Williams Companies, Inc. (the) · NYSE:WMB
Williams Companies, Inc. (the) — The Williams Companies — Investor Presentation (2017)
36 slides from Williams Companies, Inc. (the)'s investor presentation, 2017
Slide 1: Transco Fall Update 2017
WE MAKE ENERGY HAPPEN Transco Fall Update 2017 NYSE: WMB williams.com
Slide 2: Forward Looking Statements
Forward Looking Statements > The reports, filings, and other public announcements of The Williams Companies, Inc. (Williams) and Williams Partners L.P. (WPZ) may contain or incorporate by reference statements that do not directly or exclusively relate to historical facts. Such statements are “forwar
Slide 3: Forward Looking Statements (cont'd)
Forward Looking Statements (cont’d) – The impact of existing and future laws, regulations, the regulatory environment, environmental liabilities, and litigation, as well as our ability to obtain permits and achieve favorable rate proceeding outcomes; – Williams’ costs and funding obligations for def
Slide 4: Business Development Org Chart
Business Development Org Chart Scott Hallam Vice President & General Manager Eastern Interstates Gary Duvall Charlotte Hutson Paul Egner III Al Taylor Vice President Director Joint Venture Specialist Vice President Commercial Eastern Rates & Regulatory Commercial Operations Operations Eastern Inters
Slide 5: Commercial Operations - Customer Services
Commercial Operations - Customer Services Gary Duvall VP Transco Commercial Hector Alatorre Director Customer Services Keith John Cassapo Leneva Suzanne Heiser Higginbotham Bill Eiser Aschermann Laurie Catlett Manager Manager Leads Business Business Development – Development – Production Area Custom
Slide 6: Transco: Access to Cost-effective Supplies and Premium Markets
Transco: Access to Cost-effective Supplies and Premium Markets Transco System Facts Capacity > Nation’s largest-volume Contracted Capacity 14.6 MMDth/d natural transmission gas Miles of Pipe 10,200 miles pipeline Mainline Miles 2,000 miles > Extends 1,800 miles Compressor Stations 51 from South Texa
Slide 7: North American Natural Gas Demand by Sector
North American Natural Gas Demand by Sector (2011-2021) © 2017 The Williams Companies, Inc. All rights reserved. Transco’s Fall Presentation 2017 7
Slide 8: 5 Year Throughput Trends by Sector/Industry type
5 Year Throughput Trends by Sector/Industry type Location Type 2012 2013 2014 2015 2016 Industrial 26,698,666 32,753,961 34,010,259 41,863,059 50,863,210 Power Generation 601,952,692 589,281,608 612,292,964 779,652,795 906,946,495 LDC 1,421,827,560 1,524,280,339 1,554,724,459 1,331,732,853 1,323,482
Slide 9: Well connected to LNG Export Terminals
SECTION TITLE Well connected to LNG Export Terminals The gas demand to serve LNG export facilities along Transco is expected to grow by ~10 Bcf/d through 2019 Cove Point Natural Gas LNG Begin Facility Supply (MTPA) Service Complete (BCF/d) Sabine Pass 22.50 3.5 2016 2018 Cove Point 5.75 0.77 2017 20
Slide 10: Texas and Louisiana account for 76% of demand growth along the Transco corridor
Texas and Louisiana account for 76% of demand growth along the Transco corridor Growth between 2017 and 2027 LNG 12.9 Industrial bcfd Other growth Mexico Power Transport/LDC 0 2 4 6 8 bcfd Industrial growth from major projects Waha in2Texas and Louisiana bcfd 1 LNG Agua Dulce Petrochemicals 0 Methan
Slide 11: Transco Volumes and Capacity Flow Map ~2014
TRANSCO STRATEGIC CAPABILITIES Transco Volumes and Capacity Flow Map ~2014 Zone 6 Historical flows have been from the Gulf Coast to the Northeast Zone 5 Zone 4 Zone Zone 1 and 2 3 © 2017 The Williams Companies, Inc. All rights reserved. Transco’s Fall Presentation 2017 11
Slide 12: Transco Volumes and Capacity Flow Map ~2020
TRANSCO STRATEGIC CAPABILITIES Transco Volumes and Capacity Flow Map ~2020 Current and projected flow patterns convert Zone Transco to a fully bi-directional system in 2020. 6 Zones 6 and 5 are now officially bi-directional with fuel collected in both directions. Zone 5 Zone 4 Zone Zone 1 and 2 3 ©
