Williams Companies, Inc. (the) · NYSE:WMB

Williams Companies, Inc. (the) — The Williams Companies — Corporate Update (October 2024)

50 slides from Williams Companies, Inc. (the)'s corporate update, Oct 8, 2024

Slide 2: Agenda
Agenda • Opening Comments – Josh Browning, VP Commercial – Eastern Interstates • Transco Fundamentals – Angela Marinos, Market Intelligence Consultant • Pipeline Control – John Casto, Director – Pipeline Control • Maintenance Review – John Bell, Manager – Physical Optimization • Scheduling & 1Line U
Slide 5: Growing demand and volatility across natural gas markets
Growing demand and volatility across natural gas markets Resilient gas demand for Increasing daily and hourly Transco system invaluable to power and robust LNG variability of demand meet demand and manage exports volatility • Strong growth in Gulf Coast, • Natural gas markets will • Sufficient gas i
Slide 6: Domestic natural gas demand growing across Transco markets
Domestic natural gas demand growing across Transco markets Natural Gas Demand Growth over 2023 Levels (Bcf/d) Zone 1-3 Zone 4-5 Zone 6 1 8.0 3.0 +6 Bcf/d +3 Bcf/d 7.0 -0.3 Bcf/d -1 Bcf/d 2.5 +0.1 Bcf/d 6.0 1 +4 Bcf/d 5.0 2.0 4.0 0 1.5 +1 Bcf/d 3.0 2.0 1.0 -1 -0.1Bcf/d 1.0 0.0 0.5 +0.3 Bcf/d -1.0 -1
Slide 7: Electricity demand will stress power grid and require natural gas to backup intermittent renewables
Electricity demand will stress power grid and require natural gas to backup intermittent renewables Electrification of heating and transport, data centers and AI-driven future will create growth in power demand not seen in past two decades U.S. Net On-Grid Power Demand 6,000 5,500 Electricity demand
Slide 8: Datacenters pose challenge in forecasting electricity and natural gas demand
Datacenters pose challenge in forecasting electricity and natural gas demand Transco well-positioned to capture strong regional growth in baseload and peak power demand expected from data centers L-48 Map of Operating and Planned Data Centers by Demand Size in MW U.S. Gas Demand for Data Centers 14
Slide 9: Gulf Coast LNG export demand more than doubles by 2035
Gulf Coast LNG export demand more than doubles to 28 Bcf/d by 2035 increasing competition for natural gas in Southeast ▪ U.S. exports 29 Bcf/d of LNG U.S. LNG and Net Mexican Exports annually by 2035 50 45 ▪ U.S. Gulf Coast LNG exports 40 more than double from 11 to 35 28 Bcf/d by 2035 30 ▪ In addit
Slide 10: Transco resides along active and growing US LNG corridor
Transco resides along active and growing US LNG corridor Williams’ Asset Map in U.S. Gulf Coast1 + U.S. L-48 Large Scale Approved and Potential Liquefaction Facilities Per EIA2 14.3 11.6 11.9 Bcf/d2 Bcf/d2 Bcf/d3 LNG projects LNGINVESTED export CAPITAL LNG export projects already projects currently
Slide 11: Growing daily and hourly variability in LNG exports and power demand
Growing daily and hourly variability in LNG exports and power demand will continue to stress natural gas pipeline systems Daily US Gulf Coast LNG feed gas in 2024 Hourly US Gulf Coast Cameron LNG feed gas ERCOT Hourly electricity generation mix demonstrates seasonal fluctuations data show intraday f
Slide 13: Transco Flows and Capacity (2023)
Transco Flows and Capacity (2023) Flow Map Post-Shale Transco has now been converted to a fully 860 2,328 262 bi-directional system 4,492 • Transco is a long-haul transmission pipeline Zone 6 2,615 consisting of over 10,000 miles of pipe, 63 compressor stations and 5 storage facilities 2,683 • Trans
Slide 14: Transco – Peak Day History
Transco – Peak Day History • Since 2008 22 • Peak Day has grown 73% 20 • 3-Day Peak has grown 18 75% • Transco Peak Day is still MMDTs Delivered 16 17.3 BCF on January 29, 14 2022 • New 3-Day Peak was set in 12 January 2024 10 8 6 Peak Day 3-Day Peak WILLIAMS © 2024 The Williams Companies, Inc. All
Slide 15: Transco Maximum Daily Quantity (MDQ) and Peak Deliveries
Transco Maximum Daily Quantity (MDQ) and Peak Deliveries 25 Current MDQ – 19.13 BCF 23 21.64 BCF peak hourly delivery – November 2021 21 19 17 BCF 15 13 11 2016 – 2024 9 MDQ = 63% 2016 MDQ – 11.73 BCF Peak hourly delivery = 34% 7 5 2016 2017 2018 2019 2020 2021 2022 2023 2024 MDQ Max Hourly Delivery
Slide 16: Transco Average Daily Deliveries
Transco Average Daily Deliveries 14,000 13,142 13,417 7,000 12,435 12,789 12,322 12,000 11,435 6,000 • Power demand on the Transco system has grown from 2,670 MDth/d in 2017 to ~3,471 MDth/d 9,946 when compared to the 2022/23 average 10,000 5,000 • (MDth/d) 8,000 4,000 Growth in power demand systemw
Slide 17: Transco Average Daily Deliveries by Zone
Transco Average Daily Deliveries by Zone Zone 1-3 Average Daily Deliveries Zone 4-5 Average Daily Deliveries Zone 6 Average Daily Deliveries 6,000 10,000 6,000 4,000 7,000 3,574 3,501 3,617 3,565 3,581 9,000 3,468 3,456 2,500 8,180 3,500 6,000 5,000 7,703 5,000 8,000 7,651 7,225 3,000 1,934 6,814 5,
