NEW YORK, July 18, 2026, 11:22 a.m. EDT — Williams NYSE:WMB has secured a $5.34 billion power contract, reducing its funding risk. However, the stock’s valuation is still considered elevated.
- Williams closed at $73.38, dropping 1.8% on Friday and 2.2% for the week.
- A consortium led by Blackstone is set to provide 59% of the anticipated project capital in exchange for a 49% ownership stake.
- Kinder Morgan is scheduled to report on July 22, while Williams will release results after the close on August 3.
U.S. cash markets did not open on Saturday. Shares of The Williams Companies, Inc. NYSE:WMB declined by 1.8% on Friday, with the S&P 500 slipping 1.0%. Trading volume was 8.9 million shares.
The weekly drop came after Williams announced its biggest financing move yet in data-center power. The market response indicates investors are now prioritising execution and valuation.
The agreement eases funding pressure but does not eliminate project-return risk.
A consortium led by Blackstone Inc. NYSE:BX has pledged $5.34 billion. Vehicles managed by Apollo Global Management, Inc. NYSE:APO and KKR & Co. Inc. NYSE:KKR are joining the investment. The consortium acquires a 49% stake in five behind-the-meter power projects. Williams retains a 51% stake and will continue to operate the assets.
The capital allocation is more advantageous than the distribution of ownership. Blackstone Credit & Insurance is set to contribute 59% of the anticipated project capital, not counting capitalized interest. Williams is expected to supply approximately 41%.
Preliminary calculation: Williams maintains ownership at 1.24 times the amount per capital point invested. The $4.4 billion base commitment suggests project expansion spending around $9.0 billion. An additional $900 million represents nearly 10% of that base amount.
The main advantage for investors is the 10-point capital promote. Williams estimates the partner’s expected return at around 6.35%. The partner does not participate in any further upside beyond that return. Williams gains the ability to initiate its buyout right after seven years.
Chief Executive Chad Zamarin stated that the structure “enhances returns on the existing portfolio,” and added it enables Williams to allocate capital toward new projects. Williams Companies, Inc
The stock continues to trade at the highest earnings multiple compared to these chosen peers:
| Company | July 17 close | Friday move | Trailing P/E |
|---|---|---|---|
| The Williams Companies, Inc. NYSE:WMB | $73.38 | fell 1.81% | 32.2x |
| Kinder Morgan, Inc. NYSE:KMI | $32.30 | lost 0.74% | 21.7x |
| ONEOK, Inc. NYSE:OKE | $93.52 | gained 0.58% | 16.7x |
| Targa Resources Corp. NYSE:TRGP | $282.91 | rose 0.92% | 28.9x |
Friday finishes and earnings multiples based on trailing figures. Asset compositions vary.
Williams traded at a higher level than all listed peers. This premium increases pressure for prompt project completion and secured contracted cash flow.
Management maintained 2026 adjusted EBITDA guidance toward the upper end of its $8.05 billion-to-$8.35 billion range. The forecast for growth spending remains $7.0 billion to $7.6 billion. The financing move reduced the company’s expected leverage midpoint to roughly 3.6 times.
Natural gas markets offered limited support, with August futures closing Friday at $2.911 per million British thermal units, marking a 1% decline for the week. Storage reached 3,024 billion cubic feet, 181 Bcf higher than the five-year average.
Kinder Morgan is set to release results on Wednesday, offering the sector’s immediate performance update. Williams does not have a report planned until August 3, with its conference call happening on August 4.
Risks: The promote could be reduced by cost overruns, delays in permitting, and issues with customer credit. Shares may come under pressure quickly at 32.2 times trailing earnings if returns weaken.
The next assessment focuses on cash flow rather than financing.
Related articles: NYSE:BX
