Since its creation last December as a portfolio company of private equity firm Basalt, Houston-based Black Bear Transmission has had its eyes on the prize of acquiring natural gas midstream assets that serve utilities and end-users across the Southeast. And it’s just made another one that fits like an absolute glove.
Black Bear Transmission
Black Bear Transmission LLC transports and delivers natural gas from various pipeline receipt points to power generation, industrial and utility customers in the Southeast U.S. The company includes eight regulated natural gas pipelines stretching more than 1,200 with total delivery capacity of more than 1.8 Bcf/d. The pipelines are connected to 12 major long-haul pipelines, ensuring reliable gas supply to customers across Alabama, Arkansas, Louisiana, Mississippi, Missouri, Oklahoma and Tennessee.
But a little history first to understand how quickly Black Bear has sought out prime assets in its targeted region.
The company in December completed its acquisition of Third Coast Midstream’s natural gas transmission business, which included seven pipelines stretching 550 miles with connections to eight major long-haul gas pipelines across La., Ala., Miss., Tenn., and Ark. In April, Black Bear snatched up Ozark Gas Transmission and Ozark Gas Gathering from Enbridge. This acquisition added a 367-mile interstate gas pipeline system that runs from southeastern Okla., through Ark., to southeastern Mo., and more than 330-miles of gathering pipe connecting regional production into the Ozark pipeline.
Black Bear’s midstream assets grew to a total of eight natural gas pipelines extending more than 1,200 miles with delivery capacity of more than 1.8 BCFD, and connections to 12 long-haul pipelines. And this bear wasn’t done yet.
As Third Coast Midstream renewed its focus on core operations along the Gulf Coast, including the company’s offshore infrastructure platform, Black Bear saw another opportunity to contiguously expand its Southeast footprint and grow its pipeline system.
Black Bear Transmission now has announced a second bolt-on acquisition from Third Coast Midstream. The company’s latest deal includes the purchase of six intrastate natural gas pipelines that span 1,400 miles in Ala., La., and Miss., with a total capacity of more than 800 MMCFD. The transaction is expected to close in 2Q 2020.
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