ArcLight Acquires Midstream Assets Of Enbridge’s Midcoast Operating LP
Assets include 11,900 miles of natural gas and NGL pipelines, 25 processing plants with more than 2 Bcfd of capacity, and 12 treating plants, a fractionator, and numerous liquid logistics assets, among them rail, truck, pipeline injection, and storage. ArcLight is a private equity firm focused on energy infrastructure investments.
Midcoast will be led by Rob Bond, who will serve as CEO; Tommy Stone, COO; and Mike Moran, chief commercial officer. Bond, Stone, and Moran have worked together for nearly 20 years, most recently as members of the senior leadership team at PennTex Midstream Partners (Houston). ArcLight said it intends to retain Midcoast’s field and corporate workforce. The acquired company will continue to be based in Houston.
“We are very excited to add the Midcoast platform to our portfolio of midstream investments,” said Dan Revers, founder and managing partner of ArcLight. “We believe Midcoast represents a rare opportunity to acquire a large-scale, diversified, midstream business with exciting commercial and growth capital investment opportunities. We are likewise excited to partner with a management team that has demonstrated its ability to deliver successful results and prioritize safe and reliable operations in the midstream segment.”
“Midcoast owns a premier set of midstream assets that provide excellent Gulf Coast connectivity for natural gas and NGLs, bridging wide basis differentials that have arisen between producing basins and coastal demand centers,” added Bond. “We look forward to leading Midcoast as it pursues these and other exciting opportunities.”
(SOURCE: The Weekly Propane Newsletter, August 20, 2018)
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