WILLIAMS COMPANIES INC
For the period ended Jun 30, 2024. Filed Aug 5, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 5, 2024
WMB$64.08-0.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-06.
0000107263-24-000063
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-05.
0000107263-24-000077
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 173 previous paragraphs and 230 current paragraphs.
116 unchanged; 51 reworded; 38 added; 5 removed; 1 previous and 25 current paragraphs rearranged.
Tables are not compared: 9 previous and 9 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (38)
Current report
Overview of Six Months Ended June 30, 2024
Current report
Expansion Project Updates
Current report
On July 30, 2024, the D.C. Circuit Court of Appeals granted petitions for review of the FERC orders approving the project, vacating such orders and remanding the matter to the FERC for appropriate action. The court’s decision will not be effective until the court has issued its mandate (which is not expected to occur until mid-September 2024 at the earliest), so the decision will not have an immediate impact on the project or the service being rendered through the project capacity. We will take the necessary legal and regulatory actions to ensure that the project capacity continues to be available to serve the needs of our customers without interruption.
Current report
Acquisitions and Divestitures
Current report
Discovery Acquisition
Current report
As of December 31, 2023, we owned a 60 percent interest in Discovery which we accounted for as an equity-method investment. On August 1, 2024, we closed on the acquisition of the remaining 40 percent interest in Discovery, along with certain other assets, for $170 million, subject to working capital and post-closing adjustments. As a result of acquiring this additional interest, we obtained control and will consolidate Discovery. The purpose of this acquisition was to expand our gathering, processing, and transportation footprint in the Gulf of Mexico region. Assets acquired, acquisition-related costs incurred, and results of operations realized will be included within our Transmission & Gulf of Mexico segment (see Note 11 – Subsequent Events).
Current report
Sale of Aux Sable Interest
Current report
Also on August 1, 2024, we completed the sale of our equity-method investments in Aux Sable for total consideration of $160 million. As a result of this sale, we expect to record a gain in the third quarter of 2024 in our Northeast G&P segment (see Note 11 – Subsequent Events).
Current report
Gillis West
Current report
We plan to file our prior notice application for the project with the FERC as early as the fourth quarter of 2024, which involves an expansion of Transco’s existing natural gas transmission system to provide incremental firm transportation capacity from receipt points in Louisiana to delivery points in Texas. We plan to place the project into service as early as the fourth quarter of 2025, assuming timely receipt of all necessary regulatory approvals. The project is expected to increase capacity by 115 Mdth/d.
Current report
Service revenues increased primarily due to higher volumes from the November 2023 DJ Basin Acquisitions at our West segment and the January 2024 Gulf Coast Storage acquisition at our Transmission & Gulf of Mexico segment (see Note 3 – Acquisitions and Divestitures), and higher revenues associated with an expansion project at our Transmission & Gulf of Mexico segment; partially offset by lower gathering volumes at our Northeast G&P and West Segments.
Current report
The Product sales and service revenues – commodity consideration increase primarily consists of:
Current report
•Higher NGL marketing sales primarily due to higher non-ethane prices, partially offset by lower ethane volumes and prices; partially offset by
Current report
•Lower system management gas sales.
Current report
•Lower system management gas purchases; partially offset by
Current report
Income (loss) from discontinued operations in 2023 includes a pre-tax charge of $115 million to increase the accrued liability associated with our Alaska refinery contamination litigation, partially offset by the related income tax effect.
Current report
The Product sales and service revenues – commodity consideration increase primarily consists of:
Current report
•Lower system management gas sales;
Current report
•Lower system management gas purchases; and
Current report
•Lower NGL marketing purchases due to lower ethane volumes, partially offset by higher non-ethane prices.
Current report
Operating and maintenance expenses increased primarily due to operating costs of the assets acquired at our West and Transmission & Gulf of Mexico segments, as well as an unfavorable change in our net imbalance liability due to changes in pricing.
Current report
Depreciation and amortization expenses increased primarily related to the assets acquired at our West and Transmission & Gulf of Mexico segments.
Current report
The favorable change in Other income (expense) – net below Operating income (loss) includes an increase in equity allowance for funds used during construction (equity AFUDC) at our Transmission & Gulf of Mexico segment.
