EnCap Flatrock Sells Momentum Midstream to Williams in $5.5 Billion Deal
EnCap Flatrock Midstream has announced the signing of definitive agreements to sell its portfolio company, Momentum Midstream (also known as M6), to The Williams Companies in a transaction valued at up to $5.5 billion. The agreement marks one of the largest privately backed midstream energy transactions in the United States and highlights the increasing value of natural gas infrastructure as demand for reliable energy continues to expand across domestic and international markets.
The acquisition underscores the growing importance of large-scale natural gas transportation and gathering systems that connect prolific production basins with industrial facilities, power generators, liquefied natural gas (LNG) export terminals, and local distribution networks. As energy demand accelerates, particularly along the U.S. Gulf Coast, infrastructure capable of delivering dependable natural gas supplies has become increasingly attractive to strategic investors.
Under the terms of the agreement, Williams will acquire Momentum Midstream through a combination of cash, debt assumption, and equity. The transaction includes approximately $3.5 billion in cash and debt consideration, along with nearly $2.0 billion in Williams common equity, bringing the total transaction value to as much as $5.5 billion.
The acquisition remains subject to customary regulatory approvals and standard closing conditions before it can be finalized.
Major Milestone for EnCap Flatrock
The transaction represents a significant achievement for EnCap Flatrock Midstream, which has backed Momentum Midstream’s growth strategy over recent years. Since becoming a financial sponsor of the company, EnCap Flatrock has supported an aggressive expansion plan focused on building one of the Gulf Coast’s largest integrated natural gas gathering and transmission systems.
Momentum has rapidly evolved from a regional infrastructure operator into a comprehensive wellhead-to-market platform serving multiple segments of the natural gas value chain.
The sale provides a successful exit for EnCap Flatrock while demonstrating continued investor confidence in high-quality midstream infrastructure that supports North America’s expanding natural gas production and LNG export capabilities.
Momentum’s Extensive Infrastructure Network
Headquartered in Houston, Texas, Momentum Midstream has established a premier natural gas transportation network strategically positioned across the Gulf Coast region.
Its infrastructure portfolio includes more than 4,000 miles of natural gas gathering and transmission pipelines, making it one of the largest independent systems operating in the region.
The network is supported by more than 1 million dedicated acres under long-term commitments, providing a reliable supply of natural gas from some of the country’s most productive producing regions.
Momentum’s assets connect key production areas to several strategically important natural gas trading and transportation hubs, including:
- Bethel Hub in East Texas
- Carthage Hub in East Texas
- Silsbee Hub in East Texas
- Gillis Hub in Southwest Louisiana
These hubs serve as critical connection points for interstate pipeline systems and LNG export facilities, enabling natural gas to reach domestic consumers as well as international markets.
Serving a Diverse Customer Base
Momentum’s infrastructure supports approximately 6 billion cubic feet per day (Bcf/d) of natural gas transportation capacity.
Its customer portfolio reflects the diversity of today’s natural gas market and includes more than 140 commercial customers across multiple sectors.
These customers include:
- 34 industrial facilities
- 26 electric power plants
- 16 city gate distribution systems
- 10 LNG export facilities
- Numerous upstream natural gas producers and marketers
The breadth of this customer base provides diversified revenue streams while positioning Momentum to benefit from continued industrial expansion, power generation growth, and increasing LNG exports from the Gulf Coast.
Strategic Expansion Through Acquisitions
Momentum’s transformation into a leading midstream company has been driven by a combination of organic infrastructure development and targeted acquisitions.
A major milestone occurred in September 2022, when the company acquired two natural gas gathering and transmission systems located within the Haynesville Shale.
The Haynesville has emerged as one of North America’s most productive natural gas basins due to its proximity to Gulf Coast LNG export terminals and industrial demand centers.
The acquisitions significantly expanded Momentum’s operational footprint while increasing gathering capacity and strengthening connectivity between production regions and downstream markets.
These additions also created opportunities to integrate newly acquired assets into the company’s broader pipeline network, improving operational efficiency and transportation flexibility.
Launch of the NG3 Project
Alongside those acquisitions, Momentum announced the Final Investment Decision (FID) for its flagship New Generation Gas Gathering (NG3) project.
NG3 represents one of the company’s largest infrastructure investments and was designed to address rapidly growing demand for natural gas transportation along the Gulf Coast.
