the drumbeat. just base as going more reliability that Chad to more the us gas and to load, to amount natural and reliable louder would mentioned, capacity and deny I in of continuing really world really and as key more say of issue the these markets, need become stretch as louder to is the and Yes. we shifting is turns baseload and is be going a off coal, as

ISOs You're from hearing already. it the

about even to You're that important gas. -- hear commissions natural the starting to from they access from it is utility hearing how it have

You're Governor across coming the to Connecticut places don't those because stopped projects like hear they markets low-priced gas number starting into even have of upset are in state. that it a Cuomo that

So it's unfortunate.

like think don't as but we two unfortunately. infrastructure long-term together, meet politics, very kind it's of and a well situation It's the about terrible sometimes

I similar situation has on And bridge to gas to the our we say have to sometimes maintaining and that to on people bridges money safe. realize would fail And infrastructure. spend keeping

up on supplies data gas loud and from utilities screen when industry We going get to are growing to think think gas the to this. is, tech not in is just going the are this pretty the adequate it's struggling heavily get get that The terms is in of keeping centers going the news industry for be under-invested right I infrastructure both good really to I power, now with loud and need.

tech catastrophe the into forget quickly the come markets, how this to loud a but some -- we in people how going are think get of last hopefully, companies I how to got close it winter, to doesn't amazing it's this. And close me on last losing us to big the small facilities our of serving on markets that the got storage parts a a failures very some of well Northwest up there. of we at due to couple as competitors' one of pipeline shortage caused distorted as

power able in like these tend to works. way and the really think clickers That's gas and we've losing We've the able it event. on, pretty experienced a not gas we service to on. keep haven't been And populated because to a big off people, back service gas I service it just where lost been catastrophic but situation comes your manage. will just So think, heavily be areas we've

hopeful I constituents reform the for invest well. asking how we've question it more getting left certainly that permitting you we because our in would to got infrastructure, moderate say engaged it issue we're that. thank is this is and that take So going to try to the understanding and do as we're more this their for on important and make to adequately clear

on going hope U.S. We're it better progress do it, have in out with infrastructure keep if is I to So to to think large a issue get demand. very the we at we're building up here making but

then John, just one. it. a smaller Appreciate And maybe,

as and kind You contributions was of can think sort anniversary is segment of as of some But quarter? there takes a year-over-year. partial Just puts the of as growth in out MountainWest? the about thinking a laying sort of number [indiscernible] Hartree what appreciate organic the in we well the of

Yes.

that the relates in and announcements it valuation there. of very think as to the think the we made I MountainWest have tracked to and Pipeline were multiples involved Hartree terms we well the acquisitions

Obviously, those Day can XXXX. the with closed we think sizing acquisition. you you So can that the much MountainWest time of of made Valentine's I pretty terms Pipeline the announcements in in on rely -- impacts at to as

kind 'XX So the you in of versus 'XX uplift allows closed MountainWest Hartree, early in of With the year. relative Pipeline. that size the size for to it very

a we much quarter had full Hartree. So of pretty

Bayou did size I at information just then I work seasonal those that that they had impact as doubt, revenues which strong divestiture though, would Transco. that So put pieces. It divestiture -- last I we No couple for well. the well. did think as of as a Regional we uplift Ethane say Discovery, out from two that mention nice had things And Energy was did some some quarter planned think other Access, an and they downtime service a about the of we well. partial the size have of but that was good and the we year, some And way have

Sachs. Our next question Goldman Mackay with comes from John

gas Maybe it to keep the demand in policy front.

You earlier your Analyst guys this year. maybe plant Day footprint, have of lot also coal talked an a framed on you about the number up upside retirements kind at

power you plant any Just updates be curious, forward into emissions? that's carbon view? your recent share And how around thoughts EPA playing can on the

building Micheal. I have are this into to is in the some plants. the by on the watching certainly these John, these utilities gas-fired obviously, we're the sequestration in power have closely and is taken of kind plants midterm, would fact that that them Yes, say, consideration new that --

a out a of a the suspect be challenge, I plants. sequestration that that consumers. one end this going But as will no rule, tempering you happened to to respond is available in is technology It's requirement the that the opinion regard going to be and it expensive. for combined I but these my it's industry it's to to to times That's user and litigation be now, will EPA with think, for of cycle I that mean subject different. power I think lot expensive they the power new plan be we'll ultimately, several probably that. be certainly whenever come see

I the rub coal will seeing. I to meet AI they to we'll utilities there accelerating. the be boom the But their And retirements And certainly demand be And come. will the is, a definitely I plant able see big that that's plans. utilities think some with base to acceleration for retirements that the plant of into think we're think going with in coal take in boardrooms consideration

just that, think markets. a been I areas Iowa, about take to build in would where new perspective that issue pipelines level if to think to difficult areas. in right just And along Yes. underground there how you that the unrealistic very the through to sequestration and resources able South be Coast. that serving you sequestration in to isn't sequestration, heavily good going Dakota populated And East add think it's And we're around I now. if is those pipe for sequestration

