(Bloomberg) -- Yorktown Partners is considering a sale of crude oil and natural gas processing company Vaquero Midstream, according to people familiar with the matter.
The New York-based private equity firm is working with an adviser to run an auction process that could value Vaquero at $1 billion or more, said one of the people, who asked not to be identified because they weren't authorized to speak publicly. The company is attracting interest from private equity firms and infrastructure funds, the people said.
Yorktown hasn't made a final determination on pursuing a deal could still decide to keep Vaquero, they said.
A representative for Yorktown didn't respond to requests for comment. Vaquero, based in The Woodlands, Texas, declined to comment.
Yorktown first invested in Vaquero in 2014. Vaquero announced in January that it was increasing its credit facility to $225 million. The banks involved included Legacy Texas Bank, ABN Amro Capital, Bank of Texas, Cadence Bank, Amegy Bank, Comerica Bank, East West Bank and Raymond James, according to a statement.
Vaquero has two cryogenic processing plants in the Delaware Basin in West Texas that are tied into approximately 125 miles of high-pressure pipeline. The company plans to install three more units to increase capacity, according to its website.
--With assistance from Rachel Adams-Heard.
To contact the reporters on this story: Kiel Porter in Chicago at kporter17@bloomberg.net;Gillian Tan in New York at gtan129@bloomberg.net
To contact the editors responsible for this story: Elizabeth Fournier at efournier5@bloomberg.net, ;Alan Goldstein at agoldstein5@bloomberg.net, Michael Hytha
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