The Williams Companies, Inc. (NYSE:WMB) Q3 2023 Earnings Call Transcript
The Williams Companies, Inc. (NYSE:WMB) Q3 2023 Earnings Call Transcript November 2, 2023
Operator: Good morning, ladies and gentlemen. Welcome to The Williams Third Quarter Earnings 2023 Conference Call. At this time, all participants are in a listen-only mode and please be advised that this call is being recorded. After the speakers’ prepared remarks, there will be a question-and-answer session. Now at this time, I’ll turn things over to Mr. Danilo Juvane, Vice President, Investor Relations. Please go ahead, sir.
Danilo Juvane: Thanks, Bo, and good morning, everyone. Thank you for joining us and for your interest in The Williams Companies. Yesterday afternoon, we’ve released our earnings press release and the presentation that our President and CEO, Alan Armstrong; and our Chief Financial Officer, John Porter, will speak to this morning. Also joining us on the call are Michael Dunn, our Chief Operating Officer; Lane Wilson, our General Counsel; and Chad Zamarin, our Executive Vice President of Corporate Strategic Development. In our presentation materials, you will find a disclaimer related to forward-looking statements. This disclaimer is important and integral to our remarks and you should review it. Also included in the presentation materials are non-GAAP measures that we reconcile to generally accepted accounting principles. And these reconciliation schedules appear at the back of today’s presentation materials. So with that, I will turn it over to Alan Armstrong.
Alan Armstrong: All right. Well, thanks, Danilo, and thank you all for joining us today. As our first slide here shows Williams delivered another quarter of impressive accomplishments and starting out with our operational execution. So first of all, our project execution team completed the first half of Transco’s Regional Energy Access project, well ahead of schedule and our commercial and government affairs teams followed-up with the contracting and FERC authorization needed to place this in service and beginning full rate revenues for the initial capacity here in late October, so great efforts by our teams there and great results in a very difficult area. We expect the total project to be online in the fourth quarter of next year with the capacity to move approximately 830 million cubic feet a day of natural gas from the Northeast part of the Marcellus into the Pennsylvania, New Jersey, and Maryland markets.
We also completed several other expansion projects including a fully contracted gas transmission line that enables our newly acquired NorTex storage system to directly serve new gas-fired generation markets in that area. And in our West Gathering segment, we completed a large expansion of our South Mansfield gathering system in the Haynesville for GeoSouthern, which proud to say was the nation’s fastest growing gas producer last year. And in the Northeast, we completed the first expansion of many to come on our Cardinal gathering system for Encino’s rich gas drilling operations in the Utica condensate window. But the really big news this quarter comes in the new projects column. We recently signed precedent agreements of over 1.4 Bcf a day for the Southeast Supply Enhancement project, which provides takeaway capacity from Station 160 – from our Transco Station 165 to the fast growing Mid-Atlantic and Southeast markets.
And based on the open season results, we have even more demand to be met in the future that would result likely in a follow on project. So we are proceeding into the permitting process for this initial project due to the urgent demands to be met for this first group of customers. So in terms of impact, this will be the largest addition of EBITDA ever for a Williams pipeline extension yes, even more than our Atlantic Sunrise project and in fact, significantly more than the entire EBITDA generated from our Northwest Pipeline system. And I’ll remind you that these are 20-year contracts from the time the project starts up, which would be at least through 2047. And we recently signed anchor shipper precedent agreements for a Uinta Basin expansion on our MountainWest system.
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