Williams is accelerating its natural gas and power infrastructure expansion through two major capital initiatives, including a Power Innovation joint venture with Blackstone that provides $5.34 billion of low-cost capital and an agreement to acquire Momentum Midstream for up to $5.5 billion.
The Blackstone joint venture is designed to help fund near-term Power Innovation projects as electricity demand rises. Williams completed the first phase of Socrates, its first Power Innovation project, on time and within budget, with the second phase expected to be completed in the fourth quarter of 2026.
At the same time, Williams agreed to acquire 100% of Momentum Midstream for consideration of up to $5.5 billion, consisting of approximately $3.5 billion of cash and debt consideration and roughly $2 billion of Williams equity. The deal expands Williams’ presence in the Haynesville, a major source of natural gas for Gulf Coast LNG, power generation and industrial customers.
Momentum’s platform includes more than 4,000 miles of pipeline and more than 1 million dedicated acres across four gathering areas with combined capacity of 6 Bcf/d. It also includes processing and treating facilities and three take-or-pay pipelines capable of transporting 4.05 Bcf/d. The acquisition carries an implied valuation of approximately 8.5x projected 2027 EBITDA and is expected to be accretive to AFFO per share and EPS.
Williams is pairing the transaction with additional expansion projects. The $1.5 billion Delta Access project is expected to provide 2.25 Bcf/d of initial capacity along the Transco corridor and enter service in the first quarter of 2029. The Shelby Trough Connector is expected to provide 750 MMcf/d initially, with expansion potential to 1.5 Bcf/d, and is targeted for service in the second quarter of 2028.
The investments are aimed partly at a Gulf Coast LNG market where Williams expects demand to increase by approximately 20 Bcf/d over the next decade. The company also signed customer agreements for its Leidy Access and Garden Connector expansions and increased the size of its Power Express project.
Williams generated Q2 Adjusted EBITDA of $1.921 billion, up 6% year-over-year, and AFFO of $1.450 billion, up 10%. The company raised the midpoint of its 2026 Adjusted EBITDA guidance by $200 million to $8.4 billion to reflect the Momentum acquisition.
KEY QUOTES:
“Our Power Innovation platform continues to ramp up as customers look for fast, reliable and scalable solutions to meet growing power demand. With the first phase of Socrates successfully completed within budget and on time and the closing of our joint venture with Blackstone, we have demonstrated best-in-class execution, strengthening our ability to commercialize additional projects and accelerate this important growth platform.”
“At the same time, we continue to advance growth across our broader natural gas infrastructure business. We signed customer agreements for Transco’s Leidy Access and Garden Connector expansions and we further upsized Transco’s Power Express project. Additionally, 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.”
Chad Zamarin, President And Chief Executive Officer Of Williams