Current report
Income (loss) from discontinued operations in 2023 includes a pre-tax charge of $115 million to increase the accrued liability associated with our Alaska refinery contamination litigation, partially offset by the related income tax effect.
Current report
•A $10 million increase in NorTex’s revenues primarily associated with higher storage rates; partially offset by
Current report
•Higher operating expenses and administrative costs including higher operating, acquisition and transition costs related to our Gulf Coast Storage Acquisition and higher operating and administrative expenses related to our MountainWest Acquisition; substantially offset by significantly lower acquisition and transition costs related to our MountainWest Acquisition; a gain associated with MountainWest cash-out sales; and the sale of certain liquids pipelines in the Gulf Coast region.
Current report
Northeast G&P Modified EBITDA decreased primarily due to lower Service revenues and lower Proportional Modified EBITDA of equity-method investments.
Current report
Service revenues decreased primarily due to:
Current report
Service revenues were consistent with the prior year primarily due to:
Current report
•An $8 million increase in joint venture operating fees primarily related to us assuming operatorship of Blue Racer effective January 1, 2024 (which is significantly offset by higher Other segment costs and expenses discussed below); offset by
Current report
•An $8 million increase in our NGL operations associated with higher fractionation and transportation revenue both due to higher volumes; partially offset by
Current report
•A $17 million decrease in the Haynesville Shale region primarily associated with lower gathering volumes from decreased producer activity;
Current report
Commodity margins increased $12 million primarily due to a $12 million increase in marketing margins and a $6 million increase from other sales activities both associated primarily with the Cureton Acquisition, partially offset by a $6 million decrease from our equity NGLs primarily due to an unfavorable change in net realized commodity pricing.
Current report
Other segment costs and expenses increased primarily due to higher operating expenses including those resulting from the DJ Basin Acquisitions.
Current report
•A $16 million decrease in the Haynesville Shale region primarily due to lower gathering volumes from decreased producer activity;
Current report
•An $8 million favorable Other segment costs and expenses related to lower corporate costs; partially offset by
Current report
•A $7 million favorable change in Other segment costs and expenses related to lower corporate costs.
Current report
On August 1, 2024, we completed the Discovery Acquisition for $170 million. Also, on August 1, 2024, we completed the sale of certain equity-method investments for $160 million (see Note 11 – Subsequent Events).
Removed paragraphs (5)
Previous report
Overview of Three Months Ended March 31, 2024
Previous report
Transmission & Gulf of Mexico
Previous report
The Product sales and service revenues – commodity consideration decrease primarily consists of:
Previous report
•Lower equity NGL sales and commodity consideration revenues primarily due to lower prices substantially offset by higher non-ethane volumes;
Previous report
Transmission & Gulf of Mexico
Reworded paragraphs (51)
Previous wording
•Transmission & Gulf of Mexico is comprised of our interstate natural gas pipelines, Transco, Northwest Pipeline, and MountainWest, and their related natural gas storage facilities, as well as natural gas gathering and processing and crude oil production handling and transportation assets in the Gulf Coast region, including a 51 percent interest in Gulfstar One, a 50 percent equity-method investment in Gulfstream, and a 60 percent equity-method investment in Discovery. Transmission & Gulf of Mexico also includes natural gas storage facilities and pipelines providing services in north Texas, and also in Louisiana and Mississippi related to the January 2024 Gulf Coast Storage Acquisition (see Note 3 – Acquisitions and Divestitures).
Current wording
•Transmission & Gulf of Mexico is comprised of our interstate natural gas pipelines, Transco, Northwest Pipeline, and MountainWest, and their related natural gas storage facilities, as well as natural gas gathering and processing and crude oil production handling and transportation assets in the Gulf Coast region, including a 51 percent interest in Gulfstar One, a 50 percent equity-method investment in Gulfstream, and a 60 percent equity-method investment in Discovery (see Note 11 – Subsequent Events). Transmission & Gulf of Mexico also includes natural gas storage facilities and pipelines providing services in north Texas, and also in Louisiana and Mississippi related to the January 2024 Gulf Coast Storage Acquisition (see Note 3 – Acquisitions and Divestitures).
