Williams (NYSE: WMB) adds $3.1B power projects, lifts 2025 capex and leverage

Rhea-AI Filing Summary

The Williams Companies, Inc. has agreed to invest approximately $3.1 billion in two additional power innovation projects aimed at providing fast, grid-constrained power solutions. These projects are expected to be completed in the first half of 2027, assuming permits are received on time, and are supported by 10-year, primarily fixed-price power purchase agreements with a large investment-grade customer that also holds an extension option.

With these new agreements, Williams’ total committed capital to power innovation projects rises to about $5 billion. The company is increasing its 2025 growth capital spending plan by $875 million to a new range of $3.45 billion to $3.75 billion, which it expects will lift its 2025 leverage ratio midpoint to 3.7x. Williams states that its build multiple for the new projects is approximately 5x EBITDA, indicating the level of projected earnings relative to its investment.

Positive

• Long-term contracted growth investment: Williams is investing approximately $3.1 billion in two additional power innovation projects backed by 10-year, primarily fixed-price power purchase agreements with a large investment-grade counterparty, supporting visibility of future earnings.
• Scaled power platform: Total committed capital to power innovation projects increases to about $5 billion, indicating a sizable growth pipeline in this segment, with the new projects targeted for completion in the first half of 2027 and a stated build multiple of roughly 5x EBITDA.

Negative

• Higher leverage from increased capex: Raising 2025 growth capex by $875 million to a new range of $3.45 billion to $3.75 billion is expected to increase Williams’ 2025 leverage ratio midpoint to 3.7x, reflecting additional balance sheet risk compared to a lower spending plan.

Insights

Infrastructure & Midstream Analyst

Williams commits $3.1B to contracted power projects, lifting 2025 capex and leverage.

The Williams Companies is adding approximately $3.1 billion of investment in two power innovation projects, targeting grid-constrained markets. These projects are backed by 10-year, primarily fixed-price power purchase agreements with a large, investment-grade counterparty, which helps provide revenue visibility over the contract term. The company cites a build multiple of about 5x EBITDA for these assets, indicating expected earnings relative to capital outlay.

As a consequence, total committed capital for power innovation projects rises to roughly $5 billion. Williams is raising its 2025 growth capex budget by $875 million to a new range of $3.45 billion to $3.75 billion, which it expects will increase its 2025 leverage ratio midpoint to 3.7x. The projects are anticipated to be completed in the first half of 2027, assuming timely permitting, so actual cash deployment and earnings contributions will depend on construction progress and permit timing.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 1, 2025 (September 30, 2025)

The Williams Companies, Inc.

(Exact name of registrant as specified in its charter)

Delaware			1-4174			73-0569878
(State or other jurisdiction of incorporation)			(Commission File Number)			(IRS Employer Identification No.)

One Williams Center
Tulsa, Oklahoma			74172-0172
(Address of principal executive offices)			(Zip Code)

Registrant’s telephone number, including area code: 800-945-5426 (800-WILLIAMS)

NOT APPLICABLE

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Trading Symbol(s)			Name of each exchange on which registered
Common Stock, $1.00 par value			WMB			New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 7.01. Regulation FD Disclosure

Effective September 30, 2025, The Williams Companies, Inc. (the “Company”) has agreed to invest approximately $3.1 billion in two additional power innovation projects to continue to deliver speed-to-market solutions in grid-constrained markets. The projects are anticipated to be completed in the first half of 2027, assuming timely receipt of permits. The projects are backed by 10-year, primarily fixed-price power purchase agreements with an unnamed large, investment-grade counterparty with an option for the customer to extend. The Company’s build multiple for the projects is approximately 5x EBITDA.

As a result of these agreements, total power innovation projects committed capital now stands at approximately $5 billion. The Company is raising its 2025 growth capex by $875 million to a new total of between $3.45 billion and $3.75 billion, which is expected to raise its leverage ratio midpoint for 2025 to 3.7x.

Item 9.01. Financial Statements and Exhibits

(a)    None

(b)    None

(c)    None

(d)    Exhibits.

Exhibit No.						Description
104						Cover Page Interactive Data File. The cover page XBRL tags are embedded within the inline XBRL document (contained in Exhibit 101).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

									THE WILLIAMS COMPANIES, INC.
									(Registrant)
Dated:			October 1, 2025			By:			/s/ ROBERT E. RILEY, JR.
									Robert E. Riley, Jr.
									Vice President and Assistant General Counsel - Corporate Secretary and Corporate Strategic Development

FAQ

What new investment did The Williams Companies (WMB) disclose?

Williams disclosed that it has agreed to invest approximately $3.1 billion in two additional power innovation projects designed to provide speed-to-market solutions in grid-constrained power markets.

How are the new Williams (WMB) power projects contracted?

The new projects are supported by 10-year, primarily fixed-price power purchase agreements with a large, investment-grade counterparty, and the customer has an option to extend the agreements.

When are Williams’ new power innovation projects expected to be completed?

The company anticipates that the two new power innovation projects will be completed in the first half of 2027, assuming timely receipt of necessary permits.

What is Williams’ total committed capital to power innovation after this update?

After committing to the new projects, Williams states that its total power innovation projects committed capital now stands at approximately $5 billion.

How is Williams (WMB) changing its 2025 growth capex guidance?

Williams is raising its 2025 growth capex by $875 million, resulting in a new total capex range of $3.45 billion to $3.75 billion for 2025.

What leverage impact does Williams expect from the higher 2025 capex?

The company expects that the higher 2025 growth capex will raise its 2025 leverage ratio midpoint to 3.7x.

What return metric did Williams provide for the new projects?

Williams stated that its build multiple for the projects is approximately 5x EBITDA, indicating the relationship between project cost and expected earnings before interest, taxes, depreciation, and amortization.