Q3 2025 Williams Companies Inc Earnings Call

Good day, everyone and welcome to the Williams third quarter 2025 earnings conference call.

Today's conference is being recorded.

at this time for opening remarks and introductions, I would like to turn the call over to

Excuse me, is Mr. Danilo Juvane, Vice President of Investor Relations and ESG, available? Please go ahead.

Good morning everyone. Thank you for joining us and for your interest in the Williams companies.

Yesterday afternoon, we released our earnings press release, and the presentation that a president and CEO, Chad zammer, and our Chief Financial Officer. John Porter will speak to this morning

Also joining us on the call today are Larry Larson. Our chief operating officer. Blaine Wilson, our general counsel and Rob Wingo our Executive Vice President of corporate strategic development.

In our presentation materials, you'll find a disclaimer related to the statements.

This is Kramer is important and integral to our remarks and it should review it.

Also included in the presentation, materials are non-gaap measures that we reconciled to generally accepted accounting principles.

And these reconciliation schedules appear at the back of the day's presentation materials. So with that altering over to chat,

thanks to Neil and thank you for joining us today. We're excited to share the the strong progress we've made and the tremendous opportunities ahead for Williams. So let's begin on. Slide 2

For our core business. With delivered expansion projects, while extending our backlog of highly attractive, new opportunities that will drive ongoing growth

We recently placed Northwest pipeline Stanfield, South project in service and completed Transco Alabama, Georgia connector and Commonwealth energy connector expansion projects.

Importantly onr. Go we are increasing pipeline capacity by nearly 200,000 deck of therms per day, which will provide access to additional natural gas supplies to increase reliability and affordability during the upcoming heating season.

We've also recently completed shanno and Salamanca, 2 important, deep water expansion projects. And in the hanesville, our most recent expansion was brought online, which increases Basin Gathering and takeaway capacity as we prepare for the rapid growth in LNG exports. Alongside power demand growth within the Gulf Coast in southeast regions.

We recently announced 2, transmission projects, the Wharton West expansion on Transco in South Texas and the Green River West expansion on Mountain. West in Southwest Wyoming. Additionally we signed customer agreements for our 10 DCF expansion at our Pine Prairie storage facility in Louisiana,

These Milestones demonstrate our ongoing ability to advance projects across our Nationwide transmission and storage footprint.

Alongside the sale of the Upstream asset. We announced a strategic partnership. With Woodside energy, whereby Williams will build and operate line 200, a 3.1 BCF, a day pipeline, that is fully permitted and fully supported would take her pay 20 year, customer contracts, line, 200 will connect woodside's, Louisiana, LG terminal to multiple systems including Transco and leg.

We'll also be taking a 10% interest in the Louisiana LG terminal, which is a fully contracted taker, pay LNG facility.

as part of the ownership in Louisiana, LG Williams will commit to a 1 and a half million tonne per year LNG offtake, which is designed to provide International Market, access for Williams, producer customers,

Together Williams and Woodside will leverage our sequent Energy Management, platform to manage natural gas supply for the LNG facility.

And we expect to invest approximately 1.9 billion dollars in capital into the combined Pipeline and LG terminal projects, which will position our Core Business to further grow, AS Global LG demand continues to ramp and pull volumes through our integrated value chain.

It's important to note that these Investments provide an integrated return that is on par with our targeted Capital Investments. And those returns are driven primarily by fixed fee, fully contracted cash, flows with 20-year contract, 10, tenants. So in summary these transactions allow us to high-grade from Upstream. Cash flows into high-quality Pipeline and LNG terminal cash. Flows supported by 20-year taker pay contracts

And while there's been much focus on the LG portion of this transaction, I do want to make 1 Thing, clear. This is an integrated platform consistent with our disciplined Capital, allocation approach, and like everything we do, we are focused on enhancing the value of and the opportunity to grow our core infrastructure business. And this is not a speculative entry into the LG space.

Finally I'll close by, highlighting our power, Innovation business, that continues to grow and enhance the reach and value of our core natural gas infrastructure in late September. We announced our planned investment of approximately 3.1 billion dollars into 2 additional projects to continue to deliver speed to Market Solutions in Grid, constrained markets.

these power Innovation projects are anticipated to be completed in the first half of 2027 and are backed by 10 year agreements, with an option for our customer to extend

And with these agreements total power Innovation committed Capital. Now stands at approximately 5.1 billion dollars at a targeted 5 times ibid do build multiple.

Overall, these recent accomplishments continue to underscore our commitment to deliver infrastructure solutions, that meet the nation's growing need for clean, reliable and affordable energy all while keeping, a laser focus on investing in a manner that will create industry-leading shareholder value.

And with that, I'll now turn it over to John for a deeper dive into the financials.

Walking. Now, from last year's 1.7 billion to this year's 1.92 billion. We start with our transmission power and golf business, which improved 117 million or 14% setting. Another all-time record due to higher revenues from expansion projects,

At Transco, we had increases from Regional energy, access Southside, reliability enhancement, Texas to Louisiana, Energy pathway and the southeast energy connector projects. Also at transcode, we have the benefit of the higher rates coming from the conclusion of the rate case.

We also continue to see growth from our storage businesses on higher renewal rates.

In the Gulf, we sell a contributions from the whale project. Our Discovery business, including the shenandoa project which started up in July and the ballet more project as well.

Third quarter, golf Gathering volumes were up over 36% versus prior year and NGL production was up about 78%.

