WILLIAMS COMPANIES, INC. Q3 FY2024 earnings call

• Delivered record quarter of adjusted EBITDA driven by natural gas transportation expansions and Gulf Coast Storage acquisition.
• Raised guidance midpoint for 2024, with a five-year EBITDA CAGR of over 7% at midpoint of 2025 guidance.
• Projects like Transco's Regional Energy Access placed in full service ahead of schedule, Southside reliability enhancement project and MountainWest Uinta Basin expansion completed.
• SESE project filed FERC application for 1.6 Bcf a day expansion, MountainWest Overthrust Westbound expansion received FERC order certificate.
• Signed commercial agreements with Lakeland Electric for a solar farm and with others for various projects.

Transmission in Gulf of Mexico businesses improved $76 million, with a full quarter contribution from the Gulf Coast Storage acquisition and higher Transco revenues. Northeast G&P business was flat. West segment increased $15 million, benefiting from DJ transactions and NGL services. Upstream joint venture operations in other segment were down about $23 million due to lower realized prices.

• Increased midpoint of adjusted EBITDA to $7.075 billion, with a range of $7 billion to $7.15 billion.
• Key per share metrics, adjusted EPS and AFFO per share, shifted to high end of ranges for 2024.
• Leverage guidance improved to 3.8x or better in 2024, reaffirmed 2025 guidance with update to be provided in February.

• Natural gas price environment remains challenging.
• Impact of Gulf of Mexico storms.
• Portfolio asset sales could unfavorably impact performance.
• Regulatory risks such as FERC actions on project certifications.

Q: Regarding producer conversations and operating leverage, how much uptick in production could be seen and operating leverage in gathering systems?

A: Alan Armstrong discussed small capital expansions in pipes and Michael Dunn mentioned about 4 Bcf per day of shut-in gas in Marcellus and Haynesville with opportunity to increase volumes as prices rebound Q: With increased competition for pipeline space, are there upward pressure on rates?

A: Alan Armstrong said capacity on systems is precious, term lengthening when available, not much opportunity to price up existing cost of service capacity Q: On balance sheet and strategic JV simplification, any plans?

A: Chad Zamarin said continue to look at tucking in JV interest but they need to compete with attractive organic growth projects Q: On macro and Trump victory impact, views?

A: Alan Armstrong said favorable tax outcome, hopeful on permitting, impact on infrastructure build and dividend coverage Q: On data center opportunities and growth profile influencing dividend policy?

A: Alan Armstrong said high-return projects mean no concern on dividend growth, balance sheet capacity sufficient