ArcLight Announces $865 Million Acquisition of Strategic Pipeline Interest
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ArcLight Capital Partners has acquired a 25% equity interest in Gulf Coast Express Pipeline LLC for $865 million from Phillips 66. The pipeline will now be jointly owned by Kinder Morgan and ArcLight.
February 03, 2025 | 2:15 pm
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NEUTRAL IMPACT
Phillips 66 sold its 25% equity interest in Gulf Coast Express Pipeline LLC to ArcLight for $865 million.
The sale of the stake in GCX provides Phillips 66 with $865 million, which could be used for other investments or debt reduction. However, the impact on stock price is neutral as it is a strategic divestment.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Kinder Morgan will now jointly own Gulf Coast Express Pipeline LLC with ArcLight after the latter's acquisition of a 25% stake.
The joint ownership with ArcLight could enhance operational synergies and strategic positioning for Kinder Morgan, potentially benefiting its stock price.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70