Energy Transfer Equity LP is bidding for Magnum Hunter Resources Corp’s stake in natural gas gathering unit Eureka Hunter Holdings, people closet to the matter said.
Oil and natural gas producer Magnum Hunter, which has been struggling with weak natural gas prices, said in June that it expected to raise US$600 million-US$700 million by selling its 45.53 % stake in Eureka Hunter.
Magnum Hunter began working with the Bank of Montreal to auction its stake in Eureka Hunter after Energy Transfer made an unsolicited bid for the assets earlier this year, Bloomberg reported on Monday.
Magnum Hunter reached out to Crestwood Midstream Partners LP and Summit Midstream Partners LP to gauge their interest in the unit, Bloomberg reported, citing the people.
Morgan Stanley’s infrastructure investing arm, Morgan Stanley Infrastructure, owns a majority stake in Eureka Hunter.
Energy Transfer has also been pursuing bigger rival Williams Cos Inc.