EnCap Flatrock Midstream is contemplating a sale of fuel pipeline firm Momentum Midstream for over $5 billion, in response to folks conversant in the matter.
The personal fairness agency is working with monetary advisers to hunt a purchaser for Momentum, which may entice curiosity from opponents, in addition to personal fairness corporations, the folks mentioned.
Deliberations are within the early levels and EnCap Flatrock Midstream may nonetheless determine to carry onto the asset, the folks added, asking to not be recognized as a result of the knowledge is personal.
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Representatives for EnCap Flatrock Midstream, which is backed by Flatrock Power Advisors and EnCap Investments, and Momentum declined to remark.
If a deal is struck, it will be among the many largest within the midstream sector since Brookfield Infrastructure Companions LP agreed to purchase Colonial Enterprises Inc. for $9 billion final yr.
Momentum’s administration group has established a observe file of organising and promoting a number of firms. It has constructed up Momentum with a pair of acquisitions in East Texas and Louisiana in a gas-rich area often known as the Haynesville Shale.
The corporate operates 4,000 miles (6,440 kilometers) of pipeline. It serves 10 LNG amenities and 26 energy crops, in response to its web site.
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