Previous wording
Net income (loss) attributable to The Williams Companies, Inc. for the three months ended March 31, 2024, decreased $295 million compared to the three months ended March 31, 2023. Further discussion of our results is found in this report in the Results of Operations.
Current wording
Net income (loss) attributable to The Williams Companies, Inc. for the six months ended June 30, 2024, decreased $354 million compared to the six months ended June 30, 2023. Further discussion of our results is found in this report in the Results of Operations.
Previous wording
In January 2023, we received approval from the FERC for the project to expand Transco’s existing natural gas transmission system to provide incremental firm transportation capacity from receipt points in northeastern Pennsylvania to multiple delivery points in Pennsylvania, New Jersey, and Maryland. We placed approximately half of the project into service in the fourth quarter of 2023 and plan to place the remainder of the project into service as early as the fourth quarter of 2024, assuming timely receipt of all necessary regulatory approvals. The project is expected to increase capacity by 829 Mdth/d.
Current wording
In January 2023, we received approval from the FERC for the project to expand Transco’s existing natural gas transmission system to provide incremental firm transportation capacity from receipt points in northeastern Pennsylvania to multiple delivery points in Pennsylvania, New Jersey, and Maryland. We placed approximately half of the project into service in the fourth quarter of 2023 and placed the remainder of the project into service in August 2024. The project increased capacity by 829 Mdth/d.
Previous wording
On January 3, 2024, we closed on the acquisition of 100 percent of a strategic portfolio of natural gas storage facilities and pipelines, located in Louisiana and Mississippi, from Hartree Partners LP for $1.95 billion. The purpose of this acquisition, which is reported in the Transmission & Gulf of Mexico segment, is to expand our natural gas storage footprint in the Gulf Coast region. The Gulf Coast Storage Acquisition was funded with cash on hand and $100 million of deferred consideration (see Note 3 – Acquisitions and Divestitures).
Current wording
On January 3, 2024, we closed on the acquisition of 100 percent of a strategic portfolio of natural gas storage facilities and pipelines, located in Louisiana and Mississippi, from Hartree Partners LP for $1.95 billion. The purpose of this acquisition, which is reported in the Transmission & Gulf of Mexico segment, was to expand our natural gas storage footprint in the Gulf Coast region. The Gulf Coast Storage Acquisition was funded with cash on hand and $100 million of deferred consideration (see Note 3 – Acquisitions and Divestitures).
Previous wording
In 2024, our operating results are expected to benefit from the recent Gulf Coast Storage and DJ Basin acquisitions. We also anticipate increases resulting from Transmission & Gulf of Mexico expansion projects, including the Regional Energy Access project, and annual inflation-based rate increases across our gathering and processing business. These increases are partially offset by lower expected Gas & NGL Marketing Services results, the absence of realized hedge gains captured in 2023, and a decrease in expected volumes primarily in the Appalachian Basin associated with a lower expected commodity price environment.
Current wording
In 2024, our operating results are expected to benefit from the recent Gulf Coast Storage and DJ Basin acquisitions. We also anticipate increases resulting from Transmission & Gulf of Mexico expansion projects, including the Regional Energy Access project, and annual inflation-based rate increases across our gathering and processing business. These increases are partially offset by lower expected Gas & NGL Marketing Services results, the absence of realized hedge gains captured in 2023 in the West, and a decrease in expected volumes primarily in the Appalachian and Haynesville basins associated with a lower expected commodity price environment.
Previous wording
In June 2021, we reached an agreement with two third-parties to provide offshore natural gas gathering and transportation services as well as onshore natural gas processing services. The project expands our existing Gulf of Mexico offshore infrastructure via a 5-mile offshore lateral pipeline from the Shenandoah platform to Discovery’s existing Keathley Canyon Connector pipeline, adds onshore processing facilities at Larose, Louisiana to handle the expected rich Shenandoah production, and the natural gas liquids will be fractionated and marketed at Discovery’s Paradis plant in Louisiana. We plan to place the project into service in the fourth quarter of 2024.
