Williams to acquire Momentum Midstream, expanding Haynesville gas position

Williams Companies has agreed to acquire Momentum Midstream, adding a Haynesville gas position built to feed growing liquefied natural gas export and power demand along the Gulf Coast under long-term take-or-pay contracts. The company disclosed the deal alongside its second-quarter 2026 earnings and raised its full-year 2026 adjusted EBITDA guidance midpoint by $200 million, to $8.4 billion, citing the acquisition.

Second-quarter results

Williams reported GAAP net income of $827 million, or $0.68 per diluted share, up 51% from $546 million, or $0.45 per share, a year earlier. Adjusted net income rose 8% to $614 million, or $0.50 per share. Adjusted EBITDA reached $1.921 billion, up $113 million, or 6%, from $1.808 billion in the second quarter of 2025.

Cash flow from operations fell to $1.376 billion from $1.450 billion a year earlier. Available funds from operations rose 10% to $1.450 billion, up $133 million. The dividend coverage ratio, measured on an AFFO basis, was 2.26 times, up from 2.16 times. Debt stood at 3.67 times adjusted EBITDA at quarter end, down from 3.80 times a year earlier. Capital investments, excluding acquisitions, rose to $1.642 billion from $1.039 billion.

What drove the results

Williams said higher service revenues, up $111 million for the quarter, came from projects placed in service, higher volumes from its Gulf operations, higher storage revenues and higher gathering volumes, including acquisitions in the West. Gas marketing margins improved, and equity earnings rose on contributions from Blue Racer Midstream and Appalachia Midstream. The quarter also included a $126 million net gain from the June 2026 sale of the Brazos Permian II equity-method investment. Those gains were partly offset by lower upstream results following the sale of the South Mansfield interests, higher operating and administrative expenses, higher net interest expense on increased long-term debt, and a higher income tax provision tied to higher pre-tax income.

Power Innovation and Haynesville growth

Williams completed phase one of Socrates, its first Power Innovation project, with phase two on track to finish in the fourth quarter of 2026. It finalized a Power Innovation joint venture with Blackstone that adds $5.34 billion of low-cost capital for near-term Power Innovation projects. The company said customers increasingly want fast, reliable power solutions as demand grows. Williams also signed customer agreements for Transco's Leidy Access and Garden Connector expansions and further upsized Power Express.

The Momentum Midstream acquisition builds on that push, adding a Haynesville position tied to long-term take-or-pay contracts for LNG and power customers along the Gulf Coast. Zamarin said Williams is "built to execute across multiple growth opportunities at once."