Williams Completes $5.5B Momentum Midstream Acquisition

Williams Companies Inc. has completed its approximately $5.5 billion cash-and-stock acquisition of M6 Midstream LLC, also known as Momentum Midstream, from EnCap Flatrock Midstream LP. The transaction significantly expands Williams’ position in the Haynesville natural gas basin and strengthens its ability to meet increasing demand from liquefied natural gas (LNG), power generation and industrial customers along the U.S. Gulf Coast.

Williams President and Chief Executive Officer Chad Zamarin said the acquisition establishes a leading Haynesville position for the company. Momentum contributes a strong customer base, long-term take-or-pay contracts and complementary infrastructure that supports Williams’ natural gas-focused growth strategy. The transaction also brings Momentum employees into the Williams organization.

The acquired portfolio includes more than 4,000 miles of pipelines, three take-or-pay pipelines with combined transportation capacity of approximately 4.05 billion cubic feet per day (Bcfd), over one million dedicated acres and around 6 Bcfd of gathering capacity. The assets also include multiple gas processing and treating facilities.

According to Williams, the acquisition improves connectivity between major natural gas supply sources and rapidly expanding demand centers. It also provides a platform for future infrastructure development in the Haynesville region.

The transaction complements two major pipeline projects already announced by Williams. The $1.5 billion Delta Access expansion along the Transco corridor is designed to support rising LNG and power-sector demand. The project will initially provide approximately 2.25 Bcfd of capacity and is scheduled to enter service in 2029.

Williams is also advancing the Shelby Trough Connector, which expands its LEG system into the growing Shelby Trough area of the Haynesville. The project is expected to provide an initial capacity of 750 million cubic feet per day (MMcfd), with potential expansion to 1.5 Bcfd. It will include a new lateral and additional compression infrastructure and is targeted for service in the second quarter of 2028.

Williams expects Gulf Coast LNG demand to increase by approximately 20 Bcfd over the next decade, highlighting the strategic importance of its expanded gas infrastructure network.

Following the acquisition, Williams projects 2026 adjusted EBITDA of $8.3 billion to $8.5 billion and growth capital expenditure of $7.3 billion to $7.9 billion. The company also estimates an updated 2026 leverage ratio midpoint of approximately 3.75x after incorporating Momentum’s pro forma EBITDA contribution.

EnCap Flatrock described the transaction as one of the most significant private U.S. midstream deals, while Momentum said the sale demonstrates continued growth in domestic and international demand for U.S. hydrocarbons.

Impact on Product & Chemical Commodity Prices

The acquisition is primarily positive for natural gas and associated gas-based chemical commodities because it expands pipeline, gathering, processing and transportation capacity in the Haynesville basin. Improved connectivity could support higher natural gas production and more reliable Gulf Coast supply, potentially limiting regional gas price spikes as LNG and power demand grows. In the near term, greater infrastructure availability may keep U.S. natural gas prices relatively stable by reducing transportation bottlenecks. However, stronger LNG exports and power-sector consumption could tighten the overall supply-demand balance over time, supporting higher natural gas prices. This could gradually increase feedstock costs for ammonia, methanol, hydrogen and other gas-intensive chemical producers, potentially putting upward pressure on their prices.