Williams to buy Momentum Midstream for $5.5 billion

• The acquisition adds over 4,000 miles of pipeline and 1 million dedicated acres with 6 billion cubic feet per day gathering capacity and three take-or-pay pipelines moving 4.05 billion cfd
• Williams raised its 2026 adjusted EBITDA outlook to $8.3-8.5 billion from a prior midpoint of $8.2 billion
• Second-quarter adjusted EBITDA rose to $1.921 billion from $1.808 billion year-over-year, while net income increased to $827 million or $0.68 per share

Summary

Key Transaction Details:

Williams announced the acquisition of Momentum Midstream for $5.5 billion, comprising approximately $3.5 billion in cash and debt consideration plus roughly $2 billion in Williams equity. The deal was announced on August 3.

Strategic Assets Acquired:

The transaction adds over 4,000 miles of pipeline infrastructure and more than 1 million dedicated acres in the Haynesville shale region. The acquired assets include gathering capacity of 6 billion cubic feet per day (cfd) and three take-or-pay pipelines with transport capacity of 4.05 billion cfd.

Market Rationale:

The acquisition strategically positions Williams to capture growing demand from Gulf Coast liquefied natural gas (LNG) export facilities, power generators, and industrial users. The Haynesville shale is a critical supply basin for these markets, making this expansion particularly valuable.

Financial Performance and Outlook:

Williams raised its 2026 adjusted EBITDA guidance to $8.3-$8.5 billion from a prior midpoint of $8.2 billion. The company reported strong Q2 2024 results with adjusted EBITDA of $1.921 billion, up from $1.808 billion year-over-year. Net income rose to $827 million ($0.68 per share) for the quarter.

Market Implications:

This deal consolidates Williams' position in the natural gas midstream sector and reflects continued optimism around U.S. LNG export growth and domestic power demand. The acquisition provides critical infrastructure to support the expanding Gulf Coast energy corridor.