I Squared Eyes Majority Stake in Natgas Pipeline Matterhorn, Sources Say

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I Squared Capital is in talks to acquire a majority stake in the Matterhorn Express natural gas pipeline, according to people familiar with the matter.

The infrastructure-focused investment firm has been speaking with potential investors that would help fund the potential purchase, the people said.

I Squared is buying its position from WhiteWater Midstream, they added. WhiteWater currently owns 67.5% of Matterhorn, although it was unclear from the people whether the investment firm was buying out WhiteWater’s entire position.

The other owners of Matterhorn are EnLink Midstream, Devon Energy and MPLX. It was unclear whether some or all of their stakes were included in the piece being acquired by I Squared.

The people cautioned no deal was guaranteed and spoke on condition of anonymity to discuss private information.

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I Squared and WhiteWater did not respond to requests for comment. ONEOK, which owns EnLink, Devon and MPLX also did not respond to comment requests.

Bloomberg News earlier on Friday reported that I Squared was in talks to buy a majority stake that would value the Matterhorn Express Pipeline at more than $5 billion including debt, citing people familiar with the matter.

The Matterhorn pipeline carries natural gas from the Permian basin to the outskirts of Houston. The 580-mile pipeline was designed to carry up to 2.5 billion cubic feet per day of gas, according to its website.

(Reporting by David French in New York; Editing by David Gregorio)