Williams will acquire Momentum Midstream for up to $5.5 billion, it said in a statement on Monday, a deal which will expand its natural gas infrastructure platform in the Haynesville basin to meet domestic and Gulf Coast LNG export demand.
Williams will buy the company in its entirety with about $3.5 billion in cash and debt and about $2 billion of Williams stock, it said, branding the acquisition an opportunity to capture future growth in natural gas demand.
The acquisition will add more than 4,000 miles of pipe and more than 1 million dedicated acres within four gathering areas with a combined capacity of 6 billion cubic feet per day, along with processing and treatment facilities and three take-or-pay pipelines with a 4.05 Bcf/d capacity.
The value of the acquisition is about 8.5 times projected 2027 EBITDA, the statement said.
As part of the deal, the Delta Access expansion along the Transco corridor will serve growing LNG and power demand. That project, to cost $1.5 billion, will offer 2.25 Bcf/d capacity initially once online in Q1, 2029 and can be expanded thereafter.
Williams said the acquisition and associated pipeline projects will give the company more exposure to long-term growth in demand for natural gas, with Gulf Coast LNG demand seen rising by 20 Bcf/d over the next decade.