Williams Companies has agreed to acquire Momentum Midstream LLC in a deal valued at $5.5 billion. The acquisition, from private equity firm EnCap Flatrock Midstream, significantly expands Williams' natural gas transportation and storage network along the US Gulf Coast.

The transaction includes a cash payment of $9.1 billion, subject to certain adjustments, and the assumption of approximately $3.3 billion in debt. This strategic move is expected to enhance Williams' position in the rapidly growing Gulf Coast market, providing new outlets for producers and increased access to export facilities.

Momentum Midstream operates a substantial network of pipelines and related infrastructure, including recently completed projects that connect to major gas processing facilities. The deal is anticipated to close in the third quarter of 2023, pending regulatory approvals and customary closing conditions. Williams expects the acquisition to be accretive to its adjusted EBITDA and distributable cash flow per share.