Williams has signed an agreement to acquire Momentum Midstream in a transaction valued at up to $5.5 billion as the U.S. pipeline operator expands its position in the Haynesville shale.

The consideration consists of approximately $3.5 billion in cash and assumed debt and around $2 billion in Williams equity. The transaction remains subject to customary closing conditions, including U.S. antitrust clearance.

Momentum's Haynesville platform includes more than 4,000 miles of pipelines, over 1 million dedicated acres and gathering capacity of 6 billion cubic feet per day. It also operates processing and treating facilities and three take-or-pay pipelines with combined transportation capacity of 4.05 Bcf per day.

Williams said the acquisition is valued at approximately 8.5 times projected 2027 EBITDA and is expected to increase both earnings per share and available funds from operations per share. Those expectations are forward-looking and depend partly on the transaction closing and the acquired assets performing as projected.

The company also announced two expansion projects associated with the deal.

The $1.5-billion Delta Access project would provide an initial 2.25 Bcf per day of capacity along the Transco corridor and is scheduled to enter service in the first quarter of 2029. The Shelby Trough Connector, an expansion of Williams' Louisiana Energy Gateway system, would initially transport 750 million cubic feet per day, with the potential to reach 1.5 Bcf per day. It is targeted for completion in the second quarter of 2028.

The investments are intended to connect additional Haynesville production with LNG export facilities, power generators and industrial customers along the Gulf Coast. Williams projects that regional LNG demand could increase by approximately 20 Bcf per day over the next decade.

The acquisition was announced alongside Williams' second-quarter results. Net income attributable to common shareholders rose 51% from a year earlier to $827 million, or $0.68 per diluted share. The increase included a $126-million gain from the sale of the company's Brazos Permian II investment and benefited from changes in unrealized commodity derivative values.

Adjusted EBITDA, which excludes certain items, increased 6% to $1.92 billion. Adjusted net income rose 8% to $614 million, while available funds from operations increased 10% to $1.45 billion.

Operating cash flow moved in the opposite direction, declining to $1.38 billion from $1.45 billion a year earlier. Williams attributed the decrease mainly to working-capital changes related to Transco rate refunds paid in April.

Service revenue growth was supported by recently commissioned projects, new Gulf Coast volumes, higher storage revenue and increased gathering volumes. The company also reported contributions from acquisitions completed in 2025.

Williams raised the midpoint of its 2026 adjusted EBITDA guidance by $200 million to reflect the Momentum transaction. It now expects adjusted EBITDA of between $8.3 billion and $8.5 billion. Forecast growth capital spending was set at $7.3 billion to $7.9 billion.

By Charles Kennedy for Oilprice.com

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