ArcLight to Acquire Haynesville Gas Gathering System

BOSTON, March 22, 2022 /PRNewswire/ -- ArcLight Capital Partners, LLC ("ArcLight") and Cutlass Energy Partners, LLC ("Cutlass") announced today that their affiliate, Saber Midstream, LLC has entered into an agreement with an undisclosed seller to acquire a natural gas gathering system in the Haynesville basin of Louisiana and Texas. The parties anticipate closing the transaction in the coming weeks, subject to certain conditions and regulatory approval. The transaction will be supported by a long-term gathering agreement that includes an acreage dedication and minimum volume commitment from an upstream affiliate of the seller.

The system is located in Caddo Parish, Louisiana and Harrison County, Texas, in an area of the Haynesville shale play with increasing rig activity and growing production. It is well situated to access transportation to supply large markets in Louisiana and Texas, including growing liquefied natural gas (LNG) export markets.

The system was constructed between 2020 and 2022 and has a nominal capacity of up to 1.2 Bcf per day. It was designed with an ESG focus for efficient operations and to minimize emissions, including solar/battery powered meters.

"ArcLight is pleased to have the opportunity to acquire modern infrastructure to assist in the development of clean natural gas to help in the nation's energy transition," said Josef Alves, Managing Director at ArcLight. "We strongly believe that responsible natural gas production will be central to providing energy security for the country and the world as we transition toward a clean energy future."

Don Kirkendall, CEO of Cutlass added, "Cutlass is excited to establish itself as a natural gas infrastructure player in the Haynesville via its partnership with ArcLight in Saber Midstream. Our proximity to multiple markets including the increasingly significant Gulf Coast LNG market will allow us to pursue a strategy of expansion to offer shippers attractive natural gas midstream solutions. We look forward to participating in the growth of this critical component bridging to the future of U.S. clean energy infrastructure."

About ArcLight

Founded in 2001, ArcLight is one of North America's leading energy infrastructure firms, helping pioneer an asset-based approach to investing in the energy sector. ArcLight has invested over $25 billion in 117 transactions since inception. Based in Boston, the firm's investment team employs a hands-on value creation strategy utilizing its in-house technical, operational, and commercial specialists, as well as the firm's approximately 1,500-person asset management affiliate. ArcLight has a deep track record of investing in businesses and assets that contribute to a decarbonized future, closing its first renewable power deal in 2003 with over $4 billion invested in renewable power transactions since then. ArcLight believes its two decades of power and renewables experience, along with its deep track record across the energy value chain, provide differentiated insights that will help the firm and its partners contribute to a net zero future. More information about ArcLight can be found at https://www.arclight.com/.

About Cutlass

Cutlass Energy Partners, LLC is a Houston based midstream energy company founded in 2019 by Don Kirkendall, David Lipp and Greg Beilstein.  The Cutlass management team has had a long association with ArcLight, including various gathering ventures in the Permian Basin, Eagle Ford, Marcellus Shale and Utica trend, and a gas transmission pipeline connecting Louisiana and Arkansas. The Cutlass team will manage Saber Midstream and the operations of the acquired gas gathering system. More information about Cutlass can be found at https://www.cutlassenergy.com/.

King & Spalding LLP, led by Chris Delphin, Tyler Brown and Austin Paalz served as legal counsel on the transaction.

SOURCE ArcLight Capital Partners