Next our Northeast GMP business. Improved 21 million primarily on higher revenues, including higher Gathering and processing rates, but also with higher volumes primarily in northeast Pennsylvania.

overall volumes ticked up about 6% over the third quarter of 24,

in the west, we were 37 million or 11% higher driven by initial contributions from the Louisiana Energy Gateway project that came online in August, but also from higher Haynesville volumes and growth in the DJ Basin including the Rimrock acquisition

The West Was negatively impacted by step down in our minimum volume commitments at eagleford.

on the volume front overall volume grew about 14% driven by growth in the hanesville including volumes from the saber acquisition acquired in late, June 2025

Our sequent, marketing business was up 7 million where contributions from the cogentrix acquisition offset weaker realizations in the Gas marketing business.

And then finally our other segments, which includes our Upstream business was up about 35 million including higher Upstream volumes, partially offset by unfavorable price. Impacts from significantly lower oil, prices versus prior year.

So that gets you to the 1.9 billion of ebit off for third, quarter, 25 or 13% growth.

Before I hand it back to Chad, I'll speak briefly to our current 2025 Financial guidance.

No change to our adjusted Abid dog. Guidance with the midpoint of 7.75 billion or any of our other earnings related metrics, so still expecting 9% growth in adjusted, evida over 24, as well as a 9% 5-year, kegger going back to 2020.

Additionally, achieving our midpoint EPS guidance of 2.0 will also produce 9% growth over, 24 and cap, and impressive 14% 5 year. Kegger

Regarding full year 2025 growth capex, we have shifted the range upward to $3.95 billion to $4.25 billion. This range now encompasses the two additional power innovation projects and the Wellhead to Water LNG investments that we announced during October. Leverage guidance remains at approximately 3.7 times.

So again, 25 continues to Trend toward meeting or beating our adjusted Eva dot guidance, even after raising it, accumulative 350 million.

Our backlog of fully contracted projects, gives us confidence and continued industry-leading growth and we are excited to present more information at our analyst day next February. And with that, I'll turn it back over to Chad. Thanks John. Uh, before we move the Q&A, I want to take a moment to recognize every 1 of our Williams employees, and also our investors that have and continue to support the company.

When we deliver our numbers for 2025, we will cap an incredible period of growth performance and shareholder value creation. As John noted, we expect to deliver a 5-year ebitda compound annual growth rate of approximately 9% and 5 year. EPS compound annual growth rate of approximately 14%. The team has delivered industry-leading earnings growth over the past 5 years and we see an even more exciting chapter ahead.

We are thoughtfully steering into the next 5 years, with a rock solid balance sheet, a strong Foundation of core assets. A focused and motivated team and an even stronger. Visibility into earnings growth and cash flow generation than we had during the past 5 years, you can expect us to continue to focus on a disciplined approach to Capital, allocation, which during an exciting time of company strengths and Market opportunity gives us confidence in delivering, even more compelling returns for shareholders.

So please stay tuned as those details come out.

At this time, we will conduct a question.

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Please limit yourself to 1 question and 1 follow-up.

Please hold that while we compile our Q&A roster.

Our first question today comes from Jeremy ton of JP Morgan Securities. Your line is open.

Hi, good morning.

Hey, Jeremy.

Um thanks for the detail today. Just want to um dive in a little bit more if you get into the power Innovation side. And I was just wondering if you could provide us a refresh with regards to um, how you see the opportunity set at this point across your footprint. Uh, and what would, how would you describe? I guess the pace of conversation conversations that are still in urgency and speed to Market or just any other color would be great.

Yeah, thanks Jeremy. Um, look, I'd say we continue to see very, very robust, um, engagement and interest in both speed to Market. But also just long-term need for uh, Power for data centers. And, you know, as we mentioned, um, during the prepared remarks, you know, we've upsized our backlog of of commercialized projects to over 5 billion dollars of investment. You know, we've talked about the 6 gigawatts of backlog that we're pursuing some of which we've turned now into into actual projects. But we continue to see that backlog strengthen and you know, as we've discussed our our goal is to continue to layer in projects in a thoughtful way that manages the balance sheet and capacity that we have to invest alongside the very highest quality counterparties and project opportunities. And you know I think I I just say we continue to see a very robust pipeline of opportunities that we think extends throughout the end of the decade. And

And Beyond and so you know teams continuing to uh, have very robust discussions. And we do expect additional projects uh to to come together along the along the way.

And and, you know, just to your question about Footprints. We also do see the the geography that we operate across is diverse and Broad and uh, allows us to, to offer Solutions in, you know, a lot of different areas and we are seeing conversations across the entire kind of footprint. I will say this that, you know, in there's a reason why, you know, a lot of the projects are built in the states that, um, you know, are are being developed. Uh, we'll probably talk at some point on the call, but, you know, we think about places like New England and the Northeast where we're trying to develop Nessie and Constitution. I think those projects are really critical to open up the Economic Opportunity of those regions. You'll see the primary power, Innovation projects, not just for us, but I'd say across the country, targeted in those states where you can get affordable, reliable energy and you can build infrastructure. And so we we continue to be very focused on trying to open up additional markets where, you know, unfortunately it's been difficult to build but we're seeing hopeful signs that we'll get back to

That building.

