Third Coast Midstream LLC is unloading a portfolio of natural gas transmission assets through a sale to Black Bear Transmission, a Houston-based portfolio company of Basalt Infrastructure Partners LLP.
The terms of the transaction are not being disclosed. According to a Black Bear release on June 29, the assets are a natural extension to the Southeast U.S. natural gas transmission business that Basalt acquired from Third Coast Midstream in 2019 that resulted in its formation.
“We are pleased and excited about this follow-on sale of natural gas transmission assets to Black Bear,” Matt Rowland, CEO of Third Coast Midstream, said in a statement. “We look forward to another successful transition with the Black Bear team following the sale of these assets, as Third Coast Midstream takes another step in its strategic repositioning to focus on its core Gulf of Mexico infrastructure platform."
The portfolio of natural gas transmission assets include six intrastate natural gas pipelines spanning approximately 1,400 miles in Alabama, Louisiana and Mississippi. The system has total capacity of more than 800 MMcf/d.
“This investment expands our asset base of high-quality, demand-driven natural gas pipelines in the Southeastern United States,” Rene Casadaban, CEO of Black Bear Transmission, said in a statement. “The NGT assets are highly complementary to our existing Black Bear footprint and are strategically positioned to capture continued natural gas demand growth in the region.”
Black Bear currently has eight regulated natural gas pipelines stretching more than 1,200 miles, with total delivery capacity of more than 1.8 Bcf/d. The pipelines are connected to 12 major long-haul pipelines, supplying gas to customers across Alabama, Arkansas, Louisiana, Mississippi, Missouri, Oklahoma and Tennessee.
The transaction is expected to close in the second half of 2020, subject to customary regulatory approvals and closing conditions.
Barclays is exclusive financial adviser to Basalt, and Vinson & Elkins served as Basalt’s legal adviser. BMO Capital Markets is exclusive financial adviser to Third Coast Midstream and Orrick served as its legal adviser.
Recommended Reading
Midstream M&A Adjusts After E&Ps’ Rampant Permian Consolidation
2024-10-18 - Scott Brown, CEO of the Midland Basin’s Canes Midstream, said he believes the Permian Basin still has plenty of runway for growth and development.
Post Oak-backed Quantent Closes Haynesville Deal in North Louisiana
2024-09-09 - Quantent Energy Partners’ initial Haynesville Shale acquisition comes as Post Oak Energy Capital closes an equity commitment for the E&P.
Analyst: Is Jerry Jones Making a Run to Take Comstock Private?
2024-09-20 - After buying more than 13.4 million Comstock shares in August, analysts wonder if Dallas Cowboys owner Jerry Jones might split the tackles and run downhill toward a go-private buyout of the Haynesville Shale gas producer.
Aethon, Murphy Refinance Debt as Fed Slashes Interest Rates
2024-09-20 - The E&Ps expect to issue new notes toward redeeming a combined $1.6 billion of existing debt, while the debt-pricing guide—the Fed funds rate—was cut on Sept. 18 from 5.5% to 5%.
Dividends Declared Sept.16 through Sept. 26
2024-09-27 - Here is a compilation of dividends declared from select upstream, midstream and service and supply companies.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.