WILLIAMS COMPANIES Williams 1st Quarter 2024 Earnings Call
May 7, 2024
Strong operational, strategic and financial achievement year-to-date
KEY HIGHLIGHTS
Record contracted transmission capacity of 33.9 Bcf/d
Closed on accretive acquisition of Gulf Coast Storage assets
Upsized Southeast Supply Enhancement project to ~1.6 Bcf/d
OPERATIONAL EXECUTION
Progressed 7 projects through FERC process year-to-date
Continued progress on projects in execution
- 10 transmission
- 5 G&P
- 5 deepwater
Emissions Reduction Projects - replacing 112 transmission compressor units through year-end
FINANCIAL STRENGTH
Record 1Q Adjusted EBITDA drives expectations to top half of 2024 guidance
Raised 2024 dividend by 6.1%
Continued resiliency of base business during
price cycles
WILLIAMS © 2024 The Williams Companies, Inc. All rights reserved | NYSE: WMB I Williams 1st Quarter 2024 Earnings Call I May 7, 2024 I www.williams.com | 2 |
Strong results across key financial metrics
Strong Financial Performance
Across Key Metrics
Adjusted EBITDA
Adjusted Earnings per Share
Available Funds from Operations
Dividend Coverage Ratio (AFFO basis)
Balance Sheet Strength and
Capital Discipline
Debt-to-Adjusted EBITDA1
Capital Investments2,3
1Q 2024 | 1Q 2023 | Change |
$1,934 | $1,795 | 8% |
$0.59 | $0.56 | 5% |
$1,507 | $1,445 | 4% |
2.60x | 2.65x | (2%) |
3.79x 3.57x
$563 $525
1Does not represent leverage ratios measured for WMB credit agreement compliance or leverage ratios as calculated by the major credit ratings agencies. Debt is net of cash on hand, and Adjusted EBITDA reflects the sum of the last four quarters.
2Capital Investments includes increases to property, plant, and equipment (growth & maintenance capital), purchases of and contributions to equity-method investments and purchases of other long-term investments. 31Q 2024 capital excludes $1.851 billion for the acquisition of the Gulf Coast Storage assets, which closed 01/03/2024. 1Q 2023 capital excludes $1.056 billion for the acquisition of MountainWest Pipeline Holding company, which closed 02/14/2023. Note: In $ millions except for ratios and per-share amounts. This slide contains non-GAAP financial measures. A reconciliation of all non-GAAP financial measures used in this presentation to their nearest comparable GAAP financial measures is included at the back of this presentation.
WILLIAMS © 2024 The Williams Companies, Inc. All rights reserved | NYSE: WMB I Williams 1st Quarter 2024 Earnings Call I May 7, 2024 I www.williams.com | 3 |
Achieved 8% growth 1Q 2024 vs. 1Q 2023
WMB Adjusted EBITDA ($MM): 1Q 2024 vs. 1Q 2023
Core Business Performance
$2,100 | ||||||
$42 | ($42) | $3 | ($9) | |||
$111 | $34 | $1,934 | ||||
$1,900 | Gas & NGL | Other | ||||
West | Upstream | |||||
$1,795 | Northeast | Marketing | Operations | |||
G&P | Services | in Other | ||||
Transmission | ||||||
$1,700 | & GOM | |||||
$1,500 | ||||||
$1,300 | ||||||
$1,100 | ||||||
1Q 2023 | 1Q 2024 |
Core business performance drivers
Transmission & GOM
Higher earnings due to the Gulf Coast Storage and MountainWest acquisitions, Transco expansions and favorable segment costs; partially offset by Bayou Ethane divestiture and lower Gulf of Mexico earnings due to planned maintenance at our Discovery JV
Northeast G&P
Increased earnings due to rate adjustments across several franchises; partially offset by lower gathering volumes
West
Increased earnings driven by DJ Basin acquisitions and absence of 1Q 2023 negative Opal processing margins; partially offset by lower hedge realizations and lower gathering volumes
Gas & NGL Marketing Services
Lower gas marketing results driven by the absence of 1Q 2023 outsized transportation margins and storage gains
Note: This slide contains non-GAAP financial measures. A reconciliation of all non-GAAP financial measures used in this presentation to their nearest comparable GAAP financial measures is included at the back of this presentation.
