Williams (WMB): Reportedly Looking for Some "Momentum"

Research evidence excerpt

Williams (WMB): Reportedly Looking for Some "Momentum"

FICC Research

Credit Research

29 June 2026

Midstream

Williams (WMB): Reportedly

Looking for Some "Momentum"

If an acquisition materialized, we think Momentum would be Harry Mateer

strategic for WMB in terms of geography and asset mix, but +1 212 412 7903

harry.mateer@barclays.com

with volume sensitivity that could be dilutive to WMB's BCI, US

existing contract profile. 100% senior debt financing strikes Irene Zhang

us as unlikely given the potential for mid-4x leverage. +1 212 526 6051 yiran.zhang@barclays.com

BCI, US

Neither WMB nor Momentum's owners have commented on the Bloomberg report ("Williams

Said to Near $5.5 Billion Deal for Momentum Midstream", June 28, 2026). Although we would not

view a $5.5bn acquisition as massive for a company of WMB's scale, the timing could be

meaningful as the company works through a large FCF deficit while estimated leverage in 2026

is already near the high end of the company's targeted range.

The reported price seems high to us on the basis of available information about Momentum's

run-rate EBITDA generation and its contract mix (fairly heavy on acreage dedication), but we

acknowledge that there could be nuances given the company's private status.

Barclays Rating: Underweight

Moody's/S&P/Fitch Ratings: Baa2 (pos)/BBB+ (st)/BBB (pos)

Bloomberg Reports About Possible Acquisition

Discussions

On June 28, 2026, Bloomberg reported ("Williams Said to Near $5.5 Billion Deal for Momentum

Midstream") that WMB "is in advanced talks to acquire natural gas pipeline operator Momentum

Midstream for about $5.5 billion," and that "a deal could be announced in around a week's

time."

Momentum is a PE-backed midstream credit, but with a term loan B (TLB) issued out of M6

Midstream.