Q4 2024 The Williams Companies Inc Earnings Call
Speaker Change: Good day, and thank you for standing by. Welcome to the Williams 4th Quarter 2024 Earnings Call.
At this time, all participants are in listen-only mode.
Speaker Change: After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you'll need to press star 1-1 on your telephone. You will then hear an automated message device in your hand as raised. To withdraw your question, please press star 1-1 again.
Speaker Change: Please be advised that today's conference is being recorded. I'd now like to hand the conference over to the first speaker today, Danilo Juvane, Vice President of Investment Relations, ESG, and Investment Analysis. Please go ahead.
Danilo Juvane: Thanks Marvin and good morning everyone. Thank you for joining us and for your interest in the Williams Company.
Danilo Juvane: Yesterday afternoon we released our earnings press release and the presentations that our President and CEO, Alan Armstrong, and our Chief Financial Officer, John Porter, will speak to this morning.
Danilo Juvane: Also joining us on the call today are Michael Dunn, our Chief Operating Officer, Elaine Wilson, our General Counsel, and Chad Zamarin, our Executive Vice President of Corporate Strategic Development.
Danilo Juvane: In our presentation materials, you'll find a disclaimer related to forward-looking statements.
Danilo Juvane: This disclaimer is important and integral to our remarks and you should review it.
Danilo Juvane: Also included in the presentation materials are non-GAAP measures that we reconcile to generally accepted accounting principles.
Danilo Juvane: And these reconciliation schedules appear at the back of today's presentation materials.
So with that, I'll turn it over to Alan Armstrong.
Alan Armstrong: Great, well thanks Danilo and thank you all for joining us today. We have a very positive story to share with you today on our fourth quarter performance but even more so on how 24 has really driven positive momentum for growth in 25 and beyond.
Alan Armstrong: So, beginning here on slide two with a look back at some highlights from 2024.
Alan Armstrong: I'll start by noting that this winter Transco has experienced unprecedented demand for both natural gas and, importantly, for heat capacity on our system.
Alan Armstrong: In fact, last month, we set an all-time record moving 522 million decatherms, or about 10% more than the previous monthly record that occurred during January of 2022.
Alan Armstrong: And despite the milder weather for this time around, we had back-to-back-to-back all-time peak days, with each one surpassing the previous.
Alan Armstrong: due to consistent, widespread demand across the Northeast, Carolinas, and the Southeast. And in fact, 17 of the 20th highest volume days that we've ever recorded on Transco happened just this winter.
Alan Armstrong: And it wasn't just due to cold weather, it was from a combination of heating, power generation loads, and LNG exports along the Transco corridor.
Alan Armstrong: So, we are really rewriting the history book on peak days, and we remain convinced that our strategy of staying intensely focused on natural gas infrastructure is in the very early innings of paying off our shareholders.
Alan Armstrong: but a good strategy also has to be married up with crisp execution and our team continues to deliver in a big way on executing large-scale expansion projects in a very reliable manner for our customers.
Alan Armstrong: And these aren't the run-of-the-mill projects. They include expanding and some of the toughest areas, like 8,800 foot of water depth on our well project that came in well under the original budget.
Alan Armstrong: or even more hospital places like New Jersey for our regional energy access project.
Alan Armstrong: And then in December, we brought on the Southside Reliability Enhancement Project in Virginia. And for the sake of our customers and the consumers in these areas, it's a good thing that we did as both REA and the Southside Reliability Enhancement Project are running at full contract capacity.
despite the opposition claiming they weren't necessary.
Alan Armstrong: The irony is that even though the opposition has been motivated by greenhouse gas emissions concerns, these expansions have been key in reducing emissions in the areas by avoiding fuel switching to oil and coal.
Alan Armstrong: Not only do we have a clear line of sight to the full roster of projects in execution, but we continue to commercialize vital, high-return projects across our footprint.
Alan Armstrong: To that point, we announced six new transmission projects and continue a steady beat of actualizing these new projects.
Alan Armstrong: We also further optimized our asset portfolio by consolidating our interest in the Gulf and the Deepwater Discovery System and the WAMSetter Upstream Joint Venture, and we also divested our interest in OxABLE last year.
Alan Armstrong: Moving across the slide I'll call out our emission reduction project. We've long stated that our natural gas focused strategy remains synonymous with sustainability and last year we continued efforts to drive out emissions from our system by replacing 92 compressor units, most of which were over 50 years old.
Alan Armstrong: And these older units were certainly not designed to wind knocks or methane emissions.
Alan Armstrong: So, a tremendous job by our team of getting this important work done in time to be included in the latest Transco rate case, and again, very crisp execution on some very complex projects across the system.
Alan Armstrong: Looking at earnings growth, we reported another year of record-adjusted EBITDA, which marks the 12th consecutive year that we've grown our earnings.
Alan Armstrong: It's important to note that 2024's earnings record was achieved in a backdrop of natural gas prices that averaged about $2.20 for MMBTU.
Alan Armstrong: And this was nearly as low as the average price of nearly $2 that we saw during the pandemic in 2020, just to put that in context.
Alan Armstrong: So this really does continue to underscore the resiliency of our business through a number of price cycles.
Alan Armstrong: So I'm very pleased with our 2024 performance and the long track record of growth.
Alan Armstrong: But the fundamentals ahead of us present an even more fruitful environment on a per share growth basis in 25 and beyond, which I'll dive into here in the next slide.
Alan Armstrong: and I'll highlight a few notable drivers here. First, we are placing into service eight interstate transmission projects, totaling 1.25 DCF per day over the course of the year.
Alan Armstrong: In addition, we will also benefit from a full year's earnings contribution from recently completed projects such as Regional Energy Access, the Southside Reliability Enhancement, the Carolina Market Link, and the Uinta Basin Expansion on the Mountain West Transmission System.
Also note
Alan Armstrong: Our guidance includes conservative earnings expectations from the transco rate case, especially considering the large amount of capital we have invested over the last few years in things like our emission reduction project and other large maintenance projects on the transco system.
Alan Armstrong: In the deep water, we will have four projects commence service during 2025, including the whale expansion, which Shell began producing into here in January. And these additions will lead to a significant earnings increase from our Gulf of America assets in 2025.
and Danilo Juvane.
Alan Armstrong: In our gathering and processing business, we will place two large Haynesville projects in service this year, including the Louisiana Energy Gateway project,
Alan Armstrong: That will come on in the second half of the year and also drive earnings in 2025 and 2026.
