Ares funds acquire Meade Pipeline for $1.1 billion

NEW YORK - Ares Management Corporation (NYSE:ARES), a $53.27 billion market cap alternative investment manager with robust financial health according to InvestingPro analysis, announced Monday that funds led by its Infrastructure Opportunities strategy have acquired Meade Pipeline Co LLC from affiliates of XPLR Infrastructure, LP for approximately $1.1 billion in cash.

Meade owns about 40% of the Central Penn Line (CPL), a 180-mile FERC-regulated pipeline that transports natural gas from the Marcellus and Utica Shale in Northeast Pennsylvania to demand centers across the Northeast, Mid-Atlantic and Southeast regions. The pipeline connects with Williams Companies’ Transcontinental Gas Pipe Line (Transco), which is a joint owner and serves as the operator of CPL through long-term lease agreements. Based on InvestingPro’s Fair Value analysis, Ares Management appears to be trading above its Fair Value, reflecting investor confidence in its infrastructure investments.

The CPL began operations in 2018 and, with its Leidy South expansion completed in 2022, has approximately 2.3 bcf/day of gross capacity.

"Driven by electrification, industrial activity and increasing LNG exports, we are witnessing tremendous growth in power and natural gas demand," said Steve Porto, Partner in the Ares Infrastructure Opportunities strategy, according to the press release.

Morgan Stanley & Co. LLC and Wells Fargo jointly served as financial advisors to the Ares funds for the transaction, while Sidley Austin LLP provided legal counsel. J.P. Morgan acted as financial advisor to XPLR, with Hogan Lovells serving as legal counsel.

As of June 30, 2025, Ares Management Corporation reported over $572 billion of assets under management across its global platform, with operations spanning North America, South America, Europe, Asia Pacific and the Middle East. The company has demonstrated strong growth with revenue increasing by nearly 50% over the last twelve months. For deeper insights into Ares Management’s financial performance and growth prospects, including 12 additional ProTips and comprehensive valuation metrics, visit InvestingPro.

In other recent news, Ares Management Corporation reported its second-quarter 2025 earnings, revealing a mixed performance. While the company posted an earnings per share (EPS) of $1.03, which was below the forecasted $1.09, its revenue reached $1.35 billion, significantly surpassing the anticipated $1.04 billion. This revenue figure marked a notable 29.81% surprise. Additionally, CFRA raised its price target for Ares Management to $215 from $205, maintaining a Buy rating due to the company’s higher growth rate compared to its peers. Meanwhile, TD Cowen reiterated its Buy rating and maintained a price target of $205. In leadership changes, Ares Management appointed Anup Agarwal as Partner and Chief Investment Officer of Ares Insurance Solutions. Furthermore, Ares launched the Ares Core Infrastructure Fund (AUT) in Australia, providing retail investors access to private infrastructure investments. These developments highlight the company’s ongoing strategic initiatives and growth trajectory.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.