ArcLight Capital Partners LLC recently entered into an agreement with an undisclosed seller for its affiliate Saber Midstream LLC to acquire a natural gas gathering system in the Haynesville shale basin of Louisiana and Texas.
In a release announcing the acquisition on March 23, ArcLight said the management team of Cutlass Energy Partners LLC, a midstream infrastructure company backed by the Boston-based private equity firm, will manage Saber Midstream and the operations of the acquired gas gathering system.
“Cutlass is excited to establish itself as a natural gas infrastructure player in the Haynesville via its partnership with ArcLight in Saber Midstream,” Cutlass CEO Don Kirkendall commented in the release.
Cutlass Energy Partners is a Houston-based midstream energy company founded in 2019 by Kirkendall, David Lipp and Greg Beilstein. The Cutlass team has had a long association with ArcLight, including various gathering ventures in the Permian Basin, Eagle Ford, Marcellus Shale and Utica trend, and a gas transmission pipeline connecting Louisiana and Arkansas.
The Haynesville system in Louisiana’s Caddo Parish and Harrison County, Texas, has a nominal capacity of up to 1.2 Bcf/d. It is located in an area of the Haynesville shale play with increasing rig activity and growing production plus access to supply large markets in Louisiana and Texas, including growing LNG export markets, according to the release.
“Our proximity to multiple markets including the increasingly significant Gulf Coast LNG market will allow us to pursue a strategy of expansion to offer shippers attractive natural gas midstream solutions,” Kirkendall continued of the acquisition. “We look forward to participating in the growth of this critical component bridging to the future of U.S. clean energy infrastructure.”
The transaction, expected to close in the coming weeks, will be supported by a long-term gathering agreement that includes an acreage dedication and minimum volume commitment from an upstream affiliate of the seller.
“ArcLight is pleased to have the opportunity to acquire modern infrastructure to assist in the development of clean natural gas to help in the nation’s energy transition,” ArcLight Managing Partner Josef Alves commented in the firm’s release.
Constructed between 2020 and 2022, the Haynesville system was designed with an ESG focus for efficient operations and to minimize emissions, including solar- and battery-powered meters, the release noted.
“We strongly believe that responsible natural gas production will be central to providing energy security for the country and the world as we transition toward a clean energy future,” Alves added.
Founded in 2001, ArcLight is one of North America’s leading energy infrastructure firms, helping pioneer an asset-based approach to investing in the energy sector. The firm has invested over $25 billion in 117 transactions since inception.
King & Spalding LLP, led by Chris Delphin, Tyler Brown and Austin Paalz, served as legal counsel on the Haynesville transaction.
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