Slide 13: Market transitions drive more volume southward
Market transitions drive more volume southward Northbound Flow Southbound Flow © 2017 The Williams Companies, Inc. All rights reserved. Transco’s Fall Presentation 2017 13
Slide 14: Mainline Reverse Flow Update
Mainline Reverse Flow Update > Odorization – Odorization work to monitor and adjust for varying levels of odorant. – Current odorization facilities that will not change: • Leidy Storage Facility – will continue to odorize the gas stream flowing from west to east • Station 200 – will continue to odor
Slide 15: System Imbalances, System Loads and OFO comparison
System Imbalances, System Loads and OFO comparison (+) Due From Shipper (Short) System Load (-) Due To Shipper (Long) Long position on Short position on Pipeline heading Pipeline heading into a mild into a mild weekend weekend © 2017 The Williams Companies, Inc. All rights reserved. Transco’s Fall P
Slide 16: Leidy Line & Wharton Storage Update
Leidy Line & Wharton Storage Update Leidy Line > Transco continues to work through the requirements of the Corrective Action Order (CAO). > In addition to CAO compliance activities, integrity testing was also performed on other pipelines on the Leidy system. This includes over 325 miles of pipeline.
Slide 17: Modernization Program – Evaluation
Modernization Program Modernization Program – Evaluation – Transco is engaged in an effort to evaluate its assets, prioritize modernization needs, and develop a risk-based modernization program, with the primary goal of maintaining pipeline safety and service reliability through the implementation o
Slide 18: 2017/18 Maintenance
2017/18 Maintenance > Over 300 maintenance jobs were scheduled in 2017; work included: > Project work to increase pipeline capacity > compressor station modifications, installation of new pipe, valve work, etc. > Pipeline inspections (pigging, hydrotesting, visual inspections) > Anomaly repairs > 20
Slide 19: Rate Case Update
Rate Case Update > As agreed in Article VI of the Stipulation and Agreement in Docket No. RP12-993, et al., Transco will file a NGA Section 4(e) general rate case no later than August 31, 2018. > Assuming that the filing date is August 31, 2018, the base period for the rate case will be June 1, 2017
Slide 20: Transco Production Area Abandonments
Transco Production Area Abandonments North High Island (NHI) Central LA Lateral Central TX (CENLA) Gathering Sys (CTGS) North Padre Island (NPI) 2017 2018 2019 Offshore Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Abandonments CTGS NPI & CENLA Timeline NHI Today © 2017 The Williams Companies, Inc. All rights
Slide 21: Eastern Interstates – Fully Contracted Expansion Projects
TRANSCO STRATEGIC CAPABILITIES Eastern Interstates – Fully Contracted Expansion Projects We are currently executing a total of 11 different expansion opportunities Constitution Q4 2018 Station 240 Modernization Q4 2018 New York Bay Expansion Rivervale South to Market Q4 2017 Q4 2019 NE Supply Enhanc
Slide 22: Gulf Trace
PROJECTS IN EXECUTION Status: • Full project went in service on February 1, 2017 Gulf Trace Zone 4 MS LA 65 TX Zone 3 Zone 1 and 2 Sabine Zone Pass 2 Liquefaction 45 North Yard 44 > Expansion from Station 65 in St. Helena Parish, LA, to a new interconnect with Sabine 7 mi. of 36-inch lateral Pass Li
Slide 23: Hillabee Expansion Phases I and II
PROJECTS IN EXECUTION Status: • Target In-Service Date: • Phase I went in service July 11, 2017 Hillabee Expansion • (818 MDth/d). Phase II in Q2 2020 (207 MDth/d). Phases I and II Zone 5 Zone 4 > Point-to-point lease with Sabal Trail from Station 85 to a new interconnect in Hillabee, AL > Leased ca
Slide 24: Dalton
PROJECTS IN EXECUTION Status: • Partial service began on February 1, 2017 • Full Project went in service on August 1, 2017 Dalton > Expansion from Transco’s Station 210 to markets in northwest Georgia. > Service will be provided under Transco’s FT Service. > Capacity: 448 MDth/d. Shipper Dth/d AGL 2
Slide 25: Garden State Phases I and II
