Williams has agreed to acquire Momentum Midstream in a strategic Haynesville growth transaction valued at up to US$5.5 billion, further expanding the company’s fully integrated natural gas infrastructure platform in one of the nation’s most important supply basins serving growing Gulf Coast LNG, power and industrial demand. Under the agreement, Williams will acquire 100% of Momentum Midstream for total consideration of up to US$5.5 billion, comprising approximately US$3.5 billion of cash and debt consideration and roughly US$2 billion of Williams equity.
Momentum’s Haynesville platform adds more than 4000 miles of pipe and over 1 million dedicated acres within four key gathering areas with a combined capacity of 6 billion ft3/d, multiple processing and treating facilities and three take-or-pay pipelines capable of transporting 4.05 billion ft3/d, serving the Haynesville and key demand markets. The acquisition is valued at an implied valuation of approximately 8.5x projected 2027 EBITDA and is expected to be accretive to both available funds from operations (AFFO) per share and earnings per share. Predictable, fee-based cash flows, supported by fixed-fee earnings, take-or-pay contracts and a high-quality customer base, underpin the transaction’s long-term value.
Williams is announcing two attractive immediate expansion projects across the platform to capture the next wave of Haynesville supply and connectivity to growing LNG and power demand:
- As part of the acquisition, the Delta Access expansion along the Transco corridor will serve growing LNG and power demand. The US$1.5 billion project will provide initial capacity of 2.25 billion ft3/d, with future expansion opportunities and is expected to come online in 1Q29.
- Enhanced through the acquisition, the Shelby Trough Connector is an expansion of our LEG system into the growing Shelby Trough area of the Haynesville. The project will provide 750 million ft3/d of initial capacity with expansion potential up to 1.5 billion ft3/d and includes a new lateral and additional compression facilities. It is expected to enter service in 2Q28.
The acquisition and the announced pipeline projects deepen Williams’ exposure to long-term natural gas demand growth, including Gulf Coast LNG demand projected to increase by approximately 20 billion ft3/d over the next 10 years. By combining Momentum’s complementary footprint with Williams’ existing infrastructure, the transaction enhances basin connectivity, broadens customer reach and creates additional opportunities to serve LNG, industrial, and power demand, including future Transco expansions.
The transaction is subject to customary closing conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
BofA Securities acted as lead financial advisor to Williams. Truist Securities also acted as a financial advisor to Williams in connection with the transaction. Davis Polk & Wardwell is serving as Williams’ legal counsel on the transaction.