Williams, a prominent player in the natural gas sector, has finalized an agreement to acquire Momentum Midstream from EnCap Flatrock Midstream for a total consideration of up to $5.5 billion. This significant transaction involves a combination of $3.5 billion in cash and assumed debt, alongside approximately $2 billion in Williams' equity. The completion of this acquisition is contingent upon receiving the necessary regulatory approvals and satisfying standard closing conditions.
Williams Expands Natural Gas Infrastructure with Momentum Midstream Acquisition
Williams' acquisition of Momentum Midstream signifies a major expansion in its natural gas operations. Momentum Midstream, headquartered in Houston, Texas, boasts an impressive network spanning over 4,000 miles of natural gas gathering and transmission pipelines. This extensive infrastructure is critical for serving more than one million dedicated acres and delivers natural gas to vital locations along the Gulf Coast. These include the Bethel, Carthage, and Silsbee hubs in eastern Texas, as well as the Gillis hub in southwestern Louisiana. The strategic importance of this acquisition lies in enhancing Williams' capacity and reach within the energy market.
The acquired system possesses a substantial capacity of approximately six billion cubic feet per day (bcf/d), catering to a diverse clientele of over 140 customers. This customer base includes industrial end-users, power generation facilities, city gate distribution points, and liquefied natural gas (LNG) operations. Momentum Midstream's previous owner, EnCap Flatrock Midstream, a private equity firm established in 2008, had strategically expanded Momentum's assets. Notably, in late 2022, Momentum Midstream acquired two gas-gathering and transmission assets in the Haynesville Shale and committed to the New Generation Gas Gathering (NG3) project. The NG3 pipeline, stretching 255 miles, provides 1.75 bcf/d of gas deliverability to Gillis, Louisiana, and incorporates a carbon capture and sequestration program designed to manage up to 1.8 million tonnes of CO₂ annually. In April 2025, Momentum Midstream further solidified its market position by acquiring Clearfork Midstream, thereby evolving into a comprehensive wellhead-to-market natural gas midstream platform. Frank Tsuru, CEO of Momentum Midstream, highlighted the company's success in building a premier natural gas system to meet increasing Gulf Coast demand, affirming the continued growth of US hydrocarbon demand both domestically and internationally, making assets like M6 crucial for fulfilling this need. Financial advisory roles for Momentum Midstream were handled by Barclays and Jefferies, with legal counsel provided by Kirkland & Ellis, while Willkie Farr & Gallagher represented EnCap Flatrock.
Williams' Strong Financial Performance Fuels Strategic Growth
The acquisition comes as Williams demonstrates robust financial health. The company recently released its unaudited financial results for the three and six months ending June 30, 2026, reporting a GAAP net income of $827 million, or $0.68 per diluted share. This represents a significant 51% increase compared to the same period in the previous year. Such strong financial performance provides a solid foundation for strategic investments like the Momentum Midstream acquisition.
Furthermore, Williams reported an adjusted net income of $614 million, or $0.50 per diluted share, marking an 8% year-over-year (YoY) increase. The adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) also saw a 6% YoY rise, reaching $1.92 billion. Reflecting the positive impact of the Momentum acquisition, Williams has adjusted its 2026 adjusted EBITDA guidance midpoint upwards by $200 million, now projecting it to reach $8.4 billion. This optimistic outlook underscores the company's confidence in the strategic benefits of integrating Momentum Midstream's assets and operations. Earlier this year, in April, Williams initiated the construction of the Northeast Supply Enhancement project, aimed at expanding its Transco pipeline network, further demonstrating its commitment to continuous growth and infrastructure development within the natural gas industry.
