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Blackstone-Led Consortium Invests $5.34 Billion in Williams Power Venture

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Williams Companies (WMB) secured a $5.34 billion investment from a Blackstone-led consortium to fund its Power Innovation projects while retaining majority ownership and operational control, the company said Monday.

Funds managed by Blackstone Credit & Insurance, together with Apollo and insurance vehicles and accounts managed by KKR, will acquire a 49% noncontrolling stake in Williams' five power innovation projects, the company said.

Of the total commitment, $4.4 billion will cover 49% of projected growth capital spending, while Williams will receive about $0.9 billion in additional proceeds. The company will continue to own 51% of the projects and oversee their operations.

Williams and the investor group will share cash distributions according to their 51%-49% ownership interests. The company also secured an option to repurchase the stake between years 7 and 14, preserving future upside, it said.

Power Innovation projects included in the deal are Socrates, Apollo, Aquila, Socrates the Younger and Neo, Williams said.

The company expects the transaction to provide efficient equity funding for its existing Power Innovation developments and to support its pipeline of more than 6 gigawatts of planned power projects.

Williams said the investment will reduce its funding requirements, limit additional borrowing and preserve balance sheet capacity for future growth opportunities while supporting its long-term leverage target.

"With more than 2.6 gigawatts announced, our Power Innovation portfolio is scaling rapidly, and we look forward to delivering these critical energy solutions for American companies," said Chad Zamarin, Williams President and Chief Executive Officer.

The company reaffirmed 2026 adjusted EBITDA guidance in the upper half of its $8.05 billion to $8.35 billion range. It also maintained 2026 growth capital expenditure guidance of $7 billion to $7.6 billion and maintenance capital expenditure guidance of $850 million-$950 million.

Williams now expects its 2026 leverage ratio midpoint to be about 3.6x, remaining within its long-term target of 3.5x-4.0x. All other per-share guidance remains unchanged, the company said.

Price: $74.86, Change: $-0.16, Percent Change: -0.22%

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