Williams Cos. is reportedly close to securing an agreement to acquire Momentum Midstream for about $5.5 billion, a purchase that would mark the largest transaction in the Tulsa, Oklahoma-based pipeline operator’s history. The target is currently owned by private equity firm EnCap Flatrock Midstream, which is understood to be in the process of selling the asset.
The proposed deal would expand Williams’ network beyond its presently reported 30,000 miles of infrastructure. Specifically, the acquisition would add capacity to move natural gas from production in the Haynesville fields of East Texas and Northern Louisiana to export terminals along the US Gulf Coast.
On markets, Williams shares finished marginally higher on the news, closing at $77.92 in New York trading on Friday, a rise of 0.5 percent. That closing price implies a market value for the company of about $95 billion.
EnCap Flatrock Midstream was formed in 2008 as a partnership between Flatrock Energy Advisors and EnCap Investments, according to information provided by the party that lists its founding partners. The transaction under discussion would transfer Momentum Midstream from that ownership group to Williams if completed on the terms currently reported.
The reported acquisition would increase Williams’ capacity to link Haynesville production to Gulf Coast export infrastructure, augmenting its transport options and physical footprint. The exact terms of any finalized agreement and the timeline for closing were not disclosed in the reports indicating advanced negotiations.
Market context and immediate reaction
- Williams is pursuing a purchase valued at roughly $5.5 billion that would be its largest-ever deal.
- The transaction would add new pipeline capacity from the Haynesville region to Gulf Coast export points, expanding Williams’ network beyond 30,000 miles.
- Williams stock closed up 0.5 percent to $77.92 on Friday, implying a market capitalization of about $95 billion.
Deal specifics and current status
Reports indicate Williams is in advanced discussions to acquire Momentum Midstream from EnCap Flatrock Midstream. No definitive agreement, closing date, or further financial terms beyond the reported headline price have been disclosed in those reports.
This article reflects the information available in the reports describing the potential transaction and does not add further detail beyond those accounts.