Highlights From Our Fireside Chat With WMB's Jaclyn Presnal on Power Innovation

Research evidence excerpt

Highlights From Our Fireside Chat With WMB's Jaclyn Presnal on Power Innovation

t) Consensus Estimates

• Best-in-class execution and permitting capability 2025A 2026E 2027E

• Strong project economics with embedded optionality EPS $2.36 $2.53

• Increasing standardization and scalability Valuation

2025A 2026E 2027EShould help WMB continue to capture attractive share of BTM power growth. As

backlog conversion accelerates and projects enter service, we see increasing earnings P/E 33.9x 30.0x 27.7x

visibility supporting sustained double-digit EBITDA growth and supporting valuation EV/EBITDA 14.9x 14.4x 13.3x

premium to the company's Midstream and energy infrastructure peers. QTR. EBITDA Q1 Q2 Q3 Q4

Economies of Scale, Modular and Repeatable Designs Should Drive down $/kW 2025A $1,989 $1,808 $1,920 $2,033

costs, but WMB still targeting 5x Build Multiple. WMB's growing number of Power 2026E $2,254a $1,951 $2,034 $2,147

Innovation clusters in OH, learnings from earlier projects, repeatable designs and larger

2027E $2,237 $2,192 $2,424 $2,529projects can bring $/kW costs down. However, as noted in our call today the company

expects to pass majority of savings through to customers in PPA pricing as its 5x EBITDA

build multiple and return targets remain sufficiently attractive.

Optionality, Visibility and Ongoing Demand Support Valuation Multiple for Power

Innovation. Investor debate continues to be focused on appropriate valuation multiple

(BMO 7x EBITDA) for the company's power development activities given shorter relative

contracts and view that these BTM projects are bridge power solutions. However, as we Our Thesis

discussed during our call customers retain option to extend contracts, recent contract WMB appears to be a compelling demand-centric energy