Brazos Midstream CEO Brad Iles, speaking at Hart Energy's SUPER DUG 2025, said the time wasn't right to sell a majority stake to Morgan Stanley Infrastructure Partners. (Source: Hart Energy)
FORT WORTH, Texas—The CEO of Brazos Midstream, the largest independent infrastructure company in the Permian Basin, quashed recent rumors that his company would sell.
“Ultimately, we decided this is not the right time,” said Brad Iles, Brazos Midstream CEO. Iles took part in a panel discussing Permian midstream challenges at Hart Energy’s SUPER DUG Conference & Expo on May 15.
On April 24, Reuters reported Morgan Stanley Infrastructure Partners was considering a sale of its majority stake in Brazos Midstream II. The report, attributed to unnamed sources, expected the deal to be worth more than $2 billion, including debt.
Brazos Midstream comes up in most discussions involving Permian midstream and M&A. After Energy Transfer acquired WTG Midstream in May 2024 for $3.25 billion, Brazos became the largest privately held midstream company remaining in the region.
The company owns a network of more than 1,200 miles of natural gas, NGLs and crude gathering and transport lines in the Delaware and Midland basins. Last year, Brazos completed Sundance I, a 200 MMcf/d natural gas processing facility in August 2024, and is currently working on another 300 MMcf/d processing site.
Iles said that the Brazos staff had looked at a potential sale but decided that conditions were not right.
“We did give it serious consideration. As we rolled into the new year, there was tremendous optimism in the industry, and just in the markets in general,” he said. “Certainly, who can foresee the impact and the volatility of tariffs, crude dropping from $70 to $55?”
Brazos will consider making moves in the future with certain assets. The company’s footprint in the Delaware is highly profitable and has good potential for a public company, he said. However, Brazos is willing to wait for the right deal.
“One of the core tenets for us as we’ve built our business over the last 10 years has been we want to build businesses that we can own forever,” Iles said. “This Delaware Basin business is one that we could. It’s really a tremendous business.
“We’re not in a big rush, so we’ll see in the future.”
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