Carlyle-Backed Crescent Midstream Explores Sale

(Bloomberg) -- Carlyle Group Inc.-backed oil pipeline company Crescent Midstream is exploring a potential sale after receiving takeover interest, people with knowledge of the matter said.

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The company is working with an adviser on options, according to the people. Crescent Midstream could be valued at about $1.3 billion, including debt, in any transaction, one of the people said.

Deliberations are ongoing and there’s no certainty they’ll result in a sale, the people said, asking not to be identified discussing confidential information. A representative for Carlyle declined to comment. A spokesperson for Crescent Midstream didn’t immediately respond to request for comment.

Crescent Midstream owns more than 1,200 miles of pipelines around Louisiana and the Gulf of Mexico that are used to transport almost 200 million barrels of crude oil each year, its website shows. Carlyle invested in Crescent’s former parent, Crimson Midstream Holdings, in 2019.

Any sale would add to a string of transactions involving midstream companies in North America. These include EQT Corp.’s purchase of its former unit Equitrans Midstream Corp., ONEOK Inc.’s acquisition of Magellan Midstream Partners LP and Energy Transfer LP’s takeover of Crestwood Equity Partners LP.

--With assistance from Elizabeth Elkin.

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