ArcLight Capital Partners, LLC entered into a definitive agreement to acquire 16% additional stake in Gulf Coast Express Pipeline LLC from Kinetik Holdings Inc. (NYSE:KNTK) for $540 million on May 9, 2024. The purchase price is comprised of $510 million in upfront cash or approximately 10.4 times 2024 expected EBITDA. and an additional $30 million earn out in cash due upon a final investment decision on a capacity expansion project.

The transaction does not require HSR approval and is expected to close in the next few weeks. As of May 9, 2024, the transaction is expected to close in the second quarter of 2024, subject to customary closing conditions.