Third Coast Midstream completes sale of significant minority interest to global infrastructure investor

NEW YORK and BOSTON and HOUSTON, June 7, 2021 /PRNewswire/ -- Third Coast Midstream, LLC ("Third Coast"), an affiliate of ArcLight Capital Partners, LLC ("ArcLight") announced today that it has sold an approximately 50% interest in its subsidiary, Lighthouse Super Holdings, LLC ("Lighthouse"), to an affiliate of a global infrastructure investment vehicle.  Lighthouse owns Third Coast's existing offshore-focused midstream assets and a 50% interest in King's Quay Infrastructure, LLC ("King's Quay"), which owns a new floating production system to be deployed in the deepwater Gulf of Mexico. 

"We are pleased to have a new partner to support our premier Gulf of Mexico infrastructure platform that provides critical flow assurance services to low cost, low GHG-intensity deepwater production," said Matthew W. Rowland, Third Coast's President and Chief Executive Officer. "This new partnership positions Third Coast to build off our solid, fee-based foundation and execute our disciplined growth agenda. The entire Third Coast team is excited to embark with our new, trusted partner on the continued development and growth of our high quality, independent infrastructure business."

"ArcLight welcomes this new partnership in Third Coast Midstream.  The transaction is a strong validation of the offshore infrastructure strategy that the company has executed over the last several years and enables the integration of King's Quay, one of the most exciting new developments in the deepwater Gulf of Mexico," added Josef Alves, a Managing Director at ArcLight.

The terms of the transaction are not being disclosed.

RBC Capital Markets and Barclays served as financial advisers to ArcLight and Lighthouse, and Kirkland & Ellis LLP served as their legal adviser. BofA Securities, Inc. served as financial adviser to the investor, and Milbank LLP served as its legal adviser.

For media inquiries:
Third Coast Midstream, LLC
Nadine Moustafa
General Counsel
(346) 341-3412
[email protected]

About Lighthouse Super Holdings , LLC

Headquartered in Houston, Texas, Lighthouse Super Holdings, LLC owns Third Coast Midstream's full-service midstream business, and a 50% interest in King's Quay.  Third Coast Midstream's vertically and horizontally integrated assets are strategically located along the Gulf Coast and in the Gulf of Mexico and provide critical midstream infrastructure linking producers of natural gas, crude oil, NGLs, and condensate to end-use markets. Third Coast Midstream currently owns or has an ownership interest in approximately 1,200 miles of interstate and intrastate pipelines, as well as ownership in a gas processing plant and Delta House, an offshore semi-submersible floating production system with processing capacity of up to 100 MBbl/d of crude oil and 240 MMcf/d of natural gas. King's Quay owns an under-construction semi-submersible FPS that will be located in the offshore Gulf of Mexico Green Canyon zone with a nameplate capacity of 80 mbbl/d (oil) and 100 mmcf/d (gas).  The FPS is scheduled to come online in the first half of 2022.

About ArcLight Capital Partners, LLC

ArcLight is one of the leading energy infrastructure firms. Founded in 2001, the firm helped pioneer an asset-based approach to investing in the energy sector. ArcLight has invested over $25 billion in 112 transactions since inception. Based in Boston, the firm's investment team employs a hands-on value creation strategy that utilizes its in-house technical, operational, and commercial specialists as well as the firm's 1,500-person asset management affiliate. More information about ArcLight, and a complete list of ArcLight's portfolio companies, can be found at www.arclight.com.  

SOURCE Third Coast Midstream, LLC

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