Current wording
In June 2021, we reached an agreement with two third-parties to provide offshore natural gas gathering and transportation services as well as onshore natural gas processing services. The project expands our existing Gulf of Mexico offshore infrastructure via a 5-mile offshore lateral pipeline from the Shenandoah platform to Discovery’s existing Keathley Canyon Connector pipeline, adds onshore processing facilities at Larose, Louisiana to handle the expected rich Shenandoah production, and the natural gas liquids will be fractionated and marketed at Discovery’s Paradis plant in Louisiana. We plan to place the project into service in the second quarter of 2025.
Previous wording
We plan to file an application with the FERC as early as the third quarter of 2024 for this project, which involves an expansion of Transco’s existing natural gas transmission system to provide incremental firm transportation capacity from receipt points in Virginia to delivery points in Virginia, North Carolina, South
Current wording
We plan to file an application with the FERC as early as the third quarter of 2024 for the project, which involves an expansion of Transco’s existing natural gas transmission system to provide incremental firm transportation capacity from receipt points in Virginia to delivery points in Virginia, North Carolina, South Carolina, Georgia, and Alabama. We plan to place the project into service as early as the fourth quarter of 2027, assuming timely receipt of all necessary regulatory approvals. The project is expected to increase capacity by 1,592 Mdth/d.
Previous wording
In June 2022, we announced our intention to construct new natural gas gathering assets which are expected to gather 1.8 Bcf/d of natural gas produced in the Haynesville Shale basin for delivery to premium markets, including Transco, industrial markets, and growing LNG export demand along the Gulf Coast. This project is expected to go into service in the second half of 2025.
Current wording
In August 2024, we began construction activities on new natural gas gathering assets which are expected to gather 1.8 Bcf/d of natural gas produced in the Haynesville Shale basin for delivery to premium markets, including Transco, industrial markets, and growing LNG export demand along the Gulf Coast. This project is expected to go into service in the second half of 2025.
Previous wording
In February 2023, we announced our agreement with a third party to facilitate natural gas production growth in the Haynesville basin. We plan to construct a greenfield gathering system in support of the third party’s 26,000-acre dedication. The system, once constructed, will provide natural gas gathering services to the third party. The third party has also agreed to a long-term capacity commitment on our Louisiana Energy Gateway project. This project is expected to go into service in the second half of 2025.
Current wording
In February 2023, we announced our agreement with a third party to facilitate natural gas production growth in the Haynesville basin. We plan to construct a greenfield gathering system in support of the third party’s 26,000-acre dedication. The system, once constructed, will provide natural gas gathering services to the third party. The third party has also agreed to a long-term capacity commitment on our Louisiana Energy Gateway project. This project is expected to go into service in the second quarter of 2025.
Previous wording
The following table and discussion is a summary of our consolidated results of operations for the three months ended March 31, 2024, compared to the three months ended March 31, 2023, and should be read in conjunction with the results of operations by segment, as discussed in further detail following this consolidated overview discussion.
Current wording
The following table and discussion is a summary of our consolidated results of operations for the three and six months ended June 30, 2024, compared to the three and six months ended June 30, 2023, and should be read in conjunction with the results of operations by segment, as discussed in further detail following this consolidated overview discussion.
Previous wording
The net sum of Product sales and service revenues – commodity consideration, Product costs and net processing commodity expenses, and net realized gains and losses on commodity derivatives related to sales of product and shrink gas purchases for our processing plants for our reportable segments comprise our Commodity margins. Service revenues - commodity consideration represent payments we receive in the form of commodities for processing services provided. Most of these commodity volumes are sold during the month processed and are offset within Product costs and net processing commodity expenses below. The sum of Product salesand net realized gains and losses on commodity derivatives related to our upstream operations comprise Net realized product sales.
Current wording
The net sum of Product sales and service revenues – commodity consideration, Product costs and net processing commodity expenses, and net realized gains and losses on commodity derivatives related to sales of product and shrink gas purchases for our processing plants for our reportable segments comprise our Commodity Margins. Service revenues - commodity consideration represent payments we receive in the form of commodities for processing services provided. Most of these commodity volumes are sold during the month processed and are offset within Product costs and net processing commodity expenses. The sum of Product sales and net realized gains and losses on commodity derivatives related to our upstream operations comprise Net realized product sales.
