Williams Closes $5.5 Billion Momentum Midstream Acquisition
Williams has completed its approximately $5.5 billion acquisition of Momentum Midstream, substantially expanding its Haynesville natural gas infrastructure platform serving Gulf Coast LNG, power and industrial demand.
- Williams has completed its acquisition of Momentum Midstream.
- The transaction is valued at approximately $5.5 billion.
- The deal includes about $3.5 billion of cash and debt consideration and roughly $2 billion of Williams equity.
- Momentum adds more than 4,000 miles of pipe and over 1 million dedicated acres.
- The acquired platform includes 6 Bcf/d of gathering capacity and 4.05 Bcf/d of transportation capacity.
Williams Expands Its Haynesville Natural Gas Platform
MONTREAL (Oil Monster): Williams (NYSE: WMB) has closed its acquisition of Momentum Midstream in a transaction valued at approximately $5.5 billion, expanding the company's integrated natural gas infrastructure platform in the Haynesville to serve growing Gulf Coast LNG, power and industrial demand.
The transaction includes approximately $3.5 billion of cash and debt consideration and roughly $2 billion of Williams' equity.
What Momentum Midstream Adds to Williams
Momentum's Haynesville platform adds more than 4,000 miles of pipe, over 1 million dedicated acres, 6 Bcf/d of gathering capacity, multiple processing and treating facilities and three take-or-pay pipelines with 4.05 Bcf/d of transportation capacity.
The acquisition expands Williams' presence in the nation's fastest growing natural gas supply basin, strengthening connectivity between premier supply and growing demand while creating opportunities for future expansions in addition to the two already announced.
Williams Sees Growth Platform for LNG, Power and Industry
"With the acquisition now complete, Williams has established a premier Haynesville position that strengthens our ability to serve rapidly growing LNG, power and industrial demand along the Gulf Coast," said Chad Zamarin, Williams president and chief executive officer.
"Momentum brings a high-quality customer base, durable take-or-pay contracts and complementary infrastructure that provides a growth platform to advance our natural gas-focused strategy. We are pleased to welcome Momentum employees to Williams and look forward to delivering safe, reliable service while creating long-term value for shareholders."
Financial and Legal Advisors on the Transaction
BofA Securities acted as lead financial advisor to Williams. Truist Securities also acted as a financial advisor to Williams in connection with the transaction. Davis Polk & Wardwell served as Williams' legal counsel on the transaction.
Williams-Momentum Acquisition: Questions and Answers
How much is the Williams acquisition of Momentum Midstream worth?
The transaction is valued at approximately $5.5 billion.
How is Williams paying for Momentum Midstream?
The transaction includes approximately $3.5 billion of cash and debt consideration and roughly $2 billion of Williams equity.
How much pipeline infrastructure does Momentum add?
Momentum's Haynesville platform adds more than 4,000 miles of pipe and over 1 million dedicated acres.
What capacity does Momentum's Haynesville platform provide?
The platform includes 6 Bcf/d of gathering capacity and three take-or-pay pipelines with 4.05 Bcf/d of transportation capacity.
Which markets is the expanded Williams platform intended to serve?
Williams said the expanded platform will serve growing Gulf Coast LNG, power and industrial demand.
Courtesy: www.businesswire.com