The project includes approximately 255 miles of new pipeline infrastructure capable of transporting 1.75 Bcf/d of natural gas.
NG3 delivers production from the Haynesville directly to Gillis, Louisiana, one of the country’s most important natural gas aggregation and dispatch hubs.
The Gillis hub serves numerous LNG export facilities, interstate pipelines, industrial customers, and power generators, making it a central component of the U.S. natural gas supply chain.
As LNG export capacity continues expanding along the Gulf Coast, infrastructure such as NG3 plays an increasingly important role in ensuring adequate gas supplies reach liquefaction facilities.
Industry-Leading Carbon Management
A distinguishing feature of the NG3 project is its integrated carbon capture and sequestration (CCS) program.
The project includes one of the first carbon management systems directly integrated into a major natural gas gathering network.
The CCS facility is designed to capture and permanently store up to 1.8 million metric tons of carbon dioxide annually, reducing emissions associated with natural gas transportation and processing.
The incorporation of carbon capture technology reflects broader industry efforts to lower the environmental footprint of natural gas infrastructure while supporting growing demand for cleaner energy solutions.
Projects combining conventional midstream assets with emissions reduction technologies are becoming increasingly attractive to investors seeking long-term infrastructure capable of supporting evolving energy transition objectives.
Acquisition of Clearfork Midstream
Momentum continued expanding its footprint in April 2025 through the acquisition of Clearfork Midstream.
The acquisition further strengthened the company’s position as a fully integrated natural gas midstream platform spanning production gathering, transportation, and market delivery.
By combining Clearfork’s assets with its existing infrastructure, Momentum enhanced connectivity across multiple producing regions while increasing transportation optionality for customers.
The acquisition also expanded the company’s ability to serve growing Gulf Coast demand, particularly from LNG exporters and industrial consumers.
Following the integration, Momentum emerged as one of the most significant independent natural gas infrastructure providers in the region.
Positioned for Growing Energy Demand
The Gulf Coast remains one of the fastest-growing natural gas demand centers in North America.
Rising electricity consumption, industrial development, petrochemical expansion, and the continued build-out of LNG export terminals are driving sustained increases in pipeline utilization.
Natural gas also continues to play a key role in supporting grid reliability while complementing renewable energy resources.
Momentum’s infrastructure has been strategically developed to capitalize on these long-term market fundamentals, providing transportation capacity from prolific production basins to rapidly expanding end markets.
Leadership Reflects on Company’s Growth
Momentum Chief Executive Officer Frank Tsuru said the company’s accomplishments validate the long-term strategy established several years ago.
He noted that Momentum set out in 2022 to create a premier natural gas gathering and transmission network capable of serving increasing Gulf Coast demand.
According to Tsuru, the dedication and expertise of the company’s employees enabled Momentum to successfully execute that vision.
He also emphasized that the transaction reinforces confidence in continued growth for both domestic and international demand for U.S. natural gas, adding that infrastructure like Momentum’s will remain essential to delivering reliable energy supplies.
Successful Investment for EnCap Flatrock
EnCap Flatrock Founder Billy Lemmons described the transaction as one of the largest private midstream deals completed in the United States.
He said the sale delivers strong value for investors while recognizing the exceptional work performed by Momentum’s management team and employees throughout the company’s development.
Lemmons praised both executive leadership and field personnel for successfully commercializing, constructing, and safely operating a highly complex natural gas gathering and transmission system spanning thousands of miles.
He noted that the professionalism and execution demonstrated by the Momentum team played a central role in creating a business capable of attracting one of the industry’s largest strategic acquisitions.
Strengthening Williams’ Midstream Portfolio
For Williams, the acquisition significantly expands its natural gas infrastructure footprint across one of the nation’s most strategically important energy corridors.
The combination enhances Williams’ ability to serve growing LNG export demand, power generation, industrial customers, and local utilities while increasing connectivity throughout the Haynesville and Gulf Coast markets.
As North American natural gas production continues to rise and global demand for LNG remains strong, the acquisition positions Williams to benefit from long-term infrastructure investment opportunities.
The transaction also reflects continued consolidation within the midstream sector as major operators seek to build larger, more integrated networks capable of efficiently transporting natural gas from producing regions to rapidly expanding domestic and international markets.
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