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Williams in Late-Stage Talks to Buy Momentum Midstream for $5.5 Billion
Tulsa-based Williams is negotiating to buy Momentum Midstream from EnCap Flatrock Midstream. The transaction, valued at about $5.5 billion, could close within weeks if finalized.
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Williams is in late-stage talks to acquire Momentum Midstream in a deal estimated at about $5.5 billion, OilPrice.com reported, citing Bloomberg sources. Tulsa-based Williams could announce the transaction within weeks. The seller is private equity firm EnCap Flatrock Midstream, which was created in 2008 by Flatrock Energy Advisors and EnCap Investments L.P.
Momentum Midstream owns and operates the only pure pipeline header system spanning the Haynesville Shale. Momentum Midstream’s NG3 pipeline runs 250 miles with a capacity of 2.3 Bcf/d and connects the Haynesville Shale directly to Gillis, Louisiana. The company operates about 4,000 miles of pipelines with total system capacity of 6 Bcf/d.
It serves 34 industrial end users, 26 power plants, 16 city gates, and 10 LNG facilities. Williams’ operations cover the deepwater U.S. Gulf, the Rockies, the Pacific Northwest, and the Eastern Seaboard.
The company handles about one-third of the natural gas used daily in the United States for residential consumption and electricity generation. Williams reported record first-quarter earnings, with net income rising 25 percent year over year.
