US-based natural gas company Williams has agreed to purchase Momentum Midstream (M6 Midstream) from EnCap Flatrock Midstream in a deal worth up to $5.5bn.
The transaction includes $3.5bn in cash and debt consideration and approximately $2bn in Williams equity
Completion of the acquisition is subject to regulatory review and standard closing conditions. Momentum Midstream, headquartered in Houston, Texas, operates more than 4,000 miles of natural gas-gathering and transmission pipelines. The network serves more than one million dedicated acres and supplies gas to critical Gulf Coast locations including the Bethel, Carthage and Silsbee hubs in east Texas and the Gillis hub in south-west Louisiana.
Its system has a capacity of around six billion cubic feet per day (bcf/d), serving more than 140 customers including industrial end-users, power plants, city gates and liquefied natural gas facilities. Momentum Midstream’s present owner, EnCap Flatrock Midstream, is a private equity firm founded in 2008 by Flatrock Energy Advisors and EnCap Investments. In late 2022, Momentum Midstream acquired two gas-gathering and transmission assets in the Haynesville Shale.