– Williams signed an agreement with a consortium led by Blackstone Credit & Insurance, alongside Apollo Global Management, Inc. and insurance vehicles and accounts managed by KKR, to fund its five announced behind-the-meter Power Innovation projects.
– The projects include Socrates, Apollo, Aquila, Socrates the Younger, and Neo.
– The consortium will invest $5.34 billion in exchange for a 49% noncontrolling equity stake in the five projects.
– The investment consists of: $4.4 billion to fund 49% of expected total growth capital expenditures. Approximately $0.9 billion in additional consideration paid to Williams.
– Williams will retain a 51% ownership stake, along with commercial and operational control of the projects.
– Cash distributions will be allocated according to ownership interests (51% Williams / 49% investors), with excess returns reducing Blackstone’s investment balance.
– Williams has a buyout option between years 7 and 14, allowing it to repurchase the investors’ interest at the outstanding investment balance.
– The partnership provides efficient equity capital to support the current portfolio and advance Williams’ 6+ GW Power Innovation project backlog.
– Chad Zamarin, Williams President and Chief Executive Officer stated: “We are thrilled to have Blackstone as a partner for our first five Power Innovation projects in a manner that enhances the economics of our projects and positions us to further scale and grow this exciting business.”
– Robert Horn, Global Head of Infrastructure & Asset-Based Credit at Blackstone and Rick Campbell, Senior Managing Director, Blackstone Credit & Insurance, added “Williams is a leader in meeting the country’s rapidly growing power demands, including providing critical hard assets to serve the AI infrastructure buildout.”
