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.”

HOUSTON–(BUSINESS WIRE)–Northwind Midstream Partners LLC (“Northwind” or the “Company”) today announced that it has constructed and put into service 150 million cubic feet per day (MMcf/d) of high-circulation amine treating capacity, two acid-gas disposal and carbon sequestration wells, over 200 miles of large-diameter pipelines and 41,750 horsepower of compression across five compressor stations. Northwind’s system construction is underpinned by long-term commitments and greater than 165,000 dedicated acres from several of the basin’s leading public and private independent oil and gas producers.

Expansion of Titan Treating Complex

Northwind is building one of the industry’s leading off-spec, NACE standard, natural gas infrastructure systems in Lea County, New Mexico, designed to manage produced natural gas with high levels of carbon dioxide and hydrogen sulfide. Northwind’s Phase 1 buildout, to be completed by mid-year 2025, is anchored by its Titan Treating Complex, where the Company recently added 100 MMcf/d of high-circulation amine treating capacity and an additional deep acid-gas injection and carbon sequestration well. The Titan Complex now operates total amine treating capacity of 150 MMcf/d and two acid gas injection wells. The completion of Phase 1 will increase total treating capacity to 200 MMcf/d and Northwind has also reached FID and customer support to further expand total treating capacity to 400 MMcf/d by 2026.

Completion of Initial Natural Gas Gathering and Compression Network

In addition to commissioning a significant expansion of its Titan Complex, Northwind also recently expanded its low and high-pressure natural gas gathering and compression network throughout Lea County. Northwind’s natural gas pipeline system consists of over 200 miles of large-diameter, NACE standard natural gas pipelines designed specifically to manage produced natural gas with high levels of hydrogen sulfide and carbon dioxide. Northwind also placed into service four additional NACE standard compressor stations with the ability to handle approximately 200 MMcf/d, expandable to up to 400 MMcf/d of aggregate capacity.

Market Opportunity

David Capobianco, CEO of Five Point Energy, said: “We believe that Lea County, New Mexico is one of the premier oil producing regions in North America, and that reliable energy infrastructure is the key to unlocking its development potential. Sustainably managing off-spec hydrocarbon production through treating and sequestration has and will continue to be paramount for the industry.” Mr. Capobianco continued, “In short order, Northwind’s system has enabled its customers to unlock new development horizons and extend the boundary for known horizons, with demand for its offerings rapidly accelerating.”

Management Perspective

“Increased off-spec gas gathering, treating, and sequestration capacity is vital to the oil and gas industry’s continued success in Lea County,” said Northwind CEO Matt Spicer. “The expanded Titan facility and associated pipelines and compression commissioned by Northwind provide our upstream producer partners a safe and economical solution for off-spec gas. Our facilities and infrastructure enable producers to effectively develop the prolific benches in the Northern Delaware Basin while also meaningfully reducing emissions.”

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.