Williams Partners L.P. (NYSE:WPZ)
2013 Barclays Capital CEO Energy-Power Conference Call
September 12, 2013 13:00 ET
Alan Armstrong - President and Chief Executive Officer
Don Chappel - Chief Financial Officer
Rick Gross - Barclays Capital
Rick Gross - Barclays Capital
Okay. Next on the agenda is Williams Companies and Partners. Over the last couple of years, the company has spent a lot of time and effort repositioning itself. It has not always gone smoothly, I am sure as they would like, but at the end of the day where we are today, it’s kind of like you have been anticipating a big meal. I mean, the table to me is set. You have established an extremely broad and deep position in the Marcellus. I think as you sit through the conference, Marcellus comes up frequently as being a place you want to be, not just today but for a long time. They have established a capital light, broad exposure into a variety of shale plays a levered exposure through ACMP. Post Macondo, we have got revival in the Gulf. We have set the table down there with ownership of corridors, technology. Revival of the U.S. petchem biz, we are at the threshold of harvesting some cash, setting that table.
And finally, we are going to migrate slowly, but surely from coal to gas. Again, we have set the table. The bell is ringing. We are ready to eat. So we are very, very happy to have senior management from Williams in the person of Alan Armstrong, President, CEO; and Don Chappel, CFO to update us on exactly what we are going to be able to eat.
Alan Armstrong - President and Chief Executive Officer
Alright, thank you Rick, and good afternoon to everybody. This is certainly a very exciting time to be talking about where Williams is positioned in this industry. And I think this first picture here is actually pretty indicative of what’s going on only this mosaic needs to be with many more panels, but we are in a major infrastructure build out. The can that you see there on the left that is one of the cans for the Gulfstar floating production, the one in the middle is pipeline laying up in the Northeast and the picture you see on the right there is the expansion ongoing there at our Geismar facility. And I tell you that you could take many more of these pictures from around our system in terms of all the major infrastructure build-out that we have got going on.
I am going to move past these forward-looking statements and certainly you need to familiarize yourself with the risks there. We have got it in the handout. Looking to our position today and our strategic intent within Williams today, we get asked a lot around why aren’t you guys playing in the crude oil space? That’s a great place to play. Why are you guys so hung on the natural gas? And I will just tell you that we have so much opportunity within the natural gas space, and we believe that having scale in these positions is a much better way to make long-term superior returns in the space. If all you want to do is go out and invest capital at a cost of capital and make those kind of returns, there is plenty of places you can play and spread yourself thin. If you really want to make a superior long-term return, you really need to have the scale positions and competitive advantages in these basins. And we believe that’s exactly what we are doing is continuing to build the competitive advantages that we have enjoyed for many years.
And so I would just tell you our strategy is very consistent. It hasn’t moved a lot. We are very convicted to the natural gas space, because we think in the long-term that natural gas and natural gas products here in the U.S. are so undervalued up against world prices that we have a lot of infrastructure to install to be able to arbitrage the spread between U.S. natural gas prices and the products that that’s generating and the derivative products generating up against the world. And again that spread has to be arbitraged, but it takes a tremendous amount of infrastructure and large scale infrastructure like Williams is capable of developing to help arb that out. So this map is a nice picture. And it also includes in the dark red there that you see on that, it also includes some of the ACMP positions that interlace. And we certainly, as Rick pointed out, we have a very nice levered position against ACMP’s growth, and very excited about that business. Not just because of the high ramp in cash flow that we are going to see off of our GP position and our LP units there, given their $0.15 distribution rate on the LPs. Not just because of that, but because strategically it gives us a lot of leverage and puts us into this the kind of scale positions that we want to have from a strategic perspective.
The next few slides here are a picture of the U.S. gas supply growth and the commensurate NGL supply growth. And some interesting things to point out from this map, first of all, on the supply side here, you can see this going up to a little over 100 BCF in supply growth. And that seems almost unachievable, seems like a bridge too far perhaps unless you are actually out there in the industry and you are actually seeing the amount of investment and the capabilities of these resource plays that’s going on. And as well you can look back from 2005 when a lot of this tight gas and unconventional gas resources started being developed and look at the growth rate that we have already experienced. And with the right pricing signals, we are certainly going to see that continue.
