(Bloomberg) -- Reliance Gathering LLC, which transports crude oil in the Permian Basin, is exploring a sale, according to people familiar with the matter.
Reliance is working with an adviser to run an auction that could value it at about $500 million, said one of the people, who asked not be identified because the matter is private. The company, based in Midland, Texas, may attract interest from private equity and infrastructure investors, the people said.
Reliance might still decide not to pursue a sale, the people said, The company, founded by Gary McKinney, received an investment in 2016 from Metalmark Capital.
“We are proud to have grown our gathering system to over 125 miles of pipeline with another 35 miles in process or planned and up to 200,000 barrels per day of capacity, covering more than 110,000 dedicated acres,” McKinney said in a statement at the time.
A representative for Reliance declined to comment. A representative for Metalmark didn’t immediately respond to requests for comment.
Metalmark, started in 2004 by former Morgan Stanley Capital Partners professionals, has also owned stakes in PTW Energy Services Ltd. and Jones Energy Inc., according to its website.
--With assistance from Rachel Adams-Heard.
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