The Williams Companies Completes Momentum Midstream Acquisition to Boost Natural Gas Infrastructure
The Williams Companies has completed its $5.5 billion acquisition of Momentum Midstream, enhancing its presence in the Haynesville shale and expanding connectivity between natural gas supply and Gulf Coast demand centers such as LNG export facilities, power generation, and industrial users. The deal includes approximately $3.5 billion in cash and debt consideration plus $2 billion in Williams equity. It adds over 4,000 miles of pipeline, more than a million dedicated acres, significant gathering capacity, and three take-or-pay pipelines with substantial transportation capability. The acquisition is expected to be accretive to adjusted funds from operations (AFFO) per share and earnings per share (EPS), valued at about 8.5 times projected 2027 EBITDA. Williams reported strong second-quarter performance, including a rise in adjusted EBITDA and AFFO, with updated guidance reflecting the Momentum acquisition's impact. The strategic value of this deal lies in its positioning within key growth areas for U.S. natural gas demand—LNG exports and power generation—and an integrated network that supports predictable cash flows through fixed-fee earnings and take-or-pay contracts.
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Topics: Gulf Coast Markets Infrastructure Expansion LNG Demand Natural Gas