Previous wording
We experience significant earnings volatility from the fair value accounting required for the derivatives used to hedge a portion of the economic value of the underlying transportation and storage capacity portfolios as well as upstream-related production. However, the unrealized fair value measurement gains and losses are generally offset by valuation changes in the economic value of the underlying production or transportation and storage capacity contracts, which is not recognized until the underlying transaction occurs.
Current wording
We experience significant earnings volatility from the fair value accounting required for the derivatives used to hedge a portion of the economic value of the underlying transportation and storage capacity portfolios as well as upstream-related production. However, the unrealized fair value measurement gains and losses are generally offset by valuation changes in the economic value of the underlying production or transportation and storage capacity contracts, which are not recognized until the underlying transaction occurs.
Previous wording
•Lower marketing prices and volumes for our NGL marketing activities; and
Current wording
•Higher non-ethane prices, partially offset by lower ethane volumes for our NGL marketing activities.
Previous wording
Operating and maintenance expenses increased primarily related to operating costs of the assets acquired in the November 2023 DJ Basin Acquisitions, the January 2024 Gulf Coast Storage Acquisition, and the February 2023 MountainWest Acquisition.
Current wording
Operating and maintenance expenses increased primarily due to operating costs of the assets acquired at our West and Transmission & Gulf of Mexico segments.
Previous wording
Depreciation and amortization expenses increased primarily related to assets acquired in the Gulf Coast Storage Acquisition, the DJ Basin Acquisitions, and the MountainWest Acquisition.
Current wording
Depreciation and amortization expenses increased primarily related to assets acquired at our West and Transmission & Gulf of Mexico segments.
Previous wording
Equity earnings (losses) changed unfavorably primarily due to the consolidation of RMM following our acquisition of the remaining ownership interest in November 2023.
Current wording
Equity earnings (losses) changed unfavorably primarily due to the consolidation of RMM following our acquisition of the remaining ownership interest in November 2023 and a decrease at Blue Racer, partially offset by favorable results at OPPL.
Previous wording
The increase in Interest expense was primarily due to our 2023 and 2024 debt issuances, and imputed interest on deferred consideration obligations related to our Gulf Coast Storage and DJ Basin Acquisitions, partially offset by 2023 and 2024 debt retirements (see Note 6 – Debt and Banking Arrangements).
Current wording
The increase in Interest expense was primarily due to our 2023 and 2024 debt issuances, and imputed interest on deferred consideration obligations related to our DJ Basin and Gulf Coast Storage acquisitions, partially offset by 2023 and 2024 debt retirements (see Note 6 – Debt and Banking Arrangements).
Previous wording
Service revenues increased primarily due to higher volumes from acquisitions at our Transmission & Gulf of Mexico and West segments, and higher revenues associated with expansion projects at our Transmission & Gulf of Mexico segment.
Current wording
Service revenues increased primarily due to higher volumes from the January 2024 Gulf Coast Storage and February 2023 MountainWest acquisitions at our Transmission & Gulf of Mexico segment and the November 2023 DJ Basin Acquisitions at our West segment, and higher revenues associated with an expansion project at our Transmission & Gulf of Mexico segment.
Previous wording
•Higher net natural gas marketing sales primarily due to higher sales and purchases volumes substantially offset by lower net prices and higher storage costs; and
Current wording
•Higher net natural gas marketing sales primarily due to higher sales and purchases volumes substantially offset by lower net prices and higher storage costs;
Previous wording
•Higher product sales from our upstream operations primarily due to higher production volumes substantially offset by lower commodity prices.
Current wording
•Higher product sales from our upstream operations primarily due to higher production volumes, partially offset by lower commodity prices. These sales are partially offset by
Previous wording
•Lower NGL marketing sales primarily due to lower prices and lower volumes; partially offset by
Current wording
•Lower NGL marketing sales primarily due to lower ethane volumes, partially offset by higher non-ethane prices.
Previous wording
•Lower shrink gas purchases associated with our equity NGL production activities due to lower natural gas prices.
