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.