Slide 18: Seasonal Operations Overview
Seasonal Operations Overview 2023-2024 Winter Operations 2024 Summer Operations • Winter was relatively mild • Maintenance and construction activity • Transco’s system performed well • Second highest all-time summer peak • Activated Weather Resiliency Plan for Winter delivery on August 28, 2024, of
Slide 19: Transco Winter Review
Transco Winter Review Transco System Nov - Mar Average Deliveries 16,000 3,500 14,079 13,746 14,000 13,364 13,492 13,480 3,000 12,495 12,000 11,443 2,500 10,000 2,000 MDth/d HDDs 8,000 1,500 6,000 1,000 4,000 2,000 500 - 0 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 Power LDC Interconnec
Slide 20: Transco Summer Review
Transco Summer Review Transco System May - Aug Average Deliveries 16,000 1,800 13,630 14,000 1,600 12,226 12,968 12,597 12,588 11,775 1,400 12,000 10,931 1,200 10,000 1,000 MDth/d CDDs 8,000 800 6,000 600 4,000 400 2,000 200 - 0 2018 2019 2020 2021 2022 2023 2024 Power LDC Interconnects Industrial L
Slide 21: Pipeline Control Summary
Pipeline Control Summary • Changing dynamics • Increasing hourly swings • Coordination with Eastern Interstates Commercial teams • Maintenance growth and impacts WILLIAMS © 2024 The Williams Companies, Inc. All rights reserved NYSE: WMB | www.williams.com 10/8/2024 | 21
Slide 23: Maintenance
Maintenance • Challenges • 2024 has been a significant year with a lot of maintenance performed along the system • Customer impacts • Recompression vs. blowdowns • Windows to perform maintenance are shrinking • Permitting delays • Increasing regulations • Continuous improvement efforts • Increased s
Slide 24: 2024 Maintenance Review
2024 Maintenance Review >800 Outage Requests • Major Projects • Compliance and Integrity projects are the number one driver of maintenance across the system • DOT pipe replacements and hydro tests Job Category Number of Major Projects • ILI assessments, anomaly digs, repairs Compliance/Integrity 25
Slide 25: Historical Maintenance Review
Historical Maintenance Year Major Projects Review 2021 32 2022 31 • Evolving posting strategy 2023 39 • Significant housing growth across the 2024 54 country has led to increased DOT Class Location changes year over year DOT Pipe Replacement & Hydro Test Mileage • New and changing regulations result
Slide 26: 2025 Expected Maintenance
2025 Expected Maintenance • Increasing regulations and Class growth are expected to continue to drive outages in 2025 • Fewer capital expansion and ERP projects are planned for next year • Hard Spot impacts are expected to be similar to 2024, but efficiencies are still being found and alternatives a
Slide 27: Maintenance Postings
Maintenance Postings • Customer feedback • Not enough notice • Limited information on work that is occurring • No direct understanding of how it will impact volumes • Previous Posting Example • Transco has provided notice of planned maintenance activity associated with Job #162874 on its 2024 Planne
Slide 28: Improved Maintenance Postings
Improved Maintenance Postings Additional detail on work that is occurring • Updated Posting Example Subject: Station 175 (Job 557156) 2024 Planned Outage and Maintenance Summary Transco will be performing necessary work associated with Job #551756 on its 2024 Planned Outage and Maintenance Summary.
Slide 29: Maintenance Summary
Maintenance Summary • Continuing to find ways to minimize maintenance impacts • Changing system dynamics have altered the usual maintenance windows • Adapting to changing regulations and new methods to complete maintenance • Clearer communication when impacts do occur WILLIAMS © 2024 The Williams Co
Slide 31: Scheduling Updates
Scheduling Updates • Weather Resiliency Plan implementation • Changing customer mix dynamics • Reviewing and implementing new business processes to maintain reliability • New Interconnects In Service • West Bernard (Kinder Morgan Tejas) – March 2024 • Cherrystone (Mountain Valley Pipeline) – July 20
Slide 32: Delivering Reliable Services
Delivering Reliable Services Winter Storm Elliott prompted an evaluation of business processes currently in place, and as a result we have made improvements to reinforce the integrity of our system. During winter storm Heather, we implemented those process changes. The Weather Resiliency Plan was in
Slide 33: Delivering Reliable Services
Delivering Reliable Services Changing Customer Mix Managing changing pipeline dynamics WILLIAMS © 2024 The Williams Companies, Inc. All rights reserved NYSE: WMB | www.williams.com 10/8/2024 | 33
Slide 34: Delivering Reliable Services
