EnCap Flatrock sells Momentum Midstream to Williams for $5.5bn
- Momentum operates a large-scale natural gas system that includes over 4,000 miles of gathering and transmission pipelines delivering natural gas to regions of east Texas and the Gillis Hub in Louisiana.
- The transaction consideration consists of $3.5 billion in cash and debt consideration, and roughly $2.0 billion of Williams equity.
EnCap Flatrock Midstream announced an agreement to sell Momentum Midstream, a midstream natural gas system in the Gulf Coast region, to Williams Companies for up to $5.5 billion.
The transaction consideration consists of $3.5 billion in cash and debt consideration, and roughly $2.0 billion of Williams equity.
Based in Houston, Momentum operates a large-scale natural gas system that includes over 4,000 miles of gathering and transmission pipelines supported by more than 1 million dedicated acres delivering natural gas to regions of east Texas and the Gillis Hub in Louisiana.
The company’s assets provide 6 billion cubic feet per day (Bcf/d) of system capacity to more than 140 customers including 34 industrial companies, 26 power plants, 16 city gates and 10 LNG facilities.
“This sale validates our thesis that demand for U.S. hydrocarbons domestically and abroad will continue to grow and assets like what we’ve built at Momentum are critical to meet that need,” Frank Tsuru, Momentum’s Chief Executive Officer, said in a statement.
Barclays and Jefferies served as financial advisors to Momentum.
With offices in Houston and San Antonio, EnCap Flatrock was formed in 2008 as a partnership between EnCap Investments Flatrock Energy Advisors,