Got it. That's helpful. Thanks and um just want to turn if I could to the recent LNG deal announcement there. I was wondering if you might be able to expand a bit more I guess on the strategy, uh, industrial logic to this uh, you know, this deal with the full, uh, well, head to water, um, you know, uh, connectivity here. And and was curious, I guess. As far as the offtake capacity is concerned at the LG facility, if, um, that's something you intend to keep, for yourself, or contract out to

Customers are just walking through you know kind of where that strategy stands post. This deal would be helpful.

Always seeking to connect our customers to the very best end, use markets. And so you think about the, the power generation, the utilities, the industrial loads that we serve, um, connecting to LNG, markets is important to enable that, um, that ultimate destination for our customers to, to reach. And so, you know, it's, it's opening up a window with a very small. You know, investment into, uh, an LG facility. We get the benefit of building a strategically important Pipeline and we'll operate line, 200, which connects to Transco leg and several other pipelines. Uh, Ed Gillis

We will also you know as you saw on our our announcement we're transitioning our Upstream ownership to an international LNG buyer. And J is 1 of the largest producers of of energy in Japan and a large buyer of of LNG. And so we're putting together a value chain through which we expect to continue to be able to attract both customers that want to reach International markets. Um, and and in doing so continue to grow our gathering system. Our Transco footprint line, 200 will be an important extension into into an LG terminal, but also our Gulf Coast storage assets that will connect to, you know, the LG complex. And so, you know, long way of saying this is a, a strategic transaction that just enhances our ability to pull more, uh, business through our core infrastructure. Uh, you know, the question about the offtake. It's a, it's a very small, um, percentage of our overall

Business less than 1% of our earnings and we do expect to offer that as a window into International markets to our producer customers, you know, nothing that we've kind of pre-wired at this stage, but you can think of us as taking that position to offer access to International markets. For those producer, customers that can't access it on their own either due to scale or, you know, uh, balance sheet capacity but that that's the strategy. And so, um, you know, don't take, I mentioned in the prepared remarks, don't take this as a sign that we're trying to take International uh price exposure, that's not the strategy here. We are opening up a window into International markets so that we can offer additional services to our customers.

Got it. That's very helpful. Thank you. I'll leave it there.

Thanks, Jeremy.

All right. Next question.

From Pranith, Satish with Wells Fargo, your line is open.

Thanks, good morning. Um, maybe on the, on the power side can you give us a sense of of where you are in the procurement cycle for turbines? Um so you have FID power projects. Now the the 5 billion you mentioned that come into service through mid 2027. Um have you started placing orders or put yourself in the queue for long lead time items for the second half of 2027 or into 2028. I guess kind of how far does that go um and then at this point could we see more projects um get slotted in?

for uh second half 27 deliveries or the conversations kind of Shifting towards 2028 now, for new power projects,

Yeah, thanks on the ladder question, I'd say, starting to layer in a little bit later, now, into the into the plan. And so likely, you know later, 27 and now into 28, for additional projects that we see, uh, on on the dashboard. And then with respect to equipment, you know, we'll have more to share at, uh, our February event. But we we feel very confident that we positioned ourselves with our, uh, strategic Partners, uh, you know, really across multiple different equipment, service and service providers, to be able to be ahead of, kind of the needs that we we see frankly now, um, almost through the end of the decade. And so, we feel really good about where we stand again. Um, we'll share more, you know, in February, but we continue to stay ahead of the project needs. And so, I feel really good about where we stand today.

Got it. Thank you. Um and then uh just on on the project side so power Express. Um looks like the scope was revised down again, a little bit to 785, uh, million cubic feet per day from 689. Uh, I think that's the second time now. So can you just walk through? What's driving that change? Is it tight the permitting commitments or just broader Dynamics and and do you think um, and and how should we think about the return? Uh, and, uh,

Um, and the in-service date of of that project with this new scope.

Uh, Power Generation needs and the scope of their facilities and so, uh, really just kind of making sure that we're optimizing our design and, and really aligning with the customer needs. And so we've got, uh, contracts in place now for the, the full 689 and, uh, it's from a return standpoint, just because of the ability for us to adjust, looping and compression. The returns are still in the same, uh, range as we had in the previous Scopes. No real big change on that front from a scoping standpoint. So, uh, right now we don't see any major shifts in the scope that we have right now. Uh, we'll be planted and move forward. Probably start the, the kind of the Burke process next year. Uh, as you mentioned there, there's opportunity to go bigger on the project if uh demand materializes. But right now it's really just been working with the customers as they finalize their scope and demand needs. Yeah. And maybe I just add, you know,

You know, with these projects, we have to finetune both timing and kind of customer Readiness you know, Larry Rob. And I were on the road last week and we went to the Pacific Northwest, saw the utilities and the PAC Northwest, and we also saw the utility customers, several of our utility customers along the Southeastern Eastern Seaboard and every 1 of the customers, uh, highlighted that they need more gas and they need more pipeline capacity. So we see a very robust need, uh, across really the entire footprint that we operate. We talked about it many times. You know, natural gas man has has far outpaced pipeline capacity development over the last 10 years. And we see that problem just

Uh, exacerbating over the next over the next decade, as we continue to grow demand and, and lag in, keeping up with infrastructure.

Got it. Thank you.

Thank you for your question.

Our next question comes from Spiro. Denise Dunis from City, your line is open.