Delivering Reliable Services Non-Ratable Takes – Increasing Volatility Managing changing pipeline dynamics Hourly Load Example (Feb 19 – 21, 2024) Timeframe represents a period of high loads (~16 MMDth/d), but not peak day loads (>17 MMDth/d) • Total system load ramped up 5 MMDth/d from 15.8 MMDth/d
Slide 35: Transco Delivery Swings
Transco Delivery Swings 10 9 8 BCF 7 6 Managing Managing changing changing ipeline 5 pipeline dynamics dynamics 4 2016 2017 2018 2019 2020 2021 2022 2023 2024 Max Swing (Peak to Bottom) • With the changing flow dynamics on the system, we have seen an increase in the delivery hourly swings within the
Slide 36: Transco Retro Changes
Transco Retro Changes Current Process Future Process Benefits Phase I Process • Facilitates the original intent of • Transco currently offers 2 additional • Create a validation for Pipeline automating retros to be for errors Nomination cycles in addition to the 5 Interconnects to reject any Post or
Slide 37: 1Line Enhancements
• Improved site performance 1Line Enhancements 1Line Application now Cloud • Improved scaling to manage increased traffic • Streamlines the ability to add Hosted enhancements • Added additional detail to provide Measurement specific meter information in customer Change Email notifications Customer C
Slide 38: 1Line Enhancements
1Line Enhancements In Planning 1Line Enhancement Capacity Release • Evolving architecture to Efficiency enable future business • Feedback to better needs understand customer needs and potential enhancements to 1Line 1Line Forum Survey • Feedback to better understand customer needs and potential enha
Slide 40: Uniquely positioned to capture opportunities to serve energy needs
Uniquely positioned to capture opportunities to serve energy needs Power demand growth • Electricity growing 3x faster this decade vs. prior decade driven by EV growth and emergence of large load data centers1 • Ability to expand transmission system to serve peak demand and provide capacity to serve
Slide 41: Over 3.0 Bcf/d of added capacity since 2019
Over 3.0 Bcf/d of added capacity since 2019 1 Project In-Service Project Capacity 2 5 3 Rivervale South 1 2019 190 MMcf/d 4 Regional Energy Access 2 2024 829 MMcf/d Gateway 3 2020 65 MMcf/d 6 Chesterfield 4 2021 130 MMcf/d 7 Leidy South 5 2021 582.4 MMcf/d Carolina Market 6 2024 78 MMcf/d 8 Link Sou
Slide 42: Domestic natural gas demand growing across Transco markets by 2035
Domestic natural gas demand growing 8 Bcf/d across Transco markets by 2035 Natural Gas Demand Growth Over 2023 Levels (Bcf/d) 1 - -0.3 -1 Zone 6 Zone (1) 6 (2) 2025 2030 2035 3 2 Natural Gas Transmission Pipeline Zone 4-5 3 Natural Gas Gathering Pipeline 1 1 Natural Gas Liquids Pipeline Zone - 0 Oil
Slide 43: Executing on ~2.8 Bcf/d of Transco expansions
Executing on ~ 2.8 Bcf/d of Transco expansions Commonwealth Energy Connector 1 • 105 MMcf/d serving Res/Com demand in Mid-Atlantic • Received FERC Order and under construction with expected in service date 4Q’25 Southside Reliability Enhancement 2 • 423 MMcf/d serving Res/Com demand in Mid-Atlantic
Slide 46: Eastern Interstates Commercial Org Structure
Eastern Interstates Commercial Org Structure Josh Browning VP Commercial Justin Joyce Amy Morris John Suchar Open Jamie Johnson Dir Commercial Dev. Dir Optimization & Dir Commercial Services Dir Commercial Development Dir Business Development Storage Transportation Al Gonzalez Josh Strickland Leslie
Slide 47: Pipeline Control Org Structure
Pipeline Control Org Structure John Casto Director Ross Sinclair Mark Warren Clint Ratke Rich Truxell Manager Manager Manager Transmission Consultant Eastern Interstates Western Interstates G&P Jared McDaniel Avery Emery Marlin Nossman Chris Allard Open Kelsey Johnson Scott Cummings Supervisor Super
Slide 48: Transportation Services Org Structure
Transportation Services Org Structure Amy Morris Director Commercial Optimization & Transportation Chris Barnett Commercial Optimization Kristy Molina Commercial Optimization Lead Lead Julian Arias John Bell Manager Transportation Manager Optimization Michelle Nguyen Transportation Services Lead Nic
Slide 49: Eastern Interstates Business Development Org Structure
Eastern Interstates Business Development Org Structure Zone 6 Jamie Johnson (281) 546-1324 Zone 4-5 Zone 1-3 Al Gonzalez Trevor Swint Kyle McKemy Rick Whitworth Clay Glockzin Carlos Canos Collin Chambers (281) 908-2200 (713) 855-5570 (281) 352-8836 (832) 904-7784 (281) 253-6885 (713) 882-2869 (346)
Slide 50: Transco Commercial Functions
Transco Commercial Functions • • Scheduling • Contract administration • Originate, value and Customer Engagement • Capacity management • Imbalance management • Maintain transactional execute expansions • Project execution support • Contract extensions • Maintenance coordination postings • • Short te