WILLIAMS © 2024 The Williams Companies, Inc. All rights reserved | NYSE: WMB I Williams 1st Quarter 2024 Earnings Call I May 7, 2024 I www.williams.com | 4 |
WHY WILLIAMS?
Williams is a unique investment opportunity
Strategy fueled by natural gas
Our infrastructure is critical to providing reliable, affordable and clean energy to meet growing demand both domestically and abroad.
Shareholder value creation
Williams has demonstrated a long history of value creation to its shareholders with our strong balance sheet, durable returns, growing dividend and high return growth projects.
WILLIAMS © 2024 The Williams Companies, Inc. All rights reserved | NYSE: WMB I Williams 1st Quarter 2024 Earnings Call I May 7, 2024 I www.williams.com | 5 |
Appendix
Achieved 12% growth 1Q 2024 vs. 4Q 2023
WMB Adjusted EBITDA ($MM): 1Q 2024 vs. 4Q 2023
Core Business Performance
$2,100 | ||||||||
$1,950 | $120 | $0 | ($18) | $1,934 | ||||
Other | ||||||||
Upstream | ||||||||
$87 | $19 | $5 | Operations | |||||
in Other | ||||||||
$1,800 | ||||||||
Northeast | West | Gas & NGL | ||||||
$1,721 | Marketing | |||||||
G&P | Services | |||||||
Transmission | ||||||||
$1,650 | & GOM | |||||||
$1,500 | ||||||||
$1,350 | ||||||||
$1,200 | 4Q 2023 | 1Q 2024 | ||||||
Core business performance drivers
Transmission & GOM
Increased earnings due to the Gulf Coast Storage acquisition, favorable segment costs, Transco expansions and increased short-term firm and park and loan services; partially offset by lower Gulf of Mexico earnings due to planned maintenance
Northeast G&P
Increased earnings due to rate adjustments across several franchises; partially offset by lower gathering volumes
West
Increased earnings driven by DJ Basin acquisitions and favorable segment costs; partially offset by lower gathering volumes, NGL margins and commodity-based rates
Gas & NGL Marketing Services
Higher gas marketing results driven by the increased transportation margins and favorable storage margins; partially offset by lower NGL margins and lower gains on NGL sales
Note: This slide contains non-GAAP financial measures. A reconciliation of all non-GAAP financial measures used in this presentation to their nearest comparable GAAP financial measures is included at the back of this presentation.
WILLIAMS © 2024 The Williams Companies, Inc. All rights reserved | NYSE: WMB I Williams 1st Quarter 2024 Earnings Call I May 7, 2024 I www.williams.com | 7 |
Diversification of Adjusted EBITDA fuels stability and growth
~$6.8B 2023 Adj. EBITDA
NGL Services1 | 1% |
Marketing Services | 4% |
E&P | 4% |
Other Onshore Oil Basin2 | 2% |
Eagle Ford | 5% |
SW Wyoming / Wamsutter | 1% |
Piceance | 1% |
Barnett3 | 3% |
Blue Racer & Aux Sable | 3% |
Marcellus South | 3% |
Bradford Supply Hub | 3% |
Haynesville | 4% |
LMM, Cardinal & Flint | 5% |
Northeast JV | 7% |
Susquehanna Supply Hub | 8% |
Deepwater GOM | 5% |
NorTex Transport & Storage | 1% |
OPPL & Purity Pipes | 1% |
Gulfstream | 2% |
MountainWest Pipeline | 2% |
Northwest Pipeline | 5% |
~1% from NGL Services
~4% from Gas and NGL Marketing Services ~4% from E&P Joint Ventures
~7% from G&P
serving on-shoreoil-directed supply areas
~38% from G&P
serving gas-directed supply areas
~45% from Transmission & Deepwater
Transco 30%
1Includes Conway, Bluestem pipeline and Targa Frac. 2Includes Permian, Mid-continent and DJ Basin. 3Includes realized NYMEX gas hedge gains.
