It’s all good. What gives me assurance is the themes they talk about (agnostic about price, volume matters, long term demand, fully contracted expansion projects) are the very reasons I invested in Williams. That means long term cash flows are highly stable and gives us great visibility going forward.
Given the consolidation in the industry happening….do not be surprised if someone else takes a run at WMB
From the investor conference:
- assets — particularly the Transco asset — is the largest and the fastest-growing
- Northeast — today we have about 38% of the gathered volumes in the Northeast are either on our — mostly on our directly owned and operated assets; and then the balance on investments that we have in assets like Blue Racer up there
- despite the decline in oil prices of course that happened in late 2014, we have continue to grow our EBITDA.
- first quarter of 2015, right at through the price drop at the end of 2014, you would see that we’ve grown our EBITDA by 15%
- up in the first half of the year — comparison to first-half 2015, we were up 10%.
- 19 projects right now in the queue that we’re working on: along the Transco, Northwest Pipeline, and Gulfstream system. Most of that business is on Transco. I think two of those projects are on Northwest Pipeline, and one of those is on Gulfstream. But these are projects that we haven’t yet finalized the contracting of that business. But the point is these opportunities along the Transco system just continue to come at us
- look at the quality of our assets, the stability of our cash flow, and the very identifiable growth, we shouldn’t really be targeting our peers; we should be targeting well above our peers, because really nobody has the growth that we have right now in the space. And really if you look at stability of EBITDA and DCF, we also have performed extremely well over the last six quarters compared to our peers.
- the natural gas market is going to continue to grow. We don’t really care what the price is going to be. We do care about volume growth.
- Northeast. And today we have about 700 million a day shut in up there that, as soon as these downstream markets open up, that is just incremental cash flow without any new capital investment that will come to us.
- growth is expected to come from, and you just take the markets that are served by Transco, you can see why we’re getting such an outsized response on our systems versus our peers, is because our pipeline just happens to be in exactly the right spot. It’s in the very heavily populated area; heavily populated areas, meaning as people a shift over from coal to natural gas, that’s going to come to us. And every LNG project right now that is forecasted to be executed by 2020, Transco either has already got a contract to serve, or very likely will be the party that is serving those LNG facilities.
- our investments: All of these projects are fully contracted projects. You also heard me talk about another 19 projects that we’re working on right behind these, but these are 2017 through 2018.
- Every one of the projects listed here are fully contracted. We are not dependent on any incremental contracts or revenue. The capacity is fully subscribed
- ethylene margin here over the last month has really spurred up. And we’re actually selling forward ethylene into the first quarter of 2017. So, not only is the market very high right now on margin, the length that’s available right now is pretty impressive as well. And so, the market is starting to feel what it’s like to have short ethylene