An interesting thing to note on this slide and this particular slide is a Wood Mackenzie picture, but I can tell you there are a lot of consultants, that this looks the same from. The one thing that’s interesting to note here is the Rockies. If you look at that growth from ‘15 and beyond, the growth in the Northeast for everybody, it’s not a surprise to everybody that growth from ‘15 to 2030 is about 57%. The growth in the Rockies on that same time period is 65%. And we do believe to meet this kind of demand that we think is ultimately going to be there. The Rockies is going to have to play a big role in terms of producing gas into this space. So we are very excited to be in those two spaces. The other big area of growth there as you see is the Gulf Coast. And certainly we are positioned to a lesser degree as Williams there, and then access through its Eagle Ford position is exposed there as well. But I will tell you, those top two, the Rockies and the Northeast is where we are very well exposed and we are excited that we are.
On the demand side, this is how you get up to that 100 BCF a day. And I will tell you we get a lot of people doubting the demand growth, because they are not seeing it today. They are not seeing – it’s not showing up today, gas prices are low. I will tell you what these low gas prices are creating a lot of capital investment to take that demand, but it takes time. Just like it takes time on the supply side to build the infrastructure out, it also takes a lot of time on the demand side to build the infrastructure to consume this much gas.
So, you have got this – last year we got this big swing in demand that came from gas price being low enough to knock coal out and brought in extra demand, but that’s not a long-term sustainable piece of demand. What is going to be sustainable is when the power generation is converted, when these industrial plants come back. I think an interesting piece on the industrial growth here in this picture is that in 2015 we just get back to where we were in 2000 on the industrial side. So this is not a stretch by any stretch – anyway is this a stretch in terms of the industrial growth getting there. Everybody saw the Cove Point LNG announcement and we are glad to see that start to roll; the speed at which those permits are starting to roll. And we think that that’s going to play an important piece in the demand increase as well.
So I can tell you from a Williams’ perspective, we feel pretty bullish about the demand growth that’s coming, but we think there is going to be some impatience with it and people are going to be wondering where it is. And then we are going to be as usual. We are going to be behind the eight ball on getting all the infrastructure installed to connect all that demand to all that supply.
As I will show you in a little bit, the signals we are getting from the market on our big pipes like Transco is very, very intense. And we probably have a very unique picture there that a lot of folks in the industry don’t have, because we just happened to be in the corridors where a lot of that demand is being created, but we see it in terms of request for proposals from utilities, from power generators, from industrial plants. And so we are seeing those signals come in all the time in terms of that growth. And I will tell you that we are extremely well-positioned to capture a lot of that growth.
Moving to the NGLs, this is probably the more daunting picture here, because I will tell you that this is a tremendous amount of market that has to be developed for this kind of product. The good news is, is that these prices that we have today are well priced – are price well underneath the world prices. And so as long as supply is there, you would expect to see this growth. But I will tell you it is going to take a tremendous amount of infrastructure to be able to build out and be able to consume this much of the NGLs or export this much of the NGLs here in the U.S. and into international markets.
And that seems like again a pretty far stretch from where we are today. But when you talk to all the international companies that are coming to see us right now and recognize they have got to have this low cost product, they cannot build their business off of naphtha-based products anymore when the U.S. is sitting here with this very low cost product. It is exactly what’s going to drive this picture on the demand side. So I can tell you the math is pretty easy on the supply side in terms of how all the supply shows up. The question in our mind is how lumpy the demand side is going to build for this market. And I think that’s still yet to be determined.
The Marcellus and Utica, this is just a picture of the both the gas side and the liquid side. And you can see this liquid surge that is very, very impressive. Now, this is the liquids that would be available in the area if there were markets for the product. So, for instance, this has ethane – recoverable ethane in it. Today, there is no market for that recoverable ethane. And so if you see in 2012 there, you see the market at 180,000 barrels a day of NGLs. That’s what we could recover. It’s not what we have recovered. And so again the markets will have to develop for that, but this is a very conservative set of numbers in terms of the supply availability. And we dig through these numbers and understand them very well on a well count basis.
So I can tell you there is a lot of conservatism built into the number. But again, if the infrastructure doesn’t come along and the market signals aren’t there for the producers, this is not going to happen. And that’s a key role that Williams is going to need to play to get those market signals back to the producers. This is a picture of what we see on the building up for the Bluegrass Pipeline. And you can see here at the bottom there, the local propane demand, so that’s propane that we think stays there locally in the market. The C4+ fractionation capacity, so many of the C4+s today, so butanes and natural gasolines are getting fracked out. They are also though being railed a long ways out of there. The challenge is until there is a big raw make pipeline built in the area you have to locally fractionate it and then put it on rail to get it out of there. That is a very expensive and inefficient proposition if the market isn’t local. And today the market is – it’s grown. The supply sides are growing well past the market side.
