Northwind Midstream Partners Announces Completion of $700 Million Senior Secured First Lien Term Loan
Strong investor interest from blue chip institutions
Financing to repay existing borrowings and to fund expansion of the Company’s industry leading off-spec gas gathering, compression, treating, and sequestration system in Lea County, New Mexico
Expansion will more than double treating capacity to 400 MMcf/d by 2026
HOUSTON–(BUSINESS WIRE)–Northwind Midstream Partners LLC (“Northwind” or the “Company”) today announced that it has completed the issuance of a new $700 million Senior Secured First Lien Term Loan (the “Term Loan”). The Company will use the net proceeds from the Term Loan to repay its existing financing commitments and to fund the continued build-out and expansion of its off-spec gas gathering, compression, treating, sequestration and processing system located in Lea County, New Mexico. The Term Loan was led by EOC Partners and included Sixth Street, Stonepeak Credit, Mercuria Energy America and Main Street Capital Corporation.
Northwind’s facilities solve a highly critical and ongoing issue in Lea County, where upstream development within the core of the Northern Delaware Basin has generally been restricted due to the lack of sour natural gas treating, acid-gas injection and sequestration well capacity. Industry estimates suggest that more than 7,500 remaining well locations, and at least six geologic production benches, could be developed across the region. Northwind’s facilities are poised to help unlock this resource potential. The Company’s assets include 150 million cubic feet per day (MMcf/d) high-circulation amine treating capacity, as well as two acid-gas injection and carbon sequestration wells, over 200 miles of large-diameter pipelines and 41,750 horsepower of compression across five compressor stations. The Company is currently upsizing the capacity of its Titan Treating Complex from 150 MMcf/d to 400 MMcf/d and expects to complete the expansion by 2026. Northwind is also constructing a 75 MMcf/d Pelham Treating Complex in Northern Lea County.
David Capobianco, CEO and Managing Partner of Five Point Energy, said, “The market’s enthusiasm for Northwind’s Term Loan reflects the significant opportunity presented by the Company’s platform in Lea County and validates our core business model of providing off-spec gas solutions to top producers across the Northern Delaware Basin.”
Northwind CEO Matt Spicer said, “We appreciate the hard work and dedication from both the Northwind team and the lending group to complete this transaction. Northwind is operating with tremendous momentum and we look forward to updating the market on key milestones in the near future.”
Northwind CFO Tyler Buckingham added, “This financing will help us meet the increasing needs of our upstream producer partners through the expansion of our facilities, positioning Northwind to capitalize on future growth in the Delaware Basin.”
Richard Punches, Managing Partner of EOC Partners, added, “Lea County has a robust inventory of highly economic drilling locations, but activity has been constrained due to the need to treat off-spec gas. We believe Northwind’s asset base and strong management team will be key to unlocking this value.”
About Northwind Midstream Partners
Established in 2022, Northwind’s strategy is to develop, own and operate off-spec gas infrastructure in the Permian Basin. Northwind operates a highly efficient, environmentally focused and exceedingly reliable midstream system, which unlocks overall customer value while mitigating customer environmental concerns. Northwind’s developed solution provides producers with (i) a superior economic alternative, (ii) significant operational enhancements, (iii) meaningful emissions reductions, and (iv) tangible ESG benefits. Learn more at www.nwmidstream.com
About Five Point Energy
Five Point Energy is a leading private equity firm focused on building world-class businesses within the environmental water management and sustainable infrastructure sectors. The firm was founded by industry veterans who have had successful careers investing in, building and running midstream companies. Five Point’s strategy is to buy and build assets, create companies, and grow them into sustainable enterprises with experienced management teams and industry-leading E&P partners. Based in Houston, Five Point targets equity investments up to $1 billion and has ~$8 billion of assets under management across multiple investment funds. Learn more at www.fivepointenergy.com.
Contacts
Daniel Yunger / Nathaniel Shahan
Kekst CNC
daniel.yunger@kekstcnc.com / nathaniel.shahan@kekstcnc.com
