Pipeline operator Kinetik prepares sale process, FT reports

Feb 18 (Reuters) - Kinetik Holdings KNTK.N, a pipeline operator in the Delaware Basin, is considering a sale following an approach from Western Midstream Partners WES.N, the Financial Times reported on Wednesday, citing people familiar with the matter.

The development comes as energy-intensive data centers and rising liquefied natural gas (LNG) exports drive U.S. gas consumption higher, prompting producers to pull more fuel from the ground.

Texas-based Kinetik, which has a market value of $7.20 billion according to LSEG data, began preparing a sale process to gauge interest from strategic and infrastructure buyers after Occidental Petroleum OXY.N backed Western Midstream approached the company in recent weeks, the newspaper said.

Reuters could not immediately verify the report. The companies involved did not respond to requests for comment outside regular business hours.

Discussions are at an early stage, and no formal bid has been made, the report added.