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Latham & Watkins Advises ArcLight in Its Acquisition and Financing of a 16% Interest in the Gulf Coast Express Pipeline

May 10, 2024
A multidisciplinary team advises the energy and infrastructure private equity firm in the transaction.

An affiliate of ArcLight Capital Partners LLC has entered into a definitive agreement to acquire an additional 16% equity interest in the Gulf Coast Express Pipeline (GCX) from Kinetik for a total purchase price of US$540 million. The base purchase price is US$510 million with an additional US$30 million earn-out upon a final investment decision on a capacity expansion project, subject, in each case, to customary adjustments. GCX owns a 450-mile natural gas pipeline connecting the Permian to international markets.

Latham & Watkins LLP represented ArcLight in the transaction with a deal team led by M&A partner Justin T. Stolte and counsel Thomas Verity, with associates John Daywalt, Joseph Kmetz, and Rafael Go. The finance team was led by partner Cameron Lyons, with associates Dominika Kovacicova and Alexan Stulc. Advice was also provided on tax matters by partner Katharine Moir, with associate Seung Hyun Yang; on regulatory matters by partner Patrick Nevins; and on investment funds matters by associates David Moore, Jonathan Trebble-Greening, Benjamin Lea Hoekstra, and Chandler Johnson.