NGP Energy Capital Management LLC, an energy-focused buyout firm, is weighing a sale of pipeline operator Teak Midstream LLC, said people with knowledge of the matter.
NGP is working with Evercore Partners Inc. to seek suitors for Teak, said the people, who asked not to be named because the process is private. Dallas-based Teak could fetch $800 million in a sale, according to the people.
Bidders submitted preliminary offers a week ago and second-round offers may be due in April, said one of the people. Representatives at Evercore and NGP declined to comment. Teak Co-Chief Executive Officer A. Chris Aulds didn’t respond to a message requesting comment.
NGP provided Teak with $100 million in 2009 to buy and develop pipelines in the U.S. A successful bidder would gain control of the more than 200 miles (322 kilometers) of natural gas pipelines built by Teak in Texas last year. Teak also acquired more than 325 miles of pipeline in 2010 with the purchase of Texana Pipeline Co.
NGP, through investment arm Natural Gas Partners, manages more than $10 billion in private-equity funds that invest in oil and gas concerns, according to its website. Carlyle Group, the world’s second-biggest buyout firm, bought a 47.5 percent revenue interest in NGP in December for $424 million, giving the firm more room to expand.
Other NGP investments include Blue Stone Natural Resources Holdings LLC, an exploration company, and Crimson Pipeline LP, which operates pipelines in California and the Gulf Coast, the website shows.