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Bloomberg
Blue Racer Midstream, a private equity-backed natural gas pipeline owner, is considering an initial public offering that could be valued at $2.5 billion, according to people familiar with the matter. The Dallas-based company, which is a 50/50 joint venture between private equity firm First Reserve and Caiman Energy II, is working with advisers to evaluate an IPO, said the people, who asked to not be identified because the matter isn’t public. Caiman
Energy II has funding from pipeline company Williams Cos., Oaktree Capital Management LP and EnCap Flatrock Midstream.
A potential IPO would follow the listing of Diamondback Energy Inc.’s pipeline spinoff, Rattler Midstream, which raised $665 million last month in the biggest energy IPO of the year. The stock rose 10% in its first day of trading.
Rattler’s success was a stark contrast to the rest of the pipeline sector, which has struggled to raise cash in the capital markets since the crude collapse that began in 2014 and a change in US tax policy that affected oil and gas companies structured as master limited partnerships.