Five Point Infrastructure Explores $2B Sale of Northwind Midstream

Key Takeaways

Sector: Energy Infrastructure & Renewables.
Geography: United States.

Analysis

Private equity firm Five Point Infrastructure is reportedly exploring the sale of its portfolio company, Northwind Midstream, in a deal that could value the Permian Basin-focused gas infrastructure operator at over $2 billion, including debt. The process is in its early stages, with investment bank Piper Sandler advising on the potential transaction.

Established by Five Point in 2022, Northwind Midstream has developed a network of pipelines, compressor stations, and a treatment facility in the northern Delaware Basin, primarily in New Mexico. The company specializes in the transportation and processing of acid gas—natural gas streams with high levels of hydrogen sulfide and carbon dioxide—which require treatment before commercial use.

The potential divestiture aligns with a broader trend of private equity firms monetizing midstream infrastructure assets amid sustained interest from both corporate consolidators and infrastructure funds seeking yield-backed, real asset exposure. Recent comparable transactions include NGP Energy Capital Management's $640 million sale of Outrigger Energy II to Kinder Morgan and Morgan Stanley Energy Partners' ongoing process for Brazos Midstream II, which could command a valuation near $2 billion.

While no deal is assured, and valuation outcomes may vary, the prospective sale underscores the attractiveness of energy infrastructure assets in the current market environment.