HOUSTON--(BUSINESS WIRE)--Black Bear Transmission LLC, (“Black Bear”) today announced that it has completed the divestiture of all the assets owned by Ozark Gas Gathering, L.L.C. (“OGG”) to an undisclosed buyer.
Black Bear is a portfolio company of the second Basalt fund (“Basalt”). This divestiture follows two bolt-on acquisitions completed by Black Bear this year – the purchase of the Ozark Gas Transmission and Gathering systems from Enbridge in April 2020 and the NGT Assets from Third Coast Midstream in September 2020.
OGG owns and operates a fee-based, natural gas gathering system that connects regional production in Oklahoma and Arkansas to Ozark Gas Transmission and other long-haul pipelines. The asset sale consists of more than 220 active metered locations, approximately 330-miles of natural gas pipelines, and 19 active compressor units totaling 11,400 horsepower.
“We are very pleased with this transaction,” said Rene Casadaban, Chief Executive Officer of Black Bear. “The sale of these assets allows us to focus on our core business, which is to serve long-term, demand-driven end-user markets. We look forward to strengthening our relationships with the Ozark Gas Transmission customers while continuing to provide safe and reliable service.”
“A key part of our strategy when we purchased the Ozark assets from Enbridge was to divest the gathering system and focus on the transmission line,” added Scott Langston, Senior Vice President and Chief Commercial Officer for Black Bear. “We’re proud to execute on this goal after only six months of ownership, and we appreciate all of the hard work from everybody involved to complete this sale.”
The terms of the transaction are not being disclosed.
Morgan, Lewis & Bockius LLP served as Black Bear’s legal advisor.
About Black Bear
Black Bear Transmission LLC transports and delivers natural gas from various pipeline receipt points to utility, power generation and industrial customers in the Southeast United States. Following this sale, Black Bear owns and operates 13 regulated natural gas pipelines stretching more than 2,300 miles, with total delivery capacity of more than 2.6 Bcf per day. The pipelines are connected to 18 major long-haul pipelines, ensuring reliable gas supply to customers across Alabama, Arkansas, Louisiana, Mississippi, Missouri, Oklahoma and Tennessee. Black Bear Transmission LLC is headquartered in Houston, TX.
For more information, please visit www.blackbearllc.com
Basalt I and Basalt II are two of the flagship Basalt Infrastructure Partners funds. They are infrastructure equity investment funds focusing on investments in utilities, power, transport, and communications infrastructure in North America and Europe. Other investments by the Basalt funds in North America include the Upper Peninsula Power Company, Texas Microgrid, DB Energy Assets, Detroit Thermal, Hyperion and Helios Power. Black Bear Transmission is a Basalt II portfolio company.
For more information, please visit www.basaltinfra.com.