I separator uh good morning team. Um wanted to go back to the growth Outlook and and capital spending. Um sounds like the pace of commercialization is is increased here in the back half and from what we can tell you're you're active in maybe at least 6 states on the power Innovation side. So just curious based on what you see coming down. The project pipeline is this sort of 4 billion dollars of capex per year on the growth side that the right target for the next few years. And and maybe John, how do you think about the balance sheet, ability to sustain those levels and, and maybe even higher?

Yeah thanks. Thanks bro, this is this is John Porter. You know, as we talked about in the past in our long range, forecasting process. We've we've seen now for a number of years, a real inflection point coming after 2025, where the balance sheet deal leveraging was going to slip below, our targeted, leverage range, or 3 and a half to 4 times. You know, that long range forecasting, what we would typically uh be looking for were or, you know, High returning, organic investment opportunities, that could fill that balance sheet capacity. But I would say prior to the last, uh, year,

Or so there was probably a little bit more uncertainty about where those opportunity or the the magnitude of those opportunities and whether they were going to actually be able to fill what was emerging to be, a very significant amount of balance sheet capacity that we saw coming in, in 26 and Beyond. And so what I would say, is what we've seen really as we went through the long range forecasting process. This summer was, was something I think very interesting we saw that instead of, you know, sort of hypothesizing about the level of of projects that we would, we would have to go find was strong, organic investment opportunities to fill that capacity. We started to really see line of sight into a really nice layering of high returning, organic investment opportunities, that that were coming to fruition with what we've announced this year. Um, as we look into the future, I think we have a lot of confidence that we're going to continue to see those High returning. Strategic organic Investments that are filling up. That balance sheet capacity, staying in that,

3 and a half to 4 times, uh, leverage target range, and so, and a nice side benefit. Of course, has been the effect that that these non-regulated power Innovation projects are going to have on our cash tax profile as well, which we, we as we look at into the model. Now we see very significant cash tax deferrals. Um, you know, through the kind of through the next many years and so, I would say, overall we're we're seeing a really nice Dynamic here. Where

For all of the transmission projects that we see coming over the next several years, which we expect that to be a steady flow of transmission projects. Alongside these power Innovation projects but overall, just a lot of excitement about the investment opportunities that we have in these high returning projects and feeling like the balance sheet is, is well, situated to, for this, uh, for this very unique opportunity set.

Great uh cell phone call John, thanks for that. Uh, Second question, maybe Switching gears here a little bit to the utility and power landscape uh, election day today. Um, and I know how utility bills are are a big Topic in a lot of States, especially here in the Northeast, uh, at the same time. You're also seeing some growing opposition to Data Centers and the impact on on consumer electric bill. So, uh, Curious how you guys are thinking about the impact to Williams, from both of those factors, and if it could get you to maybe tie in a status update on on Nessie and Constitution and how much you think getting past this election day, could maybe open up some progress there?

Yeah, thanks bro. Those are I think really important topics and you know, the first thing I would say how it how it impacts us is, you know, we really do need to shine a spotlight on the fact that natural gas is, our company is our country's uh, affordability superpower. You know, when we produce natural gas in the US on an energy equivalent basis, it's it's like 25 to 50 cents per gallon of gasoline on an energy equivalent basis. Like that's how affordable we can produce natural gas.

The United States. And we know that any Market in the US that has been able to manage energy, affordability, which ultimately translates to overall. Affordability has done that by leveraging, low-cost abundant reliable natural gas. And so, I think that we continue to see, you know, we mentioned the trip, we took last week to see many of our utility customers. They all recognize that natural gas is our superpower with respect to trying to manage affordability, um, across really the entire footprint. And so I'm hopeful that you know, as as this is a topic that's becoming much more, you know, relevant to to elections and and to the just the narrative, across the country that we continue to see more and more support for natural, gas infrastructure. You know, we get uh through today and I'll let Lane maybe speak to it. I'm hopeful that we see progress on Nessie. It's it's moving you know, faster than Constitution. Um but Lane maybe any thoughts you have on kind of the landscape as you see it. Yeah, I I'm

Fairly confident that the elections. Today won't impact you, and that's your Constitution and I think we're in good shape on Nessie and

Uh, constitutional will continue to work on, you know, we haven't really had so much capital in the Ether projects, but we're trying to put them in a position to where, when we get our permits, we'll be ready to go. And as Chad mentioned, Nessie is on a quicker time frame. We thank them, Constitution.

Great, I'll leave it there for today. Thank you, gentlemen.

Moon Smith with Jeffrey's. Your line is open.

Hey Chad John, good morning. Thank you to the whole team, appreciate the opportunity.

Um,

maybe to pick up on the good morning, maybe to pick up on the higher level Point here. There's no mention of the 5 to 7 long-term growth Outlook Inn in the deck here and maybe that's for a reason here. How should we interpret that removal? Um and then specifically you know it's notable to your your targeting a 20 plus percent raic. How do you think about a what this says about the long-term growth for Outlook again not to preempt too much uh the uh, analyst day forthcoming and then separately, um, how would you think about returns here Beyond just the power Innovation sector here. Um, any comments implicitly? What you're saying here? Just the highest levels about the build multiples.

