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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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
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