An interesting number I think here though is that in July, the pad 1 plus Ohio NGL production on the C3+, so just for the propane plus was about 80,000 barrels a day. And by the end of this year, that is projected to be between 220,000 and 300,000 barrels a day. And that is going to absolutely begin to overwhelm these local markets. And what does that mean? That means you are going to be railing further and further and further away, more and more congested traffic from a rail perspective, and really starting to put a lot of pressure on the netbacks to producers in the area. And so one way or the other, an NGL solution has got to start to appear to give producers’ confidence to continue to drill, because they are not going to be realizing the kind of prices that they need to as these local markets become overwhelmed by degree of production that’s out there.
Our story is very sound in terms of our dividend growth, as long as we execute on these projects. And so I will tell you, at the Williams level and the WPZ level. We are intensely focused on executing on this list of projects right here. And these are our major projects there is a lot of smaller projects that are high return and small. But these are the big movers for our cash flow is right here. And proud to say there, you see the mid-south expansion was brought in on time there in 2Q of 2013.
The ethane project, which was one of our Petchem Services project was brought online in April and we made first deliveries to BASF in the Beaumont area. And that ethane pipeline stretches all the way now from Mont Belvieu all the way to Parity and through our Geismar complex. And so we have a very nice ethane distribution system now that’s now in service. And then the Northeast Supply Link project you can see there. We actually started part of the half of that up well ahead of schedule, and at the first part of August we put 125 million a day of that capacity in service. This is a very, very small issue I will tell you but pretty indicative what’s going on. The FERC actually allowed us normally, they won’t normally you have to get a whole project completed, before they will allow you to put capacity. So, this was a 250 million a day project. We had some of the loops already built in Pennsylvania, but we didn’t have some of the compression built in some of the more congested area in New Jersey. And the FERC allowed us because they were hearing so much noise from the producers about lack of capacity out of the Pennsylvania area, that the FERC allowed us to put half of that project in service early.
And so I think that’s indicative of how loud that is getting. This is at a time when pricing on the Leidy system had gotten to $0.47 an MCF. And so you see these basis differentials out there today that will show a Dominion South number, they will show a Transco Zone 6 number. If you have capacity to get to those locations that’s the price you receive. If you don’t have capacity to get to those locations, you will take the $0.47 or you will shut your gas in. We are seeing more and more and more of that go on out there and it’s unfortunate, but this is, we have learned this lesson. And how many basins we’ve learned this, I don’t know. But we always produce, produce, produce, produced until it’s chronic enough that people have to step up and take the capacity to get their gas out. We are at that stage right now. Some companies have done a lot better job than others. I would tell you people like Cabot have done a great job of their capacity planning and working with us closely and building out the infrastructure. Other companies just hope for the best and in an area where everybody else is hoping for the best, that doesn’t work out very often. And so we are very well positioned to continue to expand our Atlantic Sunrise, which is not on this page, is in open season. I can tell you there is a tremendous amount of demand for that.
One of the key delivery points for Atlantic Sunrise is Cove Point. So, we were really excited today to see the Cove Point LNG project get approved and a lot of shippers that are very interested in making deliveries to that location. So anyway, this is really what is critical for Williams and this is – if you are a long-term investor with us, this is what you ought to keep your eye on is how well we are executing on this list of projects and this effort. I will also tell you though, that there is a lot of projects that are in development stage that are not on this page that go well beyond the 15, 16, and 17 timeframe in terms of continued growth in our business.
This is a picture now of the Marcellus and the Utica area and, as you can see here between Williams and our joint ventures or our economic interest in the area, about 4.7 million acres in the Marcellus and Utica that are dedicated to us that we are exposed to. Obviously, there’s more acres than what is dedicated to us that we are exposed to, but this is just the acreage that is dedicated to us under long-term contracts. You can see the CapEx guidance going forward in terms of the remaining build out against this. And again, that is just the Williams piece of that. That does not include the AC&P investments that we are levered to very nicely as well.
I can tell you this, this area is developing so rapidly, and it is the infrastructure constraints are so complex that having the kind of joint ventures that we do is actually even though it’s very complex to manage, it’s very important. Because we have a very good feel for what is going on in all of these plays around us. We understand where the infrastructure constraints are going to show up and I will tell you we have as good an understanding about where some of the problems are out here as anybody in terms of what infrastructure solutions need to come to bear on this area.
