A Big Cha-Ching in Pipeline Land

A Big Cha-Ching in Pipeline Land

Boston-based private equity firm ArcLight may have just scored the investment deal of a lifetime. Reese Energy Consulting today is following the latest news from Houston-based Kinder Morgan and equity partner Brookfield Infrastructure Partners, which now have sold a 25% joint interest in Natural Gas Pipeline Company of America for $830 million. The enterprise value of that minority interest, however, is more in the neighborhood of $5.2 billion. NGPL not only ranks as the largest natural gas pipeline to serve high-demand Chicago-area markets, it’s also one of the largest in the nation at more than 9,100 miles. The system provides customer access to all major gas supply basins, interconnects with numerous intrastate and interstate systems, and offers 288 BCF of storage. Upon closing next month, KM and Brookfield each will retain a $37.5% interest in NGPL, and Kinder Morgan will continue to operate the pipeline. Boston-based ArcLight Capital Partners manages energy investments focused on midstream, power, and production infrastructure.

 

Arclight Capital

Founded in 2001, ArcLight helped pioneer an asset-based private equity approach to investing in the dynamic energy sector. They have invested approximately $23 billion in 110 transactions since inception, generating strong realized returns for their limited partners from 69 exits across diverse market cycles.

www.arclight.com

What do you think? Learn more about Reese Energy Consulting and our wealth of natural gas services and expertise at www.ReeseEnergyConsulting.com.

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Cue the (Consolidation) Queue

Cue the (Consolidation) Queue

With the ink barely dry on news that ConocoPhillips and Concho resources will marry in an all-stock deal valued at $9.7 billion, two more shale producers are in line to exchange vows. Reese Energy Consulting today is following reports that Texas-based Pioneer Natural Resources and Parsley Energy may soon tie the knot in another multi-billion-dollar transfer of ownership in the Permian. The coupling would create a $10 billion operator with combined production of more than 550,000 BPD. Dallas-based Pioneer is currently the largest acreage holder in the Cline Shale, part of the Permian’s Spraberry Trend in the Midland sub-basin, with more than 680,000 highly contiguous net acres. Following the sale last year of assets in the Eagle Ford and South Texas, Pioneer has put all its chips “on the best part” of the Midland. Permian-focused Parsley, whose CEO ranks as the youngest in the industry at age 36 and who previously worked for Pioneer, operates in both the Midland and Delaware. With a market value of about $4 billion, Parsley carries more than $3 billion in debt.

 

Pioneer Natural Resources

Pioneer Natural Resources Company is a company engaged in hydrocarbon exploration in the Cline Shale, which is part of the Spraberry Trend of the Permian Basin, where the company is the largest acreage holder. The company is organized in Delaware and headquartered in Irving, Texas.

www.pxd.com

​What do you think?

Learn more about REC and our range of upstream, midstream, and downstream services at www.ReeseEnergyConsulting.com.

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Opportunities to the Max

Opportunities to the Max

Houston-based Max Midstream has every intention to transform the Port of Calhoun into a major crude oil export center. With $1 billion worth of plans in motion, Max recently has acquired the Seahawk Pipeline and Terminal from private equity firm Oaktree Capital with a big, bold idea to offer shippers a more economical, less congested alternative to export sites at Houston/Galveston and Corpus Christi. The newly acquired pipeline connects the Kinder Morgan Crude and Condensate Interconnect in Edna, Texas, where Max also operates a crude oil terminal, to the Seahawk Terminal. Following construction of a new pipeline and added interconnects, Seahawk will flow up to 20 million barrels of Permian and Eagle Ford crude each month to a completely revitalized terminal system that includes its Edna site by 2023. Storage will increase to 9 million Bbls at Edna and 6 million Bbls at Seahawk. Max also is investing $360 million to widen and deepen the Port to accommodate Aframax and Suezmax ships. Phase 1 of the project is slated for completion in November.

Max Midstream

Max Midstream bridges the gap between upstream and downstream with strategic partnerships in the global refining sector. From the wellhead to Gulf, they deliver consistent quality crude oil quickly and efficiently, saving both time and money. Their high-capacity network of pipelines, storage and terminal facilities offer a seamless, one-stop solution for premium midstream operations.

maxmidstream.com

What do you think?

Learn more about Reese Energy Consulting and our range of oil and gas midstream services at www.ReeseEnergyConsulting.com.

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