Latest news with #NorthwindMidstream
Yahoo
20-05-2025
- Business
- Yahoo
Five Point Infrastructure exploring $2bn sale of Northwind Midstream
Five Point Infrastructure, the private equity owner of Northwind Midstream, is reportedly considering a sale of the Permian Basin gas infrastructure operator, valuing the company at more than $2bn including debt, reported Reuters, citing sources. The sale process is being managed with the assistance of investment bankers from Piper Sandler. Currently in its initial stages, the outreach to potential buyers has begun, with interest anticipated from both midstream companies and other private equity and infrastructure funds. Despite the ongoing discussions, sources, who requested anonymity due to the private nature of the deliberations, have indicated that there is no certainty that a deal will be finalised and that the final valuation may vary, the report said. Five Point has not provided any comments on the matter. Similarly, there has been no response from Northwind or Piper Sandler regarding requests for comment. Established by Five Point in 2022, Northwind Midstream has since developed a network of pipelines, compressor stations and a treatment facility, primarily located in the northern Delaware Basin in New Mexico. The company specialises in the transportation and processing of acid gas, a type of natural gas with high levels of hydrogen sulphide and carbon dioxide, which must be removed before the gas can be commercially utilised. The potential sale of Northwind Midstream is reflective of a broader trend where private equity firms are looking to divest energy infrastructure assets. These assets have been built up over recent years to support increasing production from US shale fields. For instance, NGP Energy Capital Management successfully sold Outrigger Energy II to Kinder Morgan in February for $640m, and Morgan Stanley Energy Partners is currently seeking a buyer for a majority stake in Brazos Midstream II, with an estimated value of around $2bn. In March 2025, Northwind Midstream announced the completion of a $700m senior secured first lien term loan issuance. The company intends to utilise the proceeds from this term loan to refinance existing debt and enhance its gas gathering, compression, treating, sequestration and processing system in Lea County, New Mexico, US. "Five Point Infrastructure exploring $2bn sale of Northwind Midstream" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
19-05-2025
- Business
- Reuters
Energy investor Five Point targets $2 billion from Northwind pipelines sale, sources say
May 19 (Reuters) - The private equity owner of Northwind Midstream is exploring a potential sale of the Permian Basin gas infrastructure operator, with any deal expected to value the company at around $2 billion including debt, people familiar with the matter said. Five Point Infrastructure is working with investment bankers at Piper Sandler (PIPR.N), opens new tab on the sale effort, which is in its early stages and may attract interest from midstream companies as well as other buyout and infrastructure funds. The people cautioned that there was no guarantee a deal would be struck, and any agreement could come at a different valuation. They also spoke on condition of anonymity to discuss private deliberations. Five Point declined comment. Northwind and Piper Sandler did not respond to requests for comment. Northwind Midstream was formed by Five Point in 2022 and, since then, the company has developed a system of pipelines, compressor stations and a treatment facility in the northern part of the Delaware Basin, predominantly in New Mexico. The company focuses on moving and treating so-called acid gas, a form of natural gas which is high in hydrogen sulfide and carbon dioxide. The chemical compounds need to be removed before the natural gas can be used for commercial purposes. The sale effort involving Northwind is the latest example of private equity owners aiming to offload the energy infrastructure networks which the companies have spent recent years building out to support growing U.S. shale production. Dealmaking activity is supported by publicly-listed pipeline operators wanting to expand their capabilities after spending recent years paying down debt and improving their stock prices. Competition for assets is supplemented by healthy appetite from investment firms, which have raised billions of dollars to buy energy infrastructure, which offers steady returns from the fees levied for moving oil and gas.