Let me back up here, first of all that the three areas that Williams is directly exposed to right now on the cash flow side, Susquehanna area, that is with Cabot, WPX, Carrizo, and a little bit of Southwestern Energy. That area is doing extremely well, and we are proud to say that we think we’ve been a big part of helping Cabot be successful in the area and frankly, the biggest challenge I’d say we have as a cooperating partners on that is that they’ve gotten so good at developing these wells that, even though they’ve done a really nice job on the planning side, their wells are coming in bigger and bigger and bigger. And they are going to outpace their planning side from the capacity. So, we are having to work extremely hard to stay out in front of them, not because we are behind on permitting or anything else. It’s just there – it’s a really great problem to have. Their wells are performing better than we were they thought and so great things going on up there in the Northeast.
Constitution Pipeline projects going very well and we are making great strides on that. Absolutely critical, though, if you are thinking about not only the Constitution Pipeline revenues, which we only have a little over 40% of but the impact that that would have to this area if that gets delayed, that’s the kind of thing you’ve got to keep your eye on because we have got to – if we don’t have the take-away for those areas, we will see drilling in these areas slowdown, if there is not adequate take-away from the area.
So again very critical, the Leidy Southeast project is another project that is critical to the area to provide another 700 million a day of take-away capacity from the area on top of the Northeast Supply Link which we just are putting in service, which is 250 million a day. So just out of this Northeast area right now, Williams is building almost 2 BCF a day of take-away capacity out of this area. In addition to that, we have the Atlantic Sunrise project that is out in open season right now that would add about 1 BCF to 1.5 BCF a day of additional take-away capacity out of the area. So, we are extremely well-positioned. We are not having to take a lot of risk on these investments and because we are typically going right down our own corridor and we’ve got the benefit of the existing capacity to leverage in the area.
Moving to the Southwest part of PA, you can see the blue there, the Laurel Mountain area and that area is our joint venture with Chevron and I would say that Chevron has been pretty deliberate and pretty calculated about the way they want to develop the resource. They certainly recognize and pay a lot of attention to things like infrastructure constraints, and they certainly don’t want to drill out beyond the infrastructure constraints. I will tell you that we have the capital in place now to be able to handle their production for the next two or three years and so this area is going to start to generate a lot of free cash flow for us because we’ve made the big capital investments and really what we are limited to now is a little bit of well connect dollars, but for the most part, the big money has been spent and we’ll see a lot of free cash flow coming back out of the Laurel Mountain area.
In addition to that, we have – from the Laurel Mountain trade, we have a very large position of acreage that we used to think – when we did the deal with Atlas, we really didn’t think it was worth much, we had about 660,000 acres dedicated to us under the Atlas deal and about 250,000 of that was in this core Marcellus area, but a lot of the acreage that we didn’t think was worth anything at the time round up being over the Utica. And so we have a pretty nice set of dedication that Chevron now holds, that we hold the processing rights to that extends into the Northwest PA area as well as into the Utica.
And then moving further to the southwest is our Ohio Valley Midstream. I will go to the next slide to layout the picture there. This is pretty well the picture we showed at the analyst day in May, just showing the lists of critical projects that we have to execute on to be able to stabilize the system. I will tell you our – Don and I met with the team up here, I guess, Tuesday of this week and went through in some detail where we are on these projects. The reliability has gone from numbers that were in the 80% range due to a lot of liquid constraint problems on the system up to now about 98.5% on the fractionator and on the gathering system. So we are really excited to see or – to be able to start to stabilize some of this.
I will tell you though that we still have a lot of work left to get the Moundsville frac up, that’s the 30,000 barrels a day. We are completely full at our Moundsville 1, which is a 12,000 barrel a day fractionator. We are completely full with that fractionator and are having to start to spill out raw make into the rails rather than being able to fractionate that product. What that means for our producers is lower netbacks because they are not getting the full value if we are having to rail it out of there and frac it somewhere else. They are getting some pretty substantial discounts to the market. And so that’s a very bad thing in terms of them making their drilling plan. So it is absolutely critical that we get the condensate stabilization units up and running, and the Moundsville frac, the second train up and running as well. Again, making good progress on that, but it is certainly a critical issue right now.
