TULSA, November 10, 2026 — Williams Companies has agreed to acquire Momentum Midstream for $5.5 billion, expanding its natural gas gathering and processing footprint as power demand from AI data centers accelerates. The deal adds scale in key producing basins and positions the Tulsa-based operator to feed more gas into its transmission network.
Core Business and the Momentum Addition
Williams operates a natural gas processing and transportation network that moves about one-third of U.S. natural gas, according to the company. Its assets span gathering systems, interstate pipelines such as Transco and Northwest Pipeline, storage facilities and power generation services. The Momentum Midstream acquisition brings additional gathering and processing capacity in the Haynesville and Permian basins, two of the most active supply regions feeding Gulf Coast markets and LNG export terminals.
The $5.5 billion transaction, reported by 247 Wall St., follows Williams’ $2.82 billion purchase of Momentum assets disclosed earlier this year. Together, the deals deepen the company’s presence at the wellhead, securing supply for a transmission system that connects production areas to demand centers across the eastern United States.
Financial Performance and Market Reaction
Third-quarter results reinforced the growth narrative. Williams reported adjusted earnings per share of $0.54, slightly above the $0.5386 consensus estimate. Revenue reached $3.2 billion, beating expectations by 10.1%, while adjusted EBITDA rose 6% year over year to $2.04 billion, data shows.
The stock rose 2.7% to $73.09 following the release. Shares have climbed 30.1% over the past year, 24.3% year to date and 222.3% over five years as investors price in structural demand growth from AI-driven data centers, according to 247 Wall St.
AI Power Demand Drives Infrastructure Value
Surging electricity consumption from data centers has increased the value of reliable, dispatchable natural gas generation and the pipeline capacity that fuels it. Williams is developing behind-the-meter power projects that supply electricity directly to large customers without using the utility grid. The Socrates project, its first such development, was brought fully online ahead of schedule. The Plato North Power project is on track to enter service by mid-November, officials noted.
CEO Chad Zamarin said in the earnings release that Socrates demonstrates the company’s ability to deliver fast, reliable and scalable solutions for customers facing rapidly growing power demand. The company is actively working to commercialize additional power projects and expects to announce more soon.
Guidance and Long-Term Targets
Williams confirmed it is on track to reach the upper half of its 2026 adjusted EBITDA guidance range of $8.3 billion to $8.5 billion. The company maintains a long-term adjusted EBITDA compound annual growth target of 11% or more through 2030, supported by fee-based revenue from regulated transportation and storage, gathering and processing, and power generation services.
Valuation and Wall Street View
The stock trades at a forward price-to-earnings ratio of about 28, a premium for a pipeline operator that reflects the stability of its fee-based revenue model. The consensus price target of $85.38 stands more than 16% above the current price. Shares trade about 7.4% below their 52-week high of $78.92 and well above the low of $54.53, according to 247 Wall St.
Sources
- Williams Companies
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