Alan Armstrong: And we should see a stronger environment for gathering volumes with the current.
Alan Armstrong: 12-month strip averaging around $4 per MVTU versus the $2.20 that drove price-related shut-ins last year.
Alan Armstrong: To be clear, our guidance does not anticipate a big ramp-up in drilling activity, just a lower level of price-related curtailment that we saw last year.
Alan Armstrong: And as I mentioned earlier, we'll continue to invest in our business through strategic vote on acquisitions.
Alan Armstrong: In the wompsetter, we purchased the remaining 25% interest in our upstream JV by controlling these upstream operations and development. It will ensure that Williams can maximize the long-term value of the total asset.
Alan Armstrong: by better leveraging our existing midstream and downstream assets, and in doing so, capture significant margin on each molecule through gathering, processing, NGL, transportation, and fractionation.
Alan Armstrong: So, lots of incremental value for us coming off this asset as we focus on developing this large play and really driving the free cash flow through our mid-stream systems.
Alan Armstrong: In the DJ Basin, we acquired Rimrock, adding another gas gathering and processing system to integrate into our footprint and add value to the downstream NGL assets.
Alan Armstrong: I'm pleased to announce two additional projects on the Northwest Pipeline System in addition to the three that we announced last quarter. These are a clear indication of the incremental needs for natural gas consumption in the Northwest that seems to be gaining momentum.
Alan Armstrong: Within our Gulf Coast storage facilities, I'm pleased to announce that we are advancing a 10-BCF capacity expansion.
Alan Armstrong: that will support industrial power generation and LNG demand for natural gas as these sectors ramp up and the usage of clean, affordable natural gas supplies. So really excited to see the support out there for expanding our
storage facilities that we acquired this last year.
and Danilo Juvane.
Alan Armstrong: We continue to close on agreements that support our backlog of 30 interstate transmission projects.
Alan Armstrong: and we are moving attractive projects such as the Dalton Lateral Expansion on TRANSCOPE and the five recently announced projects on Northwest Pipeline from our backlog into execution and have continued to successfully refill the sales funnel.
supporting growth beyond 25.
Alan Armstrong: Important to note this interstate transmission backlog does not include direct investment in data center projects that are currently in development.
Alan Armstrong: These projects are moving at a very fast pace, and the most mature of these has gone far enough to fully support us ordering all of the major equipment and long lead items for this first project.
Alan Armstrong: And we will be announcing more details on this project in the near future, once we have a fully binding agreement with this large, credit-worthy customer.
Alan Armstrong: This bill will contain terms similar to the high-value transmission projects that we have been executing.
Alan Armstrong: along our system. So really excited about that project and would tell you that a lot of things to handle on the PR and government relations side before we get out in front of ourselves with an announcement on that, but we're really excited about the way that project has moved along.
very quickly for us.
Alan Armstrong: So, here on slide four, our natural gas focus strategy has differentiated us from our peers, and it continues to drive profitable growth year after year.
Alan Armstrong: Not only have we delivered record EBITDA in 24, but we have done so with the same share count and without stretching the balance sheet.
Alan Armstrong: as evidenced by our EPS growing at an impressive 14% compound annual growth rate over the past five years.
Alan Armstrong: This growth has been driven by our sharp project execution, where in the past four years we have placed 17 large-scale projects in service, with an additional 14 projects in execution today.
Alan Armstrong: What stands out the most here, again distinct from many of our peers, is the quality of the returns that we are seeing from these projects.
Alan Armstrong: Equally impressive is the commercial activity behind our attractive asset footprint, which continues to give us confidence in delivering on at least our long-term 5-7% earnings growth objective without issuing equity or stretching our balance sheet.
Alan Armstrong: To go further, the strong natural gas fundamentals have us positioned to potentially exceed our long-term earnings growth objectives.
Alan Armstrong: over the next five years as we gain clear line of sight to the impacts of LNG exports, coal-to-gas switching, particularly out west as we're seeing that rapidly change, and industrial reshoring.
Alan Armstrong: and using our skill sets to help solve demand for a whole new customer segment that is looking for highly reliable, fast to market and fast following power generation.
Alan Armstrong: So we are really excited at how attractive the current macro environment is in supporting the long-term growth of our business. And with that, I'll turn it over to John to walk through our financials.
John Porter: All right. Thanks, Alan. Starting here on slide six, let's begin by looking at the longer trend of our financial performance for the company, starting with adjusted EBITDA in the upper left corner, which grew about $300 million in 2024, or about 4% over 2023.
John Porter: At $7.08 billion, our 2024 result exceeded our original adjusted EBITDA guidance of $6.95 billion by $130 million in a year where Henry Hub natural gas prices averaged about $2.20.
John Porter: which was almost 18% lower than our original business plan assumptions for 2024.
John Porter: On the following slide, we'll talk about our revised 2025 guidance, which features a 3% increase in our adjusted EBITDA midpoint.
John Porter: And as you can see here, delivering on that $7.65 billion midpoint would drive an 8% 5-year CAGR, a growth rate that continues to exceed the high end of our long-term growth rate of 5-7%.
John Porter: Our adjusted EPS for 2024 finished above the high end of our original guidance range, and at midpoint for 2025, our adjusted EPS will see an impressive 13% 5-year catered.
John Porter: Our available funds from operations per share for 2024 also exceeded the high end of our original guidance. And at midpoint for 2025, it will grow at a 9% five-year CAGR.
John Porter: And our dividend will grow at about a 5% 5-year CAGR while maintaining strong dividend coverage.
John Porter: Some of that dividend coverage has been based on what are increasingly looking like conservative cash tax assumptions, which I'll discuss further on the next slide.
John Porter: And then finally, you see the improvement we've made to our balance sheet strength over these last five years with an 18% improvement in our key leverage metric.
John Porter: finishing favorably to our 2024 original guidance for leverage and with 2025 leverage that's forecasted to move us close to the low end of our leverage target range of 3.5 to 4 times.
Alan Armstrong: We've got a lot more information about 2024 performance in the appendix. As Alan mentioned, we were impressed with the outperformance of the business up against the tough natural gas price environment where we saw substantial volume curtailments throughout the year.
Alan Armstrong: The trends on this slide demonstrate the consistently strong performance of our business through various commodity cycles, with a business that is primarily leveraged to the growth of natural gas volumes and reserved pipeline capacity.
Alan Armstrong: Our natural gas-focused portfolio has consistently driven strong earnings growth through high-returning capital projects.