Note: This slide contains non-GAAP financial measures. A reconciliation of all non-GAAP financial measures used in this presentation to their nearest comparable GAAP financial measures is included at the back of this presentation.
WILLIAMS © 2024 The Williams Companies, Inc. All rights reserved | NYSE: WMB I Williams 1st Quarter 2024 Earnings Call I May 7, 2024 I www.williams.com | 8 |
Williams generates steady growth in volumes and Adjusted EBITDA
Quarterly Growth: Williams Base Business Adjusted EBITDA1, Contracted Transmission
Capacity and Gathering Volume vs. Crude Oil and Natural Gas Commodity Prices
250
Indexed to 100
200 | Capacity + |
Volume | |
Adj. EBITDA | |
150 | Oil Price |
100
Gas Price
50
2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | ||
WTI Oil Price2 | Henry Hub Natural Gas Price3 | Base Business | Contracted Transmission Capacity | ||||||||
Adj. EBITDA1 | & Gathering Volume4 |
1Base business includes Transmission & Gulf of Mexico, Northeast G&P and West and excludes contributions from Gas & NGL Marketing Services and Upstream Operations in Other. 2Source: EIA, monthly avg. price of NYMEX WTI Crude Oil prompt-
month contract. 3Source: EIA, monthly avg. price of NYMEX Henry Hub Natural Gas prompt-month contract. 4Sum of gathering volumes and avg. daily firm reserved capacity for regulated transportation (converted from Tbtu to Bcf at 1,000 btu/cf) for
West, Northeast G&P and Transmission & Gulf of Mexico segments. Volumes for acquisitions were averaged over the entire quarter in which the acquisitions closed. Note: This slide contains non-GAAP financial measures. A reconciliation of all non- GAAP financial measures used in this presentation to their nearest GAAP comparable financial measures are included at the back of this presentation.
WILLIAMS © 2024 The Williams Companies, Inc. All rights reserved | NYSE: WMB I Williams 1st Quarter 2024 Earnings Call I May 7, 2024 I www.williams.com | 9 |
Recent accomplishments
Gulf | Coast | Closed acquisition of 6 storage facilities with total capacity of 115 Bcf across Louisiana and |
Mississippi, strategically located to serve growing LNG and power generation demand; portfolio of | ||
Storage Acquisition | ||
assets acquired for $1.95 billion, representing a ~10x 2024e Adjusted EBITDA multiple | ||
YTD Transco Expansion Progress
Placed Carolina Market Link in service, commenced construction for Southside Reliability Enhancement and Southeast Energy Connector, received Notice to Proceed for Commonwealth Energy Connector, received FERC order for Alabama Georgia Connector and Texas to Louisiana Energy Pathway and pre-filed with FERC for Southeast Supply Enhancement
Sustainability Ranking Performance
Named to the DJSI North America index (4th year) and to the DJSI World index (3rd year), received top score in the S&P Global CSA1 in the North America Oil & Gas Storage & Transportation industry, upgraded to an "A-" on the 2023 CDP Climate Change Questionnaire, upgraded to an "A" rating by MSCI and named one of America's Most Responsible Companies by Newsweek magazine
Dividend | Increased Williams' quarterly dividend 6.1% to $0.4750 per share, or $1.90 annualized, up from | |
Williams' 2023 quarterly dividend of $0.4475 per share, or $1.79 annualized; demonstrating | ||
Distributions | ||
continued commitment to Williams' long-standing dividend program | ||
1Corporate Sustainability Assessment. All scores verified as of 5/1/2024.
Note: This slide contains non-GAAP financial measures. A reconciliation of all non-GAAP financial measures used in this presentation to their nearest comparable GAAP financial measures is included at the back of this presentation.
WILLIAMS © 2024 The Williams Companies, Inc. All rights reserved | NYSE: WMB I Williams 1st Quarter 2024 Earnings Call I May 7, 2024 I www.williams.com | 10 |
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The Williams Companies Inc. published this content on 06 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 May 2024 20:24:35 UTC.