Yeah, maybe I'll give you the teaser trailer for our upcoming, um, analyst day. But, you know, John and I have been been kind of highlighting this over the last year and, and really even even ahead of that. But if you look at, you know, our ability to invest in high return projects, within the balance sheet capacity that we have. And you think about the Last 5 Years, in our ability to deliver a 9% growth tag or over that 5 year period, I mean that's phenomenal growth. Um, but if you think about the next 5 years and you look at the model,

Then over the last 5 years. So, you know, not going to put a a number on that yet, but we're going to try to provide a bit more clarity when we come together in February on what we think that Runway looks like, um, at least for the next couple of years and then give some overall I think directional guidance. But if you just take the, you know, the balance sheet capacity, the math, around our ability to invest in high return projects. Uh you can see pretty clearly that we've got an incredible opportunity to grow what I think, will be industry-leading, uh, you know, results over the next 5 years and Beyond

great. Yeah, so guidance over a couple of years and then maybe directional for a longer term view on things. That's, that's excellent. Um, and then, if if I can't just pick a little bit more and power power Innovation as you might expect from me, um, if if you can, can you talk a little bit about where you see this going? Are we thinking more about like upsizing Socrates and then upsizing these others Apollo and Aquilla at this point, or how are you thinking about in terms of next steps? I know you elaborated with Jeremy earlier here, a little bit, but is it about expanding existing sites? Adding more, uh, to to Total duration, and ramp, or do you think this is more about just finding new geographies and New Opportunities out right here? Greenfield,

Yeah, I think the simple answer is it's a combination of both. Uh, you know, we're, you know, a lot of the, the projects that we're developing are in locations, where if we can continue to add additional capacity, it makes a lot of sense to do that. And so, you know, we you will see, I think, um, Investments made where we want to scale over time. These are very large facilities with very large Investments being made, and so scaling over time will be. Uh, I think a, a clear part of the strategy we've already done that with Socrates, you know, we, we started at, um, 1.6 billion of capital that's been upsized to 2 billion. That's an expansion of scope and and scale, and we expect to see that at other sites, where we, um, can kind of get speed to Market as the ability to get a project up and running, but then see scaling over time. These are these are intended by our customers to be multi-decade Investments that will, that will grow over time. And so we, we, I think we'll continue to see scaling of these, uh, facilities, but also,

We also continue to see the expansion of the other parts of our geography. So it's going to be a combination of both.

Excellent, I'll leave it there guys. Thank you very much. All the best speak soon.

Thanks.

Hi, good morning. Um, another one on the Wellhead to Water announcement: is it possible for you to disclose even directionally? I guess what share of the EBITDA that you're projecting for the project is contracted, take-or-pay, um, either as today or kind of in your eventual vision.

Yeah, and I think this is something I want to make sure everyone picks up really clearly. I mean, it is a fully contracted taker Pei pipeline project. So we're, you know, 80% of the investment on the pipeline project and that is 100% taker pay fully contracted and the way the LNG terminal is structured, it is fully contracted 100% taker pay, so our relatively small investment, you know, 10% investment. But it's a large project that is, uh, in into a project that has 100% of the capacity, uh, subscribed by with taker, pay contracts. And so, you know, the only portion of the investment, um, that is not take or pay is the LNG offtake, which is a very small. I mentioned it. You know, if you think about our sale of the Upstream, um, that was, you know, more than 1% of our, our earnings, the offtake represents less than 1, 1% of our earnings, and we expect to be able to use that as a tool to attract additional customers through our

Rampid LNG. But might also mention that we also do have some Capital protection on the construction side of the LNG facility as well. Can't go into a lot of the details there, but we did protect ourselves on the overrun side of the uh liquefaction facility buildout.

That makes sense. That's super helpful. And then, I guess just kind of a follow-up on that same theme. Um, the the Gil is to LNG pipeline. I think it's 3.1 bcfd, uh, which you said is, is taker pay. That's that's obviously quite a bit bigger than leg. Um, do you envision that Williams will kind of source all of the 3.1 from your, your own, uh, GMP or, and will you have to use kind of third-party pipes could like be expanded more.

Yeah no. Uh this is Rob Wingo it. It's really going to be a combination of gas coming off of our legs system off of our transit system and really other parts of the market.

uh, the way that it works is um, you know, we're we're going to handle the short term kind of 1 year type arrangements and Woodside is handled the long-term uh,

Setups for the supply.

So between the 2 of us. Um you know, we're really going to be sourcing gas off the main pipelines that come into that area.

Got it. Um, I'll leave it there. Thank you.

Thank you.

Our next question is from Keith Stanley with wolf research, your line is open.

Hi, good morning. I had 2 follow-ups. Uh similar topics on on the power strategy. So Chad when you say you've gotten ahead of the equipment needs and turbine needs almost through the end of the decade. I, I want to confirm the message is you think you can keep going at this type of cadence of power projects from a supply chain perspective, through 2030 at this point?

Yeah, that's right. Keith. I mean we We are continuing to work with customers to make sure that we can layer in projects through the end of the decade and that includes with them and our equipment suppliers to have confidence in our ability to deliver the capacity.

Okay, uh great. And then second 1, not not to be the dead horse, but Louisiana LNG interest.

When you say it's a take your pay contract on the facility itself. Fully told out is that subscribed to Woodside directly just cuz I think the market perception is that LNG, terminal is largely uncontracted. So you just talk to how you're fully contracted on your interest.

