Williams Companies agreed to buy Momentum Midstream for up to $5.5 billion, adding pipeline and gathering assets in the Haynesville shale to serve growing Gulf Coast demand for liquefied natural gas and power. The company also raised its 2026 adjusted EBITDA forecast to $8.3 billion to $8.5 billion, up from a prior midpoint of $8.2 billion.
CEO Chad Zamarin called Momentum "a highly strategic platform" that strengthens Williams' position in what he called "the country's most important LNG demand corridor."
Deal terms
The transaction is valued at up to $5.5 billion: about $3.5 billion in cash and debt consideration and roughly $2 billion in Williams Companies equity. Williams said the price implies about 8.5 times Momentum's projected 2027 EBITDA, and that the deal is expected to add to earnings per share and available funds from operations per share.
What Momentum brings
Momentum adds more than 4,000 miles of pipeline and more than 1 million dedicated acres in the Haynesville shale. Its gathering system can move 6 billion cubic feet of gas a day, and its three take-or-pay pipelines carry up to 4.05 billion cubic feet a day.
Two new pipeline projects
Williams tied two expansion projects to the deal. The Delta Access project will cost about $1.5 billion, start with 2.25 billion cubic feet a day of capacity, and enter service in the first quarter of 2029. The Shelby Trough Connector will add 750 million cubic feet a day of initial capacity and start up in the second quarter of 2028.
Second-quarter results
Separately, Williams reported second-quarter adjusted EBITDA of $1.921 billion, up from $1.808 billion a year earlier. Quarterly net income rose to $827 million, or $0.68 per diluted share, from $546 million, or $0.45 per share, a year earlier. Zamarin said the quarter reflected the company's ability to "capture rising demand for reliable energy infrastructure."
