XPLR Infrastructure (XIFR; formerly NextEra Energy Partners) continues to seek buyers for its investment in Meade Pipeline Co., the owner of a piece of one of the most valuable US gas pipelines. XPLR expects to close the sale by 4Q25, management said in its 4Q24 earnings materials.
Meade Pipeline controls a 58.8% interest in the Central Penn Line North and a 29.4% interest in Central Penn Line South on Williams’ (WMB) Transcontinental Gas Pipe Line (Transco). XPLR acquired Meade in 2019 for a total of ~$1.37B. The company in 2023 announced plans to focus on renewables and divest its portfolio of gas pipelines, including the Meade assets.
Transco operates the pipeline as part of the Atlantic Sunrise project, leasing all of Meade’s capacity for a monthly $7.96MM fee over 20 years. The ownership and lease agreement was signed in February 2014, extending the 20-year term to 2034.
Clients can review contract and financial data for Meade Pipeline in the Gas Pipeline Customer Contracts dashboard in Energy Data Studio, shown in the figure. East Daley Analytics‘ Consulting Services can also create custom asset profiles from our leading energy data.
The Atlantic Sunrise facilities generated ~$430MM in revenue and ~$303MM in EBITDA in 2023, according to Form 2 disclosures filed with the Federal Energy Regulatory Commission (FERC). Based on the spending disclosed to FERC, the project was completed at a ~6.6x build multiple.
The largest counterparties backing the project include Cabot Oil & Gas (now Coterra Energy (CTRA)), Chief Oil & Gas (now Expand Energy (EXE)), and Seneca Resources. The shippers all signed 20-year contracts that will expire in October 2033. These producers should prove stable recontacting parties as they look to maintain dry gas production in northeastern Pennsylvania. Current flows through the Central Penn Line indicate that the pipeline is highly utilized.
Due to its unique access to Atlantic Coast markets, EDA appraises the whole of Transco at a 13-15x multiple. It is one of the most profitable gas pipelines in the US, generating net income of over $1B in 2023. Although the Central Penn Line is just one segment of the asset, its location in the premium Northeast market and its connectivity to the broader system enhances the value.
Reach out to EDA’s Consulting Services for a deeper look at Meade Pipeline. Private equity players are likely to pursue a unique opportunity for an equity interest, or it could be an opportunity for Williams to expand ownership of a line already part of its flagship asset. Tickers: CTRA, EXE, WMB, XIFR.
Did You Miss East Daley’s NGL Webinar?
East Daley on April 16 hosted a webinar reviewing the NGL market outlook. In Fueling the NGL Surge: Growth Across Key Basins, Infrastructure, and Midstream Advantage, we covered basin growth and key producers, infrastructure and midstream players, and explored the growing linkage between commodity markets. If you missed it, please sign up to review the webinar.
Data Center Demand Monitor - Available Now!
Introducing Data Center Demand Monitor by East Daley Analytics. This is your go-to source for tracking data center projects and demand. We monitor and visualize nearly 300 US data center projects. Use Data Center Demand Monitor to forecast demand, identify pipeline corridors and track data center projects. — Request your demo now of the Data Center Demand Monitor!
Get the FERC Intrastate Pipeline Data
Introducing East Daley’s latest data file: FERC 549D Intrastate Contract Data. This new offering delivers contract shipper data for intrastate pipelines — scrubbed and ready to use. Use the 549 data to identify which intrastate pipelines have available capacity, understand pipeline rate structures, gain insights into shippers, and spot contract cliffs and opportunities for higher rate renewals. Reach out to East Daley to learn more.
The Daley Note
Subscribe to The Daley Note (TDN) for midstream insights delivered daily to your inbox. The Daley Note covers news, commodity prices, security prices and EDA research likely to affect markets in the short term.