Yeah. Yeah, it is a fully contracted LNG terminal. I mean, you know, you think about Stone Peak coming in for a 40 Cent investment alongside us. I mean, that's because the facility is fully supported by take or pay contracts. The majority of those are Woodside. Um, we obviously are a portion of that will be paying a toll for our, for our offtake, but we'll be paying the owners of the facility. So a good portion of that toll comes back to us as tolling revenues. That's 1 of the nice things about the equity ownership model. Uh, and you know, whether or not Woodside decide, I think they talked about further effectively selling down their interest. But they are, um, the off-taker for, you know, the the taker pay. And so yes, there are investment grade contracts, take or pay for 100% of the capacity at the facility.

Very clear. Thank you.

Our next question comes from El, virus Scott, with RBC Capital markets, your line is open.

Hey, uh, good morning. I just wanted to follow up on the power innovation. Um, specifically about that number, the 6 gigawatts that you have in your presentation. Can you talk a little bit about that? Is that your total addressable market, or can you do more than the 6 gigawatts? Like, what are the gating factors to doing more than that?

Yeah, thanks. I I'd say, you know, there is definitely more Market, uh, than that.

To run all of that through the, the analysis that feels like a very manageable, uh, level of investment. I would say, also in the team's done, an amazing job, we also want to make sure that we can deliver and so we're not going to take on more projects than we feel confident that we can deliver. And so we are Staffing up and we're making sure that we can take good care of these customers. Because these are very, very important facilities. And you know, we expect to be a critical uh solution and service provider for these new uh, hyperscalers for, you know, decades to come. And so it's all kind of a balance between those various factors that get us to that number

Great, thanks. And then, um, just my follow-up question is, is on the, on the transmission side. Um what's the ability to continue to expand transfill and of of that 14 billion dollars of project opportunities? What portion represents? Um, Transco and how competitive are those projects, how much do you think Williams can can reasonably win?

Yeah, this this is Larry thanks for the question. Uh yeah as far as the expandability of Transco at this point, I mean it's it's fairly unlimited as we continue to prove, we find more and more capacity expansion options. As we have new Supply coming to different parts of the system that creates new opportunities. And so, as you think about the, the project backlog, it continues to grow. As we see demand from our customers across the footprint, uh, where you see it now,

That's also in the Pacific Northwest and the Rockies. But I would say the majority of the, uh, the, the backlog that you see that we've highlighted is along the Transco cord, where we've just seen really robust demand across the southeast and the gulf regions. And so I'd say you'll continue to see a lot of the project focused in that space, But it's nice to be able to start layering on opportunities out west. As we're starting to see that focus on affordability and reliability as well as just kind of the, the power generation demand growth that's happening across our footprint. And so uh, it's split but I would say majority is on Transco. Yeah. And and and I think you can think about Transco, you know, it's like the largest uh Highway, you know, system in our country with respect to natural gas. And it's got the highest speed limit in some of the lowest tolls. And so for customers we can create a lot of flexibility and a lot of solutions. It's a lot easier to add Lanes to a large existing highway system than it is to, you know, turn small roads into larger highways or build Green Field, where they don't.

Exist. And so Transco remains, you know, we're blessed to have it as an asset remains incredibly competitive and so we do expect to win more than our fair share of opportunities along that corridor.

Great, thank you very much.

Thank you.

The next question comes from Amit sacar with BMO Capital markets, your line is open.

Hi uh, good morning, thanks for taking my questions and I hope this is not redundant. I just wanted to clarify something Chad said earlier, but um,

Would our understanding is that Woodside is taking 8 million tons, um, for from the LNG, offtake. And then Universe taking 1 in addition to your 1 and a half. I think it leaves about 6 million tons per Anam. That hasn't been, I guess, at least in the public domain kind of disclosed part. Are you saying that, that 6 million tons per item has now been fully contracted? And is taker pay or is Woodside? Uh, I guess kind of going to be on the hook for that and I've got 1 more follow up. Yeah, look that

Yeah, I I I don't want to speak entirely for Woodside but I would say that Woodside today holds the equity and the offtake for um the 14 tons. And I think they have expressed a willingness or an interest in selling down additional equity which would also mean um, selling with that the offtake obligation. But today, when you look at the Standalone LNG terminal, it is 100% contracted. Um and you know that is primarily Woodside as the off-taker which, you know, is a very credible investment grade International LG.

Uh, company, and we feel really good about you think about having jera on the production side of our hanesville footprint? You think about all the infrastructure we have and in between the hanesville and what will be this terminal? And you've got a super high quality investment grade counterparty in Woodside, um, as the LNG terminal, operator and off Taker, and if they do, um, you know, uh, reduce their interests and uptake. Um, you know, we, we, we would expect that to again, be be with high quality counterparts. But today, 100% contracted with Woodside and us

Of kind of your equipment. Um, Supply partners. Are you availing yourself of any other sorts of things, kind of beyond the equipment that you did with Socrates such as fuel cells? Or anything? Kind of maybe a little bit more? Uh, a non-traditional thanks.

Um, I I'd say that generally we're sticking to our knitting and and to where we have strengths and expertise. I think we have mentioned that we've added some batteries to to our scope of of work. But for the most part, we're staying focused on generating power with natural gas.

Turbines. And so you know that'll continue to be the vast majority. We are exploring different Technologies in partnership with our our customers but it is a very small uh, amount of the overall investment and um and projects

Great, thank you so much.

Thank you.

The next question comes from Manav Gupta with UBS. Your line is open.

Uh, good morning. I just wanted to go back a little bit to Green River, West expansion. Could you help us remind the strategic rationale behind it? And how does that tie to your footprint and Mountain Web, if you could talk about that?