Current wording
•Lower shrink gas purchases associated with our equity NGL production activities due to lower natural gas prices and volumes;
Previous wording
•A $50 million increase due to the acquisition of Gulf Coast Storage assets in January 2024 primarily in storage revenues (see Note 3 – Acquisitions and Divestitures);
Current wording
•A $58 million increase due to the acquisition of Gulf Coast Storage assets in January 2024 primarily in storage revenues (see Note 3 – Acquisitions and Divestitures);
Previous wording
•A $13 million decrease due to the sale of certain liquids pipelines in the Gulf Coast region in September 2023 primarily in transportation revenues (see Note 3 – Acquisitions and Divestitures).
Current wording
•A $12 million decrease due to the sale of certain liquids pipelines in the Gulf Coast region in September 2023 primarily in transportation revenues (see Note 3 – Acquisitions and Divestitures).
Previous wording
•A favorable change in equity AFUDC as a result of increased capital expenditures at Transco;
Current wording
•A favorable change in equity AFUDC primarily as a result of increased capital expenditures at Transco;
Previous wording
•Higher operating expenses related to our Gulf Coast Storage and MountainWest Acquisitions; substantially offset by lower costs related to timing and scope of general maintenance activities primarily at Transco and the sale of certain liquids pipelines in the Gulf Coast region.
Current wording
•Higher operating expenses and administrative costs including higher operating, acquisition and transition costs related to our Gulf Coast Storage Acquisition and higher costs related to timing and scope of general maintenance activities; substantially offset by significantly lower acquisition and transition costs related to our MountainWest Acquisition (see Note 3 – Acquisitions and Divestitures); a gain associated with MountainWest cash-out sales; and the sale of certain liquids pipelines in the Gulf Coast region.
Previous wording
•A $35 million increase due to the acquisition of MountainWest in February 2023 primarily in transportation and storage revenues (see Note 3 – Acquisitions and Divestitures);
Current wording
•A $37 million increase in transportation and storage revenues at MountainWest primarily due to the acquisition in February 2023;
Previous wording
•A $9 million increase in revenues in the Utica Shale region primarily related to higher gathering rates resulting from the prior year annual cost of service contract redetermination at Cardinal, partially offset by lower volumes at Flint; partially offset by
Current wording
•A $24 million decrease in revenues in the Utica Shale region primarily related to the timing of recognition of the 2023 cost of service rate increase at Cardinal associated with the annual redetermination of those rates as well as lower volumes at Flint and Cardinal;
Previous wording
•A $19 million increase in gathering revenues at Susquehanna Supply Hub primarily related to higher volumes associated with the Susquehanna Supply Hub gathering expansion project placed in-service in the fourth quarter of 2023 as well as escalated rates;
Current wording
•An $8 million decrease in gathering revenues at Susquehanna Supply Hub primarily related to lower volumes partially offset by escalated rates.
Previous wording
Northeast G&P Modified EBITDA increased primarily due to higher Service revenues and higher Proportional Modified EBITDA of equity-method investments, partially offset by higher Other segment costs and expenses.
Current wording
Northeast G&P Modified EBITDA was consistent with the prior year primarily due to higher Other segment costs and expenses, partially offset by higher Proportional Modified EBITDA of equity-method investments.
Previous wording
Other segment costs and expenses increased primarily due to higher employee-related costs as well as increased corporate allocations.
Current wording
Other segment costs and expenses increased primarily due to higher employee-related costs as well as increased corporate allocations of support costs related to us assuming operatorship of Blue Racer effective January 1, 2024 (substantially offset by higher Service revenues discussed above).
Previous wording
Proportional Modified EBITDA of equity-method investments increased at Aux Sable Liquid Products LP primarily due to the terms of the new product marketing agreement, and at Blue Racer primarily driven by higher gathering and processing volumes. Additionally, Appalachia Midstream Investments increased primarily driven by higher gathering rates offset by lower volumes at the Bradford Supply Hub. The increase was partially offset by a decrease at Laurel Mountain due to lower commodity-based gathering rates and lower volumes.
