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VERIFYING MIDSTREAM VALUE:

Infrastructure Data That Clarified a  $425M Gas Asset Deal

Industry: Private Equity & Infrastructure Investment

Objective: Validating utilization, connectivity, and regional growth assumptions during midstream asset due diligence

Who It’s For: Deal teams, infrastructure investment officers, and M&A analysts at energy-focused private equity firms

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The Challenge

A mid-market private equity firm was assessing the acquisition of a regional gas midstream company operating in Oklahoma and the Texas Panhandle.  

The seller’s asking price assumed a steady utilization of its transmission system and potential upside from connecting to new power demand centers. The buyer’s concern was simple: did the network truly sit in a growth corridor, or was it an over-aged asset base surrounded by competition and stranded lines?  

The due diligence team — led by a VP of Infrastructure Investments and supported by three analysts and an external GIS consultant — needed to validate:

Which pipelines were operational versus abandoned,
Where the system tied into existing infrastructure,
Whether nearby processing plants had spare throughput
If power demand or data center build-outs could justify future expansion, and
Visualize how historical contracting has changed over the pipeline’s life.

Public filings and operator maps were incomplete. Many segments had uncertain status, and ownership of some lateral lines had changed hands multiple times. Manually reconciling these sources would have taken 3–4 weeks.

The Solution

Using Rextag Energy DataLink, the team overlaid multiple datasets to reconstruct the full picture in hours. They mapped the pipeline and gas infrastructure network against Rextag’s verified pipeline, processing plant, and power infrastructure layers, identifying where the target’s system overlapped with underutilized corridors.  

They also identified three competing systems within a 20-mile radius, two of which had direct ties to higher-capacity transmission lines — explaining recent shipper losses not disclosed in management presentations.  

The overlay of Rextag’s upstream well activity showed drilling intensity in the area had plateaued, suggesting limited future volume growth. Conversely, a planned 200-MW data center site identified in Rextag’s power dataset was within 15 miles of one compressor station, offering a potential off-take opportunity if the acquirer pursued co-development.

Business Impact

By consolidating infrastructure, ownership, and development data, the investment team validated that the seller’s growth assumptions were overstated.  They refined their valuation model, reducing projected throughput by 18%, and ultimately negotiated a 12% price adjustment.