Yeah, this is Larry, I'll, I'll answer that question. So, yeah, it's just another, uh, expansion on our Mountain West over at thrust pipeline system serving. Uh, industrial load growth that we're seeing in Southwest Wyoming kind of around industrial and Mining. And so, uh, just another, I think strong tide of Supply in the Rockies and continued growth. We're seeing in that Mountain West Region both from a power generation and Industrial load.

Thank you and a quick follow-up. Can you even go back to cogentrix and talk a little bit about how that investment is sharing any Synergy surprises from that investment?

Yeah, I'd say on, on track and still, you know, early days, I mean, that team. I've gotten to spend a little bit of time with them. I think Rob's going to be joining an upcoming board meeting, um, so still early days but definitely uh getting to to see a lot with respect to our footprint and just as a reminder you know, they operate uh power plants along, the Transco footprint in both pjm New England, ISO and and in urot, and so nothing. You know, to, to speak to beyond the, the investment is on track. Delivering the the numbers that we expected this year and, um, and early signs are that we think it's going to be a great relationship and certainly, uh, benefiting from having that insight into that market.

Thank you so much for taking my questions.

Good morning, thank you for taking my questions. Um, maybe putting a finer point on the, uh, um, ability to source and Supply, uh, gas into the book of action facility and what it means for your base infrastructure assets, can you quantify at this part? What is the potential of what is your target as far as an uplift in utilization or underwriting um additional expansion in your pipeline assistant to Gillis and Transco leg and so on, um, on the heels of this deal,

I'll start and let Rob, add any color. I I think you know, important just to note that the first and foremost need for the the project is to make sure there's a reliable supply of gas. And you know, with sequin, you know, 1 of the largest natural gas, uh, platforms marketing Platforms in the country. It gives us a lot of confidence that we can make sure that the pipeline is going to be full and ultimately that the LNG terminal is going to have reliable natural gas supply. And so, you know, the benefit of that is we are going to be going out across our our footprint and across other pipelines where sequent markets and we're going to be making sure that we can find the very best lowest cost Supply and most reliable volume.

And and moving natural gas the country, but that, that will be the, the role that we will play with sequin, um, and and Woodside, and Rob on painting that. No, I mean there's no doubt that, uh, being the face to the market with sequin is going to be, you know, a huge benefit to our to our um Core Business, our ministering business. The other thing I'll mention is that we're 1 of the changes that we made from the original project scope.

Is the the 3.1 PCF today pipeline is not going to be bidirectional.

And that'll create optimization opportunities and additional marketing opportunities that we did not include in our base case. So, I think that combined with being the front face to the market, we're going to see some synergies there that we did not include in our base case economics.

That is interesting. Thank you. And would you put um provide an update on the production activity levels um in the hanesville in the Northeast and what is your outlook on volumes across your assets into 2026?

Yeah. Hi, this is Larry. I'll take that one. So, yeah, we've seen activity levels pick up in the Haynesville as we expected. I mean, the demand is materializing, and our producers are responding to that. So, we've seen activity in the Haynesville pick up over the course of this year. We don't necessarily see that slowing down as we go into 2026. It's still a little early; a lot of our producers, as you know, are working through kind of their plans for 2026. But with the...

The amount of demand that's coming online. We don't see activity slowing down. Uh, the Northeast we've seen Pockets where we've had some growth and pick up over the course of this year and some areas where it's been a little bit more more flat. Uh, that's a little bit more of a, a pricing challenge during some of the, the the shoulder months, summer months up in the Northeast that slowed down some of the activity. But we're starting to see that pick up again as prices are starting to rebound and, uh, although it's still early for kind of 2026 forecasts. We do see an expect to to see an uptick in in volumes in the Northeast as well, but it'll be mixed across customers as well as some of the different uh, Gathering processing facilities. We have where uh we may see some that are growing and some that might be a little bit more flat depending on the position or kind of gas prices and Outlook plans for next year.

Thank you for your question.

Our next question is from Robert cataler with CIBC Capital markets. Your line is open.

Hey, good morning. Uh, I just wanted to follow up on the, um, the lmg opportunity, which sounds like it might be a good opportunity for both yourself and your producer or customers. Uh, specifically. I wanted to address the fees and what you see as a, um, uh, contract tender there. So just on the feed side, um, do you see this as a more straightforward fee for service, uh, type contract structure, or is there an opportunity maybe to have some linked?

To some of the LLG pricing benchmarks.

and then on the um, contract tener, given the, you know, how you split the sourcing

um,

For Your Capacity versus um, wood sides. How do you see the contract tener working out there?

Yeah, on on the fee structure, I guess what I'd say is, you know, generally, we we have seen from producer customers in interest in accessing International markets, where we would just like we do with sequin basically provide um, the the connectivity for a fixed margin. And so, you know, initially that that is open capacity that we have where we, we we've got um, you know, a 1 and a half million tons of uptake. It's only around 225 million, cubic feet a day of gas. And so it's not a very large uh, gas position from an LG octate perspective. But you know, we will look to um, to to, you know, monetize that Pro primarily through fixed margin, uh, transactions, which is what we do on our sequin platform, you know, each and every day. So that that's how I think about kind of the off-take there. And um, with respect to tenor, I'm not sure. I totally understand the question. I mean, these are 20 year contracts, uh, on, you know, the pipeline and

And on the um, on the LG facility, in 20-year, offtake, for the LG. Am I getting your question right there?

