2025 EBITDA Guidance Unchanged
Q: Why is 2025 EBITDA guidance unchanged despite volume reductions?
A: Management remains cautious due to low natural gas prices and potential volume reductions but has left 2025 EBITDA guidance unchanged. They hope for upside but are prepared for continued caution, especially in dry gas areas.

Natural Gas Oversupply Impact
Q: How does gas oversupply affect Williams' trajectory into 2025?
A: The market is currently oversupplied, keeping prices low and rigs running. Management expects producers to reduce activity, balancing supply and demand over time. Starting mid-2025, they anticipate a significant demand increase due to LNG and industrial loads, positively impacting operations.

2025 Growth CapEx Projects
Q: What are the key 2025 growth CapEx projects?
A: Major 2025 growth capital will be spent on the Louisiana Energy Gateway (LEG) project, accounting for significant gathering and processing expansions. Other investments include carbon capture and sequestration projects at the LEG terminus, solar projects, upstream joint ventures, and several Transco transmission projects scheduled for in-service dates in 2025.

Producer Activity and Guidance
Q: How do delayed wells affect 2025 guidance?
A: Despite producers delaying wells due to low gas prices, management expects they will be ready to respond to market improvements. There's potential upside for 2025 as supply and demand respond. Producers are positioning themselves based on confidence in future fundamentals and forward markets.

LEG Project Litigation
Q: What's the status of the LEG project amid litigation?
A: Despite challenges from Energy Transfer on pipeline crossings in Louisiana, management is confident the LEG project will proceed with an in-service date in the second half of 2025. Legal issues were anticipated and accounted for in the project schedule. The project is essential due to rising LNG demand in the Gulf Coast.

Data Center Demand Growth
Q: How does data center demand impact future growth?
A: Management sees data center and AI demand driving incremental gas demand over time, particularly in markets served by Transco. While individual data centers may not significantly impact demand alone, collectively they contribute to growth. They anticipate long-term planning to address infrastructure constraints, working closely with utility customers to serve their needs.

Permitting Reform Importance
Q: How critical is permitting reform for meeting demand growth?
A: Underinvestment in gas infrastructure and permitting constraints hinder the ability to meet growing demand, especially with increasing reliance on natural gas for baseload power. Management is hopeful that awareness of infrastructure needs will lead to permitting reform, enabling investment to keep up with demand.

Use of Excess Cash Flow
Q: How will excess cash flow be used if performance exceeds guidance?
A: Management considers adjusting the dividend policy, share buybacks, and pursuing bolt-on acquisitions aligned with their strategy. They are prepared to act quickly on acquisitions that add immediate value and integrate well with their operations.

Washington Storage Market Rates
Q: What uplift is expected from moving Washington Storage to market-based rates?
A: Transitioning Washington Storage to market-based rates is expected to be effective in April 2025, with the uplift embedded in 2025 EBITDA guidance. Management anticipates existing customers will fully subscribe to the capacity given high demand for storage, leading to improved financial performance.

LNG Strategy and Investments
Q: Is Williams interested in acquiring a stake in Port Arthur LNG?
A: Management is focused on high-return projects they build and operate, rather than non-operated positions in infrastructure projects like Port Arthur LNG. They are open to opportunities that connect customers to better markets but prefer investments where they can actively build and operate assets.

Coal Plant Retirements and EPA Rules
Q: How do new EPA carbon emission rules affect Williams?
A: Management is monitoring the impact of new EPA rules requiring carbon sequestration for new gas-fired plants. They anticipate challenges for utilities in meeting demand with accelerated coal plant retirements and the expense of sequestration technology. They expect debates within utility boards and possible tempering of regulations due to litigation.

Gulf Projects and Shenandoah Delay
Q: How does the Shenandoah delay impact projects?
A: Management states that their part of the Shenandoah project is on schedule and they are confident in their forecast. While they cannot speak for the producer, they emphasize readiness to serve when required.

Storage Rates and Contango Market
Q: Are increased storage rates due to current contango sustainable?
A: Management believes storage value is not solely dependent on contango. They see long-term value in storage due to increased volatility in power markets, renewable integration, and the need for reliability. The evolving market recognizes storage's role, and they expect continued demand for storage capacity.

Northeast and MVP Startup
Q: How will MVP startup affect producers and Williams?
A: The Mountain Valley Pipeline (MVP) startup is expected to initially serve strong power generation loads, potentially increasing upstream volumes gathered by Williams. They anticipate significant additional expansions from MVP connection points, benefiting from higher-margin expansions on Transco.

Gas Storage Brownfield Opportunities
Q: How much storage can be added via brownfield projects?
A: Management indicates they have significant capacity to expand storage at existing facilities, potentially in 10 Bcf increments at salt-cavern sites. They will expand storage capacity incrementally based on market demand and long-term contracts, recognizing storage's increasing value.