Momentum Midstream Explores Sale That Could Fetch $5B

EnCap Flatrock Midstream is considering a sale of gas pipeline company Momentum Midstream for over $5 billion, according to people familiar with the matter.

The private equity firm is working with financial advisers to seek a buyer for Momentum, which could attract interest from competitors, as well as private equity firms, the people said.

Deliberations are in the early stages and EnCap Flatrock Midstream could still decide to hold onto the asset, the people added, asking not to be identified because the information is private.

Representatives for EnCap Flatrock Midstream, which is backed by Flatrock Energy Advisors and EnCap Investments, and Momentum declined to comment.

If a deal is struck, it would be among the largest in the midstream sector since Brookfield Infrastructure Partners LP agreed to acquire Colonial Enterprises Inc. for $9 billion last year.

Momentum’s management team has established a track record of setting up and selling several companies. It has built up Momentum with a pair of acquisitions in East Texas and Louisiana in a gas-rich region known as the Haynesville Shale.

The company operates 4,000 miles (6,440 kilometers) of pipeline. It serves 10 LNG facilities and 26 power plants, according to its website.