WMB - 2Q26 Preview; Thoughts on Potential Momentum Acquisition

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WMB - 2Q26 Preview; Thoughts on Potential Momentum Acquisition

Truist Securities

Why a WMB-Momentum transaction makes sense. The transaction could further build out WMB's presence within the Haynesville and

to downstream LNG markets, following its agreements last October to sell Louisiana upstream assets while also acquiring an interest in

LA LNG and in Driftwood Line 200. Momentum's connections into regional hubs (20 Bcf/d of total connectivity across 91 interconnects),

including Gillis via NG3, would present upside potential to Sequent and have a hand in more of the Gulf Coast LNG inlet gas. NG3 (2.3

bcf/d total capacity) reportedly entered service in the second half of 2025 and would integrate southbound volumes from Williams' LEG

pipeline. Momentum's gathering would supplement WMB's 5.6 bcf/d aggregate inlet gas capacity in the Haynesville and Bossier as of

year-end 2025, in addition to 1.8 bcf/d of capacity on Louisiana Energy Gateway. Additional basin gathering capacity will be brought

online through the Haynesville East expansion in 4Q26 and Haynesville West in 1Q27, each of which we have assumed 250 MMcf/d

of incremental gathering capacity (stated by company as aggregate 700 MMcf/d across both expansions and Marcellus expansion). In

addition, Momentum has previously highlighted that NG3 could be a net-negative carbon pipeline, by capturing CO2 and sequestering it

with third party partner ExxonMobil (XOM, Not Rated) with assets previously acquired through Denbury.

WMB's other Haynesville asset acquisitions. The potential acquisition parallel Williams' prior transaction for private operator Trace

Midstream's assets in the basins in 2022, which at the time had doubled WMB's gathering capacity (1.8 bcf/d to ~4 bcf/d) at a price