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God appears before Abram when he's 99 years old. Abram falls on his face, presumably out of respect for God? God repeats his promise that Abram won't be a stranger in a strange land but the land will belong to his offspring. God renames him from Abram (exalted father) to Abraham (father of a multitude). Here God establishes the covenant of circumcision and says that every child at 8 days old must be circumcised, including any slave or anyone brought into their house, and those who don't do it are cut off from God's covenant. God renames Sarai to Sarah (literally "Princess") because she is to become the mother of many great men and kings. God explicitly states He will give Abraham a son through Sarah and he falls on his face laughing.

17 Then Abraham fell on his face and laughed, and said in his heart, “Shall a child be born to a man who is one hundred years old? And shall Sarah, who is ninety years old, bear a child?” 18And Abraham said to God, “Oh, that Ishmael might live before You!”

God hears this and instead of getting mad, tells him that it's going to happen, and that He will also bless Ishmael and make him the father of many princes and kings. He says his son will be named "Isaac". God says this time next year, his 90 year old wife will give birth (based). Every male in Abraham's house is circumcised.