Williams Agrees to Buy Momentum Midstream for $5.5 Billion

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessWilliams Agrees to Buy Momentum Midstream for $5.5 BillionWilliams Cos. reached a deal to buy Momentum Midstream LLC from the private equity firm EnCap Flatrock Midstream through a deal valued up to $5.5 billion, expanding its natural gas network along the US Gulf Coast.Author of the article:Emma Sanchez, David Carnevali and Julian Hast You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — Williams Cos. reached a deal to buy Momentum Midstream LLC from the private equity firm EnCap Flatrock Midstream through a deal valued up to $5.5 billion, expanding its natural gas network along the US Gulf Coast.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountWilliams will pay $3.5 billion in cash and debt consideration and about $2 billion in stock for the company, according to a statement Monday. The acquisition is one of the largest for Williams and adds to its already dominant position in the prolific Haynesville shale region of East Texas and northern Louisiana. Pipeline operators in the US have been seeking to supply a wave of liquefied natural gas export terminals being constructed amid a global boom in demand.Houston-based Momentum Midstream operates 4,000 miles (6,400 kilometers) of pipelines with a capacity of 6 billion cubic feet of gas a day connecting the Haynesville to LNG facilities, power plants and industrial customers along the Gulf Coast.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againShares of Williams, which reported second-quarter results Monday that beat analysts’ expectations, rose about 1.9% after the close of regular trading in New York. Bloomberg reported in June that Williams was in advanced talks to acquire Momentum Midstream.Despite President Donald Trump’s push to expand US energy infrastructure, building new pipelines remains fraught with legal challenges and a lengthy federal permitting process. Those obstacles have made acquisitions an increasingly attractive way for pipeline operators to expand their networks.Williams, which already owns more than 30,000 miles of pipeline infrastructure, will add capacity to move gas from the Haynesville to export terminals on the US Gulf Coast through the deal to buy Momentum. The US, already the world’s top liquefied natural gas exporter, is expected to roughly double its international shipments by the end of the decade after a wave of new terminals enter service in Texas and Louisiana. As those massive, geopolitically strategic facilities are built, they will put increasing pressure on the pipelines shipping gas from the Haynesville, which is the nearest major gas-producing basin to Gulf.BofA Securities was Williams’ lead financial advisor. Davis Polk & Wardwell was the company’s legal advisor on the deal.—With assistance from Stella Mackler.(Adds shares movement in the fifth paragraph and the advisor in the final paragraph.)This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.