Durango Midstream, an energy pipeline operator backed by Morgan Stanley Energy Partners, is preparing to launch a sale process in the coming months, according to people with knowledge of the situation.
The midstream company is working with Greenhill & Co. to help market its assets, which could fetch about $1 billion, said the people, who asked to not be identified because the matter is private.
Representatives for Greenhill and Morgan Stanley declined to comment. Representatives for Durango didn’t respond to requests for comment.
Small to mid-size pipeline operators are ripe for a wave of consolidation in the coming year as the sector moves toward bigger and more diversified companies.
Houston-based Durango operates gas-gathering pipelines and processing plants in Kansas and New Mexico, according to its website. In 2017, the company received backing from Morgan Stanley Energy Partners, the energy private equity arm of Morgan Stanley Investment Management, to support its growth.
Durango is led by Richard Cargile, who previously served as president of midstream operations for Energy Transfer Partners LP.
