Williams to buy Momentum, raises 2026 EBITDA forecast

"We are announcing the acquisition of Momentum Midstream, a highly strategic platform that strengthens our position in the country's most important LNG demand corridor," CEO Chad Zamarin said in the company statement.

Momentum adds more than 4,000 miles of pipeline and more than 1 million dedicated acres in the Haynesville, with gathering capacity of 6 billion cubic feet per day (cfd) and three take-or-pay pipelines able to move 4.05 billion cfd.

Williams said the transaction implied about 8.5 times projected 2027 EBITDA and was expected to add to earnings per share and available funds from operations per share.

Aug. 3 (Reuters) - Williams Companies said it would buy Momentum Midstream and raise its annual outlook, expanding in the Haynesville shale to meet growing Gulf Coast demand for liquefied natural gas and power.

The pipeline operator said the deal would be valued at up to $5.5 billion, including about $3.5 billion of cash and debt consideration and roughly $2 billion of Williams equity.

It raised its 2026 adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, forecast to $8.3 billion to $8.5 billion from a prior midpoint of $8.2 billion.

The company also announced expansion projects linked to the deal.

It said the Delta Access project would cost about $1.5 billion and provide initial capacity of 2.25 billion cfd, with startup expected in the first quarter of 2029.

The Shelby Trough Connector would add 750 million cfd initially and enter service in the second quarter of 2028.