Current wording
Proportional Modified EBITDA of equity-method investments increased at Aux Sable Liquid Products LP primarily due to the terms of the new product marketing agreement. Additionally, Appalachia Midstream Investments increased primarily driven by higher gathering rates partially offset by lower volumes at the Bradford Supply Hub. The increase was partially offset by a decrease at Blue Racer primarily driven by lower gathering volumes offset by higher processing volumes.
Previous wording
West Modified EBITDA increased primarily due higher Service revenuesand Commodity margins, partially offset by higher Other segment costs and expensesand an unfavorable change in Net realized gain (loss) from commodity derivatives relating to service revenues.
Current wording
West Modified EBITDA increased primarily due to higher Service revenuesand Commodity margins, partially offset by higher Other segment costs and expensesand an unfavorable change in Net realized gain (loss) from commodity derivatives relating to service revenues.
Previous wording
•A $71 million increase in the DJ Basin region primarily associated with the DJ Basin Acquisitions in November 2023 (see Note 3 – Acquisitions and Divestitures);
Current wording
•A $69 million increase in the DJ Basin region associated with the DJ Basin Acquisitions in November 2023 (see Note 3 – Acquisitions and Divestitures);
Previous wording
•A $12 million increase in our other NGL operations associated with higher fractionation revenue due to higher volumes and higher storage fees primarily due to a new contract; partially offset by
Current wording
•A $20 million increase in our other NGL operations associated with higher fractionation and transportation revenue due to higher volumes and higher storage fees primarily due to a new contract;
Previous wording
•A $13 million increase in the Wamsutter region primarily associated with higher gathering volumes from increased producer activity as well as higher volumes associated with the absence of weather-related events in first-quarter 2023;
Current wording
•A $17 million increase in the Wamsutter region primarily associated with higher gathering volumes from increased producer activity as well as higher volumes associated with the absence of weather-related events in first-quarter 2023; partially offset by
Previous wording
•A $9 million decrease in the Eagle Ford Shale region primarily due to lower gathering volumes as well as lower MVC revenues.
Current wording
•An $18 million decrease in the Eagle Ford Shale region primarily due to lower MVC revenues as well as lower gathering volumes;
Previous wording
•A $10 million decrease in the Barnett Shale region primarily due to lower gathering rates driven by unfavorable commodity pricing;
Current wording
•A $14 million decrease in the Barnett Shale region primarily due to lower gathering rates driven by unfavorable commodity pricing.
Previous wording
Commodity margins increased $36 million primarily due to a $30 million increase from our equity NGLs due to a favorable change in net realized commodity pricing primarily for shrink gas purchases and a $5 million increase from other sales activities associated primarily with the Cureton Acquisition.
Current wording
Commodity margins increased $48 million primarily due to a $24 million increase from our equity NGLs due to a favorable change in net realized commodity pricing primarily for shrink gas purchases and a $13 million increase in marketing margins as well as an $11 million increase from other sales activities, both associated primarily with the Cureton Acquisition.
Previous wording
Other segment costs and expenses increased primarily due to higher operating expenses related to the DJ Basin Acquisitions, the absence of favorable contract settlements in first-quarter 2023, and an unfavorable change in our net imbalance liability due to changes in pricing.
Current wording
Other segment costs and expenses increased primarily due to higher operating and employee-related expenses including those resulting from the DJ Basin Acquisitions, the absence of favorable contract settlements in first-quarter 2023, and an unfavorable change in our net imbalance liability due to changes in pricing.
Showing the first 40 of 51 pairs. Open the source sections for the rest.
Rearranged current paragraphs (25)
Current report — wording carried from elsewhere
•Higher net natural gas marketing sales and purchases volumes, partially offset by lower net prices;
Current report — wording carried from elsewhere
The Product costs and net processing commodity expenses decrease primarily consists of:
Current report — wording carried from elsewhere
Equity earnings (losses) changed unfavorably primarily due to the consolidation of RMM following our acquisition of the remaining ownership interest in November 2023 and a decrease at Blue Racer, partially offset by favorable results at OPPL.
Current report — wording carried from elsewhere
The increase in Interest expense was primarily due to our 2023 and 2024 debt issuances, and imputed interest on deferred consideration obligations related to our DJ Basin and Gulf Coast Storage Acquisitions, partially offset by 2023 and 2024 debt retirements (see Note 6 – Debt and Banking Arrangements).
