Williams to buy Momentum for $5.5 billion, misses quarterly estimates

Total costs and expenses rose to $1.87 billion for the quarter ended June 30 from $1.84 billion a year ago. Quarterly interest expenses increased about 6% to $371 million from $350 million a year earlier.

Higher-for-longer interest rates raise borrowing costs for power companies, which usually need more capital for expenses such as maintaining and upgrading the electric grid.

The company's second-quarter adjusted profit of $0.50 per share missed analysts' average estimates of $0.51, according to data compiled by LSEG, hurt by higher operation and interest expenses.

Pipeline company Williams said on Monday it would buy Momentum Midstream, as it bets on growing demand from LNG export facilities, power generation and industrial users along the U.S. Gulf Coast.

The deal, which includes about $3.5 billion in cash and assumed debt and roughly $2 billion in Williams stock, will expand Williams' footprint in the Haynesville shale basin, a key supplier of natural gas to Gulf Coast LNG terminals.

U.S. pipeline companies are benefiting from booming oil and gas output in the Permian Basin and rising natural gas demand amid record LNG exports and higher electricity use from AI operations, cryptocurrency mining and data centers.

The deal will add more than 4,000 miles of pipelines, over 1 million dedicated acres and gathering, processing and transportation assets with a combined capacity of about 6 billion cubic feet of gas per day, Williams said.

Williams also announced the $1.5-billion Delta Access pipeline, a 2.25-bcfd project slated for early 2029, and the 750-mmcfd Shelby Trough Connector that is expected to come online in mid-2028.

Shares of the Tulsa, Oklahoma-based company rose about 2% in extended trading.