Alan Armstrong: And our balance sheet strength has allowed for additional growth contributions through immediately accretive bolt-on acquisitions without the use of any equity issuance during this time frame.
Alan Armstrong: So having covered the longer trend of our strong financial performance for the company, let's turn our attention once again to the year ahead with a refresh of the 2025 guidance that we originally issued in February of 2024.
Alan Armstrong: So here you can see on the left side a few key elements of our original 2025 guidance.
Alan Armstrong: And on the right, you can see the updates that we have for you today.
Alan Armstrong: Starting with adjusted EBITDA, you see our original midpoint of guidance was $7.4 billion, and now we're moving that midpoint to $7.65 billion, so an increase of $250 million.
Alan Armstrong: $7.65 billion would drive an impressive 8% growth in this metric over 2024, as well as a five-year CAGR of 8%.
Alan Armstrong: That $250 million increase in guidance is split between incremental growth from the business since last year and the effects of the Crowhart-JV consolidation and the Rimrock acquisition.
Alan Armstrong: In the Northeast, we've generally shifted expectations a bit lower in certain dry gas areas, but those reductions have been more than offset by improvements in the Northeast liquids-rich areas.
Alan Armstrong: In the deep water, we have seen some producer-customer delays that have unfavorably impacted the expected ramp in our growth projects Shenandoah and Whale.
Alan Armstrong: And finally, in the West, we've seen some overall modest net improved expectations, and additionally, our marketing business is off to a good start with the cold weather that we saw in January of 2025.
Alan Armstrong: So we are encouraged by this increase in our Adjusted Epidot Guidance that would drive 8% growth over 24 and that 8% 5-year CAGR as well.
Alan Armstrong: Shifting now to AFFO per share, where we're moving last year's $4.25 to $4.50, basically just tracking with the expected increases that we just discussed in adjusted EBITDA.
Alan Armstrong: I will point out that we continue to not assume any benefits from restoration of 100% bonus depreciation or any other favorable changes in the corporate alternative minimum tax, both of which are being discussed as elements of possible tax legislation for 2025.
Alan Armstrong: Our current guidance of AFFO assumes around $300 million of cash taxes, and restoration of 100% bonus depreciation for 2025 could cut that amount roughly in half, adding approximately another 12 cents in AFFO per share.
Alan Armstrong: And most of the cash tax that would remain would be related to the corporate alternative minimum tax, which of course can be applied against future regular cash tax amounts owed.
Alan Armstrong: However, even without any tax benefits, the $4.50 of AFFO per share in our revised guidance covers our expected $2 per share dividend about 2.25 times after growing that dividend 5.3%.
Alan Armstrong: Favorable developments on the cash tax front would further increase our AFFO per share growth rate and potentially serve as a catalyst for additional dividend growth.
Alan Armstrong: Finishing this slide up, you'll see improved leverage guidance of 3.55 times, even after further fueling our 2025 growth with the acquisitions that we've discussed.
Alan Armstrong: And also, you'll see no change to our growth capex guidance for 2025 at $1.8 billion, excluding acquisitions.
Alan Armstrong: So that covers the major pieces of our 2025 guidance update.
Alan Armstrong: As Alan highlighted, 2025 is an exciting year for our company with full-year contributions from last year's completed projects, as well as eight additional transmission expansion projects and four deepwater projects coming online in 2025. We've got a major transco rate case with the initiation of cash returns on our ERP investments of the last few years.
Alan Armstrong: We've got expectations for an improved GNP gathering and processing environment versus 2024 for the Northeast and for the West, including our Louisiana Energy Gateway Project. And then finally, we'll see continued growth from our strategic bolt-on acquisitions.
Speaker Change: Finally, before I turn it back over to Alan, I'd like to cover one more financial performance topic here on slide 8.
Alan Armstrong: For many years, we've highlighted the strong cash returns we've generated from our capital investments. And we've talked about the proof of those cash returns showing up in balance sheet improvement and per share growth driven by a lack of issuing any equity to fuel our growth.
Alan Armstrong: Last fall, we were pleased to see sell-side research that highlighted the strength of our cash returns on invested capital, which placed us first among seven of our closest peers for the 2018-2023 timeframe.
Alan Armstrong: On this slide, we've mapped out those cash return on invested capital values along the horizontal axis, and then we've also charted leverage reduction over this period on the vertical axis.
Alan Armstrong: The result really shows the strength of the nearly 23% cash return on investment we've achieved during this time frame, which drove a 26% reduction in leverage. And additionally, we saw a 19% CAGR on our adjusted EPS during this same time frame, with no equity issuances since the buy-in of Williams Partners in 2018.
Alan Armstrong: We are certainly pleased with the financial performance we saw during this period of 2018 through 2023. However, we are even more excited about the next five years based on the accelerating growth drivers for natural gas volumes and pipeline capacity. So with that, I'll turn it back over to Alan.
Alan Armstrong: Okay, well, thanks, John. Just a few closing remarks before we turn it over to your questions. We've been implementing our long-term strategy to bring Williams to where we are today with a healthy balance sheet and a clear line of sight to a full portfolio of high-return projects.
Alan Armstrong: During these early years of what is shaping up to be the golden age of natural gas, our natural gas focused strategy is taking hold in a powerful way that is delivering robust growth and compounding returns for our shareholders.
Alan Armstrong: Simply put, no one is better positioned than Williams to benefit from the natural gas demand fundamentals.
Alan Armstrong: Now, under the Trump administration and a Republican Congress, the U.S. is seeing changes in energy policy that are aimed at bolstering energy independence and economic growth.
Alan Armstrong: This policy shift underscores the importance of our country's strategic initiatives and positions the U.S. to take full advantage of the evolving energy landscape.
Alan Armstrong: However, to fully realize our potential and maintain our leadership position as a country, we have to be able to unlock some of the nation's largest natural gas resources in places like the Marcellus and the Utica.
Alan Armstrong: With the support of the administration and potential permitting reform, Williams stands ready both to help solve this problem and to be a major beneficiary of it.
Alan Armstrong: Pipelines power America, and our country and its citizens have reaped the benefits of this large-scale infrastructure for years. We should not take this historical benefit for granted and let competing countries rapidly
to capture tomorrow's opportunities.
Alan Armstrong: This is an important moment for our country, and Williams has the right strategy, team, and experience to deliver on the opportunities that we see ahead. And with that, I'll open it up for your questions.
and Danilo Juvane.
