- Companies
- Pinnacle Midstream
Pinnacle Midstream Acquisition, Valuation, Funding & Investors
Pinnacle Midstream was acquired by Phillips 66 for $550M in May 2024.
Pinnacle Midstream EBITDA multiple at acquisition
7.0x
EV/EBITDA · May 2024
Cumulative funding Pinnacle Midstream raised
$20M
across 1 funding round
Key investors in Pinnacle Midstream
BP Partners
About Pinnacle Midstream
Pinnacle Midstream is a Fort Worth, Texas-headquartered operator that builds and manages natural gas gathering pipelines, compression stations, and processing plants in the Permian Basin. The company partners with producers like EQT and installs systems handling 500 million cubic feet per day connected to Enterprise Products pipelines. Services include dehydration units and BTU stabilization for rich gas streams. Founded in 2014, Pinnacle expands midstream assets across Texas and New Mexico.
Founded
2014
HQ
Website
Status
Acquired
Customer focus
B2B
Revenue model
Usage-based
Valuation
$550M (acquired May 2024)
Sectors
Pinnacle Midstream Acquisition
Pinnacle Midstream was acquired by Phillips 66 for $550M on 20 May 2024.
The acquisition price implies a 7.0x EBITDA multiple.
Before the acquisition Pinnacle Midstream had raised $20M across 1 funding round.
Pinnacle Midstream, operating as Pinnacle Midland Parent LLC, owns the Dos Picos natural gas gathering and processing system in the Midland Basin of the Permian, featuring a 220 MMcf/d processing plant, 80 miles of gathering pipeline, and 50,000 dedicated acres from high-quality producers. Phillips 66, a Houston-based diversified energy company with Midstream, Chemicals, Refining, and Marketing and Specialties businesses, agreed in May 2024 to acquire Pinnacle from private equity firm Energy Spectrum Capital for $550 million in cash. The deal expands Phillips 66's natural gas gathering and processing footprint in a key focus basin, providing a scalable bolt-on asset that integrates with its downstream infrastructure, including Sand Hills pipeline and Sweeny fractionators. The acquisition advances Phillips 66's wellhead-to-market strategy, strengthens service offerings to customers, and drives operational and commercial synergies amid Permian operator consolidation affecting drilling and production volumes. Pinnacle reached a final investment decision in July 2023 to add a second 220 MMcf/d processing train, set to start service in Q4 2024, enhancing scalability. Phillips 66 anticipates a 7x EBITDA multiple, potentially reducible to 5.5x through downstream synergies, while capturing more NGLs for its value chain and Gulf Coast operations. The transaction, announced May 20, 2024, is expected to close mid-2024, subject to customary conditions including Hart-Scott-Rodino antitrust review. It aligns with Phillips 66's disciplined capital allocation for shareholder value and occurs amid U.S. oil and gas industry mega-mergers raising competition concerns, positioning Phillips 66 competitively against NGL players like Enterprise and ONEOK.
| Acquirer | Date | Type | Price | EV/EBITDA |
|---|---|---|---|---|
| 20 May 2024 | Strategic M&A | $550M | 7.0x |
Pinnacle Midstream Funding History
Pinnacle Midstream has raised a total of $20M across 1 funding round.
Pinnacle Midstream funding rounds
| Date | Stage | Investors | Raised | Deal Summary |
|---|---|---|---|---|
| Jan 2015 | Undisclosed stage | BP Partners | $20M | Pinnacle Midstream, LLC is a Houston-based midstream company focused on acquiring and developing midstream assets and providing related services in key U.S. natural gas producing basins, including gas gathering, processing, crude oil gathering, and transloading services, with operations in areas like the Delaware Basin in West Texas. The company is led by founder and CEO J. Greg Sargent, who previously founded and sold TransTex Gas Services, the largest privately-held amine leasing business in the U.S., to Eureka Hunter Holdings in 2012. On January 8, 2015, BP Natural Gas Opportunity Partners, L.P. (BP Partners), a private equity fund sponsored by T. Boone Pickens, committed $20 million to Pinnacle Midstream in an unattributed VC-style round, with Sargent and team adding $5 million, for a total initial capital of $25 million. This investment aimed to capitalize on market dislocation to acquire quality midstream assets at attractive prices, leveraging the management team's extensive experience. Pinnacle grew over subsequent years, building a full-service midstream solution in Culberson and Reeves Counties serving top producers. By October 2017, its valuation reached $500M in an acquisition financing round, followed by a private equity round in 2019. In an undisclosed prior transaction, it was considered for sale at least at $300M. BP Energy Partners sold Pinnacle to I Squared Capital's ISQ Global Infrastructure Fund II in a deal announced around 2018, with a later acquisition by Phillips 66 on May 20, 2024. RBC Capital Markets advised on the I Squared sale. |
Who has invested in Pinnacle Midstream?
