HOUSTON—Northwind Midstream Partners LLC has closed a $700 million senior secured first lien term loan, securing funds to refinance existing debt and expand its off-spec gas infrastructure in Lea County, New Mexico.
The financing, led by EOC Partners with participation from Sixth Street, Stonepeak Credit, Mercuria Energy America, and Main Street Capital Corporation, underscores strong investor confidence in Northwind’s operations. The company’s expansion aims to more than double its gas treating capacity from 150 million cubic feet per day (MMcf/d) to 400 MMcf/d by 2026, addressing a critical infrastructure gap that has constrained upstream development in the Northern Delaware Basin.
“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,” said Richard Punches, Managing Partner of EOC Partners. “We believe Northwind’s asset base and strong management team will be key to unlocking this value.”
Northwind’s infrastructure includes a high-circulation amine treating complex, acid-gas injection and carbon sequestration wells, over 200 miles of pipelines, and 41,750 horsepower of compression. The expansion will include the upscaling of the Titan Treating Complex and the development of the new Pelham Treating Complex, a 75 MMcf/d facility in Northern Lea County.
“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,” said David Capobianco, CEO and Managing Partner of Five Point Energy, Northwind’s private equity backer.
Northwind CEO Matt Spicer expressed confidence in the company’s trajectory, stating, “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.”
With an estimated 7,500 well locations yet to be developed in the region, Northwind’s infrastructure is positioned to support increased drilling activity by providing reliable gas gathering, compression, treating, and sequestration services.
“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,” added Tyler Buckingham, Northwind’s CFO.
Founded in 2022, Northwind Midstream focuses on developing off-spec gas infrastructure in the Permian Basin, offering producers economic, operational, and environmental benefits. Five Point Energy, Northwind’s primary investor, specializes in sustainable infrastructure investments and manages approximately $8 billion in assets.