And the volumes of physics politics and think where is popular this good to not up. able so have of are sequester large and Iowa heavily really, Sierra Club matching the forewarning I old-fashioned notion to being that's a areas. COX a pipeline think, hard sequester I place politics COX nature And a in to fighting the in is again about going carbon, of populated practical these

storage I appreciate from just existing quickly. into rates in a a back have you zooming you be guess all Brownfield opportunity. of that. making mentioned At beginning, the can Bcf add brownfield the basis economics very work. gas like, you footprint up come frame Appreciate Maybe perspective? the the I just guys how guys you specifically across I'd curious your think do on much on

the areas. is those away have right mean, the fact we Well, through I

number, it's has imagination stretch And it it's -- of so very a its a simple finite any there's not but large limits. as and not economic number by

way, have of has physical the its economic certainly not And limits so another there, through limits. have but it because right said way may we it its

next compression And area. -- add had is to so easiest the are to do over in thing replacing obviously, we've And then the derate that is to lines that time.

storage. about I think it's

storage. Sorry, on

thought on sorry about were that Chad I'll take let I we that. Transco forward. Sorry, back

sorry. Yes,

at salt-cavern on We capacity Just acquired the facilities in of a we Coast. Gulf have that do storage. quite the bit

kind looking Bcf at facility. capacity come there each at lot a we're expansions And expand. to of And tranches is XX in so those would likely -- and that of

kind think evolution, look storage market of recognizes be as I contracts that long to salt-cavern that cavern But we expansions kind going of incrementally of how for infrastructure but thoughtful do to short expansion. support us need about see And to to the need. would shift to at we're like the we're from facilities. that term Bcf XX kind term it those seeing

comes question Global. Our Seaport Sibal with next Sunil from

So a I wanted picture question. to bit start -- little off big

well seems on like the guidance, executing 'XX it pretty So you're 'XX. and the

of your So your performance constraints in actual use I of be What's especially best ranges? permitting if this the the guidance the to was end incremental the curious continue? out comes cash above if current top flows environment,

Well, boardroom Rating. outlook if and is a from S&P both And gets math, Yes. astute the saw look Credit we one and this starts our team question as well. positive debate you question that very that lot coming build a a change us on great to the and within outlook pretty the -- that quickly, of because at it's on

of here year. will we balance the for meet that through conditions so the think that the And

our expect So one I argue transactions buybacks, ones and of to share only in on them. we that assets that regard. have value, so much really added add the is performed policy would and and extracting way of our lever, about say, out have taking that of excited But another would acquisitions these value be lot extremely quickly more I dividend certainly, that to bolt-on continued teams a the we're synergies

capabilities have the organization we bolt-on decisively on be of so to kind purposeful about quickly transactions. very within and able those been building the to And act

lot far, on keep eyes being of we'll operator transactions. by we a add we've our to that the And value of immediately assets make on seen kind accretive Certainly, that. so can them so -- seen we've those

eyes of our aligned kind well. sort acquisitions with of for tightly keep we'll open as very those so And strategy bolt-on,

of kind near Northeast, MVPs the systems environment, really of that that current term? kind in what reactions it think soon. how you operating price your then up like leverage pretty producer in the of curious from in to the And kind then in I start the and impacts do And seems was benefit have gas you

question. great Yes,

right right loads this here if think out as be the now, strong pretty today. sit accurate are are now. predictions power that The summer we gen will weather there I

take working expansions supply I extent that. and we're And serve of will pools some those system think that probably capable responding on that, here gas see that's that as pipe Southeast pretty immediate term like be and in will if we'll on what and come that supply advantage ahead, we years the we'll areas coming the see gather for importantly, have that we on and volumes expansion, supplies. to see we from our strong upstream for to would supplies the of in our cost the start lot ability in us to is a expand there where lower at that higher lot Transco of full those that. incremental margin the benefit And a But XXX.

right to so at system for that's positive there XXX. And a huge us have high-pressure coming supplies our into

of Transco additional we'll advantage XXX from fairly confident see and And we'll the expansions that some fairly on system. so significant take I'm see.

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

all you present the just the very much. future. at company thank the produced excited what quarter a not in are it Well, lot of to they're that going We're talking for of to record terms Okay. and the do deliver people very in another about

to continue not and ahead expansions the decades, just deliver for major well in for strong our are couple these as we next we future for of contracting a were We years, of next the But system. very but extremely present. positioned on us the also have

market our start putting a to to home gas all of we the benefits and natural excited that lot a offer that now had see coming be strategy and for on we've very years by stuck infrastructure. with the others realized really to thought demand So

see this to here in team and great I the for excited of and employees extraordinary such that thankful to with very the company very turn results. deliver this all quarter and the to get the the leadership continuing efforts So for of work management

today. us joining for thanks So

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

disconnect. now You may