Williams (WMB): Opportunity Rich in Power, Natural Gas

• Williams (WMB) has 13 pipeline projects underway with a robust backlog of additional opportunities.
• Growing natural gas demand should benefit the full value chain of WMB’s assets, from gathering and processing to large natural gas pipeline systems.
• WMB leveraged its construction capabilities, experience operating turbines, and expertise in natural gas logistics to provide the quick behind-the-meter power solution needed by hyperscalers.

Plugged In is a short-form video series from the Energy Infrastructure Council and VettaFi featuring candid one-on-one interviews with energy infrastructure executives. Each week will feature a new conversation leading up to the 23rd Annual Energy Infrastructure CEO & Investor Conference on May 18–20 in Aventura, Florida.

The note below includes key takeaways from a recent conversation with Larry Larsen, executive vice president and chief operating officer of Williams (WMB). Topics included WMB’s natural gas growth opportunities, unique advantages in providing power solutions to data centers, and capital allocation priorities. To view the full interview, click here.

Williams’ growth opportunities span its behind-the-meter power business and its legacy natural gas pipeline business. In the past, pipeline-related growth was largely concentrated along the crown jewel Transco system, which runs from Texas to New York City and handles ~15% of the nation’s natural gas. However, Williams sees opportunities across its natural gas pipeline network today.

Overall, the company has 13 pipeline projects underway, representing 12 billion cubic feet per day (Bcf/d) of capacity. Particularly notable is the Southeast Supply Enhancement (SESE) project, which will move over 1.5 Bcf/d of gas from EQT’s (EQT) Mountain Valley Pipeline to the power-hungry Southeast. SESE is expected to be fully online in the second half of 2027. It marks one of WMB’s greatest contributors to EBITDA growth near term.

Notably, WMB has another 14 Bcf/d of projects in its backlog, representing a potential $16 billion in capital investment. Beyond serving power demand from utilities, Larsen noted growing interest in U.S. liquefied natural gas (LNG) in the wake of the Iran conflict and ongoing opportunities to support LNG export customers. With a presence in 11 supply basins, WMB sees growing natural gas demand benefitting its entire footprint, from gathering and processing assets to its large natural gas pipelines.

The company is even seeing opportunities in the historically challenging Northeast, which has not seen new natural gas pipeline projects in over a decade. WMB recently started construction on its Northeast Supply Enhancement (NESE) project, which will bring more natural gas into New York City and Long Island when it comes online in the fourth quarter of 2027.

The company is also having productive conversations with state officials and utilities around the proposed Constitution pipeline, which would bring more natural gas into New York and New England. With utility bills rising, constituents in the Northeast have been more receptive to the advantages of natural gas, including its reliability and affordability (read more). This region saw natural gas prices spike to almost $200 per million British thermal unit (MMBtu) during winter storm Fern, even as natural gas is produced for well under $5 per MMBtu nearby in the Marcellus/Utica. Infrastructure like the Constitution Pipeline can help solve these price discrepancies.

Power solutions represents the other key pillar to Williams’ future growth (read more). Larsen detailed how WMB got into the power business and the unique advantages it can provide data center customers. Originally announced at the beginning of 2025, WMB’s first power project, Socrates, is slated to come online in Ohio later this year. Considering the wait for interconnects into some grids is five to eight years, bringing a behind-the-meter power facility online in under two years is remarkable.

Williams is known for its construction capabilities and is one of the largest turbine operators. Historically, turbines were used to move natural gas through pipelines, instead of for power. Williams was able to leverage its existing skill set and relationships with equipment manufacturers to provide the speed to market needed by hyperscalers in the thick of the AI race. Not only can WMB operate the power facility and build the supporting pipeline, but the company also has extensive marketing experience, allowing it to manage natural gas supply using its transportation and storage assets.

With its robust opportunity set, Williams expects more spending on growth capital than in the past. The company remains focused on maintaining a healthy balance sheet and its investment-grade credit rating. WMB targets 3.5–4x for its net-debt-to-EBITDA ratio and expects to be towards the higher end of that range this year. Dividend growth is expected to align with growth in available funds from opperations (AFFO) per share. WMB raised its dividend by 5% earlier this year. The company also wants to be in a healthy position for M&A opportunities, albeit there are plentiful opportunities for organic growth today. While WMB has a buyback authorization, buybacks need to compete with other uses of capital, which is likely no small feat, given the current opportunity set.

To view the full interview, click here.

Williams (WMB) is a key constituent in Alerian Midstream Indexes, which underlie ETFs in the U.S. and Europe. As of May 1, WMB was a top-five holding in the Alerian Energy Infrastructure ETF (ENFR ) and the Alerian Midstream Energy Dividend UCITS ETF (MMLP.LN). WMB is also a top-five holding of the ALPS ǀ Alerian Energy Infrastructure Portfolio (ALEFX), which is a variable insurance trust.

Surging U.S. Power Needs Drive Gas Infrastructure Opportunity
WMB Analyst Day: Power & Pipe to Drive Robust Growth
Power Crunch Sparks Northeast Gas Pipeline Revival
Enterprise (EPD) on Macro Landscape, ’27 EBITDA Growth
Energy Transfer (ET) on Natural Gas Opportunities & More
Plains All American on the Permian, Distribution Growth

Looking for midstream insights in your inbox? Subscribe here to keep a pulse on midstream investing through our weekly updates.

vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for ENFR, ALEFX, and MMLP.LN, for which it receives an index licensing fee. However, ENFR, ALEFX, and MMLP.LN are not issued, sponsored, endorsed, or sold by VettaFi. VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of ENFR, ALEFX, and MMLP.LN.

For more news, information, and analysis, visit the Energy Infrastructure Content Hub.