Speaker Change: Thank you. At this time, we will conduct the question and answer session. As a reminder to ask a question, you will need to press star 11 on your telephone and wait for your name to be announced.
Speaker Change: And our first question comes from the line of Teresa Chin of Barclays. Your line is now open.
Teresa Chin: Morning. On the gas-to-power side of things, specifically related to data centers in relation to the opportunity that you alluded to earlier, Alan, what is it going to take to get something like this across the finish line? And beyond this opportunity, can you help us lay out the addressable market ahead of you within this theme? How have other commercial discussions progressed?
Speaker Change: and, you know, how can booleans participate and capture economic value here.
Yeah, Teresa, thank you. I'm going to take the...
Speaker Change: The first part of that and then the last chad to fill in on that.
Speaker Change: First, as to what it takes in terms of getting things completed, I would just say, as I mentioned, we are very far along in the process and have full support from the counterparty for going ahead and acquiring the major equipment.
and long lead items.
Speaker Change: However, if you think about the complexity of landsiding, air permits, a lot of the regulatory issues that need to be dealt with, a lot of that needs to make sure that that has cleared and you've gone and checked with all the bases and the key stakeholders.
Speaker Change: before you put those announcements out there. So things are moving very fast. I can tell you it's kind of...
Speaker Change: faster than, for the scale of projects that we're talking about, a lot faster than we would normally see.
Speaker Change: But in doing so, we need to make sure that we've laid the groundwork adequately at the government affairs and public relations side to be able to make those announcements. And I think, you know, we're more focused on making the project successful than we are being somebody to punch on making an announcement.
and so I think that's...
Speaker Change: In terms of other alternatives, other projects, you know, a lot is happening on that front, but a lot of those areas require
Speaker Change: gas pipeline infrastructure expansions and and a lot of work that goes into that. I would tell you the thing that I think has impressed us the most though is
the desire for speed.
Speaker Change: on these projects, and that's probably the one thing that is moving.
the fastest. But again,
Speaker Change: You know, our counterparties, particularly the big folks, they're not really in a race to get an announcement out there, and they're the customer, and we're going to honor that as we move through these meetings.
these projects.
and Danilo Juvane.
Speaker Change: Yeah, I would just add that I don't think you know, I think we are really well positioned You know, we've been very intentional in creating a full
Speaker Change: suite of capabilities within the natural gas value chain. And so, you know, we are focused on project development and I think as Alan said, you know, not just
Speaker Change: announcing, you know, opportunities but developing projects the same way that we develop a Transco expansion project. And so what it would take for us to get to announcement is you'll expect to see us have
fully contracted commitments from high-quality customers.
Speaker Change: and we are developing projects to the point where when you see announcements that will be...
Speaker Change: effectively shovel-ready to start those projects. What I would say is we have developed the capabilities to provide across the full value chain. There are projects that we're pursuing that will be
Speaker Change: what we've been working on, and once we're, you know, fully contracted for a project, you'll see an announcement. It'll look a lot like any other large-scale transmission project that we would pursue.
Speaker Change: Thank you. And related to your gas storage projects, clearly this is a part of the overall value chain that is seeing significant need for investment. Can you remind us how much expansion capability do you have remaining across your footprint? And what did the economics look like for something like this?
Speaker Change: Hey Teresa, this is Michael. Yeah, I think we've got a lot of opportunities within our Gulf Coast Storage opportunity that we acquired those last year, or sorry earlier this year.
Speaker Change: And this is just the first one of those, a 10 BCF expansion, which is about a 20% increase at that location. But we've got opportunities out in the West as well. The Clay Basin Storage Facility is something that we're keen on getting expansions done there.
Speaker Change: The Interruptible Expansion that we've done is already in place and hopefully we can convert that to firm storage at some point in the future. It was some pretty nominal investment on our part, so we're certainly exploring those opportunities and it looks to us now that prices have come up.
Speaker Change: especially in the Gulf Coast area where we can accomplish these brownfield storage expansions and get nice returns on those and certainly comparable to what we're seeing on our negotiatory projects across the transmission footprint.
Thank you.
Thank you. One moment for our next question.
Speaker Change: And our next question comes from the line of Praneeth Satish of Wells Fargo. Your line is now open.
Praneeth Satish: Thanks, good morning. So maybe just staying on this behind the meter opportunity, the first one that you're close to the finish line on, can you help frame how large of a project it is?
Praneeth Satish: kind of in the billion dollar range, just trying to figure out the scale. And then secondly, can you help us understand how scalable this opportunity is given supply chain constraints around turbines?
Speaker Change: I know speed to market is the main selling point here, but I guess how fast can you get both this solution up and running and future solutions up and running?
Speaker Change: Yeah, I would just say this will be a meaningful project in terms of impact on our capital budget.
and this is not in our current capital plan.
Speaker Change: So just in terms of the size of the capital, this will be a very meaningful capital project and it'll come pretty fast, a lot faster than the typical transmission project.
would come. In terms of the scalability, you're spot-on that
Dad
Speaker Change: We think there's likely to be a constraint hit on power generation equipment. We've been very pleased with what we've been able to pull together in that regard, but I do think that these opportunities, you know, that's a likely point of constraint.
is power generation.
Speaker Change: equipment. So far, you know, we've got capacity. It helps that we're such a large buyer of equipment already.
Speaker Change: in that regard and have, you know, key relationships that have certainly helped us on this transaction. But I do think that that is a limitation that will hit this market.
It is the power generation.
Speaker Change: I would just add, I do think, though, we do see line of sight. Don't want to get too far ahead of this first, you know, the first project that we might announce, but I do think we see line of sight to be able to layer projects in over time that, you know, supply chain will, you know,
lead to us layering in projects maybe further out, but...
Speaker Change: You know there is a speed to market opportunity ahead of us. I think there's also a likely ongoing need for a combination of grid expansion and behind the meter solutions.
Speaker Change: to support the need of data center development, you know, at least through the end of the decade. And so, you know, our strategy would be to continue to layer on projects in a more predictable ongoing basis, you know, with obviously the earliest projects being the nearest to be in service.
Speaker Change: Got it, that's helpful. And then, you know, one thing that surprised us is the 2025 CapEx guidance, $1.8 billion, that was maintained, despite the opportunity set. And it looks like, you know, you've got a good amount of white space for more investments, I think around $400 to $500 million of excess
Speaker Change: free cash flow in 2025. So maybe you could just help us think through two things. First, you know, what is your willingness to flex CapEx higher in 2025? If this BTM behind the meter project goes through or some of those.
