Midcoast Energy, LLC, a subsidiary of ArcLight Energy Partners Fund VI, L.P., has closed on the sale of its East Texas operating platform to Momentum Midstream LLC, a subsidiary of EnCap Flatrock Midstream and other financial partners.
The East Texas Business consists of an East Texas Haynesville-to-Gulf Coast midstream business providing in-basin gathering, processing and treating, as well as long-haul transportation to rapidly growing end-markets, including the U.S. Gulf Coast.
During its ownership of Midcoast, ArcLight invested over $300 million in the expansion of the East Texas Business, including through the development and commercialization of the CJ Express expansion project, providing 1 Bcf/d of natural gas transportation services to the U.S. Gulf Coast LNG markets. The East Texas Business anchored ArcLight’s 2018 acquisition of Midcoast, and the segment realized throughput growth of over 75% during its ownership.
“The East Texas Business plays an important role providing domestic and international markets access to clean, affordable, and reliable energy resources produced in the Haynesville. ArcLight is excited to see it continue to grow under the ownership of the experienced team at Momentum Midstream,” said Dan Revers, Founder and Managing Partner of ArcLight.
For this transaction, Midcoast was served by Jefferies LLC as exclusive financial advisor and Latham & Watkins LLP as legal advisor.
ArcLight is a leading private equity firm focused on energy, infrastructure and energy transition with a successful long-term track record. Founded in 2001, the firm helped pioneer an asset-based approach to investing across the power, renewables, infrastructure and broader energy value chain. Since then, ArcLight has invested approximately $27 billion in 122 transactions, including over $11 billion of equity capital into the electrification segment, which includes power, transmission, renewable infrastructure and energy transition investments. Through its large infrastructure portfolio, ArcLight invests in companies that provide decarbonizing energy solutions with a strong focus on ESG, including providing access to reliable and affordable energy resources through safe and environmentally responsible operations. Based in Boston, the firm’s investment team employs a value-added investment approach that benefits from its dedicated in-house technical, operational, and commercial specialists and partners, as well as the firm’s approximately 1,800-person asset management affiliate. More information about ArcLight can be found at www.arclight.com.