PROJECTS IN EXECUTION Status: • Target In-Service Date: • Garden State Phase I went in service on September 9, 2017 (20 MDth/d). • Phases I and II Phase II in Q2 2018 (160 MDth/d). 505 207 PA 205 210 Pool Zone 6 Trenton > Expansion from Station 210 in Mercer County, 203 NJ to a new delivery point wi
Slide 26: New York Bay Expansion
PROJECTS IN EXECUTION Status: • Under Construction. • Target In-Service Date: Q4 2017. New York Bay Expansion > Expansion from Station 195 in York County, PA to two existing delivery points in New York > Will be provided under Transco’s FT Service > Capacity: 115 MDth/d > Shipper: National Grid 303
Slide 27: Virginia Southside II
PROJECTS IN EXECUTION Status: • Under Construction. • Target In-Service Date: Q4 2017. Virginia Southside II > Expansion from Transco’s Zone 6 Station 210 Pooling Point and Station 165 Pooling point to a new New York City delivery point off of the South Zone 6 205 Virginia Lateral 200 210 Pool > Wil
Slide 28: Atlantic Sunrise
PROJECTS IN EXECUTION Status: • Mainline construction has commenced. • All permits have been received and expect to start greenfield construction in September Atlantic Sunrise • 2017. Target In-Service Date: H2 2017 (1). > Expansion of Transco’s Leidy Line to Mid-Atlantic and Southeast Markets New Y
Slide 29: St. James Supply
PROJECTS IN EXECUTION Status: • FERC Application filed February 7, 2017. • Target In-Service Date: H1 2019. St. James Supply > Incremental transportation from Transco’s 85 Station 65 to a new interconnect with the proposed YCI M1 facility > Will be provided under Transco’s FT Service > Capacity: 161
Slide 30: Gulf Connector
PROJECTS IN EXECUTION Status: • FERC Application filed August 16, 2016. • Target In-Service Date: • Phase I H2 2018 (75 MDth/d). • Phase II 2019 (400 MDth/d). Gulf Connector > An expansion of Transco's mainline from Station 85 65 to LNG delivery points in Zone 2 and Zone 1 MS > Will be provided unde
Slide 31: Rivervale South to Market
PROJECTS IN EXECUTION Status: • FERC Application filed August 31, 2017. Rivervale • Target In-Service Date: Q4 2019. South to Market > Expansion from the Rivervale interconnect with Tennessee Gas Pipeline in Bergen County, NJ to the existing Central Manhattan M&R and Station 210 Pool > Will be provi
Slide 32: Northeast Supply Enhancement
PROJECTS IN EXECUTION Status: • FERC Application filed March 27, 2017. • Target In-Service Date: late 2019 or H1 2020. Northeast Supply Enhancement > Expansion from Station 195 in York County, PA to the Rockaway Lateral in New York Bay. > Will be provided under Transco’s FT Service. > Capacity: 400
Slide 33: Currently Pursuing ~20 Demand-Driven Expansion Opportunities Across Eastern Interstates
PROJECTS IN DEVELOPMENT Currently Pursuing ~20 Demand-Driven Expansion Opportunities Across Eastern Interstates > Potential projects are primarily demand pull and along existing corridor – Power generation, Industrial, Diamond East Q4 2021 LDC, LNG / Mexican exports > Project development Gateway Q4
Slide 34: Southeastern Trail
PROJECTS IN DEVELOPMENT Status: • Binding Open Season completed on August 3, 2017. • Developing project scope from open season. Southeastern Trail > Expansion from the existing Zone 5 Pleasant Valley Interconnect between Transco and Dominion Cove Point in Fairfax County, Virginia to Transco’s existi
Slide 35: Gateway
PROJECTS IN DEVELOPMENT Status: • FERC Application to be filed Q4 2017. • Target In-Service Date: Q4 2020. Gateway > Expansion from the proposed interconnect with PennEast Pipeline to Paterson and Ridgefield meter stations. All facilities are located in New Jersey. > Will be provided under Transco’s
Slide 36: Diamond East
PROJECTS IN DEVELOPMENT Status: • Meeting with potential shippers. • Target In-Service Date: Q4 2021. Diamond East > Expansion from Leidy Hub to Station 210 pooling point. > Will be provided under Transco’s FT Service. > Capacity: ~650 MDth/d > Shippers: TBA © 2017 The Williams Companies, Inc. All r
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