A Conversation with Williams' (WMB) EVP and COO Larry Larsen

Why It Matters

Williams’ integrated pipeline and power capabilities enable it to meet fast‑growing AI data‑center demand and alleviate regional gas price volatility, positioning the company for strong earnings growth and investor returns.

Key Takeaways

• Williams launches 500 MW “Socrates” behind‑meter project for AI data centers.
• Leveraging gas pipeline network, Williams can deliver power in under two years.
• Southeast Supply Enhancement adds 1.5 BCF/d, targeting 2027 completion.
• Northeast Supply Enhancement addresses NY gas price spikes, slated for 2027.
• Capital allocation targets 3.5‑4× debt/EBITDA, prioritizing growth over dividends.

Summary

In a Plugged In interview, Williams EVP and COO Larry Larsen outlined the company’s aggressive push into behind‑the‑meter power generation, highlighting the 500‑megawatt Socrates project in Ohio that will serve hyperscale AI data centers. The initiative leverages Williams’ extensive natural‑gas pipeline network and turbine expertise to deliver power in under two years—far faster than traditional utility timelines. Larsen detailed a broader pipeline growth strategy, noting 13 transmission projects delivering roughly 12 BCF per day of incremental capacity. The flagship Southeast Supply Enhancement on the TransCo corridor will add 1.5 BCF per day, slated for full operation by late 2027, while a robust backlog of 14 BCF per day represents about $16 billion of potential capital spend. In the Northeast, the new supply‑enhancement project aims to curb extreme gas price spikes—recently hitting $200 per MMBtu—by linking abundant Marcellus‑Udica supplies to New York markets. Larsen emphasized Williams’ unique value proposition: a century‑old construction pedigree, a vast gas‑transport network, and a world‑class marketing operation that can secure early turbine deliveries and manage day‑to‑day gas nominations. He cited the Socrates build‑out as “one of the highest EBITDA‑growth projects” and stressed the company’s ability to execute complex projects in a fraction of the typical five‑to‑eight‑year utility lead time. Looking ahead, Williams plans to keep its debt‑to‑EBITDA ratio between 3.5× and 4×, directing capital toward these high‑growth assets while maintaining a disciplined dividend policy tied to earnings per share growth. The firm’s focus on rapid, integrated energy solutions positions it to capture rising demand from AI‑driven data centers and address regional affordability challenges, signaling a potentially lucrative growth phase for investors.

Original Description

VettaFi sat down with Larry Larsen, Executive Vice President and Chief Operating Officer of Williams (WMB), in April 2026. The discussion covered Williams' growth opportunities in its behind-the-meter power business and its natural gas pipeline business.

About Plugged In

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.

Chapters:

00:06 – Introduction

00:27 – Behind the Meter Power & Hyperscalers

02:02 – Speed to Market & Infrastructure Advantages

04:43 – Transmission Growth & Southeast Supply Enhancement

06:57 – Growth Backlog & LNG Opportunities

07:55 – Northeast Strategy & Affordability

10:20 – Constitution Pipeline & Regional Engagement

11:16 – Capital Allocation & Dividend Outlook

► Find articles on our site https://bit.ly/3NX9CJz

► Subscribe to our channel: https://bit.ly/3sZ7sPT

► Find us on Twitter: / vetta_fi

► Find us on LinkedIn: / vettafi

#NaturalGasInfrastructure #EnergyAffordability #MidstreamGrowth #PowerGeneration #aiinfrastructure