WMB
#<UNK>, great question.
It's something we look at all the time.
I would say our pipes projects tend to be in the low teens, unlevered returns.
We think the cost of capital for those is pretty low too from the standpoint if you were to really isolate that business and say what is the appropriate cost of capital for that business.
I think you would be looking at pretty low debt cost there and a pretty attractive equity cost as well, I'd say.
And I think that's exactly the kind of business that investors are pretty enthusiastic about and probably lowers our cost of capital overall so we think all of those Transco projects are just really right down the sweet spot.
While we could lay off some capital there, it's not desirable, I think, from our perspective.
The rest, the returns on some of those investments tend to be fairly high because they're incremental returns on existing asset bases.
So again, we'll continue to look at those and see if there's capital that is not earning a sufficient return or otherwise can be deferred or laid off.
But at this point, this is the plan, but we'll continue to focus on that in an effort to maximize value creation opportunities for both PZ and Williams.
I would just add to that, as you think about the returns on projects like Atlantic Sunrise, great project, great returns, but in addition to the returns we get on the particular project, something like Atlantic Sunrise pulls all the way through the system.
So you heard <UNK> talk about the $700 million a day that we have shut in up there and that capital is already there.
The gathering systems are already there.
So to the degree we unlock those constraints and systems like that, we get a very high increment in cash flows, because we would see the gathering volumes pick up there as well.
So really, those projects are really important to us in terms of incremental cash flow.
We certainly look at it that way.
I think the way you are describing you should look at it, which is kind of on the incremental cost of capital, is the right way to think about it, and that is the way we think about it.
So I completely agree with that assessment.
I would just tell you, I think these projects are pretty powerful in terms of what they do for us going on the increment.
And we have trimmed a lot of capital out of the plan, but I think as WPZ investors see the amount of coverage that we have and see the kind of growth that is out before WPZ with all this big capital investment, I think we'll see some very constructive positioning for the P Z units.
And so I think that will be a positive.
But again, I think the kind of returns that we're talking about are powerful and we'll overcome that over time.
<UNK>, I think we're comfortable with the plan that we laid out here today based on the fact and circumstances we have in front of us, and obviously, we'll continue to look at the changing landscape, including how we're valued and the cost of capital and make decisions from that new baseline.
But we're certainly very focused on the cost of capital and very interested in reducing spending where we don't see a good spread between the return on capital and cost of capital as well, but all consistent with supporting our franchises.
So we'll continue to balance those points and try to find the path that we believe will create the greatest long-term value.
Thanks, <UNK>.
Okay.
Well, great.
Well, thank you all very much.
Appreciate all the interest.
We're really excited about the platform that we're sitting on here for growth and very excited about really moving this business to a much more predictable set of cash flows and continuing to execute on these projects that are just coming in one after another as we expand out the business, and then ultimately, the pull through that we'll get on the supply side.
So couldn't be more excited about strategy.
Very thankful for a very dedicated organization that's fired up about executing on the plan, and we appreciate your confidence and interest in Williams in the future.
Thank you.
