Texas private equity firm EnCap Flatrock Midstream said on Aug. 3 that it sold Momentum Midstream to Oklahoma energy infrastructure company Williams for $3.5 billion in cash and debt and roughly $2 billion of Williams equity.
Willkie Farr & Gallagher provided outside legal counsel to EnCap Flatrock, led by Sarah McLean and Erin Kaufman in Dallas, Eddie Best in Chicago, Jonathan Konoff in New York and Britton Davis in Washington, D.C.
Kirkland & Ellis advised Momentum Midstream, also known as M6, with a team that included John Pitts, Mike Marek and Matt Pacey in Houston and Jess Lepper in New York.
EnCap Flatrock Founder Billy Lemmons said the sale is “one of the most significant private midstream transactions in the U.S.”
Momentum CEO Frank Tsuru said the sale validates the company’s “thesis that demand for U.S. hydrocarbons domestically and abroad will continue to grow.”
“In 2022, we set out with a strategy to build a premier natural gas gathering and transmission system to serve growing demand along the Gulf Coast, and because of the efforts of our incredible team, we’ve done just that,” Tsuru said in a statement.
EnCap Flatrock said Houston-based Momentum Midstream operates a system that includes more than 4,000 miles of gathering and transmission pipelines supported by over 1 million acres delivering natural gas to the Gulf Coast. The company said M6 assets provide about 6 Bcf/d to industrial end-users, power plants, city gates and LNG facilities.
Momentum Midstream’s new generation gas gathering project includes a carbon capture and sequestration program capable of handling up to 1.8 million tons per annum of CO2.
M6 used Barclays and Jefferies as exclusive financial advisors on the deal.