Arrowhead Gulf Coast Holdings Company Profile

Background

Arrowhead Gulf Coast Holdings, LLC (AGCH) was established in 2016 as a holding company based in Houston, Texas. The company focused on acquiring and developing critical midstream assets, including pipelines and terminals, to serve the Louisiana refinery market and regional production. AGCH's mission was to enhance the efficiency and reliability of crude oil and condensate transportation in the Gulf Coast region, thereby supporting the energy infrastructure essential to the area's economic vitality.

Key Strategic Focus

AGCH's strategic objectives centered on the acquisition and development of midstream assets that are integral to the crude oil supply chain in southern Louisiana. The company's portfolio included approximately 300 miles of crude and condensate pipelines and terminal assets. Notably, the Bay Marchand-to-Ostrica-to-Alliance (BOA) and Clovelly-to-Meraux (CAM) pipelines played a crucial role in supplying crude oil to major refineries such as Valero Meraux and PBF Chalmette. Other significant assets encompassed the Golden Cocodrie, Atchafalaya, Eugene Island, Erath Tank Farm, Burns dock, Burns terminal, and Sabine facilities. These assets positioned AGCH as a key player in the midstream sector, facilitating efficient transportation and storage solutions for the region's energy producers and refiners.

Financials and Funding

In July 2022, Harvest Midstream, a privately held midstream service provider based in Houston, Texas, acquired the remaining 37.5% interest in AGCH from a fund managed by BlackRock Real Assets, bringing AGCH under full ownership of Harvest. Prior to this transaction, Harvest owned 62.5% of AGCH. The acquisition underscored Harvest's commitment to expanding its operations in southern Louisiana and enhancing its service offerings in the region.

Leadership Team

As of the acquisition in July 2022, AGCH's leadership was integrated into Harvest Midstream's executive team. Harvest's CEO, Jason Rebrook, emphasized the company's longstanding commitment to the Louisiana Gulf Coast and its dedication to providing best-in-class service to customers as the region continues to grow.

Competitor Profile

Market Insights and Dynamics

The midstream sector in the Gulf Coast region is characterized by a network of pipelines and terminals that are essential for transporting crude oil and condensate to refineries. The region's strategic location and extensive infrastructure make it a hub for energy production and refining, contributing significantly to the national energy supply.

Competitor Analysis

Key competitors in the Gulf Coast midstream sector include:

Enterprise Products Partners L.P.: A leading provider of midstream energy services, including transportation, storage, and processing of natural gas, NGLs, crude oil, and petrochemicals.

Plains All American Pipeline, L.P.: Specializes in the transportation, storage, and marketing of crude oil and NGLs, with extensive operations in the Gulf Coast region.

Energy Transfer LP: Operates a diversified portfolio of energy assets, including pipelines and terminals, providing midstream services across the United States.

These competitors have established infrastructures and extensive networks that contribute to the competitive landscape of the midstream sector in the Gulf Coast region.

Strategic Collaborations and Partnerships

Prior to its full acquisition by Harvest Midstream, AGCH was partially owned by a fund managed by BlackRock Real Assets, which held a 37.5% stake. This partnership facilitated the development and operation of AGCH's midstream assets, contributing to the company's growth and operational capabilities.

Operational Insights

AGCH's assets, including the BOA and CAM pipelines, were integral to the crude supply of major refineries in southern Louisiana. The company's strategic positioning and asset portfolio provided a competitive advantage in the midstream sector, enabling efficient transportation and storage solutions for regional energy producers and refiners.

Strategic Opportunities and Future Directions

With the full acquisition by Harvest Midstream, AGCH's assets are poised to benefit from Harvest's extensive experience and resources in the midstream sector. Harvest's commitment to the Louisiana Gulf Coast region and its focus on providing best-in-class service position the company to capitalize on growth opportunities and enhance its market presence in the region.