Kinetik finalizes sale of equity stake in Gulf Coast Express pipeline

(UI) — Kinetik Holdings Inc. has announced the completion of its previously announced sale and direct transfer of its 16% equity interest in the Gulf Coast Express pipeline to an affiliate of ArcLight Capital Partners LLC for $510 million in upfront cash and an additional $30 million deferred cash payment due upon a final investment decision on a capacity expansion project.

The cash proceeds will be used for general corporate purposes, including funding Kinetik’s acquisition of Durango Permian LLC and capital investment to support its new 15-year low-pressure and high-pressure gas gathering and processing agreement in Eddy County, New Mexico. This investment significantly enhances Kinetik’s position in New Mexico.

The pipeline is jointly owned by Kinder Morgan (34%), DCP Midstream (25%), ArcLight Capital (25%) and Kinetik (16%).

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