I think one of the most important issues for us right now in this area is the netback that we are seeing producers get on both their gas and their NGLs. Very low pricing that they are actually realizing back to the netback by the time they pay us fees, by the time they are taking the discount on the product all the way into Belvieu. And I will tell you, as we continue to ramp up the NGL production out of the Utica and out of the Marcellus, this issue is only going to get worse until a major piece of infrastructure like Bluegrass or something like that comes along. And so we are working hard to provide some solutions to that. But I’d tell you, I think that’s the risk right now to this area and any of the other rich gas areas up here is the amount of new product that is coming on into the area and the signals that that’s going to send to producers.
Moving on to the Atlantic Gulf and particularly the expansion that we are seeing on the Transco system, this couldn’t be a better picture of good, solid economic return for our investors. These projects, many of these are cost of service projects, so we are not taking volume risk, we are not taking construction risk and they are plentiful, as you can see. And I will tell you that these are only the projects on here in blue. These are only the projects that are under construction and fully contracted. The green, for instance are projects that have – like Atlantic Sunrise, for instance very early in the stage of development on that. The Hillabee expansion, that’s the lease for Sable Trail, that is contracted, but yet it’s not yet under construction. And the Dalton lateral, which would serve Northern Georgia off of our system from Marcellus supplies, we thought we had lost that project, we stuck to our guns on our pricing and weren’t willing to take anymore risk on the project, because frankly we have plenty of projects and the project came back to us. And so I think that speaks well of the discipline in the market today. And it also speaks well to our capital allocation process today as well.
We also passed on the Sable Trail project in exchange for getting that lease obligation from Hillabee as well as an option to invest later once the volumes and the construction costs are better known on that project. So we are in a position of allocating to better and better projects in our portfolio. We are not in a position of needing to go take a bunch of risk to invest today. And nowhere is that better understood than looking at all the different expansions that we have on Transco. If you look at what that means, this is the picture now of just – this doesn’t include Northwest Pipeline and a few of our other smaller interstate pipelines. This is just the Eastern Seaboard for us here. And you can see going up to 13.4 BCF a day of capacity, and you can see how quickly that ramps. If you look beyond this, it keeps going up post ’15 as well. And this is nothing at all that is speculative. This is contracted business. In fact, it doesn’t include some of the contracted business because it’s beyond the period. But this kind of growth is fully contracted. Much of it is well underway in terms of construction, and so this kind of growth in demand is going to continue to ramp up on the Transco system.
Moving to the Gulf of Mexico and the deepwater really exciting growth going on in this space right now, you can see here the two major deepwater spars that we have out there, the Devils Tower spar and the Tubular Bells spar that we own. Chevron owns the Blind Faith spar, but we own the pipe, the oil and gas pipelines that come off that. So, we are extremely well exposed to this area and we really liking what we are seeing in terms of the tiebacks. And so you can see we have now contracted the Kodiak tieback, and that’s a very – the way these tiebacks work is that we can basically price these at avoided cost to a producer.
So, if a producer finds a prospect in and around one of our spars and we have capacity to bring it across, think about what you would rather do if you are a producer. If you want to spend three or four years building a billion-dollar spar and the pipelines or do you want to pay Williams 10 bugs a barrel and 250 for the gas and be able to turn your production on very quickly. It’s a very, very strong value proposition for the producer. But it’s also a very strong value proposition for us because it doesn’t mean new capital. It just means incremental cash flow against our existing assets out there.
So Kodiak tieback and we also have the Gunflint prospect, I would point out on this is one of the very high profitability tiebacks right now to our Tubular Bells prospect. And as well Taggert, as well, will likely be a tieback that we will be announcing here in terms of conclusion very soon. So, these are big numbers in terms of what these projects mean. If you take a typical prospect like this is probably 40,000 barrels a day and our rate on the spar is anywhere from the $8 to $12 range and 250 on the gas. And then in addition to that, we get the downstream pipeline revenues and, again, very little capital invested. So, really strong leverage in terms of incremental cash flows to our business. And I will tell you this is one of the areas I think is probably least appreciated, perhaps, by the Williams investor today.
On Geismar, the things are going very well on Geismar. Every day that goes by, I will tell you that another issue of risk goes away and we continue I would tell you that our April 1 date assumed a lot of worst-case situations. And a lot of those worst-case issues are being resolved. So, for instance, the major rotating equipment that was inside the heat-affected zone from the blast has all been inspected, and it all can be repaired. That’s a huge issue because that means we’re not waiting on equipment orders and things that would be in a queue behind somebody else. The propane propylene tower, the integrity the structural integrity has been checked out and is approved. The only remaining integrity issue we’re dealing with right now is the trays in the tower. And our initial testing on that says that the trays are level and perfectly fine, and we won’t have to do any repairs to the internals of the tower as well. And that was the critical path issue in our April 1 assumption. And so I would just tell you we are becoming more and more confident about the schedule on the repair.
