ArcLight Capital Weighs Sale of Republic Midstream
(Bloomberg) -- ArcLight Capital Partners LLC is considering a sale of Republic Midstream LLC, an oil pipeline operator in the Eagle Ford shale of South Texas that could fetch about $600 million, according to people familiar with the matter.
The Boston-based private equity firm is working with an adviser on the potential sale, said the people, who asked not to be named because the discussions aren’t public. No decision has been made and ArcLight may opt to keep the company, they said.
A representative for ArcLight declined to comment. A representative for Republic Midstream didn’t immediately respond to a request for comment.
Republic Midstream operates a 28-mile oil gathering pipeline that feeds Kinder Morgan Inc.’s Dewitt Station, according to its website. It also has a crude storage facility with a capacity of 300,000 barrels.
ArcLight formed Republic Midstream in 2014 with a commitment to invest up to $400 million to build oil-handling infrastructure serving Penn Virginia Corp.’s acreage in the Eagle Ford, according to a press release at the time.
Founded in 2001, ArcLight has invested about $21 billion in energy pipeline, exploration and power companies, according to its website.
In September, ArcLight offered to buy the rest of American Midstream Partners LP that it doesn’t already own for about $234 million. It lowered that bid in January, generating a backlash from investors.
ArcLight agreed in November to buy full control of energy terminal operator TransMontaigne Partners LP for about $536 million.
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