Current report — wording carried from elsewhere
Provision (benefit) for income taxes changed favorably primarily due to lower pre-tax income. See Note 5 – Provision (Benefit) for Income Taxes for a discussion of the effective tax rate compared to the federal statutory rate for both periods.
Current report — wording carried from elsewhere
Transmission & Gulf of Mexico Modified EBITDA increased primarily due to higher Service revenues and lower Other segment costs and expenses.
Current report — wording carried from elsewhere
•A $108 million increase due to the acquisition of Gulf Coast Storage assets primarily in storage revenues;
Current report — wording carried from elsewhere
•A $40 million increase in Transco’s revenues associated with the Regional Energy Access expansion project;
Current report — wording carried from elsewhere
•A $25 million decrease due to the sale of certain liquids pipelines in the Gulf Coast region primarily in transportation revenues.
Current report — wording carried from elsewhere
Other segment costs and expenses decreased primarily due to:
Current report — wording carried from elsewhere
•A favorable change in equity AFUDC primarily as a result of increased capital expenditures at Transco;
Current report — wording carried from elsewhere
•A favorable change in the deferral of ARO-related depreciation at Transco; partially offset by
Current report — wording carried from elsewhere
Proportional Modified EBITDA of equity-method investments decreased at Blue Racer primarily driven by lower gathering volumes. Additionally, Appalachia Midstream Investments decreased primarily driven by lower volumes significantly offset by higher gathering rates at the Bradford Supply Hub.
Current report — wording carried from elsewhere
•An $11 million increase in gathering revenues at Susquehanna Supply Hub primarily related to escalated rates partially offset by lower volumes;
Current report — wording carried from elsewhere
•A $15 million decrease in revenues in the Utica Shale region primarily related to lower volumes at Flint and Cardinal;
Current report — wording carried from elsewhere
•A $9 million decrease in the Eagle Ford Shale region primarily due to lower MVC revenues and lower gathering volumes.
Current report — wording carried from elsewhere
West Modified EBITDA increased primarily due higher Service revenuesand Commodity margins, partially offset by higher Other segment costs and expenses, an unfavorable change in Net realized gain (loss) from commodity derivatives relating to service revenues, and lower Proportional Modified EBITDA of equity-method investments.
Current report — wording carried from elsewhere
•A $141 million increase in the DJ Basin region associated with the DJ Basin Acquisitions in November 2023 (see Note 3 – Acquisitions and Divestitures);
Current report — wording carried from elsewhere
Net realized gain (loss) from commodity derivatives relating to service revenues reflects an unfavorable change in settled commodity prices relative to our natural gas hedge positions.
Current report — wording carried from elsewhere
Proportional Modified EBITDA of equity-method investments decreased primarily due to lower proportional results as RMM was consolidated as of November 30, 2023, partially offset by higher volumes at OPPL.
Current report — wording carried from elsewhere
Gas & NGL Marketing Services Modified EBITDA decreased primarily due to an unfavorable change in Net unrealized gain (loss) from commodity derivative instruments.
Current report — wording carried from elsewhere
The change in Net unrealized gain (loss) from commodity derivative instruments within Segment revenues and Net processing commodity expenses from 2023 is primarily due to a change in forward commodity prices relative to our hedge positions in 2024 compared to 2023.
Current report — wording carried from elsewhere
•A $12 million increase in Net realized product sales from our upstream operations primarily due to higher production volumes;
Current report — wording carried from elsewhere
Modified EBITDA of other business activities increased primarily due to:
Current report — wording carried from elsewhere
On January 3, 2024, we acquired 100 percent of a strategic portfolio of natural gas storage facilities and pipelines, located in Louisiana and Mississippi for $1.95 billion. The acquisition was funded with cash on hand and $100 million of deferred consideration that does not accrue interest and is payable one year from the acquisition date.
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Previous report — wording carried elsewhere
Carolina, Georgia, and Alabama. We plan to place the project into service as early as the fourth quarter of 2027, assuming timely receipt of all necessary regulatory approvals. The project is expected to increase capacity by 1,592 Mdth/d.