And that was the critical path for having both the expansion and the repair up for April 1. And so a lot of great work by our team there, and couldn’t be prouder of the way that the organization has pulled together past an incredible tragedy personally. Because, we do take our safe operations extremely seriously, and this was a huge letdown, I will tell you, for the entire organization. It probably hit us harder than about anything could have in terms of losing two employees and having this kind of catastrophe in an otherwise spectacular, absolutely spectacular record of safety at this plant. And so, anyway, we are about to get to the bottom of that and to be done with that investigation.
And both OSHA and the Chemical Safety Board are also about done with their work onsite as well. And that’s allowing us to get back into some of the affected areas and get on with repairs in the area. Another area, it’s the pages keep turning here in terms of all areas that we have got great growth in. This is in Canada and I’m proud to say that our ethane recovery project, we are now shut down as of the first of the month. We are shut down at Fort McMurray and we are in the process of making tie-ins for the Canadian ethane project. So that will be another provider we bring that in within our planned 25-day window. That will be another project that we brought in on time. And so we are excited to see that and you can see the kind of expansion opportunity that we have kind of the remaining green if you will is the un-contracted business beyond 2016. We’ve got all of that contracted in blue and most of that is the Syncrude facility that Exxon operates and I will tell you, we’ve got very promising discussions going on with Exxon to contract the rest of that business and very excited about what that means to our ultimate cash flows out of the area so, a great competitive advantage and a great piece of business for us.
Along with that comes a lot of propylene in the area and a lot of propane and so our PDH project what it really does, it allows us to amass enough propylene in the area to be able to build world-class polypropylene units in the area and that is really going to change the game for our netbacks up there in addition to the nice what we think are going to be tolling arrangements through our PDH facility so, very excited about this. It’s long lead out there, but very high value proposition long-term for our business and the producers in the area as well.
Bluegrass, I am going to move quickly here, I’m out of time, but continue to be very excited about Bluegrass. We are making great progress on the regulatory front and great progress with our customers and certainly, the Kinder/MarkWest project caused people to pause and see what other alternatives are out there, but I think as customers are learning. There is quite a bit of risk associated with that project and the feedback we’ve gotten from customers, anyway, is that there is a lot of concern around the reliability of the schedule on that project.
And so we’ll see – I can tell you from a Williams’ perspective, we’re very excited about this project. But at the end of the day, what we really need is we need a solution that’s developed within this timeframe and can come on at the end of 2015 and that’s much more important to us, I will tell you, then the economic returns that we will get out of the project just because we have so many great alternatives today. But as we sit here today, I will tell you we are very convinced that we are really the only project that can deliver to this timeline and we think the education process with customers to determine that is ongoing right now.
Our Gulf Coast Petchem business continues to expand very nicely and you can see the expanse of this and as you can see, this was not an accident. We had been planning and buying up pipelines in the area to be able to distribute product out of the fractionator at Lake Charles, which is where the product from Bluegrass would be fractionated and so this is all coming together very nicely. ACMP, a great success story here for Williams, thrilled to be working with ACMP financially great returns to us and as well you can see the kind of growth that we have in distribution through our 50% general partnership interest and I will tell you that this is pretty conservative in terms of the kind of economic power that ACMP has and they are a great partner with us, not only strategically in the areas, but also as an acquisition vehicle in expanding into other areas as well. And so, very excited about how this is working out and the value that has been generated here.
You can do your own math on this, but if you went and tried to value that GP today, you would come up with a pretty astronomical number and I can assure you that’s not built into the Williams stock price today. This is kind of a picture of where all of our capital is and the $25 billion in our look out through 2018 and you can see a pretty nice balance to all the various areas of economic investments we have out there.
And so finally, remain very committed to this super cycle that we are in, feel very comfortable with our continued dividend growth at 20% and continue to be very excited about the kind of huge variety of opportunities that both our asset positioning and our strategy you are developing for us and it is hard to imagine being in a better place at a better time in the industry right now. So with that, I think we will head off for questions in a separate room. Thank you very much. And we take questions here.
Rick Gross - Barclays Capital
Breakout is going to be Liberty 5. It’s up the escalator, down the end of the half and to the right.
[No Q&A session for this event]
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