Enterprise Products Partners buys Warburg Pincus-backed Navitas

Enterprise Products Partners has acquired Navitas Midstream Partners for $3.25 billion in all cash.

Enterprise Products Partners has acquired Navitas Midstream Partners for $3.25 billion in all cash. The deal is expected to close in the first quarter of this year. Based in The Woodlands, Texas, Navitas Midstream Partners provides natural gas gathering, treating and processing services in the core of the Midland Basin. Navitas was a portfolio company of Warburg Pincus.

PRESS RELEASE

THE WOODLANDS, Texas, Jan. 10, 2022 /PRNewswire/ — Navitas Midstream Partners Holdings, LLC (“Navitas”), a producer-focused midstream company, today announced the sale of 100% of its interests in Navitas Midstream Partners, LLC to an affiliate of Enterprise Products Partners L.P. (NYSE: EPD) for $3.25 billion in an all-cash deal. Navitas is a portfolio company of funds managed by Warburg Pincus LLC, a leading global growth investor.

Founders R. Bruce Northcutt, Bryan Neskora and Jim Wade previously built Copano Energy, L.L.C. into a substantial enterprise at scale before its sale to Kinder Morgan.

“We are excited to contribute our unique Midland Basin system to Enterprise, one of the premier midstream operators. We have succeeded in our goal of creating a unique company that provides critical infrastructure to meet the needs of our Midland Basin producers. We would like to thank our customers for trusting Navitas to develop a system that would meet the needs of their rapid volume growth, and we know they will be in good hands with a company the scale of Enterprise,” said R. Bruce Northcutt, CEO of Navitas.

“I am proud of the dedication and hard work of our employees over the past seven years. I would also like to thank Warburg Pincus for their close partnership and support through some of the toughest times seen in the energy industry in the last century,” R. Bruce Northcutt added.

“We are incredibly proud to have supported Navitas through a transformative period of growth. Over the course of our partnership, Navitas added approximately 750 miles of new pipeline and over 1 Bcf/d of new processing capacity in the core of the Midland Basin during a difficult time for the industry,” said Peter Kagan, Managing Director, Warburg Pincus.

“This transaction is one of the largest acquisitions of a private gas gathering and processing business and is a fantastic outcome for all parties involved. We thank Bruce, Bryan, Jim and the entire Navitas team,” added John Rowan, Managing Director, Warburg Pincus.

Jefferies LLC served as financial advisor to Navitas in connection with the transaction, and Kirkland & Ellis served as legal advisor.

This transaction is expected to be completed in the first quarter of 2022, subject to customary regulatory approvals.

About Navitas Midstream Partners, LLC
Based in The Woodlands, Texas, Navitas Midstream Partners, LLC provides natural gas gathering, treating and processing services in the core of the Midland Basin. Navitas Midstream’s assets include approximately 1,750 miles of pipelines and over 1 billion cubic feet per day of cryogenic natural gas processing capacity with the completion of the Leiker plant, which is expected in the first quarter of 2022. For more information, visit www.navitas-midstream.com.