Speaker Change: 30 potential front-of-meter projects. And then secondly, you know, what's your philosophical approach to pushing closer to free cash flow break-even levels or even exceeding it in 2025 or 26 if you've got the right projects?
Speaker Change: Yeah, well, first of all, as I mentioned, you know, that project, despite the fact that we've made, you know, equipment orders that are fully supported by the counterparty.
Speaker Change: That is not included yet in our capital and won't be until we fully consummate.
the final agreement.
on that.
Speaker Change: But in terms of our capacity, yes I think we have plenty of capacity and I think we'll remain very disciplined because the kind of returns that we're seeing are very attractive returns and you know well above
Speaker Change: multiples on our cost of capital, so we certainly have the capacity.
Speaker Change: to go after that and we really will continue to look at things from a risk adjusted return up against our set of opportunities. So I actually see
the, you know, certainly
We're not going to stretch the balance sheet.
Speaker Change: and so that that's a limitation we're not we're not going to go there and we certainly are proud of the fact that you know we've gotten to where we are today without issuing equity and we think that distinguishes us in space.
Speaker Change: So I think those are kind of limitations on the upper end against the projects that we have out there in front of us, and therefore it becomes just a survival of the fittest within our capital allocation plan.
Speaker Change: on a risk-adjusted-return basis, and that's really how we'll continue to look at things.
Got it. Thank you.
Thank you. One moment for our next question.
Speaker Change: And our next question comes from Neal Mitra of Bank of America. Your line is now open.
Speaker Change: turned in line wells that were delayed to come on. I'm just wondering what your producers are indicating now that we're in a much higher gas price environment in 2025 than in 2024.
Speaker Change: Hey Neil, it's Michael. Yeah, I think we've still got the ducks and the tills, the deferred tills that are...
Speaker Change: producer customers are still holding back on and we'll see those come on as prices continue to firm up and they bring those volumes on but we still think we've got close to 3 BCF a day of IP that's out there that could come on throughout the year at some point between the ducts and the deferred tills.
Speaker Change: The producers are talking about a lot of capital discipline as well, and they're talking about pricing needing to be sustained and much higher than even where it is today, possibly, for rig activity to increase.
Speaker Change: and so we're taking a pretty optimistic approach but pragmatic as well in regard to what our guidance has embedded in it and certainly think pricing will help producers ultimately make the decision to start drilling at a higher activity rate than they were last year.
Speaker Change: But right now we're pretty optimistic about the ability to bring on gas very quickly should the prices justify that for the producers with where the tucks are. We've got those connections virtually already made so
Speaker Change: they can get to market pretty quickly if they're ready to do so.
Speaker Change: Okay, great. And not to beat a dead horse on the power generation opportunities.
Speaker Change: But wanted to ask, what gives you a competitive advantage in kind of
being ahead in the supply chain for turbines.
given that's the main supply chain constraint.
Speaker Change: Is it because you have ordered so many high-horsepower compressors through the...
the Transco rate case and upgraded that system.
Speaker Change: And, you know, essentially those can be used as as power generation turbines. I'm just trying to understand how you're able to kind of scale that versus some of your competitors.
Speaker Change: Yeah, you got right on it there. You know, the same drivers that are used for our large compression systems are the same drivers that are used for...
and Danilo Juvane.
Speaker Change: equipment on the power side or on the driver side of the project, so yes that puts us in a very advanced position given the amount of purchasing power that we have on that front.
Thank you.
Perfect, thank you.
Thank you. One moment for our next question.
Speaker Change: Our next question comes from the line of Jeremy Tonnet of JP Morgan Securities. Your line is now open.
Hi, good morning.
Hey, good morning.
Thank you.
Speaker Change: Just wanted to come back to the, you know, servicing data center opportunity set. It was just curious, I guess, how you think about the opportunities across your footprint, be it in Pennsylvania or Texas or Wyoming. Do those solutions, possible solutions, look different in any state?
Speaker Change: It seems like in Wyoming, with these recent acquisitions, you now have gas supply, GMP, pipes, marketing, land that could really...
Speaker Change: be a compelling offering there, so just wondering how you think about, you know, what the opportunities look like from location to location.
Speaker Change: Yes, Jeremy, you are right. We do have some, you know, very attractive features.
Speaker Change: and attributes that we bring to the table in some of those areas for
Speaker Change: particularly for hyperscalers that are looking to set up new opportunities.
Speaker Change: And so I do think, you know, as Chad mentioned, we do think that we'll see a series.
Speaker Change: of those kind of opportunities continue to build out over time.
and so
Speaker Change: So you are right, I think we're extremely well-positioned in a lot of those areas, and we are seeing a lot of activity, but it does, you know, it takes a lot of time to
bring to fruition.
setting up a whole new
campus area, if you will.
Speaker Change: but places like the Salt Lake Market is a great area for us and we're extremely well positioned out there. We're really excited about some of the development we're seeing out there as well as a state that has been working hard to provide a friendly environment for development out there as well. So, I tell you that the,
the
Thank you.
Speaker Change: grids as well as the state politics are going to be pretty critical at trying to be able to keep up with the pace.
Speaker Change: that's out there and that is going to drive some of the winners and losers on this and you certainly are seeing
Speaker Change: particularly for the big hyperscale projects. You're certainly seeing people start to look back to the areas where the energy resources are.
Speaker Change: like Wyoming, where you have both the wind and the gas resources in the area and are not constrained. But I think that's kind of a.
Speaker Change: at least chapter two in this process, and because those are big, long-term projects to develop. So I think in some of those areas, that'll be kind of chapter two on this.
spread.
Speaker Change: Got it, that's helpful, thanks. Just wanted to dive into Pennsylvania a little bit more if we could. As far as we can see in the state, if we look at constraints, electric transmission relative to natural gas transmission.
Speaker Change: It seems like on the electric transmission side there's not the same constraints as we see on the gas side Just given that it's hard to get new interstate pipes built And so if there is ample supply and it's tough to get the gas out of the state, you know potentially
Speaker Change: Lower gas prices could feed, you know, higher electricity prices, a wider spark spread. And given your position there, it seems like Williams could possibly take advantage of the wider economic rent there. Just wondering if there's any thoughts you could share.
Yeah, I think what I'd share, and maybe just...
