Williams Buys Momentum Midstream in $5.5 Billion Haynesville Deal

Williams has entered into a definitive agreement to acquire Momentum Midstream in a transaction valued at up to US$5.5 billion, strengthening its position in the Haynesville shale and expanding its integrated natural gas infrastructure network. The acquisition aligns with Williams’ long-term strategy to capitalize on growing natural gas demand from Gulf Coast LNG export terminals, power generation, and industrial customers.

Under the terms of the agreement, Williams will acquire the entire ownership of Momentum Midstream through a combination of approximately US$3.5 billion in cash and debt assumption and nearly US$2 billion in Williams equity. The transaction is expected to enhance the company’s financial performance by increasing both earnings per share (EPS) and adjusted funds from operations (AFFO) per share. The acquisition carries an implied valuation of about 8.5 times projected 2027 EBITDA, supported by stable, fee-based revenue streams and long-term take-or-pay contracts.

Momentum Midstream brings a substantial portfolio of natural gas assets to Williams, including more than 4,000 miles of pipelines, over 1 million dedicated acres across four key gathering regions, and a combined gathering capacity of 6 billion cubic feet per day (Bcf/d). The company also operates gas processing and treating facilities along with three major take-or-pay pipelines capable of transporting 4.05 Bcf/d, improving access to both production areas and end-use markets.

Alongside the acquisition, Williams announced two major infrastructure expansion projects designed to accommodate future production growth and strengthen connectivity to high-demand markets. The Delta Access expansion, located along the Transco pipeline corridor, represents an investment of approximately US$1.5 billion and will initially provide 2.25 Bcf/d of transportation capacity. The project is expected to begin operations during the first quarter of 2029, with opportunities for further expansion.

The second project, the Shelby Trough Connector, will extend Williams’ LEG system into the rapidly developing Shelby Trough area of the Haynesville basin. The expansion will initially deliver 750 million cubic feet per day of capacity, with the potential to double to 1.5 Bcf/d through additional compression and pipeline infrastructure. Commercial operations are scheduled to begin in the second quarter of 2028.

Williams believes the acquisition significantly strengthens its ability to meet rising natural gas demand, particularly as Gulf Coast LNG consumption is forecast to increase by nearly 20 Bcf/d over the next decade. By integrating Momentum’s assets with its existing pipeline network, the company expects to improve basin connectivity, expand customer access, and support future LNG, industrial, and power generation projects.

The transaction remains subject to customary regulatory approvals, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act. BofA Securities served as lead financial advisor, while Truist Securities acted as co-advisor, and Davis Polk & Wardwell provided legal counsel to Williams.

Impact on the Product

The acquisition is expected to strengthen the U.S. natural gas value chain by expanding gathering, processing, and transportation capacity in the Haynesville basin. Improved infrastructure will enhance gas supply reliability for LNG exporters, power utilities, and industrial users while supporting higher production volumes. The new pipeline expansions are likely to reduce transportation bottlenecks, improve market connectivity, and encourage additional upstream investment. Over the long term, the transaction could boost natural gas availability across Gulf Coast markets and reinforce the region's role as a major LNG export hub.