September 25, 2020

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Black Bear Transmission Closes Bolt-on Acquisition of Natural Gas Transmission Assets from Third Coast Midstream

HOUSTON–(BUSINESS WIRE)–Black Bear Transmission LLC (“Black Bear”) today announced that it has completed the previously announced bolt-on acquisition of a portfolio of Natural Gas Transmission assets (the “NGT Assets”) from a subsidiary of Third Coast Midstream LLC (“Third Coast Midstream”).

Black Bear is a portfolio company of the second Basalt fund (“Basalt”). This transaction marks Black Bear’s second bolt-on acquisition, having acquired the Ozark system from Enbridge in April 2020.

The NGT 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 per day and benefits from significant interconnectivity to major long-haul pipelines, providing reliable, cost-advantaged gas supply to utilities and other key end-users.

“We are very pleased to finalize this purchase of additional pipelines from Third Coast Midstream,” said Rene Casadaban, Chief Executive Officer of Black Bear Transmission. “These assets are a perfect fit with Black Bear because they strengthen our footprint of high-quality, demand-driven gas pipelines that are well-positioned to capture increasing natural gas demand in the Southeast United States. A team of seasoned operations and business development personnel will be coming to Black Bear with the assets, allowing us to maintain our focus on providing safe and reliable service to our customers. We appreciate all the work on the part of Third Coast Midstream for making this a successful transaction, and we look forward to completing a smooth transition.”

“We are excited about the follow-on sale of the NGT Assets to Black Bear,” stated Matt Rowland, President & Chief Executive Officer of Third Coast Midstream. “This transaction represents one of the final pieces of Third Coast’s strategic repositioning to focus on its core offshore and Gulf Coast asset base. In addition, Third Coast has executed a commercial services agreement with Black Bear, which will ensure a smooth transition and consistent commercial operations for Black Bear’s customers.”

Barclays served as exclusive financial advisor to Basalt, and Vinson & Elkins served as Basalt’s legal advisor. BMO Capital Markets served as exclusive financial advisor to Third Coast Midstream, while Orrick served as Third Coast Midstream’s legal advisor.

About Black Bear

Black Bear Transmission LLC transports and delivers natural gas from various pipeline receipt points to utility, power generation and industrial customers in the Southeast United States. Black Bear owns and operates 14 regulated natural gas pipelines stretching more than 2,600 miles, with total delivery capacity of more than 2.6 Bcf per day. The pipelines are connected to 18 major long-haul pipelines, ensuring reliable gas supply to customers across Alabama, Arkansas, Louisiana, Mississippi, Missouri, Oklahoma and Tennessee. Black Bear Transmission LLC is headquartered in Houston, TX.

For more information, please visit www.blackbearllc.com

About Basalt

Basalt I and Basalt II are two of the flagship Basalt Infrastructure Partners funds. They are infrastructure equity investment funds focusing on investments in utilities, power, transport, and communications infrastructure in North America and Europe. Other investments by the Basalt funds in North America include the Upper Peninsula Power Company, Texas Microgrid, DB Energy Assets, Detroit Thermal, Hyperion and Helios Power. Black Bear Transmission is a Basalt II portfolio company.

For more information, please visit www.basaltinfra.com.

About Third Coast Midstream

Headquartered in Houston, Texas, Third Coast Midstream, LLC is a full-service midstream company with assets that provide critical midstream infrastructure linking producers of natural gas, crude oil, NGLs, and condensate to end-use markets. Third Coast Midstream’s assets are strategically located in the prolific Deepwater Gulf of Mexico. Third Coast Midstream currently owns or has an ownership interest in approximately 3,000 miles of interstate and intrastate pipelines, as well as ownership in gas processing plants, fractionation facilities, an offshore semi-submersible floating production system with nameplate processing capacity of 90 MBbl/d of crude oil and 220 MMcf/d of natural gas, and a terminal site with approximately 3.0 MMBbls of storage capacity.

Contacts

For media inquiries:
Black Bear Transmission

Rene Casadaban

Media@blackbearllc.com

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