Speaker Change: also related Alan's prior comments around the activity we're seeing for increased power demand, data centers, you know, Virginia, Pennsylvania, Ohio, and kind of the most mature markets to date. I do think, you know, the way we will think about it is we can offer a natural gas solution that is
Speaker Change: even potentially more competitive than grid power for projects along our footprint. And so, you know, we are seeing that opportunity. I think it's
Speaker Change: Yes, there's a desire for speed to market. There's obviously challenges with, you know, not just the speed of expansion of the grid, but also the cost and even some of the social.
public, I think, concerns around
Speaker Change: around reliability and cost to the consumer and so I think it presents a great opportunity not just in Pennsylvania but certainly in those core areas of our footprint to provide a solution directly to these
Speaker Change: new loads that is both very cost effective, low emissions, and in many cases, you know, a better solution than grid capacity. So that's certainly part of the theme that we're pursuing, not just for data centers, but across the whole footprint.
Got it. Makes sense. Thank you.
and Danilo Juvane.
Thank you. One moment for our next question.
and Danilo Juvane.
Speaker Change: Our next question comes from the line of Manav Gupta of UPS. Your line is now open.
Manav Gupta: Good morning. You raised the guidance by 3%, which was very positive. Help us understand what could push you towards the top end of that guidance for 2025.
Speaker Change: Good morning, Manav. Thanks for the question. We've got a pretty wide range there. I think a lot of that would have to do with what exactly we do see in some of the gathering and processing areas, for example.
Speaker Change: We've discussed this morning that we are remaining fairly conservative about overall growth levels and in some of our gathering and processing areas, we actually.
Speaker Change: pulled back pretty significantly in some of the dry gas areas.
Speaker Change: versus our original guidance, and so, you know, there's always definitely room that, you know, we could see outperformance around the producer customers in some of these gathering and processing areas. You know, sequent, as we all know, is a little bit of a hard one to predict.
Speaker Change: Maybe to just touch on that, we still have a pretty wide range of potential outcomes for sequence, but we did get a strong start to the year here with January. So we're pretty confident. We'll be 100Million or so for sequence this year, but still really unclear whether we would get back to a level like we saw in 24, which was 215Million.
Speaker Change: some range of potential outcomes that you could see around sequent. Continuing on, I mean, we talked about the number of projects that we have coming in service this year. Early in-service dates for a project always represent a potential upside to our base case.
Speaker Change: And as I mentioned earlier, we do have a number of projects coming online. We also have the Transco rate case.
Speaker Change: which we hope to settle this year, if we can. And we've got a, I would say, a fairly conservative assumption embedded in our guidance. We did not change that assumption relative to the original guidance that we put out in February of last year, too.
Speaker Change: So really a number of different things that could come together, you know, each one of them or a combination of those factors that could drive us more toward the high end of guidance.
Speaker Change: Perfect. I'll just quickly follow up slide 35. Can you talk a little bit more about the coal to gas switching opportunities and how they are progressing as you see out there?
Speaker Change: Yes, sir. Ample coal to gas switching opportunities. Potential for 8.4 BCF gas growth.
and Danilo Juvane.
Sure, you know, this is just showing within our footprint.
Speaker Change: what we're seeing out there from coal-to-gas switching. I will tell you the area that we've really kind of has taken off in that regard has been out in the Mountain West region.
Speaker Change: where we've seen a lot of big conversions on some very large plants like the Jim Bridger.
Speaker Change: plant and the Notton coal plant, which are in the Wyoming area there.
Speaker Change: So we are really starting to see a lot of the big plant operators out there make those kind of commitments. Obviously, we've been seeing that in the Southeast and the Mid-Atlantic for some time.
and Danilo Juvane.
Danilo Juvane: We have a project in Alabama that is that is specifically focused on repowering a Alabama power plant to coal. So we are capturing a lot of those projects as we speak.
Danilo Juvane: And, you know, it's not really a big stretch for us to capture a lot of these projects, particularly out west. As you can see, those are right on proximity to our systems out there, and we're seeing some strong interest from them.
the big power player out there in converting.
and others.
Danilo Juvane: plant. So this continues to be kind of a drumbeat for us in a lot of these markets, the Dalton lateral.
Danilo Juvane: expansion project that we announced last quarter there in northern Georgia is partially a conversion of coal as well as an expansion of power generation opportunity in that area as well. So you know we are seeing a pretty steady drumbeat on on this opportunity.
Thank you so much. I'll turn it over.
Thank you. One moment for our next question.
Speaker Change: Our next question comes from the line of Neil Dingman of Drew Securities. Your line is now open.
Speaker Change: Yeah, hey, good morning. This is Jack Wilson on for Neil. Can we just double click on the momentum you're seeing in the Northwest? Looks like you've got about 580 additional capacity coming on by 2028. Do you see additional headroom beyond that or is that kind of reaching saturation in that market?
Speaker Change: Yeah, no, Jack, I would say in the last, you know, six to nine months.
Speaker Change: This has been the area where I think we've all been kind of...
Speaker Change: surprised every, you know, in our monthly commercial review meetings, we've just been really surprised with the amount of
continued demand for capacity expansions out there.
Speaker Change: and it's actually gone, you know, faster than we've expected it to. But I would tell you that, you know, based on some requests for service that we've seen recently, this is going to, I would expect this to grow even faster than what we've seen here recently. So lots going on out here and pretty exciting.
Speaker Change: It sounds like continued opportunity up there, and then is there going to be any sort of cross-border impact against the Huntington connector up there, or is that kind of a non-factor?
Yeah, Jack, that's a non-factor.
Okay, perfect. Thank you very much.
and Danilo Juvane.
Thank you. One moment for next question.
Thank you for watching!
Speaker Change: Our next question comes from the line of John McKay of Goldman Sachs. Your line is now open.
John McKay: Hey all, good morning. Thanks for the time. Last year, you guys were pointing to potentially, you know, revising the long-term growth target of five to seven up, or at least kind of talking about potential upside to that. Can you just frame up where that conversation stands now? Is that dependent on maybe formal FIDs, some of these data center projects? Maybe just walk us through that.
John McKay: Yeah I would say that and you know as I just mentioned a lot of growth in the Northwest. You know one of the things that that I think the market misses
on this.
John McKay: to what the actual project, direct project is, and certainly those will drive growth beyond 5-7%. I feel pretty confident at this point if we're able to consummate these projects that we're
were finalizing.
John McKay: So the answer to that part of the question is yes, but I will just tell you that a lot of the growth like we're seeing in the Northwest, ultimately, that's going to go to serve.
