"Epoint Zero" Acquisition completed "Traverse Midstream Partners" With a value of $2.25 billion

ABU DHABI, 14 JULY / WAM / ePointZero, the global platform focused on investing in specialized infrastructure assets for the energy sector, and a subsidiary of the 2PointZero Group, today announced the completion of the acquisition of Traverse Midstream Partners, LLC, one of the investment portfolio companies of The Energy and Minerals Group (EMG), which specializes in direct investment in the natural resources sector, in exchange for… $2.25 billion in an all-cash deal.

Under this deal, EPoint Zero will acquire non-operating minority interests in two of the most important natural gas transportation infrastructure assets in the United States, including a 35% interest in the Rover Pipeline, and a 25% interest in the Ohio River System (ORS) dry natural gas gathering system, both of which are managed by Energy Transfer, one of the largest and oldest companies specialized in operating energy infrastructure assets in the United States. United.

This deal represents an important strategic milestone in EPoint Zero’s journey, as it is its first acquisition in the natural gas infrastructure sector in the United States. It also reinforces its strategy to build a diversified global investment portfolio that includes high-quality assets in the energy sector that are distinguished by their ability to achieve stable and sustainable cash flows, supported by long-term contracts.

The deal also represents a qualitative presence in one of the most important natural gas markets in the world, which enhances EPoint Zero’s ability to benefit from the growing demand for reliable, low-emission energy sources, and allows it to deploy its investments on a large scale in high-quality global infrastructure assets for the energy sector.

The deal also reflects the company’s direction towards expanding its investments in the field of vital infrastructure, in light of the increasing importance of energy security at the global level.

On this occasion, His Highness Sheikh Zayed bin Hamdan bin Zayed Al Nahyan, Chairman of the Board of Directors of 2Point Zero, said: “The acquisition of Traverse Midstream Partners through 2Point Zero reflects our commitment to enhancing our investments in critical infrastructure, which constitutes a fundamental pillar of global economic growth. The energy infrastructure in the United States provides promising investment opportunities, supported by high-quality assets and distinguished strategic locations. We view this step as the beginning of building a long-term presence.” In this vital market, which enhances our ability to deploy capital, build distinguished partnerships, and benefit from investment opportunities to support the growing global demand for energy resources.”

Mohamed Hisham, CEO of EPoint Zero, said: “The acquisition represents a strategic milestone in the journey of EPoint Zero, and embodies our commitment to expanding our investments in critical infrastructure for the energy sector. By acquiring an influential stake in one of the most prominent natural gas transportation networks in North America, we are not only investing in assets that provide stable, long-term returns, but in a strategic system that has a reliable ability to meet the growing demand for natural gas in key markets. This deal constitutes an important starting point for strengthening our presence in one of the most vital natural gas markets. In the world, and provides us with a strong platform to continue our strategic expansion in North America, and in light of the growing importance of energy security for governments and companies around the world, this step reflects a thoughtful investment approach that focuses on building an investment portfolio capable of achieving sustainable value in the long term.

John Raymond, Founder and Executive Chairman of The Energy & Minerals Group (EMG), said: “Traverse represents an example of high-quality infrastructure assets that we seek to build and grow through thoughtful, long-term investments,” noting that the company has succeeded during our ownership in consolidating its position within two of the most important natural gas transportation systems in North America, based on strong operational foundations and growing demand for its services.

The assets included in the deal are located within the Appalachian Basin, the largest natural gas producing region in North America, and one of the most important supply regions in the world.

The region has low-cost reserves, ensuring continued competitive production across various commodity price cycles, and supporting high levels of utilization of associated infrastructure.

These assets provide a strategic network between production areas and major demand centers, ensuring efficient transportation of natural gas to various American markets, including liquefied natural gas export facilities, electricity generation networks, and industrial centers. These assets are based on long-term supply contracts that ensure stable revenues and enhance their ability to provide reliable, low-cost supplies of natural gas to end markets throughout the United States.

It is noteworthy that JP Morgan Securities LLC assumed the role of financial advisor to EPoint Zero. Santander US Capital Markets LLC led the committed financing arrangements for ePoint Zero, while Mizuho Corporation co-provided committed financing for ePoint Zero.

Akin Gump Strauss Hauer & Feld LLP provided legal services and advice, while Alvarez & Marsal provided financial and tax advice to EPoint Zero.

Evercore and Greenhill & Co., a subsidiary of Mizuho, ​​provided financial advisory services to Traverse, while Gibson, Dunn & Crutcher LLP, Weil, and Gotshal & Manges LLP provided legal advice to Traverse.

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