How do you see the BTM opportunity evolving, and are you able to do deals with multiple hyperscalers simultaneously?

Commercial interest in BTM projects is strengthening, supported by Socrates' successful delivery. Projects are evolving to include speed, scale, and hybrid solutions. Williams is in conversations with multiple counterparties and does not see current deals as exclusive, aiming to provide energy solutions for all businesses. They are pacing commercialization to maintain steady growth through the decade. “We expect to commercialize additional projects between now and the end of the year. I will say, I know everyone is excited about and looking forward to the next announcement, but the team is also doing a really good job of pacing the commercialization of projects so that we can maintain this steady growth throughout the end of the decade and beyond.”

What will the next wave of power innovation projects look like (geography, contract tenors, customers), and how did the Socrates start-up go?

Future projects will continue to evolve, focusing on speed, scale, and hybrid solutions, with potential for phased scaling and longer contract durations. Geographic focus remains on supportive states within Williams' footprint. Socrates commissioning went extremely well, with successful load testing and first power delivery. Learnings from Socrates are being applied to future projects to enhance efficiency, with other projects (Aqualand, Apollo) trending on schedule and budget. “The commissioning has gone extremely well. We did a lot of load testing prior to actual start-up to facilitate to make sure that we actually could see the AI load following actually the work the way it was intended to. So -- those tests went really smoothly.”

Can you elaborate on the $2 billion funding capacity for BTM projects, and how might the JV with Blackstone expand or evolve for future funding?

Williams has over $2 billion available for near-term power innovation projects, based on a normalized 3.75x leverage (full-year Momentum contribution) against their 4x internal ceiling. The existing JV with Blackstone is a strong platform, and future partnerships could be structured similarly or as unique separate deals, leveraging the diligence already performed. The company feels well-situated to fund opportunities, especially as larger projects require significant capital upfront. “we feel like we've got in excess of $2 billion available now to fund near-term power innovation projects between now and the end of the year. And that's really working off the 3.75x leverage number that we cited in the presentation...”

WMB

Williams Companies (WMB) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Energy· Aug 4, 2026

Source: earnings call transcript

Executive summary

The Williams Companies Q2 FY26 — Raised Guidance and Strategic Acquisitions Drive Growth

The Williams Companies delivered a strong Q2 FY26, marked by the successful in-service of Socrates Phase 1 and strategic moves to accelerate future growth. The acquisition of Momentum Midstream and a significant Power Innovation financing joint venture with Blackstone have enabled the company to raise its full-year EBITDA guidance and long-term growth targets. Management is focused on capital recycling and disciplined execution to support continued expansion in pipeline and power infrastructure.

Highlights

Socrates Phase 1 achieved in-service on time and within budget, delivering 200 megawatts of power.
Full-year 2026 Adjusted EBITDA guidance raised by $200 million at the midpoint to $8.3 billion-$8.5 billion.
Long-term EBITDA growth rate target increased to 11%+ CAGR through 2030, up from 10%+.
Strategic acquisition of Momentum Midstream for $5.5 billion, expanding Haynesville footprint and unlocking new projects.
Power Innovation financing joint venture with Blackstone provides $5.34 billion of committed capital at an attractive 6.35% cost of equity.

Concerns

Leverage tightness
Weak gas prices
Hurricane season
Rainier weather impacting construction

Guidance & targets

Category	Target	Timeline	Confidence
Full-year 2026 Adjusted EBITDA	$8.3 billion to $8.5 billion high materiality	FY26	High
Long-term EBITDA growth rate target	11%+ compound annual growth high materiality	through 2030 · FY30	High
Long-term EPS growth rate target	11%+ CAGR high materiality	2025 through 2030 · FY30	High
Year-end 2026 Leverage	around 3.9x medium materiality	Q4 FY26	High
Growth CapEx guidance	updated medium materiality	FY26	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Transmission and Gulf Overall segment performance led by Gulf businesses and natural gas storage, with contributions from expansion projects. Gulf businesses growth: 23%Natural gas storage growth: 23%Growth from expansion projects at Transco and Mountain West Pipeline	—	6%	—	$56 million improvement
Northeast G&P Strong growth driven by rich gas areas, with potential for further upside. Growth primarily due to rich gas areas	—	8%	—	$39 million improvement
West Performance driven by strategic investments in the Haynesville basin. Led by Haynesville investments, including Louisiana Energy Gateway Pipeline	—	5%	—	$18 million improvement
Other (includes upstream) Primarily due to the divestiture of upstream Haynesville assets, which closed in January 2026.	—	—	—	down $14 million

Deals & partnerships

Blackstone, Apollo, KR Power Innovation financing joint venture $5.34 billion committed capital

Creates a flexible source of low-cost equity to fund near-term power innovation projects while preserving Williams' operatorship and upside participation.

Momentum Midstream Strategic bolt-on acquisition $5.5 billion ($3.5 billion in cash and debt, $2 billion of equity)

Complements Haynesville gathering and Transco Gulf Coast pipeline footprint, strengthening position in a key natural gas growth basin tied to LNG exports. Unlocks new expansion projects like Shelby Connector and Delta Access.

Capital programs

Socrates Phase 1 completed

Benefit:200 megawatts

Achieved in-service on time and within budget.

