The Williams Companies (WMB) Q3 2026 Earnings Call: Q&A Summary

Q: Jeremy Tonet from JPMorgan asked how customer conversations are evolving and if the counterparty base is broadening.

A: Chad Zamarin stated they are focusing on high-quality hyperscalers and expect to expand the customer base with significantly longer contract tenures, while also working on projects that allow for scaling over time.

Q: Jeremy Tonet from JPMorgan asked about learnings from the Socrates project and how the company is expanding its solution offerings.

A: Chad Zamarin and Larry Larsen explained that the business is a clean extension of existing capabilities, and they are optimizing with every project. Socrates is performing well, and they are applying lessons learned to future projects.

Q: Praneeth Satish from Wells Fargo asked if the timing of power projects is sensitive to the election, particularly in Texas.

A: Chad Zamarin noted that the election is not a gating issue, as Texas remains a critical energy resource and infrastructure hub where they are focused on building projects with supportive communities.

Q: Praneeth Satish from Wells Fargo asked about the potential to upsize the Southeast Supply Enhancement project and its economics.

A: Larry Larsen stated they have 150 million cubic feet per day contracted, with an open season up to 390 million cubic feet per day, and they expect build multiples in the 4x to 6x range.

Q: Spiro Dounis from Citi asked about the new compensation framework's 10% to 16% EBITDA CAGR target, the mix of M&A versus organic growth, and leverage management.

A: Chad Zamarin and John Porter emphasized that these targets are achievable through high-return projects. They are focused on organic growth but could do bolt-ons, while maintaining leverage between 3.5x and 4x using internally generated cash flow.

Q: Spiro Dounis from Citi asked how to reconcile $5.9 billion in equipment commitments with the 6 gigawatt opportunity set.

A: John Porter and Chad Zamarin clarified that the $5.9 billion figure represents aggregate commitments, some with cancellation fees, and does not have a direct 1:1 correlation with the 6 gigawatt target, though they have secured equipment to support the entire backlog.

Q: Elvira Scotto from RBC asked about early integration learnings from the Momentum acquisition.

A: Chad Zamarin reported that integration is off to a strong start with no surprises and they are capturing synergies ahead of schedule.

Q: Elvira Scotto from RBC asked about the value of the Woodside LNG SPA.

A: Rob Lengo and Chad Zamarin explained they view this as a way to offer international pricing as a service to producers, aiming to term out the capacity rather than create a large international price exposure position.

Q: John Mackay from Goldman Sachs asked about remaining expansion capacity on Transco.

A: Chad Zamarin and Larry Larsen noted that expansion opportunities are almost limitless, with a myriad of projects in the backlog ranging from small-scale to large capital expansions extending into the 2030s.

Q: John Mackay from Goldman Sachs asked for an update on the Nessy project.

A: Lane Wilson and Chad Zamarin stated the Third Circuit remanded the permit, but it does not jeopardize the project. They are working on next steps and emphasized that permitting reform, like the Baha bill, is critical for certainty.

Q: Julien Dumoulin-Smith from Jefferies asked if projects are getting larger and about the status of easements.

A: Chad Zamarin said they are planning for larger scale and phasing, and easements have not been an issue as they work collaboratively to site projects.

Q: Julien Dumoulin-Smith from Jefferies asked if future scope would be announced simultaneously.

A: Chad Zamarin indicated they expect to show larger scale phases within single projects and aim to drive down costs while preserving returns.

Q: Robert Catellier from CIBC asked about the appetite for joint venture structures for future power projects.

A: John Porter said it remains an option depending on the size and scale of projects, but they have many options, including running the balance sheet hotter.

Q: Robert Catellier from CIBC asked about the strategic upside of the Momentum acquisition.

A: Chad Zamarin and Larry Larsen noted the inventory is economic at $3.75 gas prices, and the combination with their existing footprint creates opportunities to optimize and win new dedications.

Q: Manav Gupta from UBS asked about the outlook for Clay Basin and storage expansions.

A: Larry Larsen and Chad Zamarin stated that storage capacity has lagged development, and they have additional projects in the Gulf region, with Clay Basin serving as a key asset in the Rockies.

Q: Manav Gupta from UBS asked about thoughts on the gathering portfolio.

A: Chad Zamarin said they feel good about their gathering footprint, having divested small non-strategic assets while maintaining the right assets in the right locations.

Q: Jason Gabelman from TD Cowen asked about confidence in the 1 to 2 projects by year-end.

A: Chad Zamarin noted they do not time announcements for earnings calls, but expect 1 or 2 to hit the finish line by year-end, with more into 2027.

Q: Jason Gabelman from TD Cowen asked about financing announcements.

A: John Porter stated it depends on the project size, but they will provide clarity on financing for larger projects.

Q: Craig Shere from Touhy Brothers asked if new projects are derisked by longer tenors and if that minimizes upside.

A: Chad Zamarin said they target predictable fee-based cash flows but still create platforms for upside, and they are learning to be more efficient with excess capacity.