It was with respect to the smaller customers. As you mentioned, it's not a um, huge gas position. So it just seems like, um, you're probably accumulating volumes from a number of smaller players, which you know, seems to suggest maybe no longer long term contract portfolio. Um, for you to take responsibility. Yeah.

And we've talked to producer customers, we do think that it's likely that you supply an LG terminal and an LG uptake position with various different contract teners. Now you tend to get compensated for um, you know, those different teners so set another way you get a higher margin for a shorter tenor, um, and a smaller margin for a longer tenor. And so, I do think that those are going to be the kinds of opportunities that we're going to explore, but generally speaking, you know, we'll be looking to build both a portfolio of gas supply for the terminal and also a portfolio of supply for our update position.

Okay, great makes sense to me. Thank you.

Thank you.

Our next question is from sanil Sabal with Seaport Global. Your line is open.

Yeah. Hi, good morning and thanks for the time. Uh, so, a lot of clarifications on the LG I was curious, you know, if you see this as a 1-off opportunity with with side or should be expect this as a kind of an opening into a bigger kind of a business for Williams.

Yeah. Thanks. You know, I, I would not view this as necessarily a bigger, uh, opening for Williams. But what I would say is when we have the ability to take a very small LG position, but, you know, parlay that into a, an integrated opportunity like this to build pipeline infrastructure to, um, to to expand our gathering. And, um,

Delivery Systems through Transco and, and align our storage assets. You know, those are unique. I think when opportunities to bring a lot of different future, uh, growth to the, to the platform. And so, I wouldn't say that we would never do another deal, but I made it clear in our, in the remarks, you know, our goal is not to grow our position as an international LG marketer that is not our business, but where we have the ability, uh, you know, we're a big company so to be able to take a very small position that we think we can mitigate, uh, risk over time to be able to take a very small position but align that with a much more strategic fully integrated opportunity, like Woodside, you know, those those opportunities aren't aren't everywhere, but if those come along uh we'll continue to be open to exploring them, but don't don't read this to to mean that we're trying to become a larger International LG marketer. And that's not our intent.

Understood and thanks for that. And then on the power Innovation side, I was curious, you know, uh, what kind of cost inflation you're seeing in your supply chains and uh and also you know, how do you think about, you know, counterparty concentration as you as you grow that business?

Yeah, I'd say on the, on the first note, I mean, we have seen, I think everyone has seen cost inflation. We're managing that with our customers and so um I think that's just a reality of market right now as as a demand for, you know, generation. I mean, I've been saying this, we haven't grown power generation in in the United States electricity generation in the United States in, in effectively 25 years. And so, you know, there's a lot of, uh, demand coming into a market where we haven't had the capacity to really grow electricity production. And so we have seen cost increases, but it's it's a board and so it hasn't made us any less competitive than anyone else. It's just a reality that customers are having to deal with. As, you know, cost for equipment has has increased over the last call at 12, uh, 12, 12 months. So, you know, that's certainly, uh, an issue we're dealing with.

Yeah. Yeah, I can pick up the second point on customer concentration. I mean, I think we're really excited about what we're seeing on the credit profile and the power Innovation. Again, as Chad mentioned, we're only focused on the best of the best opportunities here. We're not stretching into a lot of the projects that are that are going to happen in this space. We're focused on deals with the hyperscalers uh you know, double A credits and such. And so we we like the credit profiles to begin with but that's but that's kind of Step 1. Step 2 is we're getting some very attractive credit protection as part of these agreements as well. I can't go into the details of that but we're really happy.

with the amount of credit protection, we're getting above and beyond the fact that these are, you know, some of the best companies in the world to be working with

John. Thanks, Jared.

Thank you.

Our next question is from John McKay with Goldman Sachs, your line is open.

Hey Alex, thanks for the time. I'll just ask 1 quick 1. Uh, you got the Upstream sale announced recently. Can you just remind us on what your plan is for the remaining Upstream portfolio from here, like

And yeah, as I've said, I think many times it's a much larger much more complex asset. It's also an asset that has very high margins for us because it's a rich gas and um, liquids, you know, Basin and so, when we produce an incremental molecule in wamsutter, We Gather we process, we move the ngls to our infrastructure. We can fractionate, we Market ngls, we Market the gas and so a lot of margin that we capture through our Midstream infrastructure from lawsuit. And so the strategy there is importantly to make sure that when, uh, we move that asset into an upstream producer's hands, we know that the asset has been fully delineated and will be developed at its full potential and we have the benefit of proving up that asset with all of the value chain economics. That we get through our Midstream infrastructure. And if we were just to move that asset into an upstream, only operator's hands, they they may not develop it to its full potential.

So we are working to prove up wamsutter, but as I've said, that'll take some time and we will continue to kind of do that work, um, but we we've got a great team working on it and, you know, feel really good about where we are, but that that's the remaining interest. But again now represents, you know, only a couple percentage points of our total overall earnings but the power that it drives into our Midstream is really uh most important.

Understood. Thanks for time. Appreciate it.

Thank you.

That concludes the Q&A portion of our call, I will now turn it over.

To president and CEO, Chad, zamar for closing remarks.

All right, well, thanks for the robust Q&A session and thank you for your interest in Williams. Uh we look forward to seeing you in February in the meantime, we wish you. Well, thanks.

Thank you for your participation. In today's conference, this does conclude the program. You may now disconnect