Williams Companies Nears $5.5 Billion Acquisition of Momentum Midstream, Adding 4,000 Miles of Haynesville-to-Gulf Pipeline

Williams Companies (NYSE: WMB) is approaching the largest acquisition in its history, according to Bloomberg reporting on June 28. The Tulsa, Oklahoma-based pipeline operator is in advanced talks to buy Momentum Midstream from private equity firm EnCap Flatrock Midstream for approximately $5.5 billion. A deal could be announced within a week, though no final agreement has been reached and the seller could still opt to retain the asset.

Momentum Midstream: Assets and Geographic Footprint

Momentum operates roughly 4,000 miles of natural gas pipeline infrastructure across East Texas and northern Louisiana. Its network directly serves 10 liquefied natural gas export facilities and 26 power plants. The company's flagship system is the NG3 pipeline, a 250-mile, 2.3 billion cubic feet per day system that carries Haynesville shale gas to LNG export terminals near Gillis, Louisiana.

The NG3 Economics: Margin Math the Wire Stories Missed

At full throughput, NG3 moves 2.3 billion cubic feet of natural gas per day, equivalent to 2.3 million MMBtu. Henry Hub front-month gas traded at $3.20 per MMBtu on June 29, per CME data tracked by Trading Economics. TTF European gas futures traded at 40.6 euros per megawatt-hour on June 29, equal to $13.58 per MMBtu at Monday's euro-dollar rate of $1.1410, per Trading Economics. The Henry Hub-to-TTF spread therefore stands at $10.38 per MMBtu. LNG shippers routing Haynesville volumes through NG3 to Gulf Coast liquefaction terminals clear $23.9 million per day in gross transatlantic margin before liquefaction and ocean-freight costs.

That $23.9 million figure equals the $10.38 per MMBtu spread multiplied by NG3's 2.3 million MMBtu of daily capacity, a calculation Oil Authority performed using the prices cited above. At a $0.40 per MMBtu pipeline tariff, a standard range for Gulf Coast gathering and transport, Williams would collect $920,000 daily from NG3 at capacity, totaling $336 million annually from that asset alone. Valued at 15 times EBITDA, the midstream industry standard, NG3's implied standalone value reaches $5.04 billion. The full 4,000-mile Momentum network adds revenue from 26 power plant connections and additional LNG facilities, supporting the $5.5 billion headline price.

Williams' Strategy and the LNG Export Build-Out

Williams already operates more than 30,000 miles of natural gas pipeline. Its primary subsidiary, the Transcontinental Gas Pipe Line (Transco), is the largest natural gas pipeline in the United States by volume, running from the Gulf Coast to New York. Transco's geographic focus is the Northeast, which leaves Williams without a strong Haynesville-to-Gulf connection today. Acquiring Momentum would fill that gap precisely as Haynesville becomes the US's fastest-growing dry-gas basin.

US LNG exports averaged 18.9 billion cubic feet per day in early 2026, per the US Energy Information Administration, up from 18.6 bcfd in March. New liquefaction trains from multiple operators are scheduled to enter service through 2027 and 2028 along the Louisiana and Texas coasts. Each new train requires upstream transport capacity from the Haynesville, and Momentum's NG3 is the existing pipe serving those routes.

The Seller: EnCap Flatrock Midstream

EnCap Flatrock Midstream was formed in 2008 as a joint venture between Houston-based EnCap Investments and Flatrock Energy Advisors. EnCap Investments is one of the largest private equity firms focused on oil and gas in North America, with more than $37 billion of equity commitments raised across its E&P and midstream funds. A $5.5 billion Momentum exit would rank among the largest PE midstream divestitures in recent years. EnCap's broader portfolio spans Permian Basin, Haynesville, and Utica producers, meaning the firm retains upstream exposure to the same basins its midstream asset was built to serve.

Deal Status

Bloomberg reported the advanced-stage talks on June 28, citing unnamed sources with knowledge of the negotiations. Seeking Alpha, Offshore Technology, and Investing.com corroborated the Bloomberg reporting on the same day. Williams' shares closed at $77.92 on Friday, giving the company a market capitalization of $95 billion. At $5.5 billion, Momentum would represent 5.8% of Williams' equity value. If completed, the transaction would be the largest acquisition in Williams' history, according to reporting from multiple outlets.