The Williams Companies, Inc.
CEO : Mr. Alan S. Armstrong
Quarterly earnings growth(YoY,%)
| Period | Revenue | Operating Income | EPS | Release Date |
|---|---|---|---|---|
| 2022 Q4 | -10.0% YoY | 14.4% | 7.8% | 2022-11-01 |
Alan Armstrong says,
Expected Production Growth
- The company expects their net interest production to continue to grow in 2023.
- GeoSouthern, the operator, has been performing well on both cost and delivery side.
Reversion and Capital Obligations
- Although interest in undeveloped acreage declines, it does not affect the existing flow of production.
- Capital obligations will fall back hard in 2023 after reversion occurs.
- Long-term objective is to sell the asset and the acreage is proving itself to exceed that.
Total Volume Growth
- The company thinks that the acreage has a long way to go from where it is today in terms of total volume growth in that area.
- Current volumes in 2022 are outperforming initial predictions.
Nice, Big Upside of Pricing
- The current environment has seen a nice, big upside of pricing and will drive a lot of free cash flow into 2023 and 2024.
Micheal Dunn says,
Uncontested Settlement for Approval
- The company has an uncontested settlement in front of the FERC for approval, which is expected to be received before the end of the year.
- The rates will go into effect next year.
Emissions Reduction Program Rider
- The company achieved an emissions reduction program rider which is a good framework for them to go into the Transco rate case.
- There is a lot of compression on both Northwest Pipeline and the Transco system that they can replace in areas where they are in non-attainment or being challenged by regulators to improve emissions.
Opportunities for Investment in Regulated Business
- The emissions reduction program rider presents a great opportunity for the company to make an investment in their regulated business.
- The Northwest pipeline opportunity is not as great as the Transco opportunity for capital deployment due to the number of units on the Northwest Pipeline system versus Transco.
- However, the Northwest pipeline opportunity is well received by customers for the company to implement emissions reductions.
Q & A sessions,
Increased Value in Natural Gas Storage
- Sequent’s storage process impressed the company and highlighted the potential to drive up rates due to the value of storage in volatile markets.
- The variability of power generation, gas-fired power generation, and LNG is expected to continue driving value for natural gas storage.
FERC Order for Market-Based Rates on Washington Gas Storage
- FERC issued an order for market-based rates on Washington Gas storage, which is a significant deal.
- The order enables the company to go to market-based rates for the 75 Bcf a day of working gas storage, providing a total of 110 Bcf a day of storage in the Gulf Coast area between NorTex and Washington Gas storage.
Investments in Wamsutter JV and Eagle Ford
- The drilling capital spent in Wamsutter JV this year will start to show benefits in 2023.
- The company is seeing rapid development in rich gas in Eagle Ford that will see the MVC out there, making it attractive.
Impact of Pricing and Volumes on the E&P Space
- Pricing is likely to be a consideration, but the volume in the E&P space is expected to overcome the headwind, which could surprise people to the upside next year.
- Gas demand remained resilient despite higher prices as the utilities and power generators are not able to flip back to coal, leading to strong demand from gas-fired generation from utilities, particularly in the Mid-Atlantic and the Southeast.
Status of FERC 7(c) Certificate and Outstanding Permits for Regional Energy Access
- The company is awaiting the FERC 7(c) certificate, which is expected to be issued before the end of the year.
- The air permit is expected to be issued by the end of this year, which will enable the company to deploy its emissions reduction program.
- The core engineers will issue a 404 permit for water quality, expected in the first quarter of 2023, with no technical issues remaining on the 404 permit.
No bad stock 