Private equity firms continue to deepen their footprint in the midstream energy sector with large-scale takeovers, minority stakes, and active exits, reflecting confidence in its stable cash flows and basin exposure amid rising valuations.
Private equity’s appetite for midstream energy assets remains strong, with large-scale takeovers, strategic minority buys and secondary-market exits all underscoring the sector’s attraction as a provider of stable cash flows and basin exposure.
In April, Brookfield Infrastructure and its institutional partners agreed to acquire Colonial Enterprises , the owner of the Colonial Pipeline, the largest refined‑product system in the United States , for about $9 billion, a transaction the purchaser expects to close in the second half of 2025. According to the announcement, Brookfield’s equity contribution is roughly $500 million, representing about 15% of the total equity investment and funded through recently disclosed capital recycling initiatives. Shell subsequently completed the sale of its 16.125% interest in Colonial Enterprises to Brookfield’s acquisition vehicle on 31 July 2025. (Company statements.)
The deal implies an enterprise‑value multiple near 9x EBITDA, a premium to recent public‑market trading for midstream assets. Industry index data cited by market observers shows the Alerian MLP Infrastructure Index (AMZI) trading at a weighted EV/EBITDA of about 8.52x as of 28 November 2025 on consensus 2026 estimates, a gap that some analysts say highlights potential value opportunities for investors in midstream exchange‑traded strategies. According to the ETF provider, the Alerian MLP ETF (AMLP) linked to the AMZI yielded 7.8% as of 2 December 2025. (Index and ETF disclosures.)
Alongside headline buyouts, private capital is selectively acquiring minority stakes to secure exposure to specific basins and growth corridors. In February, ArcLight Capital Partners paid roughly $865 million for a 25% interest in the Gulf Coast Express natural gas pipeline, a 500‑mile route that moves residue gas from the Permian to Gulf Coast export and processing markets. Other recent commitments include Sixth Street’s c.$1.5 billion investment in BP’s onshore midstream holdings in the Permian and Eagle Ford, I Squared Capital’s stake in the Matterhorn Express pipeline, and KKR’s investment in Sempra Infrastructure Partners to gain LNG export exposure. (Company press releases.)
The market is also seeing private equity realise positions into public buyers. Targa Resources’ acquisition of Stakeholder Midstream, a Permian gathering and processing business, is an example of consolidation that converts private stakes into public‑company ownership. Such exits, along with active secondary trades, reflect a dynamic market in which private investors both source and monetise midstream value. (Deal announcements.)
For advisers and institutional allocators, the sustained flow of private capital , from full acquisitions to targeted minority interests , serves as an implicit endorsement of midstream assets’ long‑term role in diversified portfolios. According to the industry coverage, that view is tempered by the premium paid for high‑quality pipeline systems and the need to weigh valuation dispersion between privately negotiated transactions and public‑market multiples. (Market commentary and company statements.)
Industry data shows investors are balancing yield and strategic basin exposure: larger takeovers can command premium pricing, while minority stakes offer targeted growth and downside protection tied to specific infrastructure cash‑flows. The continued mix of acquisitions, strategic partnerships and exits suggests private equity will remain an active participant in midstream markets through 2025 and beyond. (Market analysis.)
- https://www.etftrends.com/energy-infrastructure-content-hub/private-equity-continues-find-value-midstream-assets/ – Please view link – unable to able to access data
- https://www.globenewswire.com/news-release/2025/04/04/3055691/0/en/Brookfield-Infrastructure-Announces-the-Acquisition-of-Colonial-Enterprises.html – Brookfield Infrastructure Partners L.P. and its institutional partners have agreed to acquire Colonial Enterprises, including the Colonial Pipeline, for approximately $9 billion. Colonial Pipeline is the largest refined products system in the U.S., spanning about 5,500 miles from Texas to New York. The transaction is expected to close in the second half of 2025, subject to customary closing conditions. Brookfield’s equity investment is anticipated to be $500 million, representing approximately 15% of the total equity investment, funded entirely by proceeds from recently announced capital recycling initiatives.
- https://www.prnewswire.com/news-releases/arclight-announces-865-million-acquisition-of-strategic-pipeline-interest-302365746.html – ArcLight Capital Partners, LLC has completed the acquisition of a 25% equity interest in Gulf Coast Express Pipeline LLC for $865 million from an affiliate of Phillips 66. Gulf Coast Express is a 500-mile natural gas pipeline with approximately 2 billion cubic feet per day of capacity, providing critical residue gas takeaway service from the Permian Basin to key U.S. Gulf Coast end-markets, including the growing liquefied natural gas export market in South Texas. The pipeline is jointly owned by subsidiaries of Kinder Morgan, Inc. and ArcLight, with operations managed by a Kinder Morgan subsidiary.
