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(Bloomberg) — Williams Cos. is in advanced talks to acquire rival natural gas pipeline operator Momentum Midstream for about $5.5 billion in what would be one of its largest deals ever, people familiar with the matter said.
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Tulsa, Oklahoma-based Williams is putting the finishing touches on an agreement to buy the company from private equity firm EnCap Flatrock Midstream, the people said, requesting anonymity because the information is private.
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A deal could be announced in around a week’s time, the people said. No final decision has been made and EnCap could opt to hold onto the company, the people added.
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Williams closed up 0.5% to $77.92 on Friday in New York trading, giving the company a market value of $95 billion.
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Representatives for Williams and EnCap Flatrock Midstream didn’t respond to requests for comment. EnCap Flatrock was formed in 2008 as partnership between Flatrock Energy Advisors and EnCap Investments, according to its website.
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The transaction would give Williams, which owns more than 30,000 miles (48,280 kilometers) of pipeline infrastructure, additional capacity to move gas from the prolific Haynesville fields in East Texas and Northern Louisiana to export terminals on the US Gulf Coast.
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The US, already the world’s top liquefied natural gas exporter, is expected to roughly double its international shipments by the end of the decade after a wave of new terminals enter service in Texas and Louisiana.
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Momentum’s management team has grown the business by scooping up assets in East Texas and Louisiana. The company operates 4,000 miles of pipeline serving 10 LNG facilities and 26 power plants, according to its website.
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—With assistance from Julian Hast.
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English (US)