EnCap Flatrock Midstream is exploring a sale of its gas pipeline subsidiary, Momentum Midstream, in a transaction that could exceed $5 billion, sources said. The process is at an early stage, with financial advisors likely to be engaged to gauge buyer interest from infrastructure funds and energy majors.

This potential divestiture places a premium valuation on Momentum Midstream's network, which serves key U.S. shale basins. For EnCap Flatrock Midstream, the owner, a sale would represent a major exit from a core midstream asset, reflecting strong investor demand for stable, fee-based energy infrastructure assets.

A deal at this scale would signal robust M&A activity in the pipeline sector, where long-term contracts provide predictable cash flows. The final price will depend on competitive tension among strategic and financial buyers seeking to bolster their midstream footprints in a high-demand market for energy transportation.