1 investor has backed Pinnacle Midstream across its funding rounds, including BP Partners.
Pinnacle Midstream Investors
| Investor | HQ | Rounds | Role | First check |
|---|---|---|---|---|
This data is available for Pro users. Sign up to see all 1 Pinnacle Midstream investors. Start Free Trial | ||||
Benchmark 350K+ Funding Rounds and Disclosed VC Valuation Multiples
Sign up to see data on 350K+ funding rounds and disclosed revenue and EBITDA valuation multiples, from seed, through growth stage, to pre-IPO.
Start Free TrialPinnacle Midstream Competitors
Pinnacle Midstream competitors include listed companies like Oil States International, WIP Terminal, Moreld and Summit Midstream, and private ones like OILBIZ Inc and SuperFlox.
| Company | HQ | Status | Revenue | EBITDA | Valuation | Revenue Multiple |
|---|---|---|---|---|---|---|
| Publicly listed | $669M | ($49M) | $507M | 0.8x | ||
| Publicly listed | - | - | $653M | - | ||
| Publicly listed | $1B | $220M | $456M | 0.7x | ||
| Publicly listed | $562M | $207M | $448M | 3.3x | ||
| Private | - | - | $90M | - | ||
| Private | - | - | $53M | - |
Pinnacle Midstream Public Comps
Pinnacle Midstream is no longer listed, but its public comps include Schoeller-Bleckmann, CW Enerji, Ramaco Resources, Gulf Keystone Petroleum, SandRidge Energy, Transrail Lighting, Core Laboratories, W&T Offshore, Deutsche Rohstoff and Oil States International.
| Last FY | EV/Revenue | EV/EBITDA | ||||||
|---|---|---|---|---|---|---|---|---|
| Revenue | EBITDA | Last FY | LTM | 2027E | Last FY | LTM | 2027E | |
| $524M | $82M | 1.3x | 1.3x | 8.3x | 9.0x | |||
| $336M | $74M | 2.2x | - | 10.0x | - | |||
| $537M | $14M | 1.4x | 1.3x | 54.6x | 24.7x | |||
| $165M | $93M | 3.1x | 3.1x | 5.5x | 5.4x | |||
| $156M | $104M | 2.7x | 2.2x | 4.0x | 3.4x | |||
| $707M | $82M | 0.8x | 0.8x | 7.3x | 6.7x | |||
| $527M | $71M | 1.3x | 1.3x | 9.4x | 11.0x | |||
| $501M | $54M | 1.6x | 1.4x | 14.8x | 4.8x | |||
This data is available for Pro users. Sign up to see all Pinnacle Midstream competitors and their valuation data. Start Free Trial | ||||||||
Common questions about Pinnacle Midstream
| When was Pinnacle Midstream founded? | Pinnacle Midstream was founded in 2014. |
| Where is Pinnacle Midstream headquartered? | Pinnacle Midstream is headquartered in Houston, TX, United States. |
| Is Pinnacle Midstream publicly listed? | No, Pinnacle Midstream was acquired by Phillips 66 in May 2024. |
| Who acquired Pinnacle Midstream? | Pinnacle Midstream was acquired by Phillips 66 in May 2024. |
| How much was Pinnacle Midstream acquired for? | Pinnacle Midstream was acquired for $550M in May 2024. |
| How much funding has Pinnacle Midstream raised? | Pinnacle Midstream has raised $20M across 1 funding round. |
| What was Pinnacle Midstream's last funding round? | Pinnacle Midstream's last funding round was a $20M undisclosed-stage round in January 2015. |
| Who are Pinnacle Midstream's investors? | Pinnacle Midstream's investors include BP Partners. |
| Which companies are comparable to Pinnacle Midstream? | Companies comparable to Pinnacle Midstream include Oil States International, WIP Terminal, Moreld, Summit Midstream, OILBIZ Inc and SuperFlox. |
See companies similar to Pinnacle Midstream
Start Your
Free Trial Today
Try Multiples for free for 3 days. Got questions or need a demo? Schedule a call with us below.