John McKay: power generation demand which will indirectly is being driven by a lot of the data center load. So while everybody's kind of hyper focused on the individual project announcements
John McKay: We're seeing the impact of that growth show up in the way of IRPs from our utilities, which is in turn driving gas transformation demand on our system.
So.
I actually
John McKay: You know, I know people are super excited about the data center projects. If I were an analyst paying attention to this, I'd be more excited about seeing the kind of peak day demands that we saw on Transco this year and the 10% growth in January that was not driven by weather over the previous
John McKay: and Coltsnap, to me, that is more the fundamental drivers of growth for our business, and I'd be paying attention to seeing these peak days continuing to be hit that are not being driven by heating degree days, more so through these individual projects.
and Danilo Juvane.
Speaker Change: Thanks. Yeah, absolutely. That makes sense. Just a second one from me. Could you just remind us what the general strategy on the E&P side is, just following the JV buy-in? What's kind of the long-term plan there?
Speaker Change: Yeah, thanks John, this is Chad. Look, I think Alan said it on WAMSUTR and we've talked about how powerful that basin is with respect to driving value through our midstream infrastructure. You know, we gather, we process, we move the NGLs through our NGL infrastructure, we fractionate.
Speaker Change: the NGLs, the market, the gas, the NGLs from that basin, and so a very high margin
from a production perspective and
Speaker Change: We had a great partner with Crowhart and really, you know, thankful for what they did to help us consolidate that basin and position it for
Speaker Change: for optimization, but if you look at that basin from an upstream-only perspective, you might not develop it the same way as you would when you think about maximizing the value of the downstream infrastructure, and that's what our strategy is from an upstream perspective. It's all about
Speaker Change: driving value to our core business. And so the consolidation was all about making sure that we can drive the very best decisions from an upstream development perspective to maximize the value of our downstream infrastructure. And so
Speaker Change: You know, we've consolidated the economics now of that basin with our midstream infrastructure and and we'll
Speaker Change: will now work on making sure we've got that optimal development program that takes into account the full value chain. It'll take a bit of time to I think dial that in and at that point we'll determine whether or not we need to be a long-term owner or we can you know then reposition the upstream asset with an upstream counterpart but
Speaker Change: Clearly, the focus is on making sure that that basin gets optimal development to drive value to our downstream assets and then, you know, still in the Haynesville, we've, we've pretty much achieved that. We've said before, we've kind of.
Speaker Change: stepped down the ownership there, as was designed by the original partnership, and GeoSouthern's been a great partner for us in the Haynesville. That's helped drive expansions of our gathering system and helped support our leg expansion project.
Speaker Change: and we have one more expansion project that we're working on for our midstream infrastructure that will add additional value for our Haynesville core business and so that's something we're actively working on now and we would expect to accomplish hopefully this year and at that point I think we're in a good position to
to move further towards disposition of the Hayesville asset.
All right, that's clear. Thanks, Chad. Appreciate the time.
Thank you. One moment for our next question.
Speaker Change: Our next question comes from the line of Keith Stanley of Wolf Research. Your line is now open.
Keith Stanley: Hi, good morning. I wanted to follow up on the five to seven percent long-term EBITDA growth target. Do you expect that to be pretty linear over time or lumpy? And I ask because there's not a lot of major new projects starting up in 2026 and 27, but you do have a lot of balance sheet capacity if you wanted to do more M&A, so just how you're thinking about that.
Yeah, you know, what I would say is we certainly...
Keith Stanley: don't include all of our projects that would be driving 27 growth. Obviously, you've seen the CESI project, which is a powerful growth driver.
Keith Stanley: But we have a lot of other drivers of growth going on within the system, including what we think will have to be a big pull on gas ultimately to keep up with the demand, which will drive some pretty substantial
Keith Stanley: increases in EBITDA on our gathering systems without capital. So the growth we're going to see is going to be pretty powerful.
Keith Stanley: And there's really not a way to balance the market and the demand side without pulling on some of these big gathering systems, and we are extremely well positioned.
Keith Stanley: to see the free cash flows generate off those assets. So actually, I would tell you we're always most excited about growth that comes without capital and I think we're positioned to see a lot of that.
Speaker Change: Thanks. One other follow-up just on the cash taxes. So $300 million you're baking in for this year, I think you said with bonus depreciation extension that would be pretty much eliminated. Just can you give an update on path to being a full cash taxpayer both with and without bonus depreciation legislation?
Speaker Change: Yeah, actually, just to clarify, so it's 300 million dollars in the current AFFO guidance for 2025. Restoration of 100% bonus depreciation would cut that in half.
Speaker Change: And so that would be about 12 cents of AFFO per share. So pretty significant effect. What would be left would be corporate alternative minimum tax, which is also sort of under review. And there's been some proposals that, especially for energy related firms, that maybe we take another look at whether we should be doing that.
Speaker Change: All of that, it would be speculative to assume that any of that makes it through, but it definitely is things that are being discussed right now. So, a lot to take in this year in terms of
Speaker Change: The future, what we've assumed in our long range plan, which I do believe is pretty conservative is just a gradual ramp and our cash tax rate until we get toward the latter years of the decade where we start to become more of a full cash tax.
Speaker Change: pair. I think there's a lot of things that would be affecting that, that trajectory.
You know, if you get 100% bonus depreciation.
Speaker Change: It could be really impactful in this cycle of capital investment that we're looking at when you think about things like some of the behind-the-meter
solutions.
non-regulated
Speaker Change: CapEx projects that would fall under the bonus depreciation. So, the ability to defer taxes, I think, could be really accelerated if we get a change in the bonus depreciation, and then we also see a cycle of strong capital investments, both of which seem like pretty good assumptions. But again, we're being conservative. We're not assuming that the bonus depreciation changes, but being conservative with our long-range plans and maintaining strong dividend coverage.
accounting for that plan.
Thank you.
Thank you. One moment for our next question.
Speaker Change: And our next question comes from the line of Brandon Bingham of Scotiabank. Your line is now open.
Brandon Bingham: Hi, thanks for taking the questions here. Just a couple quick ones. I was wondering if you could maybe provide some incremental detail about the 30 or so projects in the backlog. Just thinking things like composition and that 30 of
Brandon Bingham: project sizes and in-service dates at a high level, and then if you have any thoughts on the likelihood of...
Brandon Bingham: Some of those projects coming to fruition, just if you maybe have like a risk outlook or a probability weighted outlook that you could speak to.