Socrates next phase underway

Remaining on track for delivery.

Shelby Connector announced

Benefit:750 million cubic feet per day (expandable to 1.5 billion cubic feet per day)

Large diameter pipeline expansion from Momentum gathering system connecting into Williams Louisiana Energy Gateway (LEG) system, with initial customer committed capacity.

Delta Access Pipeline announced

Benefit:2.25 Bcf per day (expandable to 3.5 Bcf per day)

Large-scale transmission project from combined Momentum and Williams systems to LNG and power customers along the Transco corridor, fully contracted.

Southeast Supply Enhancement (SESE) under construction

Progressing forward and trending on time and on budget.

Northeast Supply Enhancement (NESE) under construction

Start: end of this year (compression)

Initial construction kicking up, with the real work for compression starting end of year and offshore build in 2027.

Risks & headwinds

Leverage tightness 2026-2027

primarily an issue for '26 and '27

Mitigation:preserving near-term investment capacity; additional capacity from Power Innovation JV; internal 4x leveraged ceiling is not a hard and fast number.

Weak gas prices summer months

pretty weak gas prices

Mitigation:Not explicitly stated, but management acknowledges it as a factor for guidance conservatism.

Hurricane season early on here

impact our business

Mitigation:Not explicitly stated, but management considers it a factor for guidance conservatism.

Rainier weather impacting construction Q2 FY26

caused some challenges

Mitigation:Teams navigated it well, no impacts on budget or schedule at this point.

What to watch in Q3 FY26

Socrates next phase in-service

before year-end

Current underway

Target in-service

Why it matters

Demonstrates continued execution on key power innovation projects and validates the business model.

We remain on track to deliver the next phase of soccer tees before year-end with many more projects to come thereafter.

Find out whether WMB delivers this. Inve re-checks your case every morning.

Q&A highlights

Is the 11%+ EBITDA CAGR target conservative, and can you quantify operational/cost synergies from Momentum? Also, clarify the 8.5x acquisition multiple.

Management confirmed the 11%+ CAGR is conservative and they are well-positioned to exceed it, as it primarily reflects existing contracted business and excludes additional power/pipeline projects. They did not quantify synergies but highlighted significant operational synergies and growth opportunities in the Haynesville. The 8.5x multiple is based on Momentum's consolidated EBITDA, which would be approximately 9x after non-controlling interests, and is expected to compress with growth and synergies.

“Again, this 11% plus -- the 11% that we're discussing really serves as an update to the 8% we gave back in February and the 9% we gave in May. And specifically, we're really talking about a number here that continues to be centered on our existing contracted book of business. And so we're excluding the commercialization of any additional power or pipes projects...”

asked by Praneeth Satish · answered by John Porter

2 min read 5 chapters

Detailed narrative

Socrates Project Success

Williams achieved in-service for Phase 1 of its Socrates Power Innovation project, delivering 200 megawatts of utility-scale power to a customer in under 18 months since commercialization, on time and within budget. This success validates the company's ability to deliver large-scale power projects efficiently.

The team is on track to deliver the next phase of Socrates before year-end, with learnings from Phase 1 being applied to optimize future projects and potentially accelerate timelines.

Momentum Midstream Acquisition

The company announced the strategic acquisition of Momentum Midstream for $5.5 billion, funded by $3.5 billion in cash and debt and $2 billion in equity. This bolt-on acquisition expands Williams' Haynesville footprint, adding roughly 6 Bcf per day of gathering capacity and over 4 Bcf per day of take-or-pay pipeline capacity.

The acquisition is expected to be accretive at an attractive multiple of approximately 8.5x consolidated EBITDA, which is anticipated to compress over time with growth and synergies, solidifying Williams' position in a critical natural gas growth basin.

Power Innovation Financing Joint Venture

Williams formed a financing joint venture with Blackstone, Apollo, and KR for its Power Innovation business. This JV provides $5.34 billion of committed capital, including $4.4 billion for 49% of expected total growth capital expenditures and $900 million of additional consideration to Williams.

The capital comes at an attractive capped 6.35% cost of equity, significantly enhancing project returns by approximately 56% on invested capital over the primary term of underlying contracts. This structure creates immediate balance sheet capacity for continued growth in the power innovation business.

Transco Expansion Projects

Williams secured customer agreements for the Leidy Access and Garden Connector projects on Transco and further upsized the Transco Power Express project to an 800 million cubic feet per day expansion. An extension of Line 200 was commercialized to serve growing power demand in Lake Charles, Louisiana.

Alongside the Momentum acquisition, two new strategic projects were announced: the Shelby Connector (750 MMcf/d, expandable to 1.5 Bcf/d, in-service H1 2028) and the Delta Access Pipeline (2.25 Bcf/d, expandable to 3.5 Bcf/d, in-service early 2029), both fully contracted and connecting Haynesville supply to Gulf Coast LNG and power demand.

Enhanced Long-term Growth Outlook

The company raised its long-term EBITDA and EPS compound annual growth rate target to 11%+ through 2030, up from the previously announced 10%+. This increase is driven by the Momentum acquisition and other recently announced projects. Management expressed confidence in exceeding this new target, supported by a strong backlog of projects, new opportunities, and value creation from the legacy business, while maintaining financial flexibility and balance sheet capacity.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.