- Williams Cos. agreed to acquire Momentum Midstream LLC from EnCap Flatrock Midstream in a deal valued at up to $5.5 billion, strengthening its natural gas network along the US Gulf Coast.
- The transaction will add 4,000 miles of pipelines and 6 billion cubic feet per day of capacity, linking the Haynesville shale region with LNG facilities, power plants and industrial customers.
Williams Cos. agreed to acquire Momentum Midstream LLC from private equity firm EnCap Flatrock Midstream for up to $5.5 billion, expanding its natural gas pipeline network across the US Gulf Coast.
Williams will pay $3.5 billion through cash and debt consideration and approximately $2 billion through stock, according to a company statement released Monday.
The acquisition represents one of Williams’ largest transactions and will strengthen the company’s position in the Haynesville shale region of East Texas and northern Louisiana. The company plans to use the expanded network to move more natural gas toward LNG export terminals and other major customers along the Gulf Coast.
Houston-based Momentum Midstream operates about 4,000 miles of pipelines with capacity to transport 6 billion cubic feet of natural gas per day. Its network connects the Haynesville region with LNG facilities, power plants and industrial customers across the Gulf Coast.
Williams also announced a $1.5 billion Delta Access expansion along its Transco natural gas pipeline network. The company also plans to expand its Louisiana Energy Gateway system through the Shelby Trough Connector.
Williams announced the acquisition alongside second-quarter results that exceeded analysts’ expectations. Investors responded positively, sending Williams shares about 1.9% higher after regular trading ended in New York on Monday.
The transaction will further expand Williams’ existing pipeline footprint. The company already owns more than 30,000 miles of pipeline infrastructure across the United States and will gain additional capacity to transport Haynesville gas to Gulf Coast export terminals through the Momentum acquisition.
Growing LNG demand continues to drive pipeline investment across the US Gulf Coast. The United States already ranks as the world’s largest LNG exporter, and industry projections expect US LNG shipments to roughly double by the end of the decade as new terminals enter service in Texas and Louisiana.
The expansion will also position Williams to serve rising demand from Gulf Coast LNG facilities. The Haynesville basin provides a strategic supply source because it ranks among the major gas-producing regions closest to the Gulf Coast.
Williams’ decision also reflects broader challenges facing pipeline developers. Although President Donald Trump has promoted expanded US energy infrastructure, developers continue to face legal challenges and lengthy federal permitting processes when they seek to build new pipelines. These constraints have encouraged pipeline companies to acquire existing infrastructure as a faster way to expand their networks.
Bloomberg reported in June that Williams had entered advanced discussions to acquire Momentum Midstream. The agreement now gives Williams additional infrastructure in a region facing growing demand from LNG exporters, power generators and industrial customers.
Financial and legal advisers supported both sides of the transaction. BofA Securities served as Williams’ lead financial adviser, while Davis Polk & Wardwell provided legal counsel. Barclays and Jefferies advised Momentum financially, while Kirkland & Ellis served as Momentum’s legal adviser. Willkie Farr & Gallagher provided legal counsel to EnCap Flatrock.
The acquisition, combined with Williams’ Delta Access expansion and Shelby Trough Connector projects, strengthens the company’s strategy of expanding gas transportation capacity in key US production and demand centres while positioning its network to support the country’s growing LNG export industry.