Williams Cos Inc. "Deep Dive: Power Innovation Projects Revisited After..."

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Williams Cos Inc. "Deep Dive: Power Innovation Projects Revisited After..."

Williams Cos Inc. UBS Research

NEO and ATLAS

Along with their 1Q26 earnings, WMB announced their fifth commercialized behind-

the-meter Power Innovation project, Neo, the company's largest power project

announced to date. The ~$2.3Bn consists of 682 MW of installed capacity and a 12.5

year contract with a high quality hyperscaler counterpart. WMB expects ISD in 2H28,

and the project will come online in two phases. Like with their other power projects,

WMB expects to execute Neo at a ~5.0x build multiple.

Furthermore, WMB also announced the Atlas project. Unlike the other Power Innovation

projects, Atlas is a pipeline project rather than a power generation facility. The project

consists of a gas infrastructure agreement to provide up to 164 MMcf/d of pipeline

capacity to serve a large investment grade data center customer in the Northeast. Atlas

has a 13-year term with expected ISD in 4Q26. Management noted they expect Atlas to

be relatively modest in CapEx, likely just under $50MM. This project demonstrates that

data centers are looking to away from diesel backup generation to natural gas based

solutions.

Management Commentary on New Projects and Power Innovation Business

On the 1Q26 call, management highlighted that Atlas demonstrates the company's

ability to deliver an efficient nat gas solution for providing backup energy supply to

existing data centers, while also moving them away from diesel generation. While WMB

has noted a robust backlog of ~6 GW in potential power projects, the company is

focused on layering in projects that work from a steady and predictable growth

perspective, complement the supply chain secured to support the projects, and fit the