Aug. 1 (Bloomberg) -- TexStar Midstream Services LP, the natural-gas processor owned by EIG Global Energy Partners LLC and Tailwater Capital, is exploring a sale, said people with knowledge of the matter.
Evercore Partners Inc. is working with the San Antonio-based company on finding suitors, said the people, who asked not to be named because the process is private. Evercore has begun sending marketing materials to potential buyers, and first-round bids are due by the end of August, the people said.
TexStar, which gathers and processes natural gas in the Eagle Ford Shale of South Texas, may attract interest from energy companies looking to expand in that region, said the people. While the company’s market value isn’t clear, it’s bigger than Teak Midstream LLC, another pipeline company with Eagle Ford operations, according to one of the people.
Teak sold for $1 billion in May to Atlas Pipeline Partners LP. As part of the acquisition, Atlas gained an interest in Teak’s joint venture with TexStar, whose assets include 235 miles (378 kilometers) of pipeline, according to a statement at the time the deal was announced.
Representatives at Evercore and EIG declined to comment. Officials at Dallas-based Tailwater and TexStar didn’t reply to requests for comment.
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