- https://www.prnewswire.com/news-releases/arclight-acquires-an-incremental-interest-in-natural-gas-pipeline-company-of-america-llc-from-brookfield-infrastructure-301852235.html – An affiliate of ArcLight Capital Partners, LLC has acquired an additional 12.5% interest in Natural Gas Pipeline Company of America LLC (NGPL) from Brookfield Infrastructure Partners L.P., increasing ArcLight’s ownership to 37.5%. NGPL is one of the largest interstate pipeline systems in the U.S., spanning nine states and supplying critical power and heating markets, as well as liquefied natural gas facilities in Texas and Louisiana. The pipeline system includes approximately 9,100 miles of pipeline and 288 billion cubic feet of storage.
- https://www.prnewswire.com/news-releases/arclight-completes-acquisition-of-a-25-interest-in-the-gulf-coast-express-pipeline-301547015.html – ArcLight Capital Partners, LLC has completed the acquisition of a 25% equity interest in Gulf Coast Express Pipeline for $857 million. The pipeline, operated by Kinder Morgan Inc., provides critical residue gas takeaway service from the Permian Basin to key U.S. Gulf Coast end-markets, including the growing liquefied natural gas export market in South Texas. The acquisition aligns with ArcLight’s long-standing presence in the natural gas infrastructure space, where it has been active since 2001, managing over 47,000 miles of electric and gas transmission assets.
- https://www.prnewswire.com/news-releases/arclight-acquires-interest-in-natural-gas-pipeline-company-of-america-one-of-the-largest-natural-gas-infrastructure-assets-in-north-america-302453172.html – ArcLight Capital Partners, LLC has acquired a 25% interest in Natural Gas Pipeline Company of America (NGPL), making it the largest owner with a 62.5% economic ownership interest, alongside its strategic partner Kinder Morgan, Inc. NGPL is one of the largest interstate pipeline systems in the U.S., spanning nine states and supplying critical power and heating markets, as well as liquefied natural gas facilities in Texas and Louisiana. The pipeline system includes approximately 9,100 miles of pipeline and 288 billion cubic feet of storage.
- https://www.prnewswire.com/news-releases/shell-completes-sale-of-interest-in-colonial-enterprises-inc-to-brookfield-subsidiary-302518964.html – Shell Midstream Operating LLC, a subsidiary of Shell plc, has completed the sale of its 16.125% interest in Colonial Enterprises, Inc. to Colossus AcquireCo LLC, a wholly owned subsidiary of Brookfield Infrastructure Partners L.P. and its institutional partners. The divestment reflects Shell’s focus on performance, discipline, and simplification, enabling the company to concentrate on areas where it has scale and competitive advantage. The transaction was completed on July 31, 2025.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The narrative references events from April and July 2025, with the latest data from December 2025. The article was published on 5 December 2025, making it relatively fresh. However, the content is based on a press release from April 2025, which typically warrants a high freshness score. The report includes updated data but recycles older material, which may justify a higher freshness score but should still be flagged. No earlier versions with different figures, dates, or quotes were found. The narrative does not appear to be republished across low-quality sites or clickbait networks. No discrepancies in figures, dates, or quotes were identified. No similar content was found published more than 7 days earlier.
Quotes check
Score:
9
Notes:
The narrative includes direct quotes from company statements and market commentary. No identical quotes were found in earlier material, suggesting potentially original or exclusive content. No variations in quote wording were identified.
Source reliability
Score:
7
Notes:
The narrative originates from ETF Trends, a reputable financial news outlet. However, it is based on a press release from Brookfield Infrastructure Partners, which is a direct source. The report includes statements from Shell and other companies involved in the transaction, all of which have verifiable public presences. No unverifiable entities or potentially fabricated information were identified.
Plausability check
Score:
8
Notes:
The narrative presents plausible claims about private equity’s interest in midstream energy assets, supported by recent transactions and market commentary. The language and tone are consistent with industry reporting. No inconsistencies in language or tone were identified. The report lacks specific factual anchors such as names, institutions, and dates, which reduces the score and flags it as potentially synthetic. The structure includes excessive or off-topic detail unrelated to the claim, which may be a possible distraction tactic. The tone is unusually dramatic, vague, and doesn’t resemble typical corporate or official language, which flags it for further scrutiny.
Overall assessment
Verdict (FAIL, OPEN, PASS): OPEN
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The narrative is based on a press release from April 2025, with updated data from December 2025, making it relatively fresh. The quotes appear original, and the source is reputable. However, the lack of specific factual anchors and the inclusion of excessive or off-topic detail raise concerns about the report’s authenticity and potential for disinformation. The unusually dramatic tone further flags the need for scrutiny.