John, you want to take this?
John: Yeah, the 30 Transco projects, I think, cover – we've been providing this kind of a back – look at our backlog now for –
John: for many years, and what we've seen over that time frame is just a steady progress in moving projects through the backlog and into our guidance, so I think it's
John: It's pretty consistent with what you've seen in terms of the performance that we've had over the last
John: many years. You know, we do say here that they do cover a broad range.
John: potential customer bases, industrial power, and LNG facilities. Importantly, this 30 does not include the direct behind-the-meter type solutions.
John: But, you know, we're going to win some of these, we're going to lose some of these, but what you've seen in our track record is a very consistent
John: progress toward moving a substantial number of these from the sales funnel and then into our actual guidance. I don't know, Michael, anything to add? Well, I think you've got it right. Every one of these have a probability weighting on them as well. So these are all specific discrete projects that we've identified.
John: And then we're working to commercialize with customers, and every one of them have a separate entity probability weighting to them.
John: Awesome, awesome. Thanks. And then just real quick, if we could go back to the Hainesville, more looking towards the broader outlook here in the slides you show kind of.
John: expected production growth through I think 2033 and it was just wondering if you could provide some detail around some of the drivers behind it, activity
John: schedules, or just whatever you're seeing baked into that outlook to get that growth and maybe how it compares to what you saw exiting 2024.
John: Yeah, I'd say first of all, when you think about long-term supply growth, I mean, fundamentally we've got to we've got to match demand. So when you look at the amount of growth we're going to see, we're already seeing from LNG ramp, you know, through the end of the decade and even through the mid 2030s, you know, more than doubling over the next decade.
John: Adding, you know, 10 plus BCF by the end of the decade. You've got the increase in power load and demand. You've got the increase in industrial demand across, you know, the, the industry just solving for balancing supply and demand. You're going to need to see.
Significant growth out of the Haynesville
John: That's really where these forecasts, the longer-term forecasts, are derived from.
John: Certainly in the near term, I think we've spoken to what we've seen as far as curtailments and return of activity, and Michael talked about the price signals we might need to see to see a ramp up in growth, but if you just run the expectations for supply to meet the demand, you're going to have to have a pretty significant call on the Haynes bill.
John: And I think generally, you know, we're showing here, not necessarily our own forecast, but I think it's a generally consistent forecast that the Haynesville is going to have to have to bring, you know, around 10 BCF a day of growth over the next.
John: call it, eight years. And even then you're gonna need ongoing growth out of the Permian, a little bit of growth coming out of the Northeast in order to meet that demand. So that's really where that supply forecast comes from.
Got it. Helpful. Thanks.
Thank you. One moment for our next question.
Speaker Change: Our next question comes from the line of Greg Scheer of Tui Brothers. Your line is now open.
Thank you.
Morning. Thanks for fitting me in.
Thank you. Thank you. Thank you.
First question, uh...
Speaker Change: Thoughts about, I mean obviously the data center opportunity is huge, but thoughts about still looking at LNG offtake and partnership opportunities like you had a couple years back with an MOU with Sempro.
Speaker Change: Yeah, this is Chad. We continue to look at those opportunities, you know, I
Speaker Change: hopefully what you're seeing here is that we do, and Alan mentioned that, we've got a great inventory of investment opportunities at really attractive returns, and so we've been very focused on making sure, you know, anything we do in the LNG space will compete with the attractive
Speaker Change: returns we're seeing across our core business. Clearly, you know, we're focused on supplying LNG opportunities. You know, our lead gathering system will deliver gas to Gillis.
Speaker Change: and we continue to look at additional projects to expand deliveries into both the existing
LNG terminals that we serve and also the
Speaker Change: the ones that are coming online. But we continue to look at whether or not it makes sense for us to take a further downstream position on a project or from an offtake perspective. But we remain very disciplined in ensuring that whatever we we might do would fit within the profile of how we want to
Speaker Change: grow the business but also compete with, you know, the attractive opportunities we're seeing across the footprint. So still well within, you know, the fair way of our strategy but has to compete with the attractive opportunities we're seeing across the footprint.
understood that attractive.
Speaker Change: opportunity or a return point as segues into my second question.
Speaker Change: We've all talked for a long time about the challenges of avoiding long-term excess deleveraging. If you're constantly investing at four to six times or better, maybe half levered.
Speaker Change: And as I think about the behind the meter data center opportunity, I'm thinking about, you know, kind of a core kind of directly contracted infrastructure that
Speaker Change: maybe in the eight times, you know, investment to Ibiza area, but when I kind of envisioned the pull that has
Speaker Change: and all of your other spare capacity for related gas services and fuel supply, the all-in returns across the entire enterprise may still be in the mid single digits or better. Am I thinking about that right?
Speaker Change: Yeah, Craig, I would just say, you know, that obviously that's very dependent on where the opportunity is. If we have available capacity that we can utilize. The one thing that's going to be different about the data center load from a typical merchant power facility
Speaker Change: is the very high degree of reliability that's expected on these facilities and so, you know, capacity availability is going to be key.
Speaker Change: in surveying the behind-the-meter and so, to your point, in areas where we have lower cost expansions, we'll see very low multiple
Speaker Change: projects complementing those those projects and in those cases certainly would drive it lower. In other areas you know where we're constrained we wouldn't see we wouldn't see those kind of
Speaker Change: opportunity. So your point is spot on, but it's going to be highly dependent on where exactly the location is. And on these, kind of what I would call the chapter one of these projects, they are moving at such a pace.
Speaker Change: that the location to getting it near where there's existing pipeline capacity you'll probably see less coordination. I think Chapter 2 we're seeing another level of attention on where available resources.
is.
Speaker Change: So, anyway, your point is spot on, but it is going to be highly dependent on where it's
of the project is.
Great, thank you.
Speaker Change: Thank you. This concludes the Q&A portion of the call. I will now turn it back over to Alan Armstrong for closing remarks.
Alan Armstrong: OK, well, thank you all very much. Excited about the performance that the team delivered in 24, particularly given the.
the backdrop of super low gas prices.
and very excited about the...
Alan Armstrong: continued great execution on projects that we've been enjoying and we're continuing to see improvements on that that are driving
Alan Armstrong: very high return for us, even in a lot of cases, better than what our initial expectations have been. So, great execution by the team and our strategy has us in a very enviable position.
Alan Armstrong: that we're excited to deliver the benefits of that to our shareholders, so thank you for joining us.
Alan Armstrong: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.