I Squared Capital Acquires Majority Interest in Whistler Pipeline

MIAMI--(BUSINESS WIRE)--I Squared Capital, through its ISQ Global Infrastructure Fund III, has acquired a controlling interest in the Whistler Pipeline, a leading natural gas infrastructure asset, from First Infrastructure Capital, Ridgemont Equity Partners, affiliates of West Texas Gas Inc., affiliates of Stonepeak Partners LP and the WhiteWater management team.

The Whistler Pipeline is a leading core energy infrastructure system connecting the Permian Basin’s growing natural gas supply to LNG, Mexico, and Gulf Coast demand. Whistler will have direct connections into LNG facilities in the Corpus Christi area. Nearly all current capacity is contracted under long-term, fixed-fee minimum volume commitments, primarily with investment grade counterparties.

I Squared Capital sees increasing long-term demand for natural gas across the U.S. Gulf Coast due to the growth in LNG liquefaction capacity being constructed in the region, as well as growing demand from Mexico. The Whistler pipeline offers the rare combination of strong free cash flow, high-quality contracts, and operating rights on highly strategic natural gas infrastructure.

The management team, who retain a significant portion of equity in the business, has an established reputation for growing contracted cash flows through developing and operating greenfield projects and has identified several initiatives to accelerate further growth of the platform. Christer Rundlof, CEO of WhiteWater, said, “I’d like to thank our JV partners, shippers and current investors for their support. Whistler has been a tremendous success providing a much-needed connection between the Permian Basin and gas demand. We are very excited about the partnership with I Squared and look forward to continuing to serve our customers with Whistler and future, related projects.”

Given the long-term demand for LNG infrastructure in this strategic area, I Squared Capital is evaluating additional investments to promote the energy transition and support the security of the global energy supply at a critical time.

About the Whistler Pipeline

Completed in June 2021, the Whistler Pipeline has approximately 2.0 billion cubic feet per day of current capacity that will be expanded to 2.5 billion cubic feet per day by late 2023. The system is comprised of approximately 450 miles of 42-inch diameter pipeline that transports natural gas from the Waha area in the Permian Basin to Agua Dulce, Texas with connections on to Corpus Christi and the coast. The pipeline also has an approximately 85-mile, 36-inch diameter lateral to the Midland Basin.

I Squared Capital was advised by Kirkland & Ellis LLP as legal counsel and by TPH&Co., the energy business of Perella Weinberg Partners, as lead financial advisor, with Goldman Sachs as financial advisor. First Infrastructure Capital, Ridgemont Equity Partners and WhiteWater were advised by Simpson Thacher & Bartlett, LLP as legal counsel and Barclays as financial advisor. First Infrastructure Capital and Ridgemont Equity Partners were also advised by Milbank LLP and Troutman Pepper, respectively, as legal counsel. Stonepeak was advised by Sidley Austin LLP as legal counsel and RBC Capital Markets as financial advisor.

About I Squared Capital

I Squared Capital is an independent global infrastructure investment manager with over $36 billion in assets under management focusing on energy, utilities, digital infrastructure, environmental infrastructure, transport and social infrastructure in North America, Europe, Latin America, and Asia. The firm has offices in Miami, Hong Kong, London, New Delhi, Singapore, Taipei, and Sydney.