ArcLight Energy Partners Sells East Texas Operating Platform to EnCap Flatrock Midstream and Other Investors
Posted on 09/24/2022
On September 22, 2022, Midcoast Energy, LLC, a subsidiary of ArcLight Energy Partners Fund VI, L.P., 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 US$ 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.
Advisors
For this transaction, Midcoast was served by Jefferies LLC as exclusive financial advisor and Latham & Watkins LLP as legal advisor.
Keywords: Arclight Capital Partners LLC.