ARM Energy Holdings LLC on April 4 acquired Monument Pipeline LP, a Houston-based natural gas pipeline, from affiliates of NextEra Energy Partners LP for $203 million.

Monument is a natural gas transportation system with approximately 156 miles of pipeline originating at the Katy Hub, with connections to the Houston Ship Channel, La Porte and League City market areas. The pipeline also services several residential city gates in high-growth areas of the Greater Houston metroplex.

Through Monument’s extensive existing footprint and growth potential, ARM will expand its marketing reach to a diverse group of additional end-users, according to an ARM Energy company release.

“ARM has worked throughout its history to connect energy suppliers to demand centers and provide outstanding service and excellent results for our clients,” ARM CEO Zach Lee commented in the release.

“Monument is a natural expansion of this mission,” Lee continued, “with strategic capabilities that enable our combined team to deliver enhanced services to meet our customers’ rising energy demand needs.”

Monument will be operated by affiliates of ARM, an infrastructure and energy marketing services firm headquartered in Houston with additional offices throughout North America including in Calgary, Denver, Los Angeles and Nashville.

Meanwhile, proceeds from the sale of the Monument Pipeline, part of NextEra Energy Partners' Texas pipelines portfolio, will be used to boost the Juno Beach, Florida-based company's renewable energy portfolio.

“With the sale of this pipeline asset, at an accretive EBITDA multiple, we expect to redeploy the transaction proceeds to acquire higher-yielding renewable assets,” NextEra Energy Partners EO John Ketchum commented in a separate release. 

“This transaction demonstrates our ability to execute on our long-term growth plans as we continue to position NextEra Energy Partners to take advantage of the clean energy transformation and continue to offer a best-in-class investor value proposition with growth prospects that remain as strong as ever,” Ketchum added.

NextEra Energy Partners owns interests in geographically diverse wind, solar and energy storage projects in the U.S. as well as natural gas infrastructure assets in Texas and Pennsylvania.

Greenhill & Co. was exclusive financial adviser, and Vinson & Elkins LLP and Eversheds Sutherland (US) LLP were legal advisers to ARM Energy for the Monument Pipeline transaction.

Comments