Five Point Infrastructure Partners is reportedly evaluating a potential sale of its portfolio company Northwind Midstream, with a transaction that could value the Permian Basin-focused gas infrastructure operator in excess of $2bn, including debt, according to people familiar with the matter.
The energy-focused private equity firm has engaged Piper Sandler to advise on the process, which remains at a preliminary stage. Early outreach has been initiated with a range of strategic and financial buyers, including midstream operators and infrastructure-focused investment platforms.
While no deal is assured, and valuation outcomes may vary, the prospective sale underscores a broader trend of private equity sponsors monetising midstream infrastructure assets amid sustained interest from both corporate consolidators and infrastructure funds seeking yield-backed, real asset exposure.
Formed by Five Point in 2022, Northwind Midstream has developed a suite of infrastructure assets in the northern Delaware Basin, including pipelines, compression assets, and a treatment facility. The company specialises in the handling and processing of acid gas – natural gas streams with elevated levels of hydrogen sulfide and carbon dioxide – which require treatment before commercial use.
The potential divestiture follows a wave of similar transactions in the space. In February, NGP Energy Capital Management exited Outrigger Energy II in a $640m sale to Kinder Morgan, while Morgan Stanley Energy Partners is currently running a process for Brazos Midstream II, which could command a valuation near $2bn.