The Williams Companies — Corporate Update (October 2024) on 6ix

Williams Companies, Inc. (the) — The Williams Companies — Corporate Update (October 2024)

Slide 1: Winter Operations Meeting

Slide 2: Agenda

Slide 3: Welcome

Slide 4: Transco Market Fundamentals

Slide 5: Growing demand and volatility across natural gas markets

Slide 6: Domestic natural gas demand growing across Transco markets

Slide 7: Electricity demand will stress power grid and require natural gas to backup intermittent renewables

Slide 8: Datacenters pose challenge in forecasting electricity and natural gas demand

Slide 9: Gulf Coast LNG export demand more than doubles by 2035

Slide 10: Transco resides along active and growing US LNG corridor

Slide 11: Growing daily and hourly variability in LNG exports and power demand

Slide 12: Pipeline Control/System Dynamics

Slide 13: Transco Flows and Capacity (2023)

Slide 14: Transco – Peak Day History

Slide 15: Transco Maximum Daily Quantity (MDQ) and Peak Deliveries

Slide 16: Transco Average Daily Deliveries

Slide 17: Transco Average Daily Deliveries by Zone

Slide 18: Seasonal Operations Overview

Slide 19: Transco Winter Review

Slide 20: Transco Summer Review

Slide 21: Pipeline Control Summary

Slide 22: Maintenance Discussion

Slide 23: Maintenance

Slide 24: 2024 Maintenance Review

Slide 25: Historical Maintenance Review

Slide 26: 2025 Expected Maintenance

Slide 27: Maintenance Postings

Slide 28: Improved Maintenance Postings

Slide 29: Maintenance Summary

Slide 30: Scheduling & 1Line Updates

Slide 31: Scheduling Updates

Slide 32: Delivering Reliable Services

Slide 33: Delivering Reliable Services

Slide 34: Delivering Reliable Services

Slide 35: Transco Delivery Swings

Slide 36: Transco Retro Changes

Slide 37: 1Line Enhancements

Slide 38: 1Line Enhancements

Slide 39: Business Development Update

Slide 40: Uniquely positioned to capture opportunities to serve energy needs

Slide 41: Over 3.0 Bcf/d of added capacity since 2019

Slide 42: Domestic natural gas demand growing across Transco markets by 2035

Slide 43: Executing on ~2.8 Bcf/d of Transco expansions

Slide 44: Closing Summary

Slide 45: Appendix

Slide 46: Eastern Interstates Commercial Org Structure

Slide 47: Pipeline Control Org Structure

Slide 48: Transportation Services Org Structure

Slide 49: Eastern Interstates Business Development Org Structure

Slide 50: Transco Commercial Functions