Williams secures $5.34B from Blackstone for power projects

Williams (NYSE: WMB) has signed an agreement with funds managed by Blackstone Credit & Insurance, in partnership with Apollo and KKR, to invest $5.34 billion in five of Williams' behind-the-meter Power Innovation projects: Socrates, Apollo, Aquila, Socrates the Younger, and Neo.

Under the terms of the deal, Blackstone and its partners will receive a 49% noncontrolling equity interest in the five projects. The commitment includes $4.4 billion representing 49% of expected total growth capital expenditures, and approximately $0.9 billion in additional consideration to Williams. Williams will retain a 51% interest and maintain commercial and operational control.

Cash distributions will align with ownership interests, with 51% going to Williams and 49% to Blackstone. Distributions exceeding Blackstone's targeted return will reduce its investment balance. Williams also holds a buyout right between years 7 and 14, valued at Blackstone's outstanding investment balance at the time.

The Blackstone investment will be consolidated in Williams' financial reporting as a noncontrolling interest. Williams said the structure is intended to support its long-term leverage target range of 3.5x to 4.0x, with an updated 2026 leverage ratio midpoint of approximately 3.6x.

Williams said it continues to expect 2026 Adjusted EBITDA in the upper half of its $8.05 billion to $8.35 billion guidance range. The company also maintained its 2026 growth capital expenditure guidance of $7 billion to $7.6 billion, and maintenance capex of $850 million to $950 million.

Citi acted as financial advisor to Williams, with Davis Polk & Wardwell serving as legal counsel. Morgan Stanley & Co. LLC advised Blackstone, with Kirkland & Ellis as legal counsel.

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