Williams Cos. is reportedly in advanced talks to acquire natural gas pipeline operator Momentum Midstream for an estimated $5.5 billion. This potential acquisition would represent one of Williams' largest deals ever and is being negotiated to purchase the company from private equity firm EnCap Flatrock Midstream. A formal announcement regarding the transaction could be made within the next week, although a final agreement has not yet been reached, and EnCap could still opt to retain ownership of Momentum Midstream.
The acquisition would significantly expand Williams' natural gas infrastructure, particularly in the Haynesville fields of East Texas and Northern Louisiana. Momentum Midstream currently operates approximately 4,000 miles of pipeline, providing 6 billion cubic feet per day of gathering and processing capacity. Its network supports 10 LNG facilities and 26 power plants, and includes a 65% interest in the New Generation Gas Gathering (NG3) pipeline, which transports 2.3 billion cubic feet per day to Gillis, Louisiana, a crucial Gulf Coast interconnection point for US LNG export terminals. This would complement Williams' existing network of over 30,000 miles of pipeline, positioning the combined entity to benefit from the projected doubling of US liquefied natural gas exports by the end of the decade.
Analysts suggest the estimated $5.5 billion price implies a 22-25x EBITDA multiple based on S&P Global Ratings' forecasts. This premium is notably higher than the 10-14x range at which US public midstream peers typically trade. A successful deal would mark a significant liquidity event for EnCap Flatrock, which has backed Momentum since 2022. The transaction is seen as a direct example of the ongoing infrastructure buildout driven by robust growth in global LNG demand, fueled by Asian consumption, Europe's energy security pivot, and increasing AI-driven electricity demand.
