Five Point Infrastructure, the private equity owner of Northwind Midstream pipeline, is exploring a sale of the Permian Basin gas infrastructure operator in a deal that could value the company upwards of $2 billion, including debt, according to people familiar with the matter.

Five Point is currently collaborating with investment bankers at Piper Sandler on the potential divestiture. However, the process is still in its nascent stages, with initial overtures already made to prospective buyers. 

Industry observers anticipate interest from both midstream companies and other private equity and infrastructure funds, with anonymous sources cautioning that there is no certainty a deal will materialize, adding that any eventual agreement could be finalized at a different valuation. 

Northwind Midstream was established by Five Point in 2022. Since its inception, the company has developed a network of pipelines, compressor stations, and a treatment facility in the northern Delaware Basin, primarily in New Mexico.

The potential sale of Northwind highlights a trend among private equity firms seeking to divest energy infrastructure assets built to support the burgeoning U.S. shale production. 

Increased deal-making activity in the sector is being driven by publicly traded pipeline operators looking to expand their capabilities after years focused on debt reduction and stock price improvement. 

Competition for these assets is further fueled by strong interest from investment firms, which have raised billions to acquire energy infrastructure, drawn by the stable returns offered through oil and gas transportation fees.