Williams to Buy Momentum Midstream in Deal Valued at Up to $5.5 Billion - Crude Oil Prices Today
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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...
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